00:00:07,670 It’s 701. I’m going to call this meeting to order. And please stand and join me in the Pledge of Allegiance. I pledge. Allegiance to the flag of the United States of America, and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Jody. Roll call. Nelson. Here. Whitener. Here. 00:00:34,870 Sponheim. Here. Gregor. Here. Peterson. Here. Aldrich. Here. Quasi. Here. And that brings us to the Plymouth Forum. Individuals may address the council about any item not contained on the regular agenda. A maximum of three minutes is allotted per individual, with a total of 15 minutes for the forum. 00:00:53,870 The full 15 minutes are not needed for the forum. The City Council will continue with the agenda. City Council will take no official action on items discussed at the forum, with the exception of referral to staff or commission or committee for future report. 00:01:11,200 Now I have six cards of people who would like to speak at the forum, so I would. I’m going to hold people to that three minute time frame. So once you get to the three minutes, um, I’m going to ask you to wrap it up if that’s okay. Uh, first I have Daniel Wu. Welcome, Daniel. Thank you. Uh, city council members and mayor. 00:01:30,630 Um, I’m here today to speak about the flock cameras, which has been an issue for in an area of discussion for city for a while. Um, I’m just here to talk about, you know, as we all know, this has been a huge national topic. 00:01:46,930 Um, and certainly our city here in Plymouth is not, um, absent from this discussion. Um, I just want to, you know, we can talk a lot about the technology, the technology, how useful flock is for safety, in other words. But I want to speak about the problem with the trust that flock cameras bring. 00:02:05,130 Um, I think, you know, as has been described before, the flock cameras have been one of the biggest bipartisan issues of this country so far when it comes to surveillance. And I believe this is an opportunity for the city to display that. 00:02:22,200 They really value citizens trust, um, something, you know, we’ve heard Chief Fadden talk about in the past is how it’s been difficult to hire police officers in these past few years. As we know, in Minneapolis, with the George Floyd incident. In the months following. 00:02:41,430 Almost 1 in 4 police officers either resigned or took extended leave, largely because the trust in their policing was vastly diminished after that incident. Um, and I think this is an opportunity with flock cameras that this is, you know, a currency and trust that the city we can use can be using and utilizing to regain trust to show that the city cares about the trust that the citizens have in policing and security and safety. 00:03:02,300 Um, I really don’t believe that surveillance is something that necessarily makes our city safer. Um, I know that there’s arguments that flock cameras do provide certain resources to policing and security in our city. But like I said, I believe this is an issue of trust and not about the technology, not about how many cases it can help solve. 00:03:24,330 The statistics of what this technology can do and what it can bring to our community. It’s about how US citizens feel safe, how we feel that our data is being utilized and gathered. And that’s something I really want. The city council and the mayor to consider. 00:03:41,200 And for the police department as well, is how does this technology affect the trust that we have in our city? Um, that’s all I have. Thank you very much. All right. Thank you very much. Uh, next I have Doug Maltby, multi. Mayor and council. I’m here to again also to talk about flak. 00:04:05,300 And I’m going to disregard a majority of what I had written down. Um, we’ve been talking about flack here since January. I know personally with each of the council members. And I’d like to see some action. Frankly, we’ve been talking about study sessions, and I know that there was one just scheduled in this prior session. I think there needs to be some action. 00:04:31,970 I was like, disappointed in the Kare11 story about Plymouth, frankly, not wanting to discuss Flack, even just the changes to the defaults. They should be changed to seven days. I’d argue that it should be. The contract could be, um, cancelled outright again for the trustworthiness of the company. The use. 00:04:58,730 We’ve all seen the videos, hundreds of videos now of people unjustly detained without a warrant, surveilled without a warrant. 99.5% of the people that are driving along the freeway have no involvement in a crime. And yet their location and travel data is being documented, stored, uploaded, probably saved somewhere nefarious. 00:05:24,730 Um, I’ll speak briefly about the numbers. There are. You know, they claim a 96% accuracy rate on 20 billion scans, a 4% failure rate means 800 million incorrect scans. That is not a positive thing. We are seeing that not only in the videos that we all see online, but right here in Plymouth, the the automotive journalist. 00:05:48,800 I would count that as one of those failure rates because it did not read the correct plate. Um, um, also on it, it’s a very, very bipartisan issue. This is not a partisan issue in any way, shape or form. 00:06:07,470 I think the one thing that our country can agree on now is not FLoC. And no AI data centers. This is not a it’s a Fourth Amendment issue. It’s a civil rights issue. And I ultimately believe that it will be, um, adjudicated as such given the charter decision recently as a warrantless form of surveillance. 00:06:30,930 Um, I don’t think it’s safety. I don’t think it’s public safety or security. I think it’s simply surveillance. And to the point of trust. I want to be able to trust in the city, the county, the state, the federal government that’s lost with flock. 00:06:53,030 I mean, I feel like if just by just standing here and saying things that someone’s going to be recording my movements and for posterity, that’s a chilling thing. I mean, it’s not something that we Americans in general are accustomed to. I just I’d like to see cancel the cancel the the contract. 00:07:14,730 I appreciate the, the the study session, upcoming. Um, and I guess that’s all. I’ll leave it there. All right. Thank you. Thank you. Thanks for your comments. Next we have Doctor Kamal Ahmed. Hi. Mayor and council members. I’m here again. Um, a different topic from the past. Two speakers. 00:07:40,800 Uh, it’s pointing out some problems at the community center. Being a community member living in Plymouth for the last ten years. Um, I know me, my neighbors, a lot of people that I talked to around in the community. We are unable to use the community center. And the reason that I came in before to this council. 00:07:56,330 Um, just to point it out that the main reason, one of the biggest reasons is the food that everybody wants to bring in at the community center, which we are unable to because there are only listed, uh, vendors that are allowed to bring in the food. 00:08:15,600 Every community, every people with different backgrounds, they have their favorite restaurants, not only like if you come under, um, like if, for example, Spanish food or Mexican food or Indian food or American food, even in those categories, people have their own preferences. 00:08:32,700 Uh, we have been holding events in different community centers for the past many years. Um, and I have seen it wherever they allow us to bring in the food of our own from our own vendors. It’s very convenient for us, and we know what we are getting. So I would, uh, like some attention in that for the community. 00:08:52,000 Um, and I have spoken many of our friends, uh, around our neighborhood, and they all feel the same that we cannot use our community center that is for our community. So that is one thing. Plus, when we restrict the vendors and it can, uh, move the prices up also, that is also a consideration, especially for the non-profits. 00:09:09,670 If somebody wants to come in and you are restricted, then you cannot bring your events to the beautiful community center that we have. Uh, the other main thing that I found out recently is that there’s no once you, uh, for example, have a reservation, you cannot cancel it, which is very odd. 00:09:27,800 Um, in all other community centers for the communities, there is a reasonable time that you can change your mind or something happens and you cannot do that. But once you pay a like $1,000 for your reservation, you cannot cancel it. 00:09:47,400 That is something that we have to really look into that that is, um, also putting people off from that. And the lastly is if there is any, um, um, same pricing for uh, weekends and weekdays. I know it’s a business, but again, it’s for the community. It’s not like a hotel. 00:10:07,200 So if we can consider that to have the same pricing weekdays, we weekends, uh, and any discounts for any, um, non-profits that would be really appreciative. So I just want to bring the council to that attention. Thank you. Thank you. Doctor Ahmed. Next I have Kevin Peterson. You’re lucky because your handwriting is. Oh, not very good. No. Yeah. Thank you. Um, so I’ll just share one thing. If anything unites Republicans and Democrats, it’s dislike. 00:10:30,130 Dislike for flock cameras. So I think that’s a positive thing that we’re finding some alignment on, on a few things. So, um, I won’t take up the whole time. I’m gonna do two things. 00:10:43,700 And the reason why I’m sharing this is because I shared a concern about this earlier today to a handful of people, both on the council, uh, the city attorney and the city manager. And I just want to make sure that this is kind of in the record, because I’m not sure if it’s going to be addressed. So I’m going to read a violation that I just received today or a couple days ago. 00:10:58,400 I have two campaign signs on my property that are not set back from the curb. The required four feet pursuant to Plymouth City Code section 2010, subdivision two and I, PMC are hereby ordered to correct the above listed items. Every inspection will take place on August 26th, 2026 to ensure the violation as cited has been corrected. 00:11:16,900 So here is my response to that. So I sent this to the person who did the inspection at the city, as well as a couple of council members, the city attorney and the city manager. Hope this note finds you well. I received the attached violation notice in the mail. 00:11:29,930 Thank you for sending this over and providing clarification that you received a complaint about my science and their adherence to the four feet setback element on the of the statute, referencing the violation. Below is my response to that document. 00:11:46,100 While it is normally my intention to comply with any and all statutes, I have an objection why it is apparent that this statute is neither enforced uniformly or proactively. In fact, you referencing the person to the inspection drove by at least eight signs on your way to my home to complete this inspection that were not in compliance. 00:12:02,500 Did you knock on their door to inform them of the violation? Will they be receiving a similar letter? Undoubtedly. You’re in. The city’s response to that will be that you enforce the statute based on a complaint from a concerned resident, and you received one about mine. I respect that you have a job to do. 00:12:18,130 However, I’d encourage you to ask yourselves, why did you receive a complaint? Below is my formal complaint that the campaign signs located at the following residences are not in compliance with the statute. This list is approximately 30 homes located predominantly in the southern half of Plymouth. Also of note, I have additional homes in my master list. 00:12:34,130 I will provide those to you once you have remedied the violations in question with these first 30 homes. As you work through the multiple lists I provide to you, I will not modify the locations of my signs in my yard. Once every campaign sign in Plymouth is in compliance with the statute, and you share with me who complained about mine, I will gladly comply. 00:12:50,630 I assure you. You will receive a complaint from each and every one. And to be clear, I couldn’t care less where people put their signs in their yard. However, others have chosen to make this an issue and I’m happy to participate in this civic process. 00:13:10,330 And in closing, I encourage you in the city to seriously contemplate what role it will play in the petty tyranny, my quote unquote neighbors are engaging in. Thank you for your time. Thank you, Mr. Peterson. Next, I have Mandy from Ward four. Hi. Thank you. 00:13:35,400 I’m here to speak about data centers, AI data centers in particular, which we heard about at the study session. Previously, many of us were very relieved to know that you’re implementing a moratorium on data centers in Plymouth. 00:13:56,730 I think that a key point we’re missing in the conversation about a definition of data centers is the distinction between data centers, for example, the ones we talked about that exist in Plymouth already an AI data centers, those are the ones that create massive drains on power and water. I was very relieved to have seen the acknowledgement of the environmental impacts and the risks that they posed to water and energy resources, and I do trust that your research will lead you to the answers for the questions that came up today. 00:14:14,930 But in the interest of expressing the desires of many of our residents, not to bring AI data centers to Plymouth, I just wanted to share some of my research on those topics. Um, let’s see. 00:14:36,800 So according to the Environmental and Energy Study Institute, AI data centers emit between routinely emit between 55 and 65dB. Um, and as Joel mentioned, the W.H.O. actually flags nighttime baseline noise above 55dB as a cardiovascular and hypertension risk. This is something that I actually just learned myself in the last couple of days, but I can’t even imagine somebody not being able to sleep. 00:14:52,730 I don’t cope well with that, but apparently constant noise while is, uh, you know, kind of a blight the way an eyesore is. It also causes stress and that, you know, is we can ill afford that especially I think, this year, um, in this country, we’re all pretty stressed. 00:15:08,270 We’ve all reached kind of a saturation point. And I think adding on to those problems with something like that type of stress, um, higher energy bills, there’s a federal study that notes, um, in many states that energy costs have risen by 7.1%, of course, not to the fault only of AI data centers, but it is a major impact. 00:15:28,000 And we’re looking at potential for that. Um, you may have seen representative AOC on the at a congressional hearing with a jar full of brown tap water. Um, that was taken from a city that was constructing an AI data center, and it was polluting their aquifer. Another risk. Um, and let’s see. 00:15:50,930 Bear with me once more. I’m ill prepared. Um, the other one that I noted was in Fayetteville, Georgia. Uh, they the AI data center stole over 30 million gallons of water from the city, a fact that wasn’t noted until residents completely lost water pressure down to a trickle in their homes, stole 30 million gallons 00:16:11,270 of water. You know, these are risks. We can’t say this is going to happen everywhere. We all see the big headlines and stuff like that. But it is a massive risk. 00:16:24,600 It’s a risk to our environment and we’re starting this green steps thing or we’ve started it and I think we need to honor that commitment. We need to honor the desires of the residents here. And that’s why I wanted to express for many of us that we do not want an AI data center here in Plymouth. Thank you. All right. Thank you, Mandy. And last we have Scott Johnson. Thank you, Mr. Mayor. 00:16:44,870 City Council members, a couple things. Um, like her I appreciate that. There is a pause on data centers in Plymouth, but if and when that other were ever rises that we would be considering one, let’s put them underground. Use greywater for their water. They buy water from the city to fill their tanks. 00:17:19,070 Once they’re filled, they just keep circulating that water through their cooling systems. It’s great you’re not going to drink it. It’s gray water because that’s what the fresh water they’re taking in will turn into. So why not just make them keep their gray water and keep recycling that we’ll keep the costs down for the power problem. 00:17:41,070 Solar to where? For your point about tapping on the power grid, require them to have solar, not to power the whole building, but as alternative solar is just an alternative power source? I don’t know why these crazy people think that solar is going to be the ultimate power. It’s not. It’s an alternative power source. 00:18:07,800 And as far as block, I saw a thing on TV this town has them everywhere. You can’t burp without them. Cameras. Seeing you burp, there’s. Now there’s a town in Arizona that doesn’t have a police force. 00:18:34,930 They use FLoC for their police force because they get the the sheriff’s department to come in, but everybody in that town loves FLoC because they feel safe with block, because they don’t have a police force block, not block in general, but license plate readers are a good tool if used properly and not abused. We humans have this big problem with abusing things. 00:19:02,870 We’re given a little tool and we try to use it as far as we can without, but bend the rules until somebody tries to stop us. We see it from our current administration. How he bends the Constitution to try to get his stuff through. And we the people, I’m going to say it again, we the people should run this country. That’s what our Constitution says. Thank you. All right. Thank you. 00:19:30,370 Very much. And that concludes our Plymouth Forum. Councilor Sponheim. Mayor, I just wanted to clarify, since a couple of the speakers said that the city council has approved a moratorium on data centers, I think it’s important we just clarify for those who weren’t there that we have not approved 00:19:52,270 it. We have asked staff to come back with a potential moratorium for us to review and consider in September, and it’s the process is important to respect the public process on an on a moratorium. So we didn’t it’s just I want to be very transparent. We’re asking for a report. 00:20:11,600 We can informally consider it and then make a decision, um, at some point in September or October. So I just want to make sure that people are clear that weren’t there tonight. Thank you mayor. That’s good. That’s good. Clarification. So appreciate that. Uh, we’re going to move on to approving the agenda. 00:20:26,670 Council members may add items to the agenda, including items contained in the council information memorandum for discussion purposes or staff direction only. Council will not normally take official action on items added to the agenda. Anything to be added to the agenda. Look for a motion. Move to approve the agenda. Second. We have a motion and a second. 00:20:46,400 All in favor say aye. Aye aye. Opposed. That passes. Next we have consent agenda. These items are considered to be routine and be enacted by one motion. There will be no separate discussion of these items unless a council member or individual. 00:21:04,930 So requests in which event that item will be removed from the consent agenda and place elsewhere on the agenda, or the Council first. Anything to be removed from consent, go to the audience. Any request to remove something from consent. Seeing none, I’ll bring it back to the Council for action. Motion to approve consent. Second. We have a motion and a second. All in favor, say aye. Aye aye aye. 00:21:24,630 Opposed? In that passes, there is no public hearings tonight. So we’re going to move on to general business approving the Joint power agreement for the property. Assessed clean energy program of Minnesota min. Pace certifying property assessed clean energy changes. Thank you. All right. Michael. Thank you. Mayor and council. 00:21:47,070 Uh, yes. This is a min pace program, and we have our subject matter expert here tonight, Holly Houston, who is the vice president of finance with the Saint Paul Port Authority. So she does have a short presentation that she’ll go over and answer questions. 00:22:06,570 But just briefly, this is a program that allows real estate owners with low cost, fixed rate financing for energy efficiency or renewable type projects. Um, so this is where the city is a conduit, essentially through a special assessment. 00:22:26,600 Uh, and the Saint Paul Port Authority providing financing and Holly can go through that, but this does align well with the council priorities of environmental stewardship and thriving community. So there are two resolutions to consider. The first is the Joint Powers Agreement with the Saint Paul Port Authority, and the second is specifically to the request for the special assessment with the parcel. At 16 937th place North. And that’s the proposed park development. So with that, I will turn it over to Holly. 00:22:50,570 Thank you. Good evening, Mayor and council members. Thank you for having me here today and taking the opportunity to learn more about the min Pace program and the opportunity to offer it to the property owners of the City of Plymouth. Um, feel free to ask questions and interrupt me as we go. 00:23:10,000 I my goal here is to provide you an overview of the min Pace program. The benefits it offers to, um, property owners, as well as the City of Plymouth, and how we will work together in the future. Um, so we often you’ll hear pace or C pace. C stands for commercial. 00:23:33,330 So it’s commercial property assessed clean energy, and the Pace program is a financing tool for property owners to make energy investments into their property and then pay it back through a voluntary special assessment on the property tax bill. And it can cover up to 100% of the eligible costs. 00:23:55,200 It’s secured and repaid through the Special assessment, and it can be cash flow positive, meaning the energy improvements will pay back the financing and then that business gets to reinvest the utility savings into their operations once the financing is paid off. Uh, this is a program that’s adopted by 42 states. 00:24:14,270 Minnesota was one of the first states in 2010 to adopt the program. The market is projected to be over 10 billion currently and is experiencing exponential growth each year. Uh, this is a great program to make investments in building that increase sustainability and reduce utility costs. 00:24:35,800 It can tackle anything from deferred maintenance like an HVAC unit to new construction and, uh, min pace. By the numbers. So, uh, we have joint powers agreements with 68 counties and 25 cities across Minnesota. We have over 25 lenders working in Minnesota. 00:25:04,070 Um, we have closed 485 projects across the state, investing 372 million in in energy improvements, which save $31 million annually for those properties. All right. And then Hennepin County is with, I’m sure, no surprise, one of the largest counties in the state. They have over 116 projects that are active energy investments of 116,000,010 million of savings each year. Minneapolis is the highest, uh, city. 00:25:33,470 But as you can see, uh, the other cities are catching up and we have joint powers agreements with the city of Bloomington, Eden Prairie, Edina, Hopkins, Minnetonka, Saint Louis Park, and tonight, uh, uh, with the adoption, hopefully we will have Plymouth included. Uh, we do have currently two active projects in Plymouth. They were approved through the Hennepin mechanism. 00:25:55,330 And I will get into why, uh, in just a moment. But, um, there’s two current active projects, uh, senior Living was a new construction project that was a $3 million deal. And then the office building has a $200,000, uh, pace assessment that replaced HVAC. Mayor. Councilman McGregor. 00:26:22,530 Just looking at these slides, what does energy investment mean? Like, is it $3.2 million in electric and gas costs, or is it $3.2 million in infrastructure that is related to energy? Or why do we choose that term. Mayor and council members? It is related to the infrastructure investment. And I’ll get into what are the eligible improvements. Um thank you. 00:26:45,970 Yes, absolutely. And I just wanted to mention, though, because, uh, you might ask why county versus city, what’s the difference? And so I just wanted to bring up that pace. Financing is provided by capital providers. So it’s a lender that is providing that financing. 00:27:03,330 Or the Saint Paul Port Authority has a small revolving loan fund as well. So it’s privately funded. No, no city money, no city obligation. And it’s secured by that. Lean on the property. And so that’s the key. That’s the security is the the lean on the property. That first position. 00:27:22,900 So um, while governments are authorizing the funding they play or while governments aren’t providing the funding, they play an important role in authorizing that assessment. So they’re approving the assessment to establish the lean. And many capital providers prefer local government. 00:27:45,870 So city approval through a formal resolution, creating an official record in Hennepin County approval authority has been delegated to county administration, allowing projects to be processed administratively rather than inquiring board resolutions. So that is why I’m here. So I have a question. 00:28:07,170 So if you take the Sweet Living of Plymouth project, what is the the capital stack look like in that? And how does the pace fit in with that whole capital stack? Um, mayor I so as the program administrator, I’m not doing the underwriting. So the private capital investors are looking at that capital stack and doing the underwriting. Um, I, I will can definitely follow up with you and give you an example after this. 00:28:28,000 I don’t have it in the slide deck, but I can provide that for you. But I might get to your answer. Um, I’ll just keep going and we. Can come back. And I know some banks look at pace financing differently. In fact, a lot of large banks don’t look at it the same way. 00:28:43,600 Some of the smaller banks do in terms of their viewpoint, my day job is in banking, so I have a little bit of knowledge on this. Just a little bit. Uh go ahead. Thank you mayor. That’s good to know. And I appreciate the question. Um, and so eligible properties, I really like to say who’s not eligible. This doesn’t work with residential. 00:29:01,070 It’s not allowed through state statute and condos. Uh, we have not done a condo project either. Um, just because it needs to be multifamily five or more. And so, um, if there is a property that condos out, it doesn’t meet the, the eligibility, um, you can have energy and efficiencies. 00:29:19,800 HVAC, boilers, um, what we require is an energy audit to show that the energy that the improvements are better than code and they will save energy or reduce greenhouse gas emissions. Um, so that gets into the amount and what can be funded. 00:29:37,930 I won’t read through these all, but it can be used for retrofits, gut rehabs, new construction or retroactive projects. The key is the requirements. And so the loan term can be up to the useful life of the improvements. No more than 30 years. The A loan amount is a maximum of 30% loan to value of the property. 00:30:00,330 So if it is new construction, it would be appraisal as designed is what we’re utilizing. An energy audit is required. This is completed by a certified professional. Uh, illustrating that the improvements will save energy and mortgage holders sign off and acknowledgement is required. As part of this program. Um, it does follow property tax law. It is in first position. 00:30:25,030 If there was a default. Does that 30% help you at all? Mayor. On on the capital stack question, I would say the the pace project product really fills that last missing gap. So, you know, anywhere between 10 to 15% of a project. So instead of cash or equity, they’re utilizing the Pace financing tool. 00:30:52,100 And I think the main issue is banks, whether they look at that first mortgage position, meaning they have a second mortgage, they don’t like second mortgages. And so some of banks look at it differently than other banks in terms of what that first lien position, it really is. But yeah, we can follow up more. 00:31:10,830 Sounds good. Thank you. Um, all right. Quick, quickly. Uh, why would someone want a pace loan versus a commercial loan? Um, so there’s a deferred deferred payment cycle. So property tax bills are touched one time a year and are certified. 00:31:29,530 And so current projects that are working on their energy improvements won’t have a payment due until May of next year. So they can really get the project done, capture the savings to pay back that loan. 00:31:45,530 Um, it can finance up to 100% of the project where some other typical loans might require some equity or cash upfront or down deposit. Uh, it can be cash flow, positive savings. So the energy savings and or rebates can offset the loan costs, reduces carbon footprint. Um, it’s an annual operating cost and is often considered, not impacting the balance sheet. 00:32:09,530 So that long term debt leveraging on the balance sheet of an organization, I always say check with your accountant, but many people consider it off the balance sheet. Uh, and it can be layered on with other financing tools. Currently, the Saint Paul Port Authority is in the Treasure Island building, where the wild practice, and we have TIF as well as a pace loan as well as a mortgage. 00:32:27,730 Um, and so this program here, so I know it can be kind of confusing on what’s your role, what’s my role, what’s the lender’s role. So, um, I’m the program administrator. 00:32:49,200 So as a statewide program administrator, I really see my role as streamlining the process by centralizing the expertise, providing consistent communications, answering the phone calls from property owners to contractors to capital providers to energy study experts, and providing that program administration. So we are the authorizing entity that requests the special assessment on behalf of the project to the city through that joint powers agreement. That’s before you today for adoption. 00:33:11,200 It clearly defines our roles and responsibilities of each party. The local government places the assessment on the property, remits the collected assessment while the provider does all the underwriting on the project. They provide the financing, assume the risk and the associated credit risk. 00:33:32,400 The local government and the Port Authority have no repayment obligations, no recourse, no financial responsibility for the financing beyond the administrative duties. And so, just to reiterate, uh, no risk or dollars, it’s a local benefit and economic development tool. 00:34:01,300 This is really great for the faith organization that wants to go solar or needs to replace their HVAC or that small business, and then it can also be it can help deals get done. And I think that is what is before you in the second action tonight is helping that new construction deal, uh, get done. It can reduce administrative burden. You don’t have lenders calling you. You don’t have to develop in-house expertise or staff. Um, that’s what I’m here for. 00:34:19,400 And I’m here to work with you and make it an easy process. And then it’s. There’s scalability with having me as an expert. And so basically, how does it work? Um, so I work with the lender, the property owner. 00:34:39,130 I send the request to you verifying that it meets state statute, and the program’s good to go. I include my request. The application to the program, the energy study, and then a petition for special assessment. It’s basically that property owner saying, yes, I am petitioning for this to be placed on my property tax bill. 00:35:00,400 Uh, ask the city to approve versus or through a certified resolution. And then, um, I send confirmation in the fall when the project would start. And then once you collect the assessment, the city sends it to the county, and the county sends it to me, and then I would pay whoever is owed that money. 00:35:18,730 Uh, in the case of an early payoff or any corrections which there are minimal, um, I would also work with the city. And here’s just a sample resolution. This is more administrative and technical. And then this is our small and mighty team. So to myself and Emma Cossiga who was our loan program analyst. Any questions? Mayor. Council member. 00:35:52,700 So thank you for the presentation. This seems like a great opportunity. I’m just I would like a little more clarity on what it would require of our staff. 00:36:13,900 Um, is it mostly like we approve these types of assessments, and then is it all sort of automated? We know once, or is it like we have to whatever. Write a check to you or to the lender or, you know, with all the property tax stuff, does it just kind of I don’t know, I feel like my home escrow is pretty darn automated for paying my property taxes. 00:36:30,570 Is that how it will work for, um, a property that develops with one of these loans? Uh, mayor and council member um, it is quite automated. I would say that the staff involvement at the city level is that that initial taking, the request, putting it on the agenda. So there is some administrative work that goes with that. 00:36:50,470 Once the council approves that, I work with, um, I will work with Mr. Thompson on the exact flow of what staff member I would work with. But, um, there’s a form that the city of Plymouth, uh, sends all their assessments to the Hennepin County once a year. Um, it’s a one time thing. 00:37:09,300 So once you assess, once you certify that assessment, it’s automatic. And so, um, that’s the and then you would collect the payment and submit it back to me. Um, if there’s any special assessment fee that you charge, it would follow the same process as any other special assessment in the city. Thank you. Other questions. Councillor Sponheim, thanks. 00:37:34,300 I want to ask the same question to staff, but I don’t know, like so from your review of it, Michael and Andrea, I mean, I think your two departments are the two primary. 00:37:52,770 I mean, any concerns or reservations from you about participating in this from an administrative perspective? Mayor and Council, I have no concerns. I think it’s a great program and the administration that I’ve done has been very minimal to get it here on the agenda. And then I think it more goes to the finance department with the special assessment. So maybe Andrea can weigh in on that. 00:38:09,900 Yeah. Mayor and council, we will really just fold it into our special assessment process that we do for all the other special assessments. Great. The mayor, if I may, I’ll just say that this is a great tool that as we as a city evolve and have more redevelopment occurring with our aging infrastructure. 00:38:32,330 This is a great additional tool to help businesses and property owners reinvest. And so I am really glad to have this brought before us tonight. Any other questions, comments? Was that a motion? I gotta figure out how to read this motion. But yes. 00:38:57,630 Uh, so tonight we I’d like to make a motion to approve the Joint Powers Agreement for the property assessed clean energy program of Minnesota mine pace and certifying property assessed clean energy charges. Do we have a second? Second. Second motion a second. Any other discussion? I would just say what I know of it. 00:39:19,330 I mean, I haven’t done any of these, um, in there, but I just know, like I said, a little bit about these, but it seems like a great program in terms of giving in incentivizing people to do clean projects. 00:39:39,200 I know Park, which is right next to TCO, uh, when that goes, when that gets constructed, they’re going to have a lot of energy improvements. They’re trying to get as close to net zero as they can. And I think a program like this really helps incentivize that and gives them a tool in order to get their where versus a project might not happen otherwise. So, um, I’m very supportive of this program. 00:39:55,030 Hey, mayor, I think I actually need to correct and restate my motion because it’s pretty different when I look at the actual resolution. So may I have permission to please restate the motion? Yes. Okay. 00:40:13,400 So the first motion is, um, making a motion to adopt a resolution designating the Port authority to implement and administer a property assessed clean energy improvement financing on behalf of the city and providing for the imposition of special assessments as needed. In connection with that program. And I will also add to that a second resolution certifying property assessed clean energy charges for energy improvements at 6,937th place, North. So. Second is that okay? Councilmember Gregor. 00:40:43,630 Yes, I appreciate the clarity. It’s for items eight and nine on our under 8.1. Correct sign. So just for Robert’s rule purposes. I assume the original motion was withdrawn. I withdrew the original motion. Right. And the JPA is folded into that first resolution. Is that right, Michael? That’s correct. Then we’re good. 00:41:06,600 Okay. All right. Any other discussion? All those in favor say aye. Aye aye. Opposed? That passes. Thank you. Holly. Uh, next, we have approved the use of local affordable housing aid or funds to support a property rehabilitation. Rehabilitation of Willow Woods Estates. Stephen, is this you? Okay. Mr. Mayor. 00:41:32,770 There you go. Then you can just use this or. Thanks. All right. Thank you. Mayor and council. Uh, the city received a request for financial assistance to Willow Woods Estates, um, to help bridge a gap in a substantial rehab to the property. 00:41:57,270 And through conversation with Common Bond, the developer, and our financial advisor, the city’s financial consultant. We determined that funds would be an appropriate use for this. So I’ll start with a brief overview of local affordable housing aid funds and then transition into some background on Willow Woods Estates. So local affordable housing aid is funding designed to create and preserve affordable housing. 00:42:20,870 It’s funded by dedicated sales tax began in 2023. Um funded through a quarter cent sales tax in the seven county metro area. It is administered by a Minnesota Housing and jurisdictions receive payments twice a yearly um total balance for the city of Plymouth from 2024 to 2026 is just over $2. 00:42:45,870 2 million. And if you notice, our 2024 allocation, that is a partial year as the tax collection began in October of 23, and we anticipate our allocations moving forward to be in line with our 25 and 26 allocations of over 900,000. 00:43:10,630 The allowable uses for the program include emergency rental assistance, financial support to nonprofit housing providers, and also qualifying ownership or rental projects, which would include gap financing, uh acquisition, rehab for both rental rehab projects and homeownership projects, and also new construction. The income limits for those projects are 80% Ami for the rental projects, and 115% for any projects that include homeownership. 00:43:35,000 Um, and it’s important to note that the larger funds must enhance locally funded housing expenditures cannot replace them. Um, when the program was designed, it was the intent to put the funds into the community. So there are spending requirements on the funds. 00:43:58,000 Um, any funds that are received must be committed within three years and then expended within four years of the receipt. So if we think of our 2024 allocation, uh, it must be committed. Then by December of 2027 and then it must be expended by December of 2028. 00:44:21,000 If jurisdictions are unable to spend within that four year time frame, it can petition to Minnesota housing um to prove or attempt to prove that the um reasons are that they could not spend those funds, those committed funds within that time frame were outside of their control. If that appeal is approved by Minnesota Housing, then those funds can be transferred into a affordable housing trust fund. 00:44:40,200 And at that time, then the funds are considered expended. Um, however, it is important to note that any funds that are put into that trust fund still have the same requirements. Um, so transitioning over to the Willow Woods Estates program or project rather. 00:45:02,600 So Willow Woods Estate is uh, was built in 1980. It’s owned by Common Bond, which is a affordable housing provider, state uh, based out of Saint Paul. It is 100% affordable under a project based rent assistance program, which is a contract directly with HUD. 00:45:23,930 It requires that the property or the the rental units are at or below 60% Ami with a specific portion of those restricted to at or below 30% Ami. It is 40 units of three and four bedroom townhomes, so there are large family units, um, not typical to the Plymouth area. It also has four garage structures, a playground and a community building which has laundry facilities. 00:45:48,000 Uh, community gathering space, which also houses on site supportive services from LCP. And it has a leasing office. The financial restructuring for Willow Woods Estates includes the refinance of the first mortgage and the capital structure of the property, also including a substantial renovation. 00:46:14,370 So Willow Woods Estates is used utilizing tax exempt bonds, which are issued by Hennepin County. Uh 4% LaTeX credits, which are issued or allocated by Minnesota Housing um. Also a Minnesota State Tax credit loan and the sales tax rebate and energy rebates from the dollar spent on the rehab will be rolled back into the project or into the property. 00:46:36,530 Um, the scope of the of the rehab includes replacement of the windows and doors, the roofing and siding components throughout the property. Also a parking lot replacement and update to the community building. Complete renovation of multiple units, um furnace and water heater updates. Also for energy improvements or energy efficiency updates. So within approximate city contribution per unit of just over $16,000. 00:47:07,030 So the request that the city has received from Willow Woods Estates is for $650,000 loan for a portion of the property rehab. We’ve designed it as a proposed use of lahar funds. And a 30 year deferred loan at 0% interest, which we’ll be doing payable in 2057. We have a proposed closing date of spring 2027. 00:47:29,930 Staff is supportive of this request. Um. Willow Woods is also asked to modify the terms of an existing $50,000 loan that was issued in 2004. Um, through negotiation and discussion of that loan, the city has agreed to forgive the accrued interest. 00:47:47,570 And then the principal balance of that would be paid off at the time of closing, which would be spring 2027. Uh, next steps then, for tonight, we do have a representative here, Sally Rabon from Common Bond to further present the request or answer any questions you may have. And then we ask you to adopt a resolution approving the use of law funds. 00:48:11,570 Before I call her up, I’m just going to open it up to the council for any questions for staff. Um, how much is the accrued interest? Again that we’re forgiven. The accrued interest on the mayor and council, the accrued interest on the $50,000 loan that was issued in 2004. 00:48:33,000 It was 2% simple interest. It currently stands at about 22,000. In interest. It is due and payable in 2035 with an um due and payable amount of 81,000. We do know that something will have to in some way. We’ll need to address this loan as it can’t run, it must run coterminous with the new funding.. Right. 00:48:55,900 Okay. So the initial request was for the interest to be forgiven and the loan to be extended for an additional 30 years to run alongside the, um, request for the larger funds. Okay. Thanks. Any other questions for staff? All right then I’m going to invite Sally Rabon from Common Bond Communities. Welcome. Thank you for coming tonight. 00:49:26,870 Thank you. Mayor. Members of the council, I’m Sally Rabon, the senior project manager with Common bond Communities. Um, before I dig into Willow Wood, I just wanted to talk to you a little bit about common bond. We’re an affordable housing developer out of Saint Paul. 00:49:46,870 Um, we develop and and own our properties outright for the length of the term for forever, as long as we possibly can. Um, we’re one of the largest owners in the Upper Midwest. 00:50:06,500 Our mission is to provide safe, stable, and affordable housing and also provide services to every resident in our housing so that could range from, uh, resume help to applying for a job, applying for college all the way to, um, like at Willow Woods, where we have a lot of kids. We have a youth teen program services. So after school study buddies, um, summer programming and field trips. 00:50:24,530 So that’s one thing that’s a little bit different about common bond is we have services on site. Um, the next thing I want to talk about is Willow Wood in particular, over the last two years, we have dug into our portfolio to examine which of our properties need a, you know, a recapitalization of the financing and or a rehab. 00:50:44,370 When we did this, we realized that Willow Wood needs a comprehensive rehab, which then we learned creates a large financing gap. We could not figure out how to do this. The the need for the rehab to find the dollars, the appropriate programs that were available. So we actually decided to sell Willow Wood. We had a purchase agreement in place. We were going down that route. 00:51:06,300 It fell through. Instead of moving on to the next, uh, buyer, we took a step back and we said, okay, wait. Only Willow does align with our mission. As Stephen said, large family housing to our three and four bedroom units were really hard to find. 00:51:23,930 Section eight on every one of the units, meaning that the residents there only pay 30% of their income on rent. So even if the rent goes up, residents still only pay 30%. HUD covers the rest. So this really aligned with common bonds mission. 00:51:43,530 And so we said, okay, how can we keep Willow Wood in our portfolio? Um, at this time, the Minnesota Housing State tax credit program, um, was created to, you know, put funding into preserving affordable housing. We went to this program, we applied to Minnesota, Minnesota housing and secured a loan for, I believe, 2.4 million. So that state housing tax credit loan coming in drastically decreased our gap. 00:52:08,830 We needed at Willow Wood to complete this comprehensive rehab. Um, so with that securing that, we are really excited to move forward and keeping Willow Wood in our portfolio. Um, since then, we have secured the um, equity investor to put in the low income housing tax credits. 00:52:26,730 The first mortgage lender, uh, the rebates, Estevan said, which we’ll get when the rehab is complete. Those rebates come from like Excel and Center Point. Um, and the existing debt that’s on the property will be assumed and stay in the property as well. So come Q1, first quarter of next year, the project is fully funded. But for larger funds. 00:52:47,700 Why I’m here for this request today. Um, I also will note that we recently received an award through, um, Minnesota, RFP for preserving affordable housing for 1.4 million for Vicksburg Commons, which is also here in Plymouth. So a little bit of good news to put more money into affordable housing in your community. Um. 00:53:08,970 So I’m here to answer any questions you all might have. I know that was a lot of information. Some of you have heard it before, but. Yeah. Councilmember Peterson. Thank you. Over here. Yeah. 00:53:24,000 Um, can you I think I heard a little bit of it, but can you restate maybe what’s within the scope of the refurbishment? I think I heard new windows, doors, parking lot. What else was included in that? Thank you. Mayor, Council members. Uh, great question. Yes, we’ll do like envelope. So siding, windows, roof. 00:53:42,270 Um, there’s been issues with water intrusion, so making sure it’s all weather tight because even if we can stop the water intrusion, then there’s mold. And it gets very scary. So windows, roof, um, siding as well as in the units, new flooring, kitchens, bathrooms, um, and then exterior on the property, parking lots and then playground. 00:54:02,630 It’s always something we, we prioritize as best we can, because we know there’s a lot of kids that are running around. So, um, and then I know, I don’t know the exact amount, but the garage is making sure they’re secure and safe. Um, um, you mentioned the playground, and I’m just looking at it on Google Maps. Is it the one that’s across the road? Across Shore Drive, across the road from it? That is a great question. 00:54:21,030 I can’t. Because otherwise I don’t see one like right next to the property. That’s just out of curiosity. And then when for the units that are getting, whether it’s flooring or whatever the work is in the interior, are those residents kind of temporarily displaced while that’s where that work is happening, or how do you navigate that? 00:54:35,400 Yes. So we do an in-place rehab. So no resident is displaced. Um, and they can either go to the community room or like during the day, if they are working, they’ll be at work. So the construction hours will only be during the day. 00:54:51,630 And so if they’re out for work or at school, otherwise they can utilize the community space. Or if, let’s say they’re putting they’re working in the kitchen, they can be in their unit in the bedroom or vice versa. Um, and then in the community room will provide, uh, snacks and water for the residents. 00:55:08,570 Now, if there is some, um, surprising construction, like, you take out the toilet to replace the floor and you can’t get the toilet functioning back in, like the toilet. And a few things are required to be in each night for the resident. Then we put the resident up in a hotel for the resident, for transportation, the hotel and food items for the resident. 00:55:27,730 That’s a worst case scenario, but we always plan for that in our budget. Got it. Thank you. Yeah. Thank you. All right. Other questions. Mayor. Council member Gregor. Um, this may be more of a staff question, but. So we give you a loan for 30 years and you pay it back. Uh, after 30 years. 00:55:52,800 Does that money go back into the larger fund? Does it just come back to the city? Do we? Yeah. I mean, I’d like to make it a revolving, affordable housing option or something like that. 00:56:11,530 But what happens to that money or will it be something else in 30 years that there’s like, we’d like it forgiven or whatever else? What’s the anticipated use? Sure. Um, mayor and council, uh, if I could defer to Shane. Um, Shane running is a, uh, with Ella’s our financial consultant, and he can help with the repayment of how when we utilize lahar funds and they are repaid. 00:56:31,530 If you could answer that. Mayor, Council members. Um, Shane. Thank you. Um, the answer is, we don’t. Totally know, but just like Tiff, we think once tiff always tiff that it’s going to be once lahar, always lahar. 00:56:51,530 Um, so you might be in a similar situation that you are with the existing loan from 2004 where you’re going to get this money back when there’s a new common bond recapitalization at that time, and you’ll just have to put it back and account for it and spend it on affordable housing. Is the likely scenario. So keep it’ll. It’ll stay for affordable housing is the basic assumption.. That is our working assumption. 00:57:13,970 Thank you. Are there questions Councilmember Nelson. More of a comment if that’s okay. Um. Sally. I’d just like to say I appreciate the work. The common bond does. Um, and very much appreciate the fact that you want to, you know, reinvest in your portfolio and protect affordable housing. 00:57:37,800 So, um, I just appreciate you working with our city here. And I look forward to the refurbishment. So thank you. Other question. Councilmember Sponheim. Thanks, mayor. I also just want to thank Common Bond for choosing to reinvest. Um, I actually know some family or some residents in Hollywood and, um, and I think when this begins to unfold, it will be really exciting. 00:58:07,400 Um, and because there’s a it’s a tight knit community and there’s, I mean, reinvesting in them and the way that you’re going to just do it as you just described by not moving people out and just trying to facilitate that nurtures the community that helps these folks continue on through days. 00:58:25,570 And a lot of them have pretty tough lives and so appreciate the support. Um, and I, I will be very excited if no one else wants to beat me to it to make a motion. But, um, I should wait and see if there’s other questions. I just I just had a comment. Mayor. Go ahead. 00:58:41,070 Councilmember I just appreciate meeting people where they’re at. That’s really hard sometimes in this day and age. And so I just appreciate that. And I was going to make a motion joke. I move that we approve the resolution recommending the use of local affordable housing funds for the will await Willow Wood Estates rehabilitation project. Second. 00:59:01,770 We have a motion and a second, any other discussion? I would agree it’s love. We always love it when property owners reinvest in their properties and bring them up to speed. And anything we can do, especially for the affordable units. 00:59:18,070 The three and four bedrooms are really, really hard for these families to find. So yes, thank you for coming on communities. I know you’ve invested a lot into Plymouth. Yeah. Um, and we appreciate what you’ve done here. So thank you. I appreciate you having me. Mayor. Council member. Thank you. All those in favor say aye. Aye aye. Opposed? That passes. Dave. Any report, staff recommendations? No reports.