It's June 24th and we will begin with uh let's get here. Oh, we got to do the um roll call. Trusty Hinrich here. Trusty Brastead here. Trusty Reiner here. Trusty Gamash here. Trusty Jeepson here. Trusty Meisner here. There are six of us here today. Um approval of the minutes from the H board meeting of May 27th, 2025. Do I have a motion? So moved. second by Commissioner um Jeepson and second by Commissioner Brastead or um excuse me trustees. I'll get this right. Um any comments hearing? None. All in favor signify by saying I. I opposed. Hearing none. It passes unanimously. I don't have any chair chair's remarks this morning. So we'll move right into the AC management committee report. And um Tanya Uh thank you trustee. I have I always write that down on my piece of paper. Um the first thing um that we spoke about um and Shane's here to give you an update. We took your input on the senior housing budgets and made some adjustments. Um so I'm going to turn it over to Shane and he can give you an update on that and just an overview again on the the four senior buildings. Okay. Welcome Shane. Good morning, Mr. Chair and trustees. See if I can remember that. Um, thanks for hearing about the four senior projects again. Um, this is an update to the meeting that we had with the committee on June 10th. And I'll go through a brief overview of what we went through that day for the benefit of others who may be watching or listening. and then we'll talk about changes that came out of that meeting and some recommendations on proposed rent for the project and capital budgets. So, uh, the Enoka County HR owns four projects, um, roughly 50 units each. One in Ham Lake, one in Ramsey, one in Centerville, and one in Oak Grove, Willow Savannah Oaks, Johny Barrett Gardens, CBG, I will say sometimes, and the Oaks of Lake George. Um they were built in the late 90s and early 2000s to address senior housing um uh needs for those areas. Um they were financed with bonds that were pledged both by the local community andor the HRA levies in those respective communities. Um each year that's why we're here. We do a budget process where staff from the Anoka County HR and the Great Lakes uh management organization which is the manager that you've all hired to um manage those properties and Ellers get together and we try to um best plan the budgets and rent increases for the project and then you all uh decide on on that formally. So um what we did on uh June 10th in the initial meeting was proposed a rent increase for the projects at 3% um annually as the leases come uh to uh renewal. And uh during that meeting there was some discussion about the capital needs and how to best plan and and finance those things. And so there was discussion, although not action or anything like that, relative to um keeping the rent at 3% for two of the projects that are kind of um doing okay financially and then increasing the rent at Chanty Barrett Gardens to 4 and a.5% to address some capital needs and operational challenges that that one has and the lack of levy um support because of the size of the community there. and then also respectively on the other end of the spectrum to reduce the rent increase to one and a half% at the Willows at Ham Lake because there is levy support there and that project is performing better financially and the debt is soon to be paid off on the project so they won't have a mortgage payment so to speak. So we've reflected those changes in the attachments and the budgets and you all can consider that um at the at the meeting here today. But um the projects are very well occupied. You can see um that they're 96 plus% occupied. We consider 95% occupied as full. So these are um long-term tenants. There's not a lot of turnover there and if there is turnover, they they fill up very quickly. Um operating expenses and maintenance costs and capital needs have been a challenge for all of these and they are for all apartment projects and all homes as um many many people are homeowners and uh so all that stuff is going up. Although recently that has started to moderate a little bit on some of the projects that I'm working on, we're not seeing the rapid increases on inflation and a few of the projects that I work on have seen a little tick down in some pricing. Um, which is good. I think it's a good sign for um, as we look forward on budgets like this. Um, so I've updated some of the financial summary tables in the attachments. um in particular, one that um talks about the per unit costs and um just kind of a summary overview uh sheet that tries to benchmark the projects against each other. And you can see again just how different they are. They're different ages, they're different communities, there's different levy support, they've had different investment over time. So there's a there's quite a bit of variability in them and they all need to be treated a little bit differently and I think that's reflective of your comments on um how we should maybe um change the the rent and do it not all at the same 3% which um is certainly um appropriate. So um with that again I'd be happy to go into any of the the detail that you'd like in any of the memos but we've uh the main changes from our meeting on June 10th have been the difference in rent increases. The only other appreciable change that we made is to stretch the capital improvements out for Chelsea Barrett Gardens to reduce negative cash flow at the end of the day and push that out to 2029 um when the debt could be um refinanced and you could spread the cost of those capital improvements out over a longer period of time. But that debt isn't we call it isn't callable is the term until 2029. So we got to kind of hold it together for a few more years. Um, so there's that. And, um, the only other to-dos on on our list are to, um, we've got an upcoming meeting with Willows of Ham Lake, um, in early July here to talk to their council about the joint powers agreement that needs to be updated because the debt is being paid off and there's some things in that contract that um, could be clarified as to what happens with the project and uh, the process and things like that. So, we've got that going on. And then um the Johny Barrett Gardens uh capital needs needs to be closely watched as we plan for what would happen with that project in the future. And then the only other update I would mention from the June 10 management committee meeting was there was a discussion about the future of these projects and should they be continued to be owned by the In Noa County H or should something um else be done, you know, sale, refinance, some other partnership, something like that. And um I know it's the intent of staff to bring that discussion to you all um you know after the budget process is done. And you can think about Willows of Ham Lake, you can think about Chanty Barrett and the other two as well, but those are the two more unique ones now that they're starting to to time out from their debt coming up here. So with that, I'd be happy to answer any questions. Thank you. Um any questions at this point in time? Does the trustee want to make a motion? So moved. It's been moved by trustee Bradstead. Do I have a second? Second. Seconded by trustee uh Jeepson. So we're the the rent increases. There's three different or two of the buildings are the same percentage increase. One is uh Willows of Ham Lake is at 1.5 and Chanty Beard is at 4.5 and the other two Savannah Oaks and Oaks of Lake Georgia at 3%. Um thank you for listening and and and looking at that. Oh, Commissioner Jeepson. Yeah, thank you. I I just wanted to make there's a lot of information here. Um and though we don't have questions in this moment, there was a large discussion and lots of questions being asked and an understanding and appreciation for the complexity of this. So I just want to make it known that we're not just blindly going into this with this decision and we do have very robust conversations apart from this um specific meeting. So just want to make that clear. Trusty Meiser, did you have a question? No, I just want to make sure that you saw Trusty Jeepson. Um, anyone else? Um, not sure. Is this a roll call vote? That's right. I thought roll call vote. Trusty Brazed. I. Trusty Reiner. Hi. Trusty Gamash. I. Trusty Jeepson. I. Trusty Meisner. I. Trusty Hinrich. Hi. And that passes unanimously. Thank you again for the hard work. Thanks Shane. We'll move down to uh management report mutual termination agreement um with Graco. Uh yeah. So just for your consideration um you guys discussed it at the the June 10th meeting, but this would be a enter um authorizing me to enter into a a cancellation agreement or mutual termination agreement with Graco. Um and they would pay that um funds back that you had given them. Um do I have a motion on this one? So moved. Moved by trustee uh Brastead. Do I have a second? Second. Second by Trusty Reiner. Any discussion? Is this roll call? Okay, this a roll call vote. Trusty Reiner. I. Trusty Gamash. I. Trusty Jeepson. I. Trusty Meisner. I. Trusty Hinrich. I. Trusty Brasted. I. And that passes unanimously. Item number. Um Okay. So we've got the mutual agreement that we we just took care of. So that's just a separate one. Okay. Then item number three is the Duffy Development Company. Yeah. Chair. Um this is this is the my recommendation or the group's recommendation um for the three applicants or proposals we received for the Columbia Heights um redevelopment site um to choose uh Duffy Development Corporation um to sell have me be able to enter into a purchase agreement and other documents so that they can we can sell the property to them and they can go into the Minnesota Housing um tax credit round. So just formally approving them as our developer. Okay. Questions. Trusty Meisner. Yeah. Thank you, Mr. Chair. Yeah. And uh I know we talked about this again in the in the actual committee meeting. So this is like you're saying to approve the the funding or for uh vetting for the funding. Um but the actual details because we had kind of just a first blush proposal of what it might look like. But that's going to be fluid like the the actual design of what this looks like. Correct. They'll have to go through engineering and and other things to to determine that they can do what they are proposing to do or they may need to make some changes to it. They had in their proposal um to have a town home sort of row of town homes along the one street and then have a building up on the hill where there's building now. Y um but whether or not engineering and and stuff will allow that, we don't know 100%. I met with their um estimators on on construction and things and they said there'll be a lot of dirt work, a lot of being move a lot of moving dirt there, but they had the most the proposal had the biggest number of units and whether they're able to do the town homes or not, they're going to do the 60 units one way or the other, either in one building or in a building in the town homes. Yep. Uh, and I know I mentioned this in the committee and you know just for me my my two cents worth is like you know I do want as many units as possible and at the same time I know the difference between the original proposals was the um I guess the office space for wraparound services and like supportive services. But I I think that is also very important. Um so that's the only thing that I I don't want to I don't want to see slip away. Um, and I think that this Duffy had like the least office space designated for that if my memory serves me. But my point was like it's not set in stone and I was like great. So we can still kind of work on that. Yeah. Chair Trusty Meisner. Um, I've already had a preliminary conversation with Duffy staff about that and we'll be working through that too just to make sure that they're right sizing the space that they need to provide services for the they're proposing 11 11 supportive units and then another five um that are kind of the high priority need disabled. Um and he said typically the disabled group um meet with their their support staff or their support people in their units and so they may not need as much space for them as they might need for the other. They were definitely open to doing you know whatever we need them to do essentially. Um because Yeah. No, thank you so much. They get it. They get it. And I I think I told you guys at the U meeting that I had our human services review the applications and our human services staff selected them as as being the most um responsive in their answers to the questions that we asked about how you're going to serve people and and how that's all going to be done. So they'll they'll figure out the space whether we have to tell them to do more or not, but they'll they'll figure it out. Thank you. So this um we probably still have to have approval from the city on any kind of I mean because it's a bit of a change um depending on what they come up with. So that's but we have had some good conversations with the city staff. Yes. Um chair other trustees um we've had preliminary conversations with with city staff. The city has already passed a resolution that kind of understands the thought process of what we're going to be doing, which is redevelopment of the site and they're very open to seeing the redevelopment happen and open to having another curb cut and some other things that are going to help the project as well. But yeah, the Duffy will have to go through all the city normal city processes that any other developer would. This just gets us to the point where we can enter into a purchase agreement and other documents so that they can submit their application to Minnesota Housing for tax credits, which is the bigger chunk of the funding for the building. Good. So, it's similar to the the SAN project that we talked about in previous weeks. It's kind of we need to get certain things in place and and signed for them to get the points they need in in those processes. So, this is just the first step. They'll have a whole bunch more a whole bunch more things they're going to be needing to do and and get final engineering and get other things that all happen and take all their get all their city approvals too. Excellent. Um do I have a motion or do we already get one? No. Right. Okay. So moved. Moved by Trusty Jeepson. Do I have a second? Second. Second by Trusty Meisner. Any further discussion? Hearing none. All in favor? Roll call. Roll call vote. Trustee Gamash. I. Trusty Jeepson. Hi. Trusty Meisner. I. Trusty Hinrich. Hi. Trusty Brasted. Hi. Trusty Reiner. All right. And that passes unanimously. Uh, go back up to the agenda. Is that the last one on? Yeah, I believe that's that's everything. Yeah. Okay. Very good. Thank you, Tanya. That and thank for all the hard work on uh the stuff with the um the housing budget and um and all this other work that you're doing. So, well, thank you. All right. All right. Appreciate that. Any other It's a lot of fun. So that's good. I know I'm a geek, but it's it is fun. Anything else to come before the board? We're adjourned.