The URL can be used to link to this page

Home My WebLink About2012-06-06 PACKET 04.N.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 6/6/12 • 0 PREPARED BY Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Consider authorizing letter of support to the Minnesota Housing Finance Agency (MHFA) on behalf of Washington County HRA and Shelter Corporation for the Parkside Apartments rehabilitation project. STAFF RECOMMENDATION Approve sending a letter of support to the MHFA on behalf of the Parkside Apartments (The Groves Apartments) project, BUDGET IMPLICATION N/A N/A BUDGETED AMOUNT ACTUAL AMOUNT ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY DATE REVIEWED APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS ® MEMO /LETTER: Roland 6/1/12 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Letter of support ADMINISTRATORS COMMENTS. / ityAdministttrtor Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER HACouncil items \City Council Action Form.doc City of Cottage Grove Finance Department TO: Honorable Mayor and City Council Ryan Schroeder, City Administrator FROM: Robin Roland, Finance Director r' T • DATE: June 1, 2012 SUBJECT: Consider authorizing letter of support to the Minnesota Housing Finance Agency on behalf of the Washington County HRA /Shelter Corporation partnership for the Parkside Apartments rehabilitation project Introduction The Washington County HRA in partnership with Shelter Corporation has approached the City with their plans to renovate the Parkside Apartments. In order to finance these renovations, they will be seeking housing tax credit funding from the Minnesota Housing Finance Agency (MHFA). They are asking for a letter of support from the City on their behalf to MHFA. Discussion The Washington County HRA purchased the Parkside Apartments (7752 Hemingway Ave South) in 1990 and has made several rounds of improvements to the property over time. These 72 rental housing units provide affordable housing within the Cottage Grove community. Recently the HRA partnered with Shelter Corporation to form a Limited Liability corporation in order to significantly renovate the housing complex while maintaining its affordability. The $4 million in exterior and interior renovations will be financed by housing tax credits and gap financing from MHFA and other local partners. The HRA still maintain control over the property which means that payment in lieu of taxes (PILOT) will continue and ensure long term affordability. The renovations will include the removal of one building, changing 3 bedroom units to 2 bedroom /den units, additional amenities and overall appearance improvements. The HRA hopes to create additional open space and improve unit marketability. Further, they hope this revitalization project sparks reinvestment by neighboring properties. The name of the complex after the renovations project will be 'The Groves Apartments ". To secure the housing tax credits which are so vital to this plan, they have asked that the City provide a letter of support on their behalf. The proposed letter is attached. Requested Action Approve the letter of support to the MHFA on behalf of the Washington County HRA/Shelter Corporation partnership for the Parkside Apartment revitalization project. City of Co #ta Grove Minnesota 7516 80th Street Soyyth�Ggt( ge Grove, Minnesota 55016 -3195 www.cottag$kJdd?�e.�rg l)1 , Minnesota Housing Finance Agency 400 Sibley Street Suite 300 St. Paul, MN 55101 Subject: Revitalization of Parkside Apartments To whom it may concern: 651 - 458 -2800 Fax 651- 458 -2897 TDD 651 -458 -2880 The City of Cottage Grove strongly supports the revitalization of Parkside Apartments into The Groves Apartments. One of the Cottage Grove City Council's strategic goals is that opportunities are provided for affordable rental housing in the City. The Parkside Apartments are a significant piece of the affordable housing stock in our community. Cottage Grove further supports community revitalization projects to keep our community strong and vibrant. The substantial rehabilitation of Parkside Apartments is part of our ongoing community revitalization plan. We understand that without the allocation of the 9% Housing Tax Credits, this substantial rehabilitation of the Parkside property by the Washington County HRA /Shelter Corporation partnership will not be able to occur. Therefore, the City Council of the City of Cottage Grove strongly supports the application by the Washington County HRA and Shelter Corporation for the 9% Housing Tax Credits. Thank you for your consideration. Sincerely, Myron Bailey Mayor EQUAL OPPORTUNITY EMPLOYER �'; a� zJ �� g� 8� a �� _X� � � �� °� a�� _I Proposed New Modernization /Renovation Improvements PROJECT BASE SCOPE/WORK DESCRIPTIONS: PROJECT OVERVIEW: • Built in 1982 (partial renovation 2006) • 72 housing units (3 bedroom townhomes — 18 buildings of 4 units each) • Community Building included • Fall of 2012 start or spring 2013 • No prevailing wage requirements • Tax Credit (9 %) restructuring with Washington County HRA SITE WORM MPROVEMENTS: • Very minimal sidewalk or Curb /gutter concrete replacement needed. • Entry sign redone in 2009. No work. • Bituminous paving in good condition. Include crack sealing and chip seal throughout. • Landscaping around buildings needs an upgrade. Site currently has a sprinkler system at the entry boulevard, . but most of the site is without irrigation. Add a complete irrigation system. • Playground area needs refurbishing • Demolish one building (4 units) to facilitate an appropriate playground area. Cap off utilities as necessary. • Play bed material with containment enclosure and playground equipment. See Cermak sketch. • And site benches, octagon picnic tables and trash can enclosure at this new playground area in addition to a new concrete . patio area. • New concrete retaining wall at access walks to new playground. • Re -grade between buildings and add retaining walls to correct large building to building step down grade changes that do not accept grass long term. Include modular retaining walls between buildings (two tiers) where sharp grade changes occur in lieu of large back to front slopes. • No work at trash enclosures. • No work at community mailboxes. EXTERIOR BUILDING IMPROVEMENTS: Garaoes: • Garage wall, gutters and downspouts are in excellent condition. A few garage jambs are dented and will need replacement of pre- finished metal trim. Assume 20 %. • Siding was replaced only in this area in 2006. Yellow color band of siding to remain but siding above to be replaced. • New Garage doors replaced in 2006. No work needed. Townhome Apartments: • Unit entry H.M. systems need replaced. • Unit entry doors: • Garage entry doors & frames to be replaced including new hardware. • Front unit entry doors to be replaced including new hardware. • Siding /fascia /soffit: • Existing blue /green soffit/fascia to stay. Removal & replacement included from white band at garages to soffit (excluding soffit & fascia replacement) included with pre - finished hardi siding including trim around windows. • New yellow vertical siding band at entries and lower garage door areas (installed in 2006) to remain. • Gutters & downspouts new in 2006. No gutter work, some partial replacement of downspouts where damaged. • Windows need to be completely replaced universally to include: • New vinyl windows with exterior band trim. • Remove wood jamb & trim at interior • Patch back with extension jambs and casing at interior. • Roofing shingles last redone back in 1999. Include new architectural style shingles throughout. Parkside Apartments— Cottage Grove, MN Page 1of3 ; FRERIE October 7. 2011 CONSTRUCTION Parkside Apartments 7752 Hemingway Avenue South Cottage Grove, VIN INTERIOR IMPROVEMENTS: Finishes: • Front Entries: • Wood cap to be re- finished at entries. • Metal railings to be raised to meet code. • Wood skirt boards to be re- finished. • Carpet removed at stairs and replaced with VCT and vinyl treads with friction nosing. • Landings to be matching vinyl to the trends /nosing. • New Appliances needed throughout. Dishwasher, disposal, refrigerator, range and non - vented hood. • Two bedroom /den reframing: o Remove partial walls at /] of the smaller kitchen units opening up the third bedroom to be utilized as a den. Assume % of units (34 units). • Laundry: o Add individual stacked washer /dryers including framing of drywall walls and patching to facilitate dryer venting, washer box with drain, disaster pan (with drain). o Demolish community garage entry level building laundries (one per building) and reuse TBD. • Cabinetry: • New kitchen and bathroom vanity cabinets throughout. • New plastic laminate tops at kitchens • Cultured marble vanity tops replaced throughout. • Add eating island at large kitchen layout as shown in 34 units. Specialties: o New bath accessories throughout to include'. • Toilet paper holders • Towel bars • Surface mounted medicine cabinets • Mirrors • Interior Doors: • Interior closet doors 8 swing door replacement. Include 75% replacement of doors only. • Frame and trim to remain Legacy type finish. • Flooring: • New vinyl flooring in all kitchens /dining • New carpet in all units Painting: • Interior paint in 50% of units included. • Touch -up painting at entry columns. Mechanical: Plumbing: • New kitchen sinks (SS drop -in) and single lever kitchen faucets in all units. • Bath fans to be replaced with Panasonic low sone type. • Replace unit water heaters (one per 4 building group): • Existing is a 75 gallon 75,000 BTU standard class B flue unit. Assume replacement of all water heaters with dampened vent, non -power vented water heaters continuing to utilize the class B flue, but meeting Energy Star requirements. • Install water softeners to all buildings at the water heater locations (one per 4 unit building). Parkside Apartments — Cottage Grove, MN Page 2 of 3 October 7, 2011 FRERICHS CON STR VCTiOk HVAC: o HVAC — Individual unit Carrier brand forced air furnaces exist that were replaced in 2006 therefore keep. Add "A" coils and condenser units to each unit furnace extending condenser piping inside the stud spaces from the inside with a stacked vertical stud space. • Dryer venting for third floor units through the roof and second floor units through the sidewall. • Re -use existing fresh air vent piping in the furnace room for combustion air. • With new "A" coil, remove through wall AC & can patching the opening. Electrical: • New Exterior light fixtures: o New site lighting poles at new playground area only. • New interior light fixtures • Kitchen. Add cloud fixtures to all units (90 %). • Bathroom vanity lights complete. • Hallway fixtures complete. • Dining Room fixture NO WORK (fan /light combos installed). Miscellaneous Electrical: • Added cable TV outlet in second & third bedrooms to eliminate cable ran under carnets and along walls. • New A/C disconnects for each unit. Re -using existing A/C feed will be difficult due to placement. • Add outlet for water heater (one per 4 unit building) • New call systems at each building with module to provide calls to unit phone or mobile phone as programed. Same basic system operation. • Smoke detectors remain at hallways (smoke /co), but replace bedroom smoke detectors from battery to hard wired. • Common area fixtures at garage access corridor and stair entry towers to remain (2006 renovation). Parkside Apartments— Cottage Grove, MN Page 3 of r FRERICHS October 7, 2011 ` ° CONSTRUCTION