[1:09] . GOOD EVENING. I LIKE TO CALL THE TUESDAY [1:17] JULY 23RD, 2020 FOR HOUSING AND REDEVELOPMENT AUTHORITY MEANING TO ORDER. THE FIRST ITEM OF OF THIS [1:23] EVENING IS THE APPROVAL OF THE AGENDA. THERE ARE ANY ADDITIONS OR CORRECTIONS TO TONIGHT'S [1:28] AGENDA HEARING NONE. WE BE LOOKING FOR A MOTION TO APPROVE THIS EVENING'S AGENDA [1:34] I TO MOVE TO APPROVE WE HAVE A MOTION BY COMMISSIONER WOOTEN SECOND AND A SECOND BY [1:40] COMMISSIONER ISSA TO APPROVE THIS EVENING'S AGENDA. IS THERE ANY DISCUSSION HEARING NONE. [1:45] ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I AM I OPPOSED MOTION PASSES SIX ZERO [1:51] AND THE NEXT ITEM IS ITEM 3.1 TO APPROVAL OF THE JUNE 25TH [1:57] 2024 HRC BEING A BOARD MEETING MINUTES IS THERE ANY ADDITIONS OR CORRECTIONS TO THAT HEARING? NONE. [2:02] WE BE LOOKING FOR A MOTION TO APPROVE THE JUNE 25TH 2024 HRC [2:07] BOARD MEETING MINUTES SO WE HAVE OUR MOTION BY COMMISSIONER MUELLER AND A SECOND BY COMMISSIONER [2:13] DOUBLING OUR TO APPROVE THE JUNE 25TH 2024 HRC BOARD MEETING MINUTES IS THERE ANY [2:20] DISCUSSION HEARING NONE. ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I AM I OPPOSED MOTION PASSES SIX [2:26] ZERO. NEXT ITEM AN ORGANIZATIONAL BUSINESS WE HAVE ITEM 4.1 EXTERNAL AUDITORS REPORT ON [2:33] 2023 ANNUAL FINANCIAL REPORT MAY WE HAVE THE STAFF REPORT [2:39] JUST GO AHEAD. ALL RIGHT [2:49] . ALL RIGHT. GOOD EVENING COMMISSIONERS. IS THE SLIDESHOW AVAILABLE? YOU KNOW? [2:54] ALL RIGHT. PERFECT. MY NAME IS ANDY HERRING FROM [3:01] REDPATH AND COMPANY, THE CPA FIRM THAT PERFORMED THE AUDIT OF THE VARIOUS FINANCIAL STATEMENTS FOR 2023. [3:07] AND I'M HERE TO PRESENT THE RESULTS OF THE 2023 AUDIT. [3:13] SO WE ARE HIRED AND WE AUDIT THE FINANCIALS STATEMENTS OF THE HRA, THE CITY AND THE [3:18] PORT AUTHORITY ALL AT THE SAME TIME AND THE FINANCIAL STATEMENTS ARE ALL COMBINED [3:25] INTO ONE DOCUMENT. SO ONE SET OF REPORTS IS ISSUED BY US THAT COVERS ALL [3:32] THREE ORGANIZATIONS. SO WITH THAT WE ISSUE AN OPINION ON THE FINANCIAL STATEMENTS A REPORT ON [3:37] INTERNAL CONTROLS, A REPORT ON MINNESOTA LEGAL COMPLIANCE, A [3:43] REPORT ON FEDERAL COMPLIANCE ALTHOUGH FOR 2023 THE MAJOR FEDERAL PROGRAMS ARE AUDITED [3:51] DID NOT INVOLVE HRA DOLLARS AND THEN FINALLY A COMMUNICATION LETTER TO THOSE [3:57] CHARGED WITH GOVERNANCE OR THEIR BOARD OF COMMISSIONERS. [4:02] A QUICK OVERVIEW OF THE RESULTS AND UNMODIFIED OPINION OR A CLEAN OPINION WAS ISSUED NO INTERNAL CONTROL OR LEGAL [4:11] COMPLIANCE FINDINGS AND JUST STANDARD COMMUNICATIONS WITH THOSE CHARGED WITH GOVERNANCE. SO OVERALL YOU PASSED GOOD [4:19] NEWS NOTHING MAJOR TO REPORT LOOKING BACK AT 2022 EACH YEAR [4:25] THERE'S THE CITY ALONG WITH THE VARIOUS FINANCIAL STATEMENTS THERE SUBMITTED TO THE GOVERNMENT FINANCE OFFICERS ASSOCIATION AND FOR [4:33] THE 52ND CONSECUTIVE YEAR THE CITY AND THE HRA AND THE PORT THEIR FINANCIAL STATEMENTS [4:38] WERE AWARDED A CERTIFICATE OF ACHIEVEMENT IN FINANCIAL REPORTING SO VERY FEW I THINK [4:44] IT MIGHT BE JUST FIVE OTHER ORGANIZATIONS IN THE UNITED STATES HAVE RECEIVED THE AWARD FOR THAT MANY YEARS SO IT'S [4:51] SOMETHING YOU CAN DEFINITELY BE PROUD OF . SO THE OPINION ON THE [4:56] FINANCIAL STATEMENTS WHAT WE DO WE AUDIT THE FINANCIAL STATEMENTS THIS LARGE DOCUMENT [5:03] HERE AND TO DETERMINE THAT THE FINANCIAL STATEMENTS ARE NOT DISCLOSURES ARE MATERIALLY PRESENTED. SO WHAT THAT MEANS IS WE ARE [5:09] NOT AUDITING EVERY SINGLE TRANSACTION. THE GOAL OF THE AUDIT IS NOT [5:15] TO GUARANTEE THAT EVERYTHING IS FAIRLY STATED DOWN TO THE PENNY BUT RATHER WE ARE RESPONSIBLE FOR DETECTING ANY [5:23] MATERIAL MISSTATEMENTS OR THOSE THAT MIGHT BE AFFECT THE DECISIONS OF THE FINANCIAL STATEMENT USER. [5:31] SO WE LOOK FOR KIND OF THREE PRIMARY TECHNIQUES. OCCURRENCE IS EVERYTHING THAT [5:37] HAS BEEN INCLUDED IN THIS DOCUMENT DOES IT OCCUR TO THE AND PERTAIN TO THE HRA [5:44] CONVERSELY IS EVERYTHING THAT WAS SUPPOSED TO BE INCLUDED INCLUDED OR COMPLETENESS AND THEN ALSO ACCURACY CUT OFF [5:52] CLASSIFICATIONS MAKING SURE AMOUNTS ARE RECORDED IN THE CORRECT FUND AND THEN THE CORRECT YEAR CORRECT ACCOUNT THOSE TYPES OF THINGS WE WE [6:00] USE A VARIETY OF AUDITING TECHNIQUES SUCH AS TRACING TO INVOICE AND SOURCE [6:07] DOCUMENTATION OR ANALYTICAL PROCEDURES CERTAIN DATA ANALYSIS ALL TO ACCOMPLISH THE [6:12] OBJECTIVE. SO AGAIN THE RESULTS A CLEAN OR UNMODIFIED AUDIT OPINION [6:18] AND JUST ONE MORE THING TAKING A STEP BACK THERE ARE SOME [6:25] MORE GLOBAL RISKS WE WE THINK OF AND DESIGNER AUDIT TOWARDS WHEN WE WE CONDUCTED THREE [6:33] RISKS WERE IDENTIFIED DURING PLANNING AND THESE DO NOT PERTAIN SPECIFICALLY TO THE [6:38] HRA BUT MORE TO AUDITS IN GENERAL THE RISK OF MANAGEMENT OVERRIDE [6:44] OF CONTROLS SAY A PERSON IN AUTHORITY BYPASSING THE POLICIES AND PROCEDURES. SO THAT'S ALWAYS A RISK THE [6:52] RISK OF INAPPROPRIATE OR UNAUTHORIZED DISBURSEMENTS. AND THEN THE THIRD ONE IS [6:57] FAIRLY TECHNICAL BUT IT RELATES TO MATCHING UP GRANT DOLLARS ON THE REVENUE SIDE [7:03] WITH GRANT EXPENDITURES MAKING SURE THOSE ARE BOTH RECORDED KIND OF HAND IN HAND. [7:08] SO WE DID NOT NOTE ANY ISSUES WITH THOSE RISKS BUT THOSE ARE ALWAYS SOMETHING WE'RE LOOKING [7:14] FOR AS WE CONDUCT THE AUDIT NEXT SIMILAR TO THAT A REPORT AN INTERNAL CONTROLS WE GAIN [7:22] AN UNDERSTANDING OF THE AREAS INTERNAL CONTROLS OR OTHER POLICIES AND PROCEDURES FOR EXAMPLE WE'RE LOOKING FOR [7:30] PROPER APPROVAL FOR DISBURSEMENTS APPROVAL OF A BANK RECONCILIATION IDEAL SEGREGATION OF DUTIES MEANING [7:38] NO ONE PERSON HAS TOO MUCH POWER OR AUTHORITY THAT THERE'S A PROPER CHECKS AND [7:45] SYSTEM OF CHECKS AND BALANCES IN PLACE AND ALSO ON THE BACK END THEN REVIEW OF FINANCIAL [7:50] INFORMATION AND TO DETECT ERRORS THE RESULTS NO INTERNAL [7:55] CONTROL FINDINGS THE STATE AUDITOR'S OFFICE ISSUES A RATHER LENGTHY GUIDE THAT WE [8:04] COMPLETE AS PART OF THE OFFICE AS PART OF THE AUDIT TO VERIFY THE HRA IS COMPLYING WITH STATE STATUTES. [8:11] THERE'S SEVEN SECTIONS AS PART OF THIS GUIDE SO WE'RE TESTING A VARIETY OF TRANSACTIONS AND [8:18] STATUTES TO VERIFY COMPLIANCE WITH THOSE STATE STATUTES AS PART OF THE AUDIT AND THE [8:24] RESULT NO LEGAL COMPLIANCE FINDINGS. [8:31] THE LAST REPORT IS A LETTER OF STANDARD COMMUNICATIONS REQUIRED BY THE AUDITOR TO THOSE CHARGED WITH GOVERNANCE [8:38] . A FEW OF THE HIGHLIGHTS THERE WAS ONE NEW ACCOUNTING STANDARD IMPLEMENTED FOR 2023 BUT IT ACTUALLY DID NOT HAVE AN EFFECT ON THE FINANCIAL [8:46] STATEMENTS. THERE ARE A FEW ACCOUNTING ESTIMATES IN THE FINANCIAL STATEMENTS BUT NOTHING ALL THAT SENSITIVE. [8:54] I'M HAPPY TO REPORT THAT THERE WERE NO DIFFICULTIES ENCOUNTERED WILL CONDUCT IN THE AUDIT. THE STAFF WERE WELL-PREPARED [9:01] FOR US AT THE START TIME AND WE DIDN'T ENCOUNTER ANY DISAGREEMENTS OR ANYTHING LIKE THAT AND WE DID NOT DETECT ANY [9:09] MATERIAL MISSTATEMENTS WHEN CONDUCT IN THE AUDIT. [9:15] JUST A QUICK SUMMARY TAB OF THE FINANCIAL ACTIVITY FOR 2023. YOU CAN SEE THE REVENUES AND [9:23] EXPENDITURES THERE AND THEN A TRANSFER FROM GOVERNMENTAL FUNDS TO THE ENTERPRISE FUNDS THEN AN OVERALL CHANGE IN FUND [9:31] BALANCE OF 2.5 MILLION BRINGING THE TOTAL FUND BALANCE TO 21 MILLION BUT MOST [9:39] OF THAT IS RESTRICTED FOR HOUSING OR VARIOUS PROGRAMS OF THE HRA. AND THEN LASTLY JUST A FEW [9:47] HIGHLIGHTS. THE PORT AUTHORITY DEVELOPMENT FUND WAS CREATED WITH A $1.4 MILLION CONTRIBUTION FROM THE [9:52] HRA DURING 2023 AND AS A RESULT OF SELLING THE DAYS INN [10:01] PROPERTY 6.4 OR $5 MILLION OF BONDS WERE PAID OFF THAT 18 C IN THE 28 BONDS AND THEN THE [10:08] IN THE PROPERTY MANAGEMENT FUND IT'S THE IT'S A LITTLE DECEIVING ACTUALLY THIS MIDDLE COLUMN THERE THE 1 MILLION TO [10:17] 87 SHOWS AN INCREASE IN FUND BALANCE OR EQUITY WHILE ALMOST [10:22] $1.4 MILLION OF LOANS WERE FORGIVEN. SO THAT'S INCLUDED IN THAT REVENUE NUMBER. SO THAT THAT'S ONE TIME A ONE [10:30] TIME BUMP I'M SO THAT'S IMPORTANT TO NOTE THAT IT'S NOT YOU NORMALLY ARE [10:39] $1,287,000 INCREASE EVERY YEAR BUT WITH THAT ALL IN ALL GOOD [10:44] RESULTS AND I'D BE HAPPY TO ANSWER ANY QUESTIONS. THANK YOU VERY MUCH. ARE THERE ANY QUESTIONS HERE? [10:51] NO QUESTIONS. WE'D BE LOOKING FOR A MOTION [10:56] TO ACCEPT THE HOUSING AND REDEVELOPMENT AUTHORITY ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR CALENDAR YEAR 2023. [11:03] WE WOULD JUST SAY WE HAVE A MOTION BY COMMISSIONER WOOTEN SECOND AND A SECOND BY COMMISSIONER MOUA TO ACCEPT [11:11] THE IT THE HOUSING AND REDEVELOPMENT AUTHORITY ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR CALENDAR YEAR 2023. IS THERE ANY DISCUSSION [11:18] HEARING? NO DISCUSSION ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I I OPPOSED MOTION [11:25] PASSES SIX ZERO THANK YOU VERY MUCH FOR YOUR TIME TONIGHT. YOU'RE WELCOME. WELL NOW MOVING ONTO NEW BUSINESS ITEM 5.1 IS THE [11:33] REQUEST FOR EXTENSION OF MATURITY DATE FOR LOAN AGREEMENTS BETWEEN THE HOUSING REDEVELOPMENT AUTHORITY AND [11:40] BLOOMINGTON SOUTH VIEW LIMITED PARTNERSHIP AND METROPOLITAN COUNCIL LOCAL HOUSING INCENTIVE ACCOUNT LOCAL MATCH RELATED TO SUBSTANTIAL [11:47] REHABILITATION OF SOUTHVIEW ESTATES MAY WE HAVE THE STAFF REPORT CHEROKEE COMMISSIONERS APOLOGIZE FOR THAT TITLE. [11:56] THIS IS AN ITEM RELATED TO SOUTH ESTATES WHICH THE DEVELOPER OF THIS PROPERTY HAS COME TO THE CITY TO MAKE SOME [12:04] FINANCIAL REQUESTS ASSOCIATED WITH THEIR RECENT APPLICATION TO MINNESOTA HOUSING'S CONSOLIDATED RFP NEXT SLIDE OH [12:11] WE HAVE THIS CALL SO SALVIA ESTATES THIS IS A MULTI-FAMILY RESIDENTIAL PROPERTY WITHIN [12:19] BLOOMINGTON. IT WAS ORIGINALLY DEVELOPED WITH LOW INCOME HOUSING TAX CREDITS AND ASSISTANCE FROM THE HRA IN 2002 THE PROJECT [12:29] HAS BEEN OPERATING AS AFFORDABLE. IT'S 80% AFFORDABLE SO THAT'S [12:36] 80% OF ITS 43 I'M SORRY 47 UNITS. SO 37 OF THOSE UNITS ARE AFFORDABLE AND THAT'S BEEN AT [12:43] THE 60% AREA MEDIAN INCOME RENT LEVEL IN 2020 THE PROJECT [12:49] REFINANCED AND THE HRA IS SUBORDINATED IT'S TWO LOANS SO THOSE WERE STILL IN PLACE BUT [12:56] THE 30 YEAR AFFORDABILITY PERIOD THAT THE LOW INCOME HOUSING TAX CREDIT PROGRAM REQUIRES WILL BE ENDING [13:02] IN 2033 AT WHICH POINT THIS PROJECT WOULD BECOME AT RISK AS ANY OTHER LOW TECH PROJECT [13:10] IS FOR LOSING IT'S AFFORDABILITY THAT COULD OCCUR IF FOR EXAMPLE, THE PROPERTY MANAGER DECIDES TO SELL THE [13:15] PROJECT. IT'S BOUGHT BY A MARKET RATE PROPERTY MANAGER WHO REHABS [13:22] THE PROJECT AND INCREASES TO A MARKET RATE RENT. SO THAT'S SOMETHING THAT'S OCCURRED AND IS DEFINITELY A [13:27] RISK FOR THESE TYPES OF PROPERTIES. THE DEVELOPER AS I MENTIONED [13:33] THIS IS SAN COMPANIES AND THEY'VE COME THEY'VE APPLIED TO MINNESOTA HOUSING TO CONDUCT A $3.4 MILLION [13:40] REHABILITATION PROGRAM AT THE PROPERTY THE AND I SHOULD SAY I BELIEVE I SAW THE DEVELOPER [13:55] WALK IN SO IF AT ANY POINT WE WANT TO ASK SOME QUESTIONS I BELIEVE THEY'RE WILLING TO TAKE SOME QUESTIONS FROM THE BOARD. SO I JUST WANTED TO ADD THAT BUT THEY'VE PROVIDED A LOT OF INFORMATION TO ME THAT I [14:01] USE TO PUT TOGETHER THE PRESENTATION AND STAFF REPORT. SO AS PART OF THAT REHABILITATION PROJECT WE WOULD SEE A FULL PROJECT [14:07] TAKING PLACE OVER 12 MONTHS STARTING IN EARLY 2025 IF FUNDING IS AWARDED THE PROPOSED SCOPE IS EXTENSIVE [14:14] AND WOULD BE ASSESSED ON A UNIT BY UNIT BASIS. SO SOME OF THE NEEDS THAT MAY ARISE FOR THE INTERIOR OF THE [14:22] UNITS WOULD BE FLOORING, CABINETRY, COUNTERTOPS, BATHROOM VANITIES, AIR CONDITIONERS IN UNIT APPLIANCES, ENERGY SAVING [14:30] IMPROVEMENTS AND THE LIST CONTINUES. THE REHAB WOULD TAKE PLACE ONCE MATERIALS WERE SECURED ON [14:38] SITE AND THERE WOULD BE EVERY INTENTION OF KEEPING THE UNIT THE RESIDENTS IN PLACE WITHIN THEIR UNIT. BUT IF THE RENOVATION PROJECT [14:45] MADE BATHROOM OR KITCHENS UNAVAILABLE THEN HOUSING WOULD BE SECURED FOR THOSE RESIDENTS [14:53] OFF SITE UNTIL THEY COULD BE MOVED BACK IN THERE WOULD ALSO BE EXTERIOR REHABILITATION WHICH COULD INCLUDE DRAINAGE [15:00] AND GRADING ROOFING GUTTERS, WINDOWS, EXTERIOR DOORS, LIGHTING PARKING LOTS, SIDEWALKS, ACCESSIBILITY [15:05] IMPROVEMENTS TO THE COMMUNITY ROOM HVAC UPGRADES INCLUDING REPLACEMENT OF A SYSTEM THAT'S [15:13] ORIGINAL TO THE BUILDING AND INSPECTION OF ALL OF THE SMOKE AND CO DETECTORS. SO THE EXTERIOR WORK WOULD [15:21] ALSO OCCUR SIMULTANEOUSLY TO THE INTERIOR WORK SO EXTENSIVE AND THAT'S ALL ENCOMPASSED WITHIN THAT $3.4 MILLION [15:27] PROJECT COST. SO SAN COMPANY IS HAS COME TO THE CITY OF BLOOMINGTON AND THE HRA TO MAKE SOME FINANCIAL [15:34] ASSISTANCE REQUESTS WHICH WOULD BOLSTER THE COMPETITIVENESS OF THEIR REQUESTS TO MINNESOTA HOUSING. SO THEY'LL BE WITHIN THIS CONSOLIDATED HOUR OF PEOPLE [15:42] WHICH IS A COMPETITIVE POOL THEY'LL BE COMPETING AGAINST OTHER PROJECTS WITHIN THE TWIN CITIES REGION FOR THAT FUNDING [15:50] AND IF THE NATURE AND THE CITY OF BLOOMINGTON ARE ABLE TO SUPPORT THIS PROJECT IT WILL INCREASE THEIR COMPETITIVE [15:57] NESS BY DEMONSTRATING LOCAL SUPPORT. IF THIS PROJECT IS SUCCESSFUL IN RECEIVING FUNDING THEY HAVE COMMITTED TO EXPANDING AND [16:05] DEEPENING THE AFFORDABILITY THAT THE PROJECT CURRENTLY OFFERS. I'LL SPEAK MORE TO THAT LATER [16:10] AS WELL AS SETTING ASIDE SOME UNITS FOR SOME SPECIFIC VULNERABLE POPULATIONS AND THEY WOULD ALSO COMMIT TO A 50 [16:17] YEAR AFFORDABILITY TERM STARTING IN THE PERIOD THAT THE FUNDING IS AWARDED. SO THAT COULD EXTEND OUT TO [16:24] 2076 WHICH WOULD BE A GAIN OF 43 YEARS FROM THE CURRENT REQUIREMENT. [16:29] SO LET'S GET INTO WHAT THESE FINANCIAL REQUESTS ARE. THERE IS TO SPECIFIC REQUESTS [16:37] AND THEN A MORE GENERAL REQUEST. SO FIRST WE HAVE AN EXTENSION OF THE MATURITY DATES FOR THE [16:45] TWO AID HRA EXCUSE ME HRA DEFERRED LOANS WHICH WERE ORIGINALLY SIGNED WITH THE PROPERTY IN SEPTEMBER OF 2002 [16:52] . ONE OF THOSE LOANS IS $465,000 WITH A 3% INTEREST RATE AND [16:59] THE OTHER IS A $150,000 LOAN WITH A 0% INTEREST RATE. [17:05] THE $150,000 LOAN WAS A MET COUNCIL GRANT THAT THE CITY RECEIVED THROUGH THE LIVABLE [17:13] COMMUNITIES ACT LOCAL HOUSING INCENTIVES ACCOUNT BACK IN 2002 WHICH AT THAT TIME REQUIRED A DOLLAR FOR DOLLAR [17:20] MATCH THAT THE HRA PROVIDED IN THE FORM OF THAT $165,000 LOAN. SO THE REQUEST WOULD BE TO [17:27] EXTEND THE MATURITY DATE OF BOTH OF THOSE LOANS BY 30 YEARS AND WE'LL TALK MORE ABOUT THAT IN DETAIL. [17:34] THE OTHER REQUEST IS TO AGREE TO MATCH DOLLAR FOR DOLLAR A METROPOLITAN COUNCIL LEVEL LIVABLE COMMUNITIES ACT LOCAL [17:42] HOUSING INCENTIVES ACCOUNT PROGRAM AWARD AND SO THAT'S THE SAME AWARD THAT THIS PROJECT GOT BACK IN 2002. [17:48] THEY HAVE APPLIED AGAIN FOR THAT AWARD THROUGH THE RFP AND THAT AWARD COULD BE SOMEWHERE [17:56] BETWEEN 100,000 AND 500,000. SO WHAT WE WOULD BE AGREEING TO AT THIS POINT IN TERMS [18:03] OF BOTH OF THESE REQUESTS IS TO SHOW SUPPORT THAT THE HRA AND THE CITY IS WILLING TO [18:10] MOVE FORWARD WITH THESE FINANCIAL ASSISTANCE OPTIONS. THIS WOULD BE COMMUNICATED TO [18:16] MINNESOTA HOUSING BUT JUST TO BE CLEAR STAFF WOULD COME BACK IF THE FUNDING IS AWARDED [18:22] STAFF WOULD COME BACK TO DO THE SAME TYPE OF LOAN NEGOTIATION AND PRESENTATION OF A LOAN AMENDMENT THAT WOULD [18:29] BE DONE TYPICALLY SO THESE ITEMS WOULD BE RETURNING. SAME WITH THE DOLLAR FOR DOLLAR MATCH WE WOULD STILL [18:35] NEED TO ALLOCATE OR WE WOULD NEED TO IDENTIFY AND ALLOCATE [18:41] FUNDING THAT WOULD PROVIDE THIS MATCH AND IN WHAT FORM SO IT COULD BE THE SAME THAT WE DID PREVIOUSLY WHICH IS AN [18:48] INTEREST BEARING LOAN. IT COULD COME IN THE FORM OF A GRANT OR SOMETHING ELSE AND THEN FINALLY I MENTIONED A MORE OPEN ENDED REQUEST THE [18:55] DEVELOPER HAS INFORMED US THAT DEPENDING ON HOW THE FUNDING ROUND GOES IF MINNESOTA HOUSING DOESN'T MEET THEIR [19:01] FULL REQUEST THERE MAY STILL BE A GAP THAT THEY WOULD COME BACK TO THE CITY OR HRA TO ASK [19:08] FOR ASSISTANCE IN CLOSING. SO THAT'S JUST KEEPING THE DOOR OPEN IF ADDITIONAL SUBSIDY IS NEEDED BUT AGAIN [19:15] THAT'S JUST A BROAD REQUEST. SO TO GET INTO MORE DETAIL ON THE LOAN MATURITY DATE EXTENSIONS, WE'VE GOT THIS [19:24] LITTLE TIMELINE HERE. THERE'S ACTUALLY TWO PROPOSED OPTIONS FOR WHAT THAT DATE COULD BE EXTENDED TO. [19:30] SO JUST MOVING ACROSS THIS TIMELINE, THE LOANS WERE INITIALLY EXECUTED IN 2002. [19:36] I'VE PUT THE DATE SPECIFICALLY OF THE INTEREST BEARING LOAN WHICH WAS SEPTEMBER 12TH. [19:43] TODAY WE'RE MEETING TO CONSIDER THESE REQUESTS AND AS MENTIONED BEFORE THE AFFORDABILITY OF THE PROJECT [19:50] AS WELL AS THESE LOANS COMES UP DUE IN OCTOBER 31ST [19:56] OF 2033. SO THAT'S WHERE THE LOAN IS CURRENTLY STANDING TO CALL FOR REPAYMENT. [20:03] THE FIRST OPTION FOR AN EXTENSION WOULD BE 30 YEARS A 30 YEAR LOAN EXTENSION FROM [20:09] 2024. SO THAT WOULD BE THE END OF THIS YEAR PENDING THE PROJECT RECEIVING FUNDING FROM MINNESOTA HOUSING THE LOAN [20:17] EXTENSION DATE WOULD BE DECEMBER 31ST DECEMBER 31ST [20:22] OF 2015 FOR THE SECOND OPTION WOULD BE A 30 YEAR LOAN EXTENSION FROM THE DATE THAT THE LOANS ARE CURRENTLY SET TO [20:29] EXPIRE. SO THAT'S THAT 2033 WE WOULD BE EXTENDING 30 YEARS FROM THAT DATE OUT TO OCTOBER 31ST [20:36] OF 2063 AND THEN YOU CAN SEE THE PROPOSED AFFORDABILITY EXTENSION THAT THIS PROJECT WOULD COMMIT TO IF THEY GET [20:43] FUNDING IS OUT TO OCTOBER 31ST OF 2017 FOR SO I WANTED TO [20:48] SHOW SPECIFICALLY FOR THE LOAN THAT IS INTEREST BEARING WHAT [20:56] THE AREA WOULD BE COMMITTED TO ESSENTIALLY IN TERMS OF ALLOWING ACCRUAL WITH [21:03] INTEREST. SO AT THIS POINT AS OF DECEMBER 31ST OF LAST YEAR [21:11] WE HAD ACCRUED $144,000 APPROXIMATELY OF INTEREST ON [21:16] TOP OF THE $165,000 LOAN. THE LOAN IS CURRENTLY AT AT [21:23] ITS CURRENT MATURITY DATE THAT INTEREST WILL HAVE ACCRUED UP TO $249,000. SO WHEN THE LOAN COMES TO ITS [21:29] MATURITY DATE, THAT FULL AMOUNT WOULD BE CALLED FOR REPAYMENT AT 165 PLUS THE 249 [21:36] THE FIRST MATURITY DATE EXTENSION OPTION FOR 2054 WOULD ALLOW INTEREST TO ACCRUE [21:43] UP TO $609,000 AND THEN YOU CAN SEE IF WE ALLOW FOR THAT LATER DATE OF 2063 YOU'D BE [21:50] LOOKING AT $840,000 OF INTEREST. AND SO SINCE THIS IS A DEFERRED PAYMENT LOAN, THERE [21:56] HAVEN'T BEEN MONTHLY PAYMENTS FOR THIS. SO THAT'S WHY THIS INTEREST IS ACCRUING AND IT'S COMPOUNDING [22:02] ON THAT BALANCE. SO THAT'S WHY YOU'RE GETTING AN ACCELERATED ACCRUAL OF INTEREST AS WELL. [22:07] I WANTED TO SPEAK SPECIFICALLY TO BASICALLY WHAT THE RESIDENTS OF BLOOMINGTON ARE [22:12] GETTING OUT OF THIS REHAB PROJECT AND OUT OF SUPPORT FROM THE CITY OF BLOOMINGTON. [22:19] SO ON THE LEFT TABLE YOU'LL SEE THE CURRENT AFFORDABILITY THAT'S AS I MENTIONED THE 37 [22:26] UNITS AFFORDABLE AT 60% EMI AND THERE'S ALSO TEN MERCURY UNITS IN THE BUILDING. THE PROPOSED AFFORDABILITY [22:32] WOULD BE 13 UNITS AT THE 30% AND HIGH LEVEL. SO THAT'S THAT DEEPEST LEVEL [22:39] OF FOUR OF AFFORDABILITY THAT WE TALK ABOUT FREQUENTLY AS A GREAT NEED IN BLOOMINGTON AND THE REGION THERE WOULD ALSO BE [22:45] 21 UNITS SET AT 21 UNITS AT THE 50% AMI RENT LEVEL WHICH [22:51] WOULD ALLOW HOUSEHOLDS EARNING UP TO 60% OF THE AREA MEDIAN INCOME TO RENT AFTER TEN [22:57] YEARS. THOSE RENTS WOULD ALSO RAMP UP TO THE 60% AND HIGH LEVEL SO [23:03] THERE'S 13 UNITS THAT WOULD START AT THAT LEVEL THE 60% MY UNIT RENT LEVEL FOR HOUSEHOLDS [23:09] EARNING 60% AMI AND THERE WOULD BE NO MARKET RATE UNITS SO EARLIER I MENTIONED THAT THERE WOULD BE INCREASED ACCESS FOR CERTAIN VULNERABLE [23:17] COMMUNITIES. THOSE ARE WITHIN THAT FIRST COLUMN OF THE SECOND TABLE SET ASIDES SO FOUR UNITS WOULD BE [23:23] SET ASIDE FOR HIGH PRIORITY HOMELESS AND THESE ARE DESIGNATIONS THAT THE [23:29] MINNESOTA HOUSING SETS SO HIGH PRIORITY HOMELESS ARE HOUSEHOLDS THAT ARE PRIORITIZED FOR PERMANENT [23:35] SUPPORTIVE HOUSING THROUGH THE COORDINATED ENTRY SYSTEM. SO BLOOMINGTON WORKS WITH THE HENNEPIN COUNTY COORDINATED [23:41] ENTRY SYSTEM TO GET HOUSING FOR PEOPLE THAT ARE ON THAT WITHIN THAT SYSTEM. SO THESE UNITS WOULD BE SET ASIDE FOR HOUSEHOLDS COMING [23:49] FROM THAT SYSTEM AND THEN THERE WOULD ALSO BE SIX SET ASIDES FOR PEOPLE WITH DISABILITIES WHICH IS A PROGRAM SERVING LOW INCOME [23:57] PEOPLE WITH DISABILITIES WHO ARE NOT HOMELESS AND WHO RECEIVE OR ARE ELIGIBLE TO RECEIVE MAINSTREAM SERVICES. [24:02] SO THAT WOULD BE LIKE FINANCIAL SUBSIDY RENT SUBSIDY THROUGH THE COUNTY. [24:07] SO THAT'S TEN OF THOSE 30% UNITS THEN THE FINAL THREE WOULD BE OPEN FOR RENT ON THAT [24:15] . NOW SET ASIDE FOR THOSE THREE UNITS. SO ONE THING I WANT TO TALK ABOUT IN THIS PRESENTATION IS [24:23] WHAT CAN THE CITY AND THE HRA DO TO BE MORE PROACTIVE IN ASSURING THAT ARE [24:30] AFFORDABLE PROPERTIES WITHIN THE CITY ARE ABLE TO MAINTAIN THEIR AFFORDABILITY, THEIR [24:37] IN THIS CASE THE DEVELOPER WAS ABLE TO REACH OUT TO THE CITY TO TRY AND PARTNER TO IMPROVE THEIR AFFORDABILITY BUT THAT'S [24:44] MORE OF A REACTIVE POSITION THAT THE CITY IS IN IN THAT CASE. [24:49] SO WHAT ARE SOME PROACTIVE STEPS THAT WE CAN TAKE? ONE IS WORKING WITH MINNESOTA [24:54] HOUSING TO CONDUCT AN ANNUAL REVIEW OF THE LOW INCOME HOUSING TAX CREDIT OWNERS CERTIFICATION OF COMPLIANCE. [25:00] THESE ARE REPORTS THAT PROPERTY MANAGERS SUBMIT EVERY YEAR TO MINNESOTA HOUSING WERE ABLE TO DO A DATA REQUEST TO [25:07] REVIEW THOSE REPORTS AND IDENTIFY IF ANY PROPERTIES ARE HAVING COMPLIANCE ISSUES IN WHICH CASE THE CITY COULD [25:12] REACH OUT TO OFFER SUPPORT AND FIGURE OUT WHAT NEEDS ASSISTANCE TO GET BACK INTO [25:18] COMPLIANCE. WE COULD ALSO RAMP UP OUTREACH THROUGH THOSE REPORTS WE COULD IDENTIFY WHICH PROJECTS ARE REACHING THEIR THE END [25:26] OF THEIR USE PERIOD FOR AFFORDABILITY AND TRY AND BE INTENTIONAL IN PARTNERING WITH THOSE PROPERTIES AND LOOKING [25:31] FOR AFFORDABILITY PRESERVATION MEASURES SUCH AS WHAT WE'RE [25:37] DOING NOW WITH SOUTHVIEW ESTATES AND SOME OTHER PROGRAMMATIC CHOICES THAT COULD BE MADE THROUGH A TRADE [25:45] POTENTIALLY THROUGH THE HRA WOULD BE ESTABLISHING A MULTIFAMILY RESIDENTIAL REHAB LOAN PROGRAM. IT COULD BE ALLOCATING ADDITIONAL FUNDING FOR A [25:52] PRESERVATION THROUGH THE AFFORDABLE HOUSING TRUST FUND . THERE COULD BE PROPERTY MANAGER OUTREACH FOR NEWER [25:57] PROPERTIES WHICH I SHOULD DISTINGUISH AS SEPARATE FROM THE PROPERTY THAT WE'RE [26:03] CONSIDERING TODAY. THIS PROPERTY IS A NATURALLY OCCURRING AFFORDABLE HOUSING PROPERTY BECAUSE IT RECEIVED SUBSIDY IN ITS INITIAL [26:11] DEVELOPMENT SO IT HAS AFFORDABILITY RESTRICTIONS IN PLACE THAT MEANS IT'S NOT A KNOW A PROPERTY. [26:16] SO THERE'S KIND OF TWO CATEGORIES OF PROJECT OF PROPERTIES THAT HAVE AFFORDABILITY AND WE CAN BE [26:22] PROACTIVE IN ENSURING THE PRESERVATION OF AFFORDABILITY FOR BOTH TYPES. ANOTHER OPTION WOULD BE COLLABORATING INTERNALLY AND [26:29] COMMUNITY DEVELOPMENT WITH OUR ENVIRONMENTAL HEALTH DIVISION . THEY WORK WITH THESE PROPERTIES OF COURSE FOR OUR [26:36] RENTAL LICENSING PROGRAM THEY'RE ABLE TO IDENTIFY IF THESE PROPERTIES ARE HAVING QUALITY ISSUES THAT MIGHT NEED SOME REHAB FUNDING SO WE CAN [26:44] WORK INTERNALLY TO COLLABORATE ON OUTREACH IN THAT CASE. AND THEN FINALLY I JUST WANTED [26:50] TO MENTION WE ARE AT THIS POINT PARTICIPATING IN SOME REGIONAL WORK GROUPS. [26:55] WE'RE NOT THE ONLY COMMUNITY EXPERIENCING THIS PROBLEM. THERE ARE SUBSIDIZED PROJECTS ALL ACROSS THE REGION THAT ARE [27:01] REACHING THE END OF THAT AFFORDABILITY PERIOD AND THIS IS KIND OF IT'S NOT A NEW PROBLEM BUT IT'S A PROBLEM [27:06] THAT'S GOING TO GROW AS THE THERE'S THERE'S MORE PROJECTS THAT ARE COMING TO TERM NOW [27:12] THAN EVER BASICALLY. SO PARTNERING WITH OUR REGIONAL COLLABORATORS TO FIGURE OUT WHAT THESE SOLUTIONS CAN BE. [27:19] SO FINALLY THERE ARE SOME STAFF REQUESTS THAT WE WOULD LIKE SOME HRA BOARD DIRECTION [27:27] AND THIS IS IN ADDITION TO THE BEST OF WHAT YOU'RE CONSIDERING WHICH IS TO SUPPORT OR NOT SUPPORT THESE FINANCIAL ASSISTANCE REQUESTS [27:34] FROM THE DEVELOPER. BUT MORE SPECIFICALLY I MENTIONED THERE ARE TWO OPTIONS FOR THE EXTENSION OF MATURITY DATES SO STAFF IS [27:43] LOOKING FOR DIRECTION ON WHICH OF THESE TO SUPPORT THE 2054 WHICH WOULD BE A 30 YEAR EXTENSION FROM THE PROJECT [27:49] RECEIVING FINANCING FROM MINNESOTA HOUSING WHICH COULD BE THIS YEAR AND NEXT YEAR OR [27:55] A FUTURE YEAR IF THEY DON'T RECEIVE THE FUNDING IMMEDIATELY OR IT COULD BE [28:00] 2063 WHICH WOULD BE 30 YEARS FROM THE CURRENT MATURITY DATE OR YOU COULD CHOOSE TO NOT SUPPORT THAT EXTENSION. [28:06] AND THEN THE OTHER QUESTION IS SHOULD THE BLOOMINGTON HRA COMMITTEE COMMUNICATE TO [28:12] MINNESOTA HOUSING IN THE MET COUNCIL THAT ITS ABILITY TO MEET THAT LOCAL MATCH REQUIREMENT CAN ONLY GO UP TO A CERTAIN LEVEL? [28:20] SO I TOLD YOU IT'S ANYWHERE BETWEEN 100000 TO 500000. THAT'S A PRETTY BROAD RANGE. WOULD THE HRA WANT TO BASICALLY SAY WE CAN ONLY GO [28:28] UP TO A CERTAIN AMOUNT? WHAT AMOUNT WOULD THAT BE? IS THE HRA WILLING TO SUPPORT ANY AMOUNT? AND AT THIS POINT WE COULD [28:33] ALSO START DISCUSSING SPECIFIC FUNDS THAT WE WOULD WANT TO [28:38] ALLOCATE FOR THAT MATCH. SO THAT IS THE PRESENTATION AND I'M OPEN TO QUESTIONS AND I AGAIN I THINK THE DEVELOPER [28:46] IS HERE AND WILLING TO TAKE QUESTIONS AS WELL. THANK YOU. THANK YOU VERY MUCH. QUESTIONS COMMISSIONER WOOTEN [28:53] SO I WANTED TO GO ON RECORD THAT I ASKED STAFF A COUPLE OF QUESTIONS BEFORE THE MEETING AND THE TWO QUESTIONS [28:58] I ASKED WAS ARE WE APPROVING THIS LOAN WITH NO OTHER OBLIGATION FOR MONEY TO THE [29:05] PROJECT FROM HRA? AND THE SECOND QUESTION I ASKED WAS YOU MEAN TO THE [29:12] $72,000 FOR REHAB PER UNIT WHAT THAT ENTAILED? I KNOW YOU WENT OVER SOME [29:18] OF THAT SO I WANT TO READ IT IN RECORD BECAUSE I'D LIKE TO HAVE THE ANSWER ON RECORD CHAIR WHO AM COMMISSIONER [29:24] THANK YOU. YEAH. SO THE FIRST QUESTION THE TWO REQUESTS BEFORE THE HRA ARE [29:31] RELATED TO THE EXTENSION OF MATURITY DATES AND THE COMMITMENT TO A LOCAL MATCH. THE THERE WOULDN'T BE A [29:38] COMMITMENT TO ANY FURTHER FINANCIAL SUBSIDY BUT AS I DID MENTION THE DEVELOPER HAS ASKED THAT THE TRADE HAS [29:46] NOTIFIED US THAT THERE MAY BE A FINANCIAL GAP THAT THEY WOULD COME BACK TO ASK FOR ADDITIONAL SUBSIDY TO BUT FOR [29:51] THE PURPOSES OF THE DEVELOPER'S APPLICATION TO MINNESOTA HOUSING AND THESE [29:57] REQUESTS WE WOULD NOT BE COMMITTING TO ANY ADDITIONAL SUBSIDY. AND THEN TO THE SECOND QUESTION OF IT WAS WHAT WHAT [30:05] IS ENTAILED BY THE THE REHAB PROJECT. RIGHT AND I'M ACTUALLY LOOKING AT THE AMOUNT SEEM TO BE [30:10] PRETTY EXORBITANT LOOKING AT THAT AMOUNT THE QUALITY OF THE WORK THE EXTENSION OF THE THE [30:16] INVESTMENT IS IT FOR THE LIFE OF THE LOAN OVER THE NEXT 30 [30:22] YEARS OR THE NEXT 50 YEARS? YOU KNOW, WHAT DOES THAT REALLY MEAN? THANK YOU [30:33] . GOOD EVENING, MEGAN CARR I WORK WITH THE COMPANIES AND WE [30:38] REPRESENT THE OWNER HERE SO AS PART OF THE REHAB AND GOING [30:44] BACK TO MINNESOTA HOUSING WE HAD TO HIRE A THIRD PARTY CONSULTANT WHO CAME IN AND LOOKED AT 20 YEARS SO ANYTHING [30:50] THAT WOULD NOT THAT THE LIFE OF THE ITEM WOULD BE ADDED [30:58] LIFE EXPECTANCY WITHIN THE NEXT 20 YEARS SHOULD BE LOOKED AT TO BE REPLACED. SO WE WENT THROUGH A TOP TO BOTTOM ON THE BUILDING. [31:06] IT'S YOU KNOW, KIND OF A LITTLE BIT OF A GUESSING GAME BECAUSE TO GET THROUGH EVERY UNIT WOULD BE VERY ONEROUS ON [31:11] THE TENANTS AND ALSO TRYING TO FIGURE OUT YOU KNOW, 15 COUNTERTOPS. SO IT'S WE WENT THROUGH [31:17] SEVERAL UNITS, SEVERAL AREAS OF THE BUILDING TO SAY OKAY, IT LOOKS LIKE WE'RE GOING TO [31:22] HAVE TO REPLACE, YOU KNOW, MAYBE 25 TO 50% OF THE REFRIGERATORS OVER THE NEXT TEN YEARS. [31:27] IT'S LIKELY BASED ON APPLIANCE USE FOR LIFE, FOR EXAMPLE. THAT'S NOT GOING TO BE 20 YEARS. SO WE ANTICIPATED THAT WILL [31:35] REPLACE 100% OF THE APPLIANCES. NOW THAT WILL BE ON AN AS BASIS WHEN WE GO THROUGH EACH UNIT OTHER AREAS THAT WE [31:41] LOOKED AT SOME OF THE BATHROOM VANITIES WERE REALLY NEEDED TO BE REPLACED IN THERE SO WE [31:48] PLANNED FOR 100% OF THOSE. THE WINDOWS ARE ORIGINAL TO THE BUILDING SO WE PLAN TO REPLACE ALL OF THE WINDOWS [32:02] , SOME OF THE DRAINAGE AROUND THE BUILDING HAS SOME WATER COMING INTO THE GARAGE WHICH IS NOT THAT BIG OF A DEAL RIGHT NOW. BUT WE WANT TO FIX THAT AND MAKE THAT CRACK THAT DRAINAGE [32:08] FLOWING THE RIGHT WAY. I'M TRYING TO THINK SOME OF THE OTHER THAT WE LOOKED AT FLOORING WAS ANOTHER BIG ONE GOING INTO THE UNITS IT WAS [32:14] ORIGINALLY DESIGNED AND MANY APARTMENTS AT THIS TIME WERE DESIGNED THIS WAY THAT WHEN YOU WALK IN THERE WAS A SMALL [32:19] AREA FOR A LANDING THAT HAD HARD FLOORING AND THEN IT WAS CARPET RIGHT AWAY INTO THE [32:24] EATING AREA AND WHATNOT. SO OUR STANDARD PRACTICE NOW IS TO DO HARD FLOORING THROUGHOUT THAT SPACE. SO MANY OF THOSE CARPETS ARE [32:33] NEEDING TO WOULD BE REPLACED WITH HARD FLOORING DURING THIS PROCESS. TOILETS, FOR EXAMPLE, ARE AT [32:40] 1.6 GALLONS PER FLUSH AND SO WE WOULD LIKE TO REPLACE THOSE WITH 1.28. THOSE ARE JUST SOME IDEAS TO GIVE YOU AN IDEA. [32:46] SO BUT THE THIRD PARTY CONSULTANT IS THE ONE WHO CAME UP WITH THAT DOLLAR FIGURE TO BE ABLE TO DO THOSE. SO FOR CLARIFICATION, WE'RE [32:53] NOT TALKING ABOUT TOTAL WE HAVE OF EACH UNIT. WE'RE TALKING ABOUT SPECIFIC THINGS EACH UNIT. SO AGAIN I'M WONDERING THE [33:03] $72,000 PER UNIT IF EACH UNIT IS NOT BEING TOLD IT'LL BE PLACED IN A WAY THAT I'M COMING FROM. YEAH. SO THAT WOULD ALL BE SO FIRST [33:11] OF ALL IT WOULD ALL BE THROUGH AN AUDIT. SO MINNESOTA HOUSING REQUIRES AN AUDIT AT THE END OF THE PROJECT. SO WE WOULD GO THROUGH AND WE WOULD SAY OKAY UNIT ONE ON [33:18] ONE. I DON'T EVEN KNOW IF THAT'S A UNIT NUMBER IN THIS BUILDING BUT YOU KNOW 101 WE ARE GOING TO REPLACE ALL THE COUNTERTOPS. [33:23] WE'RE GOING TO REPLACE, YOU KNOW, THE CABINETS AND MAYBE SOME OF THOSE CABINETS WILL GET REUSED FOR UNIT ONE OR [33:30] TWO. THE FLOORING WILL GET REPLACED, THE TILES WOULD GO THROUGH EACH OF THOSE ITEMS. AND SO IF THERE WAS SOME LET'S SAY THERE WAS COST SAVINGS OR [33:37] COST OVERRUN, WE WOULD LOOK TO SEE FIRST OF ALL THERE'S COST OVERRUNS WHERE WE COULD MINIMIZE THOSE COST OVERRUNS. [33:43] IF THERE WERE COST SAVINGS WE WOULD LOOK TO WORK WITH HRA AND MINNESOTA HOUSING TO SAY OKAY HOW DO WE BALANCE THAT OUT? SO WE DON'T ANTICIPATE AND [33:51] WE'VE DONE QUITE A FEW RENOVATION PROJECTS AND WE'VE WORKED WITH OUR THIRD PARTY CONSULTANTS TO FIGURE OUT THE BEST TO YOU KNOW, KIND OF GET [33:59] AT A VERY GOOD NUMBER INITIALLY BUT THAT PROJECT WOULD GO TO BED IT WOULD BE [34:07] COMPETITIVELY BID AFTER WE WERE AWARDED THE FUNDING FROM MINNESOTA HOUSING YOU'RE LOOKING AT LIKE I'M SORRY YOU KNOW YOU'RE LOOKING AT A LIFE [34:12] EXPECTANCY OF 20 YEARS THAT'S WHAT IS ON THE CURRENT ANALYSIS THAT MINNESOTA [34:17] HOUSING REQUIRES. WE HAVE TO LOOK AT WHAT WHAT IS WHAT IS EXPIRING IT'S USEFUL LIFE IN THE NEXT 20 YEARS THAT MAY NEED TO BE [34:22] REPLACED DURING THAT TIME PERIOD THAT COULDN'T MAYBE BE REPLACED THROUGH OPERATIONS. [34:28] SO IN THE EVENT THAT YOU DON'T USE ALL THOSE DOLLARS, WHERE [34:35] IS THE REST OF THE MONEY GOING TO THAT WOULD BE IT WOULD FOLLOW THE THE THE WORKBOOK [34:44] THAT WAS SUBMITTED TO MINNESOTA HOUSING AND THEY AS A FUNDER AND THEY AS A FUNDER WOULD BE ABLE WE'D HAVE CONVERSATIONS WITH THAT [34:49] WHETHER THAT WOULD PAYING DOWN LOANS OR REDUCING THE AMOUNT OF TAX CREDITS ON THE PROJECT [34:54] THAT THEY WOULD RECEIVE AND THINGS LIKE THAT. SO THE WHOLE ANY TIME WE GO THROUGH THE ANALYSIS WITH [35:00] MINNESOTA HOUSING ALL OF THE COSTS ARE AUDITED AND SO WHAT [35:06] I'M TRYING TO SAY IS IT'S NOT JUST GOING OUT WE CAN EITHER USE IT IN THE PROJECT OR THEY WOULD LIKE WE COULD UPGRADE [35:11] AND MAYBE ADD SOLAR TO THE ROOF IF THAT'S WHAT THE FUNDERS IF WE HAD A CONVERSATION WITH THEM TO SAY HEY IS THAT SOMETHING WE COULD [35:17] USE THE MONEY FOR OR IT MIGHT BE HEY YOU KNOW WHAT? WE WANT YOU TO REDUCE THE TAX [35:22] CREDITS OR WE WANT YOU TO PAY DOWN THE DEFERRED LOANS. CAN I ASK ONE LAST QUESTION? SO DO YOU HAVE A MODEL IN MIND [35:29] OF WHERE YOU'VE DONE IT IN THE PAST AND IT'S BEEN SUCCESSFUL OR YEAH, WE WE ACTUALLY HAVE DONE THAT RECENTLY. [35:36] WE HAVE DONE A RENOVATION AND WE'VE DONE THREE BUILDINGS IN SAINT CLOUD AREA SO THEY [35:42] WERE DONE. WE ACTUALLY ACQUIRED THE PROPERTIES FROM A NONPROFIT THAT WENT DEFUNCT. [35:47] WE WORKED WITH MINNESOTA HOUSING HELP KEEP THOSE AFFORDABLE AND WE RENOVATED [35:53] ONE OF THEM WAS A TEN UNIT SINGLE FAMILY HOME DEVELOPMENT WHERE RENOVATED THE ENTIRE INTERIOR AND EXTERIOR AND THEN [36:01] THE OTHER TWO BUILDINGS WERE TOWNHOME COMMUNITIES. ONE WAS 32 UNITS, ONE WAS 24 UNITS AND THOSE WERE ALL [36:07] OF THOSE HAD RESIDENTS IN PLACE SO WE WERE ABLE TO WORK WITH THEM TO RENOVATE THEIR BUILDINGS AND SO ONE [36:15] LAST QUESTION I PROMISE. OKAY. THAT'S A OUT OF STATE EXAMPLE MAJORITY DEMOGRAPHICS AND [36:23] MARKET RATES AND MARKET CONDITIONS ARE DIFFERENT. DO YOU HAVE ANYTHING HERE? [36:28] I DON'T HAVE RECENT RENOVATIONS THAT WE'VE DONE IN PLACE BUT I HAVE BUILT PROJECTS IN PLYMOUTH, [36:34] ROSEVILLE, DAYTON. I HAVE A BUILDING UNDER CONSTRUCTION AND CRYSTAL, MINNESOTA WE JUST OPENED A [36:39] BUILDING IN THE LAST COUPLE OF YEARS IN SHAKOPEE AND SO THE ONES I HAVE HAD THOSE ARE [36:45] JUST WITHIN THE LAST THREE YEARS THAT WE'VE BUILT. SO WE'RE VERY FAMILIAR. WE HAVE OVER 4045 I THINK NOW LOW INCOME HOUSING TAX CREDIT [36:53] BUILDINGS THROUGHOUT THE ENTIRE STATE OF MINNESOTA AND IOWA. SO MOST OF OUR BUILDINGS ARE [36:58] IN THE METRO. WE JUST HAVEN'T DONE A RENOVATION THIS LARGE IN THE METRO AREA SO WE DO UNDERSTAND [37:04] THE CHALLENGES THAT THAT MAY BRING BUT WE DO HAVE EXPERIENCE WH THE RENOVATION PIECE. [37:12] I0I DO HAVE ONE QUESTION AND THAT IS SINCE YOU'RE UP HERE DO YOU HAVE A PLAN IN PLACE [37:21] FOR GOING FORWARD IN THE FUTURE OF BUDGETING FOR THESE KIND OF RENOVATION ENDS SO THAT IT DOESN'T NECESSARILY [37:26] HAVE TO COME BACK TO THE CITIES THE HRA AND WE DON'T HAVE TO MAYBE HAVE THIS [37:32] DISCUSSION IN 30 YEARS. I'M JUST BEING I'M GOING TO BE VERY BLUNT AND FORWARD PERSON. I JUST WANT TO KNOW IF YOU HAVE A PLAN IN PLACE FOR THESE [37:39] TYPES OF THINGS IN THE FUTURE SINCE YOU'RE TALKING ABOUT 20 YEARS YOU HAVE TO LOOK IN 20 YEARS AND ALL THESE REFRIGERATORS THESE THINGS ARE [37:44] ALL GOING TO BE NEEDING REPLACEMENT AGAIN. WHAT IS YOUR PLAN FOR FUNDING ON THAT? [37:49] YEAH, SO I MEAN I THINK MOST I HAVEN'T BEEN THROUGH ALL OF THE UNITS BUT I THINK MANY OF THE UNITS THERE'S BEEN, YOU KNOW, APPLIANCES THAT HAVE [37:55] BEEN REPLACED. THERE'S REPLACEMENT RESERVES THAT ARE IN PLACE AND WHATNOT . [38:00] AND SO WITH AT SOME POINT THE EXPENSES ON THE TAX CREDIT BUILDINGS THEY YOU KNOW, AGE [38:08] OR GET CLOSE TO AGING OUT AND SO YOU HAVE A COUPLE OF CHOICES THEY CAN CONVERT TO MARKET OR YOU CAN TRY TO REFINANCE THEM LIKE WE'RE [38:13] DOING RIGHT NOW AND IT'S USUALLY RELATED TO SIGNIFICANT [38:20] HAND IMPROVEMENTS THAT ARE LARGER THAN THE REPLACED RESERVES. SO WINDOWS SIDING THIS BUILDING HAS STEEL SIDING SO WE'RE NOT PLANNING TO REPLACE [38:27] THAT. BUT SOME BUILDINGS THAT YOU MAY SEE IN THIS AREA MAY HAVE VINYL SIDING AND UNFORTUNATELY ,YOU KNOW, HAILSTORMS ARE [38:32] GREAT WHEN THEY HAPPEN BUT THEY DON'T ALWAYS WORK OUT. AND SO IN THIS BUILDING ROOF [38:39] IS SOMETHING THAT IT IS AT ITS AT ITS USEFUL LIFE AND SO THAT'S A SIGNIFICANT EXPENSE THAT OUTWEIGHS THE REPLACEMENT [38:46] RESERVES THAT MAY BE AVAILABLE SO THAT'S WHY WE'RE HERE ASKING FOR THE EXTENSION REQUEST. WE DID SUBMIT TO MINNESOTA [38:54] HOUSING THE APPLICATION ON [39:01] JULY 11TH AND YOU KNOW, WE WERE HOPING THAT WE COULD GET BEFORE THE BOARD PRIOR TO THAT APPLICATION BUT WE STILL WOULD LIKE TO BE ABLE TO SHOW THAT [39:06] THE CITY OF BLOOMINGTON IS SUPPORTING THE PROJECT. I WILL BE REALLY HONEST THAT [39:12] MOST PROJECTS THAT ARE RENOVATION DON'T GET FUNDED BY MINNESOTA HOUSING IN THE FIRST YEAR SO IT MIGHT TAKE MAYBE ANOTHER YEAR. [39:19] WE'RE HOPEFUL THAT THAT'S NOT THE CASE BUT WANT TO JUST BE REALLY HONEST WITH WHERE WE'RE AT IN THE PROJECT. WE WOULD LIKE TO KEEP THE [39:25] PROJECT AFFORDABLE THE OWNERS LIKE I SAID I JUST REPRESENT THE OWNERS BUT THE OWNERS WOULD PREFER TO KEEP THIS AS [39:31] AN AFFORDABLE BUILDING AND EXTEND IT THE CURRENT APPLICATION OR COMPETITIVE APPLICATION ROUND IS FOR 50 [39:39] YEARS IS WHAT MOST ARE ELECTING AND SO THAT'S WHAT WE THAT'S WHAT THE OWNERS WOULD LIKE TO PURSUE. [39:46] COMMISSIONER MUELLER I THINK IT'S FAIR. SO IS THE PRIMARY REASON WHY YOU'RE COMING FORWARD NOW IS [39:53] IS BECAUSE A NEED FOR RENOVATIONS BECAUSE THE LOANS STILL GO FOR ANOTHER TEN YEARS. SO RENOVATIONS IS KIND [39:58] OF WHAT'S DRIVING THE NEED RIGHT NOW. YEAH YEAH. RENOVATIONS AND THEN ALSO JUST [40:04] IF IT BECAUSE IT DOES TAKE A COUPLE OF YEARS TO GET GOING SO EVEN IF THIS PROJECT WERE TO GET FUNDED HOPEFULLY [40:11] IN DECEMBER WE WOULD HOPEFULLY START CONSTRUCTION SOMETIME IN 2025 THAT WOULD BE ANOTHER 12 MONTHS APPROXIMATELY TO GET [40:17] THAT COMPLETED AND THAT'S ASSUMING THAT WE DON'T HAVE ANY SIGNIFICANT FUNDING THAT REQUIRES ENVIRONMENTAL REVIEWS [40:25] THAT NEED TO BE COMPLETED THROUGH LIKE THROUGH A PART 50 LATER HARD TO REVIEW BECAUSE THAT CAN ADD SIX PLUS MONTHS [40:30] TO THE PROCESS AND SO YEAH SO WE'LL BE LOOKING AT YOU KNOW THIS PROJECT WOULDN'T BE [40:37] REPLACED IN SERVICE UNTIL YOU KNOW SOMETIME IN 2026 SO TRYING TO WE'RE TRYING TO LOOK AHEAD AND LOOK AT OUR PROJECTS [40:45] AND WHERE THEY'RE AT AND THEN WHAT'S THE PLAN? FOR SOME REASON MINNESOTA HOUSING DOES NOT GRANT FUNDING EVEN OVER THE NEXT COUPLE [40:52] OF YEARS. WHAT'S THE PLAN FOR THAT IF WE DON'T GET FUNDING? YEAH. YEP. SO WE WOULD CONTINUE TO HAVE [40:57] CONVERSATIONS WITH THE OWNERS AND MINNESOTA HOUSING WE WOULD GO IN WE ALREADY HAD A MEETING SEVERAL MEETINGS WITH THEM [41:03] BACK IN JANUARY FEBRUARY TO TALK ABOUT THE PROJECT AFTER THE AWARDS ARE ANNOUNCED. [41:08] IF IT IS SELECTED WE WOULD HAVE A MEETING TO TALK ABOUT WHAT THE PROCESS WOULD BE FOR MOVING FORWARD WITH THAT AND IF IT'S NOT SELECTED WE WOULD [41:15] HAVE A RECAP MEETING TO TALK ABOUT WHAT WAYS WE COULD IMPROVE THE APPLICATION OR WHAT THEIR OTHER IDEAS ARE IF THEY HAVE OTHER FUNDING THAT [41:21] MAY BE AVAILABLE TO AID IN SOME OF THE RENOVATIONS. [41:27] COMMISSIONER WOOTEN TWO OF THE QUESTIONS ONE IS IS A LOAN TRANSFERABLE IF OWNERSHIP [41:33] CHANGES IN THE PROJECT? I YEAH. THANK YOU. CHAIR COMMISSIONER WOOTEN [41:41] TYPICALLY THE WAY OUR LOAN AGREEMENTS ARE STRUCTURED IS THAT IT IS TRANSFERABLE WITH [41:46] THE OWNERS OKAY. AND THEN THE SECOND QUESTION I HAVE IS IN THE CASE [41:52] OF BUSINESSES GOING OUT OF BUSINESS IS A LOAN CALLABLE SOONER [42:02] ? CHAIR COMMISSIONERS I'M SORRY THERE'S A LIST OF EVENTS OF DEFAULT OR EARLY CALL SORRY [42:09] . AND MY UNDERSTANDING SO THE CUSTOMER IS THAT THE BUSINESS [42:16] FALLS APART SO LIKE IF THERE IS A LAPSE IN MANAGEMENT IF THE BUILDING WAS BASICALLY BECAME UNMANAGED OR IN DISREPAIR THERE'S A [42:23] SPECIFIC EVENT OF DEFAULT RELATED TO TERM NON MAINTENANCE OF THE BUILDING AND THAT WOULD BE AN EVENT [42:28] OFEFAULT. YEAH. COMMISSIONER MUELLER, I HAVE MORE QUESTIONS FOR STAFF. [42:37] SURE. OR I GUESS ONE OF THE THINGS THAT I KNOW COUNCIL IS FOCUSED ON IS MAKING SURE THAT [42:44] PROPERTIES DEVELOPED THROUGHOUT THE CITY HAVE A MIX OF AFFORDABILITY AND MARKET RATE TO JUST TO SHARE AND [42:53] SPREAD OUT SO THAT WE'RE NOT CONCENTRATING CONCENTRATING IT IN ONE PARTICULAR AREA. SO MOVING TO THIS PLAN MOVES UP TO A FULLY AFFORDABLE I [43:00] GUESS HOW DO YOU HOW DO YOU BALANCE THAT VISION OF WHAT [43:08] COUNCIL'S TRYING TO DO VERSUS GOING FOR AFFORDABLE AFFORDABLE WITH THIS UNIT TREND COMMISSIONERS IT'S A [43:13] DIFFICULT SITUATION BECAUSE THE NATURE OF MINNESOTA HOUSING RFP IS THAT THE DEEPER [43:19] THE AFFORDABILITY AND THE BROADER THE AFFORDABILITY THE MORE COMPETITIVE THE APPLICATION. SO IN THIS CASE THE DEVELOPER [43:27] IS SHOWING THOSE 30% UNITS AS WELL AS THE SET ASIDES THAT [43:33] ONE DOES WHEN THIS PROJECT ORIGINALLY GOT TAX CREDITS IT QUALIFIED UNDER THE 40 AT 60 [43:39] RULE ACCURATE SO THAT'S ONLY 40% OF THE UNITS AFFORDABLE AT [43:45] 60%. THAT WAS THE TYPE OF PROJECT THAT COULD GET FUNDING FROM A PUBLIC SOURCE IN 2002 THAT THERE'S NO WAY THAT WOULD GET [43:52] FUNDING IN 2024. SO THAT'S WHY IN TERMS OF THIS APPLICATION YOU'RE SEEING THAT [43:58] DEEPER AFFORDABILITY. I THINK THERE IS A LOT TO SAY ABOUT OUR NEW MULTIFAMILY [44:04] DEVELOPMENTS THAT CAN LOOK TO DO INCOME AVERAGING THAT'S AN OPTION WHERE YOU CAN SEE SOME OF THOSE ABOVE 60% AMI RENTS [44:10] TO HAVE MORE OF A MIXED INCOME BUILDING. I THINK IN THIS CASE BECAUSE THIS IS AN EXISTING AFFORDABLE [44:15] PROJECT THEY'VE BEEN OPERATING IT AT THAT 80% OF UNITS AT AN [44:21] AFFORDABLE LEVEL IT IT JUST REALLY WOULDN'T MAKE FOR A COMPETITIVE APPLICATION TO MINNESOTA HOUSING SO IT'S A [44:28] DIFFICULT SITUATION TO ACHIEVE ON THAT GOAL BUT I THINK YOU'RE SEEING WHERE WE'RE ACHIEVING ON THAT DEEPER [44:33] AFFORDABILITY GOAL WHICH IS REALLY CRUCIAL. I MEAN 13 UNITS JUST OFF THE [44:40] TOP OF MY HEAD I THINK THAT'S HOW MANY WE HAVE SINCE 2020 IN NEW BUILD. SO THIS WOULD BE DOUBLING IT. [44:46] SO ONE MORE QUESTION AND THEN THE SLIDE WITH THE PRINCIPAL [44:53] AND INTEREST GROWTH AND THE FACT THAT THERE'S NO CURRENT PAYMENTS ON IT, IT GROWS PRETTY EXPONENTIALLY. [45:00] SO THERE IS CONCERN THAT WE GET TO THAT POINT AND THE ABILITY TO REPAY THE LOAN ONCE IT'S BEEN ACCRUED AT THIS [45:06] LEVEL I THINK IT'S BEEN CONFIRMED THAT THE LOAN STAYS WITH THE PROPERTY AND NOT WITH [45:11] THE OWNER. AND SO IF THERE WAS A A A FOR SALE THE HRA THE CITY WOULD STILL RECOUP OUR FINANCING. [45:19] IS THAT CORRECT TERM COMMISSIONER? IS THAT SO? THAT'S RIGHT. IF THERE IS A SALE UNLESS THE CITY AGREED TO SUBORDINATE THE LOAN TO A NEW PRIMARY MORTGAGE [45:30] I BELIEVE OR AGREE TO TRANSFER THE LOAN TO A NEW OWNER WHICH I WE'RE ALLOWED TO DO BUT WE WOULD BE WE WOULD HAVE TO AGREE TO DO THAT. [45:37] IF WE DIDN'T AGREE THEN THE BALANCE OF THE LOAN WOULD BE CALLED FOR REPAYMENT. [45:43] OKAY COMMISSIONER I'D SAY YEAH [45:48] I THINK THIS IS MORE SO A COMMENT AS OPPOSED TO A QUESTION BUT I WOULD JUST BE CURIOUS IF IT'S POSSIBLE TO [45:55] HAVE KIND OF LIKE SOME SOME KIND OF ITEMIZED LIST OF WHERE THIS FUNDING WOULD GO TOWARDS. I KNOW YOU GUYS ARE MENTIONING [46:03] THAT IT'S KIND OF DIFFICULT TO KNOW EXACTLY AND GO INTO EVERY SINGLE UNIT. I AGREE. IT'S DEFINITELY BURDENSOME TO [46:09] KIND OF DO THAT. BUT EVEN SOMETHING WHERE IT'S LIKE A MORE SPECIFIC LIST WHERE WE KNOW WHERE IT'S GOING [46:14] TOWARDS JUST SO THAT WE CAN KIND OF YOU KNOW, UNDERSTAND LIKE WHERE PRIORITY LIES AND [46:21] STUFF LIKE THAT BECAUSE I KNOW YOU'RE MENTIONING IF THERE WAS AN X AMOUNT OF FUNDS MAYBE IT COULD GO TOWARDS SOMETHING ELSE. BUT IT'S LIKE IF THERE'S HOW DO WE DETERMINE WHAT'S [46:28] IMPORTANT AND WHAT'S NOT? AND SO I THINK IF WE'RE GOING TO ALLOCATE THESE FUNDS WHICH IS QUITE A LOT 100000 TO [46:36] 500000 A BIG RANGE AS WELL TO JUST AT LEAST KIND OF HAVE SOME KIND OF BALLPARK LIST OR SOME KIND OF DOCUMENT WHERE WE CAN SEE WHERE IT'S GOING [46:43] TOWARDS. YEAH, YEAH IT'S OKAY IF YOU [46:50] YES WE WOULD. SO RIGHT NOW AN APPLICATION PHASE IS JUST BASICALLY GETTING THE APPLICATION TOGETHER MAKING OUR BEST [46:58] ESTIMATE ONCE IF THE PROJECT IS SELECTED THEN WE WOULD GO THERE WOULD BE AN ARCHITECT THAT WOULD GO THROUGH EVERY [47:03] UNIT, ITEMIZE EVERYTHING AND WE CAN DEFINITELY WORK WITH STAFF WHO CAN UPDATE YOU OR WE CAN COME BACK AND THROUGH HIGH [47:09] LEVEL MORE SO OR IF YOU WANT MORE DETAIL WE'RE HAPPY TO PROVIDE THAT BUT WE WOULD PRIOR TO STARTING ANY RENOVATION AND FINALIZING THE [47:17] BUDGET THAT MINNESOTA HOUSING WOULD APPROVE WE WOULD GO THROUGH EVERY SINGLE UNIT AND CREATE A VERY DETAILED LIST [47:22] AND A TIMELINE OF HOW WE'RE GOING TO GET THAT DONE WITH THE RESIDENT IN PLACE. THAT'S THE GOAL. [47:27] YOU KNOW HOPEFULLY WE WOULD OUR GOAL IS TO HAVE EVERYTHING SECURED ON SITE BEFORE WE START A UNIT. SO WHEN WE GO IN AND WE TAKE A [47:33] KITCHEN OUT OR TAKE TOILETS AND BATHROOM VANITIES AND FLOORING OUT WE CAN GET THAT ALL DONE IN THAT DAY. [47:39] SO THEY MAY BE WITHOUT ONE BATHROOM FOR THE DAY BUT THEY HAVE A SECOND BATHROOM. WE HAVE ANOTHER AREA THAT THEY CAN USE BUT THEN THAT NIGHT [47:47] IT'S ALL PUT BACK IN PLACE FOR THEM. THAT'S OUR GOAL NOW. IF THAT DOESN'T HAPPEN WE WOULD RELOCATE THEM [47:52] TEMPORARILY FOR A NIGHT HOPEFULLY NOT LONGER THAN THAT. SO YES THAT WOULD BE OUR GOAL [47:57] AND MINNESOTA HOUSING ALSO BECAUSE THEY'RE THE PRIMARY FUNDER OF THE PROJECT OR THAT'S OUR REQUEST TO THEM. [48:03] THEY WOULD ALSO HAVE AN ON STAFF ARCHITECT WHO WOULD OVERSEE THE ENTIRE RENOVATION [48:09] AND WALK THE BUILDING AT LEAST ONCE A MONTH WITH US AND WALK THROUGH THOSE CHANGES. SO YEAH COMMISSIONER MILLER I [48:17] DON'T KNOW IF SOMEONE CAN EXPLAIN TO ME LIKE I'M A FIVE [48:22] YEAR OLD WHICH IS THE LATEST STATE STATEMENT OF WHY IS THIS [48:28] NOT BEING PAID AND THE INTEREST IS ACCRUING. I DON'T UNDERSTAND TELL ME TO [48:35] I MEAN ALMOST $1,000,000 IN INTEREST BY IT WAS YEAH SO ON THE TAX CREDIT PROJECTS OFTENTIMES WILL BE A REQUEST [48:43] TO THE CITY FOR SOME FINANCIAL ASSISTANCE NOT JUST THE CITY OF BLOOMINGTON BUT MANY CITIES THROUGHOUT THE METRO AND ONE [48:50] WAY TO SHOW LOCAL SUPPORT IS A DEFERRED INTEREST LOAN. SO THE LOAN CONTINUES TO [48:55] INCREASE ON THE DEFERRED INTEREST BECAUSE THERE'S NO REQUIRED PRINCIPAL ON THAT [49:02] LOAN AND THAT'S BEEN UTILIZED IN MANY CITIES THROUGHOUT THE AREA AND THAT'S WHAT WAS [49:07] UTILIZED WHEN THIS PROJECT WAS FIRST FUNDED IN 2002. SO NOW THE LOAN IS SET UP AS A [49:15] DEFERRED LOAN, NO REQUIRED REPAYMENT. IT'S ON A MONTHLY BASIS SO IT'S ONLY IF THE BUILDING WERE [49:22] TO SELL OR SOMETHING THEN THERE OR SAID HE DECIDED NOT TO SUBORDINATE TO THE MORTGAGE THEY WOULD HAVE TO THE OWNER [49:29] WOULD HAVE TO REPAY THAT LOAN AND THE FULL INTEREST EARNED. [49:36] SO I JUST WANTED TO ADD IN RECENT YEARS WITH THE USAGE OF THE AFFORDABLE HOUSING TRUST FUND NOT HOW LOANS HAVE [49:43] BEEN STRUCTURED. SO WE DO HAVE INTEREST BEARING LOANS THAT GET PRINCIPAL AND INTEREST REPAYMENT THAT'S BEEN [49:48] SINCE 2020 OR 2019. THE FUND WAS ESTABLISHED AND WE'VE BEEN USING THAT. [49:53] SO IT MAY JUST BE THE FACT THAT THE CITY HAS CHANGED HOW IT WANTS TO DISTRIBUTE THAT TYPE OF FUNDING SINCE 2002. [50:00] AND SO BUT I THINK IT'S HELPFUL TO HAVE THE CONTEXT OF HOW CITIES HAVE SUPPORTED THESE PROJECTS AND PERHAPS BLOOMINGTON HAS AN OPTION TO [50:08] CHANGE OR TO CONTINUE PATH [50:18] THAT'S WHAT I WAS ONE USER IF THIS IS NOT HOW IT'S DONE ANY MORE CAN WE CHANGE IT SO THIS INTEREST IS NOT ACCRUING TRAIN COMMISSIONERS THAT COULD CERTAINLY BE PART OF IF IF THE [50:26] PROJECT RECEIVES ITS FUNDING AND STAFF COME BACK WITH A DRAFTED LOAN AMENDMENT DOCUMENT THAT COULD BE THE [50:35] TYPE OF TERM THAT WOULD BE NEGOTIATED. SO THAT CAN CERTAINLY BE AN OPTION. [50:41] CAN YOU TELL US PLEASE THANK [50:46] YOU. I THANK YOU SO KIND OF ROUNDING BACK OUT WITH SINCE I DON'T SEE ANY OTHER [50:53] QUESTIONS THESE ARE THE QUESTIONS KIND OF BEFORE US TO DIRECT OUR DISCUSSION SO SO I [50:59] WOULD LIKE TO PUT IT TO THE BOARD OF STARTING WITH [51:05] QUESTION ONE WHICH MATURITY DATE EXTENSION OPTION IS PREFERRED OR IS THERE NO [51:11] EXTENSION A MATURITY DATE? CAN I GET SOME FEEDBACK ON THAT? POLICE COMMISSIONER MUELLER [51:18] FOR ME IT WOULD DEPEND ON THE FINANCING IF IF WERE ABLE TO GO TO THE NEW WAY THINGS ARE FINANCED OR NOT I WOULD NEED [51:26] MORE INFORMATION ON THAT BEFORE I COULD SAY WHAT OPTION WAS PREFERRED AND COMMISSIONERS AND WE COULD BE [51:34] A PART OF WHAT WE'RE DOING TONIGHT ISN'T LIKE A FORMAL RESOLUTION. IT'S MORE OF JUST GRANTING STAFF THE ABILITY TO [51:42] COMMUNICATE TO MINNESOTA HOUSING FOR HOW THE HRA CAN BE EXPECTED TO SUPPORT THIS PROJECT. SO IF YOU WANTED TO JUST KIND [51:49] OF VERBALLY IF WE WANTED TO LAY OUT HOW STAFF SHOULD COMMUNICATE WE COULD ADD THAT [51:56] PART OF THE LOAN EXTENSION WOULD BE RENEGOTIATION OF TERMS TO AND YOU'VE BEEN [52:04] SAYING I BELIEVE IS TO REMOVE THE INTEREST ACCRUAL REQUIREMENT OF THE LOAN OR WHATEVER IT IS THAT WE WANTED [52:12] TO ACHIEVE. SO THAT'S SOMETHING WE COULD DO TONIGHT. THIS WILL MINIMIZE AND THERE ARE DIFFERENT WAYS THAT THAT COULD BE ACCOMPLISHED. [52:18] SO OTHER FEEDBACK REGARDING YEAH I JUST WANTED TO SAY I [52:24] KNOW YOU SAID THAT DEFINITELY YEAH I THINK 800,000 IS IS A [52:29] LOT BUT I MEAN JUST LOOKING AT OFF THE BAT I MEAN I I'M [52:35] THINKING 2054 JUST BECAUSE SO MUCH CAN CHANGE BUT AGAIN I ALSO AGREE THAT IT DEPENDS ON HOW IT WOULD BE RENEGOTIATED. [52:43] SO YEAH MORE INFORMATION. SURE. SO YES MAYBE WHEN LOOKING AT KIND OF THE STAFF RECOMMENDATIONS, I WANT TO [52:51] KIND OF MAKE SURE WE'RE STAYING IN THE RIGHT WHEELHOUSE HERE THAT RIGHT NOW WHAT THEY'RE LOOKING WHAT STAFF IS ULTIMATELY LOOKING [52:59] FOR IS FOR AND I JUST WANT TO JUST TO HELP OUR CONVERSATION IS TO SUPPORT IF WE ARE [53:07] WILLING TO SUPPORT SAYING THEIR APPLICATION TO THE MINNESOTA HOUSING CONSOLIDATED [53:14] REQUEST PROPOSAL BASICALLY SAYING THAT WILL AS A BOARD DO WE SUPPORT THAT SO THEY CAN [53:21] MOVE FORWARD BECAUSE AS I STATED FROM MY UNDERSTANDING IT WILL LOOK BETTER TO THEIR APPLICATION IF THEY HAVE THE [53:29] THE HRA SUPPORT BEHIND IT AND THE OTHER IS IS A SEPARATE SUPPORT OF THAT 100 TO $500000 [53:38] MATCH. IF I JUST WANT TO CLARIFY. SO WE'RE KIND OF ALL UNDERSTANDING BECAUSE IT'S A LOT OF INFORMATION RIGHT NOW [53:46] THERE'S A LOT BEING DISCUSSED. SO I JUST WANT TO KIND OF MAKE SURE THAT WE UNDERSTAND THESE ARE THE TWO DISCUSSIONS THAT WE'RE HAVING AND THAT'S WHERE [53:51] THESE KIND OF COME IN . BUT I DON'T THINK THESE ARE THE END ALL BE ALSO OF THE [53:58] EVENING BUT IT IS TO DIRECT STAFF AND SAY ARE WE WILLING TO SUPPORT IT? IF SO HOW WOULD WE LIKE STAFF [54:05] TO DO THAT? AND IF NOT THAT'S WHERE WE'RE AT. AM I AM I CORRECT IN STATING THAT? [54:13] THANK YOU. SURE. YES. I JUST WANT TO REITERATE THAT IS CORRECT AND I JUST ALSO WANT TO REPEAT AGAIN THAT IF [54:21] THEY WERE AWARDED THROUGH MINNESOTA HOUSING THIS WOULD COME BACK IN FRONT OF THE [54:27] BOARD FOR FINAL APPROVAL AT THAT TIME. SO THERE WOULD BE ANOTHER OPPORTUNITY FOR THE BOARD TO [54:34] DISCUSS THIS AS WELL. COMMISSIONER WOOTEN SO THIS STATED EXACTLY LIKE THAT AND I [54:42] PROBABLY HAVE NO PROBLEM BUT IF YOU PUT THESE DATES IN THERE THEN I HAVE AN ISSUE AND IT'S NOT AN ISSUE SO MUCH [54:47] IS I'M MORE INCLINED TO SAY [54:53] YOU KNOW THOSE DATES GIVEN EVERYTHING ELSE WE'RE ASKING I CAN'T MAKE A FULL FORMATIVE [54:58] DECISION BASED ON THAT OR BASED ON ENOUGH INFORMATION. [55:05] SO I'M NOT I'M NOT COMFORTABLE COMMITTING. BUT IF IT'S JUST THOSE FIVE [55:10] STATEMENTS AND NO DATES AND IT GETS TO GO MAYBE FOR EACH OR A [55:15] THEN I WOULD BE MOVED TO APPROVE AND I KNOW THAT'S NOT ME I KNOW THAT THEN THAT'S [55:22] RIGHT. I WILL SAY THIS WHEN READING OUR OKAY I WILL GO AHEAD AND [55:28] DEFER AND I WANT TO INTERRUPT I WAS JUST GOING TO SAY BUT I WOULD MAYBE SUGGEST IS THE [55:35] ANSWER IS THAT YOU WOULD LIKE TO SEE POTENTIALLY A NON DEFERRED KNOWING THAT THERE [55:40] WOULD BE PAYMENTS AND MONTHLY MAYBE INTEREST OR SOMETHING LIKE THAT AND THAT YOU WOULD BE WILLING TO EXTEND UP TO 30 [55:46] YEARS FROM THE DATE. I THINK THAT WOULD BE SOMETHING THAT MAYBE YOU COULD [55:51] STATE WE YOU KNOW CURRENTLY WHAT WE SUBMITTED TO MINNESOTA HOUSING WE DIDN'T INCLUDE PAYMENTS. SO IF THAT IS SOMETHING THAT YOU FEEL VERY STRONGLY ABOUT WE WOULD LIKE TO KNOW NOW SO [55:57] WE CAN NOTIFY MINNESOTA HOUSING IF THE PROJECT IS SELECTED THEY CAN UNDERWRITE IT AS THOUGH THERE WILL BE INTEREST PAYMENTS SO IF THAT [56:05] IS SOMETHING THAT YOU WOULD LIKE TO INCLUDE IN THE LETTER, I WOULD LIKE THAT AS WELL. AND IF THAT'S NOT SOMETHING THAT'S IMPORTANT, THAT'S OKAY [56:12] . AND THEN IF YOU'RE WILLING TO GO UP TO THE 30 YEARS FROM THE CURRENT DATE OR SOMETHING LIKE THAT TO SAY LIKE POTENTIALLY UP TO THAT AMOUNT AND IF YOU [56:20] DON'T FEEL COMFORTABLE WITH THAT IF IT'S 20 YEARS OR WHATEVER THAT MAY BE BUT EVEN THAT IS HELPFUL. SO IN MINNESOTA HOUSING [56:27] UNDERWRITES THEY CAN UNDERSTAND WHAT THE IMPLICATIONS ARE BECAUSE WHEN IT'S SPENCER MITTED NOW AND SO [56:32] NOW KENNY WILL COMMUNICATE WITH THEM WHAT THE RECOMMENDATION IS AND THEY WILL UNDERWRITE IT BASED ON [56:39] THAT WHICH MAY MAY BE DIFFERENT THAN WHAT WE SUBMITTED AND THAT'S OKAY BECAUSE OF THE PROJECT GET SELECTED WHAT WE WANT TO DO IS [56:45] HAVE IT BE A PROJECT THAT CAN MOVE FORWARD. CAN I ASK A FOLLOW UP QUESTION [56:50] ON THAT SINCE YOU ARE WITH THE OWNERS ARE THE OWNERS COMFORTABLE WITH THAT INTEREST [56:58] ON THE LOAN INTEREST AT THE END? JUST WANT TO KNOW WHERE THEY'RE SITTING FINANCIALLY IN THAT POSITION. [57:05] YEAH MY GUESS IS IF IT WERE TO GO OUT TO 2063 I MEAN THE WAY THAT THAT LOAN WOULD BE PAID OFF WOULD BE A SALE OF THE [57:10] PROJECT LIKELY OR YOU KNOW SOME OTHER WAY WE COULD HAVE STRUCTURED THIS THAT THE FHA [57:16] LOANS WOULD HAVE BEEN FULLY PAID OFF WHICH BASICALLY WOULD HAVE BEEN JUST ASKING FOR MORE MONEY FOR MINNESOTA HOUSING BUT THE FINANCIALS, THE LOCAL [57:24] PARTICIPATION SUPPORT IS REALLY IMPORTANT FOR THESE PROJECTS AND SO THAT'S HOW WE STRUCTURED OUR SUBMISSION TO [57:30] HOUSING BUT AND HOPEFUL THAT THE CITY OF BLOOMINGTON AND HRA WOULD BE SUPPORTIVE [57:35] OF THAT AND ESPECIALLY GIVEN WE HAD A LOT OF CONVERSATIONS WITH AND KENNY ABOUT WHAT DOES [57:41] THAT LOOK LIKE FROM AN AFFORDABILITY PERSPECTIVE LIKE FOR THIS EXTENSION WHAT IS THE CITY GETTING AND I UNDERSTAND [57:48] THE POINT TO THE MARKET RATE. YEAH BESIDES INCOME AVERAGING I MEAN RIGHT NOW LIKE KENNY [57:53] SAID THE WAY THE RFP THROUGH MEANS HOUSING IS TIED UP. IT'S VERY DIFFICULT TO DO MARKET RATE MIXED IN . [58:00] I MEAN OFTENTIMES TO BE HONEST THE MARKET RATE OR NOT TRUE MARKET RATE UNITS THEY'RE MORE AT MAYBE A 60 OR 70% JUST [58:08] BECAUSE THERE'S NOT AS MANY SERVICES AS YOU MIGHT SEE IN A TRADITIONAL MARKET RATE HIGH RISE BUILDING. [58:15] SO COMMISSIONER JAMILA FEATURE I THINK OVERALL I DO WANT TO [58:23] SUPPORT THE DEVELOPER EVEN AT 60% AM I THAT'S THE STARTING [58:30] SALARY FOR ONE OF OUR NEW POLICE OFFICERS HERE IN TOWN. SO WHEN WE'RE TALKING ABOUT AFFORDABILITY WE'RE NOT [58:35] TALKING ABOUT YOU KNOW, VASTLY DIFFERENT INCOMES LIKE THAT'S OUR OR POLICE OFFICERS OR [58:41] FIRST YEAR FIRST RESPONDERS WHO CAN'T IN BLOOMINGTON. AND SO I DO SUPPORT THE FACT [58:47] THAT WE ARE CONTINUING TO SUPPORT THESE DEVELOPERS WHO WANT TO CONTINUE TO SUPPORT [58:53] THE HOUSING IN BLOOMINGTON AND MAKE SURE THAT A WIDE RANGE OF PEOPLE CAN LIVE AND WORK IN BLOOMINGTON. [58:59] I AM INTERESTED IN UNDERSTANDING OR SHIFTING TO WHAT WE CURRENTLY DO WITH [59:05] THE THE RATIO AND HOW WE ARE REPAYING THOSE LOANS BACK [59:10] HOME. I THINK NOT ONLY DOES THAT PREVENT BURDEN IN THE FUTURE WHERE A DEVELOPER HAS TO SELL [59:19] BUT PROVIDES US OTHER AVENUES OF OPPORTUNITIES THAT WHEN WE GET TO THAT DATE OF 2063 WHICH [59:24] WOULD BE MY PREFERENCE AS LONG AS WE CAN WE HAVE OPTIONS TO FURTHER THAT INSTEAD [59:30] OF FORCING A SALE AND THEN FOR PUSHING EVERYTHING INTO MARKET RATE. SO THAT'S MY THOUGHT ON IT AND I WOULD LIKE TO SEE THE MORE [59:38] OF THE DETAILS THAT WE'VE TALKED AFTER THAT AFTER WE PROVIDE A RECOMMENDATION [59:47] FURTHER DISCUSSION I'M I AGREE WITH COMMISSIONER MUELLER ON [59:52] THE IDEA OF EXTENDING INTO THE [59:58] 6 TO 63 FOR SURE AND WITH THE TRYING TO MAYBE TALK ABOUT THE TERMS RENEGOTIATING THE TERMS [1:00:06] I I ALSO WANT TO STATE THAT I [1:00:14] COME I COMMEND THE CITY TO FOR THE PROACTIVE MEASURES THAT WE'RE TAKING NOW GOING FORWARD [1:00:21] . I THINK THIS STARTS A DISCUSSION OF WHAT WE CAN DO IN THE FUTURE TO PREVENT IT FROM GETTING TO WHERE WE ARE TODAY WHERE WE CAN INTERVENE [1:00:29] SOONER. SO IT'S NOT THIS YOU KNOW, THIS WE'RE KIND OF UNSURE [1:00:37] OF WHERE WE'RE REALLY SITTING. LET'S BE HONEST ABOUT THAT. BUT I AGREE WITH THE THE 2063 [1:00:43] MYSELF WITH THE NEGO IN NEGOTIATING THE TERMS I'D LIKE TO OPEN UP FOR MORE DISCUSSION OR IF ANYBODY WOULD [1:00:51] LIKE TO AGREE WITH THAT PORTION OF THE SUPPORT CHAIR [1:01:00] WHO ANY GUIDANCE WOULD BE. WELL I WAS KIND OF SOME UNCHARTED I DO WANT IT TO I DO WANT TO ADD THAT TO WHAT MEGAN [1:01:07] SAID REGARDING REGARDING TO THE MINISTER OF HOUSING UNDERWRITING IT'S IMPORTANT FOR US TO SELECT A DATE [1:01:13] BECAUSE THAT IN TERMS OF UNDERWRITING IT'S ALSO IMPORTANT FOR US TO MESSAGE WHAT THESE NEGOTIATED TERMS THAT WE'RE DISCUSSING WOULD BE FOR UNDERWRITING PURPOSES. [1:01:21] SO IF WE WANTED TO COMMIT TO A NEW I THINK WE NEED TO TALK THROUGH THAT IS WHAT I'M [1:01:27] SAYING IF WE'RE GOING TO RENEGOTIATE TERMS RELATED TO THE INTEREST REPAYMENT, IF THIS IS GOING TO BECOME A LOAN [1:01:32] THAT REQUIRES A MONTHLY PAYMENT, THEN THE DEVELOPER WILL NEED TO KNOW THAT FOR PURPOSES OF THEIR APPLICATION SO BUT I DON'T KNOW IF THERE'S [1:01:40] ENOUGH TIME TONIGHT TO GET THROUGH THE TERM NEGOTIATION AN ALLIANCE MEETING, WHAT IS [1:01:47] AND I DON'T KNOW IF YOU CAN ANSWER THIS BUT WHAT DOES THAT DO TO THEIR CHANCES [1:01:54] OF APPROVAL? I MEAN DOES THAT CHANGE THEIR CHANCES OF APPROVAL ALL THAT WELL, WHAT IT WOULD DO IN THE [1:02:01] CURRENT APPLICATION IS IT WOULD JUST HAVE ADDITIONAL REQUESTS FROM MINNESOTA HOUSING BECAUSE IT WOULD BE DEBT SERVICE VERSUS DEFERRED [1:02:09] WHICH LIKE I SAID WE'D RATHER HAVE THE ANSWER NOW THAN A YEAR FROM NOW WHEN WE COME [1:02:15] IN AND WE'RE LIKE GET THE PROJECTS ALL READY TO GO. WE JUST NEED YOU GUYS TO APPROVE THIS LOAN AGREEMENT EXTENSION AND THEN THE DEBT [1:02:21] SERVICE IS UPSIDE DOWN BECAUSE OF IT. I JUST WANT TO BE VERY CLEAR THAT OUR REQUEST IS ONLY IF WE [1:02:26] GET SELECTED IN THE RFP. WE ARE WE'RE NOT INTERESTED IN RENEGOTIATING TERMS RIGHT NOW UNLESS WE ARE SELECTED [1:02:32] SO I JUST WANT TO MAKE SURE THAT THAT'S IN THIS COMMUNICATION. BUT I THINK IF THE ANSWER IS THAT YOU WOULD LIKE TO HAVE [1:02:39] DEBT SERVICE ON THIS WHETHER IT'S INTEREST FOR PRINCIPAL AND INTEREST WE WOULD LIKE [1:02:44] THAT INCLUDED IN THE LETTER AND I THINK THAT WE'RE OPEN TO ALL OF THAT. IT'S JUST THAT FINANCIAL [1:02:50] PROJECTIONS JUST NEED TO REFLECT THAT. AND AFTER KENNY OR THE CITY [1:02:56] COMMUNICATES WITH MINNESOTA HOUSING WE WOULD ALSO MESSAGE THEM TO LET THEM KNOW LIKE HEY THIS NEEDS TO BE UPDATED IF IT [1:03:03] MOVES FORWARD. YEAH AND THEN I JUST WANTED TO ADD ONE MORE COMMENT IF THE TERMS CAN BE RENEGOTIATED THEN [1:03:11] I WOULD DEFINITELY BE COMFORTABLE SUPPORTING 2063. THANK YOU CHAIR WHO HIM AND [1:03:18] COMMISSIONERS IT SOUNDS LIKE THERE'S SOME SUPPORT FOR THAT LATER DATE OF 2063 AS LONG AS [1:03:25] PART OF THE COMMUNICATION TO MINNESOTA HOUSING IS THAT AND THIS IS MY UNDERSTANDING IS [1:03:33] THAT THERE WOULD BE A DEBT SERVICE ADDED TO THE LOAN SO THAT WOULD MEAN MONTHLY REPAYMENT OF INTEREST OR [1:03:38] PRINCIPAL AND INTEREST IT SOUNDS LIKE BASED OFF OF WHAT MEGAN SAID THAT THAT TYPE OF COMMUNICATION WOULD BE [1:03:45] SUFFICIENT FOR THEIR UNDERWRITING PURPOSES AT THIS POINT AND STAFF OF COURSE WOULD COME BACK TO THE HRA TO TO ACTUALLY DRILL DOWN ON TO [1:03:52] WHAT THOSE DETAILS WOULD BE IF THE PROJECT IS AWARDED FUNDING . SO IT SOUNDS LIKE 2063 WITH A [1:03:59] DEBT SERVICE COMMISSION DUBLINER. I JUST WANTED TO ADD LOOKING [1:04:06] AT THE LOCATION OF THE BUILDING IT'S PRETTY GOOD IT'S [1:04:11] ONLINE. NO IT'S THE MAIN DRAG. THERE'S A LOT OF STUFF AROUND IT THAT'S WALKABLE GROCERY STORE PET STORES FAST FOOD IF [1:04:17] YOU'RE INTO THAT I THINK IT'S GOOD TO KEEP IT IN GOOD SHAPE AND YOU KNOW, KEEP PEOPLE [1:04:25] LIVING THERE BECAUSE HAVING LYNDALE BE WALKABLE WOULD BE REALLY GOOD. MM HMM. [1:04:32] I DEFINITELY SUPPORT THAT STATEMENT AND IT'S VERY AND IT IS OUR OUR GOALS AND IT'S [1:04:37] IN OUR MISSION. YOU KNOW, IT'S IT'S WHAT THE HRA STANDS FOR. CORRECT. AND TO GET THAT DEEPER [1:04:43] AFFORDABILITY IS REALLY IMPORTANT. I WILL SAY I LOVE THE YOU KNOW [1:04:50] BEING SPECIFIC WITH PEOPLE WITH DISABILITIES IS IMPORTANT ESPECIALLY WHEN YOU TALK ABOUT LIKE THE LOCATION ALL OF THAT. [1:04:58] SO I DO THINK THIS IS A PROJECT THAT WE REALLY I FEEL WE NEED TO SUPPORT 100% AND KEEP IT AFFORDABLE AND KEEP IT [1:05:06] IN BLOOMINGTON AND NOT ALLOW IT TO GO TO MARKET RATE. SO I THINK WITH THAT AND IT'S [1:05:15] KIND OF SEEMING PRETTY I GUESS THE THE RECOMMENDATION AND IF [1:05:22] I'M UNDERSTANDING WOULD BE AT THIS POINT SAYING THAT WE WOULD WANT TO WE WOULD SUPPORT THE APPLICATION WITH THE [1:05:29] EXTENSION OF THE 20 2063 I'M [1:05:40] TRYING TO JUST LIKE MS. CHAIR I THINK YEAH SO WOULD BE [1:05:47] SUPPORTING BASED ON WHAT I AM HEARING SUPPORTING AN EXTENSION TO 2063 BUT THE UNDERSTANDING THAT THERE WOULD [1:05:55] BE A RENEGOTIATE RENEGOTIATION OF THE LOAN TERMS WITH THE POTENTIAL TO ADD A DEBT SERVICE. [1:06:02] YES. SO OKAY CAN WE GET A MOTION TO SUPPORT WHAT ADMINISTRATOR OUR [1:06:10] MOVE I SAID I MOVED THEM TO ACCEPT LABOR MOTION BY COMMISSIONER WOOTEN AND THE [1:06:18] SECOND VOTE COMMISSIONER DOLLINGER ON IS THERE ANY DISCUSSION HEARING ON ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I I OPPOSED MOTION [1:06:28] PASSES SIX ZERO AND I APOLOGIZE THAT I DIDN'T RESTATE IT BUT IT IS ON RECORD [1:06:34] SO THANK YOU CHAIR I JUST ALSO WANT TO RECOGNIZE THAT THERE [1:06:40] IS STILL THE LOCAL MATCH DISCUSSION THAT'S OC YEAH THAT WAS WHAT I WAS GOING TO MOVE ON TO NEXT IS THE SECOND PART [1:06:46] OF OF THE SUPPORT A RECOMMENDATION FOR SUPPORT WOULD BE THAT THAT MATCH THEY COULD COME BACK IF THEY ARE [1:06:53] BETWEEN THE 100 AND THE 500,000 AND THAT LOOKS LIKE STAFF IS REALLY KIND OF LOOKING TO US TO GUIDE THEM [1:07:00] ON ARE WE WILLING TO DO THAT? WHAT KIND OF SPECIFIC FUNDS IS THERE ANY AMOUNT IS THERE A MAXIMUM MAX AMOUNT THAT WE'RE [1:07:08] KIND OF AT? I WILL SAY THIS I DO HAVE ONE QUESTION AND THIS MIGHT BE OUT [1:07:13] OF THE BOX AND THIS MAY BE AND IT'S JUST I WASN'T AROUND WHEN THIS PROJECT TOOK PLACE AND I [1:07:19] DON'T KNOW HOW THINGS CAN HAPPEN BUT PART OF IT IS I LOOK AT WE HAVE LIKE A [1:07:26] $100,000 LOAN AND $165,000 LOAN. SO I LOOK AT THOSE FUNDS AND I SAY WHAT I THINK WHAT IF WE [1:07:33] JUST GOT RID OF THAT AND USE THAT AS COULD WE STILL USE THAT PART OF THE MATCH IS MY [1:07:41] QUESTION. CHAIR AND COMMISSIONERS SO THIS WAS SOMETHING THAT WE DISCUSSED A LITTLE BIT AND I THINK REALITY IS THAT WE [1:07:48] AREN'T SURE YET THAT IT'S UP TO MINNESOTA HOUSING TO DETERMINE IF OR AT METROPOLITAN COUNCIL IN THIS CASE TO DETERMINE LOAN [1:07:56] FORGIVENESS WOULD QUALIFY AS A LOCAL MATCH. THEY MIGHT ALSO DETERMINE THAT THE EXTENSION IS CONSIDERED A LOCAL MATCH. YEAH. [1:08:03] SO THE FUNDS THE LOAN LIVABLE COMMUNITIES I CAN'T REMEMBER THE FULL NAME BUT THE LCDA [1:08:10] FUNDS VERY FEW PROJECTS ACTUALLY GET THAT FUNDING BUT THIS PROJECT WOULD BE [1:08:18] INELIGIBLE FOR THAT FUNDING IF WITHOUT THIS FORM WHICH THIS FORM THAT THE CITY STAFF WILL [1:08:25] SIGN RELATES TO THAT THERE'S A MATCH SO I ON THE FORM IT STATES WHAT IS THE SOURCE [1:08:33] OF THE MATCH SO YOU I THINK IT WOULD BE REASONABLE AND CAN I CAN WITH ME TO STATE THAT THE CITY WOULD BE WILLING TO MATCH [1:08:41] VIA EXTENSION AND THAT WOULD BE THE EXTENT OF THE SPECIFIC FUNDS IF THAT'S WHAT YOU CHOSE [1:08:46] TO DO OR LOAN FORGIVENESS IF THE DEVELOPER CHOSE TO DO THAT I WILL TELL YOU AS A FOR PROFIT ENTITY [1:09:00] LOAN FORGIVENESS WOULD BE TAXABLE SO NOT PREFERRED BUT A YOU COULD SAY WE ARE WILLING TO MATCH THE LOAN FOR LOAN EXTENSION ONLY AND SO THEREFORE IF THEY DON'T [1:09:05] COUNT THOSE FUNDS THE HOPE WOULD BE THAT THEY DON'T AWARD THOSE THIS PROJECT THAT MONEY [1:09:12] DOES THAT MAKE SENSE? YES. THANK YOU FOR THAT CLARIFICATION. CLARIFICATION, I DO APPRECIATE THAT. IT WAS JUST OUTSIDE THE BOX [1:09:20] THINKING COMMISSIONER, THANK YOU TO THERE'S CONVERSATION ABOUT POTENTIALLY A DEVELOPER MIGHT HAVE TO COME BACK FOR ADDITIONAL FUNDING I GUESS [1:09:26] WHAT'S THE OVERALL REQUIREMENT AND ASK WE WE HAVE NO IDEA WE JUST DIDN'T WANT TO COME BACK [1:09:34] AND SAY HEY COME HERE NOW AND SAY HEY THIS IS ALL THAT WE NEED AND THEN ALL OF A SUDDEN IN SIX MONTHS COME BACK AND SAY WELL ACTUALLY JUST [1:09:41] KIDDING. WE WE DO NEED ADDITIONAL FUNDING SO WE JUST WANT IT NOTED THAT WE MAY COME BACK WE'LL HAVE TO BEFORE THAT WERE [1:09:47] TO HAPPEN WE WOULD HAVE A LOT OF DISCUSSIONS WITH STAFF AND DISCUSSIONS ON, YOU KNOW, [1:09:53] WHERE THE CITY IS AT FINANCIALLY OR OR JUST YOU KNOW, THE ABILITY TO SUPPORT THE PROJECT AND SO THE STAFF [1:09:58] ANSWER BEFORE WE EVEN GET TO YOU MIGHT SAY WELL YOU CAN COME BACK BUT IT'S PROBABLY NOT GOING TO BE SUPPORTED OR [1:10:03] IF WE ARE OR THE OTHER OPTION TO MOST OF OUR OR A LOT OF OUR PROJECTS IN HENNEPIN COUNTY WE [1:10:10] WORK THROUGH A HENNEPIN COUNTY HOME FUNDS A HAVE FUNDS AND THROUGH THEIR RFP. SO THAT MIGHT BE ANOTHER [1:10:16] OPTION IF THERE WERE A GAP ME THAT WE WOULD PURSUE AND LIKELY PURSUE THAT FIRST BUT [1:10:21] WE JUST DON'T WANT TO YOU KNOW IN SIX MONTHS FROM NOW YOU SAY WELL HOW COME YOU DIDN'T TELL [1:10:26] US THAT YOU MIGHT COME AND ASK FOR ADDITIONAL FUNDS SO WE HAVE NO INTENTION TO NOW BUT [1:10:33] ALSO JUST WANT TO BE VERY OPEN AND HONEST WITH YOU. AND THEN FOR STAFF DO WE HAVE ANY PRELIMINARY FUNDING [1:10:41] IDENTIFIED WITHIN THE BUDGET CHAIR AND COMMISSIONER IS THERE THERE'S SOME NOW I MEAN [1:10:48] WE HAVE THINGS THAT WOULD POTENTIALLY FIT HOWEVER WE HAVEN'T ANY OF THOSE FUNDS BUT [1:10:53] WE COULD LOOK AT OUR POOLED TIF FROM OUR DISTRICTS ACROSS THE CITY THAT HAVE BEEN ACCUMULATING POOLING FOR [1:11:00] AFFORDABLE HOUSING ACTIVITIES. WE COULD LOOK THE AFFORDABLE HOUSING TRUST FUND IF IT WERE TO A NEW FUNDING SOURCE THAT [1:11:07] WOULD CLOSELY MAP ONTO PROJECT AS IT'S WITHIN THE GOALS OF THE AFFORDABLE HOUSING TRUST FUND MIGHT BE A NEW [1:11:15] PROGRAMING OPTION FOR CDBG FUNDS IT COULD BE A OPTION FOR THE USAGE THE LOCAL AFFORDABLE [1:11:22] HOUSING AID LARGER FUNDS THAT WE'VE JUST STARTED TO RECEIVE THIS MONTH. SO THERE'S DEFINITELY OPTIONS [1:11:30] BUT AT THIS POINT WE HAVEN'T DESIGNATED OR ALLOCATED THANK YOU THAT I APPRECIATE THAT WE [1:11:37] HAVE PLENTY OF IT SOUNDS LIKE WE HAVE PLENTY OF OPPORTUNITIES OR OPTIONS POSSIBLE SO I GUESS I WOULD [1:11:45] LIKE TO LEAD IN THE DISCUSSION OF ARE WE WILLING TO SUPPORT A MATCH SUBSIDY AND IF SO DO WE [1:11:54] HAVE A LIMIT OR A SPECIFIC AMOUNT THAT WE'RE LOOKING FOR OR LOOKING TOWARDS AS A BOARD [1:12:07] ? AND REMEMBER IT'S BETWEEN LIKE 100 100,005 HUNDRED AND 500,000 IT SOUNDS LIKE WOULD BE THE MAX AM I CORRECT ON [1:12:14] THAT THAT OF THE REQUEST OF THE MATCH THAT IT'S INTERESTING FUND OKAY YES AND [1:12:21] NO THEY DON'T TELL YOU HOW MUCH A PROJECT MIGHT GET IF [1:12:28] YOU SIGN THE FORM THEN THE ANTICIPATION WOULD BE THAT THE CITY OR COUNTY WOULD MATCH DOLLAR FOR DOLLAR. WE HAVE RECENTLY A FEW OF OUR [1:12:36] PROJECTS HAVE RECEIVED LIKE A COUPLE HUNDRED THOUSAND SO WE I DON'T THINK I'VE SEEN A [1:12:44] PROJECT THAT WE'VE DONE THAT'S GOTTEN OVER 500,000 BUT THERE COULD BE SOMETHING I THINK IF [1:12:51] YOU WANTED THE FORM DOESN'T SPECIFICALLY THAT'S THE THING THE FORM DOESN'T SPECIFICALLY STATE HOW MUCH YOU'RE WILLING TO CONTRIBUTE SO IT'S KIND [1:12:57] OF ODD FUNDING BUT I THINK YOU COULD PUT THAT IN THE IN THE SOURCE OF FUNDS THAT THE CITY [1:13:05] BE WILLING TO MATCH UP TO WHATEVER DOLLAR AMOUNT THAT MIGHT BE. THANK YOU JERRY. [1:13:10] AND COMMISSIONERS, I JUST ALSO WANT TO ADD AS MEGAN MENTIONED EARLIER, THE POTENTIAL MATCH [1:13:16] COULD ALSO BE THE LOAN EXTENSION. THAT COULD BE ANOTHER WAY FRAMING WHAT THAT LOCAL MATCH WOULD LOOK LIKE. [1:13:22] SO I JUST WANT TO MAKE SURE THAT THAT IS UP FOR DISCUSSION AS WELL [1:13:31] . COMMISSIONER MUELLER, THANK YOU CHAIR. SO WHAT MAKES SENSE IF WE DID [1:13:39] THE LOAN AT 210,000 AND THEN A CONTRIBUTION TO GET UP TO THE [1:13:47] 500 SO THAT WOULD NOT CONTRIBUTING A FULL NEW [1:13:52] 500,000 TURN TURN COMMISSIONERS JUST TO CLARIFY THAT THERE'S A 150,000 AND A [1:13:57] 160,000 SO WE'RE AT 310 THAT'S THE TOTAL ON BALANCE. BUT YEAH, I THINK THAT'S A DEFINITELY A STARTING POINT OR [1:14:03] IT COULD BE YOU ENDING AS WELL AND I SAID I, I JUST WANT [1:14:14] TO SAY THAT I LIKE SPENDING MONEY ON THIS PROJECT BECAUSE IT'S IN A GOOD LOCATION AND I LIKE TO KEEP BLOOMINGTON NICE. [1:14:19] MAKING IT NICE IS BETTER [1:14:27] . COMMISSIONER MUELLER I JUST HAVE TO SAY THAT I AGREE WITH COMMISSIONER MUELLER ABOUT [1:14:33] GETTING IT UP TO 500 AND DIVIDING IT BETWEEN THE LOAN AND THE HOWEVER YOU WORDED THAT. SO ELOQUENTLY I I, I WOULD BE [1:14:44] IN FAVOR OF THAT CHAIR AND COMMISSIONERS I DO ALSO WANT TO JUST ADD TO CAN YOU JUST [1:14:52] MENTION TOO IS THAT THAT 310 AMOUNT DOESN'T INCLUDE THE INTEREST THAT'S ALREADY ACCRUED ON THOSE LOANS SO THAT [1:15:00] IS ANOTHER THING THAT WE WOULD WANT TO KEEP IN MIND IN THIS DISCUSSION [1:15:09] AND THE THE ACCRUAL [1:15:15] IS ONLY HAPPENING ON ONE OF THE LOANS. IT'S NOT HAPPENING ON BOTH OF THEM. SO THAT'S WHY THAT'S ONLY SHOWING THE 165. [1:15:24] COMMISSIONER MOUA THANK YOU CHAIR. SO I WOULD BE SUPPORTIVE OF EXTENDING THE CURRENT LOAN [1:15:30] AND THE INTEREST ON THAT AND THEN THE NEW MONEY WOULD BE JUST WHATEVER TO COVER THAT [1:15:37] 500 THAT'S I WAS GOING TO SAY JUST YEAH OKAY. SO IT SOUNDS LIKE WE HAVE A RECOMMENDATION IS THERE ANY [1:15:44] MORE DISCUSSION ON THAT FOR NOW ON THAT RECOMMENDATION ANY OTHER RECOMMENDATIONS THAT [1:15:50] WOULD LIKE TO BROUGHT TO THE FLOOR? OKAY. HEARING NONE IT LOOKS LIKE WE [1:15:56] WOULD BE HAVING A MOTION TO SUPPORT AND THE AND I'M THE METROPOLITAN COUNCIL LOCAL [1:16:03] INCENTIVE ACCOUNT PROGRAM FUNDS BY RECOMMENDING CITY COUNCIL APPROVE AUTHORIZING [1:16:11] THE LOAN EXTENSION INCLUDING INTEREST EARNED AND THEN MATCHING DIFFERENCE CORRECT [1:16:19] IN MY I WILL JUST ADD AND IT'S SOLELY BASED ON WHAT ANY [1:16:26] POTENTIAL AWARD COULD BE SO IT WOULD JUST BE A LOCAL MATCH IT COULD POTENTIALLY BE LESS THAN THAT TOTAL OF $500,000 THAT WE [1:16:32] WOULD BE ASKED TO MATCH BUT IT'S I THINK WHAT STAFF IS REQUESTING TONIGHT IS JUST [1:16:38] KIND OF FEEDBACK OF WHAT THE BUT THE SCOPE OR RANGE THAT [1:16:44] WOULD BE WILLING TO CONSIDER. SO THAT WOULD BE THE RECOMMENDATION TO CORRECT YES. COMMISSIONER MOUA AND I WOULD ADD OUR PREFERENCE FOR BUCKETS [1:16:52] WOULD BE TO USE THE LOAN EXTENSION INSTEAD OF NEW MONEY . YEAH. OKAY SO WITH THAT [1:17:06] YES I WANT TO [1:17:13] SO THANK YOU CHAIR COMMISSIONERS I JUST TO KIND OF REITERATE WHAT THE POTENTIAL MOTION WOULD BE. [1:17:19] IT WOULD BE A MOTION TO SUPPORT SAYING COMPANIES APPLICATION TO THE [1:17:24] METROPOLITAN COUNCIL LOCAL HOUSING INCENTIVES ACCOUNT AND ESSENTIALLY WHAT WE'RE WHAT YOU WOULD BE RECOMMENDING [1:17:32] TONIGHT IS RECOMMENDING CITY COUNCIL APPROVE AUTHORIZING SIGNATURE OF THAT AWARD ACKNOWLEDGING IT SO THAT'S [1:17:40] YOUR THAT'S WHAT YOU'RE WOULD BE MOTIONING TO APPROVE IN ADDITION TO THAT KIND OF WITH THE DISCUSSION WE'VE [1:17:48] HAD TONIGHT ACKNOWLEDGING THAT THE RECOMMENDATION TO STAFF AS PART OF THIS MOTION IS TO STAY [1:17:55] WITHIN THE LOAN EXTENSION AS THE LOCAL MATCH FIRST BEFORE ADDING ADDITIONAL LOCAL [1:18:01] DOLLARS SO MOVED WE HAVE A [1:18:08] MOTION BY COMMISSIONER MOI SECOND AND A SECOND BY COMMISSIONER MUELLER. IS THERE ANY DISCUSSION [1:18:14] HEARING NONE ALL IN FAVOR PLEASE SIGNIFY BY SAYING I I I OPPOSED MOTION PASSES SIX ZERO [1:18:21] THANK YOU SO MUCH BOTH OF YOU FOR YOUR TIME TONIGHT. HEY, MOVING ON TO NEW BUSINESS [1:18:29] AND I'M 5.2 IS THE PUBLIC HEARING CONTRACT FOR PRIVATE DEVELOPMENT WITH WEST HENNEPIN AFFORDABLE HOUSING TRUST FOR [1:18:36] SALE AND REDEVELOPMENT OF 93 PARK AVENUE SOUTH. WE WILL START WITH THE STAFF [1:18:43] REPORT I'M JUST GOING TO GIVE A FORMAT WILL BE STARTING WITH THE STAFF REPORT WE WILL THEN OPEN IT UP FOR PUBLIC COMMENT [1:18:48] AND THEN WE WILL VOTE AFTER THAT OR PASS. YES. [1:18:55] YEAH WE'LL HAVE THE STAFF REPORT BACK. YES. GOOD EVENING CHAIR AND COMMISSIONERS WE'RE HERE TO DISCUSS 93 PARK ARE LEGALLY KNOWN SLOT FOR BLOCK THREE FA [1:19:04] THIRD EDITION THIS PROPERTY WAS PURCHASED BY THE HRA IN LATE 2020 AND A SUBSTANDARD STRUCTURE REMOVED WITH THE [1:19:11] GOAL OF CREATING AFFORDABLE HOMEOWNERSHIP, NEW CONSTRUCTION THE REDEVELOP MENT PROPERTY HAS BEEN GOING THROUGH THE NECESSARY STEPS TO [1:19:18] SUBDIVIDE THE LOT IN PREPARATION FOR REDEVELOPMENT AND EARLY WE'LL SPEAK ABOUT WHAT THAT PROCESS HAS LOOKED LIKE UP UNTIL THIS [1:19:26] POINT. GOOD EVENING CHAIR AND BOARD MEMBERS. SO WE HAD TO SUBMIT TO APPLICATIONS FOR THESE ITEM [1:19:34] ONE WAS LOTS PLEAD AND I'M PRETTY SURE GOING TO IT'S GOING TO MAKE SENSE ONCE YOU HEAR OUR PARTNER'S [1:19:41] PRESENTATION BUT ONE WAS THE LAST BLEAT AND THEN THE SECOND APPLICATION WAS THE VAGUE VACATION EASEMENT. [1:19:48] SO THE FIRST APPLICATION FOR THE LAST BLADE WENT TO THE RC THE DEVELOPMENT REVIEW COMMUNITY FOR THE CITY OF BLOOMINGTON IT IS CONFIRMED [1:19:56] BY SEVERAL MEMBERS OF CITY DEPARTMENTS AND DIVISIONS. [1:20:04] THEY GAVE COMMENTS ABOUT THE ITEM AND ONE OF THE BIGGEST COMMENTS WAS THAT WE NEEDED TO PRESERVE A TREE AT THE LOT SO [1:20:11] A STAFF WORK, A PRESERVATION TREE PLAN AND THEN ONCE THAT ONCE THAT THAT WAS APPROVED [1:20:18] THEN WE WENT TO THE PLANNING COMMISSION ON MAY 16 AND THE PLANNING COMMISSION APPROVED [1:20:25] THE ITEM WHICH WHEN BEFORE CITY COUNCIL ON MAY 20/20 AS A [1:20:33] CONSENT AGENDA ITEM AND THEN HE WAS APPROVED SO FOR THE VACATION EASEMENT WE WENT TO [1:20:41] CITY COUNCIL LAST NIGHT AND IT WAS ACTUALLY APPROVED BY THE CITY COUNCIL. WE ARE EXPECTING THE CLOSING [1:20:48] DATE TO BE LATE AUGUST AND IT ALL DEPENDS ON THE RECORDING RECORDING THE MY MAILERS WITH [1:20:53] THE COUNTY SO IN LATE 2023 [1:20:59] DEVELOPMENT PLAN WAS BROUGHT TO THIS BODY FOR CONSIDERATION AND THE BOARD ULTIMATELY [1:21:04] APPROVED STAFF TO MOVE FORWARD WITH THE REDEVELOPMENT PROJECT IN PARTNERSHIP WITH WEST HENNEPIN AFFORDABLE HOUSING, LAND TRUST AND TWIN CITIES [1:21:10] HABITAT FOR HUMANITY REPRESENTATIVES FROM THOSE ORGANIZATIONS ARE HERE TONIGHT TO KIND OF JUST GIVE US A REFRESHER PRESENTATION IT'S [1:21:17] BEEN A WHILE AND TALK ABOUT THE DEVELOPMENT PLAN AND COST AND THEN AFTER THAT WE CAN [1:21:22] OPEN THE PUBLIC HEARING AND THEN WE WOULD BE LOOKING FOR A MOTION TO APPROVE THE SALE OF THE PROPERTY AND THE [1:21:29] CONTRACT FOR PRIVATE DEVELOPMENT. SO I WILL INTRODUCE BRENDA LIONEL WALKING WITH WEST HENNEPIN AFFORDABLE HOUSING [1:21:34] LAND TRUST AND NOAH KELLER WITH TWIN CITIES HABITAT FOR HUMANITY THEY COME UP I FEEL [1:21:39] WELCOME. GOOD EVENING CHAIR AND [1:21:47] COMMISSIONERS EVENING MY NAME IS NOAH KELLER AND WITH TWIN CITIES HABITAT FOR HUMANITY. [1:21:53] I AM A LAND ACQUISITION PROJECT MANAGER ALSO A GLOBAL ENGAGEMENT PROGRAM MANAGER. I CAN RECRUIT PEOPLE FOR [1:22:02] INTERNATIONAL BUILD TRIPS AFTER THE MEETING HERE AND I WILL ALLOW BRENDA TO INTRODUCE HERSELF AS WELL. [1:22:09] I'M BRENDA ON A WALKIE. I'M THE EXECUTIVE DIRECTOR AT HOMES WITHIN REACH AND WE WERE APPROACHED WITH THIS PROJECT BACK PROBABLY IN 2001. [1:22:15] IT'S CHANGED QUITE A BIT SINCE THAT ORIGINAL MEETING AND SO THAT'S WHERE WE'RE AT TODAY. [1:22:22] OKAY. SO BEAR WITH ME IF YOU'VE BEEN THROUGH SOME OF THESE SLIDES LIKE STEPH SUGGESTED BEFORE, [1:22:30] THIS IS A BIT OF A REFRESHER. JUST REALLY QUICK OVERVIEW OF BOTH OF OUR ORGANIZATIONS KIND OF SPELLING OUT THE [1:22:35] VISION MISSION AND CORE VALUES. I'LL LET EVERYONE READ THROUGH THESE FOUR HOMES WITHIN REACH [1:22:40] WHICH IS INCLUDED WITHIN WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST AND SINCE 2002 THEY [1:22:50] HAVE SERVED 14 COMMUNITIES 195 HOMES IN THE PORTFOLIO. I IMAGINE THAT HAS PROBABLY [1:22:57] INCREASED BY A FEW SINCE WE'RE ABOUT 220 RIGHT NOW. HERE WE GO ASSISTED OVER 234 FAMILIES ACHIEVE HOMEOWNERSHIP [1:23:05] AT AN AVERAGE AMI OF 55.6% [1:23:11] INCLUDING 14 HOMES IN BLOOMINGTON WITH AVERAGE AMI 46.2% OVER AT HABITAT [1:23:17] AGAIN MISSION VISION AND LET FOLKS READ THROUGH THOSE THAT'S INCLUDED IN THE IN THE RECORDING I'M SURE I GUESS AS [1:23:24] A AS A NOTE ABOUT OUR INVOLVEMENT I THINK WE DID A [1:23:32] NEW SINGLE FAMILY HOME IN BLOOMINGTON A COUPLE OF YEARS AGO BUT NOTHING IN THE YOU KNOW, KIND OF WE'VE [1:23:39] BEEN EMERGING OUT OF THE PANDEMIC SO WE'RE EXCITED TO GET THIS PROJECT GOING. [1:23:46] WE'VE SERVED ABOUT 1700 FAMILIES AND WORKED IN 66 CITIES IN THE SEVEN COUNTY [1:23:52] METRO AREA AND THAT'S SINCE 1985 JUST TO GET US A HIGH [1:23:58] LEVEL NOT REAL MATH BUT IT'S MATH ME VACANT LAND AND IN A DESIRABLE AREA THAT'S 9030 AND [1:24:05] I THINK THE NEW ADDRESS AFTER THE LOT SPLIT WOULD BE 9036 BUT THAT'S SUBJECT TO COUNTY [1:24:12] APPROVAL PLUS HOMES WITHIN REACH. ACTING AS THE DEVELOPER PLUS TWIN CITIES HABITAT FOR HUMANITY ACTING AS A GENERAL [1:24:19] CONTRACTOR IN THIS SITUATION WE WOULD I SHOULD MENTION WE WON'T DEVIATE TOO MUCH FROM [1:24:26] WHAT YOU MIGHT KNOW HABITAT TO DO WE WOULD STILL USE LEVERAGE VOLUNTEER LABOR ON THE SITES [1:24:31] AND AS MUCH AND AT COST MATERIAL SUPPORT AS WE CAN AS [1:24:38] WE CAN FIND. AND THEN YOU ADD BLOOMINGTON HRA SUPPORT FINANCIAL ADVOCACY [1:24:45] I BELIEVE THERE'S SOME NEW NEWISH ZONING RULES WHICH WILL APPLY TO THIS PROJECT WHICH IS EXCITING AND WE GET AN [1:24:50] EXCELLENT OPPORTUNITY CREATE AFFORDABLE HOMEOWNERSHIP USING A NEW APPROACH. [1:24:56] THE NEXT FEW SLIDES I THINK ARE JUST GIVING A LITTLE BIT OF NEIGHBORHOOD CONTEXT. [1:25:03] I THINK YOU ALL ARE MORE FAMILIAR WITH THIS PROJECT OR WITH THIS LOCATION THAN I AM SO IT'S PROBABLY PRETTY STRAIGHTFORWARD AND BRENDA [1:25:11] FEEL FREE TO JUMP IN AT ANY POINT IF YOU'D LIKE TO ADD ANYTHING. WE'RE EXCITED ABOUT THE PROXIMITY TO KIND OF ALL THE AMENITIES THAT HOMEBUYERS WANT [1:25:18] SHOPPING CHURCHES, SCHOOLS, PARKS AND ACCESS TO [1:25:24] TRANSPORTATION AND OTHER AMENITIES. JUST A FEW PHOTOS ALONG PARK [1:25:29] AVENUE IN GENERAL VICINITY TYPICALLY A RAMBLER ONE STORY [1:25:37] RAMBLER NEIGHBORHOOD BUT THERE ARE A FEW DEVIATIONS FROM THAT [1:25:42] CURVE CONTINUING ON THE SUMMARY BLOOMINGTON HRA OWNED LOT WOULD BE SPLIT INTO TWO [1:25:48] LOTS OF STUFF MENTIONED THAT PROCESS HAS BEGUN. EACH OF THOSE LOTS IS GOING TO HAVE 60 FEET OF FRONTAGE ON [1:25:53] PARK AVENUE AND BE FRONTLOADED IN TERMS OF CAR ACCESS. SO TWIN CITIES HABITAT WOULD [1:26:00] CONSTRUCT TWO NEW SINGLE FAMILY HOUSES. EACH OF THOSE HOUSES WOULD A DETACHED TWO STALL GARAGE AND [1:26:05] EACH OF THOSE GARAGES WOULD HAVE AN ATTACHED ACCESSIBLE DWELLING UNIT. [1:26:12] THE 80 OR 80 TO THE 80 USE WOULD MATCH THE PRIMARY RESIDENCES IN TERMS OF THE OVERALL EXTERIOR APPEARANCE [1:26:20] SIDING, ROOF STYLE ETC. AND THEN LIKE I MENTIONED THEY'D BE ATTACHED TO THE GARAGES AND [1:26:25] THEN IN ADDITION TO THE TWO STYLES WITHIN THE GARAGE THERE WOULD BE AN ADDITIONAL PARKING [1:26:32] SPOT AND A SPECIFICALLY GEARED FOR FOLKS LIVING IN THE ADU [1:26:38] COVER THAT EXPOSURE POINT I MENTIONED THE FRONT LOADING, NO ALLEY ACCESS AND THAT THERE [1:26:45] WOULD BE AN EXISTING MATURE TREE THAT I THINK IS ON THIS JUST ON THE SOUTH SOUTHERN LOT WHICH WE WOULD PRESERVE NOW [1:26:55] IT'S A LITTLE BIT HARD TO READ. I ALSO WENT OLD SCHOOL AND PRINTED OFF SOME PAPER COPIES [1:27:00] OF THE SITE PLAN IF ANYBODY WOULD LIKE TO [1:27:10] VIEW THAT. SAME WITH FULL HOUSE PLANS I THINK IT'S PRETTY STRAIGHTFORWARD. WE DO TWO SEPARATE HOUSE MODELS. I BELIEVE THEY CAN BOTH BE UP [1:27:16] TO FOUR BEDROOMS IN THE HOUSES AND THEN EACH 80 WOULD BE ONE BEDROOM WITH THE MODEL AND THAT'S SHOWN ON THE LEFT THERE [1:27:23] IS TYPICALLY A THREE BEDROOM BUT IF WE'RE NOT CONCERNED WATER TABLES AND THAT SORT OF THING THEN WE WE OFTEN ADD [1:27:30] A FOURTH BEDROOM IN THE BASEMENT. SO THIS IS ONE OF THE HOUSE [1:27:37] MODELS TWO STOREY GABLE ROOF WITH A BUMP OUT IN THE FRONT TO GIVE IT A LITTLE BIT OF OF [1:27:44] DEPTH WE USE I'LL GO THROUGH ALL THE HOUSE DETAILS LATER YOU CAN KIND OF SEE THE FLOOR [1:27:49] PLANS OF THE HOUSE IN THE UPPER CORNER AND THEN THE FLOOR PLAN OF THE ACCESSIBLE DWELLING IN THE CENTER LOWER [1:27:56] PART OF THE SCREEN. SO ADU BASICALLY HAS A BEDROOM WITH A CLOSET, A BATHROOM, A [1:28:04] FULL BATHROOM UTILITY ROOM AND THEN THE REMAINING LARGE ROOM IS KIND OF A COMBINED KITCHEN [1:28:11] LIVING ROOM SPACE SECOND RESIDENCE IS A LITTLE BIT MORE [1:28:18] OF A ONE AND A HALF STOREY LOOK FROM THE STREET. IT IS CONSIDERED BY CODE TO BE A TWO STOREY AGAIN VERY [1:28:25] SIMILAR ADU FLOOR PLAN. I'M TRYING TO THINK IF THERE'S [1:28:31] ANY I THINK WE'LL JUST GET TO THE CONSTRUCTION STANDARDS [1:28:37] WHICH WILL BE HELPFUL. SO ALL OF OUR HOUSES ARE ENERGY STAR CERTIFIED. IN ADDITION TO THAT THESE ARE [1:28:42] GOING TO BE SOLAR ARRAY JUST MEANING THAT WE GET SIGNOFF FROM ROOF TRUSS ENGINEERS THAT [1:28:49] IF SOMEBODY WANTS TO ADD SOLAR PANELS THAT ROOF IS GOING TO CARRY THAT LOAD PLUS WE INCLUDE INFRASTRUCTURE RUNNING [1:28:56] FROM THE ROOF DOWN TO THE UTILITY ROOM TO MAKE SURE THAT IF SOMEBODY WANTED TO ADD SOLAR PANELS IN THE FUTURE [1:29:02] THAT THAT'S THEY DON'T HAVE MAKE NEW PENETRATIONS FOR WIRING AND THEN THERE'S A DEDICATED SPOT IN THE UTILITY [1:29:09] ROOM FOR FOR AN INVERTER OR ANY OTHER HARDWARE FOR THE SOLAR PANELS ALTHOUGH EVEN [1:29:14] THAT IS NOW CHANGING WHERE THEY NEED IT LESS AND LESS KIND OF INTRUSION INTO THE [1:29:19] HOUSE ITSELF. THEY CAN DO MOST OF THAT WIRING OUTSIDE WE GET OUR HOUSES INDOOR AIR PLUS [1:29:26] CERTIFIED. WE USE LOW FLOW PLUMBING FIXTURES AND WE CONSISTENTLY PERFORM BETTER THAN INDUSTRY [1:29:35] STANDARD ON BLOWER DOOR TESTS AND HER SCORES WE UTILIZE HIGH EFFICIENCY APPLIANCES [1:29:42] INCLUDING HIV IN ALL OF OUR HOUSES. WE'RE STILL I THINK DETERMINING EXACTLY WHAT THE [1:29:50] UTILITY KIND OF LAYOUT IS GOING TO BE FOR EACH ADU YOU [1:29:56] OBVIOUSLY DON'T NEED AS LARGE OF A FURNACE OR POSSIBLY A FURNACE AT ALL. WE'VE BEEN WORKING A LOT WITH [1:30:01] WITH AIR SOURCE HEAT PUMPS TO HEAT WITH A BACKUP FUEL SOURCE. [1:30:06] SO WE FINALIZED THAT AS WELL [1:30:12] ALL OF OUR KITCHEN APPLIANCES AND EVERYTHING ARE WHIRLPOOL BRAND WE USE RESILIENT AND [1:30:20] HIGH QUALITY INTERIOR AND EXTERIOR FINISHES ON THE OUTSIDE WE USE SMART SIDE IT'S TYPICALLY PRE PAINTED SO THAT [1:30:25] THE ONLY PAINTING THAT HAS TO HAPPEN AFTER INSTALL IS JUST TOUCH A PAINTING OVER NAIL [1:30:31] HOLES AND THAT SORT OF THING MAKES IT PRETTY GOOD THAT. THE PRE PAINTED STUFF IS LIKE BAKED ON AND WHETHER IT'S VERY [1:30:39] NICELY OR WHETHER IT'S VERY SLOWLY WHICH IS GOOD WE USE A LUXURY VINYL TILE FLOORING PRODUCT OR LV TI THAT LOOKS A [1:30:46] LOT BETTER THAN SOME OF THE OLDER LAMINATE PRODUCTS BUT IT'S IT'S A LOT MORE DURABLE. [1:30:54] WELL, ALL OF OUR WINDOWS ARE ANDERSEN WINDOWS SERIES 100 AND THEN WE USE GAF SHINGLES [1:31:01] AND UNDERLAYMENT AND ALL THAT GOOD STUFF FOR THE ROOF SYSTEM . AND THEN ALL OF OUR HOUSES ARE [1:31:06] EQUIPPED WITH ACTIVE RADON MITIGATION AND SOME PUMPS AND DRAIN TILE SYSTEMS. [1:31:15] NOW WE GET TO THE REAL FINE PRINT AND AGAIN I CAN GO OVER THESE THESE NUMBERS WITH [1:31:22] ANYBODY WHO HAS WORSE VISION THAN ME OR EVEN THE SAME [1:31:27] VISION AS I DO. SO ESSENTIALLY THE TOTAL CONSTRUCTION COSTS ON EACH OF THESE IS GOING TO HOVER I [1:31:35] WANT TO SAY AROUND FIVE I'M SORRY 450 ISH THOUSAND AND MY READING FOR 55 OR 53 SO THAT [1:31:44] INCLUDES UH THAT ASSUMES A LAND WRITE DOWN BY THE CITY SO SELLING THE THE LOTS TWO HOMES [1:31:52] WITHIN REACH FOR A DOLLAR A PIECE LET'S SEE SOME OTHER HIGH LEVEL ITEMS UH SOIL TESTS [1:32:03] AND SURVEYS. WE'RE KIND OF ASSUMING THAT WE [1:32:08] COULD UH UTILIZE THE SURVEYS THAT THE CITY HAS BEEN WORKING OFF OF FOR THAT LOT SPLITTER TO DRIVE DOWN THE COSTS OF THE [1:32:16] PERMIT SURVEYS AND I THINK WE'VE DISCUSSED THE CITY TAKING CARE OF SOIL TESTING [1:32:22] WHETHER OR NOT THAT WAS GOING TO BE IN THE FORM OF HIRING THE FIRM, THE TESTING FROM YOURSELVES OR REIMBURSING FOR [1:32:30] THAT COST. I DON'T KNOW WHERE WE LANDED ON THAT ACTUALLY BUT SO WE CAN TALK ABOUT THAT UPDATE AS WELL TOTAL SOFT COSTS RIGHT AROUND [1:32:39] THE $30,000 MARK TOTAL DEVELOPMENT COST RIGHT AROUND ALMOST 490 FOR EACH PROJECT. [1:32:47] UM AND THEN AT THE BOTTOM WE HAVE DEVELOPMENT GAP SOURCES [1:32:54] CITY OF BLOOMINGTON WHERE WE'RE ASSUMING FUNDING SUPPORT FROM THE CITY. UH, AND THEN I JUST INCLUDED [1:33:02] AN ADDITIONAL LINE ITEM THERE IN CASE THERE WERE SOIL CORRECTIONS WITH THE ASSUMPTION THAT BRENDA AND I ARE GOING TO BE WORKING OFF IS [1:33:07] THAT THESE WOULD BE CONSIDERED PAD READY WHICH THAT TERM GETS THROWN AROUND A LOT BUT ESSENTIALLY IT MEANS THAT IF [1:33:14] THERE ARE COSTLY SOIL CORRECTIONS THAT NEED TO BE DEALT WITH THE CITY WOULD PROVIDE THAT SUPPORT AS WELL. [1:33:20] AND THEN AFFORDABILITY GAP FINANCING WE'RE ASSUMING YOU KNOW FAMILY OF FIVE RIGHT AROUND 60% AMI FOR THESE [1:33:28] HOUSES FIRST MORTGAGE WOULD BE LOOKING SOMEWHERE IN THE LOW [1:33:33] TWO HUNDREDS CITY OF BLOOMINGTON FUNDING KIND OF THE REMAINDER LEFTOVER FROM THE DEVELOPMENT GAP WOULD HELP [1:33:38] WITH THE AFFORDABILITY GAP AND THEN HOMES WITHIN REACH IS ALSO SECURED TO THAT BELIEVE [1:33:46] IN A MAJOR A GRANT TO SUPPORT WITH THAT DID YOU WANT TO MENTION ANYTHING ELSE ABOUT THE PRO FORMA? [1:33:52] NO, I THINK WE'VE COVERED ALL THE THE 130 FOR EACH UNIT WAS ORIGINALLY SECURED IN THE 2022 [1:34:01] ALLOCATION FOR MINNESOTA HOUSING AND IN THAT APPLICATION WE DID REQUEST FUNDING FOR ONE SINGLE FAMILY [1:34:06] HOME OR A TWIN HOME AND THAT WAS WHERE WE CAME UP WITH [1:34:12] 260,000 AT THAT TIME THE CITY HAD SUPPORTED THE APPLICATION AT A LEVEL OF 150,000 FOR THAT [1:34:20] ONE UNIT AS WE MOVED FORWARD AND WE FOUND OUT THAT THE LOT COULD POTENTIALLY BE SPLIT AND [1:34:28] THAT THE ZONING WAS POTENTIALLY GOING TO CHANGE TO ALLOW 80 USE IN THE CITY WE [1:34:33] WERE ASKED TO HOLD OFF SO WE DID GO BACK MINNESOTA HOUSING AND ASK FOR THE APPROVAL TO [1:34:39] MOVE FORWARD WITH TWO SINGLE FAMILY HOMES WITH 80 USE ESSENTIALLY GOING FROM EITHER [1:34:44] ONE OR TWO UNITS TO THE ABILITY TO HAVE FOUR UNITS AND WE WERE AWARDED THE ABILITY TO MAKE THAT CHANGE NO ADDITIONAL [1:34:51] MONEY WAS AWARDED THOUGH. SO WE'RE STILL AT THE 260 [1:34:57] RATE. SO THAT WRAPS UP THE THE PROJECT PRESENTATION. [1:35:04] DO YOU HAVE ANY QUESTIONS FOR US CHAIR AND COMMISSIONERS [1:35:11] ASHTON KUTCHER? MOUA YOU'VE BEEN TALKING A LOT TONIGHT I GUESS I'M WONDERING [1:35:18] ABOUT THE ADU PEACE ABOUT WHERE THE DIRECTION CAME FOR THAT ESPECIALLY AND FIRST [1:35:25] OF ALL THANK YOU FOR BEING HERE AND YOU I, I LOVE THE WORK THAT YOU DO THERE'S AND [1:35:30] HABITAT FOR HUMANITY HOUSE THREE HOMES DOWN FOR ME AND [1:35:36] IT'S FANTASTIC TO SEE A FAMILY LIVING THERE INSTEAD OF A DILAPIDATED GATED HOUSE THAT NO ONE WANTS TO LOOK AT. [1:35:41] SO THANK YOU FOR THE WORK YOU DO PROVIDING FAMILIES THE OPPORTUNITY TO CREATE GENERATIONAL WEALTH AND [1:35:47] STABILITY WITHIN THEIR FAMILY. SO THANK YOU SO MUCH. BUT MY QUESTION IS AROUND THE [1:35:52] ADDUS CONSIDERING THE COSTS THAT THE ADDITIONAL COSTS THAT IT ADDS ESPECIALLY IN TODAY'S [1:35:58] RATES IS THERE WHAT'S THE BENEFIT OF HAVING 80 NOW VERSUS ALLOWING THE OWNERS THE [1:36:06] OPTION TO DO THAT IN THE FUTURE IF THEIR NEEDS DEMAND IT SO THAT THE INITIAL COST CAN BE LESS? [1:36:14] THE 80 USED WERE ADDED AT THE REQUEST OF STAFF AT THAT TIME SINCE IT WAS A NEW ZONING [1:36:21] ALLOWING ALLOWANCE THEY HAD COME TO US AND ASKED IF WE WOULD BE FIRST TO ATTEMPT THIS TYPE OF A PROJECT AND WE DO [1:36:29] HAVE PEOPLE THAT COME TO US WHERE IT'S A MULTI-GENERATIONAL FAMILY BUT [1:36:35] THEY DO WANT THE PARENTS IN THEIR OWN UNIT AND WE DON'T HAVE A LOT OF DUPLEXES SO THIS WAS AN OPPORTUNITY TO BRING [1:36:40] THAT IN ONE OF THE YOU KNOW SO THE GOAL IS ON THIS FIRST SALE [1:36:48] THAT IT WOULD POTENTIALLY BE TO EITHER A FAMILY THAT WOULD USE THAT FOR AN ADDITIONAL FAMILY MEMBER COULD BE PARENTS [1:36:55] THAT NEED TO BE CLOSE BY OR POTENTIALLY A CHILD WITH SOME DEVELOPMENTAL ISSUES BUT NEEDS [1:37:04] NEEDS OR WANTS TO BE INDEPENDENT TO ALLOW THAT INDEPENDENT BUT THAT THE GROUND LEASE TO THESE UNITS [1:37:12] WOULD ALSO STATE THAT IN THE EVENT THAT THERE WAS A CHANGE IN THAT FAMILY STRUCTURE THAT THAT UNIT COULD BE USED A [1:37:19] RENTAL WHICH WOULD PROVIDE THEM INCOME. BUT WE WOULD REQUIRE THAT IT WOULD REMAIN AS AN AFFORDABLE [1:37:24] RENTAL UNIT THAT THEY WOULD ONLY BE ABLE TO RENT TO SOMEONE AT 80% AMI AT THE [1:37:30] AFFORDABLE RENTS SET BY HUD HUD COMMISSIONER MUELLER. [1:37:40] UM I I LIKE THE IDEA OF THE ADU AND I'M SUPPORTIVE OF THAT BUT MY ONLY QUESTIONS CONCERN [1:37:48] IS ACCESSIBILITY WHEN YOU'RE LOOKING AT LIKE PARENTS NEEDING TO LIVE AT THIS PLACE [1:37:53] ABOVE THE GARAGE IT'S NOT VERY ACCESSIBLE AND JUST WONDERING IF OTHER IDEAS HAVE BEEN TOSSED IS HOW TO MAKE THE ADU [1:38:01] PERHAPS MORE ACCESSIBLE. THANK YOU COMMISSIONER. [1:38:07] THAT IS EXACTLY THE QUESTION THAT WE ALL HAD AND SO WE OPTED TO DO IT SO ADJACENT TO [1:38:15] ATTACHED VIA SHARED WALL WITH THE GARAGE AS OPPOSED TO ABOVE. I AM SO SORRY. [1:38:21] THAT'S OKAY. THAT'S I THINK. I THINK MOST PEOPLE ASSUME WHEN THEY HEAR ADU IT'S KIND [1:38:26] OF LIKE ABOUT THE GARAGE KIND OF CHARACTER. SO YEAH, THIS IS YOU CAN SEE IT'S A ALONG SIDE AND IT'S [1:38:31] TUCKED BEHIND THE HOUSE SO THAT FROM THE STREET IT STILL [1:38:37] LOOKS LIKE A SINGLE FAMILY HOME WITH A DETACHED GARAGE SO THAT WE COULD KEEP IT LOOKING [1:38:42] LIKE THE NEIGHBORHOOD. AND I GUESS I CAN ADD TO THAT [1:38:48] TOO IF I MAY THE YOU KNOW, THE WILL WILL BUILD THAT SO THAT [1:38:54] IT'S A NO STEP ENTRY AND THEN THE GOAL WOULD ALSO BE I THINK [1:39:00] THE LOTS ARE PRETTY FLAT SO I THINK WE SHOULD BE GOOD TO GO THERE BUT TO MAKE SURE THAT AT LEAST ONE ENTRANCE ON THE ADJACENT OR THE ASSOCIATED [1:39:07] HOUSE ON EACH OF THOSE LOTS WOULD BE WOULD PROBABLY HAVE A WHEELCHAIR RAMP ATTACHED TO [1:39:15] THAT FOR A VISIT TO KIND OF VISIT ABILITY BETWEEN THE EDU AND THE HOUSE I REMEMBER THAT FROM WHEN YOU PRESENTED BEFORE. [1:39:23] GREAT. SORRY. OH GOOD. ARE THERE ANY OTHER QUESTIONS [1:39:29] WE'RE HEARING? NO OTHER QUESTIONS. THANK YOU VERY MUCH FOR YOUR PRESENTATION. AND WE WOULD NOW OPEN THIS UP [1:39:34] FOR PUBLIC COMMENT AS A PUBLIC HEARING SO THAT SO AS OF RIGHT [1:39:41] NOW THIS IS A OPEN PUBLIC HEARING. IS THERE ANYONE WHO WOULD LIKE TO SPEAK ON THIS ITEM? [1:39:51] IS THERE ANYONE VIA WEBEX OR ON THE PHONE WANTING TO SPEAK ON THIS ITEM? [1:39:57] OKAY. I WILL ASK ONE MORE TIME IF [1:40:02] THERE IS ANYONE IN THE CHAMBERS TONIGHT WHO WOULD LIKE TO SPEAK ON ITEM 5.2 WITH [1:40:10] NO ONE COMING FOR IT, I'D BE LOOKING FOR A MOTION TO CLOSE THE PUBLIC HEARING. [1:40:19] WE HAVE A MOTION BY COMMISSIONER WOOTEN SO AND A SECOND BY COMMISSIONER DOLLINGER TO CLOSE THE PUBLIC [1:40:26] FOR THE PRIVATE DEVELOPMENT WITH WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST FOR SALE AND REDEVELOPMENT OF 93 PARK [1:40:33] AVENUE SOUTH. IS THERE ANY DISCUSSION. ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I. [1:40:41] I OPPOSED THE MOTION TO CLOSE THE PUBLIC HEARING PASSES 6 TO 0 MOVING ON WE DO HAVE A [1:40:49] MOTION AND ADDITIONAL MOTION FOR THIS ITEM AND THAT IS TO APPROVE THE RESOLUTION APPROVING APPROVING CONTRACTS [1:40:57] FOR PRIVATE DEVELOPMENT WITH TWIN CITIES HABITAT FOR HUMANITY REGARDING PROPERTY LOCATED AT 9030 PARK AVENUE [1:41:04] SOUTH. MADAM CHAIR, I MOVE WE HAVE A MOTION BY COMMISSIONER AND I'M ACTUALLY GOING TO SECOND THIS [1:41:11] FOR A SECOND BY CHAIR WHO? KIM IS THERE ANY DISCUSSION? I HAVE ONE COMMENT TO MAKE AND [1:41:16] THAT IS AS I WILL SAY AND I HAVE SAID TIME AND TIME AGAIN I ACTUALLY VIEW THIS PROPERTY [1:41:22] FROM MY HOUSE. SO I'M VERY FOR THIS TO BE MOVING FORWARD AND I THANK YOU FOR YOUR TIME AND DEDICATION [1:41:30] IN AND THE LONG HAUL OF THIS. SO THANK FOR THAT. WITH THAT ALL THOSE IN FAVOR [1:41:38] PLEASE SIGNIFY BY SAYING I, I OPPOSED MOTION PASSES 6 TO 0. [1:41:44] THANK YOU. THANK YOU. THANK YOU. NOW WE ARE ON TO OUR DISCUSSION ITEMS WHICH IS 6.1 [1:41:51] REPORT POLICY AND ISSUES UPDATE. I THANK YOU CHAIR AND COMMISSIONERS I WANTED TAKE [1:41:59] THIS OPPORTUNITY JUST TO PROVIDE A VERY HIGH LEVEL UPDATE ON THE WAITING LIST OPENING WITH THE INTENTION THAT STAFF WOULD COME BACK [1:42:06] WITH A MORE FORMAL REPORT LATER THIS YEAR BUT AS A REMINDER OUR HOUSING CHOICE VOUCHER WAITING LIST BOTH THE [1:42:14] VOUCHER WAITING LISTS AND THE PROJECT BASED VOUCHER WE ARE WAITING LISTS OPEN JULY 15TH. AS OF TODAY OR THIS EVENING WE [1:42:21] HAVE WE HAVE RECEIVED 2800 APPLICATIONS FOR THE WAITING LISTS AND SO I JUST WANTED TO [1:42:29] PROVIDE THAT UPDATE FOR YOU. OUR STAFF HAS BEEN REALLY GOING ABOVE AND BEYOND WITH [1:42:36] THE LAST TWO WEEKS. WE'VE HAD A NUMBER OF HOUSEHOLDS COME IN AND PARTICIPATE IN OUR APPLICATION WORKSHOPS THAT WE'VE BEEN PROVIDING FROM 10 A.M. TO 2 [1:42:43] P.M. EVERY DAY DURING REGULAR BUSINESS HRS AND JUST TO GET ASSISTANCE WITH THEIR [1:42:50] APPLICATIONS AND THINGS LIKE THAT SOME WONDERFUL. I KNOW THERE IS ONE OTHER [1:42:55] UPDATE AND THAT IS THAT WE HAVE THE INTERVIEW PROCESS FOR THE ADMINISTRATOR HAS IS GOING [1:43:02] ON AND IS CURRENTLY HAPPENING SO THERE IS A NOTE THAT THEY'RE DUE TO AUGUST ONLY [1:43:09] HAVING ONE OFFICIAL BOARD MEETING DUE TO ELECTION [1:43:15] IN PROCEDURES THERE MAY NEED TO BE A SPECIAL MEETING TO [1:43:20] APPOINT THE ADMINISTRATOR IF ONE IF ONE IS CHOSEN SO I JUST WANTED TO GIVE THE BOARD KIND [1:43:27] OF THE HEADS UP THAT THAT COULD A POSSIBILITY FOR AUGUST JUST BECAUSE WE DO ONLY HAVE [1:43:33] ONE IN IF WE DO APPOINT SOMEONE AH IF IF IF SOMEONE IS CHOSEN AND TO APPOINT THEM WE [1:43:40] NEED TO DO THAT TO GET THEM IN HERE SOONER RATHER THAN LATER. SO I JUST WANTED TO KIND [1:43:46] OF AND IF YOU HAVE ANY ADDITIONS THAT UM FEEL FREE BUT AND I WOULD JUST ADD THANK [1:43:53] YOU CHAIR MORE COMMUNICATION WOULD OCCUR IF WE WERE TO [1:43:59] REACH THAT STAGE I THINK JUST WANTED TO GIVE YOU A LITTLE BIT OF NOTICE AND IN ANTICIPATION THAT THAT MAY [1:44:05] OCCUR IN THE COMING WEEKS SO IT'S NOT OFFICIAL BUT IT COULD HAPPEN. [1:44:11] SO WITH THAT IS THERE ANY OTHER UPDATES OR ISSUES OR ANYTHING? OKAY. [1:44:16] HEARING NONE. WE'LL BE LOOKING TO ADJOURN THE TUESDAY, JULY 23RD, 2020 [1:44:23] FOR A MEETING WE WERE LOOKING FOR A MOTION TO ADJOURN MOVED TO ADJOURN WE HAVE A MOTION BY COMMISSIONER WOOTEN SECOND AND [1:44:31] A A SECOND BY COMMISSIONER S.A. TO ADJOURN THE TUESDAY JULY 23RD 2024 H.R. A MEETING [1:44:38] IS THERE ANY DISCUSSION HEARING NONE. ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I I OPPOSED [1:44:43] MOTION PASSES SIX ZERO