BOARD OF DIRECTORS MEETING Minutes November 16, 2022
A. Organizational Matters
I. Call meeting to order – Meeting called to order at 11:37
II. Attendance – L. Daily, J. Surace, A. Niles, A. Morales, D. Potack, A. Church (virtual), Others Present: J. Welles (Exec. Dir.) A. Morgan, J. Sidd, E. Talbott
Absent: T. Venning, I. Hall, R. Monteverde
III. Review & Approval of October 2022 Minutes – J. Surace motioned to approve. A. Morales seconded it. All approved via roll call, none opposed
IV. Review of October 2022 Financial Report review and approval – J. Surace motioned to approve. A. Niles seconded it. All approved via roll call, none opposed
V. Healthcare benefits – J. Welles requested an increase in health care benefits to employees to $650 per month from $500. Total cost went up 30% since 2018. Dental to be added. D. Potack motioned to approve, J. Surace seconded it. All approved via roll call, none opposed.
B. Property Related Matters
I. New development/in progress:
1. Legacy City funding- homeownership project-update – J. Welles Moving forward with 59, 63, 136 Lander, & 39 S. Miller. Ironing out details with the lender CPC and grants from HCR and Orange County Community Development. Anticipating closing on construction financing by early 2023.
2. 37 Chambers- Church of Holy Deliverance acquisition update – Subdivided into 35, 37, 39 Lander. Almost ready to close. Encroachment issues need to be resolved with fence & gravel. Goal is to create multiple homeownership opportunities (ex. coop, condo, town houses). A. Church pointed out that a subdivision combining lots would be required if a single building is proposed. Each building has to be on its individual lot.
3. 143 Washington update – Original proposal included new construction on corner lot and integrated with existing rowhouse to create 14 units of a mix of supportive housing units and market rate rentals and office space. After considering reducing the project drastically, BJH is now going to continue with the original plan and is completing some value engineering and changing contractors. The HCR funding has also been increased due to changes in the Small Building PLP subsidy limits. Board would like BJH Advisors to attend future meeting. A. Church suggests assessing risk of accepting unbalanced proposals with too many competitive funding sources for future RFA’s. D. Potack recommended we request a completion and closing plan. Create some urgency: milestone dates and request update on funding sources, and construction uses.
4. 104 Washington update – Demolition completed. Construction estimates went up 40%, interest rates have gone up as well creating a $1 million gap in financing. Mistral is working on alternatives to value engineer, increased grant funding committed by Orange County Home. Secured PILOT and submitted building permit application in May. Also expecting more funds from HCR due to subsidy increases in program. . They may need to return to ARC with building design changes.
5. Notes on Contract of Sale to individuals and use of Executive Session from John Sidd – concern that deliberation involving review of individuals seeking to buy property from the Land Bank is occurring in Executive Session. It is perfectly appropriate to conduct an Executive Session to discuss the financial or credit history of a particular individual or corporation. However, the ultimate decision should probably be done in open session. Executive Session is always a discretionary decision it’s not required.
II. Sales/NCLB Development Projects:
1. House to Home: 150 Lander –applicants to be reviewed and purchaser selected. J. Welles & staff suggested Johan Rodriguez due to highest score on application, second runner up is Malachy Cleary, followed by James Malchow. Board requests that attorney verify that the buyer’s VA loan is compatible with Land Bank restrictions. D. Potack motioned to approve sale of 150 Lander to Johan Rodriguez, A. Church seconded it. All approved via roll call, none opposed.
2. 34 and 38 Lander - MLS listings – Both buildings sold “as-is” on 10/20/22 to separate purchasers. 34 Lander sold for $127,000 and 38 Lander sold for $90,000, funds are unrestricted. Expenses for sale incurred include closing costs and title charges. There are no affordability restrictions but projects to be completed in 24 months.
C. Other – D. Potack requests property inventory list refresh
Poll to be sent for a better meeting time if necessary/December 2022 meeting
Meeting Adjourned at 12:27pm
D. Next Meeting: December 21, 2022 at 11:30am (meeting was later postponed to January 18, 2023 since no action items were pending)