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HomeMy WebLinkAbout10-08-2012 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, October 8, 2012 6:00 PM 1. CALL TO ORDER 2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, Commissioner Mueller, Commissioner Gunn 3. APPROVAL OF AGENDA 4. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 5. APPROVAL OF MINUTES A. August 13, 2012 EDA Minutes B. August 27, 2012 EDA Minutes 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 12-EDA-273 Amending General Home Repair Loan Criteria B. Review EDC Recommendation Pertaining to the Creation of a County Road 10 Taskforce for the Purpose of Creating a Corridor Vision C. Resolution 12-EDA-274 Adopting a Modification to the Project Plan for the Mounds View Economic Development Project and Adopting Modifications to the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1, 2, and 3. 8. REPORTS 9. NEXT EDA MEETING: Monday, October 22, 2012 10. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting August 13, 2012 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, Commissioner Gunn, and Executive Director Ericson. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Mueller. To Approve the August 13, 2012, Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. PUBLIC INPUT None. 5. APPROVAL OF MINUTES A. May 29, 2012, EDA Minutes. MOTION/SECOND: Mueller/Stigney. To Approve the May 29, 2012, Minutes as presented. Ayes – 5 Nays – 0 Motion carried. 6. CONSENT AGENDA None. 7. EDA BUSINESS A. Resolution 12-EDA-271 Requesting the City Council of the City of Mounds View Call for a Public Hearing on a Modification to the Project Plan for the Mounds View Economic Development Project and the Modification to the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1, 2 and 3 (All Redevelopment Districts). Mounds View EDA August 13, 2012 Regular Meeting Page 2 Executive Director Ericson stated the EDA was being requested by the City Council to call for a public hearing to address a modification to the Project Plan for the Mounds View Economic Development Project and the modifications to the Tax Increment Financing Plans for TIF Districts 1, 2 and 3. The previous documents were adopted in 2004 and revisions were necessary at this time. Staff recommended approval of the Resolution. President Flaherty discussed the list of blighted properties stating this list was compiled to assist the EDA in focusing on potential opportunities for redevelopment in the City. Executive Director Ericson indicated that both residential and commercial properties were on this list. Commissioner Mueller was pleased that the TIF District retirements and modifications would be cleaned up in the new documentation. Motion/Second: Mueller/Hull. To Waive The Reading And Adopt Resolution 12-EDA- 271, Requesting the City Council of the City of Mounds View Call for A Public Hearing on a Modification to the Project Plan for the Mounds View Economic Development Project and the Modification to the Tax Increment Financing Plans for Tax Increment Financing Districts Nos. 1, 2, and 3 (All Redevelopment Districts). Commissioner Mueller noted the public hearing for this item would be held on October 8, 2012. Ayes – 5 Nays – 0 Motion carried. 8. REPORTS None. 9. NEXT EDA MEETING: Monday, August 27, 2012, at 6:30 p.m. 10. ADJOURNMENT President Flaherty adjourned the meeting at 6:40 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc. PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 August 27, 2012 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:30 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, 14 Commissioner Mueller, Commissioner Gunn, and Executive Director Ericson. 15 16 NOT PRESENT: None. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Gunn/Hull. To Approve the August 27, 2012, Agenda as presented. 21 22 Ayes – 5 Nays – 0 Motion carried. 23 24 4. PUBLIC INPUT 25 26 None. 27 28 5. APPROVAL OF MINUTES 29 30 None. 31 32 6. CONSENT AGENDA 33 34 None. 35 36 7. EDA BUSINESS 37 38 A. Resolution 12-EDA-272 Approving a Limited Use Agreement with Coventry 39 Senior Living of Mounds View to use EDA-owned land for Construction 40 staging. 41 42 Planning Associate Heller stated the Coventry Senior Living development on County Road 10 43 just south of H2 was beginning. She explained the City owned a lot that was adjacent to this site 44 and Coventry Senior Living has requested to use this lot for material and equipment storage. 45 Mounds View EDA August 27, 2012 Regular Meeting Page 2 Staff had no objections to the limited use agreement with Coventry Senior Living. The 46 agreement would hold Coventry responsible for the site and assure that they return the site to its 47 current state. A small fee would also be charged for use of the site. 48 49 Associate Planner Heller indicated the agreement would begin on September 1, 2012 through 50 December 31, 2013. She indicated the agreement could be lengthened or shortened if need be. 51 Staff recommended the EDA approve the limited use agreement. 52 53 President Flaherty stated the EDA would be paid $100 per month for use of the site by Coventry. 54 He reviewed that Coventry would indemnify and hold the EDA harmless for the use of this site. 55 56 Commissioner Mueller questioned what items would be stored on the EDA lot and if the area 57 would be fenced. Greg Johnson, Coventry Senior Living, explained the site would be fenced. 58 He stated only a portion of the EDA site would be used for storage of semi trailers, lumber and 59 other building materials. Mr. Johnson commented the entire building site would also be fenced 60 to protect the site. He explained that the site would also be patrolled in the evening hours after 61 walls were completed. 62 63 Commissioner Mueller asked if the developer would be placing any signs describing the new 64 project. Mr. Johnson indicated it was his intent to place a “Coming Soon” sign on the lot to 65 inform the public of the new development along with contact information for Coventry Senior 66 Living. 67 68 President Flaherty was pleased that the site would be fenced and secure to assure that the project 69 site was not vandalized. 70 71 Commissioner Mueller noted all construction traffic would be directed in off of Greenfield as the 72 other roadways would need to remain open for local traffic. Mr. Johnson understood these needs 73 and stated he would be working with City staff on this issue to find a location for employee 74 parking. 75 76 MOTION/SECOND: Mueller/Stigney. To Waive the Reading and Adopt Resolution 12-EDA-77 272 Approving a Limited Use Agreement with Coventry Senior Living of Mounds View to use 78 EDA-owned land for Construction staging. 79 80 Ayes – 5 Nays – 0 Motion carried. 81 82 8. REPORTS 83 84 None. 85 86 9. NEXT EDA MEETING: Monday, September 10, 2012, at 6:30 p.m. 87 Mounds View EDA August 27, 2012 Regular Meeting Page 3 88 10. ADJOURNMENT 89 90 President Flaherty adjourned the meeting at 6:44 p.m. 91 92 Respectfully submitted, 93 94 95 Recorded and transcribed by: 96 Heidi Guenther 97 TimeSaver Off Site Secretarial, Inc. 98 Item No: 7A Meeting Date: October 8, 2012 Type of Business: EDA Administrator Review: ____ City of Mounds View Staff Report To: Economic Development Authority From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Resolution 12-EDA-273, Amending General Home Repair Loan Criteria Background On November 22, 2010, the EDA approved the Mounds View Home Improvement Loan Program as a one-year pilot program, which consists of the following four loan types available to Mounds View residents: Loan Name Loan Amount Interest Rate Payment Type Home Demolition Up to $10,000 3% Fixed Code Enforcement Up to $7,000 0% Fixed General Home Repair Up to $10,000 3% Fixed Emergency Deferred Up to $7,000 0% Deferred On December 12, 2011, the EDA authorized a one-year extension of loan program through 2012 and increased the program’s loan-to-value ratio to 110%. In June 2012, the EDA expanded the “General Home Repair” loan criteria to include unimproved driveways as an eligible project. Discussion At the October 1, 2012, Work Session, the City Council discussed the following additional amendments to the “General Home Repair” loan:  Change the name of the “General Home Repair” loan to “General Home Improvement” loan to clarify the intent of the loan, which is to enhance and improve a property’s livability and value  Add bathroom and kitchen remodels to the list of eligible improvements  Add the following clarifying language to the paragraphs that address eligible repairs and improvements: The General Home Repair Program makes funds available to improve the exterior and/or interior of the property. Eligible work may correct health and safety items, increase handicap accessibility, reduce long-term maintenance and energy costs or improve the livability of the home Eligible improvements include but are not limited to the following examples: 10-8-2012 EDA Meeting Item 7A – Res. 12-EDA-273 Page 2 of 2 The revised version of the “General Home Improvement” loan criteria is attached for the EDA’s reference. Recommendation Staff recommends approval of Resolution 12-EDA-273, Amending the General Home Repair Loan Criteria. Respectfully submitted, Heidi Steinmetz, Economic Development Specialist Attachments 1) Revised “General Home Improvement” Loan Criteria 2) Resolution 12-EDA-273 Economic Development Authority (EDA) General Home Repair Improvement Loan Criteria EDA Approved November 22, 2010 Amended December 12, 2011 Amended June 11, 2012 Reviewed October 1, 2012 The purpose of this loan is to provide loans for general home improvements and repairs to owner-occupied single-family or duplex homes in Mounds View. Loan Amount From $1,000 to $10,000 Loan Security All loans will be secured by a mortgage in favor of the City. The loan may be secured in a subordinate lien position behind the borrower’s existing prime/A-rated fixed rate mortgage. Interest Rate The interest rate is fixed at 3%. The monthly payment is fixed. Loan Term The maximum loan term is 10 years, however, the loan shall become due upon sale, transfer of title or refinancing of the property, whichever occurs first. Income Limit The applicant’s total gross annual household income shall not exceed 80% of the current year area median household income as defined by HUD per household size, as follows (FY 2012): Household Size Income Limit 1 $45,500 2 $52,000 3 $58,500 4 $65,000 5 $70,200 6 $75,400 7 $80,600 8 $85,800 Loan to Value The borrower’s combined mortgage debt including the Mounds View loan cannot exceed 110% of the property value based on the taxable market value as determined by Ramsey County for the current year. Applicants may also submit a third party appraisal that has been completed within the last 6 months. Such an appraisal is to be obtained by the applicant at their expense. Debt to Income 50% Eligible Properties Mounds View owner-occupied single-family & duplex properties General Home Improvement Loan Page 2 of 4 Eligible Repairs & Improvements The General Home Repair Program makes funds available to improve the exterior and/or interior of the property. Eligible work may correct health and safety items, increase handicap accessibility, reduce long-term maintenance and energy costs or improve the livability of the home Eligible improvements include but are not limited to the following examples: Exterior repairs Work:  Exterior Painting & Siding  Siding repairs/replacement  Rafters, soffit and fascia repair  Energy efficient window glass and screens  Railings and stairs  Landings and porches  Driveways (only if current driveway is unimproved) Interior repairs Work:  Energy efficiency improvements (insulation and heating/cooling systems)  Bathroom and Kitchen repairs & remodels  Accessibility improvements for people with disabilities  Failure of electrical, ventilation, or plumbing/septic system  Roof leaks that have led to significant damage to the interior  A structural failure of the foundation, walls, or roof that could cause collapse;  Removing lead paint or the cause of a confirmed concentration of lead in the resident’s whole blood (Environmental Intervention Blood Lead Level) Ineligible Improvements  Exterior repairs to condos and townhomes  New construction (additions)  Luxury items, such as swimming pools or saunas  Working capital, debt service or refinancing of existing debts Contractor Bids Applicants must provide the Housing Resource Center’s Construction Manager with three bids for each improvement project. All contractors must be licensed and insured. General Home Improvement Loan Page 3 of 4 Application & Loan Disbursement Process The Housing Resource Center’s (HRC) North & East Metro office is the program administrator. Please call the HRC’s construction and loan consultants at 651-486- 7401 to answer any questions about Mounds View’s loan program and/or your project. GMHC Housing Resource Center North & East Metro 1170 Lepak Court Shoreview, MN 55126 Phone: 651-486-7401 Fax: 651-486-7424 DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A CLOSING HAS TAKEN PLACE. ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM. Application Process: Completed applications will be processed by the HRC’s North & East Metro office on a first-come, first-served basis, as funds are available until all program funds are committed. After loan approval you will be notified to come to the HRC for a loan closing to sign a Note and Mortgage. Rehabilitation Consulting: HRC consultants will be available to advise borrowers about proposed projects and conduct an optional initial home inspection. HRC will review bid(s) for reasonableness. Loan Costs: A credit report fee paid by applicant at time of application; mortgage registration tax and filing fee and title policy paid by borrower at closing. The title policy may be financed through the loan. Contractors & Permits: Contractors must be properly licensed by the state of Minnesota when required. Permits must be obtained when required by city code. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. Borrower’s contribution to project cost must be paid prior to release of loan funds. HRC can direct borrowers to additional financing sources. Work Completion: Weather permitting, work must be completed within 120 days of loan closing. General Home Improvement Loan Page 4 of 4 Disbursement Process: Loan funds will remain in escrow at GMHC until payment for completed work. The following items must be received before the funds can be released: 1. Final Invoice from each contractor showing all amounts paid and due. 2. Lien Waiver. Original from each contractor. 4. Completion Certificate signed by each contractor and the borrower. 5. Permits Closed. Have the inspector sign the permit card, or have the inspector leave a message at the HRC at 651-486-7401. 6. Final Inspection and approval by the HRC. It may take up to 10 business days after receipt of above items to prepare checks. Payment checks to contractors must be countersigned by the borrower. Lien waivers must be provided before the funds will be released. EDA RESOLUTION 12-EDA-273 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION AMENDING THE MOUNDS VIEW GENERAL HOME REPAIR LOAN CRITERIA WHEREAS, the Mounds View Economic Development Authority (EDA) has Housing and Redevelopment Authority powers provided in Minnesota Statutes, Sections 469.001 to 469.047; and, WHEREAS, the purposes of Sections 469.001 to 469.047 are: (1) to provide a sufficient supply of adequate, safe, and sanitary dwellings in order to protect the health, safety, morals, and welfare of the citizens of this state; (2) to clear and redevelop blighted areas; (3) to perform those duties according to comprehensive plans; (4) to remedy the shortage of housing for low and moderate income residents, and to redevelop blighted areas, in situations in which private enterprise would not act without government participation or subsidies; and (5) in cities of the first class, to provide housing for persons of all incomes; and, WHEREAS, on November 22, 2012, the Mounds View EDA approved criteria for a one-year pilot program called the Mounds View Home Improvement Loan Program consisting of the following four loan types available to Mounds View residents: 1) Home Demolition 2) Code Enforcement 3) General Home Repair 4) Emergency Deferred; and, WHEREAS, on December 12, 2011, the EDA authorized a one-year extension of loan program through 2012 and increased the program’s loan-to-value ratio to 110%; and, WHEREAS, on June 11, 2012, the EDA expanded the “General Home Repair” loan criteria to include unimproved driveways as an eligible project. Resolution 12-EDA-273 Page 2 of 2 NOW, THEREFORE BE IT RESOLVED THAT the Mounds View Economic Development Authority does hereby authorize the following amendments to the “General Home Repair” loan criteria: 1) Change the name of the “General Home Repair” loan to “General Home Improvement” loan to clarify the intent of the loan, which is to enhance and improve a property’s livability and value 2) Add bathroom and kitchen remodels to the list of eligible improvements 3) Add the following clarifying language to the paragraphs that address eligible repairs and improvements: The General Home Repair Program makes funds available to improve the exterior and/or interior of the property. Eligible work may correct health and safety items, increase handicap accessibility, reduce long-term maintenance and energy costs or improve the livability of the home Eligible improvements include but are not limited to the following examples: Adopted this 8th day of October, 2012 by the Mounds View Economic Development Authority ________________________________ Joe Flaherty, President (ATTEST) ________________________________ James Ericson, Executive Director Item No: 7B Meeting Date: October 8, 2012 Type of Business: EDA Administrator Review : ____ City of Mounds View Staff Report To: Economic Development Authority From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Review EDC Recommendation Pertaining to the Creation of a County Road 10 Taskforce for the Purpose of Creating a Corridor Vision Background At the July 2, 2012, City Council Work Session, the City Council directed the EDC to create short and long term visions for County Road 10. The EDC discussed this at their meeting on July 20, 2012, and acknowledged that while their role is to advise the EDA; the actual creation of a "corridor vision" would seem to be more a function of the EDA/City Council. Discussion At the August 17, 2012, EDC meeting, the EDC proposed that the EDA take the following actions: • The EDA should review the 2002 County Road 10 Redevelopment and Redevelopment Plan, the 2006 Premium Stop Redevelopment Area Study, the 2008 Mounds View Comprehensive Plan, the County’s reconstruction plans for the County Road 10 intersections at County Road H and Silver Lake Road, and the EDC’s vision statement created on July 20, 2012. • The EDA should create a “County Road 10 Vision” taskforce consisting of at least two City Council members, two EDC members and members not currently serving on City committees. • The EDA should provide direction to the taskforce regarding whether the taskforce itself should create the entire vision for County Road 10. Recommendation Staff recommends that the EDA provide direction as to whether the EDA wants to create a “County Road 10 Vision” taskforce. If so, staff recommends that the EDA discuss who should serve on the taskforce and what the objectives should be. Respectfully submitted, Heidi Steinmetz, Economic Development Specialist