11-18-2003 HRAMHutchinson Housing & Redevelopment Authority
Regular Board Meeting — November 18, 2003
Minutes
1. CALL TO ORDER: Vice Chairman Thor Skeie called the meeting to order. Members
Present: Duane Hoversten, Ian McDonald, and Becky Felling. Staff Present: Jean Ward, and
Judy Flemming. Guests: Ken Merrill, Julie Wischnack & Lisa McClure
2. MINUTES OF HRA BOARD MEETING ON OCTOBER 21, 2003
Ian McDonald moved to approve the Minutes as written. Duane Hoversten seconded and the
motion carried unanimously.
3. UPDATE ON REDEVEOPMENT OF DOWNTOWN HOUSING
Ken Merrill reviewed with the Board a handout that explained Tax Increment Financing. He
also went through an example of how TIF could be used for a housing project.
Jean Ward and Julie Wischnack reported to the Board on their meeting with Tom McElveen,
President of Hans Hagen Homes. Jean also gave the Board a Memo that outlined what they
learned about redevelopment from Tom - a developer's perspective. They will also contact
another developer.
Julie also informed the board that she found out the parking lots in the block north of Park
Towers has no strings attached to the titles. The parking lots could be turned into housing;
however she feels that it would not be a very popular project with the public.
4. FINANCIAL REPORTS
Duane Hoversten moved to approve the City Center Financials. Ian McDonald seconded and
the motion carried unanimously.
Ian McDonald moved to approve the Park Towers Financials. Duane Hoversten seconded and
the motion carried unanimously.
Jean Ward asked the Board approve an additional check to repay a security deposit that
needed to be paid before the next Board Meeting. Becky Felling moved to approve the check
to repay the security deposit. Ian McDonald seconded and the motion carried unanimously.
5. PARK TOWERS
Jean Ward reviewed with the Board the 2003 Park Towers Budget Revision #2 Memo.
Duane Hoversten moved to approve Resolution #03 -14 Operating Budget Revision. Becky
Felling seconded and the motion carried unanimously.
Jean Ward told the Board of the Termination of Lease Notice given by Augustana Homes for
the Senior Dining Program. Nutrition Services, Inc will be taking over the program and is
willing to continue the contract with Park Towers. Jean stated one change in the contract she
would like to make would be to change the termination period from 30 days to 60 days. The
City Attorney, Marc Sebora will be reviewing the same contract for the Senior Center.
Becky Felling moved to approve the contract contingent to Mark reviewing the contract and
giving his ok. Duane Hoversten seconded and the motion carried unanimously.
Jean also updated the Board on the progress of the resident Rent Recertification. All the
recertifications should be done by the end of this month, so a 30 day notice can be given to
the residents. The new rents will be effective in January 2004.
Because Park Towers is classified as a High performer, assessments to HUD need only be
submitted every other year now. Only the financials need to be submitted annually.
6. REVIEW OF SUB -PRIME UNDERWRITING GUIDELINES
Jean Ward reviewed with the Board the process undertaken to establish the sub -prime
guidelines. Ian McDonald moved to approve the sub -prime underwriting guidelines. Duane
Hoversten seconded and the motion carried unanimously.
7. SCHOOL CONSTRUCTION UPDATE
Judy Flemming updated the Board on the progress of the house on Harmony Lane. It looks
like the concrete /foundation will be a little over budget, but some of the materials use to brace
the foundation will be used in the framing of the home.
The following are some of the options that Jean has been working on for a lot for the
2004/2005 School Year:
1. Habitat for Humanity Lots
2. 533 Hassan Street — Infill Lot
3. Other Developments: Rolling Meadows East, Scenic Homes — Island View Heights
6t', & other new developments
There is a house and detached, 2 1/2 stall garage on the lot on Hassan Street. The current
owner is planning on demolishing the house and has not yet decided if the garage will be
demolished too.
to] 907_41W432MOall TA X43 UL10211 go] 0Z01TA2111[OMTAOINSON i IffffKal -01 112 l91a�:
Judy Flemming showed a power point presentation of the walk through of Gateway Central
Apartments. Also Judy and Jean reviewed the memo describing all the issues of rehabbing
the apartment building. The prospective buyer has the list of information needed to apply for
a rehab loan.
9. CONSIDERATION FOR APPROVAL OF SUBORDINATION REQUEST FOR AN ADAM
STREET NEIGHBORHOOD LOAN #8670
The loan review committee recommended approving the subordination request. Duane
Hoversten moved to approve the subordination request for an Adam Street Neighborhood
Loan #8670. Becky Felling seconded and the motion carried unanimously.
10. FRANKLIN -GROVE NEIGHBORHOOD PROJECT UPDATE
Judy Flemming told the board that five or six projects should be done this year and two or
three will be in process.
The loan review committee recommended approving the Franklin -Grove Neighborhood
SCDP Loans #8680 -07. Ian McDonald moved to approve the Franklin -Grove Neighborhood
SCDP Loans #8680 -07. Duane Hoversten seconded and the motion carried unanimously.
11. RESIGNATION OF JOHN HOULE (DECEMBER 1, 2004) /ELECTION OF NEW
CHAIRMAN AND DESIGNATION OF A NEW LOAN REVIEW COMMITTEE
MEMBER
Duane Hoversten moved to nominate Ian McDonald as the new Chairman of the HRA Board.
Becky Felling seconded and the motion carried unanimously.
Becky Felling moved to nominate Ian McDonald for the HRA Loan Review Committee.
Duane Hoversten seconded and the motion carried unanimously.
The Board talked about a new HRA Board member. Jean Ward said that John Houle did
recommend a person from 3M. Ian McDonald also had a recommendation. Jean said that the
Board members should have anyone that they wanted on the Board to call her. At the next
Board meeting a person will be selected and a recommendation can be given to the City
Council.
12. CONSIDERATION OF STEP INCREASE FOR EXECUTIVE DIRECTOR
Ian McDonald moved to approve the step increase for the Executive Director. Becky Felling
seconded and the motion carried unanimously.
13. ADJOURNMENT
Ian McDonald moved to adjourn. Becky Felling seconded. There being no other business,
Vice Chairman Thor Skeie declared the meeting adjourned.
The next meeting will start at 7 AM and then the HRA Board and Staff will go to Country
Kitchen.
Recorded by Jean Ward, HRA Executive Director
Becky Felling, Secretary /Treasurer