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HomeMy WebLinkAbout11-22-2010PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting November 8, 2010 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:30 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, Commissioner Mueller, and Executive Director Ericson. NOT PRESENT: Commissioner Gunn. 3. APPROVAL OF AGENDA MOTION/SECOND: Mueller/Stigney. To Approve the November 8, 2010, Agenda as presented. Ayes – 4 Nays – 0 Motion carried. 4. PUBLIC INPUT None. 5. APPROVAL OF MINUTES A. October 25, 2010, EDA Minutes. MOTION/SECOND: Mueller/Hull. To Approve the October 25, 2010, Minutes as presented. Ayes – 4 Nays – 0 Motion carried. 6. CONSENT AGENDA None. 7. EDA BUSINESS A. Resolution 10-EDA-261, Approving Mounds View Home Improvement Loan Program Criteria Mounds View EDA November 8, 2010 Regular Meeting Page 2 Economic Development Specialist Steinmetz reviewed with the EDA the proposed changes to the Loan Program Criteria. She indicated the EDA has been discussing this item for several months and the most recent draft has a summary of changes highlighted in yellow. An asset limit was written in to Loan Option 4, which was recommended by the GMHC staff. Staff recommends approval of the draft home improvement loan program criteria. If approved staff would discuss administrative under writing fees with GMHC in further detail and would bring forward an agreement to the EDA. Commissioner Mueller asked if the demolition loan was for 10 years, or if it was due upon sale of the property. She recommended these statements within the criteria be conjoined so as not to appear there is an option. Vice President Stigney questioned if the EDA should have greater knowledge of the GMHC fees prior to advertising this loan program. Economic Development Specialist Steinmetz indicated she would not begin marketing the program if the EDA advised. Vice President Stigney asked how loans would be handled if defaulted on by a resident. Economic Development Specialist Steinmetz indicated the City could potentially be out the money. Vice President Stigney questioned what action the City could take and if the City had no options, he had a problem with the criteria in this program. Economic Development Specialist Steinmetz indicated the City would be second in line to be paid if a home were to be foreclosed. President Flaherty asked if the City had the right to put a lien on the property. Community Development Director Roberts stated the loan was a lien. He indicated if the property were to sell, the lien would be paid, but if foreclosed it potentially would be negated. Commissioner Hull questioned how this type of program worked in other cities. Economic Development Specialist Steinmetz stated all were written in the same manner and these loans were never paid back first, prior to a home mortgage. She explained the City would be at a slight risk with these loans. Vice President Stigney wondered if a City loan could be tacked on to property taxes if defaulted. Economic Development Specialist Steinmetz was uncertain if this was an option. Vice President Stigney requested that GMHC fees be waived if a loan within the City were defaulted. Economic Development Specialist Steinmetz indicated she would investigate this further with GMHC. Vice President Stigney stated the general home loan should be rewritten to ensure that this loan Mounds View EDA November 8, 2010 Regular Meeting Page 3 assisted blighted homes. He did not want the City competing with local banks. He suggested that interior repairs should not be the focus of this program, and wondered whether City dollars should be used for energy efficiency improvements. Commissioner Mueller stated the applicant’s income was limited within the general home loans, which should limit applications for interior home repairs. Vice President Stigney requested code enforcement loans have an interest rate. He noted again that the eligible repairs on windows should be energy efficient. President Flaherty read through a portion of the loan program stating interior repairs are only allowed if they are related to life safety issues of the residents and are required by the code enforcement officers. Economic Development Specialist Steinmetz indicated she could speak with Jeremiah further on this issue. He could attend a meeting to explain these lists with the EDA, the code enforcement official if desired. Vice President Stigney questioned how long it took to process the emergency loans. Economic Development Specialist Steinmetz noted a loan was completed this past winter, for a Mounds View resident and it was administered very quickly. President Flaherty was satisfied with the criteria. He requested additional information from GMHC and the services they would provide. He suggested holding off on the marketing of the program hold off until January as he did not want the City to get the cart before the horse. Once the City had better knowledge of the fees and services provided by GMHC, the program could be advertised. Commissioner Mueller requested the loan term on Page 3 be reduced from 15 years to 10 years. She questioned if it was necessary for a homeowner to apply for two different types of loans at the same time. Economic Development Specialist Steinmetz indicated this language could be removed from the criteria. Commissioner Mueller asked that it be omitted. Commissioner Mueller suggested each loan state that a property owner only be eligible for one loan noting she would like to see as many residents benefit from this program as possible. Executive Director Ericson felt this was a reasonable request, especially given this was a one year pilot program and adjustments could be made if necessary. President Flaherty indicated this program was designed to meet the needs of the community as residents have approached GMHC for funds. The criteria were specific based on the Mounds View residents to assist with those that could benefit from a home improvement loan. Vice President Stigney requested each loan be voted on separately as he opposed several. Economic Development Specialist Steinmetz explained that the resolution before the EDA this Mounds View EDA November 8, 2010 Regular Meeting Page 4 evening had all four loans included. Vice President Stigney requested that four resolutions be brought back to the EDA for approval with revisions made as suggested this evening. Commissioner Mueller agreed with this recommendation. Executive Director Ericson felt this was excessive but could be completed by Staff. President Flaherty indicated he had no problem with four resolutions coming back before the EDA as this would allow several of the loans to proceed while the other details could then be reviewed further. Economic Development Specialist Steinmetz explained she would bring these resolutions back to the EDA in November. Economic Development Specialist Steinmetz indicated the EDA could do away with the loan program criteria and keep the existing programs in place. President Flaherty felt the EDA was in favor of a home improvement loan program, but several issues still needed to be discussed further before proceeding. President Flaherty requested Staff revise the loan criteria based on the comments provided this evening and allow the EDA to make a decision at the next meeting. 8. REPORTS None. 9. NEXT EDA MEETING: Monday, November 29, 2010, at 6:30 p.m. 10. ADJOURNMENT President Flaherty adjourned the meeting at 7:15 p.m. Respectfully submitted, Recorded and transcribed by: Carla Wirth TimeSaver Off Site Secretarial, Inc.