HomeMy WebLinkAboutHRA MINUTES 05082012CITY OF ST. ANTHONY
HRA REGULAR MEETING MINUTES
MAY 8, 2012
CALL TO ORDER.
Chair Faust called the meeting to order at 7:39 p.m.
ROLL CALL.
Commissioners present: Chair Faust; Commissioners Gray, Stille, and Roth.
Commissioners absent: Commissioner Jenson.
Also Present: Executive Director Mark Casey.
L APPROVAL OF MAY 8, 2012, HRA MEETING AGENDA.
Motion by Commissioner Gray, seconded by Commissioner Roth, to approve the May 8, 2012,
Housing and Redevelopment Authority Agenda as presented.
Motion carried 4-0.
if. CONSENT AGENDA.
Motion by Commissioner Stille, seconded by Commissioner Roth, to approve the Consent
Agenda, which consisted of:
A. H.R.A. Meeting Minutes of April 24.2012;
B. Claims, and
C. Adontine the Post Issuance Debt Compliance Policy & Procedures.
Motion carried 4-0.
111 111:311lei: 13 M t71►[m l
None.
IV. GENERAL POLICY OF BUSINESS OF THE H.R.A.
A. Presentation of the Purchase Aereement/Develoament Aereement for Dominium
(informational only). Stacie Kvilvang, Ehlers & Associates, presenting.
Ms. Kvilvang explained the City began discussing this project over one year ago and the City
Council adopted a resolution in 2011 supporting Dominium's application to Ramsey County for
grant funds. She advised the property in question includes two parcels owned by the HRA and
one parcel owned by Len Pratt. She indicated Dominium will purchase both parcels for a
purchase price of $1,216,000 or $8,000 per unit with the proceeds prorated based on square
footage of the parcels or 53% to the City ($643,000). She explained the Development
Agreement will be completed by the end of this month and the transaction must close by March
1, 2013. She noted it is possible that the purchase price will increase due to lower than
Housing and Redevelopment Authority Meeting Minutes
May 8, 2012
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anticipated construction costs or if additional grant funds are obtained; the purchase price may
increase from $8,000 to $10,000 per unit and the City could receive an additional $161,000.
Councilmember Stille asked about the likelihood of receiving the Ramsey County grant funds.
Mr. Ron Mehl, Dominium, appeared before the City Council and stated they believe that
Dominium will receive the grant from Ramsey County.
Ms. Kvilvang explained that the developer proposes to construct a 152 -unit senior independent
living rental building and at least 20% of the units must be affordable housing for seniors at or
below 50% of the Area Median Income. She indicated the construction costs are expected to be
approximately $14 million. She stated Dominium will be required to enter into a Minimum
Assessment Agreement for the project, or $85,000 per unit, which is the basis for the tax
increment provided; however the Minimum Assessment Agreement would not be required if the
Legislature changes the tax laws affecting the value of the property below $14.4 million. She
stated the City is providing a pay-as-you-go TIF note in the amount of $1,023,000 for a term of
15 years, ending February 1, 2031. She advised the Development Agreement will include look
back provisions and stabilization is considered when the building is at 93% occupancy. She
stated Dominium will reimburse the City's legal and fiscal costs of the Development Agreement
and Purchase Agreement, as well as pay park dedication fees of approximately $228,000 or
$1,500 per unit. She stated that Dominium is once again asking the City to act as a conduit on
the bonds and will be required to pay all legal and fiscal costs associated with that as well. She
added the Purchase Agreement and Development Agreement will be presented to the City
Council on May 22, 2012, as part of a public hearing.
STAFF REPORTS
None.
30 VI. H.R.A. COMMISSIONER COMMENTS
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32 None.
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34 VII. INFORMATION AND ANNOUNCEMENTS
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36 None.
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38 VIII. ADJOURNMENT
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40 Chair Faust adjourned the meeting at 7:53 p.m.
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42 Respectfully submitted,
43 Barbara Hughes, TimeSaver Off Site Secretarial, Inc.
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45 ATTEST:
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47 City Clerk