HomeMy WebLinkAboutHRA MINUTES 062220041
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CITY OF ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES
JUNE 22, 2004
CALL TO ORDER
Chair Hodson called the meeting to order at 8:45 p.m.
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10 PLEDGE OF ALLEGIANCE.
11 Chair Hodson invited the Council and audience to join him in the Pledge of Allegiance.
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13 ROLL CALL.
14 Present: Chair Hodson; Commissioners Horst, Stille, Thuesen, and Faust.
15 Absent: None.
16 Also Present: Executive Director Mike Mornson.
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18 1. APPROVAL OF JUNE 22, 2004 CITY H.R.A. AGENDA.
19 Motion by Commissioner Faust, seconded by Commissioner Horst, to approve the H.R.A.
20 Agenda of June 22, 2004.
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22 Motion carried unanimously.
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24 1I. CONSENT AGENDA.
40 1. Approve June 8, 2004, H.R.A. Meeting Minutes.
2. Consider payment of claims.
27 Motion by Commissioner Thuesen, seconded by Commissioner Stille, to approve the Consent
28 Agenda items.
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30 Motion carried unanimously.
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32 III. PUBLIC HEARINGS.
33 None.
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35 IV. GENERAL POLICY OF BUSINESS OF THE H.R.A.
36 1. Resolution 04-010; Approving the Development Agreement with Dominium Group.
37 Stacie Kilvang, of Ehlers and Associates, reviewed with the Council the summary of the rental
38 housing re -development agreement which included the following items:
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40 1. Development
41 The Redevelopment Agreement ("Agreement") is by and between the HRA and
42 St. Anthony Leased Housing Associates 1, Limited Partnership (the "Developer"),
43 which is a single purpose entity formed by Dominium Development &
44 Acquisition LLC. The Developer has entered into a Purchase Agreement with
45 Apache Redevelopment, LLC, the Master Redeveloper, to acquire the property by
46 September 30, 2004, which may be extended to January 31, 2005. The purchase
0 price for the property is $2,750,000 or $10,536/unit
HRA Meeting Minutes
June 22, 2004
Page 2
The Development consists of 261 rental units, of which, 80 will be senior housing
units and the remaining 181 will be non -age restricted units. Twenty (20) percent
3 of the units will be affordable to persons at or below fifty (50) percent of the area
4 median income (52 units).
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6 The Agreement provides that the Developer shall commence with construction
7 not later than January 31, 2005, and complete the improvements by July 1, 2006.
8 The Development will be subject to customary City land use controls and
9 approvals, including a PUD Agreement and approval of Final Plans and Final
10 Plats.
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12 2. Assignment to Development Parties
13 The Development Agreement can be assigned to another party, but only with
14 consent of the HRA.
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16 3. Tax Exempt Bond Allocation
17 The Developer is requesting the City to issue tax-exempt conduit revenue bonds
18 in the principal amount not to exceed $37,500,000, to assist in constructing the
19 development. These bonds do not create any risk for the City, since they are
20 revenue bonds and are paid by project revenues. In addition, the bond amount
21 does not affect the City's or HRA's debt limits.
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The developer will be required to pay the City a fee in the amount of one (1)
percent of the principal amount of the bonds, in accordance with the City's
25 Conduit Financing Policy and the HRA will be required to hold a public hearing
26 on the issuance of these bonds as required by State Statute.
28 4. Tax Increment
29 A. Creation of a Redevelopment TIF District. The City and HRA have
30 created a Redevelopment TIF District.
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32 B. TIF Assistance. The Developer will receive ninety (90) percent of the
33 available TIF for 25 years on a Pay -As -You -Go basis, with a present value
34 (assuming no inflation) of approximately $3.4 million to $4.1 million. If a
35 two percent inflation factor is considered, this range would increase to
36 approximately $4 million to $4.8 million. The final assessed value of the,
37 property will be determined by the County Assessor, and this final
38 valuation will be used to determine the final TIF amount. Those assessed
39 values are currently estimated in the range of $95,000 to $115,000 per
40 unit. The Developer will pledge their TIF note to the construction lender.
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42 C. TIF Adiustments. After the development is constructed and has received
43 its Certificate of Occupancy from the City, the Developer is required to
44 submit to the HRA, a final sources and uses statement from a certified
45 public accountant that is approved by the HRA. To the extent the sources
40 of funds exceeds the uses, the Developer will have thirty (30) days to
submit an amount equal to fifty (50) percent of the amount by which total
48 sources exceed total uses to the HRA.
HRA Meeting Minutes
June 22, 2004
Page 3
01 5. Miscellaneous
3 A. Developer Fee. The Developer will defer payment of their development
4 fee until after the development has been constructed.
6 B. Timing. The Developer will, subject to Unavoidable Delays, begin
7 construction by January 31, 2005, and complete the project by July 1,
q8 2006.
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11 Commissioner Horst questioned the S4.7 million estimate on the TIF assistance. Ms. Kilvang
12 stated that the estimate could be less or more which would be determined based upon the
13 valuation of the property, and at what level the developer will be able to sell the bond as a
14 mortgage on the property.
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16 Commissioner Horst continued in questioning how the 20 percent figure on the affordable
17 housing was derived. Ms. Kilvang answered that it was set by the financing of the bonds. She
18 added that as a statutory requirement they have an option of 20 percent at 50 percent of the
19 median income or 40 at 60 of the median income, and 20 percent was chosen.
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21 There was discussion regarding the addition of the affordable housing component adding to the
22 need for assistance due to land costs, as well as the range in reported debt fluctuation.
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Commissioner Thuesen noted how complex the project has been and the fact that a project like
IN this does not "just happen."
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27 Chair Hodson agreed with Commissioner Thuesen noting that due to the Staff the City has been
28 able to make the project happen. He noted that the residents may not be aware of the difficulty
29 involved in planning these types of projects in the middle of a metropolitan area.
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31 Commissioner Faust noted that the Council, in conjunction with Ehlers and Associates, made a
32 conscious decision to go with 20 percent, on the affordable housing component, which lead to
33 the TIF number.
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35 Motion by Commissioner Faust, seconded by Commissioner Thuesen, Approving Resolution 04-
36 010, Relating to the Redevelopment of Property in Redevelopment Project Area No. 3 and
37 Authorizing the Preparation, Execution and Delivery of a Rental Housing Associates I, Limited
38 Partnership.
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40 Motion carried unanimously.
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42 V. STAFF REPORTS.
43 None.
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45 VI. H.R.A COMMISSIONER COMMENTS.
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HRA Meeting Minutes
June 22, 2004
Page 4
VII. INFORMATION AND ANNOUNCEMENTS.
None.
VIII. ADJOURNMENT.
Chair Hodson adjourned the meeting at 9:03 p.m.
Respectful]
Danielle R.
TimeSaver
ATTEST:
Motion carried unanimously.
City Clerk