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HomeMy WebLinkAbout1993 04-12 EDAM Special Session MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION APRIL 12, 1993 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 9:08 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, Community Development Specialist Tom Bublitz, City Attorney Charlie LeFevere, and Council Secretary Carla Wirth. APPROVAL OF MINUTES MARCH 22. 1993 SPECIAL SESSION Commissioner Rosene requested the following corrections to the March 22, 1993, EDA minutes: Page 2, eighth paragraph, "President Paulson asked what the approximate cost would be for an aDDraisal." Page 3, first paragraph, "Commissioner Rosene asked the Community Development Specialist to contact Vern Ausen at the Brooklyn Center Historical Society about the property at 5500 Emerson Avenue North." There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to approve the minutes of the March 22, 1993, EDA meeting as amended. The motion passed unanimously. RESOLUTIONS The City Manager presented a Resolution Designating Depositories of EDA Funds. He explained the EDA adopts a resolution each year which designates the banks which are authorized as depositories. He further explained this resolution also identifies the EDA Treasurer and Assistant Treasurer. 4/12/93 1 RESOLUTION NO. 93 -08 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kalligher, and the motion passed unanimously. The City Manager presented a Resolution Authorizing Submittal of an Application for Funding Under the Minnesota City Participation Program (MCPP). The Community Development Specialist explained this mortgage program is offered through the Minnesota Housing Finance Agency (MHFA) for first -time home buyers. He said Brooklyn Center and 36 other Minnesota cities participated in this program in 1992 which offered first -time home buyers a 7.10% low interest rate on their mortgages. He further stated Brooklyn Center provided 34 separate home mortgage loans for a total of $2,361,690. He added all unused mortgage allotments as of December 23, 1992, were transferred into a statewide pool. The Community Development Specialist informed the EDA in order to apply for the program in 1993, they must submit an application which identifies local housing needs relative to the program. He said the City must also submit a proposal deposit equal to 1% of its requested allocation. He further explained this deposit will be returned in full upon the sale of the mortgage revenue bonds. He clarified there is no direct cost to the City to participate in this program except for staff time which is significant the first few weeks of the program. He added another cost would be to place advertisements in the newspaper, if desired. Commissioner Mann questioned the maximum limit of funding the City can apply for. The Community Development Specialist responded the maximum amount is $4,000,000, or 20% of the bond authority available for mortgage revenue bonds after the first Monday in April, whichever is less. He added this year the State has asked cities to make their request more reasonable. He recommended the City request $3 million in funding which he felt was realistic and can be justified. Commissioner Mann asked how the program is advertised. The Community Development Specialist responded last year they used the City's newsletter and newspaper advertisements. He added the program was also promoted by local banks and realtors. Commissioner Kalligher asked if there was a maximum loan amount. The Community Development Specialist stated the average loan was over $69,000. He said the maximum house price the State allows is $85,000 for an existing house and $95,000 for new construction. He added last year the prices ranged from $50,000 to over $80,000. 4/12/93 -2- The Community Development Specialist informed the EDA the mortgage revenue bonds may not be issued as the legal authority for such issuance expired as of June 30, 1992, and a tax bill authorizing their issuance has not yet been passed by Congress and signed by the President. He explained the MFHA is monitoring this and hopefully it will be passed this spring. Commissioner Scott commented she often stops and talks with new residents in Brooklyn Center and found many were helped by this first -time home buyers program. She added they have indicated they "shopped" the communities before purchasing their house. She pointed out some of the homes purchased through this program several years ago are now being improved with additions, etc. which improves the housing stock in the City. RESOLUTION NO. 93 -09 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene, and the motion passed unanimously. The City Manager introduced a Resolution Approving Specifications and Authorizing Advertisement for Bids for Demolition of 6715, 6717, 6719, and 6721 Humboldt Avenue North. The Community Development Specialist recommended several minor changes to the EDA Instructions to Bidders and Specifications for Site Demolition. He suggested the Property Insurance, Builder's Risk provision on page eight be eliminated, and the Completion Date on page nine be changed to June 18, 1993, to assure adequate time. On page ten, he suggested Section Q be reworded to allow the potential for partial payments on a monthly basis. He felt allowing this option may enhance the bidding process. President Paulson suggested an appropriate ceremony be scheduled. Commissioner Rosene suggested this be addressed during the Pre Construction Meeting. RESOLUTION NO. 93 -10 Commissioner Kalligher introduced the following resolution, as amended, and moved its adoption: RESOLUTION APPROVING SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR DEMOLITION OF 6715, 6717, 6719, AND 6721 HUMBOLDT AVENUE NORTH The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene, and the motion passed unanimously. 4/12/93 -3- The City Manager introduced a Resolution Approving Guidelines for Rental to Owner Conversion Program. The Community Development Specialist explained this program was approved in concept by the Council at its February 22, 1993, meeting. He continued since the EDA is the implementing body for the program, he recommended approval of the resolution. He further explained if approved, staff will begin implementing the program by conducting an informational meeting with non homestead, single family property owners in the identified target area in the southeast neighborhood. President Paulson indicated support of the provision to donate services instead of just handing out a grant. He asked if there is a foreclosure process if this provision is not completed. The City Attorney explained the details on what type of security would be required have not been worked out yet. The Community Development Specialist added in order to keep the program as simple as possible, the City would ask buyers to sign a document indicating their intent to stay in the house for five years. He reported other programs of this type have had success with this kind of arrangement rather than some form of repayment agreement. He added a representative working with St. Paul's program indicated the community service aspect has not been a problem to enforce, and the City has contacted the Northwest Hennepin Human Services Council regarding the community service aspect of the program. RESOLUTION NO. 93 -11 Commissioner Mann introduced the following resolution and moved its adoption: RESOLUTION APPROVING GUIDELINES FOR RENTAL TO OWNER CONVERSION PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Scott, and the motion passed unanimously. The City Manager introduced a Resolution Approving Two (2) Brooklyn Center Economic Development Authority Grants (File Nos. H -111 [8037] and H -112 [8038]). RESOLUTION NO. 93 -12 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING TWO (2) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANTS (FILE NOS. H -111 [8037] AND H -112 [8038]) The motion for the adoption of the foregoing resolution was duly seconded by .Commissioner Rosene. 4/12/93 -4- Commissioner Rosene asked if a previous grant was received by one of the applicants. The Community Development Specialist responded affirmatively. He explained a policy has never been established to limit the number of grants to one per household. He stated the matter was reviewed by the Housing Commission who said the owner was entitled to a- second grant if it was for work not covered by the first grant. He clarified staff does work with every grant to assure it is not duplicate work. Commissioner Scott to ed s t she has brought this concern up in the past but in this case the owner is an elderly person and the repairs are of a life safety nature. In response to President Paulson's question, the Community Development Specialist indicated there is a waiting list for this program of approximately 65, and the City only funds ten to twelve projects per year. President Paulson asked if staff considers the market value of the property compared to the amount of grant being applied for. The Community Development Specialist responded formal appraisals are not done. He added the program is currently being conducted on a first -come, first -served basis. Commissioner Scott commented she felt it was a matter of balancing urgent repairs versus updating the people want done. The Community Development Specialist agreed and added life safety repairs are moved up on the list. President Paulson asked if the EDA should consider adopting a policy that life safety repairs must be present to consider a second grant request for the same property. The Community Development Specialist clarified if this were done, the property under discussion would still qualify because the proposed repairs involve a furnace, q fy ce cal work and correcting P ct a P P g as g valve problem. President Paulson stated while he does not want to rule out second grants, he does feel a life safety issue should be present or an appraisal of the property be done to determine whether the second grant should be approved. Commissioner Kalligher asked why appraisals are not being done. The Community Development Specialist responded this is a difficult situation because the program deals with improving a property but in some cases it is somewhat of a social services program since providing the improvement oftentimes allows the elderly owner to remain in the house. The City Manager added the Building Inspector is involved and indicates if there is an obvious situation where the house is beyond improvement. The Community Development Specialist commented on the fact most of the improvement work is done inside the house (furnace, wiring, water heater, etc.) and not visible to the neighborhood; however, one recent grant was used for vinyl siding which improved the outward appearance tremendously. He pointed out siding is one of the lowest priority areas, and estimated 8510 of the grants are done in the Southeast Neighborhood area. 4/12/93 -5- President Paulson suggested the Housing Commission be asked to look at establishing a policy to address second grant requests as well as establishing a priority listing for improvements. The motion passed unanimously. There was a motion by President Paulson and seconded by Commissioner Mann to direct the Housing Commission to examine and draft a policy regulating second time grant recipients as well as internal versus external upgrading priorities. Commissioner Scott indicated support of the motion as long as an applicant is not prohibited from receiving a life safety repair to the property. The motion passed unanimously. DISCUSSION ITEM BROOKLYN CENTER REALTORS DAY The Community Development Specialist reported on the Realtors Day which is being planned along with the Chamber of Commerce for Wednesday, May 5, 1993, at the Earle Brown Heritage Center. He continued the purpose of the event is to familiarize local realtors with as many aspects of the City as possible. He reported this event has been approved to qualify for six hours of continuing education. Commissioner Rosene asked if the event will also address the needs of realtors and how the City can work with them to meet those needs; i.e., how the City's Sign Ordinance affects realtor's signs. The Community Development Specialist responded in working with the Chamber of Commerce, they decided to keep the topics more general and informational. The City Manager suggested he address the sign issue during his presentation. Commissioner Scott commented the agenda is on a very tight time schedule and asked how it was established. The Community Development Specialist agreed about the scheduling and explained it is a tentative agenda. Commissioner Scott stated this is an excellent program, but she does not feel the proposed time schedule is realistic. The Community Development Specialist indicated they could eliminate the tour of the Civic Center to allow more time. Commissioner Rosene stated there are things the City can do to help realtors sell homes, and realtors have indicated they would like to work with the City to accomplish this. He asked if a committee should be formed so realtors feel they have benefitted from this seminar. The City Manager stated the City can indicate at the event that they are interested in working with realtors to form this type of committee. He added staff feels the Realtors Day should be an annual event so a group established now could become the planners for the next event. 4/12/93 -6- The Community Development Specialist informed the EDA the event must be consumer oriented to qualify for continuing education credits. He agreed with EDAs suggestion to have a follow -up session at the end of the event to ask realtors for their suggestions. Commissioner Scott suggested staff also provide realtors with a map showing the School District boundaries. The EDA agreed. ADJOURNMENT There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:08 p.m. Todd Paulson, President Recorded and transcribed by: Carla Wirth TimeSaver Off Site Secretarial 4/12/93 -7-