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HomeMy WebLinkAbout10/25/16-'A� WRHA Wheat Ridge Housing Authority Minutes of Special Meeting October 25, 2016 A. CALL THE MEETING TO ORDER The meeting was called to order at 4:08 p.m. by Vice Chair Harr in the Second Floor Conference Room of the Municipal Building, 7500 West 29`x' Avenue, Wheat Ridge, Colorado. B. ROLL CALL OF MEMBERS Authority Members Present: Thomas Abbott Tim Fitzgerald Chad Harr Jennifer Walter Authority Members Absent: Janice Thompson Also Present: Kenneth Johnstone, Community Development Director Tammy Odean, Recording Secretary C. APPROVAL OF MINUTES: 1. March 1, 2016 It was moved by Ms. Walter and seconded by Mr. Fitzgerald to approve the minutes of March 1, 2016 as written. Motion approved 4-0. D. OFFICERS REPORTS E. PUBLIC FORUM There was nobody present from the public to speak. F. NEW BUSINESS Housing Authority Minutes October 25, 2016 G. OLD BUSINESS 1. Fruitdale Update Mr. Johnstone gave a brief history and recent accomplishments regarding the Fruitdale School and the negotiations with the HEI development team. The WRHA authorized a contribution of $17,000 in grant funds and $400,000 in a long term interest bearing loan in January of 2016. City Council also made significant commitments in the form of $470,000 in grant funds and $2 million in a loan. A lot of progress has been made in the last 10 months including: a zone change, a quite title action, land exchange with Jeffco School, the pro forma is close to becoming final and there is a tentative closing date for Fruitdale in November. Mr. Johnstone also explained that there has been approval by the National Park Service and History Colorado for the remodel which will help pay back the City's loan with state Historic Preservation Tax Credits. HEI has received a Letter of Interest from Pinnacle Real Estate Group to purchase 50% of the federal historic preservation tax credits at an 80% discount rate. The remaining federal HPTC still need to be purchased. One of the deal points that will change is the remaining Federal Tax Credits will be utilized internal to the project. Another change deals with the grants from the City, HA and Home Funds. They are taxable events which is a significant hit on the pro forma. The grants will now become long-term loans and will be repaid 30 to 40 years out. The state tax credits are also a taxable event. We have reengaged with EPS to make sure we are entering into a good deal and not missing anything. There will be a study session with City Council on November 7 to discuss the $1/2 million loan that will be paid back later than expected, and then action at the City Council meeting on November 14. There will probably be a special meeting in November to sign off on an amended development agreement. Finally, a contractor has been hired and the construction costs are coming in consistent with the estimates. Mr. Fitzgerald asked if the tax hits are from the state and who takes the hits. Mr. Johnstone explained the state tax credits are federally taxable and the hits are absorbed in the bottom line of the pro forma and we are looking at ways to change the timing of when things get paid out in the pro forma. Mr. Fitzgerald asked that if ballot question 2e fails will the city have enough money to accept this change. Mr. Johnstone replied yes and explained it is understood by City Council of the need to dip into restrictive reserves. Mr. Fitzgerald also asked what the rents are going to be for the market value apartments. Mr. Johnstone said the market rates for the detached house three bedroom will be $1600 the two bedroom will be $1300 and the 1 bedroom will be at $850. There will Housing Authority Minutes 2 October 25, 2016 be high affordable (80%) and low affordable (50%) rates. The two bedroom, high affordable will be $1055; three bedroom, high affordable will be $1200; two bedroom, low affordable will be $800. Utilities will be covered by the tenants to a point; $100 per unit per month. Solar tax credits will help. Mr. Johnstone also explained that there is disappointing news in the phase 1 and phase 2 environmental assessments. Unfortunately, not all environmental contamination was identified in the previous assessments; there is asbestos in a portion of the old roof. The other change is that EPA rules used to allow limited construction penetration in asbestos tiles, but it is not possible now so the tile floors might need to be totally abated. The construction costs will take the hit on the abatement, but there should also be some contingencies in the construction budget. Mr. Abbott wondered if anything regarding the asbestos in the roof would fall back on the school district. Mr. Johnstone explained it is something that will need to be explored. Ms. Walter asked with regards to the asbestos if the City's Brownfield Grant is only for assessment and not remediation. Mr. Johnstone agreed and added he recently became aware of a remediation grant, but hasn't pursued it yet. There was then discussion about the redevelopment surrounding the Fruitdale community including the Wheat Ridge Ward Road Station and Clear Creek Crossing and the positive attention it will give to the community. It was moved by Mr. Fitzgerald and seconded by Mr. Harr to express continued support for the redevelopment of Fruitdale School and further move to express final refinements to the Development Agreement for review at a special meeting in November. Motion carried 4-0. H. OTHER I. ADJOURNMENT It was moved by Mr. Harr and seconded by Mr. Fitzgerald to adjourn the meeting at 5:07 p.m. Motion carried 4-0 nice ompson, Ch it Tammy Od , ecording Secretary Housing Authority Minutes 3 October 25, 2016