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HomeMy WebLinkAbout1994-09-28 EHA MINUTESL ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS REGULAR MEETING SEPTE1\1BER 28, 1994 CALL TO ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:00 p.m. on Wednesday, September 28, 1994, at 3460 South Sherman Street, Suite 101, Englewood, Colorado, 80110, by Chairman Thomas J. Bums. IL ROLLCALL Members Present: Members Absent: Also Present: IIL STUDY SESSION Thomas J. Bums, Chairman Norleen Norden, Vice Chairman Matt Innes, Commissioner Bradley Zieg, Commissioner Sheri Gulley, Commissioner Paul Malinowski, Executive Director Mary A Ryan, Recording Secretary Evaluation of Executive Director MOTION VICE CHAIRMAN NORDEN MOVED TO ENTER EXECUTIVE SESSION AT 6:05 P.M. TO PERFORM THE EVALUATION OF THE EXECUTIVE DIRECTOR, PAUL MALINOWSKI. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Innes, Zieg None None Gulley The Chairman declared the motion carried. The Board entered Executive Session at 6:05 p.m. The Board left Executive Session and reconvened the Regular Meeting of the Englewood Housing Authority Board of Commissioners at 7:05 p.m. c:\Winword6'Minutcs\092894EH e EHA Board of Commissioners' Meeting September 28, l 99~ MOTION COMMISSIONER INNES MOVED TO RECONVENE THE REGULAR ~IEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS AT 7:05 P.M. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Innes, Zieg None None Gulley IV MINUTES MOTION VICE CHAIRMAN NORDEN MOVED TO APPROVE THE MINUTES OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF C01\1MISSIONERS MEETING HELD AUGUST 31, 1994, AS PRESENTED. COl\'IMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Burns, Norden, Innes, Zieg None Abstained: None Absent: Gulley The Chairman declared the motion carried. V. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors present at this meeting of the Englewood Housing Authority Board of Commissioners. VI. DIRECTOR'S REPORT 2 A. Narrative Report The Board reviewed the Director's narrative report and decided to hold any discussion concerning the Englewood Depot during agenda item No. VII. A. Simon Center management review conducted by HUD asset manager was discussed at length regarding replacement of the old, one-door refrigerators which have been in the units since the building opened in 1977 . The Board agreed that the upcoming 1995 budget process would be the most prudent time to consider this action. The Director's narrative report will become part of these Minutes as Exhibit "A". e EHA Board of Commissioners' Meeting September 28, 1994 B. Program Reports Noted briefly VIL DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A Depot --Architect Bill The Board reviewed the bill for the Englewood Depot relocation from Erickson Architects. EID Malinowski stated that a review of the bill indicated that some costs listed on the bill were associated with Englewood Historical Society matters (construction of the Depot model, meetings with Colorado Historical Society) and not directly related to the Depot move and foundation for the Depot. The Board discussed at the last Board meeting three documents : the deed, the promissory note stating how much money the EHS owes the EHA to date, and a third document which addresses lending the EHS funds for future costs associated with weatherproofing and securing the Depot once it is on the foundation. EID Malinowski stated that legal counsel had put the value in the draft deed of the actual sale, ( the land value per the appraisal, the foundation expense, the move expenses, and miscellaneous hard costs such as dismantling the dock and cleaning up the site). Other costs to be expressed in this promissory note are to be legal costs, costs to take down utility lines, and costs from the Traffic Division of the City of Englewood. This total amount will be the amount in the promissory note as what has been spent to-date. MOTION COMMISSIONER ZIEG MOVED THAT THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS ACCEPT THE APPRAISERS VALUATION ON THE LAND LOCATED AT 3098 SOUTH GALAPAGO STREET (TRAIN DEPOT SITE) AT $66,000. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: 3 Burns, Norden, Innes, Zieg None None Gulley The Chairman declared the motion carried. Title insurance on the depot site and/or building was discussed as it relates to the EHS obtaining a mortgage on the site and/or building in the future . Discussion ensued regarding transfer of the title of the building from the EHA to the EHS so that the depot building, affixed to the site , could be used in the future as collateral for the mortgage. Decision was reached that the depot building , once it is affixed to the site, is the realty and the warranty deed will cover it. e EHA Board of Commissioners ' Meeting September 28, 1994 The Board reviewed the following motions previously passed: EHA BOC Regular Meeting 09/29193 MQ'I.lQ!::!. COMMISSIONER ZIEG MOVED TO ADOPT RESOLUTION NO. 3, SERIES OF 1993, EXPRESSING SUPPORT FOR CRE4TING THE POSSIBIUTY OF SEWNG ENGLEWOOD HOUSING A UTHORI1Y LAND TO THE ENGLEWOOD HISI'ORJCAL SOCIETY (AT FAIR MARKET VALUE) AND PROVIDING A CONSTRUCTION LOAN OF UP TO $125,000 (AT A PREVAIUNG MARKET INTERESI' RATE) IN ORDER FOR THE ENGLEWOOD TRAIN DEPOT TO BE MOVED TO A PERMANENT SITE. COMMISSIONER GULLEY SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Innes, Gulley, Zieg None None None EHA Board Meeting February 23 , 1994 MOTION COMMISSIONER ZIEG MOVED TO AMEND RESOLUTION NO. 3, SERIES OF 1993, BY INCRE4SING THE AMOUNT APPROVED FOR THE CONSTR.UCTION LOAN (IN ORDER TO MOVE THE ENGLEWOOD TRAIN DEPOT TO A PERMANENT SITE) TO $250,000AT A PREVAIUNG MARKE!' INTEREST RATE. THE COLLATERAL FOR WHICH IS THE TRAIN DEPOT BUILDING ALONE. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: 4 Burns, Norden, Innes, Zieg None Gulley None The Chainnan declared the motion carried. The Board expressed its desire that these minutes reflect and clarify their previous action authorizing $250,000 for the construction loan (which covers the move, the foundation, and miscellaneous hard and soft costs associated directly with the move and construction of the foundation) and the additional loan of $66,000 for the land as appraised at fair market value ( as separate from and not a part of the construction loan to EHS). The Commissioners agreed that their intent was that the appraised value of the land would be a separate amount due and owing from the EHS apart from the construction loan of $250,000 . They also agreed that it was their intent that the EHS construction loan pay for insurance costs and associated legal costs for the Depot building. EHA Board of Commissioners' Meeting September 28 , 1994 EID Malinowski stated that legal counsel did not want to put future costs in this promissory note, only the costs incurred to-date. A separate construction loan agreement for future costs would be executed with EHS. Discussion ensued regarding whether the previous motion meant that only the Depot building was to be collateral on the construction loan or if the words "Depot Building" meant the train depot project or the site and the building. MOTION COMMISSIONER ZIEG MOVED TO CLARIFY THAT THE COLLATERAL FOR THE CONSTRUCTION LOAN FROM ENGLEWOOD IDSTORICAL SOCIETY TO ENGLEWOOD HOUSING AUTHORITY NOW INCLUDES THE SITE AND THE DEPOT BUILDING LOCATED AT 3098 SOUTH GALAPAGO STREET. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Innes, Zieg None None Gulley The Chairman declared the motion carried. MOTION COMMISSIONER ZIEG MOVED TO AUTHORIZE PAYMENT OF THE ARCIDTECT BILL TO ERICKSON ARCIDTECTS DATED SEPTEMBER 5, 1994, IN THE AMOUNT OF $18,070. COMMISSIONER ZIEG FURTHER MOVED THAT TIDS AMOUNT IS TO BE INCLUDED AS PART OF THE COSTS TO BE REPAID FROM THE CONSTRUCTION LOAN GIVEN TO ENGLEWOOD IDSTORICAL SOCIETY. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: 5 Burns, Norden, Innes, Zieg None ·- None Gulley The Chairman declared the motion carried. EHA Board of Commissioners' Meeting September 28, 1994 MOTION COMMISSIONER INNES MOVED THAT ALL COSTS INCURRED TO-DATE ASSOCIATED WITH THE TRAIN DEPOT PROJECT BE ROLLED INTO THE CONSTRUCTION LOAN TO ENGLEWOOD IDSTORICAL SOCIETY. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: 6 Burns, Norden, Innes, Zieg None None Gulley The Chairman declared the motion carried. EID Malinowski stated that every penny spent and every penny to be spent will be secured with a deed of trust. EID Malinowski stated that legal counsel asked for the Board's opinion on the promissory note, i.e. the promissory note states that the monies are to be repaid to the EHA from EHS in a single payment 18 months from the date of this note or earlier if any work is commenced on the site other than the work required to secure and weatherize the depot building. The EHS had some concerns that this wording was too restrictive and if the EHS, for example, wanted to start doing some of the tenant finish would that mean the EHS would have to pay the entire note off immediately. Legal counsel was of the opinion that any money spent on the depot building would trigger the repayment of the promissory note. EID Malinowski disagreed with counsel and stated he felt that was not really the intent of the EHA Board. Commissioner Zieg stated he felt legal counsel was reading in a restriction the Board did not intend. Commissioner Zieg further stated it was his understanding that the EHA would be repaid with the first dollars raised by the EHS, but if the EHS starts construction before the EHA is repaid, it may interfere with fund raising so that the EHA may not be repaid with grant dollars. Clarification ensued that any tenant finish work will not be done with any construction loan funds from the EHA. Only funds for securing and weatherproofing the depot building will be authorized by the EHA from the construction loan agreement with the EHS . The Board agreed that the language in question "if any work is commenced on the site other than the work required to secure and weatherize the depot building" would be taken out of the promissory note . EHA Board of Commissioners' Meeting September 28, 1994 The Board agreed to advance in the agenda to items VIL C and VIL D. for the sake of expediency. C. Authorize Approval of Borrowing Resolution --Rehab Loan Program MOTION COMMISSIONER ZIEG MOVED TO PASS RESOLUTION NO. 5, SERIES OF 1994, AUTHORIZING THE ENGLEWOOD HOUSING AUTHORITY TO ENTER INTO A BORROWING AGREEMENT WITH FIRST INTERSTATE BANK OF ENGLEWOOD FOR $300,000 AT 6.0% INTEREST FOR A LINE OF CREDIT FOR THE REHAB LOAN PROGRAM AND AUTHORIZE THE CHAIRMAN AND THE EXECUTIVE DIRECTOR TO SIGN ALL NECESSARY DOCUMENTS. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Innes, Zieg None None None The Chairman declared the motion carried. EID Malinowski stated that Kelso Kelly at First Interstate Bank had been terrific in his help in securing the terms of this agreement and he further called the Board's attention to the interest rate in the borrowing agreement and stated that this was a double tax exempt rate. Chairman Bums stated that at a networking group through the Greater Englewood Chamber of Commerce the Rehab Loan Program was discussed and Kelso Kelly had stated that the EHA has a secret weapon in the Rehab Loan Program --Janet Grimmett. D. Refinance of Simon Center 7 Protractive discussion ensued regarding how much interest would be paid on the Simon Center Bonds between now and December, 1998, the maturity date of the bonds. Lengthy discussion ensued regarding how much would be available from Simon Center net operating income if the project's bonds were paid off early and the mortgage was refinanced . Commissioner Zieg stated that he felt it would be financially advantageous if the EHA refinanced Simon Center at 8.5% for 30 years fixed term, paid off the bonds, took the remainder and invested it in treasury bills, and invested the bond principal and interest reserves and some maintenance reserves to reduce the current balance due on the bonds . He stated that he felt a million dollars could be converted to cash and put into an account to do housing related projects if this refinance was done. e EHA Board of Commissioners ' Meeting September 28, 1994 Discussion ensued regarding a theoretical or potential decision by the U. S. Congress to not fund any further monies to continue the HAP payment on Simon Center after its expiration in 2002. Commissioner Zieg asked the Board to direct EID Malinowski to look at this issue for additional pitfalls and explore the idea of paying off the Simon Center bonds and use the money to fund more housing. EID Malinowski stated he would ask legal counsel to review the HAP contract and bond documents to make sure there is no prohibition and he felt legal counsel would refer this to the bond counsel to look at the bond documents and make sure this was allowed . EID Malinowski stated that unless legal counsel finds some reason this cannot be done, the only other drawback could potentially be political when the HAP Contract expires. B. Executive Session to Discuss a Real Estate Matter MOTION COMMISSIONER ZIEG MOVED TO ENTER INTO EXECUTIVE SESSION AT 8:50 P.M. TO DISCUSS A REAL ESTATE MATTER. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Bums, Norden, Innes, Zieg None None Gully The Chairman declared the motion carried. The Board entered Executive Session at 8:50 p.m. The Board left Executive Session and reconvened the Regular Meeting of the Englewood Housing Authority Board of Commissioners at 9:30 p.m. MOTION COMMISSIONER INNES MOVED TO RECONVENE THE REGULAR :MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS AT 9:30 P.M. VICE CHAIRMAN NORDEN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: 8 Burns, Norden, Innes, Zieg None None Gulley The Chairman declared the motion carried. EHA Board of Commissioners ' Meeting September 28, 1994 MOTION COMMISSIONER ZIEG MOVED THAT THE ENGLEWOOD HOUSING AUTHORITY (EBA) NOTIFY WHERE TBA T THE EBA IS NOT GOING TO EXTEND THE MANAGEMENT CONTRACT WITH THEM BEYOND THE EXPIRATION DATE OF OCTOBER 25, 1994. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Innes, Zieg None None Gulley The Chairman declared the Motion carried. MOTION COMMISSIONER ZIEG MOVED THAT THE COLORADO HOUSING FINANCE AUTHORITY BE NOTIF'IED OF THE ENGLEWOOD HOUSING AUTHORITY'S DETERMINATION NOT TO EXTEND THE MANAGEMENT AGREEMENT CONTRACT WITH WHERE AND THAT CURRENTLY THE EBA IS NOT INTERESTED IN ASSUMING THE CURRENT DEBT LOAD TO PURCHASE THE GROUND UNDER THE WHERE PROPERTIES. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VII. IX. 9 Burns, Norden, Innes, Zieg None None Gulley The Chairman declared the motion carried. FINANCIAL REPORT Noted with brief discussion . CONSENT AGENDA Noted with brief discussion . EHA Board of Commissioners' Meeting September 28, l994 X. lO GENERAL DISCUSSION A. Commissioners' Choice Briefly discussed was a potential housing project. Commissioner Zieg asked EID Malinowski to check with the owner of a property within the City to see what the for-sale status was and whether or not the property can change hands and if the owner is willing and able to sell this property. Chairman Bums mentioned that he thought it was important for the EHA Board to get together with the new Englewood City Manager and see what the new City Manager means about incorporating more housing into the City's plans. The Board agreed that the new City Manager should be invited to a study session to discuss housing plans for the City of Englewood. Mary ,A. Ryan, Recording Secretary