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2007-11-27PLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. AGENDA C7 MOUND HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING TC~ESDAY, NOVEMBER 27, 2007- 6:30 PM MOUND CITY COUNCIL CHAMBERS Page 1. Open meeting 2. Action approving agenda, with any amendments 3. Action approving minutes: October 23, 2007 -Regular Meeting 1-2 4. Management Report for Indian Knoll Manor, with any necessary action 3-12 5. Redevelopment Financing and Projects . A. Transit District -Deck 1 1. Contaminated soil: $150,000 B. Auditor's Road -Deck 2 1. Met Council Livable Communities grant extension 2. Estimated Financing Gap: $350,000 C. Consideration of authorizing staff to respond to offers from owners of properties: 1. Curtis Johnson estate 5545 Shoreline Drive 2. MS & FY Moy 5555 Shoreline Drive 3. Roger Beckel 5567 Shoreline Drive 4. Kenneth Perbix 5575 Shoreline Drive (The HRA will be asked to close this portion of the meeting pursuant to the Minnesota Open Meeting Law.) D. Next steps 6. Adjourn 13-14 supporting documents for 5C -Closed Meeting -will be delivered by messenger service on Friday, at the direction of Kennedy & Graven. Should you not be home, they will be left inside the door. MOUND HOUSING ANa REDEVELOPMENT-AUTHORITY • OCTOBER 23, 2007 The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in regular session on Tuesday, October 23, 2007 at 6:30 p.m. in the council chambers of city hall. Members present: Chair Mark Hanus, Commissioners David Osmek, Mike Specht, John Beise and Greg Skinner Others present: City Attorney John Dean, Executive Director Kandis Hanson, City Clerk Bonnie Ritter, Community Development Director Sarah Smith, Public Works Director Carlton Moore, Finance Director Gino Businaro, Terry Foster, Ken Perbix, Paula Larson, Ronda Hague, Cara Otto, Brian Benson, Amanda Schwarze, Dave Newman, Chuck Alcon, Chris Kenelly. 1. Open meeting Chair Hanus called the meeting to order at 6:30 p.m. 2. Approve agenda MOTION by Specht, seconded by Osmek to approve the agenda. All voted in favor. Motion carried. 3. Approve minutes ~ ' MOTION by Osmek, seconded by Specht to approve the minutes of the September 25, • 2007 meeting. All voted in favor. Motion carried. 4. Manager's report for Indian Knoll Manor Gino Businaro presented the managers report as follows: A. September bank statement B. Review of bills paid: MOTION by Osmek, seconded by Specht to approve payment of the bills from September 1, 2007 through October 18, 2007. All voted in favor. Motion carried. C. Manager's report -waiting for HUD approval on bid for fence for back area. Commissioner Beise arrived at 6:38 p.m. 5. Redevelopment Financing and Projects A. Transit District -Deck 1 Carlton Moore stated that the city encountered unexpected clean-up costs in the amount of $150,000. This was not identified during the preliminary investigation stage and was found during excavation/construction. "After the fact" funding is now being explored. No action is required from the Board at this time. B. Auditor's Road -Deck 2 1. Met Council Livable Communities Grant extension -Sarah Smith informed the HRA that according to the grant the project must be physically completed by June of 2008 unless an additional extension is granted. The extension request will include formal review by the Met Council. • 2. Estimated Financing Gap -John Dean explained that the disparity between the cost of the ramp and the grant award is $350,000. -1- HRA Minutes -October 23, 2007 3. Mound Harbor Renaissance Update -Dave Newman gave an overview of events since their last update. In August, Welsh Properties hired a new person to focus on entering into an agreement with a restaurant for Auditor's Road. Chris Kenelly of Welsh Properties informed the HRA that a letter of intent is forthcoming with a restaurant that would required 6,000-7,000 square feet, and the second parking deck is a big selling point to these restaurant prospects. C. Early Land Acquisitions Sarah Smith indicated that following the June 19th HRA meeting, the City has received proposals from two parties in Auditor's Road who are interested in early acquisition of their property. In addition staff has been in contact with two other owners along Auditor's Road regarding possible proposals. Terry Foster, representing the owners of the House of Moy, stated that they submitted a proposal and requested that staff sit down and figure out combinations that can work for land acquisitions. He requested a written response to their proposal. Hanus informed him that staff will work-with property owners on the options in an attempt to get to an action point. D. Next Steps - Osmek stated that according to the timeline on the project, they should be entering into Phase 3, and Phase 2 is not even started. He asked if there was any talk about looking at releasing the Langdon District. Dave Newman commented that it is safe to conclude that they won't be starting on time with Phase 3, and they do have to do a lot of analysis before they can respond to that. They will be meeting with city staff for these discussions. Staff considers the Deck 1 soil clean-up payment and grant extension for Deck 2 as the next priorities. 6. Adiourn MOTION by Osmek, seconded by Specht to adjourn at 7:16 p.m. All voted in favor. Motion carried. Chair Mark Hanus Attest: Bonnie Ritter, City Clerk -2- • MOUND HRA INDIAN KNOLL APARTMENTS PROPERTY MANAGER'S MONTHLY REPORT November 27, 2007 Manager's Agenda • October Bank Statement • August Income Statement • Review of bills paid • Managers Report • -3- WELLS FARGO BANK, N.A. RIDGEDALE OFFICE POST OFFICE BOX B 514 MINNEAPOLIS, MN 55479 Page 1 of 3 Account Number:.. Statement Period: - Image Count: 1120 CO300) 0~0-0033530 Oct 1, 2007- Oct 31, 2007 23 I~LI~~I~I~~~II~JL~~I~~L~~ILIL~~~LIL~~LI~~I~~JI~IL~I HOUSING ~ REDEVELOPMENT AUTHORITY SPECIAL ACCOUNT CITY OF MOUND FINANCE DIRECTOR 5341 MAYWOOD RD MOUND MN 55364-1627 !f you have any questions about this statement or your accounts, call: 800-225-5935 (1-800-CALL-WELLS). - --- YourAccounts at a Glance Account Beginning Deposits/ Withdrawals/ Ending Type. Balance Credits Debits Balance Basic Business Checking with Interest 25,983.49 23,328.94 -.30,486.81 98,825.62 000-0033530 News from. Wells fargo Announcing a change that .will affect ATM Cards and Check Cards when:used at non-Wells fargo ATMs in the Instant Cash network. This change will not impact functionality at Wells Fargo ATMs. Beginning 9/28/08 at selected instant-Cash ATMs, ATM/Check Cards wil! be able to access only.one primary checking and one primary savings account.This change will be rolled out at Instant Cash ATMs throughout`2008:-lf,you Nape any questions, please call us at the number fisted on your account statement. We appreciate your, business: and look forward to continuing to serve your financial needs. Basic Business Checking withJnterest 000-0033530 `" Housing & Redevelopment Authority. Special Account Sep 30 Beginning Balance 25,983.49 Oct 31 Ending Balance ?8,825.62 Deposits and Credits ----------------------------------------------------------------------------------------------------------------------- Posted _ -- Date Transaction Detail Amount Oct 03 Hud Treas 303 Misc Pay 100307 410962421860103 RMT"VV*099172437"`""""`hud Operating Fund MN0740 10,692.55 Oct 03 O t 11 Bank By Mail Deposit D it 133.32 c epos 3,354.00 Oct 91 Deposit 2,861.00 Oct'1 f Deposit 2,358.71 Oct 11 Deposit ' 1,948.00 Oct 24 Deposit 1, 977.75 Oct`31 Interest Payment . 3.61 Continued on next page -4- Page 2 of 3 ~ 1121 Housing & Redevelopment Authority Account Number: 000-0033530 Specia Account Statement End Dafe: 10/31/07 •hecks Paid ---------------------------------------- --------------- -------------------------------- ---------------------- Check # Date Amount Check # Date Amount r 2771 + Oct 10 2,325.29 2783 Ocf 15 5,582.37 2772 + Oct 10 68.20 2784 + Ocf 25 103.00 2773 ~ Oct 09 605.97 2785. Oct 24 2,403.00 2774 + Ocf 10 100.00 2786 Ocf 24 536.45 2775 Ocf 10 368.12 2787 Oct 24 196.23 2776 Ocf 02 1,317.45 2788 Oct 25 36.07 2777 Oct 09 113.16 2789 Ocf 25 47.92 2778 Ocf 05 150.00 2790 Ocf 24 49.00 2779 Oct 09 538.97 2791 Oct 24 275.87 2780 Ocf 12 934.59 2792 Ocf 26 1,713.98 2781 + Ocf 10 850.00 2793 + Ocf 22 2,171.17 2782 Oct 03 10,000.00 + Item converted fo substitute check Daily Balance Summary ------------------------ ---------------- ------------------------------- --------------------------- ---------------------- Date Balance Date Balance Sep 30 25,983.49 Oct 12 29,959.32 Oct 02 24,666.04 Oct 15 24,376.95 Oct 03 25,491.91 Oct 22 22,205.78 Oct 05 25,341.91 Ocf 24 20,722.98 Oct 09 24,083.81 Ocf 25 20,535.99 Oct 10 20,372.20 Ocf 26 18,822.01 Oct 19 30,893.91 Oct 31 18,825.62 Average Collected Balance . $ 23,556.71 ~ - Interest Summary --------------------------------- --------------- -------------------------------- --------------------------- --------------------- • Annual Percentage Yield Earned This Period 0.18% interest Earned During This Period 3.69 Year fo Date Interest and Bonuses Paid - 41.79 Thank you for banking with Wells Fargo. -5- ~ ~ ~ o N ~~ C~ ~ O C 2' C~~ C ~ ~ m [ter N '~1 D O C L . ~nm~a._ m m ~N~~A y O D ~ ~ a M 0 ~ w ~~ •fy ~. . ~ d' ~ ~~ ~. ~: O Y. ~% T i ;~ Q ~ Z Q '~. ......... 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MN 55364 As OF Austust 31, 2007 BALANCE SHEET :~ __ ~ i ASSETS 111101 -Cash General Fund 15,624.86 111700 - Petty Cash 100.00 112200 - Tenants Accounts Receivable 523.99 112900 - City of Mound 910.11 116200 - General Fund Investments 1,867.81 129000 - Deferred Charges (42 15) 140002 - Development Cost 1,505,904.64 140003 - Development Cost Contra (2,226,155.55) 140005 - Accumiated Depreciation (1,945,680.56) 140007 - Buildings 1,642,970.53 140008 - Fumiture,Equipment,Machines-Dwelling 33,551.61 140009 - Fumlture,Equipment,Machines-Admin 17,493.01 140016 - Land Improvements 22 640.04 140097 - Building Improvements 636,975.61 140055 - Mod Cost Complete 720,250.91 140095 -Mod Cost Uncomplete 125,456.37 150800 -Mod Cost Uncomplete Contra (36.803.001 TOTAL ASSETS 575.88 SURPLUS AND LIABILITIES 211400 - Tenants Security Deposits (9,483.00) 211410 -Tenants Pet Deposits (4,200.00) 211499 - Security Deposit Interest (494.52} 212900 - Notes Pay Levy Fund (50,000.00) 213400 - Accrued Utilities (2,502.21) 213700 - Payment in Lieu of Taxes (537.37) 213701 -PILOT Current Year (2,902.48) 280200 -Investments in Fixed Assets -Net (490,630.15) 280600 -Unrestricted Net Assets 58,282.57 Current Year Net Activity (13.121.07) TOTAL SURPLUS AND LIABILITIES ~., Mound, MN Public Hausinta 2020 Commerce Boulevard Mound, MN 55364 As Of August 31, 2007 Statement of Operating Receipts 8~ Expenditures 311000 - Dwelling Rental 312000 - Excess Utilities Total Rental Income VTD Over Current YTD Prorated (Under} Activi Balance Bud a Budget (10,906.13} (121,238.56) (117,910.87) 3,327.69 0.00 (637.00) (550.00) 87.00 (10,906.13) (121,875.56} (118,460.87) (3,414.89) 361000 - Investment Interest/Generat Funds (3.36) (44.78) (45.87) (1.09) 369000 - Other Income (65.00) {6,159.15} (3,$04.13) 2,355.02 802000 - Operating Subsidy (7,842.67) (78,384.35) _ (79,039.62) (655.27} Total Other Operating Receipts (7,911.03) (84,588.28) (82,889.82) (1,898.66) Total Receipts (18,817.16) ,(206,463.84) (201,350.49 (5,113.35) Expenses 411045 -Employee Benefits Administrative 0.00 0.00 6,306.63 (6,306.63) 411200 -Manager Payroll 2,390.00 28,278.00 26,950.00 1,328.00 413000 - Legal Expense 0.00 605.00 1,100.00 (495.00) 414000 - Staff Training 0.00 279.00 916.63 (637.63} 415000 - Travel 0.00 0.00 1,237.50 (1,237.50} 417000 - Accounting Fees 150.92 2,255.36 2,887.50 (632.14) 417100- Auditing Fees 0.00 5,000.00 6,875.00 (1,875.00) 419000 - Sundry-Administrative 847.20 14,070.45 12,677.50 1,392.95 419500 - Outside Management 850.00 8,500.00 9,350.00 (850.00) Total Administrative Expense 4,238.12 58,987.81 68,300.76 (9,392.95) 422000 - Tenant Services 0.00 0.00 550.00 (550.00) Total Tenant Services Expense 0.00 0.00 550.00 (550.00) 431000 - Water 324.57 2,800.37 2,750.00 50.37 432000 - Electricity 2,502.21 18,795.48 14,245.00 4,550.48 433000 - Gas 2,258.00 25,771.96 33,641.63 (7,869.67) 439000 - Other Utility Expense 1,082.58 12,668.08 10,963.37 1,704.71 439100 - Garbage Removal 318.46 3790.27 4,950.00 (1,159.73 Total Utilities Expense 6,485.82 83,826;18 66,550.00 (2,723.84) 441000 - Maintenance Labor 3,032.70 33,144.22 30,130.87 3,013.35 441045 -Employee Benefits Maintenance 0.00 0.00 7,113.37 (7,113.37) 442000 - Materials 1,097.88 6,430.86 7,150.00 (719.14) 443000 - Contract Costs 243.93 19,850.68 9,056.63 10,794.05 448000 -Protective Services 0.00 0.00 641.63 (641.63) Total Maintenance Expense 4,374.51 59,425.78 54,092.50 5,333.28 -g- '"`~" '~ ~ ~ Mound, MN Public Housinsi t~ 2020 Commerce Boulevard Mound. MN 55364 As Of ,e~'~ Austust 31, 2007 Statement of Operating Receipts & Expenditures ~,, ,:, ~` ~ YTD Over Current YTD Prorated (Under) `~ Activity Ba anc Budget Budget ~ 315.92 3,948.86 10,596.63 (6,647.77) 59000 - Insurance x}52000 - Pmts In Lieu Of Taxes 221.02 2,902.48 2,869.13 33.35 - ~400p _ Employee Benefit Contributions 853.40 059.57) (1 10,375.30 (1,105.57) 13,420.00 0.00 (3,044.70) (1,105.57) 7000 - Collection Loss ... #~ ! General Expense rot , 330.77 18,121.07 28,885.78 (10,784.88) " a ~~ ~ 15,429.22 188.360.80 218,378.02 (18,018.22) Total Routine Expense ~;, . 601000 - Prior Year Adjustments-Cash 0.00 (18.03) 0.00 (,18.03) E 0.00 (18.03) 0.00 (18.03) xpense 5r'Total Nonroutine '`Total Expense 15,429.22 198,342.77 218,379.02 (18,038.25) 3 -~~- INDIAN XNOLL MANOR 020 COI94ERCE BLVD ~~~ MN 55364 PAID INVOICES SORTED BY VENDOR FROM October 1, 2007 THROUGH October 31, 2007 November 19, 2007 PAGE: 1 VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE NUMBER NAME DATE DATE NUMBER 6 NUMBER AMOUNT TOTAL ---------------------------------------------------------------------------------------------------------------------------------- 3 PROGRAMMED MANAGEMENT CORP 10-10-2007 OCT2007 2789 S 703892 47.92 TOTAL PAID 47.92 47.92 6 WESTPORT PROPERTIES INC 10-01-200? OCT2007 2781 S 3EPT07 MGMT FSE 850.00 TOTAL PAID 850.00 897.92 7 WE$TPORT PROPERTI83 PAYROLL 10-28-2007 OCT2007 2795 S 10/31 2278.55 7 WESTPORT PROPERTIES PAYROLL 10-15-2007 OCT2007 2793 5 10/15 Payroll 2171.17 TOTAL PAID 4449.72 5347.64 20 %CEL ENERGY 10-10-2007 OCT2007 2792 S 51-6383341-8 Sep07 1713.98 TOTAL PAID 1713.98 7061.62 54 RENTAL RESEARCH SERVICES, INC.10-10-2007 OCT2007 2790 8 Y87232 8EPT07 49.00 TOTAL PAID 49.00 7110.62 56 CenterPOint Energy LO-10-2007 OCT2007 2785 S 5732031-9 SBPT07 596.00 56 CenterPOint 8nergy 10-10-2007 OCT2007 2785 9 5746120-4 6EPT07 1805.00 TOTAL PAID 2403.00 9513.62 ---------------------------------------------------------------------------------------------------------------------------------- 99 MINNESOTA ELEVATOR INC 10-10-2007 OCP2007 2787 S 125871 196.23 TOTAL PAID 196.23 9709.85 101 C NABER ariQ ASSOCIATES 10-SO-2007 OCT2007 2784 S SEPT07 ACCOUNTING 103.00 TOTAL PAID 103.00 9812.85 102 MOUND TRUE VALUE HARDWARE 10-10-2007 OCT2007 2788 S 39233 16.48 102 MOUND TRUE VALVE HARDWARE 10-10-2007 OCT2007 2788 S 39377 19.59 TOTAL PAID 36.07 9848.92 202 Hoeft Appliance Center SO-SO-2007 OCT2007 2786 S 96221 536.45 TOTAL PAID 536.45 10385.37 ---------------------------------------------------------------------------------------------------------------------------------- 90010 WASTE TECHNOLOGY INC 10-10-2007 OCT2007 2791 6 112537 OCT07 275.87 TOTAL FAID 275.87 10661.29 • _11_ INDIAN KNOLL MANOR 2020 COMMBRCE BLVD MOUND, MN 55364 PAID INVOICES SORTED HY VENDOR FROM October 1, 2007 THROUGH October 31, 200T November 19, 2007 PAGE: 2 VENDOR VENDOR CHECK ~ ACCTG CHECK M ~ INVOICE INVOICB CUMULATIVE NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL 90015 JESSICA SHEPHERD 10-15-2007 OCT2007 2794 S 10/D7 Petty Caeh 100.00 TOTAL PAID 100.00 10761.24 -1G- 5341 Maywood Road Mound, MN 55364 (952)472-3190 MEMORANDUM To: Mound Housing and Redevelopment Authority From: Mound Project Team Date: October 17, 2007 Re: Redevelopment Financing and Projects Summary. The following list is an overview of the current and upcoming projects associated with the City's redevelopment activities which require financing and should be taken into consideration with regard to proceeds which may be available from the Lost Lake dump bond refinancing currently under discussion. Additionally, as discussed at the June 19~' HRA meeting, the City has received proposals from two (2) parties in Auditor's Road who are interested in early acquisition of their property. I. Transit District /Deck 1 A. Bad Soil - $150,000 The City encountered unexpected clean-up costs in the Transit District during the construction of Deck 1. Members are advised that this issue was not identified during the preliminary investigation stage and was found during excavation/construction. Staff has contacted several agencies and "after the fact" grant funding is unlikely as the Metropolitan Council program does not have a "look back "provision and the project does not appear to score well under the funding criteria for the DEED cleanup program. HRA members are advised that staff is still pursuing a few possible leads, but in general, the discussion thus far has not been favorable. II. Auditor's Road /Deck 2 A. Livable Communities Grant Extension The timing of the Deck 2 project needs to be discussed due to the June 2008 deadline for completion of the parking structure which was provided $1.15M in Livable Communities grant funding. B. Estimated Financing Gap (Deck 2) - $350,000 C. MHR Update III. Early Acquisition of Property in Redevelopment Districts. Following the June 19"' HRA meeting, the City has received proposals from two (2) parties in Auditor's Road who are interested in early acquisition of their property. Additionally, Staff has been in contact with two (2) other owners along Auditor's Road regarding possible proposals. HRA members are advised that it is anticipated that the proposals will be assembled and included on the next available HRA meeting in November. ,~ ., IV. Next Steps No recommendation is offered at this time as Staff would like the HRA to have adequate time to review and consider the information provided. Members are advised that it is anticipated that the matter will be brought back to an upcoming meeting in November. At this time, Staff considers the following items to be top priority: A. Deck 1 soils cleanup -Transit District B. Deck 2 project -Auditor's Road District • Page 2