2017-05-23 HRA Meeting MinutesMay 23, 2017
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in
regular session on Tuesday, May 23, 2017, at 6:45 p.m. in the council chambers of the Centennial
Building.
Members present: Chair Mark Wegscheid, Commissioners Ray Salazar, Jeff Bergquist, Kelli Gillispie,
and Jennifer Peterson
Members absent: none
Others present: City Manager and Director of Public Works Eric Hoversten, Director of Finance and
Administrative Services Catherine Pausche, Community Development Director Sarah Smith,
Administrative Assistant Mary Mackres, and Field Officer Stewart Simon, Roger Fink, James Lehnhoff,
Quinn Pausche, Clinton and Emily Suisse, and Nicole Brodzik
1. Open meeting
Chair Mark Wegscheid called the meeting to order at 6:45 p.m.
2. Approve agenda
Hoversten noted on Items 4-6, James Lehnhoff will be presenting instead of Stacie Kvilvang.
MOTION by Salazar, seconded by Gillispie, to approve the agenda as amended. All voted in favor.
Motion carried.
3. Approve minutes
MOTION by Salazar, seconded by Bergquist, to approve the minutes of the April 11, 2017
regular meeting. All voted in favor. Motion carried.
4. Stacie Kvilvang from Ehlers requesting consideration and action on resolution
recommending proposed modification to the Redevelopment Plan for the Mound Harbor
Project Area and establishment of the Harrison Bay Senior Housing TIF District
James Lehnhoff from Ehlers and Associates, addressed the HRA by saying there are three actions
facilitating the proposed Harrison Bay housing project which need to be approved separately.
Lehnhoff said these actions are still contingent upon a public hearing and approval at the City
Council meeting tonight.
Lehnhoff stated the first action is the proposed resolution to modify the redevelopment plan for the
Mound Harbor Project Area and then establish the Harrison Bay Senior Housing TIF District.
Lehnhoff added the first part expands the existing Mound Harbor project to the north to include
three parcels that aren't currently in that project area. Lehnhoff said the resolution also creates the
new housing TIF district with a maximum term of up to 26 years which includes an affordability
requirement. Lehnhoff said this means 20% of the apartments must be affordable to households
with incomes at or below 50% of area median income.
Lehnhoff said the Planning Commission reviewed the TIF plan on May 2 and recommended
approval and noted that the City has completed all notification requirements under state statutes.
Ehlers and the City's legal counsel have also reviewed and found the plan to be in conformance
with state statutes.
MOTION by Salazar, seconded by Gillispie to approve the resolution. All voted in favor. Motion
carried.
HRA Minutes— May 23, 2017
RESOLUTION NO. 17-06H: RESOLUTION ADOPTING A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR THE MOUND HARBOR PROJECT AREA; AND ESTABLISHING
THE HARRISON BAY SENIOR HOUSING TAX INCREMENT FINANCING DISTRICT THEREIN,
AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR.
5. Action to approve Resolution Authorizing an Interfund Loan for Advance of Certain Costs in
Connection with the Harrison Bay Senior Living Housing Tax Increment Financing District
Lehnhoff presented information regarding the interfund loan and said due to the creation of the TIF
District, it is expected that the developer will always reimburse the City for the cost of creating that
district. Lehnhoff added that if any costs are incurred between now and when increments start to
be received, or there are unexpected costs related to administration items, this resolution allows the
HRA to be reimbursed for those costs. Lehnhoff said this approval protects the City and allows
those costs to be reimbursed up to $10,000 and with an interest rate of 4%.
Motion by Salazar, seconded by Gillispie to approve the resolution. All voted in favor. Motion
carried.
RESOLUTION NO. 17-07H: RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE HARRISON BAY SENIOR
HOUSING TAX INCREMENT FINANCING DISTRICT
6. Stacie Kvilvang from Ehlers requesting action on a resolution approving a Contract for
Private Development with Harrison Bay Senior Living LLC for the construction of a 72 -unit
senior rental facility, contingent upon City Council approval of establishment of the TIF
District
Lehnhoff presented information regarding the contract for private development which details what
exactly will happen with the project. Lehnhoff stated the Harrison Bay project is for 72 units, with
20% of those units remaining affordable to keep the TIF district intact. Lehnhoff added the subsidy
for affordability would be provided for 15 years, with the amount of financial assistance to go no
higher than $930,000 which will be reimbursed through the pay-as-you-go TIF during the first 10
years. Lehnhoff added the development agreement contains the stipulation that the project must
start no later than 12/31/17. Lehnhoff spoke with the developer who says they anticipate starting in
6-8 weeks and the project is expected to be completed within a year.
Gillispie asked when the project would be complete. Lehnhoff said the developer expects the
project to be complete in one year, but the development agreement says the project must finished
by the end of 2019.
MOTION by Salazar, seconded by Peterson to approve resolution. All voted in favor. Motion
carried.
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7. Adiourn
MOTION by Peterson, seconded by Bergquist, to adjourn at 6:55 p.m. All voted in favor.
Motion carried.
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Attest: Catherine Pausche, Clerk
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Chair Mark Wegscheid