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HomeMy WebLinkAboutHousing & Redevelopment Authority - Minutes - 09/22/2022OTTER TAIL COUNTY I HOUSING The Otter Tail County HRA Board of Commissioners Met for a regular meeting on September 22, 2022 at 2:30 pm At the Otter Tail County Government Services Center Board Members Present: Wayne Johnson, Chairperson Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Others Present: 500 W Fir Ave, Fergus Falls, MN Barbara Dacy, OTC HRA Executive Director Paula Grunewald, OTC HRA Administrative Assistant Amy Baldwin, OTC CDA Director Tanya Westra, OTC HRA Project Manager Kevin Currie, OTC HRA Construction Specialist Julie Bakken, OTC HRA Accounting Specialist with Eric Hanson, High School Intern Kris Vipond, OTC Assistant Finance Director Brian Opsahl, Brady Martz & Associates, P.C. Richard Bullard, City of Battle Lake Mayor 1. CALL TO ORDER Chairperson Johnson called the meeting to order at 2:31 p.m. 2. APPROVAL OF AGENDA Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 Motion made by Mortenson, second by Rogness to approve the September 22, 2022 Agenda without changes. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Rogness, second by Murphy to approve the Consent Agenda. Motion passed unanimously. 4. PRESENTATION - 2021 AUDIT, BRIAN OPSAHL, BRADY MARTZ & ASSOCIATES, P.C., GRAND FORKS, ND Brian Opsahl, Brady Martz & Associates, P.C., presented an overview of the 2021 audit of the Otter Tail County Housing and Redevelopment Authority. Mr. Opsahl stated that Brady Martz identified two findings in the areas of Preparation of Financial Statements and Proposition of Journal Entries. He stated that there were no difficulties, procedures were followed, and a thank you was given to the HRA staff, as well as to the Brady Martz staff. The Board expressed its appreciation to the auditor and to the county accounting staff. Motion made by Rogness, second by Mortenson to accept the 2021 Audit from Brady Martz. Motion passed unanimously. 218-998-8730 ® OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ ottertailcountymn.us LIVE YOU R best l(fe H E RE. 5. NEW BUSINESS A. Resolution No. 206 Awarding the Bid for the Hidden Meadows Construction Project: Authorizing Execution of Construction Contract. Director Dacy presented the information and timeline on the Hidden Meadows Project. She stated that the project includes four transactions: HRA uses MHFA funding to pay the home builder for houses; the homebuyer pays HRA and current landowner for the new homes; the city pays TIF to current landowner; HRA repays MHFA loan with sale proceeds. The bid process was discussed with Phase 1 to include a 2 BR home and 3 BR home. After Phase 1 homes are sold, Phase 2 includes a second 2 BR home to be built. Phase 2 for a third house would be a change order to the contract and subject to agreements with the current landowner and the City of Battle Lake. The project was advertised in the Daily Journal, published on the OTC HRA website and phone calls from Kevin Currie, HRA Construction Specialist, made to nine local builders. One bid was submitted from High Point Homes. Their bid was $697,500 which reflects a funding deficit of $35,100 for phase 1. Ms. Dacy stated that Developer fees will be applied to cover the phase 1 deficit, and to Phase 2 for a total of $58,400. The Board discussed the purpose of the developer fee. Ms. Dacy stated that typically the purpose of the Developer Fee is to reimburse a developer for time, costs, and risk pertaining to the project. Mr. Currie stated that as the developer the HRA takes risk, and in this case, the risk is a higher cost, and the developer fee will cover it. Battle Lake Mayor Bullard questioned the costs of the lots and TIF financing. Dacy, responded that the Developer will receive $9,644/lot and TIF goes to the current landowner. Mayor Bullard questioned if they would sell. Dacy responded that there is demand in Battle Lake, with a strong school district, and people are seeking one level homes and homes for their families. Bullard also said recently that 3 or 4 residents have pu rchased homes in Fergus Falls because of the lack of these type of homes in Battle Lake. Motion made by Mortenson, second by Murphy to approve Resolution No. 206 as submitted from legal counsel. Motion passed unanimously. B. Resolution No. 207 Authorizing Execution of the Shortfall Agreement with the City of Battle Lake Ms. Dacy presented an overview of the Shortfall Agreement. She stated she presented the Agreement to the City of Battle Lake at its September 13, 2022 City Council meeting. Ms. Dacy stated that the purpose of the agreement is to document the terms and conditions of repaying a remaining principal balance of the Interim Financing Loan from Minnesota Housing. She stated that the City of Battle Lake and HRA will share equally the remaining principal balance of Interim Financing loan of $750,000, if any, which would be due by June 1, 2024. The two- phase plan minimizes the risk of an outstanding balance. Motion made by Murphy, second by Rogness to approve Resolution No. 207. Motion passed unanimously. C. Resolution No. 208 Authorizing Acceptance of Contractor Compliance Monitoring Inc. Proposal for Prevailing Wage Compliance for the Hidden Meadows Project Ms. Dacy stated that Minnesota Housing programs require that state prevailing wages be used for construction projects. She stated that two proposals were received , with Contractor Compliance Monitoring lnc.(CCMI) submitting the lowest responsible bid, not to exceed $10,000. Motion made by Murphy, second by Mortenson to approve Resolution No. 208. Motion passed unanimously. D. Resolution No. 209 Authorizing Execution of Hidden Meadows Project Agreements Ms. Dacy stated that the intent of the resolution is to authorize execution of the Project Agreements including but not limited to the Development Agreement, Project Improvement Agreement, and Purchase and Sale Agreements. She stated that the resolution requires the Executive Director is to review the final versions of the agreements with the Board Chair prior to execution and authorizes execution of agreements and any related documents by Board Chair and Executive Director. Johnson asked Mr. Currie about the recent residential home sale analysis. Currie responded that he retrieved sale prices on 8 homes over the last 240 days. He stated that he removed the highest and lowest numbers and then averaged the remaining. The average sale price was $196/square foot. Ms. Dacy Page 2 of 3 stated that a RFP will be issued for a realtor to act on behalf of the HRA and a marketing plan will begin in October. Motion made by Rogness, second by Murphy to approve Resolution No. 209 . Motion passed unanimously. 6. EXECUTIVE DIRECTOR REPORT • Real Estate Assessment Center (REAC) inspection of public housing properties Tuesday, October 18 • November 17 Board meeting to have public hearing on Capital Fund Plan for public housing properties and PHA Plan for 2023 • Two down payment assistance loans have been issued • Working on site design for Dalton and Pelican Rapids properties • Confirmation of HRA Commissioner terms scheduled for September 27 County Board meeting • Minnesota City Participation Program 1st Time Homebuyer mortgages up to 7 loans at $982 ,801 or 139% of allocation 7. GENERAL DISCUSSION CDA Director, Baldwin provided information on projects that CDA is working on. 8. ADJOURNMENT At 4:35 pm a motion was unanimously carried to adjourn the meeting. Afh fi1d - Kurt Mortenson Secretary/Clerk Date ' Page 3 of 3