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HomeMy WebLinkAbout1998 06-23 CCM Special Meeting MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL MEETING JUNE 23, 1998 SHINGLE CREEK TOWER 6221 Shingle Creek Parkway CALL TO ORDER The Brooklyn Center City Council met for a special meeting at Shingle Creek Tower and was called to order by Mayor Myrna Kragness at 7:04 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, and Kay Lasman. Councilmember Robert Peppe was excused and absent. Also present: City Manager Michael J. McCauley, Community Development Director Brad Hoffinan, and Recording Secretary Maria Carlson. Mayor Kragness started the special meeting with introductions of the City Council, City staff, Mr. Boisclair with Boca Limited Partnership, and Kathy Kline from the Metropolitan Council Housing Authority. PUBLIC INPUT ON BOCA LIMITED PARTNERSHIP PROPOSAL REGARDING PURCHASE OF SHINGLE CREEK TOWERS Residents were given the opportunity to ask questions in regards to the purchase of Shingle Creek Towers from Mr. Boisclair. Ms. Kline spoke first in regards to the different types of vouchers that will be available and how they will work for the residents that are currently living in the building. She informed the residents that none of the information given tonight is final, and that when it is final, residents will be able to get more help with filling out the applications. Residents questioned as to how the vouchers will be figured and how long they will last. Ms. Kline reported that the vouchers will be based on 30% of the residents income, and will be for one year increments. Mayor Kragness requested the residents to ask any questions they had and they were as follows: 06/23/98 -1- ♦ What happens after one year is u Mr. Boisclair re lied that residents can reapply and pp Y P p PP Y that they will basically be guaranteed approval, unless the Government changes the funding. Ms. Kline reported that she has not seen very much changing in the funding for several years. ♦ Are there places that will not change to the new Section 8 Code? Ms. Kline replied that yes there are. ♦ What happens if a resident is already with the Section 8 Code? Ms. Kline replied that they may keep current or choose preservation voucher. ♦ What happens if a resident does not want to renew their voucher? Ms. Kline replied that there will be nothing holding the resident to do so. ♦ If Mr. Boisclair purchased the building will the residents need vouchers? Ms. Kline replied that yes, if Mr. Boisclair purchases the building, vouchers will be assigned to the residents. ♦ What are the bonds for? Mr. McCauley explained that the bonds are Housing Revenue Bonds. The City issues the bonds, but has no obligation or is not responsible for them. ♦ How long is the maturity of the bonds? Mr. Boisclair replied that they are 30 -35 year bonds. ♦ Councilmember Hilstrom had a few questions on the bonds. Can the Council set conditions on the terms? Mr. McCauley replied, generally they can. Will Mr. Boisclair be able to pay off the bonds early? Mr. McCauley replied that there will be a minimum period of time before they can pay off the bonds. What if someone takes over? Mr. McCauley replied that there will be specific terms and conditions and whoever takes over will have to abide by them. ♦ Councilmember Hilstrom questioned the age restriction of people living in the building. Mr. Boisclair replied that residents living in the building that are not seniors or disabled will be able to stay, but that new occupancy will be for senior and disabled persons. ♦ Why not stay with the 236 Code? Mr. Boisclair replied that the rent would just keep increasing because the project under 236 can't generate funds for needed repairs. 06/23/98 -2- ♦ Mr. Hoffinan asked Mr. Boisclair what year the building was built and if there was any motivation from the current owner to fix up the building. Mr. Boisclair replied that the building was built in 1973 and that the current owner has no intention of fixing it up. ♦ Councilmember Hilstrom questioned Mr. Boisclair how the $7.2 million was broken down. Mr. Boisclair replied that approximately $4.3 million is to purchase, $2.15 million is to fix up, and consultant and financing fees. ♦ Will there be any additional units added to the building? Mr. Boisclair replied that there will be no more additional units added, but there will be additional garage stalls added. ♦ Will residents have to pay electric bills on their own? New wiring will take place if Mr. Boisclair purchases the building and residents will get a separate bill. The total cost will be similar to current rent which includes electric. ♦ Councilmember Hilstrom questioned if residents will need a separate voucher for the cost of utility bills. Mr. Boisclair replied that it should not effect the voucher. ♦ Would cable be included in utility costs? Mr. Boisclair replied that cable hook -ups can be provided without charge, but it would be up to the residents to pay their cable bill. ♦ What will happen when a resident retires? Mr. Boisclair replied they will be able to reapply for a new voucher which will be adjusted to the new income. Overall, residents were in favor of Mr. Boisclair purchasing the building. Residents expressed their concerns about being afraid of hidden costs, and things changing in two years or so. Councilmember Hilstrom questioned the City's rights if the bond defaulted. Mr. McCauley explained that the bond will have specific terms, and if there was default on the bonds, it would not be the City's problem. The City could eventually sue if they had to. The last question asked for the evening was when would a decision be made. Mayor Kragness informed the residents that a motion could be made at this meeting. RESOLUTION NO. 98-112 Councilmember Carmody introduced the following resolution and moved its adoption under the following conditions: 1. Rent will not increase for one year. 2. If a resident has to move while building is under construction, it will be at Mr. Boisclair's expense. 06/23/98 -3- 3. Rent will not be increased more than the Consumer Price Index or 3% per year, whichever is lower for existing residents. 4. Current residents will be able to stay as tenants after purchased by Boca Limited Partnership as long as they desire and meet their obligations as tenants. 5. Cable hook -ups will be provided at no cost to the residents. (This does not include actual service.) RESOLUTION GIVING PRELIMINARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF BOCA LIMITED PARTNERSHIP, AUTHORIZING APPLICATION FOR ALLOCATION OF ISSUANCE AUTHORITY AND CALL PUBLIC HEARING The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman and upon vote being taken thereon, the following voted in favor thereof: Mayor Kragness, Councilmember Carmody and Lasman: and the following voted against the same: Councilmember Hilstrom. Motion passed. ADJOURNMENT The meeting adjourned at 8:25 p.m. City Clerk 4ayor 06/23/98 -4-