[0:44] , UH UH [0:55] . UH [1:06] . GOOD EVENING. I WOULD LIKE TO CALL. THIS IS NOT. [1:12] OH, I'M TRY THIS AGAIN. [1:20] I WOULD LIKE TO CALL TO ORDER THE TUESDAY JANUARY 14TH, 2025. AH, A BOARD MEETING. [1:27] FIRST ITEM IS APPROVAL OF THE AGENDA. ARE THERE ANY EDITS OR CHANGES [1:35] IF NONE? MAY I HAVE THE MOTION TO APPROVE THE AGENDA SOMEWHAT [1:42] MOTION MADE BY LUA SECOND SECOND BY DOUBLING OR ALL [1:49] IN FAVOR OF OPPOSED MOTION PASSES SIX ZERO RIGHT. [1:56] NEXT ITEM ON THE AGENDA IS THE APPROVAL OF MINUTES. SO WE HAVE THE APPROVAL OF THE [2:03] DECEMBER 10TH CITY COUNCIL PORT AUTHORITY HRA CONCURRENT MEETING MINUTES ARE THERE ANY [2:11] EDITS OR CHANGES? IF THERE ARE NONE MAY I HAVE A [2:18] MOTION TO APPROVE THE DECEMBER 10TH CITY COUNCIL PART. HRA CONCURRENT BOARD MEETING MINUTES SO MOVED SO MOTION [2:27] MADE BY S.A. SECOND BY. ANY DISCUSSION? [2:32] ALL IN FAVOR. OH OKAY. MOTION PASSES SIX NOTHING. [2:39] THE NEXT ITEM IS THE APPROVAL [2:45] OF THE DECEMBER 17TH HRA AND PLANNING CONCURRENT MEETING MINUTES. ARE THERE ANY EDITS OR CHANGES [2:53] ? IF NOT CAN HAVE A MOTION TO APPROVE THE DECEMBER 17TH HRA AND PLANNING MEETING MINUTES. [3:00] MOVE TO APPROVE SECOND MOTION MADE BY WOOTEN IN SECOND BY DOUBLING OR ANY DISCUSSION. [3:09] ALL IN FAVOR I MOTION SIX ZERO FOR CRUISING RIGHT ON. [3:16] OKAY NEXT ITEM IS ORGANIZATIONAL BUSINESS WHICH I BELIEVE THERE WAS NONE SO WE [3:27] WILL MOVE ON TO THE NEXT ITEM OF NEW BUSINESS. SO THE FIRST ITEM IS PROPOSED [3:33] CHANGES TO THE RENTAL HOMES FOR FUTURE HOMEBUYERS PROGRAM [3:39] . MAY I HAVE THE STAFF REPORT? GOOD EVENING. [3:44] CHAIR AND COMMISSIONERS ANNA SALVADOR ADMINISTRATOR I JUST [3:51] WANT YOU GUYS CAN HEAR ME RIGHT. OKAY. THE ITEM BEFORE YOU THIS EVENING OUR PROPOSED CHANGES [3:58] TO THE RENTAL HOMES FOR FUTURE HOMEBUYERS PROGRAM. THE PURPOSE OF THE RENTAL HOMES FOR FUTURE HOMEBUYERS [4:03] PROGRAM IS TO OFFER AFFORDABLE RENTS TO SUPPORT A PATHWAY TO HOMEOWNERSHIP FOR INCOME [4:10] QUALIFYING HOUSEHOLDS. THE PROGRAM ANNUAL COACHING AND EDUCATION ON HOMEOWNERSHIP GOALS AND GENERALLY RUNS FOR [4:17] ABOUT FIVE YEARS FOR EACH HOUSEHOLD. THE GOALS OF THE AMENDMENTS BEFORE YOU TONIGHT ARE FIRST [4:24] AND FOREMOST TO MAKE SURE THAT WE CAN CONTINUE TO PROVIDE SAFE AND QUALITY HOUSING. AS YOU KNOW, IN 2024 THERE WAS [4:29] A SIGNIFICANT CAPITAL IMPROVEMENTS THAT WERE COMPLETED AND AS PART OF THAT [4:36] WORK WE IDENTIFIED THAT RENTS NEEDED TO INCREASE TO GUARANTEE WE COULD CONTINUE TO MAINTAIN SAFE AND QUALITY HOUSING. [4:44] AND SO THAT IS KIND OF THE IMPETUS FOR THE AMENDMENTS YOU TONIGHT. ONE THING THAT STAFFERS [4:49] CONTINUE TO BALANCE WITH THIS WORK IS TO MAKE SURE THAT ANY RENT INCREASES AND ANY [4:56] AMENDMENTS TO THE PROGRAM WOULD CONTINUE TO SUPPORT THE UNDERLYING PROGRAMMATIC GOALS OF HOMEOWNERSHIP READINESS AND AFFORDABILITY. [5:03] AND ONE WAY WE WERE THROUGH THIS IS HOW DO WE MAKE SURE THAT INCOME LIMITS AND RENT [5:10] LIMITS ARE SET IN WAYS THAT WOULD ALLOW FOR A HOUSEHOLD TO CONTINUE TO PAY INTO THAT [5:16] ESCROW ESCROW ACCOUNT WHICH IS WHERE THEY THAT DOWN PAYMENT [5:23] MONEY FROM THROUGH THE FIVE YEAR PROGRAM. ADDITIONALLY, THESE AMENDMENTS KIND OF ENHANCE OR OUTLINE A [5:31] CLEAR PROCESS FOR SETTING NEW RENTS SO. THEY'RE ENHANCING EXISTING PROGRAM REQUIREMENTS. [5:37] HOW WE SET RENTS FOR THE PROGRAM SO WHERE WE WHERE DOES THIS PROGRAM SIT ALONG THE [5:42] HOUSING CONTINUUM THE HRA PARTICIPATES IN OR PROVIDES [5:49] PROGRAMING ACROSS THIS FOR HOUSING CONTINUUM AND THE RENTAL HOMES FOR FUTURE HOMEBUYERS PROGRAM IS JUST ONE OF MANY PROGRAMS TARGETED LOW [5:56] INCOME HOUSEHOLDS. THE SPECIAL COMPONENT OF THIS PROGRAM IN PARTICULAR IS ITS FOCUS ON HOMEOWNERSHIP [6:02] READINESS FOR THIS POPULATION. AND SO WHILE IT IS AFFORDABLE [6:07] RENTAL HOUSING, ITS UNDERLYING GOAL IS TO MOVE THOSE HOUSEHOLDS AFFORDABLE HOMEOWNERSHIP OPPORTUNITIES AT THE AS THEY EXIT THE PROGRAM. [6:19] SO SOME BACKGROUND ABOUT THE CURRENT PROGRAM AS IT'S RUN WE HAVE 21 ACTIVE RENTAL PROPERTIES WITHIN THE PROGRAM [6:25] AND TO DATE WE HAVE 60 SUCCESS STORIES OF HOUSEHOLDS EXITING THE PROGRAM AND PURCHASING [6:30] HOMES. WE DO ACTUALLY HAVE ONE HOUSEHOLD CURRENTLY GOING THROUGH THE CLOSING PROCESS SO THAT NUMBER WILL GO UP BY ONE [6:38] THIS YEAR WHICH IS EXCITING TO HEAR. THE CURRENT ELIGIBILITY CRITERIA FOR THE PROGRAM IS 50 [6:44] TO 80% OF AREA MEDIAN INCOME AND WE DO ANNUALLY RECERTIFY [6:51] HOUSEHOLD SO WE WE DO A RECALCULATION OF THEIR ADJUSTED INCOME TO IDENTIFY WHAT THAT ESCROW CONTRIBUTION [6:56] WOULD BE ON AN ANNUAL BASIS AND AT THAT TIME WE ALSO COMPLETE A LEASE RENEWAL AS [7:04] PART OF THAT RECERTIFICATION PROCESS. SO THE PROPOSED AMENDMENTS BEFORE YOU THIS EVENING ARE [7:11] TWOFOLD. THE FIRST COMPONENT OF THIS IS INCREASING PROGRAM ELIGIBILITY FROM 50 TO THE 60% AMI LIMIT [7:20] AND SO THAT TOP CEILING OF 80% IS IS MAINTAINED THROUGH THESE PROPOSED AMENDMENTS. [7:27] AND THE GOAL THERE AGAIN FOR NEW HOUSEHOLDS MOVING INTO THE PROGRAM STARTING IN 2025, IT CREATES THAT GAP BETWEEN THE [7:35] RENTS THAT WE'RE ASKING AND THE INCOME LEVELS TO ALLOW THEM HIGHER CHANCES OF PAYING INTO ESCROW SOONER WITHIN THE [7:43] PROGRAM. THE SECOND COMPONENT OF THE PROPOSED AMENDMENTS IS INCORPORATING MAIN COUNTS MET [7:50] COUNCIL 50% EMI RENT AFFORDABLE RENT AS AN ADDITIONAL THRESHOLD FOR BOTH [7:57] SETTING MOVING RENTS BUT ALSO DETERMINING RENT INCREASES FOR CURRENT PROGRAM PARTICIPANTS AND THIS AGAIN IS TO ENHANCE [8:05] CURRENT PROGRAM GUIDELINES THAT INCLUDED THE ABILITY TO INCREASE RENT UP TO 5%. [8:14] SO CURRENT PROGRAM PARTICIPANTS ARE ALREADY AT THAT 50% AMI INCOME LEVEL AT [8:22] LEAST TO QUALIFY FOR THE PROGRAM OUR CURRENT RENT AMOUNTS AS YOU CAN SEE ON THE SCREEN ARE WELL BELOW WHAT THE [8:29] COUNCIL DETERMINES IS AN AFFORDABLE FOR HOUSEHOLDS AT THAT 50% AMI LEVEL AND PROPOSE [8:36] INCREASES FOR CURRENT TENANTS STILL ARE FALL WELL BELOW THAT [8:42] 50% AMI RENT WHICH FOR IN THIS INSTANCE OR FOR 2025 IS [8:50] $1,615. SO THE PROPOSED INCREASE FOR HOW WE WOULD UTILIZE [8:57] METROPOLITAN COUNCIL 50% IN MY RENT IS THAT WOULD BE THAT WOULD BE WHAT THE NEW MOVE [9:02] IN RENTS ARE FOR HOUSEHOLDS AND WE WOULD ALSO USE IT TO TEST AGAINST WHETHER A 5% [9:09] INCREASE OR SETTING THE RENTS AT THE MET COUNCIL LIMIT FOR CURRENT RENT HOUSEHOLDS WOULD [9:16] IN A LOWER INCOME OR A LOWER RENT INCREASE SO USING 2025 AS AN EXAMPLE AND APPLYING THIS [9:25] METHODOLOGY EFFECTIVE RENTS FOR A NEW IN WOULD BE SET AT [9:30] $1,615 FOR CURRENT PROGRAM PARTICIPANTS BECAUSE THE RENT THE CURRENT RENTS ARE SO FAR BELOW THAT 1615 WE APPLIED A [9:38] 5% INCREASE WHICH IS WHERE WE GOT THE 1143 TO 1489 RANGE. [9:45] SO FOR CURRENT RESIDENTS 5% INCREASE IS EQUAL TO AROUND 55 [9:52] TO $71 ADDITIONAL IN RENT PER MONTH FOR MOST OF OUR HOUSEHOLDS. WHAT THIS MEANS IS A SMALL [10:00] DECREASE POTENTIALLY IN WHAT THEY CAN BE PAYING INTO ESCROW . BUT AS YOU CAN SEE ON THE SCREEN, MAJORITY OF OUR [10:05] HOUSEHOLDS HAVE A HEALTHY ESCROW CONTRIBUTION THAT THEY'RE CONTRIBUTING MONTHLY AND SO WHILE IT MAY SLIGHTLY [10:12] REDUCE WHAT THEY'RE PAYING INTO ESCROW WOULDN'T PROHIBIT THEM FROM OR PROHIBIT THEM FROM CONTINUING TO SAVE FOR [10:19] THAT DOWN PAYMENT. THIS 5% INCREASE IS ALSO CONSISTENT WITH INCREASES [10:25] IN IN GENERAL AFFORDABLE PROPERTY MANAGEMENT PRACTICES WITHIN THE INDUSTRY AS WELL IN TERMS OF NEXT REPS WE ARE [10:33] IN THE PROCESS OF COMPLETING A FULL REVIEW OF THE ADMINISTRATIVE POLICIES FOR THIS PROGRAM AND WE PLAN TO COME BACK TO THE WITH THOSE [10:40] LATER THIS YEAR. THESE ARE JUST MORE IMMEDIATE ACTION ITEMS BECAUSE WE KNEW [10:45] WE WOULD NEED TO BE INCREASING RENTS THIS YEAR. WE WANTED TO MAKE SURE THAT WE WERE AGAIN MEETING PROGRAM [10:51] OBJECTIVES WITH ANY RENT INCREASES APPLIED FOR THIS YEAR UPON BOARD APPROVAL TONIGHT THE METHODOLOGY WOULD [10:59] BE APPLIED THROUGH OUR 2025 RENT RENEWAL LETTERS WHICH ARE SENT OUT TO HOUSEHOLDS 60 DAYS [11:07] IN ADVANCE OF THEIR RECERTIFICATION AND THE PROPOSED METHODOLOGY WOULD THEN BE APPLIED ANNUALLY [11:14] INCREASE RENTS AND ALSO SET RENTS FOR NEW MOVEMENTS. THIS CONCLUDES MY PRESENTATION I'LL RETURN IT BACK TO THE [11:22] CHAIR FOR QUESTIONS AND DISCUSSION. ANY QUESTIONS? [11:29] THANK COMMISSIONER. WE'LL GO BACK TO THE SLIDE [11:39] RELATED SLIDE BEFORE THIS IN PLACE SO THE RENT INCREASE HERE FOR IMPACT IS CURRENTLY OR AT LEAST WOULD BE 5% FIRST [11:47] OFF AND THEN YOU LOOK AT WHERE THE CURRENT RENTS ARE 55 PER [11:53] MONTH UP TO 71 PER MONTH BASED ON WHAT WE THANK YOU CHAIR AND [12:00] COMMISSIONER. SO THE 5% INCREASE IS APPLIED TO THEIR CURRENT RENT FOR THAT WE'RE CHARGING IN 2024 AND SO [12:07] THE CURRENT RENTS IN A RANGE SO THEY'RE NOT WE'RE NOT CHARGING THE SAME AMOUNT FOR [12:12] EACH HOUSEHOLD IS BASED ON WHEN THEY MOVED IN AND WHAT THAT CURRENT RENT WAS SET WHEN THEY MOVED IN SO THAT'S WHERE [12:18] THAT RANGE IS COMING FROM SOME OF OUR HOUSEHOLDS ARE AT THE LOWER END BASED ON WHEN THEY MOVED INTO THE UNITS. [12:23] SOME OF OUR HOUSEHOLDS ARE AT A SLIGHTLY HIGHER RENT CURRENTLY AND SO DEPENDING ON WHAT THEIR CURRENT RENT IS [12:30] THAT 5% RESULTS IN A DIFFERENT NUMBER? OKAY. AND TAKING A LOOK AT THAT, IS [12:37] IT WAS THERE ANY CONSIDERATION GIVEN TO POSSIBLY BEING AT 3% THE FIRST YEAR AS YOU [12:43] INCORPORATE THIS VERSUS A 5%? THANK YOU. CHEERING COMMISSIONERS WE DID LOOK AT THAT WITH THE WORK [12:50] WITH THE OPERATING COSTS THAT WE'RE CURRENTLY TRYING TO COVER WE WE NEEDED TO BALANCE THAT AND BECAUSE OUR RENTS [12:55] CURRENTLY ARE SO LOW WE DETERMINED THAT A 5% RENT [13:01] INCREASE COULD BE ABSORBED BY CURRENT PROGRAM PARTICIPANTS [13:06] BASED ON WHERE THEY'RE SITTING AT INCOME LIMITS. A COUPLE OF QUESTIONS LATER [13:12] OURSELVES. I MEAN IN MY VIEW I DO YOU HAVE ONE MORE QUESTION. YOU HAVE A QUESTION. I JUST WANT TO HOLD MY MY MY [13:17] QUESTION ALSO GOES TO RELATIONSHIP TO CONVERSATIONS I ASSUME THOSE NO [13:22] CONVERSATIONS HAVE HAD BEEN TAKING PLACE AT THIS POINT IN TIME WITH TENNIS RIGHT. [13:28] THANK YOU CHAIR COMMISSIONER SO AGAIN WE BECAUSE THESE RENT INCREASES HAVEN'T BEEN APPROVED THERE HAVEN'T BEEN [13:33] FORMAL COMMUNICATIONS BUT WE ALSO DON'T HAVE A RECERTIFICATION WITHIN THE [13:39] PROGRAM UNTIL MARCH. SO WE DO HAVE SOME TIME BEFORE THAT NEEDED TO HAPPEN SO IS [13:47] THERE ANYONE IN THE PROGRAM RIGHT NOW THAT MIGHT BE IN JEOPARDY OF LOSING THEIR HOUSING ON NOT BEING ABLE TO MAKE CURRENT RENTS? [13:52] THANK CHAIR COMMISSIONERS AT THIS TIME NO BASED ON CURRENT CURRENTLY WHERE HOUSEHOLDS ARE [13:59] SITTING IN THE LAST INCOME DETERMINATION WE DID THAT THAT WAS NOT A CONCERN THAT WE HAD WHEN WE DID OUR ANALYSIS. [14:06] THE COMMISSIONERS YEAH. SO I JUST HAD A COUPLE [14:12] OF COMMENTS. I MEAN FIRST OFF KIND OF PIGGY BACK ON WHAT YOU MENTIONED. [14:18] I WOULD FURTHER ADD THAT I THINK IT'S REALLY IT WOULD BE A REALLY GOOD IDEA TO ACTUALLY SPEAK TO THE TENANTS AND WHERE [14:25] THEY'RE AT BECAUSE I UNDERSTAND YOU KNOW THERE'S THE PAPERWORK WHERE THEIR INCOME IS AT BUT YOU KNOW LIKE [14:30] I GREW UP IN LOW INCOME HOUSING AND KNOW THAT THE REALITY CAN BE VERY DIFFERENT IN THE SENSE THAT THERE CAN BE [14:36] SO MANY UNEXPECTED COSTS AND KIND OF WITH POVERTY COMES WITH YOU KNOW YOU HAVE TO PAY [14:41] MORE TO BE POOR IF THAT MAKES SENSE. YOUR CAR BREAKS DOWN RANDOMLY AND SO LOOKING AT IT PAPER [14:48] WISE IT MAY NOT BE EASY TO SEE THAT BUT I DO THINK IT WOULD BE A GOOD IDEA TO ACTUALLY DISCUSS WITH THEM BECAUSE FOR MANY PEOPLE THE IDEA [15:03] OF 5% INCREASE MAY NOT SEEM LIKE A LOT BUT I THINK WHEN YOU'RE IN THAT POSITION IT IS A BIG CHANGE OR IT CAN IMPACT YOU. SO I JUST THINK THAT AT LEAST PREEMPTIVELY SEEING WHAT THEY [15:08] THINK WOULD BE A GOOD IDEA AND SO MEAN I UNDERSTAND THAT THIS GOES TOWARDS THEM BEING ABLE TO HAVE OWNERSHIP FOR SOME [15:14] PEOPLE IT'S LIKE THEY KIND OF HAVE TO THINK ABOUT THE NOW AS OPPOSED TO LONG TERM AND IT'S UNFORTUNATE BUT I THINK [15:22] THERE SHOULD AT LEAST BE SOME KIND OF COMMUNICATION WITH THE ACTUAL TENANTS. [15:28] THANK YOU COMMISSIONER. YOU SEE I IF I CAN JUST RESPOND TO THAT COMMENT I [15:33] APPRECIATE THAT PERSPECTIVE. I THINK ONE THING THAT IS ENCOURAGED IS BASED ON THE [15:40] CURRENT ANNUAL MEETINGS THAT WE'RE HAVING WITH HOUSEHOLDS AND THE TYPE OF GOALS THAT THEY'RE SETTING ON AN ANNUAL BASIS. [15:45] MANY THINGS THAT WE DISCUSS AT THOSE MEETINGS INCLUDE HOW ARE WE PURSUING OPPORTUNITIES TO [15:52] INCREASE YOUR INCOME? HOW ARE WE MAKING SURE THAT YOU HAVE HEALTHY SAVINGS? AND SO THE THE FINANCIAL [15:59] READINESS EDUCATION THAT I THINK COMES IN TANDEM WITH THIS PROGRAM IS GOING TO HELP SUPPORT SOME OF THESE [16:06] CONVERSATIONS AROUND THAT 5% INCREASE THIS YEAR. COMMISSIONER RUUD, THE TIMING [16:14] ON THIS, CAN YOU HELP US UNDERSTAND THE PERSPECTIVE ON YOUR TIMING? YOU KNOW, FIRST QUARTER VERSUS [16:21] MID-YEAR OR MAYBE THE THIRD QUARTER? THANK YOU. CHAIR COMMISSIONERS THE REASON [16:28] FOR THE TIMING IS WE WE WILL HAVE FIVE MOVES OUT WITHIN THE FIRST HALF OF THIS YEAR AND SO [16:33] WE WANTED TO BE ABLE TO START THAT HIGHER ASKING RENT AS [16:39] SOON AS POSSIBLE TO AGAIN REALIZE THAT IT WAS IN OUR OPERATING INCOME FOR THE FOR THE PROGRAM. [16:47] YEAH I HAVE A COUPLE QUESTIONS . HAVE RENTS INCREASED AT ALL [16:54] SINCE HOUSEHOLDS HAVE MOVED IN LIKE THE ONES THAT ARE GETTING READY TO MOVE OUT? HAVE THEY HAD AN ANNUAL [16:59] INCREASE? THANK YOU. COMMISSIONER MUELLER THERE WE'VE APPLIED INCREASES [17:06] IN CONSISTENTLY OVER THE LAST FIVE YEARS SO IT'S NOT NECESSARILY THAT THERE'S BEEN AN INCREASE ON AN ANNUAL BASIS FOR CURRENT PARTICIPANTS. [17:16] WILL THIS GOING FORWARD WILL INCREASES BE AN ANNUAL THING? [17:24] I THINK YOU CAN BE SURE IT IS ANTICIPATED JUST KNOWING OUR CURRENT FINANCIAL SITUATION WITH THESE PROPERTIES THAT WE ANTICIPATE THAT THE INCREASES [17:31] WILL BE APPLIED MORE CONSISTENTLY ON AN ANNUAL BASIS. OKAY. [17:38] THERE ARE QUESTIONS COMMENTS ON THE CHAIR. I THINK AFTER WE'VE REVIEWED [17:47] THIS AND YOU'VE GOT TO THE PRESENTATION I FEEL COMFORTABLE WITH IT KNOWING THE OBLIGATION THAT WE HAVE TO [17:55] CONTINUE TO MAINTAIN THESE PROPERTIES. I THINK THAT IT GOES HAND [18:01] IN HAND WITH SUPPORTING PEOPLE WITH A PATHWAY TO HOMEOWNERSHIP. SO IF WE CAN PROVIDE QUALITY [18:06] HOUSING I THINK THAT NEGATES A LOT OF THE WORK WE'RE TRYING TO DO TO GET PEOPLE INTO HOMEOWNERSHIP SO I DO [18:13] UNDERSTAND THE IMPACT LIKE $55 IS IT ON A GROCERY SHOP TO [18:19] COVER IT NOW IT ALSO IT'S A LOT BUT ALSO UNDERSTANDING THAT THAT MONEY ISN'T JUST BEING INCREASED LIKE A PRIVATE [18:28] LANDLORD FOR PROFIT THIS IS BEING INCREASED THAT. WE CAN REINVEST INTO THESE PROPERTIES AND MAKE SURE THAT THE ROOFS AREN'T LEAKING THAT [18:34] THE WINDOWS AREN'T DRAFTY, THAT PEOPLE HAVE DIGNIFIED HOUSING TO CONTINUE THIS PROGRAM AND MOVE IT INTO THE FUTURE. [18:40] SO I FEEL I FEEL COMFORTABLE WITH THE 5% THAT WE HAVE RIGHT NOW AND I'M LOOKING FORWARD TO [18:46] WHAT WE'RE GOING TO DO IN THE FUTURE TO CONTINUE TO KEEP THIS PROGRAM GOING. COMMISSIONER WOOTEN WELL, I [18:53] CONCUR WITH THAT. YOU KNOW PART OF THE CHALLENGE I'M HAVING PARA GENTLEMEN I'M HAVING IS THAT SOME OF THE [19:02] IMPROVEMENTS HAVE BEEN MADE. THEY'RE GOING TO BE MADE WHERE IMPROVEMENTS SHOULD HAVE BEEN [19:09] . WE SHOULD HAVE BEEN MAKING THEM OVER A PERIOD OF TIME AND NOW AS IT APPEARS TO ME THAT MAYBE THE BURDEN OF THOSE [19:16] IMPROVEMENTS NOT BEING MADE IN A TIMELY MANNER IS BEING BORNE BY THE PAY THE CURRENT [19:21] TENANTS. AND SO I'M I'M AMBIVALENT ABOUT HOW I FEEL ABOUT THE TIMING OF THIS. [19:30] I HAVE ONE ADDITIONAL QUESTION. SO YOU SAID FIVE YOU ARE [19:37] MOVING OUT IN 25. DO YOU HAVE FOR REJECTION LIKE [19:43] FOR 26 AND ON THAT IS THERE A CHANCE WE COULD JUST INCREASE RENTS FOR NEW MOVE INS ONLY [19:50] AND PEOPLE WHO ARE CURRENTLY LIVING DON'T GET INCREASE. JUST A THOUGHT. [19:58] THANK YOU. COMMISSIONER WHEELER THAT WAS ONE OPTION WE DIDN'T EXPLORE AND WE THE WAY WE WERE LOOKING [20:06] AT IT IS ACTUALLY IF WE SAID THE RENTS AT A SLIGHTLY HIGHER RATE THAN THE 50% AMI SO [20:11] IN THAT CASE BECAUSE THE STARTING RENT WOULD BE SO MUCH HIGHER THEN LIKE CAPPING THAT [20:19] FOR THE FIVE YEARS THAT THEY'RE IN THE PROGRAM ESSENTIALLY NOT REALIZING ANY INCOME OR RENT INCREASES [20:26] DURING THAT TIME AS PART OF THIS WORK THAT WE DID DO AN ANALYSIS OF ASSUMING THAT THEIR OR THEIR INCOME DIDN'T [20:33] INCREASE OVER THAT FIVE YEARS ,SETTING IT AT HAVING THE [20:39] STARTING INCOME BE AT 60% AMI WITHOUT AN INCOME INCREASE OVER FIVE YEARS EVEN WITH A 5% [20:47] INCREASE THEY WERE ABLE TO PAY INTO ESCROW FOR THE MAJORITY OF THAT FIVE YEARS. MOST HOUSEHOLDS ABLE TO SELL [20:54] BECAUSE MY COMMENT WAS NOT THAT THEY NEVER ONCE THEY MOVE IN THEY THEY GET THE HIGHER [21:01] RENT AND THEN IT'S NEVER CHANGE IT'S THE 5% BUT IF JUST KIND OF SPEAKING TO COMMISSIONER WOOTEN'S CONCERN [21:07] ABOUT HOW THIS MIGHT AFFECT CURRENT RESIDENTS IF WE ONLY THE RENT INCREASE IN SUBSEQUENT 5% FOR ALL THE [21:15] NEW MOVE INS BUT THINK YOU KIND OF ANSWERED THAT. I THOUGHT OF ONE OTHER COMMENT [21:22] AND ALONG THIS TOO WITH THAT IF YOU DON'T MIND OH NOW I [21:27] LOST IT. SORRY. YEAH SORRY I LOST IT. [21:35] ANY OTHER QUESTIONS? COMMENTS [21:45] ? YES, COMMISSIONER CARTER. THANK YOU. SO JUST THINKING ABOUT THE PEOPLE WHO ARE CURRENTLY [21:50] LIVING IN THE HOMES AND THEY'RE PROBABLY IN THE MIDDLE OF THEIR FIVE YEARS DO THEY DO [21:57] WE DO THEY HAVE SIGNED A CONTRACT. I MEAN IS IT A YEAR TO YEAR CONTRACT? [22:04] I GUESS I WOULD ASSUME THAT SOME OF THESE THINGS HAVE ALREADY BEEN LAID OUT AND BEEN AGREED TO AND SO WHAT DOES [22:12] THAT LOOK LIKE? THANK YOU, COMMISSIONER CARTER. CARTER SO WILL REITERATE UNDER OUR CURRENT ADMIN POLICIES FOR THE PROGRAM A 5% ANNUAL [22:19] INCREASE IS ALLOWED THAT'S THE MAXIMUM ALREADY OUR CURRENT PROGRAM GUIDELINES THE FAMILY [22:26] SIGNED A CONTRACT WHEN THEY FIRST MOVE INTO THE UNIT ABOUT THE PROGRAMMATIC COMPONENTS SO SETTING GOALS ANNUALLY AROUND [22:34] READINESS PAYING INTO THAT ESCROW ACCOUNT AND THEY DO ANNUALLY SIGN A SIGN A LEASE [22:39] IT AND AT THAT TIME WE REITERATE PROGRAM GOALS. OKAY. [22:45] SO I ALSO UNDERSTAND THE RATIONALE FOR MAKING CHANGES. I GUESS I WOULD BE CURIOUS [22:51] AFTER THEY'RE IMPLEMENTED AND I THINK THIS IS PROBABLY JUST KIND OF AN INITIAL CONVERSATION THERE'S MORE WORK [22:57] TO BE DONE BUT YOU KNOW DOES THAT IMPACT OUR SUCCESS RATE [23:04] SO I THINK YOU SAID WE'VE HAD 60 FAMILIES SUCCESSFULLY MOVE TO PURCHASE HOMES AND I GUESS I'D BE CURIOUS WITH THESE CHANGES IF THAT IF WE KIND [23:12] OF STAY ON TRACK WITH THAT LEVEL OF SUCCESS OR IF THIS NEGATIVELY IMPACTS. [23:20] SO I JUST YOU KNOW, DID QUICK MATH ON AN A THREE PERSON HOUSEHOLD AT 60% SO $62 GOING [23:26] INTO ESCROW AND IT'S MEAN IDENTIFIED BECAUSE IT'S 3720 THAT'S NOT ENOUGH FOR YOU KNOW [23:34] SO THEN WHAT HAPPENS AND AND I CAN ASK YOU MORE QUESTIONS OFFLINE JUST IN TERMS OF KIND OF WHAT THIS LOOKS LIKE FOR [23:42] DIFFERENT FAMILIES IN DIFFERENT SITUATIONS BUT I GUESS THAT WOULD BE ONE CONSIDERATION TOO. YEAH, I THINK YOU COMMISSIONER CARTER I THINK I JUST ADD TO [23:49] AT THE END OF FIVE YEARS NOT ALL HOUSEHOLDS AT THE POINT WHERE THEY COULD MOVE RIGHT INTO MAKING AN OFFER ON A HOME [23:56] DO HAVE UP TO A YEAR TO ACCESS THAT ESCROW SAVINGS ACCOUNT. SO SOME HOUSEHOLDS WHAT THAT [24:01] MEANS AT FIVE YEARS IS THAT THEY MOVE INTO DIFFERENT RENTAL PROPERTY AND CONTINUE THEIR SAVINGS JOURNEY OR MAYBE [24:08] OTHER INITIATIVES TO KIND OF CONTINUE THAT JOURNEY TO HOMEOWNERSHIP. SO WHILE THEIR FIVE YEARS IS A [24:16] HARD CUTOFF, THEY THEY STILL HAVE TIME EVEN IF IT'S A SMALLER ESCROW TO EXPLORE OTHER DOWN PAYMENT OPTIONS TO [24:23] SUPPLEMENT WHATEVER THEY'VE SAVED INTO THAT ESCROW ACCOUNT . OUR STAFF DOES TALK THROUGH THAT WITH THEM AT THAT TIME. [24:29] YEAH. AND COMMISSIONERS IF I JUST MENTION SO PART OF THE THE GOAL OF THESE CHANGES WOULD BE [24:35] TO INCREASE OUR SUCCESS RATE. THAT'S THE THAT'S THE HOPE AND GOAL AND PART OF THE WAY WE'RE [24:41] DOING THAT IS BY ALLOWING THAT GAP BETWEEN THE RENTS AND INCOMES AND SO WE'LL DEFINITELY KEEP MONITORING. WE'RE ALSO LOOKING AT THE FULL PROGRAM FOR REVIEW SO THE [24:49] BOARD CAN EXPECT THAT FULL REVIEW IN THE COMING KNOW PROBABLY LATER THIS YEAR AND THAT WILL ALSO INCLUDE SOME [24:54] CONSIDERATIONS FOR OTHER WAYS THAT WE CAN MAKE THIS PROGRAM SUCCESSFUL. [25:03] ANY OTHER QUESTIONS, COMMENTS . RATE HEARING ON MAY I HAVE A [25:11] MOTION TO APPROVE RESOLUTION SEVEN 2020 5-01 APPROVING [25:18] AMENDMENTS TO THE RENTAL HOMES FOR FUTURE HOMEBUYERS MANAGEMENT AND ADMISSION POLICIES [25:29] SO MOVED MOTION BY DOUBLING OUR SECOND AND SECOND [25:36] BY CARTER ALL IN FAVOR. ALL RIGHT. OPPOSED I MOTION 5 TO 1 ACT [25:44] OKAY. ALL RIGHT. NEXT ITEM ON THE AGENDA OF 5.2 [25:54] WHICH IS THE E ON LOAN DEFERRAL REQUEST. MAY I HAVE THE STAFF REPORT? [26:02] THANK YOU, CHAIR AND COMMISSIONERS SO THIS ITEM IS A REQUEST FROM AON FOR [26:07] DEFERRAL OF THEIR LOAN WITH BLOOMING MEADOWS. SO TO GIVE YOU SOME BACKGROUND [26:13] THIS IS A MAP SHOWING WHERE VILLAGE CLUB IS VILLAGE CLUB AS THE PREVIOUS NAME OF THE [26:19] COMPLEX THAT NOW ENCOMPASSES BLOOMING MEADOWS SOUTH AND BLOOMING MEADOWS NORTH. IT'S 306 UNIT APARTMENT THAT [26:25] WAS AT RISK FOR CONVERSION FROM NATURALLY OCCURRING AFFORDABLE HOUSING TO MARKET RATE RENTS WITH A POTENTIAL [26:32] FOR DISPLACING TENANTS. AND THAT WAS BACK IN 2019. AND AT THAT TIME AN APPROACH TO THE CITY AND THE HRA [26:40] REQUEST ASSISTANCE IN ACQUIRING THE VILLAGE CLUB TO PRESERVE THAT AFFORDABILITY AND COMPLETE IMPROVEMENTS TO [26:47] ADDRESS LIFE SAFETY ISSUES AND ATTAIN CODE COMPLIANCE BLOOMING MEADOWS SOUTH. SO SOME BACKGROUND ON WHERE [26:55] THOSE PROPERTIES ARE AT NOW SINCE 2019 IMPROVEMENTS HAVE BEEN MADE AT BLOOMING MEADOWS SOUTH TO ADDRESS THOSE LIFE [27:02] SAFETY CONCERNS AND CODE COMPLIANCE ISSUES AND WE WERE INFORMED THAT A TOTAL [27:08] OF $3.2 MILLION OF HAVE BEEN INVESTED TO ADDRESS THOSE ISSUES. THERE'S ALSO BEEN CONSTRUCTION [27:15] NEW UNITS ON THE COMPLEX AND THAT WAS ON ONE OF THE UNDERUTILIZED SURFACE PARKING [27:20] LOTS THE PROPERTY. AND SO THAT'S NOW KNOWN AS BUILDING BLOOMING MEADOWS. [27:27] YOU CAN SEE IT PICTURED THERE BLOOMING MEADOWS NORTH IS INCOME AVERAGED AT 60% AMI MEANING ALL THE UNITS ARE [27:35] AFFORDABLE AT DIFFERENT AFFORDABILITY LEVELS AND AFFORDABILITY WAS PRESERVED AT BLOOMING MEADOWS SOUTH AND [27:42] THOSE UNITS ARE PRESERVED AT THE 80% AMI LEVEL. BUT WE'VE BEEN INFORMED BY AND [27:49] IN REALITY MANY OF THOSE RENTS ARE AT 60% OR BELOW SO THEY'RE EVEN MORE AFFORDABLE AT THIS POINT. [27:56] SO THE AS I MENTIONED, THE CITY AND HRA PROVIDED ASSISTANCE TO AND FOR THE ACQUISITION AND IMPROVEMENTS [28:04] THAT WERE MADE TO BLOOMING MEADOWS SOUTH AND THAT WAS FOR THE PRESERVATION OF THOSE UNITS. THERE WAS ALSO AS PART OF THAT [28:11] ASSISTANCE. THERE WAS UNDERSTANDING THAT A FUTURE PHASE OF DEVELOPMENT WOULD TAKE PLACE WITHIN THE COMPLEX. [28:17] THAT FIRST PHASE WAS BLOOMING MEADOWS NORTH WHICH HAS HAPPENED AND SO TO SUPPORT THAT ACQUISITION AND THE [28:22] IMPROVEMENTS MADE THE HRA LOANED ON 7 MILLION FROM THE [28:28] AFFORDABLE HOUSING TRUST FUND AND PART OF THE AGREEMENT WHICH WAS RENEGOTIATED IN 2021 [28:36] IS THAT IRONWOOD REPAID 2 MILLION IN PRINCIPAL AND 1 MILLION INTEREST BY JANUARY [28:42] 2023 AND THAT HAS TAKEN PLACE AND THROUGH THAT REPAYMENT THE NEXT REQUIRED PRINCIPAL AND [28:47] INTEREST PAYMENT WAS SCHEDULED OR IS SCHEDULED FOR TOMORROW JANUARY 15TH OF 2025. [28:55] ADDITIONALLY THE HRA ESTABLISHED A HOUSING TIVE DISTRICT TO SUPPORT THE PROJECT SO THE HOUSING TIFT [29:03] DISTRICT CAPTURES INCREASES TO PROPERTY VALUE RESULTING FROM THE IMPROVEMENTS TO BLOOMING [29:08] MEADOW SOUTH AND THE CONSTRUCTION OF THE THE NEW UNITS WHICH IS BLOOMING MEADOWS NORTH. [29:14] THE REVENUE FROM THE DISTRICT IS SPLIT IN SEVERAL WAYS WHICH ARE SHOWN IN THIS GRAPHIC. [29:19] THE TAKEAWAY POINTS ARE THAT ALL OF THE TIF INCREMENT [29:26] GENERATED BY BY BLOOMING MEADOW SOUTH SO THAT THE PRESERVED AFFORDABLE UNITS ALL OF THAT REVENUE IS RETAINED BY THE HRA AND THEN FOR THE TIF [29:33] REVENUE FROM THE NEW UNITS FROM BLOOMING MEADOWS NORTH THAT REVENUE IS SPLIT BETWEEN THE HRA AND AVON AND THE TIF [29:40] REVENUE THAT GOES TO AND IS PAID THROUGH A WHAT'S KNOWN AS A PAY GO TIFF NOTE. [29:45] AND THAT'S THE MAJORITY OF THE [29:51] REVENUE FROM THIS DISTRICT AROUND 70% GOES TO AON AND THE REMAINDER IS RETAINED BY HRA. [29:58] SO FOR THE REQUEST TONIGHT AN HAS REQUESTED DEFERRAL OF ITS BIANNUAL 2025 AFFORDABLE [30:06] HOUSING TRUST FUND LOAN PAYMENTS. THERE ARE MULTIPLE FACTORS THAT HAVE BROUGHT THIS REQUEST [30:14] FORWARD. I'VE LISTED THOSE THERE AND IS CURRENTLY WORKING WITH ITS SENIOR LENDER ON BLOOMINGTON SOUTH TO REFINANCE THE PROJECT [30:22] AND CONSIDER CONSIDER FUNDING FOR COMPREHENSIVE AT THE PROPERTY AND THE REQUESTED DEFERRAL IS THOSE TWO [30:29] PAYMENTS. EACH PAYMENT IS $197,722.83. SO THE TOTAL AMOUNT THAT WOULD [30:37] BE DEFERRED FOR 2025 IS 395,445 AND $0.66 AND THOSE PAYMENTS WOULD BE DEFERRED [30:42] UNTIL THE LOANS CURRENT MATURITY DATE WHICH IS JANUARY 15TH OF 2040. [30:48] THE THE INTENTION OF THIS REQUEST A DEFERRAL IS TO ALLOW [30:53] TIME TO CONSIDER NEXT STEPS RELATED TO BLOOMING MEADOW SOUTH AND TO CONTINUE THE PRESERVATION OF AFFORDABILITY [31:00] AT THE PROPERTY. THE HRA WILL BE ABLE TO CONTINUE MAKING ITS LOAN REPAYMENTS BY UTILIZING THE [31:07] ANNUAL $500,000 HRA LEVY. THE STAFF HAVE ANTICIPATED OUR STAFF ANTICIPATE FROM AND THAT [31:16] THERE MAY BE ADDITIONAL SUBSIDY REQUESTS RELATED FUTURE COMPREHENSIVE REHABILITATION OF BLOOMING MEADOW SOUTH AND STAFF WANTED [31:27] TO INCLUDE THAT GIVEN THE FINANCIAL SITUATION OF THE MEADOW SOUTH AND SECONDARY POSITION OF THE HRA AS LOAN. THERE IS FINANCIAL RISK THAT [31:34] THEY WILL NOT BE ABLE TO MAKE FUTURE PAYMENTS ON THE LOAN WITH THIS IS THE RECOMMENDED STAFF APPROVAL OF THE DEFERRAL [31:45] REQUEST. YOU CAN MAKE THIS MOTION AND AT THIS POINT WE CAN TAKE [31:50] QUESTIONS AND DISCUSSION AND I DO WANT TO MENTION DR. ANTHONY DR. JOHNSON IS HERE TONIGHT FROM AND SO THANK YOU [32:00] ALL GREAT QUESTIONS COMMENTS COMMISSIONER WOOTEN. [32:08] CAN YOU HELP US UNDERSTAND HOW IN 21 AND 23 HE WAS ABLE TO MAKE THOSE PAYMENTS? [32:15] NOW THEY'RE ASKING FOR A DEFERRAL. THANK YOU CHAIR AND COMMISSIONERS FOR WHAT I'VE READ FROM THAT AMENDMENT PROCESS SO THE INITIAL LOAN [32:22] AGREEMENT WAS MADE FOR THE ACQUISITION AND IMPROVEMENTS MADE FOR BLOOMINGTON SOUTH AND THAT WAS AROUND 2019 IN 2021 [32:32] IN 2020 AND 21 BLOOMING MEADOWS NORTH WAS BEING NEGOTIATED TO BEGIN CONSTRUCTION AND AT THAT POINT THE HRA ENTERED INTO AN [32:37] AMENDMENT PROCESS FOR ITS AFFORDABLE HOUSING TRUST FUND LOAN AND PART OF THAT AMENDMENT RESULTED IN A [32:44] SCHEDULE FOR THAT REPAYMENT OF MILLION PRINCIPAL AND 1 MILLION INTEREST AND THE TIMING OF THOSE REPAYMENTS WAS [32:52] TO COINCIDE WITH EQUITY THROUGH THE TAX CREDIT PROGRAM. SO THERE IS A SCHEDULED RECEIPT OF EQUITY THAT [33:00] BASICALLY MY UNDERSTANDING IS THAT IT WASN'T COMING IN IN THE TIMING THAT AND HAD [33:05] INITIALLY EXPECTED AND SO THAT RENEGOTIATED SCHEDULE TO ALLOW [33:11] FOR THE EQUITY TO COME IN TO MAKE THOSE PAYMENTS SO THAT WAS ESSENTIALLY A ONE TIME RECEIPT OF FUNDS TO AND FOR [33:16] THAT PROJECT THAT IS NO [33:26] LONGER AVAILABLE AND I THROUGH MY READING OF THE DOCS RELATED TO THIS PROGRAM PROJECT THERE WAS ALWAYS AN INTENT TO REPAY A PORTION OF THE $7 MILLION LOAN. IT WAS NEVER THE INTENT TO [33:31] HAVE THAT ENTIRE BALANCE BE OUTSTANDING FOR THE THE TERM [33:37] OF THE LOAN AND THE DEFERMENT [33:44] TO THE END OF THE LOAN. CAN YOU HELP US UNDERSTAND THE THINKING IN THAT PROCESS AS WELL AS IS THERE INTEREST [33:49] ACCRUED THAT DEFERMENT WAS JUST THE ACTUAL PRINCIPLE OF THEY'RE PAYING TERM [33:56] COMMISSIONERS THE DEFERRAL TO THE END OF THE LOAN IS THE REQUESTED THE REQUESTED FORM [34:03] OF DEFERRAL FROM AON AND SO THAT'S WHAT THE RECOMMENDATION FROM STAFF HAS BEEN THAT'S THE RECOMMENDATION THAT STAFF HAVE [34:09] BROUGHT THE PAYMENTS THE THE FUTURE PAYMENTS WILL THEY'LL [34:15] BE THE SAME BIANNUALLY EVERY YEAR UNTIL THE MATURITY DATE SO IT'S THAT 197 AND CHANGE [34:22] THAT WAS THE THAT IS THE PRINCIPAL AND INTEREST PAYMENT NEGOTIATED IN THE LOAN DOCS SO [34:30] THE DEFERRAL WOULD NOT IMPACT THE REQUIRED DEBT SERVICE FOR THE FOLLOWING YEARS IT WILL [34:37] STILL BE THAT SAME AMOUNT TWICE A YEAR [34:45] . LET'S LOOK AT THE TREND COUNSELORS. THE THAT'S RIGHT THE TWO DEFERRED PAYMENTS WOULD BE PART OF A BALLOON MATURITY [34:51] DATE. THE LOAN AND THE COMMISSION [34:59] REMOVAL. THANK YOU CHAIR SO THE ANTICIPATION IS THAT THEY'RE JUST REQUESTING 2025 DEFERRAL [35:05] PAYMENTS WOULD RESUME AGAIN IN 26, IS THAT CORRECT TRENT COMMISSIONERS THAT IS THE REQUEST THAT AND IS BROUGHT AT [35:11] THIS POINT AND THAT'S TO GIVE THEM TIME TO NEGOTIATE WITH THEIR SENIOR LENDER DURING THIS YEAR I GUESS ADDITIONALLY [35:17] WHAT IS AND TO ADDRESS THE ISSUES THAT ARE ON THE SCREEN RIGHT HERE IN CASE THIS [35:24] HAPPENS AGAIN AND 26 AND THEN WE'RE BACK HERE AGAIN TALKING ABOUT THIS [35:38] IT'S JUST EVENING COMMISSIONERS DR. ERIC ANTHONY JOHNSON PRESIDENT CEO [35:45] AT AON. SO FIRST OF ALL, WE REALLY APPRECIATE THE TIME IN TERMS OF THE CONSIDERATION. LET ME JUST GIVE YOU A LITTLE [35:52] CONTEXT SO YOU REALLY UNDERSTAND IT'S FUNNY I WAS ACTUALLY HERE AND PUT THIS DEAL TOGETHER DURING MY TIME [36:00] AS COMMUNITY DEVELOPMENT DIRECTOR FOR THE CITY OF BLOOMINGTON. I'M REALLY FAMILIAR WITH HOW [36:05] THIS ACTUALLY HAPPENED BUT TO THOSE ISSUES I JUST GOT TO JUST GIVE YOU SOME CONTEXT [36:11] AFTER THE PANDEMIC AND THE EVICTION MORATORIUM WE BASICALLY SPACED ACROSS THE [36:16] PORTFOLIO. WE LOST ROUGHLY 63% OF OUR REVENUE ACROSS THE ORGANIZATION TURNS TO [36:24] NONPAYMENT OF RENT JUST LIKE NO PAYMENT OF RENT. IT'S A THAT SAFETY AND SECURITY ISSUES INCREASED [36:32] EXCUSE ME ISSUES RELATED TO TIME SPENT IN UNITS WHERE YOU COULDN'T ACCESS THE UNITS TO [36:39] DO ANY INSPECTIONS, ANY REPAIRS MOVING FROM AN AVERAGE OF ABOUT LET'S SAY I DON'T [36:46] KNOW 2000 TO TURN THE UNIT UP TO ABOUT 7500 TO TINY UNIT. SO WHEN YOU SEE THIS SORT [36:51] OF COLLECTION OF ISSUES THAT REALLY TOOK PLACE, IT REALLY STARTED HAPPENING AROUND THE [36:57] PANDEMIC. BUT WHAT WE CAN ALSO TELL YOU NOW IS THAT THE DEVELOPMENT IS STARTING TO PERFORM MUCH [37:05] BETTER. WE HAVE MOVED FROM SIGNIFICANT VACANCY AS WE'RE PROBABLY AT ABOUT 94 AND 95% OCCUPIED BUT [37:12] THE CAPITAL IMPROVEMENT NEEDS RELATED TO THE ROOF'S INTERIOR PIPING THINGS OF THAT NATURE [37:19] IS REALLY THE PROBLEM. AND IT'S ALSO IMPORTANT TO NOTE THAT THE DEFERMENT IS NEEDED BECAUSE OUR LENDER [37:27] NATIONAL EQUITY FUND IS GOING TO PROVIDE US MORE TO PUT TOGETHER A STRATEGY IN ITS [37:34] WILL CONSIST OF THE STATES COMMUNITY STABILIZATION PROGRAM WHICH ALONG LED TO [37:43] EFFORT TO GET THAT FUNDED AND THERE'S A NOTE ON THE SCREEN WE MAY RETURN TO ASK FOR SOME ADDITIONAL SUPPORT AS WE PUT [37:51] TOGETHER A TOTALLY RE CAPITALIZED PROGRAM AT BLOWING MEADOWS UP. BUT SO IT'S REALLY THE DEBT [37:59] WAS DUE TO AN F IN IN A YEAR GIVEN EVERYTHING HAPPENED NOT PERFORMING OKAY WE'LL GIVE YOU [38:05] MORE TIME GIVE AN EXTENSION TO WORK THROUGH WHAT THE COMPREHENSIVE STRATEGY WILL BE [38:11] AND WE WILL ALSO RETURN TO GIVE YOU AN UPDATE IN TERMS OF WHAT THAT WILL BE. [38:17] THANK YOU, DR. JOHNSON. THANK YOU. THE THE OTHER I HAVE FOR STAFF [38:24] IS WHAT'S THE OPPORTUNITY COST OF US UTILIZING THE $500,000 FROM THE HRA LEVY? [38:32] WHAT ARE BASICALLY WE'RE GOING TO MISS OUT ON WE UTILIZE THESE FUNDS TO SUPPORT THE BLOOMING MEADOW SOUTH WHICH I [38:40] UNDERSTAND IS KEY TO US MAINTAINING AFFORDABLE HOUSING IN NATURALLY OCCURRING OCCURRING NATURALLY AFFORDABLE [38:46] HOUSING WE HAVE A LOT OF WORK WE WANT TO DO AND THERE'S A LOT OF THINGS WE NEED TO GET [38:52] GOING ON. SO WHAT'S THE OPPORTUNITY COST HERE FOR UTILIZING THESE FUNDS [38:58] ? SHARON COMMISSIONERS THE [39:03] $500,000 IS PART OF THE ANNUAL HRA BUDGET THAT'S A LEVY BACKSTOP AND IT'S ESSENTIALLY [39:08] HELD CURRENTLY IN ESCROW. SO THERE ISN'T NECESSARILY AN [39:15] OPPORTUNITY TO UTILIZE THAT FUND AT THIS TIME. THE INTENTION OF THAT FUND IS TO BE AVAILABLE FOR SITUATIONS [39:20] SUCH AS THIS WHERE THERE ISN'T REPAYMENT OF LOANS THAT ARE DUE TO THE HRA AND THAT IS SO [39:27] THAT THEY CAN ENSURE THAT IT'S MEETING ITS OBLIGATIONS, ITS DEBT OBLIGATIONS THAT ARE EXTERNAL TO THE CITY [39:37] AND THE QUESTIONS COMMENTS I HAVE A [39:44] QUESTION AND I DON'T KNOW IF IT WAS ANSWERED OR JUST NOT TO MY SATISFACTION BUT AGAIN HOW [39:52] DO WE KNOW THAT IN COMING BACK IN 26 YOU'RE GOING TO BE ABLE TO PAY AND I THINK ONE OF THE [40:00] SLIDES SAYS, YOU KNOW, THIS IS AT RISK BUT AND HOW MUCH OF A RISK OF THE WHOLE THING [40:07] FALLING APART OR I, I GUESS HOW DO WE KNOW WHAT ARE ASSURANCES THAT THE SITUATION [40:15] WILL TURN AROUND IN A YEAR DURING THOSE YEARS IT IS A [40:22] IT'S A CHALLENGING SITUATION FINANCIALLY FOR BOTH PARTIES INVOLVED. SURE. AND THE GOAL OF THE REQUEST IS [40:29] TO GET TO THAT ASSURANCE ESSENTIALLY SO WE CAN SO THAT AND CAN DEVELOP A STRATEGY THAT KEEPS THIS PROJECT [40:36] IN GOOD FINANCIAL STANDING SO THE HRA THE PROPOSAL HERE IS [40:41] INTENDED TO BE A GOOD PARTNER WITH AVON AS THEY THROUGH THAT [40:47] PROCESS AND IT'S ALSO PART OF THE REALITY IS THAT THE HRA ALONE IS IN SECOND POSITION AS [40:54] MUCH MOST PUBLIC SUBSIDY IS AND THAT GIVES PRETTY LIMITED LEVERAGE IN TERMS OF NEGOTIATING THESE SORTS [41:03] OF SITUATIONS. SO WHERE WE'RE BEHIND THE SENIOR IN THIS CASE SO THAT'S PART OF THE FINANCIAL SITUATION THAT CREATES A [41:10] CHALLENGE FOR THERE IS A COULD DR. JOHNSON COULD YOU COME UP [41:17] IN SHED SOME LIGHT ON THIS ANSWER THIS QUESTION [41:24] COMMISSIONER. I'LL STICK TO THE QUESTION AGAIN. HOW DO WE KNOW THAT YOU CAN [41:29] PICK UP PAYMENT IN 26 AND WHAT IS THE RISK OF THIS PROJECT [41:36] FALLING APART? YOU KNOW, THAT'S ACTUALLY A GOOD QUESTION AND THE ATTEMPT HERE IS TO PREVENT LOSS [41:47] OF UNITS AT BLOOMING MEADOW SOUTH AND WHAT WE MEAN BY THAT IS THE LENDER NATIONAL EQUITY [41:54] FUND IS ACTUALLY GIVING THE TIME TO REALLY PULL TOGETHER A STRATEGY. [42:01] HERE'S THE PROBLEM IN FULL TRANSPARENCY INTEREST RATES ARE NOT FAVORABLE A PROPERTY [42:06] THAT HAS SERIOUS CAPITAL IMPROVEMENT NEEDS A PROPERTY. [42:13] ITS APPRAISED VALUE HAS DIPPED SIGNIFICANTLY IS NOT THE ONLY ONE WE ARE SORT OF THE [42:22] FORERUNNERS ON NOAH PROPERTIES AND WE OWN A LOT OF NEWER PROPERTIES AND THOSE PROPERTIES HAVE A LOT [42:29] OF CAPITAL IMPROVEMENT NEEDS. SO TO REALLY ANSWER YOUR QUESTION IS ACTUALLY IT'S ACTUALLY A RISK WE'RE TAKING TO SEE IF WE CAN PULL TOGETHER [42:36] A STRATEGY THAT WE'LL BE ABLE TO REPAY THE HRA, MAKE SURE [42:43] THE LENDERS ARE PAID AS WELL WHILE ALSO RESERVING THE [42:51] UNITS. NOW THE BEAUTY OF THIS IS [42:58] I'VE BEEN IN THIS JOB THREE YEARS AS THE NEW CEO AND WE'VE BEEN FIGHTING THIS ISSUE ACROSS OUR PORTFOLIO AND I THINK WE'RE [43:06] DOING A GOOD JOB IN TERMS OF TURNING THE CORNER ON SOME VERY TOUGH PROPERTIES BUT THIS ONE IN PARTICULAR SO YOU KNOW [43:13] I HAVE A PERSONAL STAKE IN THIS ONE BECAUSE I WAS HERE TO GET DEAL DONE AND I FEEL BLOOMINGTON IS A GREAT PARTNER [43:20] AND WE DO NOT WANT TO DO ANYTHING TO DISRUPT THAT RELATIONSHIP. SO MAKING PAYMENTS YOU KNOW, [43:28] WE MAKE PAYMENTS IN THE PAST. WE'RE GOING TO MAKE SURE WE STICK TO THAT COMMITMENT TO TRY AND GET IT DONE. BUT THERE IS A RISK SHOULD WE [43:36] BUT WITH THE LENDER SAYING OKAY DR. JOHNSON, WE'RE GOING TO GIVE YOU GUYS AN EXTENSION WORK ON THE STRATEGY FROM THE [43:42] PROFORMA TO THE SOURCES EVERYTHING AND LET'S TALK ABOUT HOW WE CAN GET THIS [43:48] DONE. SO MY COMMITMENT IS TO KEEP THE HRA TOTALLY INFORMED WILL COME BACK AT ANY POINT IN TIME [43:56] REQUESTS TO KEEP THE HIV UP TO DATE IN TERMS OF WHAT WE'RE DEALING WITH. THANK YOU. [44:01] I APPRECIATE THAT. COMMISSIONER WOOTEN, IS THERE [44:07] AND YOU DON'T HAVE THE ANSWERS NOW BUT AS YOU AS YOU LOOK AT THEIR STRATEGY AND ABOUT THE MANY VIABLE IF THEY DO YOU [44:14] THINK THE STAFF HERE CAN DO TO ASSIST IN PARTNERING WITH YOU TO HELP LEVERAGE YOUR INTEGRITY AND THE COMMITMENTS [44:23] YOU'VE MADE AND THE ABILITY KEEP THINGS AFLOAT FOR THE PAST THREE YEARS THIS I HOPE [44:29] THAT YOU WOULD FEEL COMFORTABLE ENOUGH TO ESPECIALLY SINCE YOU HAVE A RELATIONSHIP TO COME AND ASK [44:37] AND NOT JUST WAIT AND REPORT WHAT CAN'T BE DONE OR WHAT CHALLENGES YOU HAVE. ABSOLUTELY. THE COMMISSIONER APPRECIATE [44:44] THAT. IF I COULD TELL YOU WHAT WE'RE TRYING TO DO WE'RE TRYING NOT TO COME BACK AND ASK FOR A GARGANTUAN SUBSIDY THAT MAKES [44:52] SENSE SO WE WILL DO OUR BEST TO ENSURE THAT WE GET MY [45:00] DIRECTION. THE STAFF IS LOOK BLOOMINGTON A GREAT PLACE TO DO BUSINESS TO WORK GOVERNMENT ALL SET UP [45:07] OVER HERE I THINK IT'S FIRST CLASS AND WHILE THAT MAY BE THE CASE WE STILL DO NOT WANT TO COME IN HERE SAYING WE NEED [45:15] $25 MILLION FOR THIS PROJECT. THAT'S NOT WHAT WE'RE TRYING TO DO. WE WANT TO HOPEFULLY PUT TOGETHER SOMETHING THAT MAKES [45:22] BUT WE WILL ABSOLUTELY DO THAT. SO I APPRECIATE THAT STATEMENT . OKAY. ANY OTHER QUESTIONS? [45:30] COMMENTS I MEAN OKAY. WELL THEN I'M HEARING NONE. MAY I HAVE A MOTION TO APPROVE [45:38] DEFERRED PAYMENTS FOR THE BLOOMINGTON MEADOWS SOUTH LAWN BETWEEN ELLEN AND THE HOUSING [45:46] AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BLOOMINGTON MUTO 000. [45:52] RIGHT MOTION BY COMMISSIONER WOOTEN AND SECOND BY COMMISSIONER IS SAY ALL IN FAVOR OH EXCUSE ME CAN I [46:00] MAKE ONE COMMENT PLEASE THIS PARTICULAR ITEM I'VE BEEN [46:07] THINKING ABOUT SINCE THE PACKET CAME OUT AND I. [46:13] I WILL SUPPORT THIS ONE THIS YEAR BUT IF THINGS START [46:19] FALLING APART IF NEXT YEAR WE HAVE TO COME BACK AND DO THIS AGAIN IT'S REALLY HARD TO JUSTIFY THE CONTINUED PUBLIC [46:27] SUPPORT BECAUSE WE HAVE TIFF IN THIS WE HAVE THE AFFORDABLE HOUSING TRUST FUND MONEY IN THIS WE HAVE WE'LL BE [46:32] DEFERRING PAYMENT TO THE END OF THE THE TERM. [46:38] WE'RE UTILIZING AN ADDITIONAL $500,000 NATURE LEVY WHICH IS ADDITIONAL JUST PUBLIC FUNDING [46:45] FOR THIS AND MAKES ME VERY UNCOMFORTABLE IF WE HAVE TO DO THIS AGAIN. [46:52] AND SO I DO BELIEVE THE THE WORDS THAT DR. JOHNSON AND THE INSIGHT THAT HE'S PROVIDED TO [46:57] US AND I WANT TO CONTINUE TO BE A PARTNER AND I THINK THE [47:03] LENDER BEING WILLING TO EXTEND FOR AND TO CONTINUE TO DO THIS [47:08] WORK GIVES ME CONFIDENCE BECAUSE IF THAT LENDER IS WILLING TO DO THIS AND I FEEL CONFIDENT THAT THERE IS A PATH [47:15] FORWARD BUT IF WE HAD TO COME BACK AGAIN THIS NEXT YEAR THIS TIME I DON'T KNOW IF MY ANSWER [47:22] WILL BE THE SAME. THANK YOU. SO I THINK WE'RE AT THE VOTE ALL IN FAVOR I OPPOSED THE [47:32] MOTION PASSES 6 TO 0 DID YOU [47:39] WANT TO DO YOUR THING AFTER? OKAY SO NEXT UP IS JUST A DISCUSSION ITEMS AND THAT IS [47:46] THE SANITARY SEWER FUNDING UPDATE MAY I HAVE THE STAFF REPORT [47:56] . GOOD EVENING CHAIR MUELLER COMMISSIONERS ONE MARKET GUARD [48:01] AND PLANNING MANAGER AND I WANT TO GIVE YOU A LITTLE BIT OF A UPDATE ON SANITARY SEWER [48:08] FUNDING AND YOU MIGHT ASK WHAT DOES THAT HAVE TO DO WITH [48:14] HIPAA? WHY WHEN I TALK ABOUT AT THE HRA IT'S BECAUSE IT HAS A BIG IMPACT ON HOUSING. [48:22] IF WE TOOK NO ACTION AT ALL JUST LEFT THE SEWER SYSTEM AND ITS PRESENT LEVEL THEN [48:29] PORTIONS OF THE CITY WOULD NOT ABLE TO CONTINUE TO DEVELOP WHICH WOULD LOWER THE ABILITY [48:40] THE CITY TO IMPACT HOUSING NEEDS THROUGH NEW SUPPLY AND [48:45] WOULD ALSO PUT A LOT OF PRICE PRESSURE ON EXISTING UNITS AS WELL. [48:53] AND THEN CERTAINLY THIS HAS AN IMPACT ON DEVELOPMENT FINANCES IF YOU'RE DEVELOPING PROPERTY [49:00] AND YOU HAVE THESE NEW FEES THAT'S GOING TO PUT MORE PRESSURE ON YOUR PROFORMA AND MAKE IT DIFFICULT INCREASE [49:07] FUNDING GAP. SO THAT'S WHY WE'RE HERE TONIGHT TO TALK A LITTLE BIT ABOUT THAT. SO BLOOMINGTON HAS REACHED A [49:15] SEWER CAPACITY AND SEVERAL AREAS OF THE CITY. [49:21] TWO AREAS WERE CALLING THE NORTH CENTRAL AND SOUTH CENTRAL AREA ALREADY AT CAPACITY. SO NO ADDITIONAL DEVELOPMENT [49:29] COULD BE ADDED OR VERY LITTLE IN AREAS UNTIL WE DO SOME SEWER IMPROVEMENTS AND THEN [49:37] OTHER AREAS OF THE CITY AND NEAR TERM BEFORE 2040 WE ALSO [49:44] EXPECT THAT OUR REACH THEIR CAPACITY AS WELL SO A BIG IMPACT ON FUTURE DEVELOPMENT. [49:51] OUR PUBLIC WORKS STAFF HAS PUT MANY IMPROVEMENTS THAT ARE [49:59] NEEDED. THESE ARE ALL IN OUR CAPITAL IMPROVEMENTS PROGRAM BETWEEN NOW AND 2040. [50:05] YOU CAN SEE THE MAP OF ALL THE DIFFERENT AREAS THAT NEW SEWER PIPES ARE NEEDED IF YOU ADD [50:13] THESE TOGETHER RIGHT NOW THEY'D TOTAL JUST ABOUT $55 MILLION AND THAT'S BETWEEN NOW [50:18] AND 2040. SO WE'VE BEEN WORKING ON THIS [50:23] A WHILE. WE'VE HAD A MULTI DEPARTMENTAL STAFF WORK GROUP FOCUSED ON THIS AT SOME INITIAL [50:30] DISCUSSION WITH COUNCIL BACK IN MAY AND THEN OVER THE SUMMER WE DID A LOT OF COMMUNITY OUTREACH AND MET [50:38] WITH KEY STAKEHOLDERS, RECEIVED SOME INITIAL DIRECTION FROM THE COUNCIL IN OCTOBER AND THEN ON [50:46] DECEMBER 2ND AFTER A PUBLIC HEARING THE COUNCIL ADOPTED THE BLOOMINGTON'S FIRST CITY [50:52] SACK FEES SEWER AVAILABILITY CHARGE SO THAT'S NOW IN PLACE. IT TOOK EFFECT AT THE FIRST [50:59] OF THE YEAR SO THE CITY LOOKED AT SEVERAL OPTIONS INCLUDING [51:06] NO ACTION LIVING WITH WHAT WE HAVE IN TERMS OF SEWER SYSTEM FUNDING IMPROVEMENTS THROUGH [51:13] SAC FEE FUNDING IT THROUGH INCREASED UTILITY RATES OR ALTERNATIVE SOURCES OR SOME [51:21] COMBINATION OF OF THOSE IN TERMS OF COMMUNITY ENGAGEMENT, WE HAD AN ONLINE [51:29] SURVEY NOT SCIENTIFIC BUT WHAT WE HEARD FROM PEOPLE THAT RESPONDED WAS A PREFERENCE TO FUND THROUGH A CITY TAXI OR [51:39] SOME COMBINATION OF TAXI AND OTHER SOURCES AT OUR DEVELOPER [51:55] ROUNDTABLES THE GENERAL TAKE AWAY WAS THAT DEVELOPERS THAT WE HAD CONCERNS AND THAT THEY UNDERSTOOD THE NEED TO HAVE A CITY SEXY THEY ENCOUNTER THAT [52:03] IN A LOT OF OTHER CITIES WASN'T IN PLACE IN BLOOMINGTON THE PAST THAT BEING SAID THEY ALSO PREFERRED THAT OTHER [52:10] PARTIES PAY FOR IT RATHER THAN THAN PAYING THEMSELVES WHETHER IT'S OTHER GEOGRAPHIC AREAS OR [52:18] UTILITY RATE PAYERS AS WELL [52:26] SO THE COUNCIL DIRECTED APPROACH WAS TO MOVE FORWARD WITH OUR [52:32] TWO MOST CRITICAL SANITARY SEWER PROJECTS THAT NORTH CENTRAL AND THE SOUTH CENTRAL PROJECT AND TO FUND THOSE [52:39] PROJECTS AND THEN OTHERS BEYOND THAT THROUGH A MIX OF THESE ARE NEW DEVELOPMENT [52:44] THAT'S THE CITY SEXY AND INCREASE SANITARY SEWER USER RATE THAT'S THE FEES THAT [52:50] USERS CITYWIDE PAY MONTHLY ON THEIR UTILITY BILLS AND THEN [52:58] TO CONTINUE TO PURSUE ALTERNATIVE FUNDING SOURCES ESPECIALLY FEDERAL AND STATE GRANTS AND THIS IS I BELIEVE [53:06] THE CITY'S NUMBER ONE LEGISLATIVE REQUEST THIS YEAR IS FOR ASSISTANCE ON THAT [53:12] NORTH CENTRAL PROJECT. SO THE ADOPTED SEXY IT WORKS [53:20] OUT TO $2,026 PER UNIT IN A PSYCH UNIT IS THE MEASURE [53:26] OF THE AMOUNT OF SEWER FLOW THAT DIFFERENT USERS HAVE. ONE PSYCH UNIT IS EQUAL TO THE [53:32] FLOW FROM SINGLE FAMILY HOME [53:37] CITY TAXES ARE COMMON. A LOT OF OUR NEIGHBORING COMMUNITIES HAVE THEM AND THE [53:45] INTENT IS IF EVERYTHING GOES TO PLAN IF YOU MEASURE BETWEEN TODAY AND 2040 THAT [53:55] APPROXIMATELY 61% OF THE COSTS OF ALL THESE DIFFERENT SEWER PROJECTS WOULD COME FROM TAXES AND THEN THE REMAINDER 39% [54:02] WOULD COME FROM INCREASED UTILITY RATES. [54:09] THAT 39% ALSO HAPPENS TO BE THE CALCULATED PERCENTAGE ACROSS ALL OF THESE PROJECTS. SO THE ASSET RENEWAL COMPONENT [54:17] OF EACH PROJECT THE IDEA BEING WHEN YOU TAKE AN OLD SEWER [54:22] PIPE IN THE GROUND AND YOU REPLACE WITH A NEW SEWER PIPE, SOME OF THE COST IS JUST HAVING A BIGGER PIPE BUT [54:29] YOU'RE ALSO ADDING BENEFIT TO THE SYSTEM AT LARGE BECAUSE NOW YOU HAVE A BRAND NEW PIPE [54:34] THAT WOULD NOT NEED TO BE REPLACED EVEN IF YOU SET ASIDE THE CAPACITY ISSUE IN TERMS [54:39] OF THE UTILITY RATES, THE THIS GRAPH SHOWS OVER TIME THE [54:47] PROJECTED FUTURE RATES THE BLUE LINE IS IF WE DID NOTHING IN TERMS OF ADDING CAPACITY TO [54:55] THE SYSTEM THE RATE INCREASES ANTICIPATED JUST BECAUSE WE HAVE ASSET RENEWAL NEEDS WE [55:01] HAVE PIPES THAT ARE REACHING THEIR LIFESPAN BUT YOU ADD IN THE CAPACITY EXPANSION [55:09] THAT'S POTENTIALLY THE RED LINE. OUR HOPE IS THAT OUR DEVELOPMENT WILL COME IN AT HIGHER LEVELS THAN WE FORECAST [55:17] WE FORECAST FOR THE NEXT FIVE YEARS VERY, VERY CONSERVATIVELY CONSERVATIVELY [55:24] . BUT IF THE DEVELOPMENT DOES COME IN AT A STRONGER PACE THEN THE NEED FOR HIGHER UTILITY RATES WITH LOWER [55:32] RATHER THAN THE RED LINE WOULD BE CLOSER TO THAT BLUE LINE IN TERMS OF RATE INCREASES. [55:39] BLOOMINGTON HISTORICALLY AS COMPARED VERY WELL TO POORER COMMUNITIES IN TERMS OF UTILITY WITH THESE [55:47] INCREASES WE DO ANTICIPATE BLOOMINGTON WOULD MOVE A LITTLE BIT CLOSER TO THE [55:53] AVERAGE OF THESE POORER COMMUNITIES. BUT WE KNOW THAT A LOT [55:59] OF THESE COMMUNITIES ARE FACING SIMILAR SITUATIONS AND THEY'LL BE RAISING THEIR RATES AS WELL. [56:05] SO ADDRESSING THESE CONSTRAINTS HAS A LOT OF POSITIVE BENEFITS SO [56:13] CERTAINLY THE COMMUNITY CAN CONTINUE TO GROW AND EVOLVE. THAT MEANS NEW HOUSING, NEW BUSINESSES, SERVICES, THINGS [56:21] THAT RESIDENTS VALUE INCREASED ECONOMIC, NEW EMPLOYMENT OPPORTUNITIES WITH THAT ACTIVITY TAX BASE GROWTH. [56:32] SO A LOT WOULD BE SPENT BUT A LOT WOULD BE GAINED AT THE SAME TIME. LOOKING AT SACK FEES AND OTHER [56:39] COMMUNITIES THEY THEY RANGE QUITE A BIT ON THE LOW END [56:45] MAPLEWOOD $130 PER UNIT ON THE HIGH END OF WHAT WE SURVEYED BROOKLYN CENTER AT $5,000 A [56:52] SAC UNIT THE SAC AMOUNT IS [57:00] BASED ON THE COMMUNITY'S NEED SPECIFICALLY SO YOU CAN'T REALLY COMPARE ONE CITY TO [57:05] ANOTHER BUT BLOOMINGTON WOULD BE IN KIND OF THE MIDDLE RANGE IN TERMS OF WHAT THE FEES [57:11] WOULD BE AMONG THE CITIES THAT CHARGE CITY TAXES. SO WE DID SOME CASE STUDIES AT [57:19] WHAT WOULD BE THE IMPACT ON DIFFERENT TYPES OF LAND USES. SO IF WE LOOK AT A SINGLE [57:24] FAMILY EXAMPLE ASSUMING A PROJECT COST OF $500,000, A [57:31] SINGLE FAMILY HOME GENERATES ONE SAC UNIT SO THEIR FEE [57:36] $2,026 THAT WOULD BE 0.41% OF THE PROJECT COST WOULD BE [57:43] THE FEE. IF WE LOOK AT SOME OTHER LAND USES HERE NOBLE APARTMENTS 149 [57:53] SAC UNITS THERE FEE WOULD BE 0.7% OF PROJECT COST AND A [58:02] MIXED USE EXAMPLE 0.68% ON [58:08] INDUSTRIAL EXAMPLE 0.41% AND [58:14] THEN THE HOTEL WOULD HAVE BEEN 0.35%. SO GENERALLY THAT FEE IS RANGING BETWEEN A THIRD OF 1% [58:20] AND TWO THIRDS OF 1% [58:25] OF CONSTRUCTION COST. THAT SOUNDS LIKE A LOW NUMBER BUT THAT CAN BE THE DIFFERENCE [58:30] BETWEEN THE PROJECT MOVING FORWARD OR NOT MOVING FORWARD [58:36] AND WE CERTAINLY RECOGNIZE THAT THAT'S SIGNIFICANT AND IN CONTEXT OF DEVELOPMENT. [58:43] SO WHAT'S WHAT ARE THE IMPACTS ON DEVELOPMENT? WELL, THERE ARE REALLY TWO [58:50] SCENARIOS THAT COULD HAPPEN. ONE IS IF THE PROFORMA ALLOWS IF THE PROFORMA HAS SPACE TO [58:57] ABSORB THE FEE, THAT COULD BE ONE SCENARIO AND THEN ESSENTIALLY THE DEVELOPER IS [59:04] PAYING THE FEE OUT OF THEIR WHAT WOULD OTHERWISE BE ADDITIONAL PROFIT. THE OTHER SCENARIO IS IF YOU [59:11] HAVE A PROFORMA THAT DOES NOT HAVE EXTRA CAPACITY THEN THAT CREATES A IN THE PROFORMA. [59:18] IN THAT CASE THE DEVELOPER HAS A FEW OPTIONS THAT THEY COULD TRY TO PASS ALONG THAT [59:24] ADDITIONAL COST THROUGH HIGHER RENTS OR HIGHER SALE PRICES. BUT THAT'S TRICKY BECAUSE THE [59:30] MARKET PROBABLY SUPPORT THAT THEY'RE PROBABLY GETTING WHATEVER RENTS THEY COULD GET [59:37] OUT OF THE MARKET ANYWAY. ANOTHER OPTION BE TO PURSUE THE PROJECT IN A DIFFERENT CITY THAT DID NOT HAVE FEE. [59:45] A LOT OF OUR SURROUNDING CITIES DO HAVE THESE FEES WHERE THEY COULD SEE PUBLIC [59:52] RESOURCES TO FILL THE GAP SUCH AS TURF AND WE THINK THAT WILL BE A VERY COMMON REQUEST. [1:00:00] WE SEE A LOT OF REQUESTS IN THE FUTURE NOT ONLY DUE TO THIS FEE BUT OTHER FEES THAT [1:00:07] HAVE BEEN ADDED IN RECENT YEARS AS WELL AND FINALLY ANOTHER OPTION THEY COULD SIMPLY NOT PURSUE THE PROJECT [1:00:15] WHICH WOULD BE A WORST CASE SCENARIO IN TERMS OF NEXT STEPS. [1:00:22] THE CITY COUNCIL DID ASK THAT WE RETURN BY THE END OF THE FIRST QUARTER OF THE YEAR TO [1:00:27] TALK ABOUT A OF THINGS FIRST OF ALL POTENTIAL EXEMPTIONS, [1:00:33] AFFORDABILITY, SUSTAINABILITY OR OTHER FACTORS AND THEN SECONDLY POTENTIAL USE OF THE [1:00:38] SOUTH LOOP DEVELOPMENT FUND TO PAY AT LEAST FOR PROJECTS [1:00:45] IN THE SOUTH A AND THEN WE HAVE THE CONSTRUCTION OF OUR [1:00:52] FIRST TWO PROJECTS BOTH OF WHICH ARE IN THE STUDY PHASE FEASIBLE PHASE RIGHT NOW [1:01:01] OF THE SOUTH CENTRAL PROJECT HOPEFULLY WOULD BE COMPLETE BY NOVEMBER OF THIS YEAR THEN THE [1:01:07] NORTH CENTRAL PROJECT BY NOVEMBER OF 2027 AND YOU CAN SEE THE PRICES THAT ARE 4 [1:01:15] MILLION FOR THE SOUTH CENTRAL $26 MILLION FOR THAT NORTH CENTRAL PROJECT. [1:01:21] SO THAT'S ALL I HAVE FREE TONIGHT BUT HAPPY TO TAKE QUESTIONS OR HEAR YOUR [1:01:26] COMMENTS, QUESTIONS, COMMENTS [1:01:42] . OKAY I KNOW YEAH A COUPLE [1:01:52] WEEKS AGO THANK YOU. YOU AND NOW ADMINISTRATOR ABE [1:01:59] HAD SOME COMMENTS. YEAH, IF I COULD JUST SAY, [1:02:07] GLENN, BEFORE YOU WALK OUT JUST WANTED TO SAY GLENN IS RETIRING IN A FEW WEEKS AS WAS JUST NOTED AND SO WILL [1:02:14] PROBABLY BE THE LAST TIME YOU SEE HIM BEFORE THE AGENCY UNLESS WE FORCE HIM TO COME HERE ON JANUARY 28TH FOR SOME UNSPECIFIED REASON BUT JUST [1:02:22] WANTED TO RECOGNIZE THE MANY YEARS HE'S BEEN HERE AT THE CITY AND THANK HIM FOR THE NUMEROUS PRESENTATIONS TO THE [1:02:27] HRA AND ALL OF THAT WORK SO THANK YOU GLENN YEAH I JUST WANT SAY THANK YOU TO THE HRA. [1:02:34] I'VE HAD THE PRIVILEGE OVER THE YEARS AND WORKING WITH A VERY VERY CLOSELY ON MAJOR [1:02:41] REDEVELOPMENT PROJECTS AS WELL AND I COULD BE AN AMERICAN 86 AND LYNDALE AND SO I'VE GOTTEN [1:02:49] TO SEE THE REALLY IMPORTANT WORK THAT YOU DO AND. I THANK YOU FOR YOUR SERVICE ON THIS COMMISSION. [1:02:56] THANK YOU AND GOOD LUCK TO YOU. THANK YOU. [1:03:03] AND THEN I JUST HAVE A COUPLE OF OTHER QUICK UPDATES. FIRST OUR NEXT MEETING IS ON THE 28TH AND THEN FEBRUARY [1:03:09] 11TH IS THE ANNUAL MEETING OF THE HRA. SO YOU MAY HAVE NOTICED YOU DON'T HAVE CALENDAR HOLDS YET FOR MEETINGS AFTER FEBRUARY [1:03:14] 11TH. THAT'S NOT BECAUSE OF THE INJURY ISN'T MEETING IT'S BECAUSE THEY GET APPROVED ON FEBRUARY 11. SO PLEASE BOOK ALL YOUR [1:03:20] TUESDAY NIGHTS. WE'RE PLANNING TO CONTINUE THE SCHEDULE ON THE SECOND AND FOURTH TUESDAY OF THE MONTH AND THEN WANTED TO GIVE GOOD [1:03:28] NEWS OF A COUPLE GRANTS THAT THE HRA HAS RECEIVED. ONE IS FOR SOUTHVIEW ESTATES WHICH IS A PROJECT THAT [1:03:34] PRESERVES I THINK IT WAS 37 UNITS OF AFFORDABLE AND IS CONVERTING TEN MARKET RATE UNITS TO AND SO THAT RECEIVED [1:03:42] A GRANT FROM THE MET COUNCIL FOR 700,000 THAT DOES INCLUDE A PORTION OF HRA MATCH SO YOU [1:03:49] MIGHT SEE THAT COME BEFORE YOU AGAIN SHORTLY TO JUST TALK ABOUT WHAT THE MATCH MECHANISMS FOR THAT AND I [1:03:54] BELIEVE THAT'S COME BEFORE THE BOARD IN THE PAST AND THEN THE OTHER ONE IS WHEN WE APPROVED [1:03:59] AGREEMENTS FOR 9030 AND 93 OR 96 PARK WE MENTIONED THAT WE HAD APPLIED FOR SOME [1:04:06] ADDITIONAL FUNDING THAT MIGHT HELP LOWER THE HRA GAP SUBSIDY AND I'M HAPPY TO ANNOUNCE THAT THAT PROJECT ALSO RECEIVED AN ADDITIONAL GRANT AWARD SO THAT [1:04:14] WILL PROVIDE MORE UPDATES AS THAT GETS GOING. BUT THAT PROJECT SHOULD START CONSTRUCTION SHORTLY THIS YEAR [1:04:21] AND HAPPY TO SAY THAT THE HRA SUBSIDY WILL BE A LITTLE BIT LESS THAN AND THAT IS ALL FOR MY UPDATES. [1:04:28] ALL RIGHT, THANK YOU. SO WE HAVE COME TO THE END OF OUR AGENDA. DO WE HAVE A MOTION TO ADJOURN [1:04:35] JANUARY 14TH, 2025 A BOARD MEETING MOVED MOVED BY [1:04:42] DOUBLING OH MY GOODNESS BY RUDIN AND SECOND PHASE ALL [1:04:49] IN FAVOR HOUR RIGHT OPPOSED [1:04:54] MEETING ADJOURNED