HomeMy WebLinkAboutHousing & Redevelopment Authority - HRA-Packet-06-12-2023 Supporting Documents - 06/12/2023 Public HearingOTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY Public Hearing – Otter Tail County Affordable Senior Housing Program BOARD PACKET June 12, 2023 1 of 13 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Dead Lake Room 500 West Fir Avenue, Fergus Falls, MN June 12, 2023 HOUSING AND REDEVELOPMENT AUTHORITY MEETING AGENDA8:00am 1.Call Meeting to Order and Roll Call – Chairperson 2.Approval of Agenda 3.Public HearingA.Otter Tail County Affordable Senior Housing Program 4.New BusinessA.Resolution No. 243 Approving General Contractor, Electrical Contractor, andPlumbing Contractor for North Fields of Dalton 5.Executive Director Report 6.General Discussion – Topics by Commissioners 7. Adjourn 2 of 13 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 3. PUBLIC HEARING 3 of 13 1ir EOU/\l. HOUSING OPPORTUNITY OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _June 12, 2023__ BOARD MEETING DATE AGENDA ITEM #3A Community Assistance ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 6/6/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Public Hearing Otter Tail County Affordable Senor Housing Program PROPOSED REQUEST/JUSTIFICATION The purpose of this public hearing is to solicit comments regarding the HRA initiative to construct affordable senior housing in communities in the county (the “Program”) with the exception of Fergus Falls and Perham. Minnesota Statute Chapter 462C requires that the HRA conduct a public hearing when it pursues: “making or purchasing loans pursuant to section 462C.05 to finance multifamily housing developments or the rehabilitation of multifamily housing developments if the program is submitted for review pursuant to section 462C.04, subdivision 2.” Attached is the description of the “Otter Tail County Affordable Senior Housing Program”. A demonstration development, or the “Initial Project”, is proposed for a one-acre property located at 101 and 103 Court Street in Dalton. The development will consist of two triplexes, slab on grade, and each unit has a one car garage. Staff recommends that the Board open the public hearing and take comment. The hearing needs to be advertised again for July 18. A copy of the proposed Program statement has been transmitted to West Central Initiative for the required review and comment. No action on this item is proposed until a future HRA meeting. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED The HRA has been working with the City of Dalton to construct residential housing on the property since 2020. EXECUTIVE DIRECTOR DATE: Barbara Dacy 6/6/2023 ATTACHMENT LIST: Otter Tail County HRA Affordable Senior Housing Program FINANCIAL IMPLICATIONS: $1.6 million BUDGETED: Pending YES NO FUNDING: Tax Levy COMMENTS 4 of 13 76960667v2 OTTER TAIL COUNTY AFFORDABLE SENIOR HOUSING PROGRAM PROGRAM FOR FINANCING AN AFFORDABLE MULTIFAMILY RENTAL HOUSING DEVELOPMENT Proposal Authority. Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the Otter Tail County Housing and Redevelopment Authority, in and for Otter Tail County, Minnesota (the "HRA") is authorized to develop and administer programs of making or purchasing loans to finance multifamily housing developments. Minnesota Statutes, Section 462C.05, subdivision 2, provides that such multifamily housing developments can be designed to be affordable. The HRA intends to undertake an affordable multifamily rental housing development finance program (this "Program") to construct an affordable housing development for low-income elderly persons (as further defined herein) and households (“Affordable Senior Housing”) within the HRA's area of operation in Otter Tail County, subject to Minnesota Statutes, Sections 469.001 through 469.047 (the "HRA Law") . Minnesota Statutes, Section 462C.07, provides that the HRA may issue one or more series of tax-exempt and/or taxable revenue bonds or other obligations (the "Bonds") pursuant to the Act and HRA Law to assist in financing the Program. In addition, the HRA contemplates entering into other financing instruments, as is available, through state, county, non-profit and/or private financial institutions in order to accomplish the Program. General Description of the Project and Location. The HRA intends to finance a development, to be known as “North Fields of Dalton” (the “Project”), as hereinafter described, which shall be owned and operated by the HRA. The HRA proposes to enter into a “Loan Agreement” with Otter Tail County to assist in financing the Project. The Project consists of the acquisition of one acre of property in Dalton, Minnesota (the “City”), and the construction of two triplexes thereon. Each triplex will offer one-bedroom and two-bedroom units and is expected to be known as North Fields of Dalton, located at 101 and 103 Court Street in the City. 5 of 13 The Project is designed and is intended for residency by elderly persons or households who meet certain affordability standards as defined herein and pursuant to the Act. The Project will consist of the following living units: Operation of the Project. The HRA will operate the Project in accordance with applicable development restrictions, and all construction will be subject to applicable state and local building codes. The Project, as proposed, is not inconsistent with any Housing Plan previously adopted by the HRA under Minnesota Statutes, Chapter 462C. The HRA will be required to operate the Project in accordance with state and local anti-discrimination laws and ordinances. Loan Agreement. The HRA has indicated that the original principal amount of the loan, expected to be made by the County no later than December of 2023, to finance the Project, will not exceed $900,000. . Substantially all of the net proceeds of the loan will be used to pay the costs of the Project, including but not limited to driveways, and/or other such facilities as the HRA may determine necessary. The loan will be made pursuant to the Act and HRA Law and will be payable primarily from the HRA Special Benefit Levy. Monitoring. The HRA expects to enter into suitable agreements with necessary parties and will be responsible to ensure compliance with the objectives of this Program, as well as with the requirements of applicable law. Affordability. The Project has been designed to be affordable, and all units thereof shall be leased to persons or households with adjusted gross incomes not exceeding 80% of AMI, all in accordance with the Act, HRA Law, and other applicable state and federal laws. Use of Loan Agreement. The proceeds of the Loan Agreement will be loaned to the HRA pursuant to a loan agreement (the "Loan Agreement") by and between the County and the HRA. The HRA will be required, pursuant to the Loan Agreement, to make payments sufficient to pay when due the principal of and interest on the Loan. Units Number of Units Square Footage Per Unit Estimated Initial Rents Per Unit 1 BR/1 1/2 Bath 2 875 $723/month 2 BR/2 Bath 4 1,089 $917/month 6 of 13 Initial Project Costs. The costs of the Project and the program of financing the Project, including specifically the costs of the County, generally will be paid or reimbursed by the HRA. Adopted by the Otter Tail County Housing and Redevelopment Authority, in and for Otter Tail County, Minnesota on _______________, 2023. 7 of 13 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 4. NEW BUSINESS 8 of 13 1ir EOU/\l. HOUSING OPPORTUNITY OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _June 12, 2023__ BOARD MEETING DATE AGENDA ITEM #4A Community Assistance ORIGINATING DEPARTMENT/SERVICE Barbara Dacy 6/7/2023 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 243 Resolution Approving General Contractor, Electrical Contractor, And Authorizing Execution Of Design Agreement PROPOSED REQUEST/JUSTIFICATION Beginning on April 29, 2023, the RFP for General, Mechanical and Electrical Contracting Services was advertised on the county website, in the Daily Journal three times, on the Lake Region Builders website, and via direct solicitation to contractors. Respondents were given until close of business on May 16, 2023 to submit the required forms for consideration. During this timeframe, it was determined that pursuing a ground source heat pump and solar array was not financially feasible. In addition, it was learned that state plumbing permit applications take up to 12 weeks to review and process. Finally, the HRA was advised that contractors are very busy with existing and planned workloads. JBS Construction, of Richville, Minnesota submitted a proposal for General Contractor, and Ohren Electric, of Dalton, Minnesota, submitted a proposal for Electrical Contractor. Staff contacted references contained in their submission for both firms, and both firms were highly recommended. Kevin Currie, Construction Consultant, discussed the proposed project with the contractors and HRA staff conducted a virtual meeting on June 7, 2023. The next step is for the HRA to work with these contractors and the architect to complete the design and scope of work, then prepare a “construction estimate”, which will be brought back to the Board for final review and approval, prior to authorizing the construction contract. This is tentatively planned for the August and/or September Board meetings. Based on the information received through direct conversation and reference calls, staff is pleased to recommend that JBS Builders, LLC be approved as the General Contractor, and Ohren Electric be approved as the Electrical Contractor. In addition, it is recommended that JBS Builders, LLC handle contracts for plumbing and mechanical work as part of its role as General Contractor. Staff recommends the Board approved Resolution No. 243 approving the previously named contractors and authorizing execution of a design/build contract (AIA standard form) by the Chair and Executive Director. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED The HRA Board reviewed the procurement plan for the North Fields development at its April 18, 2023 meeting. EXECUTIVE DIRECTOR DATE: Barbara Dacy 6/7/2023 ATTACHMENT LIST: Resolution No. 243 FINANCIAL IMPLICATIONS: BUDGETED: Pending YES NO FUNDING: Tax Levy COMMENTS 9 of 13 RESOLUTION NO. 243 RESOLUTION APPROVING GENERAL CONTRACTOR, ELECTIRCAL CONTRACTOR, AND AUTHORIZING EXECUTION OF DESIGN AGREEMENT WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) is authorized by Minnesota Statutes, Section 469 to carry out redevelopment activities; and WHEREAS, the City of Dalton (the “City”) owns property located on and near Court Street and Park Avenue (the “Property”); and WHEREAS, the Authority adopted Resolution No. 136 on July 20, 2020 authorizing demolition and site clearance and to provide redevelopment assistance in the City; and WHEREAS, the Authority is considering developing an affordable senior housing development to be known as North Fields of Dalton (the “Proposed Development”) on a portion of the Property; and WHEREAS, it is necessary to obtain reasonable estimates of potential construction costs through architectural and design services; and WHEREAS, the Authority staff solicited competitive proposals beginning on April 29, 2023 by advertisements for the Proposed Development in the Fergus Falls Daily Journal, on the Otter Tail County Website, on the Lake Region Builders Association website; and by direct solicitation; and WHEREAS, two proposals were received; and WHEREAS, JBS Builders, LLC proposed as the General Contractor (the “General Contractor”); and WHEREAS, Ohren Electric proposed as the Electrical Contractor (the “Electrical Contractor”); and WHEREAS, it was determined that a Mechanical Contractor was not necessary; and WHEREAS, the Authority reviewed the written information contained in each proposal regarding the profile of the firm and a letter regarding financial capacity from the General and Electrical Contractor’s financial institution; and WHEREAS, the Authority staff conducted interviews of the General and Electrical contractor and contacted references for each; and WHEREAS, the Authority has determined that the General and Electrical Contractors have the capacity to undertake the Proposed Development; and WHEREAS, it is necessary to prepare an agreement (the “Design and Construction Agreement”) for the design, scope of work, and a construction estimate. NOW, THEREFORE, IT IS HEREBY RESOLVED: 10 of 13 1. That the Executive Director is hereby directed to prepare a Design Agreement with the General Contractor and Electrical Contractor to complete the design, scope of work, and a “construction estimate” for the Proposed Development. 2. The Board Chair and Executive Director is hereby authorized, empowered, and directed to execute and deliver in the name and on behalf of the Authority the Design Agreement, any other documents, and instruments in such form and on such terms and conditions as she deems necessary or appropriate in connection with the construction as contemplated above. 3. The Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. Upon the motion of ____________________, seconded by ______________ and passed on a _______________vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 12th day of June, 2023. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 11 of 13 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 5. EXECUTIVE DIRECTOR REPORT 12 of 13 1ir EOU/\l. HOUSING OPPORTUNITY OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY ITEM 6. GENERAL DISCUSSION TOPICS BY COMMISSIONERS and ADJOURN 13 of 13 1ir EOU/\l. HOUSING OPPORTUNITY