City of Bloomington, MN Bloomington Housing and Redevelopment Authority (HRA), 25 Oct 2022

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From YouTube: October 25, 2022 Housing and Redevelopment Authority Meeting

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October 25, 2022 Housing and Redevelopment Authority Meeting

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Call the October 25th 2022 meeting of the Housing and Redevelopment authority to order um let the record show a quorum is present. Our first order of business is approval of the agenda. Are there any additions or corrections to the agenda?

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Hearing none do I, hear a motion to approve the agenda.

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um Is there a second it has? It has been moved by commissioner Martin with a second by commissioner Thorson to approve tonight's agenda, all those in favor signify by saying I, I.

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Agenda the agenda has been approved five to zero. Our next order of business item number three approval of the minutes of October 11 2022.. Are there any additions or corrections to the minutes?.

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Chair just uh heads up I.

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Think, council.

C

Member Colter and I are going to be abstaining on.

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This one right, you are available, so it's going to be the three of us this evening. um Are there any additions or Corrections hearing? None do I hear a motion to approve the October 11 2022 board meeting minutes.

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I hear a second second thank you. It has been moved by commissioner Thorson with a second by commissioner, who came to approve the minutes of October 11 2022, all those in favor signify by saying I I opposed the minutes pass three to zero moving on to organizational business, which it doesn't look like. We have any this evening. So we're going to go right on to new business item. 5.1 housing, Improvement areas, hia application, 80, 45, Xerxes, Avenue South. May we have the staff report. Please absolutely.

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Thank you, chair Lewis, Erica, Coleman, HRA administrator.

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um So uh what you have here in your packet attached to the staff report is a analysis of the application and recommendation, as well as the updated housing, Improvement area policy and the housing Improvement area process.

D

So per the housing Improvement area policy and process staff has provided a summary of application, materials and findings for the property located at 8045 Xerxes Avenue South known as The Heights Condominiums staff is recommending denial of this application and I will go through just briefly the summary of the points of aligning what we reviewed and when I say we, it was Lori economy, schoeller, the Chief, Financial Officer, as well as myself and other staff.

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So after the review of the hi application, requests of three million 290 000, comprised of two million six hundred forty thousand dollars in fee assessments and six hundred fifty thousand dollars in tax increment financing. The criteria reviewed is as follows. A majority of the 30 units are supporting the official Public Safety garage and Lobby improvements, but are not aware of the full cost that would be assessed to them. The HOA fees are increasing significantly and will need to continue to increase annually to fund future improvements within the reserve study.

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The heights application asks for a bond interest rate of 2.7 percent on August 15 2022, the city of St Louis, Park sold hia bonds for approximately 4.2 percent. The bond market interest rates will continue to fluctuate, as the Federal Reserve increases rates.

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The heights requested that the fee assessment remain on the unit with no ability to pay off the assessment. During the 20-year term. The city's policy is to allow the homeowners the greatest flexibility and allow that the fee assessment can be paid off anytime during the hia's existence like St Louis, Park Bloomington adds an additional interest fee for this flexibility staff have reviewed the tax increment finance and requested and found that, with the current market conditions, the tax increment available is approximately half of the request at three hundred twenty five thousand dollars.

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The requested fee assessment amount of two million six hundred forty thousand dollars compared to the possible 2023 valuation of two million. Nine hundred fifty thousand dollars is at ninety percent when adjusted for the decrease in tax increment, the fee assessment would need to be 2965 000 or over a hundred percent of the 2023 valuation.

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The estimated annual hia fee assessment per unit could range from seven thousand five hundred sixty three dollars to nine thousand two hundred twenty nine dollars before adding in other financing costs. That is an annual fee.

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Deuce is significantly higher: HOA fees, higher bond interest rates, higher construction costs and excessive hia fees. These factors are creating an economic hardship to each unit at the heights. Therefore, City and HRA staff recommend to deny approval of the heights hia application and tax increment financing request.

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I am available for any questions, as well as Miss economy scholler, who is joining us this evening.

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Are there any questions.

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I think um I think we're probably ready for a motion. Actually so do I hear a motion to support staff recommendation of denial for the housing Improvement areas, application at 8045, Xerxes, Avenue South.

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Is there a second second?

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It has been moved by commissioner Coulter with a second by commissioner, who came to support staff recommendation of denial for the housing Improvement areas, application at 8045, Xerxes, Avenue South, all those in favor signify by saying I I opposed motion passes five to zero. Thank you.

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Moving on to item 5.2, local housing incentives account funding application for affordable home ownership pilot. May we have the staff report. Please thank.

D

You chair, Lewis staff, is applying for funding support through the Metropolitan council. Local housing initiatives, accounts lhia for short, affordable, homeownership pilot for new construction, affordable homeownership development at city-owned property at 8440, Humboldt, Avenue South. This is a typo, it's 8442, Humboldt Avenue South 8446, Humboldt, Avenue, South, 8452, Humboldt, Avenue South and 1210 82nd Street West.

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These Lots were brought before you previously, because these are known as the right of way. Lone Act was right of way acquisition, Loan, Fund or Ralph I believe that was an acronym.

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That was not very well liked for property that the city um does own and the HRA will manage the marketing and sell four affordable home ownership opportunities with long-term affordability requirements, and so um the application that must be submitted must be submitted by October, 28th 2022 and it's an electronic web application and any future development aligning with City and HRA priorities, as approved through the HRA assessment. Recommendations will be to provide affordable, homeownership options in Bloomington. So this is really following back up on the HRA assessment.

D

The recommendations and the direction heard here from this body about the focus on affordable home ownership in Bloomington, and what does that look like?

D

And so here we have an opportunity where we have control over some vacant, Lots, where we could build new homes and so uh putting in an application to um met Council where we would be required to do a dollar for dollar match um and so proposing that we use our current mechanism, which is through Community Development block grant where we do have an affordable, homeownership activity um that we provide up to 75, 000 per property, and so the potential here.

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The ask here is a match where it could be up to a hundred and fifty thousand dollars to construct an affordable property for a um end. Buyer household that is at or below 80 Ami, with a focus on fifty percent Ami or below.

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Are there any questions for yes, administrator Coleman.

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Commissioner, so is this program in terms of like selection and vetting of homeowners candidates? Is this going to be done by staff or by another party? That is already doing this kind of thing.

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Thank you for the question, commissioner Thorson. That's a great question. This, um as proposed, would probably be done by another party that has experience in doing that developing number one, but also serving communities um that are at or below 80, Ami, first time, home, buyers, first generation, home buyers, black indigenous people of color home buyers, but with the input and the partnership of HRA staff.

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Are there any other questions for administrator Coleman.

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Hearing none do I, hear a motion to approve the resolution. Approving application for local housing incentives account funding for part, affordable, homeownership pilot, so moved. Second, it has been moved by commissioner, who came with a second by commissioner Coulter to approve the resolution. Approving application for local housing incentives account funding for affordable home ownership pilot. All those in favor signify by saying I I opposed motion passes five to zero.

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Thank you. Moving on to item 5.3.

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I'm pronouncing it correctly: Acropolis Redevelopment Update, 9, 9, 000, Penn, Avenue South and 2325 West 90th Street. May we have the staff report absolutely.

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Thank you, chair Lewis, um so I had to learn how to pronounce it too. It's europolis, I I know that they taste good, that the restaurant is good. They.

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Actually, for lunch.

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On January 25th of this year, this HR this bar excuse me this board passed resolution 202205, which is attached to the staff report supporting an application for the Minnesota Department of Employment and economic development, better known as deed Redevelopment, grant program and potential creation of a tax, increment financing district for a proposed expansion and Redevelopment on privately owned parcel at the commercial Corridor of 90th and Penn. The deed Redevelopment Grant is intended to provide funding to assist with complex and costly Redevelopment projects that might not otherwise occur without public financial assistance.

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The program applies only to sites where there was a previous development and significant barriers exist to redevelop the land for a more productive use. The program can pay up to 50 percent of the Redevelopment costs for a qualifying site. Redevelopment costs mean the costs of the land acquisition, stabilizing, unstable soils when infill is required, infrastructure improvements and bonding or other environmental infrastructure, demolition, demolition costs and costs necessary for interior environmental abatement, including remedial activities.

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The application was awarded funding to assist with the Demolition public infrastructure improvements, environmental infrastructure and geotechnical soil correction to assist europolis Investments LLC, with costs associated with the Redevelopment of 9000 Penn Avenue South and 2325 West 90th Street, better known as europolis staff, is reviewing the financial assistance requests for tax increment financing as it aligns with overall City and HRA priorities. The next steps are for the project to go before the Planning Commission, a public hearing at city, council and approval of financing requests and agreements by the HRA board before the end of December 2022..

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So this is informational. Only there's no board action proposed at this time, but I'm open for any uh questions or discussion on this update.

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Are there any questions for administrator Coleman? Yes, commissioner,.

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Who came? Thank you, madam chair I. Don't have a question I just want to say that I'm very, it's really exciting to see this moving forward. So I appreciate staff's work on this, as well um as us approving them the um the application for the Minnesota Department of Unemployment on the deed Redevelopment grant program. So um it's just really great. Thank you for bringing this update to us. It's very exciting and I can't wait to see that happen. That development happened.

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Any are there any other comments.

C

Yes, commissioner, I'm just curious: is there any kind of uh information out there in the public yet as to what they're generally proposing uh in terms of uh I'm guessing a restaurant expansion, new type of restaurant, whatever it might be? Thank.

D

You for the question, commissioner Thorson. So there is some information, so the owners, europolis Investments LLC, are very involved in the community and have spoken with different business owners and residents around the area, but also um they have gone to development review uh the pre they went to pre-drc and development review, Council I think it is, and then there um they've gone back and they will be going to Planning Commission, which also will be public information.

D

So one of the things in the timeline is that um there needs to be a public hearing, and so there will be a publication, there's notification to the county, the school board. So throughout the process there will be more information and when I do bring it back. I should have us uh renderings for you, so you can see what is being proposed.

C

um I'm just curious: if there is anything we know now, that is considered public in terms of uh what is being proposed.

D

Okay, so as of this time, their application to the planning department is what's public and the information on what they're proposing is in that application.

C

Thank you, yeah.

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Are there any other questions or comments for administrator Coleman? Well, thank you for that update. As I told you yesterday, I drive by there quite often and I was just thinking about it, so it was like um worked out very well. Thank you.

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um Moving on to um discussion items item 6.1, commissioner, questions and comments: do any of the Commissioners have anything they'd like to discuss? Yes, commissioner. um Coulter thank.

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You um just wondering and I'm just not remembering this at the moment. Where are we at as far as new HRA commissioners.

D

Absolutely thank you, so the application is currently open. uh It has been advertised um in the paper. It's also on social media. I have also sent out um emails to uh networks to say, hey Bloomington residents apply. Are you interested so at this time the update that I had as of yesterday is. We still only have one application, and so it is pending closing October 31st, but we can always review that and see if we need to extend it just a little bit longer.

D

As you may recall, our application is open for new Commissioners, as well as the port authority.

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um Are there any other comments or questions.

C

I have one yes now that it's getting dark out again and I drive by pen and American, and uh it's a question I've had in the past and I know it was kind of tangled up, but um the HRA did participate in paying for some art public art on the buildings, and uh it always looked really nice when he drove by nights, particularly at holidays and I'm, wondering if there's any progress on trying to see how that public art can be um relit. Yes, thank you.

D

Yes, thank you for the question. um So uh simply there was not a surge protector, um and so what it is is that the uh public art was damaged and it would need to be removed.

D

I think it's about eight pieces, it would need to be removed, sent out to be repaired um and then be reinstalled at this time there was uh not in the agreement, maintenance requirements, and so the property has changed owner, since we did our agreement, and so that's where the Hang Up is is um who can take care of in Terms of gently, take care of physically but also financially to repair that public art, and so we are still having conversations as um we move forward with other things in the Pan American District area.

C

Thank you I appreciate that update I did not realize there was that kind of issue, and certainly um financially things are hard everywhere, including um in the city and public funds. So I can certainly understand if that moves along very slowly. If not at all. Thank you for the update.

A

Thank you any other questions, comments. Hearing, none I'm, going to move on to item number seven adjournment, do I, hear a motion to adjourn our meeting.

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Second. Second, thank you. It's been moved by commissioner Martin.

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I, don't want to answer it I'm just going to hide it. uh I usually turn my phone off of course I didn't tonight now my phone is my watch is ringing too wonderful. Do I, hear emotion, all right.

C

Sharon Lewis.

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I, don't even recognize the numbers, so it's probably one of those wonderful, you know called it's like sorry guys and I yell at people for doing that. It's like there's nothing more embarrassing. It's like it's, not mine!

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Okay, try! This again. um It was moved by commissioner Martin with a second by commissioner, who came to adjourn the October 25th 2022 meeting of the Housing and Redevelopment Authority, all those in favor signify by saying aye, aye.

C

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We are adjourned. Thank you.