Minutes of HRA Regular Board Meeting



Minutes of HRA Regular Board Meeting

Monday, June 12, 2017, 12:00 p.m.

1. Call to Order.

Vice-Chair Dan Mensing called the meeting to order at 12:06 p.m. in the dining room of Crescent Apartments.

2. Roll Call.

Members present: Vice-Chair Dan Mensing, Mark Maher, Rick Scholtes and Ken Skaare.

Member absent: Lars Bierly.

Staff present: Nancy Cole, Executive Director/Housing Manager and Timothy Ibisch, City Administrator.

Also present: FCDC Director Tim Clawson and Administrative Intern Tyler Van Eck.

3. Approval of Minutes.

The minutes from the HRA Regular Board meeting of May 8, 2017 were provided in the HRA packet for the board to review.

SCHOLTES MADE THE MOTION, MAHER SECOND TO APPROVE THE MINUTES OF THE HRA REGULAR BOARD MEETING OF MAY 8, 2017. THE MOTION WAS APPROVED UNANIMOUSLY.

4. Budget update and approval of bills.

Housing Manager Nancy Cole reported that the HUD subsidy payment of $12,057.00 was recently

received. Cole shared that an additional amount was received for the operating fund due to the initial low subsidy projection.

MAHER MADE THE MOTION, SKAARE SECOND TO APPROVE THE BILLS AS PRESENTED

TO THE BOARD. THE MOTION WAS APPROVED UNANIMOUSLY.

5. Correspondence.

There was no correspondence.

6. Old Business.

A. Housing Rehabilitation and Demolition Program update.

1. City Administrator Timothy Ibisch reviewed the Housing Rehabilitation and Demolition Programs

update. Ibisch noted that a repayment of $6,319.16 is anticipated on June 16 due to the sale of a

past participant’s home. Ibisch shared that the contract has been signed for the demolition of the

residence at 428 South Nicollet Street.

B. Cash CD.

Housing Manager Nancy Cole reported that the $10,000 CD would be cashed on its maturity date of

June 17, 2017 to provide extra liquidity in the early budget cycle.

C. Eviction.

Cole provided an update on the recent eviction of a Crescent Apartments’ tenant. Cole shared that

the lock on the apartment has been changed and the tenant has been instructed to contact staff to

allow them entrance into the apartment to remove their belongings. Ibisch recommended providing

the former tenant a deadline for removing their items from the apartment.

D. Parking lot repair.

Cole reported that Bargen Inc. would begin the repairs to the parking lot next week and return to

complete the work in the fall. Cole shared that the cost to repair both parking lots is $4,050.00.

Cole addressed additional upcoming expenses that includes updating an apartment and replacing the

leaking circulating pump for an estimated cost of $7,550.00.

E. Audit completed.

Cole shared that the audit has been completed and will be submitted to REAC by the end of June.

7. New Business.

City Administrator Tim Ibisch introduced Administrative Intern Tyler Van Eck to the HRA Board and

shared that Van Eck would be surveying the City’s housing stock to identify areas of blight. Ibisch

further discussed how the exterior of each residence would be scored by Van Eck.

A. Dumpster through City’s program on June 22nd.

Cole informed the board that the Crescent Apartments has reserved a dumpster on July 22 through the

City’s dumpster program. Cole shared that information has been posted for the tenants to utilize the

dumpster during this time to get rid of unused items.

B. Operating fund increase for June.

This agenda item was addressed during the budget and bills discussion.

8. Other Business.

Cole provided a copy of the Smoke-free Lease Addendum that addresses the no-smoking policy at

the Crescent Apartments. Cole shared that the effective date of the rule was on February 3, 2017 with an

18-month implementation period. The addendum will be addressed with new tenants and at the time of

renewing the lease with the current tenants.

Cole addressed a locked car that has been parked in the Crescent Apartments’ parking lot for five weeks.

Cole shared that it belongs to a friend of a tenant and asked for advice from the board on how to have it removed. Ibisch recommended putting a notice on the car giving the owner two days’ notice that it will be towed if it is not moved. Ibisch advised Cole to coordinate having the car towed with Chief of Police Tom Fletcher.

Cole discussed an issue with a coffee group that meets in the dining room weekly. Cole shared that the

group does not clean up after their use and leave the kitchen area a mess. Ibisch recommended posting a notice to clean up after each use or there will be a charge.

Housing plats and design.

Ibisch provided an updated preliminary plat of the proposed new housing development on the EDA

owned parcel by Lamperts. Ibisch discussed the square footage of the lots and noted that the front

parcel would be ideal for the location of townhomes. Ibisch shared that the City is negotiating with

Blue Earth Light & Water on a different location for their substation and added that it is not an

immediate issue at this time.

FCDC Director Tim Clawson addressed the current agreement with Blue Earth Light & Water regarding

the purchase of the property in 2014. The parcel was sold to Blue Earth Light & Water for a payment of $100,000.00 and a pledge of $100,000.00 to be paid to the BE EDA upon the construction of the first residential home being built in the new housing development adjacent to the property.

Ibisch discussed that the first phase of the project would include developing 20 lots, the second phase 23 lots and the third phase would complete the housing development. The estimated cost of phase one is

1.2 million dollars. Ibisch shared that he anticipates receiving the cost estimate information from Bolton & Menk in July and added that with Council approval the project could move forward with the bidding process. Ibisch stated that East Street improvements would not be included in the project at this time.

Townhome models.

Ibisch shared that on Thursday, June 8 he and a group that included Ken Skaare, Mark Maher, Kara Drake, and Tim Clawson drove to Worthington to tour Highland Manufacturing. Ibisch provided

information from the company on three homes ranging from $70,000 to $142,000.

Maher shared that the Highland Manufacturing plant was very impressive and noted that the homes are delivered with the electrical and plumbing completed. The company requires that an independent contractor is hired for the onsite work that includes preparing the foundation and setting the house.

The garage is not included and would be an additional expense for the homeowner. Clawson shared

that a licensed contractor would be required to sign the documents with the HRA for the home through Highland Manufacturing.

Mensing expressed his interest in custom built homes on the 14th /Moore Street lots rather than the

manufactured homes. Mensing recommended finding local contractors who are interested in working with potential homeowners to build a stick-built home on site. Mensing discussed the possibility of having an agreement with the contractor with a two-year building clause for the lots and added that

there would be a lower risk to the City with the contractor doing the work.

Scholtes discussed that the homes from Highland Manufacturing would work well for the new housing

development. Clawson suggested that the City could send out fliers to find interest from the public.

Clawson noted that an advantage of the modular home is the short timeframe for having it built and moved on site.

9. Director’s Reports.

A. Housing Manager Nancy Cole reported that there are four vacancies at the Crescent Apartments

with one apartment in mod-vacant.

B. City Administrator Timothy Ibisch provided a report in the packet for the board to review. Ibisch

shared that on Thursday, June 8 he met with the marketing campaign group and Otto Media Group

was hired.

C. FCDC Director Tim Clawson reported that the 3 Sisters Buildings RFP deadline is today and shared

that he anticipates receiving two proposals which will be presented to the BE EDA Board on

Thursday.

10. The next Regular HRA Board meeting will be held on Monday, July 10, 2017.

11. Adjournment.

Vice-Chair Dan Mensing adjourned the meeting at 1:06 p.m.

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HRA Chair

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