HRA Minutes 11-04-1992
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, November 4, 1992 - 7:00 p.m.
City Hall
MEMBERS PRESENT;
Chairperson Al Larson, Ben Smith, Lowell
Schrupp, and Everette Ellison.
MEMBERS ABSENT:
Tom St. Hilaire.
STAFF PRESENT:
Ollie Koropchak.
STAI"F ABSENT:
Rick Wolfsteller and Jeff O'Neill.
GUEST PRESEN1';
Barb Schwientek, Monticello-Big Lake Community
Hospital.
William Jacobson, The Housing Alliance.
William Kemp and Kurt Mayer, SEE
1. . glJ. L L'!'..9~..Q!3l?_ E R :.._
Chairperson Larson called the HRA meeting to order at 7:05
p.m.
2.
gON?ID~FATION TO APPROVE THE AUGUST 5 ANQ SEPTEMBER 29, 1992
HRA MINUTES.
The need for a correction to the August 5 HRA minutes was
noted by Ben Smith, page 2, paragraph 2, correct prepares to
perhaps. A motion was made by Lowell Schrupp to approve the
amended August 5 and the September 29, 1992 HRA minutes.
Seconded by Ben Smi th and wi th no further corrections or
addi tions, the HRA minutes were approved as amended and
written, respectively.
3. CONSIDERATION TO HEAR FINANCIAL OPTIONS AND PROFESSIONAL
~SS..1_STANClLbVAt.~ABLE FOR SEiil0R C1l.~Kl'WUSING (MR~_;!_~c;OBSON ~ND
MR. KEMP).
One of the BRA objectives is to keep abreast and to explore
local senior housing needs and options therefore this meeting
was dedicated to that purpose.
Barb Schwientek provided HRA members with a guide to senior
residential options as prepared by the Minnesota Association
of Homes for the Aging. She noted medicaid reimbursements
have changed to encourage homecare living with assistance, the
intent is to reduce both elderly care costs and the need to
construct new nursing homes. Barb reported the existing ten--
year old market study is outdated, today's elderly have more
affluent incomes, and it appears the Ridgemont Apartments are
having difficulties finding qualified applicants. The need
for a new market study appears to exist.
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liRA MINUTES
NOVEMBER 4, 1992
Mr. Jacobson informed the HRA that The Housing Alliance, a
professional corporation, was formed to assist communities or
non-profi t organizations in developing and planning senior
housing. The project team concept used involves the project
owner, project administrator, market researcher, financial
advisor, architect/planner, construction manager, and
management consultant. Alliance projects constructed or
c()lnpleted exist in Hopkins and Owatonna. Owatonna' s non--
institutional, quad-design encompasses larger parlor/kitchen
areas. To be an effective anu sufficient operation the
faciLity generally needs 30 to 40 units. Operating and
management expenses run approximately $1,000 per month or
$1,500 per month for a couple. This includes a full--time
management, cook and cook's assistant, 24-hour nurses aid, and
1/2 time clerk. Alliance's fee as project facilator is 3.5%
of the project costs.
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Mr. Mayer, Marketing Director, and Mr. Kemp, Architectural
Marketing, for SEH informed the HRA of a recent senior market-
rate project completed in Faribault where the HRA assisted
with the site development of a blighted one-block area and
sold functional bonds. The 54-''lmi t facil:i ty of two bedroom
uni ts has underground-heated parking. Others were constructed
in Stillwater and White Bear Lake. Assisted-living facilities
of 30-40 units were constructed in Clara City, Appleton, and
Deer River. If rates are reduced than the services are cut
and since the big team builder of a successful project is the
SE1"vices offered and managed, SEH doesn't encourage rate
redllCtion. A campus design with wings for assisted-living and
independant-living with kitchen or without kitchens are
examples of the flexible market. SEB fees are based on a per
unit not-to-exceed figure which is not paid until the bonds
are sold.
The first step, the market study becomes the tool for defining
your local housing niche and needs, the firm designated for
the market research should be acceptable to lending
institutions. Market studies generally costs $5,000 to
$6,000. Financing, concept design, services, ownership,
management, and the performa are all keys to successful
projects. Optional ownerships are an HRA, Hospital District,
non-profit organizations or private which is highly unlikely
today. Some various funding sources are revenue or functional
bonds, TIF, Minnesota Housing, BUD, Minnesota Farmers, etc.
The completed project should be self-supporting and a benefit
to the community.
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HRA MINUTES
NOVEMBER 4, 1992
With the completion of the two independent presentations, Barb
Schwientek recommended the HHA visi t the Gual'dian Angels
faci.lities in Elk River. Koro:pchak will arrange the visit
through Carol Mills or Sherri Emerson at 441-1213.
4. CONSIDERATION TO REVIEW AND EXECUTE THE INDEMNITY AGREEMENl'"_.
AND THE TAX-,FORFEITED LANDS CONVEYANCE FORM FOR OUTL01'_~_L_
COUNTRY CLUB MANOR.
Tabled.
5.
gONSIDERATION TO REVIEW HRA BILLINGS AND
PERFORMANCE OF ATTORNEYS AND BDS, INC.
PROJECT WORK
Koropchak noted to HRA members charges from BDS, Inc. for
Aroplax's Central Minnesota Initiative Fund Application which
was denied, charges for attending the Aroplax's Groundbreaking
Reception, SBA charges if a $2,500 fee is charged by Mr. Bob
HE!ck, and charges for the development of a business plan.
Also, noted was the communication breakdown after loan
application completion, approval and closings. It has been
the recommendation of the EDA to have one attorney represent
the BRA and the EDA for document and closing services inorder
to prevent duplicate reviewing of documents and fees. The HRA
was receptive to inviting the St, Cloud HRA Executive Director
or the NAHRO Executive Director to a meeting in the future.
The HRA recommended inviting Mr. Pat Pelstring to the next
meeting to review the HRA's contract and fees.
6.
OTHER BUSINESS.
The HRA recommended Koropchak attend the NAHRO's Fall
Conference in Bloomington next week.
7 . f\DJ01!RNMEN't~
The liRA meeting adjourned at 9;30 p.m.
a~ \<cl\~~
Ollie Koropchak, BRA Executive Director
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