2000-01-25MINUTES - MEETING MOUND HRA -JANUARY 25, 2000
The Housing and Redevelopment Authority of the City of Mound, Hennepin County, Minnesota,
met in a regular session on Tuesday, January 25, 2000, at 7:00 p.m., in the Council Chambers at
5341 Maywood Road, in said City.
Those present: Chairperson Pat Meisel; HRA Board Members Andrea Ahrens, Bob Brown, Mark
Hanus and Leah Weycker. Also in attendance were Acting City Manager Fran Clark, City
Attorney Mack LeFevre, HRA Director Pinky Charon, and Secretary Sue McCulloch.
Consent Agenda: All items listed under this Consent Agenda are considered to be routine by the
Housing and Redevelopment Authority and will be enacted by a roll call vote. There will be no
separate discussion of these items unless a Councilmember or citizen so request, in which event
the item will be removed from the Consent Agenda and considered in normal sequence.
Chairperson Meisel called the meeting to order at 7:03 p.m.
APPROVAL OF AGENDA AND CONSENT AGENDA.
Chairperson Meisel stated she would like to add 2B.a. and 2B.b. to the Agenda. She stated 2B.a
is a letter to Northern Hospitality terminating contract and 2B.b involves a Gary Maxwell letter of
intent.
MOTION by Hanus, seconded by Weycker to approve the agenda and consent
agenda as amended above. The roll call vote was unanimously in favor. Motion
carried. 5-0.
*1.0 INDIAN KNOLL MANOR CONSENT AGENDA.
Monthly Bills - December and January.
Minutes- November 30 and December 14, 1999, and January 11, 2000.
Next Indian Knoll Manor meeting scheduled for February 22, 2000.
1.1 ACCOUNTING ITEMS.
A. Accountant Reports - Year and GAAP Conversion.
The HRA Director stated GAAP has now been converted. She stated there was a year-end
adjustment which slowed everything down, but that will be changing soon. She stated a report
will be coming in shortly and the HKA Board Members will receive a copy when it arrives.
B. Bank Accounts (moved $10,000 of HUD money to new 4M Fund).
i ,Il I I I ii, ,I,, ,J i ,~ ~
MOUND HRA IVlRqUTES - JANUARY 25, 2000
The HRA Director stated she moved $10,000 to a new 4M Fund and money has already been
made on the account. It has been a positive change. The HRA Director further stated she
received the $14,000 levy and this check has been added to the appropriate account.
1.2 HRA ACTION ITEMS.
A. Letter from Northern Hospitality.
Chairperson Meisel stated Northern Hospitality initially sent a letter of intent concerning the
Maxwell property where a hotel was being proposed. Evidently, Northern Hospitality has had
several defaults and problems in the past and it has been recommended by the City Attorney to
terminate the contract.
HRA Board Member Ahrens stated the contract was initially up in June, but the contract was
written in such a way that it could be terminated if such a incident came up. Chairperson Meisel
agreed.
HRA Board Member Hanus wanted more clarification and background of how it was determined
Northern Hospitality should be terminated. Chairperson Meisel stated the City Attorney stated
Northern Hospitality had a number of holding defaults on buildings that exist, they had tax issues,
and they were not in a good financial situation.
Chairperson Meisel stated investigation regarding a new developer is underway. She stated it is
strictly at an interest level now, but she is hopeful of another developer coming forward so
Northern Hospitality could be terminated at this point in time and it would be appropriate.
HRA Board Member Weycker asked if there was a draft of the letter of termination to Northern
Hospitality at this point. Chairperson Meisel stated a letter will not be dra~ed until the HRA
Board has agreed to terminate.
HKA Board Member Ahrens stated if we consider other developers, are we now back to square
one with the whole process. Chairperson Meisel stated this was a true statement.
HRA Board Member Weycker asked if the City has spoken to Northern Hospitality about these
concerns and Chairperson Meisel stated Mr. Chamberlain had discussed this information in good
faith with them. Northern Hospitality is, of course, still interested because they have no risk with
this project.
HRA Board Member Weycker stated it seemed a little drastic to terminate at this point, although,
she is confident in the City Attorney's abilities.
MOTION by Weycker, seconded by Ahrens, to direct staff to draft a letter of
termination for Northern Hospitality. The vote was unanimouSly in favor. Motion
carried. 5-0.
MOLrND HRA MINUTES - JANUARY 25, 2000
B. Gary Maxwell Letter of Intent.
Chairperson Meisel had conversations with Gary Maxwell regarding specific property. He stated
the Phase II report would not be so costly if the City of Mound would go through the State of
Minnesota and get connected up into the VIC program. After the COW meeting it was agreed
that this would be something the City of Mound would explore. Chairperson Meisel stated she
relayed the interest aspect of the City of Mound to Mr. Maxwell and he now is proposing the City
of Mound send a letter of intent with a purchase price the City of Mound would consider.
Chairperson Meisel stated if the City of Mound would agree to send in a letter of intent to Mr.
Maxwell and this progresses further, the City Attorney could connect up with a knowledgeable
individual who specializes in the Phase II aspects and the VIC program and educate the City of
Mound with timelines what to expect with this type of project.
HRA Board Member Brown stated there is a possibility the cleanup process may be more minor
than expected.
HRA Board Member Hanus wanted it clarified if we do continue down this pathway that there
would be an out for the City of Mound if it is going down the wrong avenue. Chairperson Meisel
agreed with this theory.
HRA Board Member Weycker was concerned about the extra expenses that would result from
acquiring this expert and also coming up with a purchase price when there will be outstanding
costs.
HRA Board Member Hanus stated it could be possible to come up with a purchase price as long
as there were contingencies mentioned with the agreement that would take care of unforeseen
costs. HRA Board Member Brown agreed.
Chairperson Meisel stated there is another offer on the table for this property and the Phase II
section of this project does not cause concern for this possible buyer.
HRA Board Member Ahrens stated she would offer $250,000; HRA Board Member Brown
stated he would offer $300,000; HRA Board Member Hanus stated he would offer $275,000;
HRA Chairperson Meisel stated she would offer $300,000; HRA Board Member Weycker stated
she was uncomfortable making an offer without more documentation, although, after further
discussions she stated $250,000 would be her offer.
Chairperson Meisel stated the City Engineer's price was on the high side according to information
received from the City Engineer.
MOTION by Brown, seconded by Weycker, to offer $275,000 with contingencies
that will cover the cleanup, the construction issues, the hired specialists, or other
unforeseen costs. Motion carried. 4-1, Ahrens voting nay.
MOUND HRA MINUTES - JANUARY 25, 2000
HRA Board Member Ahrens stated she was not opposed to the concept; she was opposed to the
price being offered. She stated the City could always go higher.
C. Resolution #00-1, Grievance Procedure.
HRA Board Member Weycker noted a spelling error in Section IV(B) wherein the word "theat"
should be replaced with the word "that."
MOTION by Ahrens, seconded by Hanus, to accept the Resolution as amended above.
RESOLUTION #00-1: RESOLUTION ADOPTING NEW GRIEVANCE
PROCEDURES POLICY EFFECTIVE FEBRUARY 1,
2000.
The vote was unanimously in favor. Motion carried. 5-0.
D. Resolution #00-2, Lease.
MOTION by Hanus, seconded by Brown, to accept the Resolution as presented.
RESOLUTION #00-2: RESOLUTION ADOPTING A NEW LEASE
EFFECTIVE FEBRUARY 1, 2000.
The vote was unanimously in favor. Motion carded. 5-0.
E. Resolution #00-3, Schedule of Charges.
MOTION by Weycker, seconded by Brown, to accept the Resolution as presented.
RESOLUTION #00-3: RESOLUTION ADOPTING A NEW SCHEDULE OF
CHARGES POLICY EFFECTIVE FEBRUARY 1,
2000.
The vote was unanimously in favor. Motion carried. 5-0.
F. Resolution #00-4, New Admission and Continued Occupancy.
MOTION by Brown, seconded by Ahrens, to accept the Resolution as presented.
RESOLUTION #00-4: RESOLUTION ADOPTING A NEW ADMISSIONS
AND CONTINUED OCCUPANCY POLICY
EFFECTIVE FEBRUARY 1, 2000.
The vote was unanimously in favor. Motion carded. 5-0.
4
MOUND HRA MINUTES - JANUARY 25 2000
G. Resolution #00-5, Community Service.
MOTION by Ahrens, seconded by Hanus, to accept the Resolution as presented.
RESOLUTION #00-5:
RESOLUTION ADOPTING NEW COMMUNITY
SERVICE POLICY EFFECTIVE FEBRUARY 1, 2000.
The vote was unanimously in favor. Motion carded. 5-0.
1.3 INFORMATION ITEMS.
A. Results of Resident Service and Satisfaction Survey.
The HRA Director stated even though there was a previous survey that communication and safety
needed to be improved, when the people were polled they did not have any solutions.
Nevertheless, communication will be improved by a newsletter and security will be improved by
inviting policeman into the apartments at any time. The I-IRA Director stated there are lock boxes
with a master key for every apartment and any police officer in Mound has access to the lock box.
B. CBDG Funds Request.
The HRA Director stated she does not have all of the details yet regarding this request. She
stated when this is brought to her attention again, she will recommend having handicapped
accessibility. There are monies available to help support this financially through a grant program
with the properly executed applications. The HRA Director stated she receives about one call per
month asking for this type of facility. She stated the City of Mound becoming a more favorable
place to live and with improved transportation systems to come, she sees the demand for such a
facility increasing.
HRA Board Member Weycker stated the City of Mound is considered a consolidated pool
location.
C. Letter to HUD and E-mail Answers.
The I-IRA Director stated she was having trouble getting the paperwork from HUD to complete
the grant application so she investigated this problem. She stated there is a five-year plan
presently. The work involved will be going through different plans, such as the maintenance plan
and the personnel plan. She stated the only plan that has been completely reviewed is the pet
policy, the flat rent and ceiling rent. Evidently, certifications are needed as well.
The HRA Director stated she is trying to get the $60,000 grant money and she is hopeful it will be
accessible to her at the next HRA meeting.
1.4 TENANT REPRESENTATIVE REPORT.
MOUND HRA MINUTES - JANUARY 25, 2000
Ms. Charon had no updates.
ADJOURNMENT.
MOTION by Ahrens, seconded by ltanus, to adjourn the meeting at 7:40 p.m.
vote was unanimously in favor. Motion carried. 5-0.
The
Pinky Charon, HRA Director
Attest: Chairperson Meisel