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2016-07-12 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. AGENDA MOUND HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING TUESDAY, JULY 129 2016 6:55 P.M. MOUND CITY COUNCIL CHAMBERS Page 1. Opening the meeting 2. Action approving agenda, with any amendments 3. Action approving minutes: June 28, 2016 regular meeting 1-3 Action approving payment of claims 4-6 5. Adjourn June 28, 2016 The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in regular session on Tuesday, June 28, 2016, at 6:45 p.m. in the Council chambers of the Centennial Building. Members present: Chair Mark Wegscheid, Kelli Gillispie, Heidi Gesch, Ray Salazar, and Jennifer Peterson Members absent: none Others present: City Manager and Public Works Director Eric Hoversten, Community Development Director Sarah Smith, Director of Finance and Administrative Services Catherine Pausche, City Attorney Melissa Manderschied, Administrative Assistant Mary Mackres, and Consultant Planner Rita Trapp Public Present: Nicole Brodzik, Pat Gorman, Ellen Gomoll, Aubrie Gould, Tina Gubrud, Chris Carlson, Pat Brickley, Phil Velsor, Blake Hopkins, Larry Prinz, Sam Hirsch 1. Open meeting Chair Mark Wegscheid called the meeting to order at 6:45 p.m. 2. Approve agenda MOTION by Salazar, seconded by Gesch, to approve the agenda. All voted in favor. Motion carried. 3. Action approving minutes: June 14, 2016 regular meeting MOTION by Salazar, seconded by Gesch, to approve minutes from June 14, 2016 regular meeting. All voted in favor: Motion carried. 4. Approve claims MOTION by Salazar, seconded by Gesch, to approve the claims in the amount of $3,882.81. All voted in favor. Motion carried. 5. Catherine Pausche, Director of Finance and Administrative Services, summarizing the results of the TIF analysis of TIF District 1-3 Mound Harbor Redevelopment prepared by Ehlers Financial Advisors Catherine Pausche presented results of a study conducted by Ehlers on the Mound Harbor TIF District, stating that the study addressed two scenarios: 1) what if no further development happens except for what has been done to date and what is currently in process? and; 2) what additional development would need to take place in order to pay the City back for interfund loans? Per Pausche, in scenario one, if there is no new development, the TIF bond debt service will require $453K from the Lost Lake slip revenue and $3.685M from the tax levy through 2031. Pausche noted that the Lost Lake slips were paid for by developer, not the dock fund, and cost approximately $500K, so it is reasonable for the dock fund to contribute as well as the general tax base due to the amount of public improvements that were made with the old dump clean-up, Lost Lake dredge, and removal of blighted properties. Pausche said that for scenario two, Ehlers estimates $27.756M of additional development would be needed to repay the interfund loans, which would most realistically equate to about 180 housing units and approximately 6,000 square feet of commercial -1- HRA Minutes—June 28, 2016 space. Pausche added that since the recession, commercial growth has lagged behind residential growth. Pausche asked for discussion and guidance from HRA Commissioners. Wegscheid said that he and Gillispie have been on the committee discussing development opportunities in the Harbor District. Hoversten mentioned that in his discussions with potential developers, those developers have shown only casual interest in developing commercial and a restaurant on the site, with greater emphasis on rental housing. Hoversten added there may need to be an adjustment in the community's long range goals to match market conditions. Wegscheid said that developers seem to have hit road blocks with being able to purchase the remaining private properties. Wegscheid also questioned the impact of another large project with all the development already going on in the area, i.e., Indian Knoll Manor, the new school building, the Trident project and others in discussion. Wegscheid felt that by trying to force development, the City may be living in a gravel pit for the next four years and that by waiting, a more suitable project for the long term goals may come along. Wegscheid suggested the City allow the other development plans to take place and see if they have any impact on other projects that may be considered for the Harbor District. Wegscheid feels that in 5-6 years, things will be different, and these new amenities may draw developers to the Harbor District site with projects that the community desires. Wegscheid asked if the HRA wants to set a housing number for the Harbor District now or is there another avenue the HRA could take? Wegscheid commented that another hold up could be the private property owners and their lack of interest in selling and options may have to be explored with that as well. Wegscheid suggested a developer could just do a restaurant now and focus on the other piece later as it seems that developers don't want to do it all. Wegscheid thinks it is time to regroup on the vision for the area and stated success is often not a result of what you've done, but what you don't do. Salazar stated that the Harbor District is the crown jewel of Mound. Salazar agreed with Wegscheid that the City should wait for now and take the time to do it right, noting there are lots of projects going on now and things are changing rapidly. Salazar said the City has done its due diligence and he does not believe the City needs 184 apartments, but perhaps a smaller number with possibly a restaurant. Peterson said she would like to get feedback from developers who had already expressed an interest in the site and said she doesn't want to be seen as turning developers away. Wegscheid feels that developers find their niche and they usually don't want to do both a restaurant and a housing project. Wegscheid suggests the City be more selective as there is a responsibility to do the wisest thing. Gesch sees that there are other things going around the area and doesn't feel that slowing down on this development would be a bad thing, noting that four or five years ago there weren't any projects going on in the City. Gesch said the City's needs may be different as the town develops. Gillispie said she does not want to close the door and suggests communications with potential developers be kept open. Gillispie also agreed that the City does not need to jump at the first offer because with the development going on around the area, including in Minnetrista, Mound may gain more leverage in time. IN HRA Minutes—June 28, 2016 Gesch asked if there is a deadline for development. Wegscheid said it seems developers don't want to buy the private properties. Gesch asked if the City has always had the desire to develop the whole project at one time. Pausche says the area would appear fragmented without the whole area being developed and may look incomplete with the older buildings in place. Pausche also stated that there is really no deadline for additional development with regard to the existing TIF because the City met the requirements and will be paying the bonds through 2031. Wegscheid asked if the City should try to look for developers to just do a restaurant. Gillispie said she got the impression from developers that there needed to be a bigger project and not just a restaurant. Wegscheid stated that it sounds like the direction to Staff is that it is an acceptable option to wait for the right development project for the Harbor District, but that Staff should continue to meet with all prospective developers. 6. Adjourn MOTION by Gesch, seconded by Salazar, to adjourn at 7:08 p.m. All voted in favor. Motion carried. Attest: Catherine Pausche, Clerk -3- Chair Mark Wegscheid DOLLA TOTAL,4614pulll A $9,671.13 - lm CITY OF MOUND 07/06/16 10:44 AM Page 1 Payments Current Period: July 2016 b Batch Name 071216HRA User Dollar Amt $9,671.13 Payments Computer Dollar Amt $9,671.13 $0.00 In Balance Refer 4 CENTERPOINT ENERGY (M/NNEG _ Cash Payment E 680-49800-383 Gas Utilities GAS SERVICE 4-19-16 THRU 5-19-16 IKM $1,041.00 Invoice 071216 6/22/2016 Cash Payment E 680-49800-383 Gas Utilities GAS SERVICE 3-18-16 THRU 4-18-16 IKM $1,041.00 Invoice 071216 6/22/2016 Transaction Date 3/1/2016 Wells Fargo HRA 10120 Total $2,082.00 Refer 6 INDIAN KNOLL MANOR Cash Payment E 680-49800-322 Postage MOUND POST OFFICE- STAMPS $49.00 Invoice 071216 6/23/2015 Cash Payment E 680-49800-210 Operating Supplies WALGREENS FRAME- 8 X 10 BLACK $10.72 Invoice 071216 8/6/2015 Cash Payment E 680-49800-210 Operating Supplies PERRY'S TRUCK REPAIR TUBING-IKM $28.97 Invoice 071216 6/5/2015 Cash Payment E 680-49800-430 Miscellaneous PETTY CASH WRITE OFF- INDIAN KNOLL $9.29 MANOR Invoice 071216 7/5/2016 Transaction Date 7/6/2016 Wells Fargo HRA 10120 Total $97.98 Refer 5 KENNEDY AND GRAVEN Cash Payment E 680-49800-304 Legal Fees INDIAN KNOLL MANOR SALE- CUP ZONING $348.50 LEGAL SVCS THRU MAY 31, 2016 Invoice 132246 6/30/2016 Transaction Date 7/6/2016 Wells Fargo HRA 10120 Total $348.50 Refer 1 MOUND, CITY OF _ Cash Payment E 680-49800-382 Water Utilities WATER SVC 5-2-16 THRU 6-1-16 IKM $2,423.08 Invoice 07122016 6/20/2016 Transaction Date 7/5/2016 Wells Fargo HRA 10120 Total $2,423.08 Refer 2 NS/1 MECHANICAL CONTRACTING, Cash Payment E 680-49800-440 Other Contractual Servic PREVENTATIVE MTCE AGREEMENT 2016 $1,597.00 3RD QTR JULY 2016 THRU SEPTEMBER 2016 Invoice C004605 6/23/2016 Transaction Date 7/1/2016 Wells Fargo HRA 10120 Total $1,597.00 Refer 3 PRIME PROPERTY SVCS, INC. Cash Payment E 680-49800-440 Other Contractual Servic JUNE 2016 TWICE WEEKLY CLEANING- IKM $729.17 Invoice 55 6/24/2016 Transaction Date 7/1/2016 Wells Fargo HRA 10120 Total $729.17 Refer 7 XCEL ENERGY _ Cash Payment E 680-49800-381 Electric Utilities ELECTRIC SVC 5-24-16 THRU 6-25-16 IKM $2,393.40 Invoice 506667226 6/27/2016 Transaction Date 7/6/2016 Wells Fargo HRA 10120 Total $2,393.40 In CITY OF MOUND 07/06/16 10:44 AM Page 2 Payments Current Period: July 2016 Fund Summary 10120 Wells Fargo HRA 680 HRA PUBLIC HOUSING $9,671.13 $9,671.13 Pre -Written Checks $0.00 Checks to be Generated by the Computer $9,671.13 Total $9,671.13 1 19