HomeMy WebLinkAboutHRA MINUTES 04142009CITY OF ST. ANTHONY
HRA REGULAR MEETING MINUTES
APRIL 14, 2009
5 CALL TO ORDER.
6 Chair Faust called the meeting to order at 7:59 p.m.
7
8 ROLL CALL.
9 Commissioners present: Chair Faust; Commissioners Gray, Roth, Stille, and Thuesen
10 Commissioners absent: None
11 Also Present: Executive Director Michael Mornson and City Attorney Jay Lindgren.
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13 I. APPROVAL OF APRIL 14, 2009 HRA MEETING AGENDA.
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15 Motion by Commissioner Thuesen, seconded by Commissioner Gray, to approve the April 14,
16 2009 Housing and Redevelopment Authority Agenda as presented.
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18 Motion carried unanimously.
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20 II. CONSENT AGENDA.
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22 Motion by Commissioner Gray, seconded by Commissioner Roth, to approve the Consent
23 Agenda, which consisted of
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25 A. H.R.A. Meeting Minutes of March 10, 2009; and
26 B. Claims.
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28 Motion carried unanimously.
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30 III. PUBLIC HEARINGS.
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32 None.
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34 IV. GENERAL POLICY OF BUSINESS OF THE H.R.A.
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36 A. Resolution 09 -007; Authorizing Assignment of Mortgage, Assignment of Leases and
37 Rents and Fixture Financing Statement Concerning Extension of Credit Facility from
38 Fannie Mae. Stacie Kvilvang, Ehlers & Associates and Jay LindpTen, Dorsey &
39 Whitney, presenting.
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41 Stacie Kvilvang, Ehlers & Associates, reviewed the proposed resolution and provided background
42 information on the Fannie Mae loan extension related to Silver Lake Village. She stated on April 1,
43 2009, the City and Fannie Mae executed the second amendment and modification to the loan and
44 security on the subject loan. Fannie Mae requested additional security on the loan in the form of an
45 assignment of the HRA's mortgage on the property. Ms. Kvilvang advised that upon discussion and
46 review with legal counsel, providing the assignment does not increase the City's risk in the deal. The
47 only time Fannie Mae would foreclose on this mortgage is if the City does not repay the loan, which is
48 unlikely. Ms. Kvilvang provided an overview of the remaining principal balance, the term of the
49 extension to December 31, 2010, and the schedule of payments. She explained that the loan will be
Housing and Redevelopment Authority Meeting Minutes
April 14, 2009
Page 2
repaid through land sale proceeds (estimated at $1.5 million) and tax increment that is generated when
the developer capitalizes its PAYG TIF note when it commences with construction.
Commissioner Stille requested an explanation on whether the economics still work with the land sale.
Ms. Kvilvang replied that the balance of the loan will be approximately $9,950,000 after the land sale.
Projected TIF revenue provides adequate proceeds to pay off the loan balance.
8 Mayor Faust requested comments from the City Attorney regarding Fannie Mae's requirement for an
9 assignment of the HRA's mortgage on the property. City Attorney Lindgren stated he agrees with Ms.
10 Kvilvang that providing the assignment does not really increase the risk to the City. He stated it creates
I 1 an additional burden to go through, but the likelihood of Fannie Mae ever foreclosing on the mortgage is
12 remote.
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14 Motion by Commissioner Gray, seconded by Commissioner Roth, to approve Resolution 09 -007,
15 Authorizing Assignment of Mortgage, Assignment of Leases and Rents and Fixture Financing Statement
16 Concerning Extension of Credit Facility from Fannie Mae.
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18 Motion adopted unanimously.
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20 B. Silver Lake Village Update. Stacie Kvilvang, Ehlers & Associates, presenting,
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22 Ms. Kvilvang reported that 111 of the 130 units in the condominium buildings have had closings, 3 units
23 are pending sales and 3 are reserved. A total of 16 units are remaining. Of the 26 single level
24 townhomes, there are 21 units that have been sold or are under contract with the sale pending.
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26 Mr. Len Pratt, Developer of Silver Lake Village, stated the City of St. Anthony is held in high regard
27 with an outstanding school system and streets that are in good repair comparatively to the immediately
28 surrounding areas. He reported on recent sales of existing homes in St. Anthony and Northeast
29 Minneapolis that point to a possible recovery in the marketplace. Mr. Pratt provided an update on Silver
30 Lake Village, Phase 1B Housing. The housing plan consists of 120 units including 40 senior cooperative
31 homes and 80 senior rentals with services to include health care and memory care units. Mr. Pratt stated
32 the local head of HUD is in favor of HUD supported financing on this final phase of housing. The goal
33 is to get this project in the ground in 2009.
34
35 Commissioner Stille inquired about the next step with the Phase 1B housing. Mr. Pratt stated a session is
36 scheduled for tomorrow for timeline planning. He hopes to have the health care provider and the builder
37 attend a Council workshop within the next 60 days.
38
39 Ms. Kvilvang stated based on Mr. Pratt's update, staff will be looking to present the City Council and
40 HRA with a 7ch amendment to the Development Agreement in the next 30 to 60 days.
41
42 City Manager Momson indicated that an amendment to the existing PUD will be coming forward as
43 well.
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Housing and Redevelopment Authority Meeting Minutes
April 14, 2009
Page 3
V. STAFF REPORTS
None.
VI. H.R.A. COMMISSIONER COMMENTS
None.
VII. INFORMATION AND ANNOUNCEMENTS
None.
VIII. ADJOURNMENT
Chair Faust adjourned the meeting at 8:25 p.m.
Respectfully submitted,
Carol Hamer
TtmeSaver Off Site Secretarial, Inc.
ATTEST:
City Clerk
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