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HomeMy WebLinkAboutHousing & Redevelopment Authority - Minutes - 03/19/2024HOUSING AND REDEVELOPMENT AUTHORITY OTTERTAIL COUNTY -MINNESOTA The Otter Tail County HRA Board of Commissioners Met for a regular meeting on March 19, 2024 at 11 :45am At the Otter Tail County Government Services Center Board Members Present: Wayne Johnson, Chairperson Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Absent -Jeff Ackerson Others Present: 515 W Fir Ave, Fergus Falls, MN Amy Baldwin, OTC HRA Executive Director Tanya Westra, OTC HRA Housing Program Supervisor Julie Bakken, OTC HRA Accounting Specialist Paula Grunewald, OTC HRA Administrative Assistant 1. CALL TO ORDER Chairperson Wayne Johnson called the meeting to order at 11 :46am. 2. APPROVAL OF AGE.NOA Government Services Center 500 West Fir Avenue Fergus falls. MN 56537 Motion made by Kurt Mortenson, second by Lee Rogness to approve the March 19, 2024 Agenda without changes. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Lee Rogness, second by Kurt Mortenson to approve the Consent Agenda. Motion passed unanimously. 4. NEW BUSINESS A. Resolution No. 278 Approving a Purchase and Development Agreement With the City of Dalton Executive Director, Amy Baldwin stated that there will be a number of items related to the North Fields project that will be discussed. The Purchase and Development Agreement has been drafted with the City of Dalton for a purchase price of $1 . Approval will be contingent on the Board of Commissioners approving financing assistance and use of 2023 State Affordable Housing Aid at its March 26 meeting. Motion made by Kurt Mortenson, second by Betty Murphy to approve. Motion passed unanimously. B. Resolution No. 279 Authorizing Execution of Project Financing Assistance Agreement with Otter Tail County Executive Director, Amy Baldwin presented the North Fields of Dalton Development Budget The budget is in the amount of $1,664,221 which includes a project contingency of $180,000. The sources of funding includes County's financing assistance, in the amount of $850,000, which will be repaid over 20 years at 2% interest. The annual payment amount will be $51 ,983.21 and repaid by a levy allocation. This financial assistance has been in discussion for the past 10 months. 218-998·8730 ® OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ otterta1lcounty.gov LIVE YOUR be,t life HERE. ----------------..----7 The commissioners asked about having an excessive reserve and making prepayment to the County's financing assistance as project revenue permits. Encumbered funds was discussed and that.this would be an obligation for both HRA and the County Boards to be aware of during budget discussions into the future. Motion made by Lee Rogness, second by Kurt Mortenson to approve, subject to the County Board's approval of the agreement on March 26, 2024. Motion passed unanimously. Additional discussion included: how revenue will be used for maintenance; that an annual budget be established; principal balance should be paid as soon as possible, and length of ownership. Executive Director, Amy Baldwin reported that based on the Affordable Housing Program that was approved last June the HRA must have ownership for 20 years to maintain term, state sources, local flexibility and affordable component. C. Resolution No. 280 Authorizing Transfer of Funds for North Fields of Dalton Executive Director, Amy Baldwin reported that shewould like authorization to transfer $545,550 of HRA General Funds and $125,000 from the HRA Rent Rehab bank account for Nort.h Fields of Dalton. Motion made by Betty Murphy, second by Lee Rogness to approve. Motion passed unanimously. Commissioners asked what the balance is in Rent Rehab account. HRA Housing Program Supervisor, Tanya Westra, reported that there was approximately $320,000. • D. Resolution No. 281 Authorizing Execution of Construction Contracts North Fields of Dalton Authorization is needed to provide prepared contracts to the four contractors. A follow-up from February's Board Meeting, Housing Program Supervisor, Tanya Westra, presented a siding comparison between 'vinyl" and 'LP SmartSide with ExpertFinish" from Project Manager, Mitch Harry. After review of specifications and warranty, staff recommends the application of vinyl siding. The warranty is the same, but LP SmartSide would need to be painted every 5 to 10 years. The four accepted bids for the North Fields of Dalton project are: Modular Construction Northstar System $761,576 Onsite Carpentry Novelty Construction LLC $216,061 Excavating Leith Excavating $61,870 Concrete Novelty Construction LLC $157,510 Mechanical and Plumbing Novelty Construction LLC $115,519 Electrical Ohren Electric $59,800 Ohren Electric EV Charger wiring $400 Total construction base plus electric vehicle charger wiring $1,372,736 Motion made by Kurt Mortenson, second by Lee Rogness to approve, pending approval offinancing by the Otter Tail County Board of Commissioners on March 26, 2024 and the Purchase and Development Agreement by the City of Dalton on April 2, 2024. Motion passed unanimously. E. Resolution No. 282 Authorizing Creation of North Fields of Dalton LLC Executive Director, Amy Baldwin requested the Board's approval to create a Limited Liability Company (LLC). She stated that the name of this resolution should be changed to "Authorizing Creation of LLC to own and operate projects such as North Fields of Dalton as well as future HRA owned housing projects". The Executive Director has discussed LLC's with legal counsel. They suggested assigning the construction contract to the LLC as a means to create a liability shield during construction; the funds, provided by the County and the HRA to finance the project, should be transferred to LLC when there is an invoice to pay and not before; and the LLC should retain appropriate property and general commercial liability insurance, If authorized, staff would Pg.2 bring necessary documents to the Board at a future meeting for its consideration. Motion made by Betty Murphy, second by Kurt Mortenson to approve. Motion passed unanimously. F. Resolution No. 283 Committing Leverage Funds for the Pelican Rapids Small Cities Development Program Grant Application Project Manager, Mitch Harry, has been working with Pelican Rapids on SCDP applications. The full application due on April 17, 2024 will seek funds totaling $1,075,260. These monies will help to rehabilitate 17 owner occupied projects with a maximum of $25,000 each and 10 commercial projects with maximum of $40,000 each. Pelican Rapids has pledged in kind donations for staff time and waiving permit fees for both commercial and owner-occupied projects. Danielle at the city has done this type of work before. Historically, the HRA has budgeted $70,000 per year to this activity under the Residential Owner-Occupied Leverage Program. This year there would be (17) $7,000 maximum per household (Owner Occupied Projects = $119,000) with 0% interest, repaid at time of sale or refinance of existing mortgage and secured with a lien on the property. It is recommended that the Board commits to make available leverage funds not to exceed $119.000 over the duration of the Pelican Rapids Small Cities Development Program Grant (2024-2026). This commitment will allow the Executive Director to submit a letter of support with the full application. Tanya Westra, HRA Housing Program Supervisor, also noted that we would be closing SCDP in Battle Lake and Underwood. Motion made by Lee Rogness, second by Betty Murphy to approve. Motion passed unanimously. 5. EXECUTIVE DIRECTOR REPORT Executive Director. Amy Baldwin reported • We are monitoring legislative activity -MN NAHRO is monitoring a number of HRA related items. • Barbara Dacy is on contract to help with support. • Kevin Currie will be done in April. • Staff is accessing what is needed from a capacity perspective going forward, particularly around property management as the HRA's housing portfolio expands. 6. GENERAL DISCUSSION -TOPICS BY COMMISSIONERS For the North Fields of Dalton Project: • Lee Rogness said he knows of a water/sewer contractor that he will reach out to contact Dalton's City Clerk. • Review of plumbing permits submitted to the State of MN are taking approximately 3 months. • Construction to be completed by end of November 2024, and ready for occupancy shortly after. 7. ADJOURNMENT At 1 :00 pm a motion was unanimously carried to adjourn the meeting. --=- Secretary/Clerk Pg. 3