2016-10-25 HRA Meeting MinutesILYAEel IJ.117:[911R.]1 'Cc7_\.I774b7AVZWi1ajjI yr_\IIII d W0111CA
October 25, 2016
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in
regular session on Tuesday, October 25, 2016, at 6:50 p.m. in the council chambers of the Centennial
Building.
Members present: Chair Mark Wegscheid, Kelli Gillispie, Ray Salazar, Heidi Gesch, and Jennifer
Peterson
Members absent: none
Others present: City Manager and Public Works Director Eric Hoversten, Administrative Assistant Mary
Mackres, Community Development Director Sarah Smith, and Director of Finance and Administrative
Services Catherine Pausche
Public Present: Nicole Brodzik, Aubrie Gould, Megan Lachenmayer, Blake Hopkins, Jan Callison,
George Linkert, Andrew Whitmore, Ariel Crawford, Noah Brammer, Kari Johnson, Neil Schmalz, Grant
Sterne, Katie Priercz, Shane Wiskos, Calvin Christenson, Alex Otteson, and Bobby Kohman
1. Open meeting
Chair Mark Wegscheid called the meeting to order at 6:53 p.m.
2. Approve agenda
Hoversten added item 7.1, requesting action on the resolution approving amendment to the early
start agreement for Indian Knoll Manor (IKM).
MOTION by Salazar, seconded by Gesch, to approve the agenda as amended.
All voted in favor. Motion carried.
3. Action approving minutes: October 11, 2016 regular meeting
MOTION by Salazar, seconded by Gesch, to approve minutes from October 11, 2016
regular meeting. Salazar, Gesch, Wegscheid, and Gillispie voted in favor, Peterson abstained.
Motion carried.
4. Approve claims
MOTION by Salazar, seconded by Gesch, to approve the claims in the amount of $1,379.93.
All voted in favor. Motion carried.
5.
Catherine Pausche presented a series of actions which will be the final actions to facilitate transfer
of Indian Knoll Manor (IKM) to Aeon and the IKM Limited Partnership. Pausche stated the
City/HRA has performed a series of actions and invited residents to neighborhood meetings to
comment but hasn't held an official posted public hearing. She added that tonight's public hearing
is in order to take comments from anyone who would like to weigh in on the matter of the sale of
IKM. Pausche said the HRA will proceed with considering the loan agreement between the HRA
and the IKM Limited Partnership which correlates to the purchase agreement that has already been
approved. She stated that the appraised value of IKM is $2,120,000, which is the amount reflected
on the purchase agreement. The loan for the same amount as the purchase price allows for the
equity in IKM to be quantified, but reinvests the amount in the property to make improvements.
HRA Minutes — October 25, 2016
Pausche added that the City does not anticipate that this loan will ever be paid off and acts like a
lien on the property to insure improvements are made and that the building remains affordable.
Pausche stated the Council will move on to formal actions to clarify where the HRA is at with HUD
after consideration of the loan agreement.
Pausche said IKM was the only public housing in the City and the City will no longer be a public
housing authority in the eyes of HUD after Aeon takes over. She added that Westonka Estates
(operated by Common Bond Communities) is a project -based Section 8 which IKM will become. A
resolution to end the City's contract with HUD says that the City is no longer a public housing
authority and the HUD operating funds for IKM will move, per the agreement, to Aeon.
Pausche stated there is also a request to amend the early start agreement (ESA) that was
approved at the last meeting. She said the City will need to amend the ESA because Aeon also
wants to begin the demo on Spruce to avoid extra costs associated with winter conditions.
Pausche added that this work will begin on October 31 and staff is comfortable moving forward.
Pausche stated Aeon is responsible for all related permits related to the work on the Spruce
property and the City, per the ESA, will allow Aeon right of entry onto the property so that Aeon can
begin improvements before the November 21" closing date.
Wegscheid wanted to make sure that all insurances are in place. Pausche stated the City/HRA are
named as additional insured and that the loan is a lien on the property to make sure improvements
take place and the property remains affordable. Pausche also noted all documents have been
vetted by the City/HRA attorney.
Mayor Wegscheid opened the Public Hearing at 7:02 p.m. and upon receiving no comment,
closed the Public Hearing at 7:02 p.m.
6. Catherine Pausche, Director of Finance and Administrative Services, requesting action on a
resolution to approve a loan agreement between the Mound HRA and IKM Limited
Partnership
FA
Requested action:
Approve resolution to approve a loan agreement between the Mound HRA and IKM Limited
Partnership
MOTION by Salazar, seconded by Gesch, to approve the resolution. All voted in favor. Motion
carried.
RESOLUTION NO. 16-11 H: RESOLUTION APROVING THE SALE OF LAND TO AND LHON
AGREEMENT WITH IKM LIMITED PARTNERSHIP
HRXs status as a Public Housing Authority (PHA) within HUD
Requested action:
Approve resolution ending the Annual Contributions Contract (ACC) with HUD and dissolving
the HRA's status as a Public Housing Authority (PHA) within HUD
MOTION by Salazar, seconded by Peterson, to approve the resolution. All voted in favor. Motion
carried.
HRA Minutes —October 25, 2016
RESOLUTION NO. 16-12H: RESOLUTION ENDING THE ANNUAL CONTRIBUTIONS
CONTRACT (ACC) WITH HUD AND DISSOLVING THE HRA'S STATUS AS A PUBLIC
HOUSING AUTHORITY WITHIN HUD
7.1 (added) Action on resolution approving amendment to early start agreement for Indian Knoll
Manor (IKM)
Requested action:
Approve resolution approving amendment to early start agreement regarding Indian Knoll Manor
MOTION by Salazar, seconded by Peterson, to approve the resolution. All voted in favor. Motion
carried.
RESOLUTION NO. 16-13H: RESOLUTION APPROVING AMENDMENT TO EARLY START
AGREEMENT REGARDING INDIAN KNOLL MANOR
8. Adiiourn
MOTION by Gesch, seconded by Salazar, to adjourn at 7:04 p.m. All voted in favor. Motion
carried.
t pr-.__ l
Chair Mark Wegscheid
Attest: Catherine Pausche, Clerk