2013-05-28 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
i
MOUND HOUSING &REDEVELOPMENT AUTHORITY
REGULAR MEETING
TUESDAY, MAY 28, 2013 6:30 P.M.
MOUND CITY COUNCIL CHAMBERS
Page
Open meeting
2. Action approving agenda, with any amendments
3. Action approving May 14, 2013 regular meeting minutes
4. Action approving claims 2 -5
Discussion/staff direction on preliminary concept from Sand 6 -19
Companies for proposed redevelopment of 1861 Commerce
Boulevard for 42 -unit townhome workforce housing project
and request for letter of support for upcoming funding application
to Minnesota Housing Finance Agency (MHFA)
6. Adjourn
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
MAY 14, 2013
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met
in regular session on Tuesday, May 14, 2013, at 6:55 p.m. in the council chambers of city hall.
Members present: Chair Mark Hanus; Commissioners Kelli Gillispie, Heidi Gesch, Ray Salazar
and Mark Wegscheid
Members absent: None.
Others present: Executive Director Kandis Hanson, Fin Dir /Clerk/Treasurer Catherine Pausche,
Community Development Director Sarah Smith, Building Inspector Scott Qualley, Earl Zent,
Blaze Fugina, Megan Jones, Chris Remis, Ron Hamley, Keith Anderson, Ellen Lukin, Jim Byers
1. Open meeting
Chair Mark Hanus called the meeting to order at 6:57 p.m.
2. Approve agenda
MOTION by Salazar, seconded by Gillispie to approve the agenda. All voted in favor. Motion
carried.
3 Approve minutes
MOTION by Salazar, seconded by Gillispie, to approve the minutes of the April 23, 2013 regular
meeting. All voted in favor. Motion carried.
4. Approve claims
MOTION by Salazar, seconded by Gillispie to approve the claims in the amount of $20,419.13.
All voted in favor. Motion carried.
5. Approve Revised Annual Statement for 2011 Capital Fund Program
Pausche stated that $15,000 remains on the 2011 Capital Fund Grant and that HUD requires a
resolution from the HRA Board to change what the funds will be used for. The resolution
reflects allocating the remaining $15,000 to replacement of retaining walls on the property. The
original intent was to fund plumbing retrofits, but that will be incorporated into the unit upgrade
project.
MOTION by Salazar, seconded by Gesch approve the following resolution. All voted in favor.
Motion carried.
RESOLUTION 13 -05H: RESOLUTION APPROVING REVISED ANNUAL STATEMENT FOR
2011 CAPITAL FUND PROGRAM
6. Adiourn
MOTION by Salazar, seconded by Gillispie to adjourn at 7:01 p.m. All voted in favor. Motion
carried.
Catherine Pausche, Clerk
-1-
Chair Mark Hanus
DOLLAR
YEAR BATCH NAME AMOUNT
2013 0528COMBOND $2,473.68
052813HRA $1,086.06
TOTAL �
MOUND,MN
Payments
Current Period: May 2013
05/21/13 1:37 PM
Page i
Batch Name
0528COMBOND User Dollar Amt $2,473.68
Payments Computer Dollar Amt $2,473.68
$0.00 In Balance
1 COMMON BOND COMMUNITIES _
_Refer
Cash Payment
E 680 - 49800 -101 F T Empl Regular
PAYROLL REIMB 5 -17 -13 OFFICE SALARY
$1,009.71
Invoice 143751
5/17/2013
Cash Payment
E 680- 49800 -111 Other IKM Maint
PAYROLL REIMB 5 -17 -13 MCE SALARY
$689.40
Invoice 143753
5/17/2013
Cash Payment
E 680 - 49800 -122 FICA
PAYROLL REIMB 5 -17 -13 OFFICE & JANITOR
$121.36
ER TAX
Invoice 143754
5/17/2013
Cash Payment
E 680- 49800 -130 Employer Paid Ins (GEN
PAYROLL REIMB 5 -17 -13 MTCE ER TAX &
$261.51
INSURANCE
Invoice 143756
5/1712013
Cash Payment
E 680- 49800 -131 Employer Paid Health
PAYROLL REIMB 5 -17 -13 OFFICE ER
$105.37
INSURANCE
Invoice 143757
5/17/2013
Cash Payment
E 680 - 49800 -121 PERA
PAYROLL REIMB 5 -17 -13 OFFICE ER 401K
$35.59
MATCH
Invoice 143759
5/17/2013
Cash Payment
E 680- 49800 -103 Part-Time Employees
PAYROLL REIMB 5 -17 -13 JANITOR SALARY
$222.29
Invoice 143752
5/17/2013
Transaction Date
5/21/2013
Wells Fargo HRA 10120 Total
$2,445.23
Refer
2 C_OMMONBOND COMMUNITIES _
Cash Payment
E 680 - 49800 -430 Miscellaneous
AMERIPRIDE MT /CT UNIFORMS 4 -13 #6590
$28.45
Invoice 143822
5/17/2013
Transaction Date
5/21/2013
Wells Fargo HRA 10120 Total
$28.45
,...-
Fund Summary
10120 Wells Fargo HRA
680 HRA PUBLIC
HOUSING
$2,473.68
$2,473.68
Pre - Written Check $0.00
Checks to be Generated by the Computer $2,473.68
Total $2,473.68
-3-
MOUND, MN 05/23/139:45 AM
Page 1
Payments
Current Period: May 2013
Batch Name
052813HRA User Dollar Amt $1,086.06
Payments Computer Dollar Amt $1,086.06
$0.00 In Balance
Refer
2 ADAMS PEST CONTROL, INCORP _
Cash Payment
E 680 - 49800 -440 Other Contractual Servic PEST CONTROL SVC IKM 5 -8 -13
$63.48
Invoice 799144
5/8/2013
Transaction Date
5/22/2013
Wells Fargo HRA 10120 Total
$63.48
Refer
4 ALLIED WASTE
Cash Payment
E 680- 49800 -384 Refuse /Garbage Disposa
GARBAGE SERVICE MAY 2013 IKM
$232.14
Invoice 0894 - 003169539 4/25/2013
Transaction Date
5/1/2012
Wells Fargo HRA 10120 Total
$232.14
Refer
5 CUTTING EDGE PROPERTY MICE,
Cash Payment
E 680- 49800 -440 Other Contractual Servic PLOWING & ICE CONTROL -SALT PARKING
$186.00
LOT @ IKM 4 -23 -13
Invoice 31418
4/22/2013
Transaction Date
5/22/2013
Wells Fargo HRA 10120 Total
$186.00
Refer
1 FRONTIER/CITIZENS COMMUNICA
Cash Payment
E 680 - 49800 -321 Telephone & Cells
PHONE SERVICE IKM 5 -13 -13 THRU 6 -12 -13
$258.60
Invoice 05282013 5/13/2013
Transaction Date
5/1/2012
Wells Fargo HRA 10120 Total
$258.60
Refer
3 HD SUPPLY FACILITIES MAINTEN _
_
Cash Payment
E 680 - 49800 -220 Repair /Maint Supply
UNDERCABINET LIGHT FIXTURE #403
$56.26
Invoice 9121556540 4/812013
Cash Payment
E 680- 49800 -220 Repair /Maint Supply
WHITE TANK LID REPLACEMENT #111
$55.14
Invoice 9122034143
5/1/2013
Cash Payment
E 680- 49800 -210 Operating Supplies
ZEP STAINLESS STEEL CLEANER
$1144
Invoice 9122149752 5/7/2013
Transaction Date
5/22/2013
Wells Fargo HRA 10120 Total
$124.84
Refer
7 LEVEL ONE CORE LEASING SOLU
Cash Payment
E 680 -49800 -475 Tenant Related Services
MAY CALL CENTER MTCE PLAN & ROLL
$151.00
OVER PHONE NUMBER IKM
Invoice 0315617
511/2013
Transaction Date
5/9/2013
Wells Fargo HRA 10120 Total
$151.00
Refer
6 MINNESOTA LABOR INDUSTRY _
Cash Payment
E 680- 49800 -430 Miscellaneous
BOILER CERTIFICATION -IKM
$30.00
Invoice ABR00682811 5/2/2013
Transaction Date
4/16/2013
Wells Fargo HRA 10120 Total
$30.00
8 MULTIHOUSING CREDIT CONTRO
_Refer _
Cash Payment
E 680 - 49800 -475 Tenant Related Services
PROSPECTIVE IKM TENANT BACKGROUND
$40.00
CHECKS APRIL 2013
Invoice 13040356
4/30/2013
Transaction Date
5/9/2013
Wells Fargo HRA 10120 Total
$40.00
MOUND, MN 05/23/139:45 AM
Page 2
Payments
Current Period: May 2013
Fund Summary
10120 Wells Fargo HRA
680 HRA PUBLIC HOUSING $1,086.06
Pre - Written Check $0.00
Checks to be Generated by the Computer $1,086.06
Total $1,086.06
-5-
5341 Maywood Road
Mound, MN 55364
(952) 472 -0604
MEMORANDUM
TO: Mound Housing and Redevelopment Authority (HRA)
FROM: Sarah Smith, Community Development Director
DATE: May 22, 2013
SUBJECT: Discussion with Representatives of Sand Companies — Preliminary Concept for
Redevelopment of 1861 Commerce Boulevard and Request for Letter of Support
for Funding Request
ADDRESS: 1861 Commerce Boulevard
Summary
Representatives from Sand Companies will be present at the May 28, 2013 Mound Housing and
Redevelopment Authority meeting to present and discuss a preliminary concept for possible
reuse of the property located at 1861 Commerce Boulevard to include a proposed 2- story, 42-
unit townhome rental workforce housing project. This property is most commonly known as
the Anthony's Floral site.
Site Information
PID:
Zoning:
14- 117 -24 -14 -0004
14- 117 -24 -14 -0001
14- 117 -24 -14 -0003
B -2 General Business District
Comprehensive Plan The Comprehensive Plan guides the property for Medium
Density Residential with a density range of 7 to 12 units
per acre. Typical housing stock includes multi -unit
townhomes, four - plexes, and smaller scale apartments
and assisted living facilities. To minimize the potential
impacts of these medium density uses to single - family
neighborhoods, these uses are generally located along arterials
and collector streets.
02
Comments.
• Members of the HRA are advised that Sand Companies has not submitted a land use or
subdivision application. Therefore, the preliminary concept has not been reviewed
related to its conformity with the regulations in the City Code or comprehensive plan.
Rather, they are requesting informal discussion with the HRA and receiving feedback
about the concept of townhome use on the site. They are also interested in having a
discussion with the HRA about possible funding for a future project (i.e. fee waivers, the
establishment of a tax increment of a tax increment financing district, use of tax credits,
etc.) and the preparation of a letter of support for an upcoming funding application that
is due on June 18, 2013.
• The subject site is located within the Shoreland Area District as it is within 1,000 linear
feet of Dutch Lake. The shoreland regulations are contained in Sec. 129 -381 of the City
Code. Planned development areas are allowed in shoreland areas subject to the
provisions of Sec. 129 -195 as well as the additional provisions in Sec. 129 -387. These
include, but are not limited to, the City's procedures for determination of the site
suitable area and dwelling unit density evaluation.
• The ordinary high water mark for Dutch Lake is 939.2.
• The 100 -year floodplain for Dutch Lake is 940.0. The Regulatory Flood Protection
Elevation (RPFE) is 942.00. With the exception of the RPFE, activities related to work
within the floodplain are the responsibility of the Minnehaha Creek Watershed District
(MCWD).
• The City of Mound is the Local Governmental Unit per the Wetland Conservation Act
(WCA) and is responsibility for wetland boundary determination. The MCWD is
responsible for all other permitting activities related to wetlands.
• With regard to the Comprehensive Plan Future Land Use Category of Medium Density
Residential, those zoning districts that re consistent based on allowable use and density
are R -1A, R -2, R -3 and R -3 PDA.
• Sec. 129 -99 of the City Code includes the allowable uses in residential districts.
Townhomes are allowed by conditional uses in the R -3 District.
• Staff had hoped to forward the preliminary concept to the Planning Commission for
informal discussion at its 5 -21 special meeting. However, the materials were received
on 5 -16 which included a letter from the bank which currently owns 1 of the parcels
indicating that they will take ownership of the 2 other parcels after the expiration of the
redemption period which is May 27, 2013. Staff was notable to confirm whether or
not review could take place in advance of the expiration of redemption period which
involves 2 of the subject parcels and therefore did not include the preliminary concept
and request on the Planning Commission's May 21st special meeting agenda. The HRA
is advised that Staff confirmed with the City Attorney that informal review is
acceptable.
-7-
• While not required, Staff forwarded copy of the May 28th HRA agenda to property
owners within 350 feet in Mound as a courtesy to inform them of the HRA's informal
discussion with Sand Companies. Also, a copy of the HRA agenda was also mailed to a
resident in the Dutch Lake neighborhood who was involved in the 2002 proposed
rezoning and comprehensive plan discussion for the subject site.
• If the HRA desires input from the Planning Commission before its preliminary discussion
for the purpose of providing feedback, the HRA, at its option, may remand the request
from Sand Companies to the Planning Commission for discussion at its June 4 1 meeting.
May 16, 2013
Sent Via E -Mail Transmission
Ms. Sarah Smith
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
RE: Proposed Development at 1361 Commerce Boulevard.
Mound, Minnesota.
Dear Ms. Smith,
t'.'tt "�ti ;5:i nC4C0I4l�?2711it::+.Ci?i7t
P: (3'0)- 11l2 - "tfx,
F: ("(1) "'02-1) a.ly
Sand Companies, Inc. is proposing to develop a rental workforce housing community on the
three parcels at 1361 Commerce Boulevard. We are working with the contract land owner,
Great Southern Bank, on purchasing the site.
Financing for our proposed townhome development will include funding from the
Minnesota Housing Finance Agency. The application for the annual funding cycle is June 18,
2013. In advance of our application, we request the opportunity to meet with the Planning
Commission and City Council to present our development proposal and concept plans.
One of our goals with the meetings is to obtain feedback from the City on our concept and
have an understanding if the there is a desire to rezone the property in the future if our
project moves forward. The other goal is to obtain a letter of support from the City Council
for our application. As we have discussed with you, the funding application through the
state is very competitive and a key for selection is local participation. We will provide you
with letters of support we have received from other communities for reference. With this
local participation, it opens up some other funding sources for the development including
Livable Communities funding from the Met Council.
For the upcoming meetings, we will prepare a presentation for the City that will include a
detailed overview of the project and be available to answer any questions. We appreciate
the opportunity to work with the City of Mound. Thank you.
Sincerely,
Sand Companies, Inc.
Jamie J. Thelen
Chief Executive Officer
Sand Companies, Inc.
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May 13, 20113
City of Mound
Attn: Sarah Smith, Community Development Director
5341 Maywood Road
Mound, MN 55364
Re: Property located at 1361 Commerce Blvd, Mound, MN
Ms. Smith:
Great Southern Bank is currently in negotiations with SCI Associates, LLC represented by Sand
Companies, Inc. for site control of 1. 861 Commerce Blvd in Mound, MN. Great Southern Bank currently
owns property identification parcel number 14- 117 -24 -74 -0004 and property identification parcel
numbers 14- 117- 24- 14 -O001 and 14- 17.7- 24 -5.4 -0003 are in redemptions period expiring on May 26.
Great Southern Bank plans to take possession on May 27 once the redemption period expires. Great
Southern Bank is unable to finalize a letter of intent or purchase agreement until the redemption period
has passed and an appraisal nas been complete, but to accommodate a tax credit development
application, Great Southern Bank authorizes SO Associates, LtC and Sand Companies, Inc. to speak with
the City of Mound regarding a proposed development, specifically discussing financial support from the
City and concept plan design, on above referenced properties.
Sincerel ,�' t
are MH it or
Special ?,Aset. Officer
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<.§ 800A)Ivv� ,, t.e;.T'arti.. ss, t-`,f? ti.rx' I RO, Mapaki i; +ta, {_:4Ti�T NCO! 161 s(? `i t;'t Si3ri i' {iilrt
May-'15,2011
Minnesota housing Finance Agencv
444 Sibley Sueet, Suite .340
` t. 1'sim, Minnesota 55101
Attenliow IMultiiamily Underwriting
Rh1 Tax Credit Application & Super RFP Funding.
MAPLE VILLAGE fl, MAPLE" 6ROVL,
Dcaar Muldl'llmily D volopn1c]w
The City of Tvl aple Grove is pleased chat you are considering finding another affordable
rental housing devrc1opi tcaat in our community, Maple Eirove continues to have a
relatively Healthy growth environment in commercial and industrial development which
natuiulty involves corresponding job gru -wlh, We have a great desire for a rnoe (d'
housim,, e)pporlunities, espociallj affordable rental housing 'for employees of our local
bilsinesscs.
We have supported the Livable CU73 ?munitics .Act since it-, inception and with the tli:st
phase of Maple Pillage, the City waived approximately M7377 in development Ines.
'Cra 'further promote and paartacipate in rental housing opportunities, in the past The t'iiy
past has provided incentives I'm- affordable housing developments. '1 fie City h<as recently
approved a 25% reduction iat the Park t>edicatian Fee for affordable developments. J his
reduces the pea• unit tee from S5.4S5 to $4,441. This would mean that Mapic Vill=al;e If
would Ie ei }e is total flee ivouction ixf approximately 65.47`? hoscei on 48 vr,it,
Besides financial assistance, the City has also allow =ed flexibility in same development
standards as incentives for affordable housing devclopanents. The two phases al' Maple
Village have received full zoning approvals through the use 0' a Planned unit
Development (PUD). The PUD allowed the development to get approved with zoning
tlrvil?ilhies. Niaple Village 11 is located on as lot that is 1,81 acres which equates to 26
Limns Im acru Which is well above the zoning standard of the City's higliest zoning
district.
I tie City confirms that all raairasmicture, which include sewer, water, eleirtricity and
natural gas, liar the site are complctc.
-12-
This €undo senwrnt is based upon the findi
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chael
315E Linder,gveni NE m St Michael, MN 55376 . (763) 197,2049 a Fax (763) 497 -530
.tune 9, 2009
Minnesota Housing Finance .agency
400 Sibley Street, Suite 300
St. Paul, Minnesota 55101
Attention: Multifamily Underwriting
RE: Housing Tax Credit Program & Super'RFP
CORNERSTONE VILLAGE — ST. MICHAEL
Clear Multifamily development;
The City of St. Michael is a community made up ofresidents, businesses and institutions
sharing a common history. One of the primary purposes of a community is to serve as a
place of residence for its citizens. Assuming this charge, offering a mix of life - cycle
housing opportunities becomes a challenge for local governments, especially in suburban
markets.
The City's Comprehensive Plan sets goals and policies emphasizing the establishment of
a diverse housing stock, maintaining existing housing units, increasing rental housing
opportunities and utilizing housing assistance. Developers and the City must be partners
to cooperatively develop housing plans to provide workforce housing in St. Michael.
The City of St. Michael proposes significant local financial assistance for the Cornerstone
Village project as part of its participation and endorsement. If the project is selected for
funding, the City Council will sell the project site to the development for $1.00. A 2008
appraisal by Na
gell Appraisal & Consulting valued the property at $245,000. Can top of
this, the City is willing to waive approximately $148,970 in local development fees such
as local SACY WAC and trunk infrastructure. The City will be fronting these casts and
preliminary estimates indicate that they can be recaptured over tithe through a tai
increment financing district, The actual reduction in fees will be based on final tax
inerement projections when the project is finalized.
The City has also provided off-site storrawater ponding for the site. Not only does this
allow the entire site to be utilized, but it saves initial development costs and long -term
maintenance expenses for the owner.
-14-
Along with its financial endorsement of Cornerstone Village, the City is supportive of
offering flexibilit y in site development standards and zoning code requirements. A
concept plan was reviewed mud accepted by the City Council on May 26, 2004 with
flexibility in zoning standards including density, set -back reductions, building height and
parking. If the project is selected, this flexibility will be accomplished through a Planned
Unit Development (PUD). The City is also willing to streamline the process so that
preliminary and final plans can be approved in one step, instead of two, saving at least l-
2 monnths of process time.
The proposed 42 unit development is an excellent opportunity for the City of St Michael
to meet a large portion of its housing goals and help redevelop its downtown. This
endorsement is based upon the findings that file project will meet Iocally identified
housing needs and that the proposed housing is in short supply in the Local housing
market. This need is evidenced by the gap between the local supply and demand for the
proposed type ofhousing.
The City Council's endorsement is evidenced by this letter of support for the proposed
development. We respectively request funding approval for this needed development in
the City of St, Michael.
Sincerely.
ferry Zac nran
Honorable Mayor
City of St. Michael
-15-
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lwu hq plan; n, hr v iuc life ,:1 do hotr�ait;r in flviaxr'rth.
It proatcvte and palicipale in ri €nal h(Yuc' T o pvr#uttitics, qre City has provided incentives for tal'liad bit
housing aievei,apmnenks its ;a cwt reduet ou measu c fir endorse West Vii% l skalcs, if' the pr, ject is
«h efrd fiir iiaulirr,x tita t'tit uiEl f�'ry ide the pre jc :rt cviat. a dcattit� bon as- Ile, in o in',, .in lo,t
v ack pmWilins and appo w al. Ile fat, trill also make 0.000 in Joni dutielopniew fees and $2,007 in
local kVAC vla irgc4.
be t 3t3 417y taunt also Latino ; ,ieriitscamt 1Yicai finmichl colinibuthins thr {his prilmy as li,arl or its
particilimisma and oubsesiaent. I! the pr,oj"l is sclucied W hindAg. Me Ch) ('ouncil and the. PbA"wili
ICousbag and Redev efopnicral Authoriti, supports the Ilse ta%, increment tiimKing CUM fits Hie pro "I Or
othe funding rueas;s to acSiieve ill) tc, StrCitS, I00 in assistxance_
In ct3ciit =axl in vY inuili a i,orrknr n$'Inc• ii<;>i.iarlatncnt tares arcs providing iiaan aul asssStancc to flat pirle,a,
the,1 %inciath IIRA mill cianm1 no err Prvlj-et -Based Sec tiun S Vouches to tier pT icet Ii'r a Period of lcit
y'c ars.
Ile I'i.i(ivae, dery cicTmcm is trig cw dent opp,irnina; A the City « f 113Innuth W nmeer a pink+ iN 19.;
ko uni stoa3s. .l his endo wine r 6 hared upma A findings that the Ill Lied will nicc?t loc,,all) idolthicd
-18-
., Anwar .
hoar. ng ucod, and Oan We pnTowd ImAng is W Am qWpb in TU 1r,Gi11 IWU_iKna M FLT l 'I ln TICei is
cNi&nced by the gap NAstcn fl2c local supply and dunaild for tll: ploIN)svd t5pk: +ofhoosing,
the Q) CNAInCH's and be PY nunall HRA's cndor>trtn In is o idelwed thk lellol oftinppon lol the
jwkTwQd MchTmem. M reolwaQ ivpwqt huding appmal lol this mded doJopmon in the
Q of pyrimulb
k,
he 1 lonorablt: KcIli Slw ik
la} or, cite of lll� mouth
AT
Sincuel).
Chair, PI)mouth I I R A