TOWN OF GILBERT REDEVELOPMENT COMMISSION

REGULAR MEETING OF FEBRUARY 21, 2002, 6:30 PM.

10 S. GILBERT ROAD
GILBERT, ARIZONA 85233

COMMISSION PRESENT: Chairman Haug, Vice Chairman Fresquez, Commissioner Thomson, Commissioner Valentine and Commissioner Iacobazzi

COMMISSION ABSENT: None.

STAFF PRESENT: Community Development Specialist Carl
Harris - Morgan, Town Manager George Pettit, Councilman Don Skousen, Planning & Zoning Liaison Michael Monroe and Administrative Assistant Elizabeth Stupski

OTHERS PRESENT:        Community Services Representatives Yolanda Flores, Robert Kropp, Carol Grasso, Minnette Himmelberger, Jeanne Vega and Maryann Thomas; Community Housing Resources of Arizona Representative Joann Hauger; East Valley Habitant for Humanity Representative Linda Freundlich; Mercy Housing Southwest Representative Lori Rossi; Central Arizona Shelter Services Representative Chuck Maas; Gilbert Cares Representative Paul Heartquist; Cynthia Dunham; Emily Hilton and Whitneybell Architects Principal Doug Whitneybell

ROLL CALL

Roll was called and a quorum was declared.

1.        Minutes - Approve the regular meeting minutes of January 17, 2002 and Special Meeting Minutes of January 30, 2002
Vice Chairman Fresquez asked if there were any corrections needed to the Regular Meeting Minutes of January 17th or to the Special Meeting Minutes of January 30th.

A MOTION was made by Commissioner Thomson, seconded by Commissioner Valentine to approve the minutes of the regular meeting of January 17, 2002 as written. Voice vote carried 4 - 0.

A MOTION was made by Commissioner Valentine, seconded by Commissioner Thomson to approve the minutes of the Special Meeting of January 30, 2002 as written.   Voice vote carried 4 - 0.

Chairman Haug joined the meeting after the vote.

COMMUNICATION FROM CITIZENS
Chairman Haug opened the floor to the public for any comments or communications on items not on the agenda. No communications from citizens.

2.        Water Tower Preservation Coalition
Ms. Cynthia Dunham began by thanking the Commission for giving of their time to serve the community and how it is appreciated. Ms. Dunham stated that the Water Tower is an asset to Gilbert and should be an attractive icon. She indicated the Water Tower is in desperate need of repairs and with the future plans and construction coming to the Heritage District, the Town must improve the area aesthetically. She stated the figures for preserving the Water Tower were given to the Commission at the January 17th meeting. She requested the Commission refer to the minutes for the amounts.

Ms. Dunham reiterated that the Coalition is committed to raise $120,000 in private funds toward this effort and would like to request that the Town furnish the remaining funds to complete the preservation.

Ms. Dunham stated a public hearing was held on February 7th and for those who attended most were in favor except two individuals who felt that public funds should not be used. Chairman Haug asked if the Commissioners had any questions. Clarification was given as to the public funds needed.
A MOTION was made by Commissioner Iacobazzi, seconded by Commissioner Valentine to recommend that the Town Council support the Water Tower Preservation project with an approximate total to cost $370,000 of which $120,000 be from private funds with the balance coming from public funds. Voice vote carried 5 - 0.

3.        Senior Housing Project - Request to select preferred developer
Community Development Specialist Harris - Morgan summarized the process to date for the Senior Housing Project located at the northwest corner of Oak Street and Park Avenue. He stated the Town received three (3) proposals before the December 21st deadline. The committee reviewed all proposals submitted and decided to interview two (2) of the respondents. Following the interviews, the committee recommended and selected Mercy Housing Southwest as the preferred developer for the site. He described the proposal submitted by Mercy Housing Southwest in more detail and reminded the Commission it is only preliminary, it is not a final site plan.

Community Development Specialist Harris - Morgan stated the project would consists of five separate buildings with a total of 100 units. The elevation would be two to three story high accessible by elevators. He asked the Commission to make a recommendation to move forward into negotiations to create a development agreement.

Community Development Specialist Harris - Morgan indicated that Ms. Lori Rossi of Mercy Housing Southwest and Mr. Doug Whitneybell were present and available to answer any questions.

Commissioner Valentine asked if an elevation was available. A sketch of the North elevation was displayed for the Commission to view. Chairman Haug asked what type of parking was available and if covered parking would be available. Mr. Doug Whitneybell replied the parking is 1:1 and at this time no covered parking was discussed.

Commissioner Valentine stated he served on the committee and liked the site plan as well as the amount of parking. He continued that this design is a solution to provide independent living for seniors and not give the impression of an institution. Chairman Haug inquired what other projects of this nature has been undertaken by Mercy Housing Southwest. Mr. Whitneybell responded that there is a housing project very similar in Glendale that is just about complete. Chairman Haug requested the address of the project located in Glendale. Ms. Rossi responded 6515 W. Marilyn Avenue.

A question asked by Commission Iacobazzi pertained to the recreation facility and its furnishings. Commissioner Valentine stated that during the interview process, there was discussion about providing a covered drop - off. The developer did agree to look at this issue. Community Development Specialist Harris - Morgan mentioned the actual site plan would come before the Commission at a later date.

Chairman Haug opened the floor to the public for any comments. Hearing none, Chairman Haug brought it back to the Commission.

A MOTION was made by Commissioner Valentine, seconded by Commissioner Thomson to recommend that Mercy Housing Southwest be chosen as the preferred developer for the 3.24 - acre site at the northwest corner of Oak Street and Park Avenue and direct staff to enter into negotiations to create a development agreement for a senior housing development at that site. Voice vote carried 5 - 0.

4.        Community Development Block Grant and HOME Investment Partnership FY 2002 - 03 Funding Allocations
Community Development Specialist Harris - Morgan indicated that eleven applications were received for consideration of CDBG and HOME Investment Partnership allocation. Foundation for Senior Living withdrew its application after learning an emergency/minor repair program was already in existence. The organization did not want to duplicate a program and compete for clients.

Community Development Specialist Harris - Morgan requested that the applicants prepare a three - minute presentation. He also proposed doing something different with CDBG funding allocation for FY 2002 - 03 with two allocation cycles, Round 1 and Round 2. Round 1 is the $497,000 FY 2002 - 03 allocation from HUD and Round 2 would be funded with existing CDBG funds, which is estimated to be at least $100,000. Community Development Specialist Harris - Morgan indicated that organizations with applications not funded would be contacted before the start of the Round II funding cycle.

Community Development Specialist Harris - Morgan mentioned he went to Town Council recently with the down payment assistance recommendation and several council members stated to the fact that they would like to see funds assist already existing communities such as Gilbert Homes Septic Tank issue.

The Commissioners were comfortable with the proposed two rounds. Mr. Paul Heartquist of Gilbert Cares asked for an explanation by staff as to the staff score and staff recommend since Gilbert Cares scored low. Community Development Specialist Harris - Morgan responded and Chairman Haug stated the Commission has not made any prior decisions but rely on the given information as a starting point. Chairman Haug indicated the Commission would hear from all applicants. After each presentation, the Commission was given an opportunity to ask questions.

Ms. Joann Hauger, Executive Director of Community Housing Resources of Arizona (CHRA) gave a summary of the down payment assistance program. She stated the goal is to assist 25 low to moderate income Gilbert households with one - on - one prepurchase counseling preparing them to qualify for a mortgage and to fund 9 Gilbert households in the form of a soft - second mortgage to purchase a home in Gilbert. Ms. Hauger indicated she is only here for the second round of funding.

Ms. Yolanda Flores summarized the Emergency Repairs and Minor Rehab Program and the services provided by such a program through Community Services of Arizona (CSA). Ms. Flores indicated this program has been in operation since 1997 and has assisted over 100 Gilbert residents with emergency repairs and minor rehab services. She stated that emergency repairs eliminate unhealthy, unsafe and dangerous housing conditions and minor rehab prevents further deterioration of the home. Ms. Flores mentioned as of January 2002, 37 low to moderate income Gilbert families have been assisted.

Community Development Harris - Morgan commented that CSA has had an increase in applications and are requesting to use all the prior year (2001 - 02) funds past June 30th.

Ms. Linda Freundlich, Executive Director for East Valley Habitat for Humanity (EVHfH) gave a brief overview of the organization and scope of the program. East Valley Habitat for Humanity has been operating for 11 years, has completed 22 homes in surrounding communities and would like to build a home in the Gilbert. She indicated EVHfH is requesting money for land acquisition in Gilbert with the cooperation of the City or Town. A 3 - 4 bedroom home would be built by using donated labor and materials. Families who qualify are asked to perform about 200 - 400 hours in ’sweat equity’ in the building of their home as well as homes of others.

Commissioner Iacobazzi asked whether the $45,000 for land acquisition listed in the budget is typical. Ms. Freundlich responded it would depend and whether the City/Town is assisting to obtain the property. Commissioner Iacobazzi also asked for clarification of the figures listed in the other sources column that pertains to Professional Services, Building Materials and Construction Program. Ms. Freundlich said the organization has a person, a donation coordinator, who solicits for donations to build the home.

Ms. Carol Grasso, Social Services Administrator with Community Services of Arizona (CSA) gave a brief overview for two program requests, the Gilbert Senior Center - Congregate/Home Delivered Meals and the Gilbert Community Action Program - Homeless Prevention. Ms. Grasso stated the Gilbert Senior Center is looking to increase the home delivered meals to the elderly and disabled persons and congregate meals to senior 60 and older. She indicated 24,000 meals were provided to individuals residing in Gilbert for 2000/01 and anticipates providing approximately 26,000 meals in both settings during the 2002/03 program year based on program projections. Ms. Grasso said the $12,000, if granted, would provide 531 persons with an average of 3 meals a week.

Because of the recent economic downturn, lay - offs in the East Valley and increases in living expenses, the Gilbert Community Action Program (CAP) has experienced an increase in requests for assistance from Gilbert residents. Ms. Grasso mentioned some of the services provided by CAP include payments for rent, mortgages, utilities, and move - in deposits. CAP also assists with basic needs such a food, clothing, childcare, transportation and medication. Ms. Grasso indicated that Community Services of Arizona is projecting a major cut from Maricopa County, which is a major funding source for this program.

Mr. Paul Heartquist, Executive Director for Gilbert Cares gave a brief history of the organization and scope of the program. He stated Gilbert Cares was founded four years ago and refurbishes homes for low - income elderly, disabled and at - risk families. Gilbert Cares received previous HOME Investment Partnership funding in 1999 and 2000. Mr. Heartquist distributed a letter as documentation showing proof that Gilbert Cares has applied for tax - exempt status.

Mr. Heartquist requested Gilbert Cares be considered as a recipient of CDBG funds and to disburse the money where it would be most productive. He did state an objection with the rating provided in the communication and reminded the Commission of the past associations with Gilbert Cares. Mr. Heartquist mentioned getting volunteers is the least of his worries but identifying homes in need of refurbishing is the most difficult.

Chairman Haug inquired as to how many homes were refurbished. Mr. Heartquist responded 56 homes were refurbished but not all in the Town of Gilbert. Mr. Heartquist mentioned the location of the homes completed: 3 in Chandler, 2 in Mesa, 1 in Queen Creek and 12 in the Gilbert Planning Area. Chairman Haug asked if this is the first time Gilbert Cares is requesting CDBG funds. Mr. Heartquist replied yes and the CDBG monies would provide the administrative capabilities for Gilbert Cares to administer the program.

Commission Valentine stated that he recalls Gilbert Cares had a problem expending grant money that was allocated to the organization. Mr. Heartquist responded that there was a miscommunication with the contracts. He stated that the 1999 contract had no stipulation about using the funds for county island homes but the following year had a stipulation that added to the confusion with all parties involved.

A discussion took place to clarify the figures in the expense budget for staffing/rent & utilities/phone, fax, postage/insurance & legal fees is a yearly cost or a one time only cost. Mr. Heartquist responded the figures are yearly cost to operate and administer program by Gilbert Cares.

Chairman Haug asked why it took so long to apply for a tax - exempt status. Mr. Heartquist was not aware that one of the criteria for receiving CDBG funds is that the organization must have tax - exempt status. Chairman Haug had a concern funding an organization with CDBG funds before the tax - exempt process is finalized. Chairman Haug suggested a possibility of considering Gilbert Cares in Round 2.

Mr. Chuck Maas with Central Arizona Shelter Services, Inc. (CASS) gave an overview of the organization and what the shelter is requesting. CASS is requesting CDBG funding to provide a more inviting first impression upon entry to the facility with a simple but well - furnished intake area by purchasing counters, cabinets, tables and chairs. Currently, the intake/lounge area consists of older donated deteriorated furnishing which are uninviting and do not adequately service the area. CASS has requested funds from surrounding communities for various projects. Mr. Maas did indicate some homeless persons from Gilbert do utilize the Shelter. Mr. Maas reported the Shelter would receive $3,200 in in - kind carpet, paints and supplies as well as labor to paint and lay carpet.

Community Development Specialist Harris - Morgan of the Town of Gilbert presented details of the Gilbert Homes Septic to Sewer Project that involves 100 homes. An overall estimated cost for the project is $1,300,000. Funds would be used to assist low - moderate income families residing in the Heritage District to convert from a septic system to sewer. The area involved is east of Palm Street, north of Washington Avenue, west of Burk Street and south of Cullumber Avenue. The streets involved are Cullumber Avenue, Park, Avenue, Bruce Road, Linda Lane, Washington Street and Ironwood Street. Community Development Specialist Harris - Morgan mentioned that the County has been issuing citations to these residents for emptying gray water into the street and on their property. Two families have applied to CSA Emergency Home Repair program to have the septic pumped out. He said this was a temporary fix to problem.

Staff informed the Commission the approximate cost per household to install the conversion is $13,000. Community Development Specialist Harris - Morgan stated the town has calculated 54 families from the neighborhood might apply for assistance. The total amount needed is $702,000. The Town is requesting a commitment of 2002 - 03 and 2003 - 04 CDBG funds in the amount of $351,000 for each year.

Chairman Haug inquired if any guidelines were established to determine eligibility whether strictly based on income or would family size play into the formula. Community Development Specialist Harris - Morgan replied the Town would address the issue. Commissioner Valentine asked how the entire program would be affected if a lesser amount was allocated. Community Development Specialist Harris - Morgan responded that the allocation could be done for a lesser amount but it would have to be over three years instead of two.

Community Development Specialist Harris - Morgan explained the Town Administrative and Planning request. He indicated the request is for $93,700 that would include the hiring of an additional part - time person to assist with the administering of CDBG programs and to relieve some of the duties currently performed by Community Development Specialist Harris - Morgan. Community Development Specialist Harris - Morgan named some of the activities he is responsible for to ensure the Town’s continued participation in the CDBG program.

Chairman Haug proceeded with presentations by representatives for HOME Investment Partnership funds.

Ms. Jeanne Vega of Community Services of Arizona (CSA) gave a summary of the first - time homebuyers program. The single - family property is offered to first - time low or moderate - income eligible household at a sales price affordable to them. Affordability is obtained by providing the buyer with down payment, closing costs, and gap financing in the form of a zero - interest, payment - deferred, second liens. The homebuyer is asked to contribute $1,000 of own funds towards the endeavor. Clients are required to go through a homebuyer education & counseling program in which they obtain knowledge about the different types of financial institutions, products, and services available. It is a very comprehensive program.

Ms. Vega stated the down payment provided by Community Services of Arizona would be returned upon the sale of the home so they can assist another first - time homebuyer. This is creating long - term affordable housing.

Mr. Paul Heartquist of Gilbert Cares stated the organization is also requesting $131,000 in HOME funds, which would be used to refurbish homes in the Town of Gilbert. Mr. Heartquist stated some of the work cannot be done by volunteers but would have to hire licensed professional services such as plumbing, roofers, electricians, etc. Mr. Heartquist covered the organization and scope during the presentation for CDBG funds for Gilbert Cares.

Community Development Specialist Harris - Morgan explained the Town Administrative funds. The Commission discussed in depth the accounting practices for the Town and federal program by asking how the hours are calculated, reimbursed, etc.
Chairman Haug asked the Commission if there were any questions or if they had any recommendations.

Commissioner Valentine began the discussion by starting with the CDBG program. He made a comment about each application:
- Habitat for Humanity is an excellent program but it only assists one family.
- The sewer program has some issues that must be resolved but it would help approximately 100 families. The Commission and Town have invested already in the district and it is something the Commission is trying to achieve.
- CASS is a worthwhile program but is in Phoenix and even though they are not requesting a large amount, would like to keep the money in Gilbert.
- The Town Admin/Planning is disproportionate and does not believe 20% is necessary but maybe 10%. Stated Town could handle the difference.
- Has a problem with Gilbert Cares spending the funds in the County Island, as it is not part of the Town of Gilbert.

Commissioner Valentine recommended CDBG funds be allocated as follows:
- CSA Emergency/Minor Repairs, $50,000
- East Valley Habitat for Humanity, $0
- CSA Senior Meals, $12,000
- CSA Homeless Prevention, $20,000
- CASS Intake/Lounge Furnishings, $0
- Town - Gilbert HOMES Sewer, $351,000
- Town - Admin. and Planning, $64,000

Commissioner Valentine agreed with staff recommendations for allocating the HOME Funds. Chairman Haug concurred with Commissioner Valentine’s recommendation. He said that Gilbert Cares is a worthy organization but cannot recommend funding at this time due to the lack of tax - exempt status 501 (c) (3). Gilbert Cares should apply for Round 2 funding and change application to provide 100% in the Town of Gilbert to be served.

A MOTION was made by Chairman Haug, seconded by Commissioner Thomson to recommend the Town Council approve the 2002 - 03 Community Development Block Grant and HOME Investment Partnership allocations as presented: CDBG funds allocated to Community Services of Arizona?Emergency/Minor Repair, $50,000; Community Services of Arizona?Senior Meals, $12,000; Community Services of Arizona?Homeless Prevention, $20,000;Town?Gilbert HOMES Sewer, $351,000, and Town?Admin. and Planning, $64,000. HOME Funds allocated to Community Services of Arizona?First - time Home Buyer Program, $123,637 and Town?Admin, $7,500.

Chairman Haug thanked all the applicants for their time and presentation. He apologized to the organization that did not receive funding this time but recommend they apply for Round 2.

Community Development Specialist Harris - Morgan indicated that staff recommendation to Town Council might be different than what the Commission has recommended.

5.        Request from 3 persons for an exception to HUD Conflict of Interest Regulations
Community Development Specialist Harris - Morgan stated that Federal regulations for the Community Development Block Grant and the HOME Investment Partnership include conflict of interest. He stated that these federal regulations are more restrictive than current state or local laws but do allow for exceptions. Community Development Specialist Harris - Morgan indicated that public disclosure is required when there is a request for an exception to the federal conflict regulations and this public hearing is being used to make the public disclosure.

Community Development Specialist Harris - Morgan mentioned that the Town received three (3) requests from individuals who would like to participate in the federally funded programs operated by or funded through the Town of Gilbert. The Town’s attorney has been contacted and in her opinion all three cases may request an exception to the federal conflict regulations.

Community Development Specialist Harris - Morgan acknowledged the following individuals who are requesting an exception:
1.        Sandi Yoder, employee of Community Services of Arizona, would like to participate in the First Time Homebuyer Program. Because she is employed by the organization administering the program, federal regulations state that there is a conflict. An exception is being requested due to the fact that she will not gain any more benefit than any other income eligible client and Ms. Yoder has no responsibilities related to CSA’s Homebuyer program.
2.        Joseph Samuel Bromert, past member of the Redevelopment Commission, has applied to the Commercial Renovation Program. As a member of the Commission who’s term ended less than one year ago, federal regulations state that there is a conflict. An exception is being requested due to the fact that he will not gain any more benefit than any other eligible applicant. Mr. Bromert while serving on the Commission did not participate in discussions or decisions pertaining to the Commercial Renovation Program and Mr. Bromert has no responsibilities regarding the Commercial Renovation Program.
3.        Mary Ellen Fresquez, member of the Redevelopment Commission, has applied to the Town’s Commercial Renovation Program. As a member of the Commission, federal regulations state that there is a conflict. An exception is being requested due to the fact that she will not gain any more benefit than any other eligible applicant and that the Commercial Renovation Program was in existence before she was appointed to serve as a member of the Commission. Ms. Fresquez has no responsibilities regarding the Commercial Renovation Program.

Commissioner Valentine stated he was delighted that applications were received for the Commercial Renovation Program. Community Development Specialist Harris - Morgan responded that a total of four applications were received and will be meeting with the property owners sometime during the next week or two. He did state he expects a lengthy process for the two individuals who are requesting an exception. Community Development Specialist Harris - Morgan announced that any funds remaining would be made available for reallocation.

COMMUNICATIONS
6.        Report from Chairman on current and future events
Chairman Haug gave a reminder that Town Council will meet on March 5th and encouraged Commission members to attend since the Water Tower issue is on the agenda.

7.        Report from Community Development Specialist on current and future events
Community Development Specialist Harris - Morgan reported on the following:
- The senior housing project is going to Town Council on March 5th for approval to continue the process.
- The Community Development Block Grant and HOME Investment Partnership recommendations to be presented to Town Council on March 5th. He felt it would be appropriate for the Commission to attend and give support for the Commission’s recommendations..
- The Hale Centre Theatre owner is requesting minor changes to the site plan. Owner to adjust seats by 10% and looking to accommodate more handicap seating. Project would come before Commission for approval once finalized.

ADJOURNMENT
A MOTION was made by Commissioner Valentine, seconded by Vice Chairman Fresquez to adjourn the meeting. The meeting was adjourned at 9:25 p.m.

ATTEST:

Thomas Haug, Chairman

Elizabeth A. Stupski, Recorder

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