The URL can be used to link to this page

Home My WebLink About2022_05_24 CC PKTCity Council City of Brookings Meeting Agenda Brookings City Council Brookings City & County Government Center 520 3rd St., Suite 230 Brookings, SD 57006 Phone: (605) 692-6281 "We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability and pursues a complete lifestyle. We are committed to building a bright future through dedication, generosity and authenticity. Bring your dreams!" Council Chambers6:00 PMTuesday, May 24, 2022 The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 6:00 PM REGULAR MEETING 1. Call to Order / Pledge of Allegiance. 2. Record of Council Attendance. 3. Action to approve the agenda. 4. Open Forum. At this time, any member of the public may request time on the agenda for an item not listed or to make a brief announcement or invitation. Items will be scheduled at the end of the meeting. Individuals are asked to state their name and address for the record. 5. Consent Agenda: Action: Motion to Approve, Request Public Comment, Roll Call Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion. At the request of any one Council Member or the City Manager, an item may be removed from the Consent Agenda and placed on the regular agenda whenever additional discussion on an item is necessary. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Action to approve City Council meeting minutes.ID 22-02275.A. 5/10/2022 Minutes 5/17/2022 Minutes Attachments: Page 1 City of Brookings May 24, 2022City Council Meeting Agenda Action to appoint the Deputy Mayor.ID 22-02265.B. Action on City Council Ex-Officio Appointments.ID 22-02205.C. Action on Annual Malt Beverage Alcohol License Renewals.ID 22-02255.D. Malt License RenewalsAttachments: 6. Presentations/Reports: 7. Ordinance First Readings: No vote is required on the first reading of an Ordinance. The title of the Ordinance is read. Public Comment and Council discussion is permitted. The date for the second reading or public hearing is announced. Introduction and First Reading on Ordinance 22-019, an Ordinance Authorizing Budget Amendment No. 6 to the 2022 Budget. Second Reading and Action: June 14, 2022. ORD 22-0197.A. Memo Ordinance Attachments: Introduction and First Reading on Ordinance 22-020, an Ordinance to Rezone a Portion of Wilbert Square Addition from Planned Development District to Residence R-3 Apartment District. Public Hearing and Action: June 14, 2022. ORD 22-0207.B. Memo Ordinance Legal Notice - Planning Commission Planning Commission Minutes Location Map Zoning Map Future Land Use Map Petition to Rezone Attachments: Introduction and First Reading on Ordinance 22-021, an Ordinance to Rezone Lots 1 - 5 in Block 12 of Folsom Addition from Residence R-3 Apartments / Mobile Homes / Manufactured Housing District to Business B-3 Heavy District. Public Hearing and Action: June 14, 2022. ORD 22-0217.C. Page 2 City of Brookings May 24, 2022City Council Meeting Agenda Memo Ordinance Legal Notice - Planning Commission Planning Commission Minutes Location Map Zoning Map Future Land Use Map Petition to Rezone Attachments: Introduction and First Reading on Ordinance 22-022, an Ordinance Establishing a Moratorium on the Installation of any Electronic Message Display Signs or Issuance of any Electronic Message Display Sign Permits Pending Further Study. Public Hearing and Action: June 14, 2022. ORD 22-0227.D. Memo Ordinance Attachments: 8. Contracts/Change Orders: Action on Resolution 22-043, a Resolution Awarding Bids for the Purchase, Delivery and Erection of a Multi-Stack Fire Training Facility for the Brookings Fire Department. RES 22-0438.A. Memo Resolution Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Action on Resolution 22-045, a Resolution to approve the purchase of a 2022 Fire Engine from Toyne, Inc., Breda, IA; through the Houston-Galveston Area Council contract #FS12-19A. RES 22-0458.B. Memo Resolution Appendix Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Action on Resolution 22-046, a Resolution Awarding Bids on the Hay Land Lease located in the East ½ of Aamot Addition (Landfill). RES 22-0468.C. Memo Resolution Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9. Public Hearings and Second Readings: Page 3 City of Brookings May 24, 2022City Council Meeting Agenda Second Reading and Action on Ordinance 22-017, an Ordinance Authorizing Budget Amendment No. 5 to the 2022 Budget. ORD 22-0179.A. Memo Ordinance Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Public Hearing and Action on Ordinance 22-018, an Ordinance Amending Ordinance Section 62-86 providing for Duty of Owner and Designation of Vegetation Management Practices in the City of Brookings, South Dakota. ORD 22-0189.B. Memo Ordinance - Clean Ordinance - Marked Legal Notice Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call Public Hearing and Action on a request for an On-Off Sale Malt License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager. Location: 6th Street and 22nd Avenue. Legal Description: portion of SE ¼ of Section 24-T110N-R50W. ID 22-02199.C. Memo Legal Notice Location Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call Public Hearing and Action on Resolution 22-042, a Resolution authorizing the City Manager to enter into an Operating Agreement for an On-Off Sale Wine License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager. Location: 6th Street and 22nd Avenue. Legal Description: portion of SE ¼ of Section 24-T110N-R50W. RES 22-0429.D. Memo Resolution Operating Agreement Legal Notice Location Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 10. Other Business: Action on Resolution 22-047, a Resolution Authorizing Waiver of Permit Fees Related to Storm Damage in the City of Brookings, South Dakota. RES 22-04710.A. Memo Resolution Attachments: Page 4 City of Brookings May 24, 2022City Council Meeting Agenda Action: Motion to Approve, Request Public Comment, Roll Call Discussion and Possible Action to Authorize Funds for Workforce Housing Project. ID 22-022910.B. Memo Workforce Housing Concept South Dakota Housing Opportunity Fund Attachments: Possible Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings Progress Report.ID 22-023111. 12. City Council member introduction of topics for future discussion. Any Council Member may request discussion of any topic at a future meeting. Items cannot be added for action at this meeting. A motion and second is required which states the topic, requested outcome, and time frame. A majority vote is required. 13. Adjourn. Brookings City Council: Oepke G.Niemeyer, Mayor; Nick Wendell, Deputy Mayor Council Members Wayne Avery, Joey Collins, Brianna Doran, Holly Tilton Byrne, Bonny Specker Brookings City Council Staff: Paul M. Briseno, City Manager Steven Britzman, City Attorney Bonnie Foster, City Clerk Public Comment is limited to a maximum of three minutes per person during the meeting. Individuals are asked to give their name and address for the record. Public Comment may be submitted prior to the meeting: 1) Email comments to the City Clerk (bfoster@cityofbrookings-sd.gov), 2) participate via Zoom, or 3) via eComment (https://cityofbrookings.legistar.com/Calendar.aspx ). Those who provide comments in any manner should understand their comments will become part of the official record and subject to review by all parties and the public. Meetings are broadcast live and recorded. Go to www.cityofbrookings-sd.gov for more information. Government Channel 9 Rebroadcast Schedule: Wednesday 1:00 pm / Thursday 7:00 pm / Friday 9:00 pm / Saturday 1:00 pm Upon request, accommodations for meetings will be provided for persons with disabilities. Please contact Susan Rotert, City Human Resources Director and ADA Coordinator at (605) 692-6281 at least three (3) business days in advance of the meeting. Page 5 City of Brookings City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0227,Version:1 Action to approve City Council meeting minutes. Attachments: 05/10/2022 City Council Minutes 05/17/2022 City Council Minutes City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ Brookings City Council May 10, 2022 (unapproved) The Brookings City Council held a meeting on Tuesday, May 10, 2022 at 5:30 PM, at the Brookings City & County Government Center, Chambers, with the following City Council members present: Mayor Oepke Niemeyer, Council Members Nick Wendell, Joey Collins, Holly Tilton Byrne, Wayne Avery, Brianna Doran, and Bonny Specker. City Attorney Steve Britzman, City Manager Paul Briseno, and City Clerk Bonnie Foster were also present. 5:30 PM REGULAR MEETING Oath of Office and Certificates of Election. Newly Elected City Council Members took their Oath of Office and Mayor Niemeyer presented them with their Certificates of Election. New City Council Members are: Bonny Specker (3-year City Council Term - term expires 5/1/2025), Holly Tilton Byrne (3-year City Council Term - term expires 5/1/2025), Wayne Avery (2-year City Council Term - term expires 5/1/2024), and Brianna Doran (1-year City Council term - term expires 5/1/2023). Agenda. A motion was made by Council Member Wendell, seconded by Council Member Collins, that the agenda be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Executive Session. A motion was made by Council Member Tilton Byrne, seconded by Council Member Wendell, to enter into Executive Session at 5:39 p.m. as per SDCL 1-25-2.3, for purposes of consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters, and as per SDCL 1.25.2.5, for purposes of discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, when public discussion may be harmful to the competitive position of the business. Present: City Council, City Manager, Assistant City Manager, City Attorney, City Clerk, and Tim Reed, BEDC Executive Director. The motion carried by a unanimous vote. A motion was made by Council Member Tilton Byrne, seconded by Council Member Wendell, to exit Executive Session at 5:56 p.m. The motion carried by a unanimous vote. Open Forum. Mary Beth Fishback, provided an update on the Ivy Center, the increased community needs, and the increase in space and personnel to meet community needs. A request will be forthcoming for additional funding. Angie Boersma, architect and board member, provided additional information on the proposed building expansion. Zeno Wicks also commented on the needs of the college student population, and teaching them proactivity. Carla Gatzke, Chair of the Brookings Behavioral Health Board, thanked the council for their consideration and support of the project. Consent Agenda. A motion was made by Council Member Collins, seconded by Council Member Wendell, that the consent agenda be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Specker, Doran, Wendell, Tilton Byrne, Collins, and Avery. A. Action to approve the April 26, 2022 and May 5, 2022 City Council Minutes. B. Action on Resolution 22-041, a Resolution Declaring Surplus Property. Resolution 22-041 Declaring Surplus Property Whereas, the City of Brookings is the owner of the following described equipment formerly used at the City of Brookings: Park, Recreation & Forestry Dept.: H-2111 Center section Scoreboard: Clock, Score & Period w/team name message centers (TNMC’s) (OA-1237-0369, Serial #1157); 2 - H2102 Player/Penalty section @2 (OA 1237-0270, Serial # 1171 and #1172); 2 - H2103 Shots on Goal section @2 (OA-1237-0268, Serial #1099 and 1100); Allsport® 5000 control console with hand held start/stop switch. Police Dept.: Remarkable Tablet (Serial # RM110-120-93665) Whereas, in the best financial interest, it is the desire of the City of Brookings to dispose of as surplus property; and Whereas, the City Manager is hereby authorized to sell or dispose of said surplus property. Now, Therefore, Be It Resolved by the governing body of the City of Brookings, SD, that this property be declared surplus property according to SDCL Chapter 6-13. Report: 1st Quarter 2022 CFO Report. Chief Financial Officer, Erick Rangel, presented the 1st Quarter Financial Report to the City Council and members of the public. Resolution 22-038. A motion was made by Council Member Avery, seconded by Council Member Wendell, that Resolution 22-038, a Resolution Rejecting Bids for the High Speed Rotary Snow Blower, Brookings Regional Airport, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Resolution 22-038 Rejecting Bids on the High Speed Rotary Snow Blower, Brookings Regional Airport Bid Whereas, the City of Brookings opened bids for the High Speed Rotary Snow Blower, Brookings Regional Airport on Tuesday, March 29, 2022 at 1:30 pm at the Brookings City & County Government Center; and Whereas, the City of Brookings received four bids; and Whereas, the bids did not meet the needs of the Brookings Regional Airport. Now, Therefore, Be It Resolved that all of the bids for this project be rejected. FIRST READING – Ordinance 22-017. An introduction and first reading was held on Ordinance 22-017, an Ordinance Authorizing Budget Amendment No. 5 to the 2022 Budget. Second Reading and Action: May 25, 2022. FIRST READING – Ordinance 22-018. An introduction and first reading was held on Ordinance 22-018, an Ordinance Amending Section 62-86 of the Code of Ordinances of the City of Brookings, South Dakota, and Providing for Duty of Owner and Designation of Vegetation Management Practices in the City of Brookings, South Dakota. Public Hearing and Action: May 25, 2022. Resolution 22-031. A public hearing was held on Resolution 22 -031, a Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners; 2022 -01SWR Concrete Maintenance Project. A motion was made by Council Member Wendell, seconded by Council Member Tilton Byrne, that Resolution 22-031 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Resolution 22-031 - Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners; 2022-01SWR Concrete Maintenance Project Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. It is hereby determined that sidewalk repairs or installation is necessary abutting the parcels and lots of land in the City described in the Notice to Property Owners attached to this Resolution and marked as 2022-01SWR Concrete Maintenance Project. 2. Such sidewalks shall be installed to the width and of the materials prescribed by Chapter 74, “Streets, Sidewalks and other Public Places” and Article V. “Sidewalks”, and to the grade and in accordance with the Plans and Specifications prepared in the office of the City Engineer. 3. The method of apportionment of benefits is as follows: such assessments, unle ss paid within thirty (30) days after the date of mailing of a statement of account by the City, shall be collected by the City in accordance with the procedure for Plan One in Section 9-43-102, South Dakota Compiled Laws of 1967, as amended, with interest of 10% on the unpaid balance. Assessments amounting to less than $300.00 shall be paid in one payment. 4. The City has caused a copy of the Resolution and a Notice to Property Owners to be mailed to each property owner by certified mail. Resolution 22-032. A public hearing was held on Resolution 22 -032, a Resolution Determining the Necessity of Alley Assessment Project No. 2022-04STA, from 3rd Street to 4th Street connecting 8th Avenue and 9th Avenue. A motion was made by Council Member Wendell, seconded by Council Member Collins, that Resolution 22-032 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Resolution 22-032 - Resolution Determining Necessity for Alley Assessment Project 2022-04STA Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. It is hereby determined the necessity of paving the alley between 3 rd Street and 4th Street connecting 8th avenue and 9th Avenue. 2. The general nature of the improvement is above set forth and reference for details is hereby made to the drawings and specifications prepared by the City Engineer and on file with the City Clerk. 3. The material to be used is asphalt for paving of the alley: Asphalt pavement on a stabilized crushed gravel base course. 4. The improvement is substantially uniform. The estimated cost per linear foot of alley for paving with asphalt pavement on crushed gravel base course to be paved to a width of 18 feet is $152 per foot of alley or $76 per front foot per side of alley. 5. A description of classes of lots to be assessed is as follows: All assessable lots and tracts of land lying contiguous to the alley hereinabove described. 6. The method of apportionment of benefits is as follows: The cost thereof to be assessed against all assessable lots and tracts of land according to the benefits determined by the governing body to accrue to all such lots and tracts from the construction of the improvement. The assessment may be paid over a five-year period and the interest to be charged on the unpaid balance shall be 10%. 7. The above-described improvement shall be hereinafter referred to as Alley Assessment Project No. 2022-04STA, which shall be deemed a description of the improvement of the alley as hereinabove set forth. Ordinance 22-012. A motion was made by Council Member Tilton Byrne, seconded by Council Member Wendell, that Ordinance 22-012, an Ordinance Amending Sections 6- 141, 6-146, and 6-149 of the Code of Ordinances of the City of Brookings, South Dakota, and Pertaining to Commercial Pedal Cars in the City of Brookings, South Dakota, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Temporary Alcohol Application. A public hearing was held on a Temporary Alcohol Application from the Brookings Cubs Baseball Group for a temporary alcohol license to operate within the City of Brookings, South Dakota for the 2022 Brookings Cubs Baseball Season to be held on at Bob Shelden Field, 530 Elm Avenue. A motion was made by Council Member Tilton Byrne, seconded by Council Member Wendell, that the Temporary Alcohol Application be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Resolution 22-039. A public hearing was held on Resolution 22 -039, a Resolution Creating Boundaries of Tax Increment District Number 12. A motion was made by Council Member Tilton Byrne, seconded by Council Member Specker, that Resolution 22-039 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Resolution 22-039 - Resolution Providing for the Creation of Tax Increment Financing District Number 12, City of Brookings Whereas, the Planning Commission has recommended the District Boundaries for Tax Increment Financing District Number 12, City of Brookings, and has recommended its creation; and Whereas, the City of Brookings has the powers, pursuant to SDCL 11-9-2, to create Tax Increment Financing District Number 12, City of Brookings, and to define its boundaries. Now, Therefore, It Is Hereby Resolved: 1. Authority and Declaration of Necessity. The City of Brookings declares the necessity for the creation of Tax Increment Financing District Number 12, City of Brookings (hereinafter sometimes referred to as the “District”), pursuant to SDCL Chapter 11-9. Further, the City finds that the improvement of the area within the District is likely to enhance significantly the value of substantially all of the other real property in the District and is necessary for economic development within the city. 2. Findings of Economic Welfare. The City Council makes the following findings with regard to economic welfare: a. More than 50% of the property in the District will stimulate and develop the general economic welfare and prosperity of the state through the promotion and advancement of industrial, commercial, manufacturing, agricultural, or natural resources development; and b. Improvements to the District will significantly and substantially enhance the value of all property within the District; and c. The aggregate assessed value of the District plus the tax incremental base of all other existing Districts in the city does not exceed Ten (10%) percent of the total assessed valuation in the City. 3. Findings of Maximum Percentage of Tax Increment Financing Districts. The aggregate assessed value of the taxable property in the District, plus all other tax incremental districts, does not exceed 10 percent of the total assessed valuation of the City of Brookings. 4. Creation of District. There is hereby created, pursuant to SDCL Chapter 11-9, Tax Increment Financing District Number 12, City of Brookings. The District is hereby created on the day this Resolution becomes effective, which shall be 20 days after publication of this Resolution. 5. Designation of District boundaries. The District shall be located with the boundaries of the following described real property: Lot 1, Front Street Addition and abutting roads rights-of-way, City of Brookings, Brookings County, State of South Dakota 6. Creation of Tax Incremental Fund. There is hereby created, pursuant to SDCL 11-9- 31, a City of Brookings Tax Increment Financing District Number 12 Fund, which shall be a segregated asset account. All tax increments collected pursuant to Tax Incremental District Number 12 shall be deposited into the Tax Increment Financing District Number 12 Fund. All funds in the Tax Increment Financing District Number 12 Fund shall be used solely for those purposes expressly stated and reasonably inferred in SDCL Chapter 11-9. Resolution 22-040. A motion was made by Council Member Tilton Byrne, seconded by Council Member Wendell, that Resolution 22-040, a Resolution on Adoption of Tax Increment District #12 Project Plan, be approved. Public Comment: Clint Powell and Angie Boersma. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Resolution 22-040 - Resolution Approving Tax Increment Financing District Number 12 Whereas, the Brookings Planning Commission has recommended the approval of the Tax Increment Financing District Number 12 Project Plan, City of Brookings; And Whereas, the City Council finds that all requirements have been met in order to approve said Tax Increment Plan. Now Therefore, Be It Resolved by the City Council 1. Approval of Project Plan. The Project Plan, a copy of which is on file with the City Finance Office is hereby approved. 2. Findings. The City Council finds that the Project Plan is feasible and that it conforms to the City’s Master Plan. All findings made in the Tax Increment Financing Project Plan are included herein by reference. 3. Effective 20 Days after Publication. This resolution shall become effective 20 days after publication and absent any challenge at law all findings and conclusions in the Tax Increment Financing Project Plan for Tax Increment Financing District Number 12, City of Brookings shall be final. Adjourn. A motion was made by Council Member Tilton Byrne, seconded by Council Member Wendell, that the meeting be adjourned at 7:26 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS __________________________ Oepke G. Niemeyer, Mayor ATTEST: __________________________ Bonnie Foster, City Clerk Brookings City Council May 17, 2022 (unapproved) The Brookings City Council held a Study Session on Tuesday, May 17, 2022 at 5:30 PM, at the Brookings City & County Government Center Chambers with the following City Council members present:Mayor Oepke Niemeyer, Council Members Nick Wendell, Joey Collins, Holly Tilton Byrne, Wayne Avery, Brianna Doran, and Bonny Specker. City Attorney Steve Britzman, and City Clerk Bonnie Foster were also present. City Manager Paul Briseno was absent. Agenda. A motion was made by Council Member wendell, seconded by Council Member Collins, that the agenda be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Clothing / Fabric Sustainability. Albert Patin, Vice Chair of the Sustainability Council, presented a report to the City Council and members of the public on textile and clothing apparel sectors and how the industry and the current "take, make, dispose" model of production and consumption has reinforced negative environmental impacts which potentially place address stress on communities. (Council Member Tilton Byrne arrived 5:38 p.m.) 2022 Capital Improvement Projects. Charlie Richter, City Engineer, presented to the City Council and members of the public the 2022 Capital Improvements Plan for the Engineering and Parks Departments. The City has a new GIS driven web page (storybook), which identifies the numerous capital projects throughout the City, and associated costs for those projects. Special Assessments Policy. Charlie Richter, City Engineer, presented to the City Council and members of the public, the proposed special assessment policy which will address financial terms for all special assessments not addressed by state statute. American Rescue Plan Act Funding. Jacob Meshke, Assistant City Manager, and Erick Rangel, Chief Financial Officer, presented to the City Council and members of the public, information on the City's $4.4 million allocation from the American Rescue Plan Act (ARPA). The City received the first deposit of $2.2 million in September 2021 and will receive the second deposit in September 2022. Findings of surveys conducted by Baker Tilly and Polco provided a high-level overview of the key needs of the community as identified by targeted community stakeholders, business owners,and residents. City Council Member Introduction of Topics for Future Discussion. A motion was made by Council Member Wendell, seconded by Council Member Collins, to consider a Resolution to suspend permitting fees for 180 days, for all repairs from the June 12th storm on the next council agenda. The motion carried by the following vote: Yes: 7 - Niemeyer, Wendell, Collins, Tilton Byrne, Avery, Doran, and Specker. Adjourn.A motion was made by Council Member Tilton Byrne, seconded by Council Member Doran, that this meeting be adjourned at 6:28 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS, SD __________________________ Oepke G. Niemeyer, Mayor ATTEST: __________________________ Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0226,Version:1 Action to appoint the Deputy Mayor. Summary: Mayor Niemeyer is recommending Council Member Nick Wendell as the Deputy Mayor for a one- year term, ending June 1, 2023. The City Charter requires the City Council to annually appoint a Deputy Mayor. The Deputy Mayor’s duties are to conduct City Council Meetings in the absence of the Mayor and to conduct ceremonial duties when the Mayor is not available. This is a one-year term ending June 1, 2023. City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0220,Version:1 Action on City Council Ex-Officio Appointments. Summary: Mayor Niemeyer recommends the following appointments: ·Brookings County & City Joint Jurisdictional Committee Mayor Oepke Niemeyer Council Member Holly Tilton Byrne ·Brookings Health System Board of Trustees Council Member Joey Collins Council Member Brianna Doran ·Brookings Municipal Utilities Council Member Wayne Avery Council Member Bonny Specker ·BEDC Board Council Member Nick Wendell ·BEDC Investment Committee Mayor Oepke Niemeyer Council Member Wayne Avery Council Member Holly Tilton Byrne City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0225,Version:1 Action on Annual Malt Beverage Alcohol License Renewals. Summary: Enclosed for Council review and action are the On-Off Sale Malt Alcohol License renewals for fiscal year 7/1/2022 to 6/30/2023. There are also some Video Lottery renewals, for those licenses which are associated with the business’s On-Off Sale Malt License. Following Council action, all applications will be forwarded to the SD State Department of Revenue for final action and issuance of licenses. SDCL 35-2-1.2. Applications submitted to local governing body--Fee--Approval or disapproval. Any applicant for a new retail license, except as set forth in § 35-2-1.1, or the transfer of an existing license shall submit an application to the governing body of the municipality in which the applicant intends to operate, or if outside the corporate limits of a municipality, to the governing body of the county in which the applicant intends to operate. The applicant shall submit the required fee with the application. The governing body may approve the application for a new retail license or the transfer of an existing license if the governing body considers the applicant suitable to hold the license and the proposed location is suitable. The governing body may disapprove an application for a new retail license or the transfer of an existing license issued under subdivision 35-4-2(4), (6), or (13) if: 1) The approval of the application permits a person, corporation, or business entity to possess more than one-third of the licenses available to be issued in the jurisdiction; and 2) The governing body determines that possession of more than one-third of licenses available is not in the public interest. Any application for the reissuance of a retail license may be approved by the municipal or county governing body without a hearing unless in the past year the licensee or one or more of the licensee's employees have been subjected to a criminal penalty for violation of the alcoholic beverage control law or the license has been suspended. Source: SDC 1939, §§ 5.0206, 5.0305; SL 1945, ch 21, § 1; SL 1951, ch 11; SDC Supp 1960, § 5.0204 (14); SL 1961, ch 14; SL 1964, ch 9; SL 1965, ch 12; SDCL §§ 35-4-32, 35-4-33, 35-6-15; SL 1971, ch 211, § 13; SL 2008, ch 37, § 140; SL 2011, ch 171, § 1; SL 2017, ch 164, § 1; SL 2018, ch 213, § 12. Recommendation: Staff recommends approval. Attachments: License Renewals City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ Malt License Renewals On-Off Sale Malt (retail): BP of Brookings, 2420 6th St., Suite A and B Brookings Softball Assoc. (Southbrook Softball Diamonds), 2800 22 nd Ave. So. BVG Backyard Grill, 1805 6th St Carpy’s Pub, 700 22nd Ave. So. Casey’s General Store #1694, 620 8th St. So. Casey’s General Store #2198, 122 6th St. W. Casey’s General Store #2419, 534 22nd Ave. So. Casino 2000, 622 25th Ave., Suite A and B CHS, Inc., dba Cenex Zip Trip #63, 1005 6th St. CHS, Inc., dba Cenex Zip Trip #64, 3045 LeFevre Dr. The Children’s Museum of South Dakota, 521 4 th St. The Clothes Line Lounge, 727 Wilson Ave. (inactive) Corner Pantry #24 / MG Oil, Co., 600 6th St. Corner Pantry #24 / MG Oil, Co., 600 6th St., Suite B Cottonwood Coffee, Inc., 1710 6th St. Cubby’s Sports Bar & Grill, 307 Main Ave. Danny’s, 703 Main Ave. So. The Depot Casino / MG Oil, Co., 919 20th St. So. Deuces Casino / Common Wealth Gaming & Holding, Co., 223 6th St., Suite 105A Deuces Casino, Common Wealth Gaming & Holding, Co., 223 6th St., Suite 105B Deuces Casino, Common Wealth Gaming & Holding, Co., 223 6th St., Suite 105C Deuces Casino, Common Wealth Gaming & Holding, Co., 223 6th St., Suite 105 D EdgeBrook Golf Course, 1415 22nd Ave. So. El Tapatio, Inc., 1717 6th St., Suite F Eponymous Brewing Co., 126 Main Ave. So. 4 Aces Casino / SVK Properties, Inc., 141 Main Ave S, Suite A 4 Aces Casino / SVK Properties, Inc., 141 Main Ave S, Suite B 4 Aces Casino / SVK Properties, Inc., 141 Main Ave S, Suite C George’s Pizza, Inc., 311 Main Ave. Guadalajara Mexican Restaurant, 1715 6th St Hy-Vee Food Store, 790 22nd Ave. So. Hy-Vee Gas, 716 22nd Ave. So. Jim’s Tap, 309 Main Ave. The Lanes / MG Oil, Co., 722 Western Ave., Suite B The Lanes / MG Oil, Co., 722 Western Ave., Suite C The Lodge / Den Wil Hospitality Group, Inc., 2515 6th St. Main Street Pub, 408 Main Ave. McCrory Gardens Visitors Center/Sodexo, 6th St. & 22nd Ave. Mosaic Wine Bar, 225 Main Ave. New Sake, Inc., 724 22nd Ave. So. Newman’s Convenience Store, 503 6th St. Old Sanctuary, 928 4th St. PNP Pub / Schoon’s Pub, Inc., 318 2nd St. So. Ray’s Corner / Fergen Enterprises, Inc., 401 Main Ave. Ray’s Corner / Fergen Enterprises, Inc., 401 Main Ave, Suite B Schoon’s Pump N Pak / Schoon’s Properties, Inc., 202 S. Main Ave. Schoon’s PNP Pub South / Schoon’s Properties, Inc., 1203 Main Ave. So. Skinner’s Pub, 300 Main Ave. South Main Casino & Pub / SVK Properties, LLC, 615 Main Ave. So. Sully’s Irish Pub / 3 Guys LLC, 421 Main Ave. Swiftel Center, 824 32nd Ave. Tee’d Off Golf, 2508 Wilbert Court, Suite B Wal-Mart Supercenter #1538, 2233 6th St. Wilbert’s / Den Wil Hospitality Group, Inc., 931 25th Ave. The Wild Hare, 303 3rd St. Wooden Legs Brewing Co., 309 5th St., Suite 100 Yessica’s Restaurant, 1300 Main Ave. So. Licenses NOT renewing Agua Fresh, 420 Main Ave Flavor International Restaurant & Grocery, 501 Main Ave. Woody’s Axe Throwing, 2508 Wilbert Court, Suite C City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 22-019,Version:1 Introduction and First Reading on Ordinance 22-019, an Ordinance Authorizing Budget Amendment No. 6 to the 2022 Budget. Second Reading and Action: June 14, 2022. Summary:City of Brookings Staff continually monitors departmental budgets and brings amendments to the City Council as necessary to account for circumstances not anticipated in the originally adopted appropriation ordinance. This ensures compliance with state and local laws and maintains transparency regarding the City’s operational needs. This budget amendment provides budget authority for the remaining costs associated with the “Play Ball” sculpture at Bob Shelden Athletic Complex. Recommendation: Staff recommends approval. Attachments: Memo Ordinance City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Erick Rangel, Chief Financial Officer; Dusty Rodiek, Parks & Recreation Director Council Meeting: May 24, 2022 / June 14, 2022 Subject: Ordinance 22-019, An Ordinance Authorizing Budget Amendment No. 6 to the 2022 Budget Presenter: Ashley Rentsch, Senior Finance Manager Summary: City of Brookings Staff continually monitors departmental budgets and brings amendments to the City Council as necessary to account for circumstances not anticipated in the originally adopted appropriation ordinance. This ensures compliance with state and local laws and maintains transparency regarding the City’s operational needs. This budget amendment provides budget authority for the remaining costs associated with the “Play Ball” sculpture at Bob Shelden Athletic Complex. Background: This budget amendment will increase expenditure authority for contracted services in the Public Art Fund in the amount of $77,000. Item Details: The City Council approved the “Play Ball” Sculpture at Bob Shelden Athletic Complex in 2020 at a total cost of $190,000. To date, invoices in the amount of $114,000 have been received from Reed Madden Designs for this project. The budget authority must be increased by $77,000 to cover the remaining costs, which will be incurred in 2022. Existing Public Art Fund reserves are sufficient to cover this increase. The expected date of completion for this project is June 15, 2022. Legal Consideration: None. Strategic Plan Consideration: This action supports fiscal responsibility by increasing budget authority for anticipated expenditures and increasing transparency regarding City operational needs. Financial Consideration: This action increases the budget authority for 2022 by $77,000 for the remaining costs associated with this sculpture, and is supported by existing Public Art Fund reserves. Following this expenditure, the cash balance in the Public Art Fund will be approximately $107,000. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / table Staff recommends approval of the ordinance as presented. Supporting Documentation: Memo Ordinance Ordinance 22-019 An Ordinance Authorizing Budget Amendment No. 6 to the 2022 Budget Be It Ordained by the City of Brookings, South Dakota: Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a)) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due. Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2022 budget: Increases the expenditure budget authority to cover remaining payments for “Play Ball” Sculpture at Bob Shelden Athletic Complex: Dept. / Fund Budgetary Expenditure Account Account Name Increase / (Decrease) Amount Description Public Art Fund 290-000-5-422.07 Contracting Services $77,000 Increase budget for Play Ball Sculpture All ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: May 24, 2022 Second Reading: June 14, 2022 Published: CITY OF BROOKINGS Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 22-020,Version:1 Introduction and First Reading on Ordinance 22-020, an Ordinance to Rezone a Portion of Wilbert Square Addition from Planned Development District to Residence R-3 Apartment District. Public Hearing and Action: June 14, 2022. Summary: Den-Wil Inc. has petitioned to rezone a portion of Wilbert Square Addition from a Planned Development District to a Residence R-3 Apartment District. The rezone would cover roughly four (4) acres of land northeast of the 10th Street and 25th Avenue intersection. The area is just south of the Research Park. Recommendation: The Development Review Team recommends approval. Staff recommends approval. The Planning Commission voted 8 - 0 recommending approval of the rezone. Attachments: Memo Ordinance Legal Notice - City Council Legal Notice - Planning Commission Planning Commission Minutes Location Map Zoning Map Future Land Use Map Petition to Rezone City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Ryan Miller, City Planner City Council Meeting: May 24, 2022 / June 14, 2022 Subject: Rezone a portion of Wilbert Square Addition from Planned Development District to Residence R-3 Apartment District. Person(s) Responsible: Mike Struck, Community Development Director Summary: Den-Wil Inc. has petitioned to rezone a portion of Wilbert Square Addition from a Planned Development District to a Residence R-3 Apartment District. The rezone would cover roughly four (4) acres of land northeast of the 10th Street and 25th Avenue intersection. The area is just south of the Research Park. Background: The property was rezoned from a Business B-4 Highway District to a Planned Development District in 2016. The Initial Development Plan (IDP) approved through the 2016 rezone included multiple mixed-use structures. The property owner is no longer interested in a mixed-use development and would like to reconsider development concepts in this area. Item Details: The property is bound by the Research Park to the north (zoned Agriculture), apartments to the west (zoned R-3 and PDD), business and commercial uses to the south (zoned B-4) and Interstate 29 to the west. The Future Land Use Map describes this area as Urban High Intensity land use, which would support a rezoning to R-3. Legal Consideration: None Strategic Plan Consideration: Economic Growth – the rezoning would support housing development. Financial Consideration: None Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a study session 5. Discuss / take no action / table The Development Review Team recommends approval. Staff recommends approval. The Planning Commission voted 8 – 0 recommending approval of the rezone. Supporting Documentation: Ordinance Legal Notice – City Council Legal Notice – Planning Commission Planning Commission Minutes Location Map Zoning Map Future Land Use Map Petition to Rezone Ordinance 22-020 An Ordinance to change the Zoning within the City of Brookings Be It Ordained by the City of Brookings, South Dakota: Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows, to-wit: Wilbert Square Addition in the Southwest Quarter of Section Nineteen, Township One-hundred ten North, Range Forty-nine West (as referenced on approved Wilbert Square Addition Preliminary Plat dated November 24, 2015 as Lots 1 – 3, Block 1, Wilbert Square Addition) from a Planned Development District to a Residence R-3 Apartment District. In accordance with Section 94-7 of Article I of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading: May 24, 2022 Second Reading and Adoption: June 14, 2022 Published: CITY OF BROOKINGS, SD ________________________ Oepke G. Niemeyer, Mayor ATTEST: ________________________ Bonnie Foster, City Clerk If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting. Published ______ time(s) at an approximate cost of $ _____________. NOTICE OF HEARING UPON PETITION TO REZONE NOTICE IS HEREBY GIVEN that Den-Wil Investments, Inc. has submitted a petition to rezone the following described real estate in the City of Brookings and Brookings County, South Dakota: Wilbert Square Addition in the Southwest Quarter of Section Nineteen, Township One Hundred Ten North, Range Forty Nine West (as referenced on approved Wilbert Square Addition Preliminary Plat dated November 24, 2015 as Lots 1 – 3, Block 1, Wilbert Square Addition). The request is to rezone the above described real estate from Planned Development District to Residence R-3 Apartment District. NOTICE IS FURTHER GIVEN that said request will be acted on by the City Planning Commission at 5:30 PM on Tuesday, May 3, 2022, in the Chambers Room on the third floor of the Brookings City & County Government Center at 520 Third Street, Brookings, South Dakota. Any action taken by the City Planning Commission is a recommendation to the City Council. Any person interested may appear and be heard in this matter. Dated this 22nd day of April, 2022. Ryan Miller City Planner Planning Commission Brookings, South Dakota May 3, 2022 OFFICIAL MINUTES Chairperson Greg Fargen called the meeting of the City Planning Commission to order on Tuesday, April 5, 2022, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Tanner Aiken, Justin Borns, Jacob Mills, Gregg Jorgenson, Lee Ann Pierce, Nick Schmeichel, Roger Solum, and Fargen. Absent was James Drew. Also present were Community Development Director Mike Struck, City Planner Ryan Miller, Kyle Prodoehl, Ben Aesoph, Joel Diers, Karissa Fassler, Jon Millum, Dana Sand, Ryan Krogman, Daniel Bielfeldt, Randy Roiger, Shawn Storhaug, and Megan Thies. Item #9b - Den-Wil Investments Inc submitted a petition to rezone Wilbert Square Addition in the Southwest Quarter of Section Nineteen, Township One Hundred Ten North, Range Forty Nine West as referenced on approved Wilbert Square Addition Preliminary Plat dated November 24, 2015 as Lots 1- 3, Block 1, Wilbert Square Addition. The request is to rezone the above described real estate from Planned Development District to Residence R-3 Apartment District. (Solum/Schmeichel) Motion to approve the rezone request. All present voted aye. MOTION CARRIED. Planning Commission Brookings, South Dakota May 3, 2022 OFFICIAL SUMMARY Chairperson Greg Fargen called the meeting of the City Planning Commission to order on Tuesday, April 5, 2022, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Tanner Aiken, Justin Borns, Jacob Mills, Gregg Jorgenson, Lee Ann Pierce, Nick Schmeichel, Roger Solum, and Fargen. Absent was James Drew. Also present were Community Development Director Mike Struck, City Planner Ryan Miller, Kyle Prodoehl, Ben Aesoph, Joel Diers, Karissa Fassler, Jon Mullom, Dana Sand, Ryan Krogman, Daniel Bielfeldt, Randy Roiger, Shawn Storhaug, and Megan Thies. Item #9b – This property is surrounded by the Research Park to the north, apartments to the west, business and commercial uses to the south and the interstate to the west. The future land use map supports the R-3 zoning. Wilbert Square Addition 335 ft Overview R-1B PDD I-1 PDD PDD I-1A R-1B B-4 B-4 B-3B-3B-3 B-3 B-3R-1AR-1AB-4 R-3 R-1A B-4 B-3 B-3 I-1R I-1R PDD PDD I-1R B-4 B-4 A B-5 B-5 A A A AA A R-3R-3 R-3 PDD PDD B-4 B-4 B-4 Zoning Map Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), (c) OpenStreetMap contributors, and the GIS User Community 5/16/2022 0 0.1 0.20.05 mi 0 0.2 0.40.1 km 1:11,611 City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 22-021,Version:1 Introduction and First Reading on Ordinance 22-021, an Ordinance to Rezone Lots 1 - 5 in Block 12 of Folsom Addition from Residence R-3 Apartments / Mobile Homes / Manufactured Housing District to Business B-3 Heavy District. Public Hearing and Action: June 14, 2022. Summary: Sarantis Theodosopolous has petitioned to rezone Lots 1 - 5 in Block 12 of Folsom Addition from Residence R-3 Apartments / Mobile Homes / Manufactured Housing District to Business B-3 Heavy District. Recommendation: The Development Review Team recommends approval. Staff recommends approval. The Planning Commission voted 8 - 0 recommending approval of the rezone. Attachments: Memo Ordinance Legal Notice - City Council Legal Notice - Planning Commission Planning Commission Minutes Location Map Zoning Map Future Land Use Map Petition to Rezone City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Ryan Miller, City Planner City Council Meeting: May 24, 2022 / June 14, 2022 Subject: Ordinance 22-021: Rezone Lots 1 – 5 in Block 12 of Folsom Addition from Residence R-3 Apartments/Mobile Home/Manufactured Housing District to Business B-3 Heavy District. Person(s) Responsible: Mike Struck, Community Development Director Summary: Sarantis Theodosopolous has petitioned to rezone Lots 1 - 5 in Block 12 of Folsom Addition from Residence R-3 Apartments / Mobile Homes / Manufactured Housing District to Business B-3 Heavy District. Background: Lots 1 - 5 in Block 12 of Folsom Addition are located on a portion of a block located north of West Second Street South, south of Folsom Street, east of Division Avenue , and west of First Avenue South. The remaining portion of Block 12, Lot 6A, was rezoned to B-3 in 2019. The owner is seeking to rezone the remainder of the Block B-3. Item Details: Block 12 is located between a core residential neighborhood to the east and a Business/Industrial District near the airport to the west. Adjacent zoning districts include R-3A to the east and north, Industrial I-2 Heavy District to the west, and Business B-3 Heavy District to the south. The Future Land Use Map describes this area as Urban Medium Intensity Land Use, which would support a B-3 Zoning. The B-3 Zoning District would also provide an improved buffer between residential zoned property to the east and industrial zoned property to the west. Currently, commercially zoned property on the block would be hindered by the required landscape bufferyards required between business and residential zoned lots. Rezoning the remainder of the block to business would eliminate the required bufferyards, leaving all development to simply comply with standard setbacks and landscaping requirements. If rezoned B-3, setback and landscape requirements would include 20-foot setbacks along each street frontage and a 5-foot setback along side lot lines along with 10-foot landscape areas along each street frontage and 5-foot landscape areas along side lot lines. Legal Consideration: None Strategic Plan Consideration: Economic Growth – the rezoning would allow business development opportunities. Financial Consideration: None Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a study session 5. Discuss / take no action / table The Development Review Team recommends approval. Staff recommends approval. The Planning Commission voted 8 – 0 recommending approval of the rezone. Supporting Documentation: Ordinance Legal Notice – City Council Legal Notice – Planning Commission Planning Commission Minutes Location Map Zoning Map Future Land Use Map Petition to Rezone Ordinance 22-021 An Ordinance to change the Zoning within the City of Brookings Be It Ordained by the City of Brookings, South Dakota: Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows, to-wit: Lots 1 - 5, Block 12, Folsom Addition from a Residence R-3A Apartments / Mobile Homes / Manufactured Housing District to a Business B-3 Heavy District. In accordance with Section 94-7 of Article I of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading: May 24, 2022 Second Reading and Adoption: June 14, 2022 Published: CITY OF BROOKINGS, SD ________________________ Oepke G. Niemeyer, Mayor ATTEST: ________________________ Bonnie Foster, City Clerk If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting. Published ______ time(s) at an approximate cost of $ _____________. NOTICE OF HEARING UPON PETITION TO REZONE NOTICE IS HEREBY GIVEN that Sarantis Theodosopoulos has submitted a petition to rezone the following described real estate in the City of Brookings and Brookings County, South Dakota: Lots 1 – 5 in Block 12 of Folsom Addition. The request is to rezone the above described real estate from Residence R-3A apartments/mobile homes/manufactured housing district to Business B-3 heavy district. NOTICE IS FURTHER GIVEN that said request will be acted on by the City Planning Commission at 5:30 PM on Tuesday, May 3, 2022, in the Chambers Room on the third floor of the Brookings City & County Government Center at 520 Third Street, Brookings, South Dakota. Any action taken by the City Planning Commission is a recommendation to the City Council. Any person interested may appear and be heard in this matter. Dated this 22nd day of April, 2022. Ryan Miller City Planner Planning Commission Brookings, South Dakota May 3, 2022 OFFICIAL MINUTES Chairperson Greg Fargen called the meeting of the City Planning Commission to order on Tuesday, April 5, 2022, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Tanner Aiken, Justin Borns, Jacob Mills, Gregg Jorgenson, Lee Ann Pierce, Nick Schmeichel, Roger Solum, and Fargen. Absent was James Drew. Also present were Community Development Director Mike Struck, City Planner Ryan Miller, Kyle Prodoehl, Ben Aesoph, Joel Diers, Karissa Fassler, Jon Millum, Dana Sand, Ryan Krogman, Daniel Bielfeldt, Randy Roiger, Shawn Storhaug, and Megan Thies. Item #9a – Sarantis Theodosopoulos submitted a rezone request for Lots 1 through 5 in Block 12 of Folsom Addition. The request is to rezone from Residence R-3A apartments/mobile homes/manufactured housing district to Business B-3 Heavy District. (Borns/Jorgenson) Motion to approve the rezone request. All present voted aye. MOTION CARRIED. Planning Commission Brookings, South Dakota May 3, 2022 OFFICIAL SUMMARY Chairperson Greg Fargen called the meeting of the City Planning Commission to order on Tuesday, April 5, 2022, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Tanner Aiken, Justin Borns, Jacob Mills, Gregg Jorgenson, Lee Ann Pierce, Nick Schmeichel, Roger Solum, and Fargen. Absent was James Drew. Also present were Community Development Director Mike Struck, City Planner Ryan Miller, Kyle Prodoehl, Ben Aesoph, Joel Diers, Karissa Fassler, Jon Mullom, Dana Sand, Ryan Krogman, Daniel Bielfeldt, Randy Roiger, Shawn Storhaug, and Megan Thies. Item #9a – The future land use map describes this area as Urban Medium intensity land use which supports a B-3 zoning. Recently a lot to the south was rezoned to B-3. Folsom Addition 167 ft Overview City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 22-022,Version:1 Introduction and First Reading on Ordinance 22-022, an Ordinance Establishing a Moratorium on the Installation of any Electronic Message Display Signs or Issuance of any Electronic Message Display Sign Permits Pending Further Study. Public Hearing and Action: June 14, 2022. Summary: Moratorium on the Installation or Issuance of Permits for Electronic Message Display Signs. Recommendation: Staff recommends approval. Attachments: Memo Ordinance City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Council Meeting: May 24, 2022 Subject: Moratorium – Electronic Message Display Signs Presenter: Mike Struck, Community Development Director Summary: With the increase of electronic message display signs throughout the major corridors, a request for a moratorium is made to further study the appropriate regulations for Brookings. If approved staff would work through Planning Commission to study the regulation. Background: The City of Brookings adopted a zoning ordinance and a component of the zoning ordinance includes regulations pertaining to Electronic Message Display Signs. The sign regulations pertaining to Electronic Message Display signs have not been updated since the early 2000s. As such, the sign regulations have not kept up with the changing technologies in the sign industry. Item Details: The City of Brookings is proposing a one (1) year moratorium period on the issuance and installation of electronic message display signs in the City of Brookings in order to further study regulations in the electronic message display sign industry. The moratorium will provide an opportunity to evaluate current and proposed zoning regulations and obtain adequate public input to further the development of the community while preserving community values and interests. Legal Consideration: City Attorney, Steve Britzman prepared the ordinance moratorium. Strategic Plan Consideration: The moratorium is consistent with the City Council’s Strategic Plan goal #5 Economic Growth by ensuring proper planning and an aesthetically attractive community appearance through proper regulations and placement of signs. Financial Consideration: None Options and Recommendation: The City Council has the following options: 1. Approve 2. Amend 3. Deny 4. Move the item to a study session 5. Discuss / take no action / table Staff recommends support of a moratorium to assure proper regulation reflects the desire of the Brookings community. Supporting Documentation: Memo Ordinance Ordinance 22-022 An Ordinance Establishing a Moratorium on the Installation of any Electronic Message Display Signs or Issuance of any Electronic Message Display Sign Permits Pending Further Study. Whereas, the City of Brookings (“City”) makes a preliminary finding that the City’s current regulations and controls may not adequately address the unique needs and impacts of Electronic Message Display Signs as defined in Section 94-461 of the Code of Ordinances of the City of Brookings, SD; and Whereas, the City makes a preliminary finding that the City needs further study of the relationship of Electronic Message Display Signs to the City’s zoning ordinances and the City’s Comprehensive Plan 2040. The public interest requires that the City study, analyze, and evaluate the impacts of Electronic Message Display Signs in the City of Brookings, and to fully explore the impacts of any proposed additional regulations regarding Electronic Message Display Signs; and Whereas, the City makes a preliminary finding that emerging technologies have significantly changed the use of Electronic Message Display Signs since the adoption of the City’s 2040 Comprehensive Plan and Electronic Message Display ordinances; and Whereas, the City hereby exercises its authority under SDCL 9 -29-1, SDCL Ch. 11-4, and the City Charter, to establish an immediate moratorium on the installation of any Electronic Message Display Signs or the processing or issuance of any permits for Electronic Message Display Signs within the City; and Whereas, a moratorium will ensure that any proposed zoning ordinance changes and any proposed amendments to the City’s Comprehensive Plan 2040 can be completely examined with adequate public input from citizens, business interests, and sign industry representatives; and Whereas, the City finds that a moratorium period of One (1) year is reasonable to preserve the status quo and prevent significant investment pending the outcome of the above study and any proposed regulations resulting from the foregoing study and input; and Whereas, the City finds that an immediate moratorium is necessary to protect the public health, safety, and welfare; Now, Therefore, Be It Ordained by the City of Brookings, South Dakota: Section 1. Moratorium. The City shall not accept or process applications, issue permits for, or allow the installation of any Electronic Message Display Signs for a period of One (1) year from the effective date of this Ordinance, or sooner if this Ordinance is repealed by the City at the completion of the above study. Section 2. Exceptions to Moratorium. This Ordinance shall not apply to: 1) the lawful use of an existing permitted Electronic Message Display Sign; 2) the repair and/or maintenance of any existing legally permitted Electronic Message Display Sign provided that such work does not enlarge or expand that sign; 3) any work on an Electronic Message Display Sign necessary to preserve health, safety, life, or property in the face of an emergency; and 4) any Electronic Message Display Sign work or installation that has received all necessary permits and approvals from the City prior to the effective date of this Ordinance. Section 3. Immediate Effect. This Ordinance is necessary for the immediate preservation of the public peace, health, and safety and shall take effect upon its passage and publication pursuant to SDCL 9 - 19-13. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading: May 24, 2022 Second Reading: Published: CITY OF BROOKINGS, SD ATTEST: Oepke G. Niemeyer, Mayor Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 22-043,Version:1 Action on Resolution 22-043, a Resolution Awarding Bids for the Purchase, Delivery and Erection of a Multi-Stack Fire Training Facility for the Brookings Fire Department. Summary: This resolution will award the Purchase, Delivery and Erection of a Multi-Stack Fire Training Facility for the Brookings Fire Department to Fire Training Structures, LLC, of Phoenix, AZ for the low bid of $494,971.00. The low bid is approximately $95,000.00 lower than estimated. The fabrication and delivery lead time is estimated at 7 - 10 months. Recommendation: Staff recommends approval. Attachments: Memo Resolution City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Pete Bolzer, Fire Chief Council Meeting: May 24, 2022 Subject: Resolution 22-043: Awarding Bids on the Purchase, Delivery and Erection of a Multi-Stack Fire Training Facility for the Brookings Fire Department. Person(s) Responsible: Pete Bolzer, Fire Chief Summary: This resolution will award the Purchase, Delivery and Erection of a Multi-Stack Fire Training Facility for the Brookings Fire Department to Fire Training Structures, LLC, of Phoenix, AZ for the low bid of $494,971.00. The low bid is approximately $95,000.00 lower than estimated. The fabrication and delivery lead time is estimated at 7 - 10 months. Background: A multi-disciplinary fire training tower will improve the Fire Department’s training capabilities and will reduce casualties in terms of firefighters and civilians in emergency situations. Hands-on training in realistic environments can also reduce property damage and business interruption due to fire as the department increases efficienc y. A training system that meets current industry and NFPA standards reduces lost time and compensation claims and can improve the Fire Department’s public image. Realistic, multi-disciplinary firefighter training improves volunteer fire department recruitment and retention and contributes to an overall mindset of continuous improvement and providing an efficient and cost-effective volunteer fire service. Item Details: The bid letting for this project was held on Tuesday, April 19, 2022 and the City received the following bids: Karila Fire Training Facilities, Inc……………………………. $564,350.00 Fire Training Structures, LLC………………………………… $494,971.00 Staff reviewed the bid proposals for compliance with the advertised specifications. Both bidders met the specifications. Legal Consideration: None Strategic Plan Consideration: Safe, Inclusive, Connected Community– This action aligns with the City’s goals of fostering a safe, inclusive and connected community by increasing firefighter proficiency and contributing to an overall mindset of continuous improvement. Financial Consideration: The City will enter into a contract with Fire Training Structure, LLC for the total low bid amount of $494,971.00. This action utilizes City Council Priority Project funds from unassigned General Fund Reserves. The estimated cost was $590,000. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a work session 5. Discuss / take no action / table Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Resolution 22-043 Resolution Awarding Bids for the Purchase, Delivery and Erection of a Multi- Stack Fire Training Facility for the Brookings Fire Department. Whereas, the City of Brookings opened bids for on the Purchase, Delivery and Erection of a Multi-Stack Fire Training Facility for the Brookings Fire Department on Tuesday, April 19, 2022 at 1:30 pm at the Brookings City & County Government Center; and Whereas, the City of Brookings received the following bids for the Purchase, Delivery and Erection of a Multi-Stack Fire Training Facility for the Brookings Fire Department. Karila Fire Training Facilities, Inc. - $564,350.00; Fire Training Structures, LLC - $494,971.00. Now, Therefore, Be It Resolved that the total low bid of $494,971.00 from Fire Training Structures, LLC, be accepted and the City Manager and Fire Chief are authorized to enter into a contract with Fire Training Facilities, LLC for the purchase, delivery, and erection of a Multi-Stack Fire Training Facility. Passed and approved this 24th day of May, 2022. CITY OF BROOKINGS, SD ________________________________ Oepke G. Niemeyer, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 22-045,Version:1 Action on Resolution 22-045, a Resolution to approve the purchase of a 2022 Fire Engine from Toyne, Inc., Breda, IA; through the Houston-Galveston Area Council contract #FS12-19A. Summary: Proposals pursuant to Houston-Galveston Area Council contract #FS12-19A were received and reviewed by staff. Toyne, Inc., provided the lowest cost and shortest lead time for construction and delivery of a completed fire apparatus meeting the department’s requirements. Recommendation: Staff recommends approval. Attachments: Memo Resolution Appendix City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Pete Bolzer, Fire Chief Council Meeting: May 24, 2022 Subject: Resolution 22-045: to approve the purchase of a 2022 Fire Engine from Toyne, Inc., Breda, IA; through the Houston- Galveston Area Council contract #FS12-19A Person(s) Responsible: Pete Bolzer, Fire Chief Summary: Proposals pursuant to Houston-Galveston Area Council contract #FS12-19A were received and reviewed by staff. Toyne, Inc., provided the lowest cost and shortest lead time for construction and delivery of a completed fire apparatus meeting the department’s requirements. Background: The replacement of aging Fire Apparatus is critical to effectively reduce maintenance costs and equipment down time. The Brookings Fire Department budgeted to replace a 2006 Fire Engine in the 2022 Capital Improvement Plan. Existing contracts through buying cooperatives were examined and utilized to reduce cost through raw material and industry increases Item Details: Houston-Galveston Area Council Contract #FS12-19A: Toyne, Inc., Breda, IA: Apparatus $691,154.56 Trade-in Value/Discounts $ 90,000.00 Total $601,154.56 The Houston-Galveston Area Council (H-GAC) is the largest of 24 Councils of Government (COG) in Texas, and is a political subdivision of the State of Texas. It has been serving local governments for more than 40 years. H-GAC's Cooperative Purchasing Program, known as HGACBuy, was established pursuant to Texas Interlocal Cooperation Act [Texas Local Government Code, Title 7, Chapter 791]. The Act allows local governments and certain non -profits to contract or agree under the terms of the Act to make purchases or provide purchasing services and other administrative functions appropriately established by another government entity. The Interlocal Contract (ILC) is the required legal document that establishes a link between the End User (local governments and certain non -profits) and HGACBuy, and gives the End User access to HGACBuy contracts. The City of Brookings is a member of HGACBuy. Legal Consideration: Legal counsel has reviewed the utilization of Houston-Galveston Area Council as meeting state bid requirements. Strategic Plan Consideration: Periodic replacement of firefighting equipment and apparatus provides optimum and professional delivery of emergency services and aligns with providing a Safe, Inclusive, Connected Community. The use of existing buying group contracts also promotes Fiscal Responsibility by reducing the effects of raw material and industry price increases. Financial Consideration: The 2022 CIP has a budgeted amount of $500,000 for this replacement. The delivery lead time for this apparatus is estimated at 445 days. This long lead time will allow staff to adjust the 2023 CIP and account for unforeseen inflationary increase when payment is due. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / table Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Appendix Resolution 22-045 Resolution of the City of Brookings to Enter into a Purchase Agreement for a Fire Engine Whereas, the City of Brookings is in need of a Fire Engine to replace Engine No. 2 of the Brookings Fire Department, and has determined through a thorough review of the submitted specifications, that the purchase of a Fire Engine from a contract with the manufacturer, Toyne Inc., that was competitively solicited and awarded within the previous twelve months is in the best interests of the City of Brookings; and Whereas, the new fire engine will replace a 2006 Crimson Top Mount Fire Engine (“Engine No. 2”) that has exceeded its useful life and is experiencing increasingly costly repairs; and Whereas, the cost to purchase the fire engine apparatus from Toyne Inc. is $601,154.56, with the purchase price reflecting a trade in value of $90,000 for the 2006 Crimson Top Mount Engine; and Whereas, pursuant to SDCL 5-18A-22, the City is authorized to purchase from a contract with Toyne Inc. which was competitively solicited by the Houston-Galveston Area Council and Toyne Inc. within the past twelve (12) months; and Whereas, because of lengthy manufacturing lead times, the purchase of the fire engine at this time will result in a budgeted expenditure in 2023 when the apparatus is delivered to the City of Brookings, Now, Therefore, Be It Resolved by the City Council of the City of Brookings, that the City enter into an Apparatus Purchase Agreement with Toyne Inc. for the purchase of a Fire Engine, and that the City Manager, Fire Chief and Clerk are authorized to execute the documents necessary to complete the purchase of the above-described Fire Engine from Toyne Inc. Passed and approved this 24th day of May, 2022. CITY OF BROOKINGS, SD Oepke Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk Revised 6.1.18 AMENDMENT No. 1 to CONTRACT No. FS12-19A For Fire Service Apparatus (All Types) Between HOUSTON-GALVESTON AREA COUNCIL And Toyne Inc. THIS AMENDMENT modifies the above referenced Contract as follows: This contract is extended through May 31, 2022 Midnight CT. Unless otherwise noted, this amendment goes into effect on the date signed by H-GAC. All other terms and conditions of this Contract shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective duly authorized representatives. Signed for Houston-Galveston Area Council, ____________________________________ Houston, Texas Chuck Wemple, Executive Director Date: _______________________________ Signed for: Toyne Inc. ____________________________________ Printed Name & Title: ____________________________________ Date: _______________________________ DocuSign Envelope ID: F3EE55DC-99B5-4784-99B3-1F63C98C1DEF PresidentMichael Schwabe 12/20/2021 12/21/2021 City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 22-046,Version:1 Action on Resolution 22-046, a Resolution Awarding Bids on the Hay Land Lease located in the East ½ of Aamot Addition (Landfill). Summary: A bid letting was held at 9:00 AM on Thursday, May 19, 2022, and the following bids were received: Joshua Berndt $95.00 Stuart Huber $25.00 This resolution will award bids for the 2022 Hay Land Lease located in the E ½ of Aamot Addition (Landfill), to Joshua Berndt for the high bid of $95.00 per acre with an option to renew for two (s) additional one (1) year terms for 2023 and 2024. Recommendation: Staff recommends approval. Attachments: Memo Resolution City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Jeremy Linstad, Street Manager/Interim Solid Waste Man. Council Meeting: May 24, 2022 Subject: Bid Award: Hay Land Lease at Brookings Landfill Presenter: Jeremy Linstad, Street Manager/Interim Solid Waste Man. Summary: This resolution will award bids for the 2022 Hay Land Lease located at the Brookings Landfill to Joshua Berndt, for the high bid of $95 per acre. Background: The City is leasing approximately 26 acres of hay land east of the Landfill as shown on the attached map. The hay land area will be rented for a period of one (1) year for 2022 with an option to renew for two (2) additional, one (1) year terms (2023 and 2024). Item Details: A bid letting was held at 9:00 a.m. on Thursday, May 19, 2022, and the following bids were received: Joshua Berndt $95.00 per acre Stuart Huber $25.00 per acre Following approval of this resolution to award the bids, the City will hold a public hearing with intent to lease to a private person at the June 14, 2022 City Council meeting. Legal Consideration: None. Strategic Plan Consideration: The Hay lease furthers the strategic initiative of financial responsibility, whereby the City receives revenue from the lease. The person providing the hay lease also provides weed control, thereby saving City staff and expenses for the weed control operations. Financial Consideration: The City will enter into a one-year contract for 2022 with Joshua Berndt for the high bid of $95.00 per acre for 26 acres resulting in the annual payment of $2,470.00. The contract may be renewed for two (2) additional one (1) year terms (2023 and 2024) if agreed upon by both parties. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / table Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Map Resolution 22-046 Resolution Awarding Bids on Airport Hay Lease Whereas, the City of Brookings opened bids to lease approximately 26 acres of Hay Land at the Brookings Landfill located in the East ½ of Aamot Addition, Section 8-110- 49, on Tuesday, May 24, 2022 at 9:00 AM at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for Hay Land Lease:  Joshua Berndt, White SD $95.00 per acre  Stuart Huber, Dell Rapids, SD $25.00 per acre Now Therefore, Be It Resolved that the high bid of Joshua Berndt, White, SD for $95.00 per acre be accepted. Passed and approved this 24th day of May, 2022. CITY OF BROOKINGS, SD ________________________________ Oepke G. Niemeyer, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk Solid Waste / Landfill – acres for potential grass rent Approximate acres: 26.23 City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 22-017,Version:2 Second Reading and Action on Ordinance 22-017, an Ordinance Authorizing Budget Amendment No. 5 to the 2022 Budget. Summary: City of Brookings Staff continually monitors departmental budgets and brings amendments to the City Council as necessary to account for circumstances not anticipated in the originally adopted appropriation ordinance. This ensures compliance with state and local laws and maintains transparency regarding the City’s operational needs. This three-part budget amendment provides budget authority for the Fire Department’s training tower project and donated playground equipment at Lions Park. This ordinance will also transfer retirement payout contingency funds to the Police Department. Recommendation: Staff recommends approval. Attachments: Memo Ordinance City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Erick Rangel, Chief Financial Officer; Dusty Rodiek, Parks & Recreation Director; Pete Bolzer, Fire Chief Council Meeting: May 10, 2022 / May 24, 2022 Subject: Ordinance 22-017: Budget Amendment No. 5 to the 2022 Budget Presenter: Ashley Rentsch, Senior Finance Manager Summary: City of Brookings Staff continually monitors departmental budgets and brings amendments to the City Council as necessary to account for circumstances not anticipated in the originally adopted appropriation ordinance. This ensures compliance with state and local laws and maintains transparency regarding the City’s operational needs. This three-part budget amendment provides budget authority for the Fire Department’s training tower project and donated playground equipment at Lions Park. This ordinance will also transfer retirement payout contingency funds to the Police Department. Background:  Part 1 Increases the expenditure budget and transfers funds from the City Council Priority Projects Fund for the Fire Department Training Tower.  Part 2 Increases budget authority for playground equipment replacement at Lions Park.  Part 3 Allocates funds from the City’s Retirement Payout Contingency account to the Police Department. Item Details: Part1 – $590,000 for Fire Training Tower  Increased Skills and Efficiency: A multi-disciplinary fire training tower will improve the Fire Department’s training capabilities and will reduce casualties in terms of firefighters and civilians in emergency situations. Hands-on training in realistic environments can also reduce property damage and business interruption due to fire as the department increases efficiency.  Industry Standards: A training device that meets current industry and NFPA standards reduces lost time and compensation claims and can improve the Fire Department’s public image.  Recruitment and Retention: Realistic, multi-disciplinary firefighter training improves volunteer fire department recruitment and retention and contributes to an overall mindset of continuous improvement and providing an efficient and cost-effective volunteer fire service. Part 2 – $60,000 for playground equipment replacement at Lions Park  Anonymous Donor: In December 2021, a memorial donation of $60,000 was made to the City for playground equipment to be installed at Lions Park. The new playground will be installed to replace the aging plastic playground currently on this site. Part 3 – $35,928 retirement payout contingency to Police Department  Contingency Fund: The City has established a retirement payout contingency account to budget for material payouts of vacation and sick leave benefits related to retirements of long-term employees. This transfer will cover a retirement payout and maintain the payroll budget at normal levels in the police department for the remainder of the year. Legal Consideration: None. Strategic Plan Consideration: This action supports fiscal responsibility by increasing budget authority for anticipated expenditures and increasing transparency regarding City operational needs. Items that support our fire department and enhance our parks align with the City’s goals of fostering a safe, inclusive and connected community. Financial Consideration: This action utilizes $590,000 of City Council Priority Project funds from unassigned General Fund Reserves for the Fire Training Tower. Donations of $60,000 are funding the playground equipment replacement, and the retirement payout of $35,928 will be covered through the established Retirement Payout Contingency account. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / table Staff recommends approval of the resolution as presented. Supporting Documentation: Memo Ordinance Ordinance 22-017 An Ordinance Authorizing Budget Amendment No. 5 to the 2022 Budget Be It Ordained by the City of Brookings, South Dakota: Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a)) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due. Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2022 budget: Part 1 – Increases the expenditure budget and transfers City Council Priority Project Funds to the CIP Fund for the Fire Training Tower Dept./Fund Budgetary Expenditure Account Account Name Increase/(Decrease) Amount Description General Fund 101-000-7-899-05 Transfer Out 590,000 Transfer CCPPF Reserves for Fire Training Tower CIP 213-000-6-700-07 Transfer In General Fund 590,000 Transfer CCPPF Reserves for Fire Training Tower CIP 213-000-5-940-08 Fire Dep Capital Exp 590,000 Increase budget authority for Fire Training Tower Part 2 – Increases the expenditure budget for playground equipment at Lions Park Dept./Fund Budgetary Expenditure Account Account Name Increase/(Decrease) Amount Description CIP 213-000-5-940-04 Parks & Rec Improvements 60,000 Increase budget authority for Lions Park Playground Equipment Part 3 – Transfers Retirement Payout Contingency to the Police Department Dept./Fund Budgetary Expenditure Account Account Name Increase/(Decrease) Amount Description General Fund/Non Departmental 101-405-5-121-11 Retirement Payout Expense (35,928) Transfer Retirement Payout Contingency to Police Department General Fund/Police Department 101-421-5-101-00 Regular Pay 35,928 Transfer Retirement Payout Contingency to Police Department All ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: May 10, 2022 Second Reading: May 24, 2022 Published: May 27, 2022 CITY OF BROOKINGS, SD Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 22-018,Version:2 Public Hearing and Action on Ordinance 22-018, an Ordinance Amending Ordinance Section 62-86 providing for Duty of Owner and Designation of Vegetation Management Practices in the City of Brookings, South Dakota. Summary: An ordinance amending Section 62-86 Duty of Owner, of the Municipal Code of Ordinances pertaining to vegetation management practices. Recommendation: Staff recommends approval. Attachments: Memo Ordinance - Clean Ordinance - Marked Legal Notice City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Council Meeting: May 10, 2022 / May 24, 2022 Subject: Ordinance 22-018: Vegetation Management Practices Person(s) Responsible: Mike Struck, Community Development Director Summary: The City of Brookings proposes amendments to Section 62-86 Duty of Owner, of the Municipal Code of Ordinances pertaining to vegetation management areas and height limitations of vegetation. Background: Section 62-86 Duty of Owner of the City of Brookings Municipal Code of Ordinances addresses items related to vegetation and the responsibility of the property owner to properly maintain vegetation. Violations of the vegetation ordinance leads to nuisance cases and is administered by Code Enforcement staff within the Community Development Department. Item Details: Staff is recommending changes to Section 62-86 of the Municipal Code of Ordinances to align more closely with generally accepted practices of vegetation management. The proposed change in the vegetation height standards reduces the height from fifteen (15) inches to eight (8) inches. The proposed eight (8) inch height limitation would apply to grass, weeds, etc., unless exempted per ordinance. The second change to the ordinance is to designate vegetation management practices, also known as “No Mow” areas, by the Parks and Recreation Department. The Parks and Recreation Director in consultation with the Parks and Recreation Board could designate areas as not subject to mowing on a routine basis as these areas would be addressed through different vegetation management practices. Some of these areas have been previously identified in ordinance and the proposed language would provide the Parks and Recreation Department more flexibility as well as cost savings in the long term care and management of park property. Currently, the Edgebrook Golf Course, Dakota Nature Park, and retention/detention ponds are exempt from the vegetation height limitations. A review of other South Dakota municipalities code of ordinances revealed the following grass heights constituting a public nuisance: Brandon – 6” Mitchell – 7” Sioux Falls – 8” Watertown – 8” Yankton – 8” Huron – 8” Pierre – 12” Harrisburg – 8” Rapid City – 8” Sturgis – 8” Spearfish – 10” Vermillion – 6” Legal Consideration: The City Attorney assisted in the drafting of the ordinance amendment. Strategic Plan Consideration: The proposed amend is consistent with the following goals of the City Council Strategic Plan: Fiscal Responsibility – Designation of vegetation management practices will allow cost savings associated with maintaining large tracts of land. Sustainability – The implementation of vegetation management practices is a sustainable maintenance approach to preserving the natural landscape, reducing the carbon footprint, and assisting with storm water infiltration. Financial Consideration: Reduces costs associated with maintaining large tracts of land by the Parks and Recreation Department. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve as amended 3. Deny 4. Move the item to a study session 5. Discuss / take no action / table Staff recommends approval of the ordinance amendment. Sustainability Council recommends approval of the ordinance amendment as presented with the opportunity for future discussion on sustainability features (e.g. natural grasses, rain gardens, etc.). Supporting Documentation: Memo Ordinance - clean Ordinance - marked Legal Notice Ordinance 22-018 An Ordinance Amending Ordinance Section 62-86 of the Code of Ordinances of the City of Brookings, South Dakota, and Providing for Duty of Owner and Designation of Vegetation Management Practices in the City of Brookings, South Dakota. Be It Ordained by the Governing Body of the City of Brookings, South Dakota, as follows: That Section 62-86 of the Ordinances of the City of Brookings is hereby amended to read as follows: I. Section 62-86. Duty of Owner/Designation of Vegetation Management Practices. No owner of any lot, place or area within the city, or the agent of such owner, or the occupant of such lot, place or area, shall allow or permit to remain upon any such lot, place or area, or upon any sidewalk or boulevard abutting the same any weeds, tall and undesirable grass or deleterious or unhealthful growths or other noxious matter that may be growing, lying or located thereon, and the growing of such weeds or other noxious or unhealthful vegetation is hereby declared to be a n uisance. The presence of primary or secondary noxious weeds as identified by the county weed board or the growth of any other vegetation referred to in this section to a height of eight (8) inches or more shall be prima facie evidence of such nuisance and a violation of this division. Hay which is periodically mowed and removed from public or private property shall not constitute a nuisance under this section. In addition, Vegetation Management Areas, also referred to as “No-Mow” areas designated by the Parks and Recreation Department, retention/detention ponds, the Dakota Nature Park, and Edgebrook Golf Course shall not be subject to the requirements of this section because different vegetation management practices are intended to apply to these areas. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading: May 10, 2022 Public Hearing: May 24, 2022 Published: May 27, 2022 CITY OF BROOKINGS, SD ATTEST: Oepke G. Niemeyer, Mayor Bonnie Foster, City Clerk Ordinance 22-018 An Ordinance Amending Ordinance Section 62-86 of the Code of Ordinances of the City of Brookings, South Dakota, and Providing for Duty of Owner and Designation of “No-Mow” Vegetation Management Practices Areas in the City of Brookings, South Dakota. Be It Ordained by the Governing Body of the City of Brookings, South Dakota, as follows: That Section 62-86 of the Ordinances of the City of Brookings is hereby amended to read as follows: I. Section 62-86. Duty of Owner/Designation of Vegetation Management Practices. No owner of any lot, place or area within the city, or the agent of such owner, or the occupant of such lot, place or area, shall allow or permit to remain upon any such lot, place or area, or upon any sidewalk or boulevard abu tting the same any weeds, tall and undesirable grass or deleterious or unhealthful growths or other noxious matter that may be growing, lying or located thereon, and the growing of such weeds or other noxious or unhealthful vegetation is hereby declared to be a nuisance. The presence of primary or secondary noxious weeds as identified by the county weed board or the growth of any other vegetation referred to in this section to a height of eight (8) 15 inches or more shall be prima facie evidence of such nuisance and a violation of this division. Hay which is periodically mowed and removed from public or private property shall not constitute a nuisance under this section. In addition, Vegetation Management Areas, also referred to as “No-Mow” areas designated by the Parks and Recreation Department, retention/detention ponds, the Dakota Nature Park, and Edgebrook Golf Course shall not be subject to the requirements of this section because different vegetation management practices are intended to apply to these areas. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading: May 10, 2022 Public Hearing: May 24, 2022 Published: May CITY OF BROOKINGS, SD ATTEST: Oepke G. Niemeyer, Mayor Bonnie Foster, City Clerk If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting. Published ______ time(s) at an approximate cost of $ _____________. NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN THAT the Brookings City Council will hold a public hearing at 6:00 PM on Tuesday, May 24, 2022, in the Brookings City and County Government Center Chambers, 520 Third Street, to consider adoption of a revision to Section 62-86. Duty of Owner of the Municipal Code of Ordinances, pertaining primarily to vegetation management practices. Any person interested may appear and be heard in this matter. Dated this 13th day of May, 2022. ____________________________ Bonnie Foster City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0219,Version:1 Public Hearing and Action on a request for an On-Off Sale Malt License for McCrory Gardens Educational & Visitors Center,Sodexo America, LLC at SDSU, Manager. Location: 6th Street and 22 nd Avenue. Legal Description: portion of SE ¼ of Section 24-T110N-R50W. Summary: The City of Brookings has received an application for an On-Off Sale Malt License for McCrory Gardens Educational & Visitors Center,Sodexo America, LLC at SDSU, Manager. All required documents have been submitted for this application. Background: A public hearing and action by the local governing body is required. The On-Off Sale Malt License would be effective May 2022, and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Recommendation: Staff recommends approval. Attachments: Memo Legal Notice Map City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Bonnie Foster, City Clerk Council Meeting: May 24, 2022 Subject: New Malt License - McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager Person(s) Responsible: Steve Britzman, City Attorney Summary: The City of Brookings has received an application for an On -Off Sale Malt License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager. All required documents have been submitted for this application. Aramark Educational Services, LLC, is relinquishing its contract with the State effective May 28, 2022. Sodexo America LLC at SDSU will be resuming contract services with the State effective May 28, 2022. Video Lottery is not allowed at this location, as it is State Property. Background: A public hearing and action by the local governing body is required. The On -Off Sale Malt License would be effective May 2022, and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Item Details: Chapter 6, Article 2, Section 6-42 of the City Code of Ordinances pertains to the Application Review Procedure. The city council shall review all applications submitted to the city for available on-sale alcoholic beverage agreements and for all alcoholic beverage licenses in accordance with SDCL Chapter 35 -2 (SDCL 35-2-1 et seq.) and in accordance with the following factors: 1) Type of business which applicant proposes to operate: on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. 2) The manner in which the business is operated: on-sale alcoholic beverage operating agreements and alcoholic beverage licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. 3) The extent to which minors are employed in such a place of business: on -sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. 4) Adequacy of the police facilities to properly police the proposed location: The city council shall inquire of the city manager whether the police depa rtment can adequately police the proposed location. 5) Other factors: The hours that business is conducted shall be considered by the city council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses. (Code 1996, § 5-20) State Law reference - Local license approval, SDCL 35-2-1.2. SDCL 35-2-1.2. Applications submitted to local governing body--Fee--Approval or disapproval. Any applicant for a new retail license, except as set forth in § 35-2-1.1, or the transfer of an existing license shall submit an application to the governing body of the municipality in which the applicant intends to operate, or if outside the corporate limits of a municipality, to the governing body of the county in which the applicant intends to operate. The applicant shall submit the required fee with the application. The governing body may approve the application for a new retail license or the transfer of an existing license if the governing body considers the applicant suitable to hold the license and the proposed location is suitable. The governing body may disapprove an application for a new retail license or the transfer of an existing license issued under subdivision 35 -4-2(4), (6), or (13) if: 1) The approval of the application permits a person, corporation, or business entity to possess more than one-third of the licenses available to be issued in the jurisdiction; and 2) The governing body determines that possession of more than one -third of licenses available is not in the public interest. Any application for the reissuance of a retail license may be approved by the municipal or county governing body without a hearing unless in the past year the licensee or one or more of the licensee's employees have been subjected to a criminal penalty for violation of the alcoholic beverage control law or the license has been suspended. Source: SDC 1939, §§ 5.0206, 5.0305; SL 1945, ch 21, § 1; SL 1951, ch 11; SDC Supp 1960, § 5.0204 (14); SL 1961, ch 14; SL 1964, ch 9; SL 1965, ch 12; SDCL §§ 35-4-32, 35-4-33, 35-6-15; SL 1971, ch 211, § 13; SL 2008, ch 37, § 140; SL 2011, ch 171, § 1; SL 2017, ch 164, § 1; SL 2018, ch 213, § 12. Legal Consideration: None Strategic Plan Consideration: Economic Growth – allowing businesses in Brookings to expand options for customers. Financial Consideration: The On-Off Sale Malt License would be effective May 2022, and is subject to an annual renewal. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Refer to a Study Session 5. Discuss / take no action / table Staff recommends approval. Supporting Documentation: Legal Notice Map NOTICE OF PUBLIC HEARING On-Off Sale Malt and On-Off Sale Wine Licenses – NEW McCrory Gardens Educational & Visitors Center Sodexo America, LLC at SDSU, Manager NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on May 24, 2022, at 6:00 p.m. in the Brookings City & County Government Center Chambers, 520 Third Street, will meet in regular session to consider an application for the issuance of an On-Off Sale Malt License and an On-Off Sale Wine License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager, 6th Street and 22nd Avenue, Brookings, South Dakota. Legal description: portion of SE ¼ of Section 24-T110N-R50W (NW corner of 6th Street and 22nd Avenue). At which time and place all persons interested will be given a full, fair and complete hearing thereon. Dated at Brookings, South Dakota, this 13th day of May, 2022. Bonnie Foster, City Clerk Published time(s) at an approximate cost $ Brookings County, SD Developed by Parcel ID 409701105024425 Sec/Twp/Rng 24-110-50 Property Address 631 22ND AVE BROOKINGS Alternate ID n/a Class G Acreage n/a Owner Address STATE OF SOUTH DAKOTA 700 E BROADWAY AVE PIERRE SD 57501 District 4001 Brief Tax Description FARMLAND, SE1/4 OF SE1/4 EXC S160' OF W283.7' & EXC LOTS 1-2, BLK 2 UNIVERSITY FIRST ADDN, & EXCEPT LOT H3 IN SE 1/4 SE 1/4 (Note: Not to be used on legal documents) Date created: 5/6/2022 Last Data Uploaded: 5/6/2022 8:13:23 AM 860 ft Overview Legend Brookings City Limits City Limits Township Boundary Sections Parcels Roads City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 22-042,Version:1 Public Hearing and Action on Resolution 22-042, a Resolution authorizing the City Manager to enter into an Operating Agreement for an On-Off Sale Wine License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager. Location: 6th Street and 22nd Avenue. Legal Description:portion of SE ¼ of Section 24-T110N-R50W. Summary: The City of Brookings has received an application for an On-Off Sale Wine License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager, 6 th Street and 22nd Avenue. An operating agreement is required for Wine Licenses. This Resolution allows the City Manager to enter into the first five years of the 10-year agreement, effective through 2027. Background: A public hearing and action by the local governing body is required for all alcohol licenses. This license would be effective through December 31, 2022 and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Recommendation: Staff recommends approval. Attachments: Memo Resolution Operating Agreement Legal Notice Location Map City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Bonnie Foster, City Clerk Council Meeting: May 24, 2022 Subject: On-Off Sale Wine Operating Agreement: McCrory Gardens Educational & Visitors Center, Sodexo America, LLC @ SDSU, Manager Person(s) Presenting: Steve Britzman, City Attorney Summary: The City of Brookings has received an application for an On -Off Sale Wine License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager. Legal description: portion of SE ¼ of Section 24-T110N-R50W (NW corner of 6th Street and 22nd Avenue). An operating agreement is required for Wine Licenses. This Resolution allows the City Manager to enter into the first five years of the 10-year agreement, effective through 2027. Aramark Educational Services, LLC, is relinquishing its contract with the State effective May 28, 2022. Sodexo America LLC at SDSU will be resuming contract services with the State effective May 28, 2022. Background: A public hearing and action by the local governing body is required. This license would be effective through December 31, 2022 and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Item Details: Chapter 6, Article 2, Section 6-42 of the City Code of Ordinances pertains to the Application Review Procedure. The city council shall review all applications submitted to the city for available on-sale alcoholic beverage agreements and for all alcoholic beverage licenses in accordance with SDCL 35-2 and in accordance with the following factors: 1) Type of business which applicant proposes to operate: on -sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. 2) The manner in which the business is operated: on-sale alcoholic beverage operating agreements and alcoholic beverage licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. 3) The extent to which minors are employed in such a place of business: on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. 4) Adequacy of the police facilities to properly police the proposed location: The city council shall inquire of the city manager whether the police department can adequately police the proposed location. 5) Other factors: The hours that business is conducted shall be considered by the city council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses. Legal Consideration: None Strategic Plan Consideration: Economic Growth – allowing businesses to expand options for their customers. Financial Consideration: This license would be effective through December 31, 2022 and then subject to an annual renewal. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move to a Study Session 5. Discuss / take no action / table Staff recommends approval. Supporting Documentation: Resolution Operating Agreement Legal Notice Location Map Resolution 22-042 On-Off Sale Wine Operating Agreement - New McCrory Gardens Educational & Visitors Center Sodexo America, LLC at SDSU, Manager Now, Therefore, Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Management Agreement for Wine between the City of Brookings and McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager, for the purpose of a manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 6th Street and 22nd Avenue. Legal description: portion of SE ¼ of Section 24-T110N-R50W (NW corner of 6th Street and 22nd Avenue). Now, Therefore, Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of ten (10) years, with a renewal at the five (5) year mid-term. Passed and approved this 24th day of May, 2022. CITY OF BROOKINGS, SD Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk WINE OPERATING AGREEMENT McCrory Gardens Educational & Visitors Center Sodexo America, LLC at SDSU, Manager THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Sodexo America, LLC at SDSU, hereinafter referred to as “Manager.” The City and Manager are referred to as the “parties” herein. WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on -sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: I. This Agreement is made and entered into on a limited basis between the parties hereto to allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. II. The Manager shall be individually responsible for all operating expenses of said on -sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. III. The on-sale establishment shall be located upon real property in the City of Brookings, South Dakota, described as: portion of SE ¼ of Section 24-T110N-R50W (NW corner of 6th Street and 22nd Avenue), City of Brookings, Brookings County, South Dakota IV. The Manager shall dispense only alcoholic beverages supplied by the Municipal Off- Sale establishment. V. This Agreement shall be in full force and effect for a period of five (5) years, with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. VI. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal Off-Sale Establishment to be sold on the premises of Manager. VII. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as abo ve described. VIII. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost sha ll include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ord inance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. IX. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on -sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off -sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. X. In consideration of the covenants herein contained, the Manager agrees to pay the CITY OF BROOKINGS, Five Hundred, and no/100 Dollars ($500.00), constituting the Annual License Fee on or by the 1st day of November of each year thereafter as long as this agreement shall remain in force and effect. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided therein. The Manager further agrees that if the annual fee shall be increased at any time by the legislature, the Manager shall pay the amount of any such increase. XI. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. XII. The Manager shall have the right to return, at any time, alcoholic beverages received from the City which are eligible to be returned and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the cost of such alcoholic beverages. XIII. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. XIV. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. XV. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. XVI. The City covenants and agrees to furnish the on -sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. XVII. The City has the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manage r relating to the on-sale establishment. XVIII. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. XIX. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement which is effective this 24th day of May, 2022. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: ATTEST: Paul Briseno, City Manager Bonnie Foster, City Clerk MANAGER By: By: NOTICE OF PUBLIC HEARING On-Off Sale Malt and On-Off Sale Wine Licenses – NEW McCrory Gardens Educational & Visitors Center Sodexo America, LLC at SDSU, Manager NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on May 24, 2022, at 6:00 p.m. in the Brookings City & County Government Center Chambers, 520 Third Street, will meet in regular session to consider an application for the issuance of an On-Off Sale Malt License and an On-Off Sale Wine License for McCrory Gardens Educational & Visitors Center, Sodexo America, LLC at SDSU, Manager, 6th Street and 22nd Avenue, Brookings, South Dakota. Legal description: portion of SE ¼ of Section 24-T110N-R50W (NW corner of 6th Street and 22nd Avenue). At which time and place all persons interested will be given a full, fair and complete hearing thereon. Dated at Brookings, South Dakota, this 13th day of May, 2022. Bonnie Foster, City Clerk Published time(s) at an approximate cost $ Brookings County, SD Developed by Parcel ID 409701105024425 Sec/Twp/Rng 24-110-50 Property Address 631 22ND AVE BROOKINGS Alternate ID n/a Class G Acreage n/a Owner Address STATE OF SOUTH DAKOTA 700 E BROADWAY AVE PIERRE SD 57501 District 4001 Brief Tax Description FARMLAND, SE1/4 OF SE1/4 EXC S160' OF W283.7' & EXC LOTS 1-2, BLK 2 UNIVERSITY FIRST ADDN, & EXCEPT LOT H3 IN SE 1/4 SE 1/4 (Note: Not to be used on legal documents) Date created: 5/6/2022 Last Data Uploaded: 5/6/2022 8:13:23 AM 860 ft Overview Legend Brookings City Limits City Limits Township Boundary Sections Parcels Roads City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 22-047,Version:1 Action on Resolution 22-047, a Resolution Authorizing Waiver of Permit Fees Related to Storm Damage in the City of Brookings, South Dakota. Summary: The City of Brookings was subject to a windstorm on May 12, 2022, which provided widespread damage across the community. The Resolution will provide the City Manager with authority to waive storm damage-related permit fees for a period of 180 days from the May 12, 2022 windstorm. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Steven J. Britzman, Brooking City Attorney Council Meeting: May 24, 2022 Subject: Proposed Resolution: Authorizing Waiver of Building and Sign Permit Fees for Repairs and Replacements due to the May 12, 2022 Windstorm Person Responsible: Steven J. Britzman, Brooking City Attorney Summary/Background: In order to assist those who will be repairing and/or replacing buildings, structures, and signage that were damaged as a result of the May 12, 2022 windstorm, this Resolution authorizes the City Manager to waive building and sign permit fees based on applications for permits submitted as a result of repair or replacement projects required because of damage from the May 12, 2022 windstorm. The City has a comprehensive permit fee schedule, which includes among other fees, permit fees for residential, commercial, and other types of building and remodeling projects. In addition, the City has permit fees for signs which would be installed to replace signs which were damaged as a result of the storm event. Adoption of this proposed Resolution will allow the City Manager, or his designee, to waive city permit and sign fees for projects which repair or replace buildings, structures and signs which were damaged as a result of the May 12, 2022 storm. The duration of the proposed Resolution is 180 days from the date of the storm event, and permits submitted after that date can be considered for the fee waiver provided the Resolution is approved. Legal Procedure: Since the City has adopted a comprehensive Fee Resolution, this Resolution would modify the Fee Resolution for projects which qualify as windstorm event repairs or replacements. Item Details: The City Manager or his designee will provide a certification or other verification form which provides that the applicant is repairing or replacing a building, structure or sign as a result of the May 12, 2022 windstorm event. Legal Considerations: The City has the authority to set permit fees by Resolution and can modify the City’s Fee Resolution at any time. Strategic Plan Consideration: The proposed Resolution will provide the residents of the City with helpful assistance in recovering from the widespread damage from the storm, and the City will benefit from the repair or replacement of storm-damaged buildings and structures. Financial Considerations: The duration of the waiver is 180 days, and while there will be financial impacts to the City as a result of the loss of permit fees, the overall benefits to the community and the residents should outweigh the temporary loss of revenue. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Refer to a Study Session 5. Discuss / take no action / table Staff recommends approval. Supporting Documentation: Resolution Resolution 22-047 A Resolution Authorizing Waiver of Permit Fees Related to Storm Damage in the City of Brookings, South Dakota Whereas, the May 12, 2022 windstorm caused widespread damage in Eastern South Dakota, and one aspect of property damage was the damage or destruction of numerous buildings and signs located in Brookings; and Whereas, it is in the public interest that buildings are repaired and/or replaced and that signage is restored following the windstorm; and Whereas, to assist those who will be repairing and replacing buildings and signs in the City of Brookings, the City Council has determined that the City of Brookings can assist in the recovery from the windstorm by waiving storm damage-related permit fees. Accordingly, the City Council hereby authorizes the City Manager to waive permit fees related to storm damage from the May 12, 2022 windstorm. Now, Therefore, Be It Resolved that the City Manager is authorized to waive storm damage-related permit fees for a period of 180 days from and after the May 12, 2022 windstorm. Passed and approved this 24th day of May, 2022. CITY OF BROOKINGS, SD Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0229,Version:1 Discussion and Possible Action to Authorize Funds for Workforce Housing Project. Summary: This item is for matching funds consideration for the Workforce Housing Project located on 15th Street South and 7th Avenue South. The developer is proposing to utilize the South Dakota Housing Opportunity Fund. Recommendation: Staff recommends approval. Attachments: Memo Workforce Housing Concept South Dakota Housing Opportunity Fund City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Council Meeting: May 24, 2022 Subject: Workforce Housing – 15th Street South and 7th Avenue South Presenter: Mike Struck, Community Development Director Summary: This item provides application assistance for a workforce housing project on 15 th Street South and 7th Avenue South. The developer is proposing to utilize the South Dakota Housing Opportunity Fund with recommended support from the city to include matching funds and land to reduce the sale price of each unit. This project was previously presented to Council at a work session and developed from a request for proposals. The draft Brookings housing plan recommends such action. Background: The City of Brookings acquired approximately 8 acres of property in the D & D Addition for drainage improvements and future street improvements of 15th Street South and 7th Avenue South. A small 2.3-acre parcel is not needed to complete the public improvements and the City identified an opportunity of expanding housing opportunities in this area. The City initiated a comprehensive process of Letters of Interest, Requests for Qualifications, and Requests for Proposals to develop workforce housing on the 2.3- acre site. During the subsequent submittal, review, and interview process, Clark Drew Construction’s proposal was selected to move forward with a Workforce Housing Project. In the summer of 2021, the City began construction on the drainage improvements, water, and sanitary sewer improvements for the future streets of 15th Street South and 7th Avenue South. These infrastructure improvements are necessary for the workforce housing project to move forward. A Tax Increment Financing District was created to assist the City with recovering the costs associated with the public improvements. In the interim, the developer has been working with the South Dakota Housing Development Authority on funding opportunities and is ready to proceed with an application for funding assistance from the South Dakota Housing Opportunity Fund. The Housing Opportunity Fund is a competitive application process whereby the applicant is awarded points based upon selected criteria. Item Details: The developer proposed a shovel-ready site and the City covered the soft costs of the project to minimize the developer’s risk while maintaining the proposed price points allowed by the South Dakota Housing Opportunity Fund. Rising construction costs associated with materials and labor have pushed the price points in the project to a range of $200,000 to $225,000. The original price points proposed for the Workforce Housing Project were in the $150,000 to $180,000 range. The developer is preparing an application for South Dakota Housing Opportunity funding and the application scoring criteria provides additional points for municipal support/participation in the project. The City’s goal is to assist with providing housing stock in the community for our working professionals, in a price range of $180,000 to $210,000. The Developer is proposing 18 to 20 housing units in the development and City staff supports a funding request to match South Dakota Housing Opportunity funds on a one-to-one basis. A combination of City funds and South Dakota Housing Opportunity funds would help bring the price points on a per unit basis into the $180,000 to $210,000 range, which is the price range targeted for workforce housing. If the City determines it is appropriate, staff would recommend the funding package include a contingency of City funds being matched by the South Dakota Housing Opportunity Fund or a similar program to further buy down the cost and reduce the developer’s risk on this new workforce development type. The project is located on city land that would be transferred. The benefit of the South Dakota Housing Opportunity funding is the South Dakota Housing Authority places a deed restriction on the housing unit with a 10-year time of affordability. The property is located within a Tax Increment Financing District and it is to the benefit of the City to have development occur in a timely manner, as well as address workforce housing opportunities. The Developer’s application for South Dakota Housing Opportunity funding is due May 31st. Legal Consideration: City Staff and City Attorney Steve Britzman will finalize administrative documents based on City Council’s action. Strategic Plan Consideration: The Workforce Housing Project is consistent with the City Council Strategic Plan, specifically with item #2 providing a Safe, Inclusive, Connected Community, and #5 Economic Growth by providing workforce housing opportunities meeting the needs of our business and industry labor force. Financial Consideration: $180,000 to $200,000 plus free land. The financial consideration is based on the successful award from the South Dakota Housing Opportunity Fund. Council can determine the appropriate matching fund in the future. Funds are available in multiple reserves related to this economic endeavor. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve as amended 3. Deny 4. Move the item to a study session 5. Discuss / take no action / table Staff supports funding workforce housing development. Supporting Documentation: Memo Workforce Housing Concept South Dakota Housing Opportunity Fund 2022-2023 HOF Allocation Plan As Approved by the SDHDA Board of Commissioners April 19, 2022 Applications Due: August 31, 2022; August 31, 2023 5:00 p.m. Central Time 3060 E. Elizabeth Street P.O. Box 1237 Pierre, SD 57501-1237 (605) 773-3181 FAX (605) 773-5154 www.sdhda.org Alternative formats of this document are available to persons with disabilities upon request. For information regarding Section 504 Accessibility, contact the South Dakota Housing Development Authority 504 Coordinator, Andy Fuhrman, at 1-800-540-4241. March 2022 P:\p-hd\development\Housing Opportunity Fund\Planning\2022- 2023\2022-2023 HOF Allocation Plan.docx Table of Contents I. PURPOSE ....................................................................................................................... 1 DEVELOPMENT OF RENTAL AND HOMEOWNERSHIP HOUSING ....................................... 1 II. POLICIES AND PROCEDURES ..................................................................................... 1 A. THE PLAN ..................................................................................................................................... 1 1. Distribution of Funds ................................................................................................................. 1 2. Application Cycle(s) and Deadlines .......................................................................................... 2 3. Limitations ................................................................................................................................. 2 4. Types of Financing .................................................................................................................... 2 5. Term of Financing ..................................................................................................................... 3 6. Leveraging/Match Requirement ................................................................................................ 3 7. Eligibility .................................................................................................................................... 3 8. Disclaimers ................................................................................................................................ 3 B. AMENDMENTS TO THE PLAN .................................................................................................... 4 III. GENERAL REQUIREMENTS .......................................................................................... 4 A. ELIGIBLE ACTIVITIES .................................................................................................................. 4 1. Rental Housing .......................................................................................................................... 4 a. Occupancy Requirements ..................................................................................................... 4 b. HOF Rents ............................................................................................................................ 5 c. Subsequent Rent Schedule, Utility Allowances, and Rent Adjustments............................... 5 d. Mixed Income Project ............................................................................................................ 5 e. Mixed Use Project ................................................................................................................. 5 f. Public Housing Notification ................................................................................................... 5 g. Annual Owner Certifications .................................................................................................. 6 h. Tenant Protections ................................................................................................................ 6 2. Homeownership ........................................................................................................................ 6 a. Homebuyer Qualifications ..................................................................................................... 6 b. Selling Price .......................................................................................................................... 6 c. Homebuyer Recapture / Resale Guidelines .......................................................................... 7 d. Lease-Purchase .................................................................................................................... 7 B. PERIOD OF AFFORDABILITY ..................................................................................................... 8 C. TENANT RELOCATION AND DISPLACEMENT .......................................................................... 8 D. GUARANTEES.............................................................................................................................. 8 IV. FUNDING PROCESS ...................................................................................................... 9 A. APPLICATION STAGE ................................................................................................................. 9 1. Project Finance Limits ............................................................................................................... 9 2. Financial Feasibility ................................................................................................................... 9 3. Reserve Accounts ................................................................................................................... 10 a. Taxes and Insurance ........................................................................................................... 10 b. Replacement ....................................................................................................................... 10 c. Operating ............................................................................................................................. 10 d. Transfer of ownership ......................................................................................................... 10 4. Determination of HOF Amount ................................................................................................ 10 B. CONDITIONAL COMMITMENT STAGE .................................................................................... 11 C. DISBURSEMENT OF HOF FUNDS............................................................................................ 11 1. Loan Documentation ............................................................................................................... 11 2. Project/Construction Start ....................................................................................................... 11 3. Draws ...................................................................................................................................... 11 4. Cost Certification ..................................................................................................................... 12 5. Loan Repayment ..................................................................................................................... 12 6. Recapture of HOF Funds ........................................................................................................ 12 V. PROJECT SCORING FOR HOUSING DEVELOPMENT ...............................................12 March 2022 P:\p-hd\development\Housing Opportunity Fund\Planning\2022- 2023\2022-2023 HOF Allocation Plan.docx A. LOCAL HOUSING NEED (MAXIMUM 100 POINTS) ................................................................. 12 B. INCOME TARGETING (MAXIMUM 100 POINTS) ..................................................................... 12 C. EXTENDED USE COMMITMENT (MAXIMUM 10 POINTS) ...................................................... 13 D. FINANCIAL SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS) ........................... 13 E. SERVICE ENRICHED HOUSING (MAXIMUM 20 POINTS) ...................................................... 13 F. PERCENTAGE OF SOFT COSTS USED FOR PROJECT COSTS (MAXIMUM 40 POINTS) .. 14 G. READINESS TO PROCEED CRITERIA ..................................................................................... 14 1. Plans and Specifications (Maximum 25 Points) ...................................................................... 15 2. Site Control (Maximum 25 Points) .......................................................................................... 15 3. Construction Financing (Maximum 30 Points) ........................................................................ 15 4. Permanent Financing (Maximum 30 Points) ........................................................................... 15 5. Zoning (Maximum 10 Points) .................................................................................................. 15 6. Platting (Maximum 10 Points) ................................................................................................. 15 H. PROJECT CHARACTERISTICS – Exhibit 4 (MAXIMUM 200 POINTS) .................................... 15 I. FINANCING TYPE (MAXIMUM 25 POINTS) .............................................................................. 16 VI. OTHER REQUIREMENTS .............................................................................................16 A. FAIR HOUSING AND EQUAL OPPORTUNITY ......................................................................... 16 B. LEAD-BASED PAINT .................................................................................................................. 16 C. CONFLICTS OF INTEREST ....................................................................................................... 16 D. DEBAREMENT AND SUSPENSION .......................................................................................... 16 E. HISTORIC PROPERTIES ........................................................................................................... 17 F. FLOOD INSURANCE .................................................................................................................. 17 VII. MONITORING FOR COMPLIANCE ...............................................................................17 VIII. DEFINITIONS ................................................................................................................17 EXHIBIT 1 REQUIRED SUBMISSIONS FOR COMPLETE APPLICATION .............................19 EXHIBIT 2 LOCAL HOUSING NEED REQUIREMENTS ..........................................................22 EXHIBIT 3 HOF RENTAL OR HOMEOWNERSHIP DEVELOPMENT APPLICATION CHECKLIST .............................................................................................................................24 EXHIBIT 4 MULTIFAMILY PROJECT CHARACTERISTICS ...................................................25 EXHIBIT 5 SINGLE FAMILY PROJECT CHARACTERISTICS ................................................31 EXHIBIT 6 HOF RENTAL OR HOMEOWNERSHIP DEVELOPMENT SELF SCORING WORKSHEET...........................................................................................................................36 EXHIBIT 7 CONSTRUCTION STANDARDS ............................................................................37 HOF PROGRAMS ....................................................................................................................39 I. POLICIES AND PROCEDURES ....................................................................................39 1. Distribution of Funds ............................................................................................................... 39 2. Application Cycle(s) and Deadlines ........................................................................................ 39 3. Limitations ............................................................................................................................... 40 4. Types of Financing .................................................................................................................. 40 5. Term of Financing ................................................................................................................... 40 6. Leveraging/Match Requirement .............................................................................................. 40 7. Eligibility .................................................................................................................................. 40 8. Disclaimers .............................................................................................................................. 41 A. AMENDMENTS TO THE PLAN .................................................................................................. 41 II. GENERAL REQUIREMENTS .........................................................................................41 A. ELIGIBLE PROGRAMS .............................................................................................................. 41 1. Homebuyer Assistance ........................................................................................................... 41 2. Homeowner Rehabilitation ...................................................................................................... 41 3. Homelessness Prevention ...................................................................................................... 41 B. PERIOD OF AFFORDABILITY ................................................................................................... 42 March 2022 P:\p-hd\development\Housing Opportunity Fund\Planning\2022- 2023\2022-2023 HOF Allocation Plan.docx III. FUNDING PROCESS .....................................................................................................42 A. APPLICATION STAGE ............................................................................................................... 42 B. CONDITIONAL COMMITMENT STAGE .................................................................................... 42 C. DISBURSEMENT OF FUNDS .................................................................................................... 43 1. Loan Documentation ............................................................................................................... 43 2. Program Start .......................................................................................................................... 43 3. Draws ...................................................................................................................................... 43 4. Loan Repayment ..................................................................................................................... 43 5. Recapture of HOF Funds ........................................................................................................ 43 IV. SCORING CRITERIA FOR HOF PROGRAMS...............................................................43 A. PROGRAM DEMAND (MAXIMUM 100 POINTS) ....................................................................... 44 B. INCOME TARGETING (MAXIMUM 100 POINTS) ..................................................................... 44 C. SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS) ............................................... 44 D. PROGRAM POLICY AND PROCEDURE MANUAL (MAXIMUM 30 POINTS) .......................... 44 E. MATCHING FUNDS (MAXIMUM 30 POINTS) ........................................................................... 44 F. FINANCING TYPE (MAXIMUM 25 POINTS) .............................................................................. 44 G. PARTNERING WITH OTHER AGENCIES (MAXIMUM 30 POINTS) ......................................... 45 V. OTHER REQUIREMENTS .............................................................................................45 A. FAIR HOUSING AND EQUAL OPPORTUNITY ......................................................................... 45 B. LEAD-BASED PAINT .................................................................................................................. 45 C. CONFLICTS OF INTEREST ....................................................................................................... 45 D. DEBAREMENT AND SUSPENSION .......................................................................................... 45 E. HISTORIC PROPERTIES ........................................................................................................... 46 F. FLOOD INSURANCE .................................................................................................................. 46 VI. MONITORING FOR COMPLIANCE ...............................................................................46 VII. DEFINITIONS ................................................................................................................46 EXHIBIT 1 REQUIRED SUBMISSIONS FOR COMPLETE PROGRAM APPLICATION ..........48 EXHIBIT 2 HOF PROGRAM APPLICATION CHECKLIST .......................................................49 EXHIBIT 3 HOF PROGRAM SELF-SCORING WORKSHEET .................................................50 EXHIBIT 4 HOMEBUYER ASSISTANCE .................................................................................51 EXHIBIT 5 HOMEOWNER REHABILIATION ...........................................................................53 EXHIBIT 6 HOMELESSNESS PREVENTION ..........................................................................54 March 2022 Page 1 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx SOUTH DAKOTA HOUSING OPPORTUNITY FUND 2020-2021 ALLOCATION PLAN I. PURPOSE The South Dakota Housing Opportunity Fund (HOF) is designed to promote economic development in South Dakota by expanding the supply of decent, safe, sanitary, and affordable housing for families and individuals in South Dakota. South Dakota Housing Development Authority (SDHDA) and the SDHDA Board of Commissioners (SDHDA Board) are responsible for the administration of HOF in accordance with SDCL 11-13. This Plan provides a system for allocation of HOF funds and HOF program income. HOF funds are intended for the development of rental or homeownership housing, the administration of down payment assistance and homeowner rehab programs, homelessness prevention activities, and infrastructure financing. This Allocation Plan is compartmentalized into three components: 1. Development of Rental and Homeownership Housing – pag es 1-38 2. HOF Programs – pages 39-55 3. Infrastructure Financing – pages 56-57 DEVELOPMENT OF RENTAL AND HOMEOWNERSHIP HOUSING II. POLICIES AND PROCEDURES A. THE PLAN 1. Distribution of Funds SDHDA will distribute HOF funds geographically throughout the State taking into consideration the following HOF distribution formula: Municipalities with a population of 50,000 or more 30 percent Other areas of the State 70 percent Ten percent of the HOF funds may be utilized for administrative expenses incurred by SDHDA and eligible Applicants applying for HOF for programs as outlined in Section III.B. The remaining funds will be distributed per the eligible activity as follows: Housing Development 75 percent Programs 25 percent If the approved applications for any area or activity are less than the percentages above, the remaining amount may be made available for qualified applications from the other geographical area or activity. March 2022 Page 2 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx If less than one million dollars is appropriated for any single HOF Application Cycle, the Housing Development and Program set asides will be eliminated and SDHDA may in its discretion limit the eligible activities for which applications will be accepted. 2. Application Cycle(s) and Deadlines Applications for housing development will be awarded on a first come, first serve basis with applications accepted January 1st through May 31st for rental housing and homeownership development. Applications accepted during this time frame, will follow the allocation plan guidelines as of January 1st of the application year. Any changes to the allocation plan will take effect during the August, 2022 application cycle, which is a competitive cycle. with applications due August 31st, 2022 / 2023. Applications received will be scored in accordance with Section V of this plan to ensure feasible and desirable projects are awarded funds. Housing development projects must score a minimum of 300 points to be considered for funding. Applications for Programs will be accepted annually, with 2022 applications due August 31st 2022, and 2023 applications due July 31st, 2023. Applications received will be scored in accordance with Section V of this plan to ensure feasible and desirable projects are awarded funds. Program applications must score a minimum of 100 points to be considered for funding. However, if after the August 2022 / 2023 application cycle, HOF funds remain unallocated or additional HOF funds become available, SDHDA may hold another application cycle or accept eligible applications on a first-come, first-serve basis. If SDHDA holds another application cycle (instead of accepting applications on a first-come, first-serve basis), SDHDA will provide an announcement of the additional cycle. Please refer to SDHDA’s website at www.sdhda.org for availability of funds. Applicants are encouraged to submit the online application that can be found on the SDHDA website. Completed applications (refer to Exhibit 1) must be electronically submitted or delivered (via U.S. Postal Service, private mailing service, or hand delivered) to SDHDA by 5:00 p.m. Central Time on the applicable due date. Applications via facsimile will NOT be accepted. 3. Limitations Taking into consideration the eligible activities for HOF, those being housing development and programs, no more than 25 percent of the annual available HOF funds may be awarded to any one developer/sponsor/owner and no more than 50 percent of a development’s total project costs or program budget can be financed by HOF, unless a waiver is granted by SDHDA Board of Commissioners. For calculation of the developer/sponsor/owner limitation, all of the developer/sponsor/owner’s applications, regardless of type of activity or project, will be combined for the calculation. 4. Types of Financing HOF funds may be requested as a loan or as a forgivable loan. HOF funds may also be used as a guaranty for other funding sources. If applicants are requesting HOF funds as a forgivable loan, the applicant must demonstrate the need for the funds as a forgivable loan. Consideration must be given to the AMI being served. March 2022 Page 3 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 5. Term of Financing HOF funds must be expended and disbursed within two years of the date of the Conditional Loan Commitment or the Subrecipient Written Agreement. Any HOF funds not disbursed by the due date may be de-obligated by SDHDA and returned to the available HOF allocation for the next application cycle. 6. Leveraging/Match Requirement HOF funds can be used to finance up to 50 percent of the projector program costs, with the remaining 50 percent being leveraged funds (or match). The leveraging of funds can be satisfied in a variety of ways such as funds provided as a loan or grant, donations (monetary or in-kind), etc. Funds used for leverage must be necessary for the development of the project. Sources of leverage must be identified within the application and documentation of such will be required prior to closing of the loan and disbursement of HOF funds. If applicants are unable to meet the requirement of 50 percent leveraged funds (match) applicants may request a waiver from the SDHDA Board of Commissioners. Thorough documentation of the reason for the waiver will be required at time of application. If HOF is utilized with another funding source offered by a city, the state, a federal, or SDHDA program, Applicant will be required to follow the most restrictive requirements. 7. Eligibility Eligible Projects. HOF funds may be used for new construction, acquisition and rehabilitation of rental housing, the purchase of homeownership housing, substantial or moderate rehabilitation of rental or homeownership housing, housing preservation, including home repair and rehabilitating homes to make them accessible to individuals with disabilities, homelessness prevention activities, and community land trusts. Housing developments previously receiving HOF funds will not be considered as an eligible project until such time the initial affordability period or the extended use period has been met. Eligible Applicants. Any for-profit entity, nonprofit entity, tribal government, housing authority, political subdivision of this state or agency of such subdivision, or agency of this state is eligible to apply for funding. No individuals may apply for funding directly unless authorized by SDHDA. Eligible Households. HOF funds shall be targeted to serve low to moderate income households with a maximum income at or below one hundred fifteen percent (115%) of the county area median income (AMI) or state area median income (AMI), whichever is higher, based on the U.S. Department of Housing and Urban Development (HUD) criteria. Applicants may further define eligibility within their particular project. 8. Disclaimers Regardless of ranking under the project selection criteria, SDHDA reserves the right to allocate HOF funds to any application if SDHDA determines in its sole discretion that such allocation furthers the HOF objectives. SDHDA reserves the right to deny HOF funds for any application that SDHDA determines in its sole discretion does not further the HOF objectives. March 2022 Page 4 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx With respect to housing development projects, SDHDA assumes no responsibility to make inspections during construction and/or rehabilitation and assumes no liability for construction quality or code compliance. SDHDA may do periodic on-site inspections to review the scope and progress of the project. The local building official will be required to approve both the proposed project and completed work. SDHDA reserves the right to exchange information with other city, state and federal agencies and with other parties as deemed appropriate. By submitting an application for HOF funds, the Applicant is acknowledging and agreeing to this exchange of information. B. AMENDMENTS TO THE PLAN This Plan may be amended for substantive changes by SDHDA at any time following public notice and public meeting. This Plan may be amended by SDHDA for non-substantive changes, including to comply with state law, clarify matters, or cure ambiguities, at any time, and such amendments will be fully effective and incorporated herein upon the SDHDA Board’s adoption of such amendments, without public notice and comment. III. GENERAL REQUIREMENTS A. ELIGIBLE ACTIVITIES Activities allowed under HOF include: 1. Rental Housing New construction, acquisition, rehabilitation, or conversion of a building for rental housing (permanent or transitional) are eligible activities. Eligible costs include land and/or building acquisition, rehabilitation, demolition of existing structures, improvements to the project site that are comparable with the surrounding projects, and utility connections including off-site connections from the property line to the adjacent street. Improvements to the project site may include on-site roads and sewer and water lines necessary for the development of the project. The project site consists only of that property owned by the project owner and upon which the project is located. The development must meet the applicable local and state building codes and acquisition costs cannot exceed the appraised market value of the property. Housing provided for homelessness prevention will be considered as housing development. HOF may be requested for new construction, acquisition, and/or rehabilitation of a shelter or transitional housing. Additional requirements for new construction and rehabilitation/conversion activities can be found in Exhibit 4 for multi-family housing and Exhibit 5 for single family housing. a. Occupancy Requirements During the affordability period, the HOF assisted rental housing units must be set aside for households at or below 115 percent Area Median Income (AMI) or further restricted to the March 2022 Page 5 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx AMI indicated in the application. The required AMI test must be met at initial occupancy and data evidencing compliance must be reported to SDHDA annually (Owner’s Certification). When HOF units become available for rent, the new household must also meet the occupancy requirements. For purposes of meeting affordable housing requirements for a project, the dwelling units specified as HOF units may be changed over the affordability period, so long as the total number of HOF units remains the same, and the substituted units are, at a minimum, comparable in terms of size, features, and number of bedrooms to the originally designated HOF units. b. HOF Rents Every HOF assisted rental unit is subject to rent limitations (HOF Rents) designed to ensure that rents are affordable to the respective tenants being served. HOF Rents cannot exceed the calculated rent of 30 percent of the adjusted income for the AMI being served by the proposed project, based on bedroom size. Rents must include allowances for utilities and services (excluding telephone, cable, and internet). Applicants are encouraged to utilize the allowances established by the local Public Housing Authority or calculate their own allowances based on documentation from service providers. c. Subsequent Rent Schedule, Utility Allowances, and Rent Adjustments SDHDA has the right to review all rent schedules and utility allowances. Any rent adjustments are required to have SDHDA approval prior to implementation. Utility allowance analysis must be completed annually by the site manager and submitted to SDHDA for review and any adjustments approved by SDHDA. d. Mixed Income Project All HOF funds used in conjunction with a mixed-income project must be used solely for the benefit of the HOF units in the project. Each building in a project must include HOF units. Common area costs will be prorated between the number of HOF units and the number of other units. e. Mixed Use Project A building that is designed in part for other than residential housing may qualify as affordable housing under the HOF program if such housing meets the rent limitations in the Occupancy Requirements and HOF Rents sections. The laundry or community facilities that a project contains for the exclusive use of the project residents and their guests are considered residential use. Costs for common areas shared by both residential and commercial tenants will be prorated. Each building in a project must contain residential living space. Commercial buildings that are rehabilitated for rental use, are eligible for funding under the HOF Program. Adequate off-street parking must be provided. f. Public Housing Notification At the time of application, all Applicants proposing the use of HOF funds for rental housing must notify local public housing agencies of the proposed project. March 2022 Page 6 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx g. Annual Owner Certifications Annual re-certification of existing rents will be required; h. Tenant Protections The lease between a tenant and the owner of rental housing assisted with HOF funds must be for at least one year, unless by mutual consent the tenant and the owner agree to a shorter term, and may not contain any prohibited lease terms as established by SDHDA. Tenant selection and termination of any tenancy are also subject to SDHDA standards and requirements. 2. Homeownership Funds may be used for new construction, or acquisition with rehabilitation of single-family housing units. Funds may also be used for the development of affordable lots in housing subdivisions if construction of single-family housing units will begin within 12 months of land purchase. The Applicant will have six months from the date of the Conditional Loan Commitment to begin construction on the proposed project. Land banking - the acquisition and holding of land for future use - is prohibited. Eligible costs include land and/or building acquisition with rehabilitation, demolition of existing structures, improvements to the project site that are comparable with the surrounding projects, and utility connections including off-site connections from the property line to the adjacent street. Improvements to the project site may include on-site roads and sewer and water lines necessary to the development of the project. The project site consists only of that property owned by the project owner and upon which the project is located. The development must meet the applicable local and state building codes, and acquisition costs cannot, without prior SDHDA approval, exceed the appraised market value of the property. Funds may also be used to provide development subsidy to homeownership projects which have appraisal gaps. Appraisal gap is defined as the difference between the cost to develop a unit and the appraised value of said unit. The maximum amount of subsidy per unit is $20,000. Any HOF unit utilizing development subsidy must remain affordable for a 10-year period of affordability. SDHDA will place a covenant on the property to ensure the period of affordability is met. Additional requirements for construction standards and requirements can be found in Exhibit 6. a. Homebuyer Qualifications The homebuyer must utilize the HOF assisted residence as his or her principal residence. All homebuyers on the mortgage must participate in homebuyer education, and if warranted, homebuyer counseling and credit counseling. b. Selling Price The selling price of the home shall not exceed the appraised value. For homebuyer activities involving acquisition and rehabilitation, the estimated total cost of the acquisition and rehabilitation, shall not exceed the appraised value. March 2022 Page 7 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Applicants are to carefully consider the AMI being targeted and develop housing accordingly. SDHDA may reject proposals if the anticipated resale cost of the home is not reasonable for the AMI being served. To help make this determination, the Applicant must consider the percentage of the homebuyer’s income that can be used to pay the principal, interest, taxes, and insurance (PITI). Typically, this is equivalent to PITI being 30 percent or less of the homebuyer's family income. c. Homebuyer Recapture / Resale Guidelines If the property is sold during the HOF program affordability period, the initial and subsequent owner of the property is entitled to receive a fair return on investment. Fair return on investment shall be defined as a sale price no greater than the increase or decrease in the value of the property based the Federal Housing Finance Agency’s House Price Index (HPI) and any capital improvements made to the property. Any increase or decrease in the HPI during the time the owner owns the home shall be added or subtracted from the original sales price at the time of the initial or subsequent sale. SDHDA will use the calculator at https://www.fhfa.gov/DataTools/Tools/Pages/HPI-Calculator.aspx to determine the maximum allowable sale price for a subsequent purchase. Refer to the SDHDA Homebuyer Assistance Policy & Procedure Manual which can be found on the SDHDA website. If the initial homebuyer sells the HOF financed home prior to the end of the affordability period as defined in Section III.B., SDHDA will recapture the lesser of the SDHDA calculated amount or net sale proceeds. Net proceeds of a sale are the sales price minus non-HOF loan repayments for prior lien mortgages and any closing costs. The SDHDA calculated amount will be determined by either the program parameters as established by the Applicant, or no less than the current HOF balance. HOF provided as a forgivable loan can be forgiven on an annual basis as the household meets program requirements, based on no less than a 60-month term. d. Lease-Purchase Applicants may provide homeownership through a lease-purchase housing option. The homebuyer must purchase the housing within 36 months of signing the lease-purchase agreement. If at the end of the 36-month period, the household occupying the lease-purchase unit is not eligible or able to purchase the unit, SDHDA may allow an additional six months to identify an eligible homebuyer to purchase the unit. In all cases, if the unit is not purchased by the end of the 42-month project completion period, it must turn into a HOF rental unit and the HOF affordability requirements for rental housing will apply. The housing unit may revert back to homeownership at a future date with approval by SDHDA. The homebuyer must qualify at 115% AMI at the time the lease-purchase agreement is signed. A qualifying homebuyer may choose to purchase the unit immediately or may lease the unit for up to 36 months while preparing for homeownership. A minimum of five percent of the unit’s predetermined purchase price must be set aside to assist with downpayment and closing costs. If the homebuyer violates the purchase contract for any reason, the homebuyer forfeits the downpayment set aside. The Applicant may then select another HOF qualified homebuyer to continue the lease. The new homebuyer will receive any downpayment set aside remaining after necessary repairs are made. March 2022 Page 8 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx B. PERIOD OF AFFORDABILITY In consideration of providing HOF for affordable housing, the housing must be kept in compliance and restricted by HOF guidelines for the minimum affordability period specified below, or for the term of the HOF financing, whichever is longer. Additional information regarding SDHDA’s monitoring for compliance can be found in Section VII of this Plan. Activity Years of Affordability 5 10 15 20 New Construction or Reconstruction of Rental Housing with HOF funds invested per HOF unit as follows: Under $50,000 X $50,000 to $100,000 X Over $100,000 X Rental Housing (Rehabilitation or Acquisition of existing housing) with HOF funds invested per HOF unit as follows: Under $50,000 X $50,000 to $100,000 X Over $100,000 X Homeownership Projects Under $15,000 X Over $15,000 X Homebuyer Assistance on New Construction Under $15,000 X Over $15,000 X C. TENANT RELOCATION AND DISPLACEMENT SDHDA typically will not allow permanent displacement of current residents of any project funded with HOF funds. If Applicant is proposing displacement of current residents, Applicant is encouraged to contact SDHDA early on to discuss the situation. D. GUARANTEES SDHDA will require guarantees from the underlying corporate and individual owners of the general partner(s) of the Developer, the individual owners of any “shell entities” with an ownership interest in the Developer or in the Developers general partner(s), and from any guarantors required by other financing sources investing in the project. A guarantee of completion will ensure that the Developer will construct and complete the project. A guarantee of performance will ensure that the project will operate in compliance with all applicable federal, state, and local laws and regulations. A guarantee of reserves will ensure that annual deposits will be made to a replacement reserve account in the amount specified in the loan documents. March 2022 Page 9 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx IV. FUNDING PROCESS Requests for HOF funds are considered in a two-step process: Application and Conditional Commitment. No new construction, acquisition, or rehabilitation activities may begin until a start order has been issued by SDHDA. SDHDA reserves the right to not process any application that SDHDA determines is not: (1) complete; (2) consistent with the purposes and goals of this Plan; (3) proposing an eligible activity; or (4) financially feasible. A. APPLICATION STAGE The Applicant must submit a complete application and all documentation referenced in Exhibit 1. Applications will be evaluated according to the following standards. 1. Project Finance Limits To ensure efficient use of HOF for development of housing units, SDHDA will review the proposed project costs including: land, site improvements (including existing buildings), construction or rehabilitation costs, fees (architectural, legal, consulting, etc.), developer’s and/or builder’s profit, financing and carrying charges, and all other related soft costs. SDHDA reserves the right to reject any application that it determines, in its sole discretion, to have excessive total project costs. Applicants must take into consideration the marketability of the proposed housing units. A component of marketability is residential unit living square footage. SDHDA has established the following residential unit living minimum square footage (sq. ft.) requirements: Group Home – 130 sq. ft. (per bedroom) Single Room Occupancy (SRO) – 300 sq. ft. 0-bedroom (efficiency) – 400 sq. ft. 1-bedroom – 500 sq. ft. 2-bedroom – 650 sq. ft. 3-bedroom – 800 sq. ft. 4 bedroom –950 sq. ft. Acquisition and rehabilitation projects are not subject to the above minimum square footage requirements. SDHDA may waive the minimum square footage requirements, but only when it is justified as being reasonable based on the needs of the tenants being served. 2. Financial Feasibility Feasibility of all applications will be reviewed. For rental development, the long-term financial feasibility must be demonstrated with the submission of a pro forma, reflecting a debt service coverage ratio of not less than 1.20 for the entire affordability period or the term of the loan, whichever is longer. The debt coverage ratio is the net operating income to the total annual debt service. Furthermore, the application must reflect that rental income, any subsidies and reserve funds are sufficient to cover the property’s debt and operating expenses over the period of affordability. Annually, income will be trended at two percent (2%), expenses and replacement reserves will be trended at three percent (3%), and vacancy will be projected at March 2022 Page 10 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx seven percent (7%). A higher vacancy rate may be used for an acquisition/rehabilitation project if the project is currently sustaining higher vacancies and it is not reasonable to expect the project to achieve a seven percent vacancy rate within the first year. Balloon loan repayments will not be allowed. 3. Reserve Accounts To protect financial feasibility, the owner will be required to establish and maintain proper reserve accounts which may be held in escrow by SDHDA. If an existing property does not have established reserve accounts, the Applicant must provide notice to SDHDA at time of application in order to determine how to sustain long-term feasibility. a. Taxes and Insurance Escrowed at levels estimated to meet projected expenses. b. Replacement Minimum of $400 per unit, per year, must be initially funded and maintained for the full term of the HOF period of affordability and extended use period or while the SDHDA HOF loan is outstanding, whichever is longer. If not all major systems are replaced or repaired in a rehabilitation project, sufficient reserves must be established to allow for replacement of such components if the normal life span would require such replacement prior to the end of the affordability period and extended use period. c. Operating Minimum of six months operating reserve from a non-HOF funds source to be used only to pay debt service and operating expenses to prevent an event of default. This account must be maintained for the full term of the HOF period of affordability and extended use period or while the SDHDA HOF loan is outstanding, whichever is longer. An Irrevocable Letter of Credit will also satisfy this requirement. d. Transfer of ownership Must be approved by SDHDA. At such time SDHDA is reviewing the request for transfer of ownership, SDHDA may negotiate with existing owner regarding the dollar amount that must be maintained in the operating reserve account, taking into consideration, but not limited to, the physical condition of the development, demand in the housing market, and experience of the proposed owner. 4. Determination of HOF Amount HOF funds are intended to be used as gap financing to make a project financially feasible and may be provided as a loan or as a forgivable loan. The difference between total project costs and total available financing resources (including owner equity requirements) is referred to as the gap. If HOF funding is in the form of a loan, the payback schedule and interest rate, which will be from zero to four percent, will be determined based on the project's feasibility. Based on this evaluation, SDHDA will estimate the amount of HOF funds to be reserved for each application. The analysis to determine the necessary amount of HOF funds will be done at the time of application, at the time a conditional commitment is approved, and at the time the project is placed in service, provided all project costs are finalized and certified. Current rents, along with any anticipated changes in operating expenses, will be utilized at each underwriting stage. March 2022 Page 11 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx B. CONDITIONAL COMMITMENT STAGE Upon notification of a conditional commitment from the SDHDA Board, SDHDA will issue a Conditional Loan Commitment to the Applicant outlining the terms and conditions of the HOF funding. The applicants will be required to accept the Conditional Loan Commitment by returning the signed letter within 30 days of board approval. Failure to accept the Conditional Loan Commitment may result, in SDHDA’s sole discretion, in a forfeiture of the HOF Award. Applicants will be required to provide additional information and documentation as outlined in Exhibit 1. The Applicant will have six months from the date of the agreements to provide the necessary documents, close the HOF loan and begin construction or rehabilitation on the proposed project. Failure to start within this timeframe may result, in SDHDA’s sole discretion, in a forfeiture of HOF funds. Changes to Project. The award of HOF funds is based upon information provided in the application and supporting documentation. Any significant change in an application, once it has been ranked and awarded HOF funds, may result, in SDHDA’s sole discretion, in a forfeiture of HOF funds. A significant change may include, but is not limited to, any reduction in the number of bedrooms per unit or square footage of the units, decrease in number of total units, change in financial feasibility, income being served, project amenities, location, services being offered or any change that, had it been in the original project, might have resulted in the project receiving a different ranking or may have influenced the conditional commitment of HOF funds. Any changes to the project must be pre- approved by SDHDA prior to implementation. C. DISBURSEMENT OF HOF FUNDS 1. Loan Documentation Loan documents may include but are not limited to a Conditional Loan Commitment, Written Agreement, Mortgage Note, Mortgage 180 Day Redemption, Security Agreement, and Fixture Filing, Assignment of Rents and Leases, Declaration of Land Use Restrictive Covenants, Personal Guarantee, Corporate Guarantee, and Sworn Construction Statement, as applicable. 2. Project/Construction Start A HOF financed project, new construction, or rehabilitation of a building(s) may begin when SDHDA has received all executed loan documentation and the applicant has received a written authorization to start from SDHDA. The project must begin, or construction must commence, no later than six months after execution of the Conditional loan commitment. 3. Draws For housing development, SDHDA will typically disburse funds at 25 percent, 50 percent, 75 percent and 100 percent of construction completion based on receipt of lien waivers from all contractors, bills and receipts for all costs outside of the construction contract, an updated Sworn Construction Statement, AIA Forms G702 Application and Certificate for Payment and G703 Continuation Sheet evidencing the percent of project completion, as applicable. SDHDA will retain 10 percent of final draw until all final project completion information is received, a portion of which will be the final payment of the Developer’s fee. SDHDA will make periodic site reviews of the project throughout the construction period and at the completion of construction. March 2022 Page 12 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 4. Cost Certification For projects receiving more than $250,000 of HOF funds, or projects with over $500,000 total project cost, the owner will be required to submit a complete cost certification on SDHDA approved forms prepared by a Certified Public Accountant prior to the final disbursement of HOF funds. All cost overruns are the responsibility of the owner. SDHDA may reduce the amount of HOF funds committed to a project based on a cost certification indicating reduced total project cost, change in financing, or increase in cash flow since the time of the HOF funds commitment. 5. Loan Repayment HOF loan repayment will begin approximately six months from the date the project is placed in service with interest accrual beginning at time of the first disbursement of loan proceeds. Loan forgiveness or loan repayment terms and conditions will be further defined in the Promissory Note. 6. Recapture of HOF Funds Unless otherwise noted in the HOF loan documents, HOF funds provided for housing units are subject to recapture by SDHDA if HOF criteria are not met, including but not limited to meeting the affordability requirements. Any funds recaptured by Subrecipient must be returned to SDHDA. Penalties, including interest for the period of time during which the property was out of compliance, may apply. If HOF funds are expended on a project that is terminated prior to completion, the HOF funds previously disbursed must be repaid with interest calculated based on one-year Treasury rates as of the date of cancellation. V. PROJECT SCORING FOR HOUSING DEVELOPMENT Proposals will be reviewed initially for completeness, including all submission requirements referenced in Exhibit 1 and scored based on the following selection criteria. Housing development projects must score a minimum of 300 points to be considered for funding. A. LOCAL HOUSING NEED (MAXIMUM 100 POINTS) All Applicants must submit a narrative addressing and documenting the local housing need. Refer to Exhibit 2 for additional information on what is required for documenting the local housing need. The applications for communities considered to be facing the highest overall housing need will receive the highest score. All other applications will be ranked against the highest scoring Applicants. Communities with two or more low-income housing projects under construction or in the process of rent-up (less than 90 percent occupied) may receive zero points in this category. Communities demonstrating increased economic development and the immediate demand for housing will be considered as having a greater housing need. B. INCOME TARGETING (MAXIMUM 100 POINTS) Each of the following set-aside elections are separate and can be combined for up to 100 points and up to 100 percent of the units being restricted. An application can elect to set aside units for different AMIs, but a unit cannot be used to serve more than one set-aside election. March 2022 Page 13 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx % of Units Restricted AMI Target Points Awarded 100% 30% 100 100% 50% 70 100% 80% 50 100% 115% 20 For example, a proposal that elects to set aside HOF assisted units for households not exceeding 30 percent of AMI will receive 100 points if 100 percent of the units are set aside for 30 percent AMI. If only 50 percent of the units are set aside at 30 percent AMI, the applicant would receive 50 points. C. EXTENDED USE COMMITMENT (MAXIMUM 10 POINTS) Applicants who make a commitment to extend the affordability period for 10 years beyond the required affordability period as defined in Section III. B. Period of Affordability will receive 10 points. Applicants choosing to extend the affordability period will be prohibited from applying for HOF for the same development during the extended use period. D. FINANCIAL SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS) Proposals containing one of the following will receive up to 25 points: a. Financial support from local governmental/private incentives, including but not limited to cash, in-kind services, or tax abatements, to reduce project costs or enhance feasibility; or b. Other private or foundation assistance to achieve greater affordability; or c. Non-fee-based partnerships with other agencies which enhance the capacity of the Applicant. E. SERVICE ENRICHED HOUSING (MAXIMUM 20 POINTS) Projects providing verifiable on-site services to tenants which may include but are not limited to the following types of projects may receive up to 20 points depending upon the extent of the services. Refer to Section IX Definitions for further guidance on service enriched housing. a. Homeless b. Persons with physical disabilities c. Persons with mental disabilities d. Persons with developmental disabilities e. Housing for Older Persons 62 or Older f. Other Note: SDHDA, the Department of Human Services (DHS), and the Department of Social Services (DSS) have entered into an agreement whereby full integration of citizens with disabilities into individualized housing settings rather than group home type housing will be promoted. All housing designed specifically for people with disabilities must receive prior March 2022 Page 14 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx approval from DHS and/or DSS before submitting an application to SDHDA. Documentation of approval or that an application has been submitted to DHS or DSS must be submitted with the application. Applicants serving the homeless are required to participate in the Homeless Management Information System (HMIS), through SDHDA. F. PERCENTAGE OF SOFT COSTS USED FOR PROJECT COSTS (MAXIMUM 40 POINTS) Reasonable and necessary soft costs associated with the development of housing may include the following: a. Architectural, engineering or related professional services. b. Financing costs such as origination fees; credit reports, title insurance, fees for recording and filing of legal documents, building permit fees, attorney’s fees directly related to the project; appraisal fees and fees for independent cost estimates; and developer’s fee or builder’s fee. c. Costs for an audit or cost certification that SDHDA may require with respect to the development of the project. d. Costs to provide information services such as affirmative marketing and fair housing information to prospective homeowners and tenants as required by Fair Housing. e. Developer’s Fees may not exceed 10 percent of the total project costs. The Developer Fee includes the Consultant’s Fee and will be limited to the fee calculated at the time of Board reservation. If developers defer their Developer Fee, the amount deferred will be underwritten as a project financing source. f. Consultant’s Fees will be included within the Developer’s Fee limitation, but individually cannot exceed two percent of the total project costs. The Consultant will be expected to provide services through completion of the development. g. Builder/General Contractor’s Fees: Builder's Profit is limited to six percent, Builder's Overhead is limited to two percent, and General Requirements is limited to six percent of the total project hard costs for the project. An application with soft costs that are less than 20 percent the total project costs will be awarded up to 40 points as set forth below: % Soft Costs Points Awarded 0.00% - 9.99% 40 10.00% - 14.99% 30 15.00% - 19.00% 20 Soft costs include, but are not limited to all items in a - g of this section and operating and rent-up reserves, origination fees, and partnership organizational fees. G. READINESS TO PROCEED CRITERIA SDHDA, at its discretion, may award up to 130 points to projects that most clearly demonstrate readiness to proceed. Such determination will include the following factors: March 2022 Page 15 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 1. Plans and Specifications (Maximum 25 Points) Applications containing architectural plans/working drawings that are at least 50 percent complete or a physical needs assessment for rehabilitation projects will be awarded 25 points. 2. Site Control (Maximum 25 Points) Applications containing documentation that the Applicant and/or owner has a recorded warranty deed, a recorded long-term lease, or approval of Transfer of Physical Assets (TPA) from the appropriate HUD, Rural Development, or SDHDA office for existing projects in the name of the Applicant will receive 25 points. Applications containing an option agreement will receive 10 points. Applications containing a letter of interest will receive 5 points. Applicants should be cautioned that a conditional commitment of HOF funds is site specific, therefore any changes to the site may require a full review of the application and reconsideration by SDHDA. 3. Construction Financing (Maximum 30 Points) Applications containing documentation of enforceable construction/interim financing commitments executed by the Applicant and Lender, as applicable for the project, will receive up to 30 points. 4. Permanent Financing (Maximum 30 Points) Applications containing documentation of enforceable permanent financing commitments executed by the Applicant and Lender, and disclosing a fixed interest rate, term of at least 15 years, and all conditions may receive 30 points. Generally, an enforceable financing commitment is a written approval of a loan or grant from a lender which is subject only to conditions of which are within the Applicant’s control (other than the award of other funding). The loan commitment must contain a representation and acknowledgement from the lender that such lender has reviewed the HOF application submitted by the Applicant to SDHDA in support of the HOF for the project to which such commitment relates and that such lender acknowledges that the project will be subject specifically to rent and income restrictions and other special use restrictions agreed to by the Applicant. Commitment with fixed rate and term of less than 15 years may receive 10 points. 5. Zoning (Maximum 10 Points) Applications containing documentation that the project site is properly zoned for its proposed use will receive 10 points. 6. Platting (Maximum 10 Points) Applications containing documentation that the project site has had a final plat recorded (includes referencing plat book and number) will receive 10 points. H. PROJECT CHARACTERISTICS – EXHIBIT 4 (MAXIMUM 200 POINTS) Points will be awarded up to 200 points based on the Exhibit 4 that has been completed (points indicated) and signed by the Applicant and architect. Characteristics indicated by the March 2022 Page 16 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Applicant and architect will be verified by SDHDA staff based on final architectural plans, specifications, and a physical inspection prior to final disbursement of HOF funds. I. FINANCING TYPE (MAXIMUM 25 POINTS) HOF funds may be utilized in a variety of financing options. Forgivable loans will receive zero points. Points will be awarded as follows: Financing Options Points Awarded Guaranty or Regular Amortization Loan 25 Irregular Amortization Loan 15 Cash Flow/Deferred Mortgage 5 VI. OTHER REQUIREMENTS A. FAIR HOUSING AND EQUAL OPPORTUNITY All Applicants and owners must adhere to Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, which prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and disability. Additional information can be found at - https://www.hud.gov/program_offices/fair_housing_equal_opp. B. LEAD-BASED PAINT Applications that involve the renovation, sale or leasing of housing units built before 1978, must address the potential of lead-based paint hazards. Before renting or selling pre-1978 housing, landlords and sellers must disclose the presence of known lead-based paint and lead-based paint hazards in the dwelling. In addition, rehabilitation, renovation, repair, and painting activities that disturb lead-based paint (like sanding, cutting, replacing windows, and more) must be done within safe work practices. For additional information regarding lead based paint and safe work practices, please visit the following websites – https://www.epa.gov/lead or - https://www.hud.gov/program_offices/healthy_homes/healthyhomes/lead. C. CONFLICTS OF INTEREST Applicants must disclose to SDHDA if any conflicts of interest exist. A conflict of interest is deemed to exist whenever an individual is in the position to approve or influence the policies or action of the project which involve or could ultimately harm or benefit financially: (a) the individual; (b) any member of his immediate family (spouse, parents, children, brothers or sisters, and spouses of these individuals); or (c) any organization in which he or an immediate family member is a Director, trustee, officer, member, partner or more than 10% shareholder. Service on the board of another nonprofit corporation does not constitute a conflict of interest. D. DEBAREMENT AND SUSPENSION Owners and contractors are prohibited from employing, awarding contracts, or funding any contractors or subcontractors that have been debarred, suspended, proposed for debarment or placed on ineligibility status by the federal government. In addition, any owners who are debarred, suspended, or proposed for debarment will be prohibited from participating in the March 2022 Page 17 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx HOF program. Those excluded from participating are listed on the Excluded Parties List System found at https://www.sam.gov/SAM/. E. HISTORIC PROPERTIES Applicants proposing rehabilitation of a structure which is over 50 years old should contact the local and State Historical Preservation Offices to determine if the proposed rehabilitation will have any effect on the historical significance of the structure or if adherence to the National Historic Preservation Act (16 U.S.C. 470) is required. F. FLOOD INSURANCE SDHDA will not allow HOF funds to be used for rehabilitation of housing units that are located in FEMA designated special flood hazard areas, unless flood insurance has been purchased for the property or the property is located in an area of low risk and the proposed rehabilitation was not caused by flooding, drainage, or other ground water issues. VII. MONITORING FOR COMPLIANCE HOF program compliance will be assessed through annual reporting, certifications, and on-site reviews conducted by SDHDA staff. SDHDA will provide a HOF program compliance guide detailing required responsibilities and provide compliance training for Applicants. SDHDA will require the owner or management company to attend Fair Housing compliance training prior to final disbursement of funds and at a minimum of once every three years from the date of final disbursement of funds. SDHDA may impose financial penalties for non-compliance. All HOF program, rent, and occupancy requirements, along with other special use restrictions imposed under the Plan, will be made part of the Subrecipient Agreement. VIII. DEFINITIONS Affordability: Affordability refers to the requirements of the HOF program that relate to the cost of housing both at initial occupancy and over established timeframes. Affordability requirements vary depending on the nature of the HOF assisted activity (i.e., homeownership or rental housing) and the amount invested. Affordable Housing: Housing that is affordable if the total housing costs, which includes rent, utilities, mortgage, and related expenses, represents no more than thirty percent of gross household income for the AMI being served. Affordable Units: Housing units targeted for 115 percent of AMI or less. Annual Income: For rental housing, SDHDA uses the annual income definition as defined in 24 CFR Part 5.609 (Part 5 Annual Income). For homebuyer activities, SDHDA uses the adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual federal annual income tax purposes. Applicant: Applicant refers to the owners, developers, and sponsors involved with the project. March 2022 Page 18 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Area Median Income (AMI): The income determined by HUD on which HOF income limits and rent limits are based. Builder’s Profit: Compensation to the builder for completing the construction contract. Builder’s Overhead: Builder's business expenses (e.g., rent, insurance, heating, etc.) not chargeable to a particular part of the work or product to build the project. Commitment: The written, legally binding agreement between SDHDA and the project owner providing HOF funds to a project. HUD: U.S. Department of Housing and Urban Development. HUD Housing Quality Standards (HQS): The performance standards for housing as established in 24 CFR Part 882 and amended by the Lead Paint Regulations in 24 CFR Part 35. Service Enriched Housing: Projects providing affordable rental housing (permanent or transitional) that include services and assistance that are available to residents upon request. The services must be unique to the property, verifiable, on-site, long-term, and provided on a daily or continuous basis. The services may be provided by the owner, the management company, or a third-party organization but must be tailored to individual residents and managed by the property. There must be a definable increase in project development costs and or operating cost to the owner to be able to provide the services. The application must include a letter of intent from the service provider detailing the services to be provided, the tenants that will receive the services, the method of delivering the services, and the staffing for the services which may include but is not limited to the following: a. Homeless b. Persons with physical disabilities c. Persons with mental disabilities d. Persons with developmental disabilities e. Housing for Older Persons 62 or older (Assisted Living or Congregate Care Facilities as defined under Definitions) f. Assisted Living or Congregate Care Facilities as defined under Definitions g. Other Services and assistance are not a requirement for tenancy but there must be a mechanism for immediate support and assistance when requested by any resident. Single-Family Project: A project consisting of individual single-family dwellings or a project with one or more buildings containing four or less units per building. March 2022 Page 19 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 1 REQUIRED SUBMISSIONS FOR COMPLETE APPLICATION A. Applications must be submitted using the appropriate SDHDA HOF Application Form. There are four separate application forms – Rental Development, Homeownership Development, Housing Infrastructure, and Programs. SDHDA may reject applications with incomplete or incorrect information. For an application to be considered as complete, the application form must be completed and signed and the application must include the following items. Applications submitted for Rental or Homeownership Development must include the following: 1. Completed and signed application form. 2. Documentation of Local Housing Need (Section V.A. and Exhibit 2). 3. Project narrative outlining the project and program characteristics (services provided, tenants served, amenities provided, financing proposed, etc.). 4. At least two letters of local support for the proposed housing units. The letters must be from local organizations such as the city office, economic development corporation, public housing authority, employers, commercial lenders, etc. 5. Information regarding the Applicant/owner, including staff and years of experience in housing or related field or service area. i.e. resume’s 6. Copy of utility allowance calculation and supporting documentation from the local Public Housing Authority or utility provider – required for rental projects only. 7. Pro Forma for the entire affordability period, extended use, or the term of the HOF loan, whichever is greater (Section IV.A.2.) – required for rental projects only. 8. Supporting documentation for all annual operating expenses evidencing how the Applicant arrived at the proposed amounts (e.g., calculation of real estate taxes from county assessor). If the proposed project involves rental acquisition and/or rehabilitation, this requirement may be met with the submission of three years of historical financial information – required for rental projects only. 9. Documentation of site control. i.e. recorded deed, signed purchase agreement 10. Architectural plans containing a site plan showing the general build-up of the site including the location of all proposed building, streets, parking areas, service areas, playgrounds, etc., and typical floor plan, providing dimensional plan for each typical living unit (Section V.G.1.). 11. Documentation of how the project site is zoned at the time of application and documentation that reflects the current status of a project’s plat (Section V.G.5 and 6). i.e. zoning letter from the City or County March 2022 Page 20 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 12. Letter of notification to the applicable local housing authority – required for rental projects only. 13. Completed Exhibit 4 signed by the Applicant and Architect indicating the features included in the project (Section V.H. and Exhibit 4). 14. If applicable, letter of intent from the service provider detailing the services, the tenants who will receive the services, the method of delivering the services that will be provided, and the staffing for the services (Section V.E.) – required for rental projects only. 15. Letter of intent evidencing the preliminary arrangements for construction, interim, and permanent financing, including the amount of the loan, the interest rate, and the term (Section V.G.3. and 4). a. NOTE: Interim financing (bridge loan) fees will not be allowable project costs if financing is provided by an entity or individual having a financial, business, or family relationship with the developer, builder, syndicator, or Applicant. Only interest costs at or below market rate will be allowed. 16. If applicable, documentation of support from local sources (Section V.D.). 17. For projects involving acquisition and/or rehabilitation: a. Relocation plan and budget; b. List of tenants occupying the property currently and for the four months previous to application submission. c. Three years of historical financial information. d. Detailed description of the rehabilitation to be completed for the exterior, interior and by apartment unit and the corresponding cost. To obtain points under Section V.G.1. (Readiness to Proceed Criteria) Applicant must submit a physical needs assessment. 18. Documentation of utility availability (i.e. water, sewer, electric, natural gas) or proposed dates as to when all utilities will be available at the project location. i.e. letters from all applicable utility providers stating availability 19. If applicable, copy of Consultant Agreement. 20. If applicable, copy of Lease Purchase Management Plan. 21. Any other information requested by SDHDA B. Conditional Commitment All requirements in this section must be provided, within 120 days from the date of the Conditional Loan Commitment or the Subrecipient Written Agreement and before closing and funding of the HOF financing. Applicants for housing development must submit the following: 1. Information on the ownership entity, including an executed copy of the partnership agreement or articles of incorporation, or articles of organization; a copy of the certificate March 2022 Page 21 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx of registration from the Secretary of State in the State of South Dakota; and a copy of federal taxpayer identification number. 2. An affidavit executed by the owner, general partner, or an officer or a director stating that under penalties of perjury all facts and statements contained in all documents and exhibits submitted in conjunction with the application for HOF funds are true and accurate to the best of his or her knowledge. 3. Signed commitments for all funding sources (conventional lender, foundations, local financing, etc.) associated with the project including the amount, conditions, rate and term. 4. Any additional information SDHDA may deem necessary. In addition to the above, applicants for new construction and rehabilitation of housing units for both rental and homeownership must submit the following: 1. Signed commitments for all funding sources (conventional lender, foundations, local financing, etc.) associated with the project including the amount, rate and term. 2. Site ownership documented by a recorded contract for deed, warranty deed, or long-term lease (lease must be for longer than the minimum affordability requirement or through the extended use period). All ownership by contract for deed must include an amendment to the contract which states the deed holder is knowledgeable of and agrees to comply with all requirements of the HOF Program regulations for the period of affordability and/or any extended use pledged in the application. 3. Final itemization of the project costs including both hard cost and soft costs (including a copy of the contractor’s contract). 4. Final architectural plans and specifications. Architectural plans for new construction of rental units must be stamped by the project Architect and Engineer. 5. Copy of the proposed management plan, management agreement, resident selection policy, Section 504 reasonable accommodation policy, and the intended lease to be utilized for the project – required for rental projects only. 6. Projects involving acquisition of an existing property must submit a “Market Value As Is” appraisal. Projects involving rehabilitation or new construction must submit a “Market Value As If Completed” appraisal. Such appraisals must meet the Uniform Standards of Professional Appraisal Practice (USPAP) and completed by an independent, State Department of Revenue and Regulation certified appraiser. (https://dlr.sd.gov/appraisers/appraiser_roster.aspx). Applicant will pay for all costs of the appraisal, which costs may be included in the HOF financing. 7. Rehabilitation of housing developments consisting of 20 units or more will be required to submit a physical needs assessment. The physical needs inspector must be approved by SDHDA. The Applicant must pay for all costs of the physical needs assessment which costs may be included in the HOF financing. 8. Projects involving acquisition and/or rehabilitation of a pre-1978 property must provide information on how they will comply with lead-based paint requirements. March 2022 Page 22 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 2 LOCAL HOUSING NEED REQUIREMENTS All Applicants must submit documentation evidencing the need for the proposed housing. Projects involving rehabilitation of existing housing units may provide three year’s occupancy records to demonstrate the housing need. However, if the proposed project will dramatically alter the units and tenancy and the development consists of 20 or more units, then a third-party market analysis must be submitted. Applicants proposing construction of fewer than 10 new housing units may provide their own analysis of housing demand, and will not be required to contract with a third-party analyst. Applicants proposing to construct 10 or more new housing units must submit a third-party market analysis. The analyst completing the study must be unaffiliated with the developer and have housing knowledge and experience. A South Dakota licensed appraiser who is MAI certified and meeting the criteria listed may also complete the market study. The analysis of housing demand must have been completed within the last six months from the application date. The documentation of housing need and the third-party market study must address the following: 1. Review of proposed site including color photos of the site and adjoining property; description of site characteristics including the size, shape and general topography; and evaluation of the accessibility and visibility of the site; 2. Review of the proposed project including the number of units by number of bedrooms and bathrooms, income levels to be served, rent to be charged, calculating utility allowances and amenities to be provided; 3. Review of existing community services and their proximity to the proposed project including a site map identifying such services; 4. Review and listing of existing multifamily projects in the market area for both affordable housing (Section 8, HOME and Rural Development) units and market- rate units listing the type of housing, location, number of bedrooms, number of bathrooms, size of units, condition of buildings, vacancy rates, waiting lists, amenities, utility allowances (whether included in rent or not), and rental rates; 5. Review of projected new housing projects (BOTH affordable and market rate, rental and homeownership) including number and type of building permits issued in the past three years; 6. Review of current population characteristics, such as total population, income levels, age breakdown, migration trends, and five-year projection of future changes to the population and its characteristics; 7. Review of the type of employment opportunities and entry-level wages including economic changes proposed that could potentially affect the number of jobs or wages; March 2022 Page 23 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 8. Review of existing housing conditions and projected rental housing demands, including the breakdown of the number, size and rent level of units necessary to fill the demands of the community; 9. Review of meeting/correspondence with local planners, housing and community development officials, employers, and market participants to evaluate the local perception of the need for additional housing; and 10. Executive Summary with a precise statement of the conclusions reached by the analyst. The statement must include the analyst’s opinion of (i) market feasibility, (ii) the prospect of long-term performance of the property given housing and demographic trends and economic factors, (iii) recommended modifications to the proposed project, (iv) market related strengths and weaknesses, (v) positive and negative attributes and issues that will affect the property’s lease-up and performance, and (vi) the impact the subject property will have on the existing multifamily projects. The following issues must be considered for each potential market before the development of additional units is pursued: 1. Whether the community experienced growth in recent years and is projected to continue to grow. 2. Whether there has been any significant changes in the economic arena for the area, such as major employers leaving or moving into the area or are expected to leave or move in. Note that the definition of "major" will vary by community. 3. A determination as to whether vacancies that may have existed prior to the population growth have been absorbed, or whether there are vacancies in the market area now. If there are the vacant units, they need to be evaluated to determine if they are obsolete, have deferred maintenance, have deep rental subsidies, or qualify for Section 8 Vouchers (if available). 4. Determine if the need is for housing for families, young professionals, retirees, or the elderly, and what the most suitable housing would be for the identified population; such as whether there is a need for single family homes, townhouse or condominium type housing units with lower maintenance requirements, independent apartments, congregate housing, or assisted living units. Also, determine if there are existing vacant units or structures in the community or region that could be rehabilitated or moved in to address the demand for housing in a more affordable manner than new construction. 5. A determination must be made as to whether there is a need for market rate housing or housing targeted to lower income households. March 2022 Page 24 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 3 HOF RENTAL OR HOMEOWNERSHIP DEVELOPMENT APPLICATION CHECKLIST The following items must be submitted with the Application form to ensure a complete application is received by SDHDA. Please refer to the HOF Plan and application for clarification of any submission items. Submission Item Enclosed Meet SDHDA Requirements All Applications: 1. Completed/Signed Application Form 2. Local Housing Need/Program Demand 3. Project Narrative 4. Letters of Local Support 5. Applicant/Owner Information Applications for Development of Housing Units 6. Utility Allowance Calculation 7. Pro Forma 8. Documentation of Operating Expenses 9. Site Control 10. Architectural Plans 11. Zoning Letter and Project Plat 12. PHA Notification 13. Executed Project Characteristics (Ex. 4) 14. Documentation of Financing 15. Availability of Utility Service The following items may not be applicable to every project but Applicant must carefully review the following and submit what is pertinent to their application for documenting points or meeting submission requirements. 1. Documentation of Local Financial Support 2. Service Provider Letters 3. Acquisition/Rehabilitation Projects: a. Relocation Plan b. Rehabilitation Listing c. Three Years Historical Financials d. Tenant Rent Roll 4. Lease Purchase Management Plan 5. Copy of Consultant Agreement 6. Copy of Partnership Agreements March 2022 Page 25 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 4 MULTIFAMILY PROJECT CHARACTERISTICS Applicant only eligible to receive up to 200 points. Indicate if the project will include each characteristic by placing an X in the box to the left of each applicable line item. NOTE: No points are allowed for characteristics associated with previous phases. Minimum standards apply to all new construction projects; however, rehabilitation or Reconstruction projects should also strive to meet these minimum standards. Site Exterior Parking: Minimum Standards At a minimum, the parking lot will be engineered asphalt, having concrete curb and gutter where required. For multifamily developments, each efficiency, 1 and 2-bedroom units must have 1- 1/2 parking spaces and each 3 and 4-bedroom units must have 2 parking spaces. The number of handicap designated spaces must equal the amount of handicap units. In the event that local jurisdiction codes exceed this total then the local code supersedes these requirements. Garage counts as parking space(s). 10 points Multi-family projects that includes carports capable of parking at least 1 vehicle per unit or a garage for at least 50% of the units. At a minimum the carports are to be constructed of weather resistant steel, attached to footings or a thickened concrete slab, contain a concrete slab and meet minimum code design requirements. 15 points Multi-family projects with off-street concrete parking lot that meets above requirements. 25 points Multi-family projects that includes a garage capable of parking at least 1 vehicle for all units. Sidewalks: Minimum Standards A concrete sidewalk will be provided from the primary entrance door and any accessible entry door to a public right of way. Exterior Landscaping: Minimum Standards New Construction should have a minimum of a live landscaped area of no less than 5% of the hard-surfaced area of the project site. Hard surface includes building pad as well as all sidewalks, parking lots and other hard finish areas. Minimum Standards Multifamily rental project of 16-47 units must have at least one Section 504 compliant playground area. Projects of 48 or more units, must have at least two Section 504 compliant playground areas. A basketball court, skate park or other like area approved by SDHDA would also qualify as a second playground. Three play components are required per playground area with a minimum of one ground level play component on an accessible route. If additional types of ground level play components are incorporated each type must be on an accessible route. March 2022 Page 26 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Minimum Standards A minimum of a 4-foot downspout extension or 3 foot concrete splash block that positively discharges water away from the foundation at all downspout locations. 5 points Use of drought resistant live plants or Xeriscaping design principals or use of rain sensor irrigation for landscaped areas. 10 points Downspouts that are attached to a storm sewer system. Signage: Minimum Standards The project must have permanent signage installed with Equal Housing Opportunity and ADA logos and the identification of the developer and South Dakota Housing Development Authority. Building(s) Exterior Exterior Siding/Finish: Minimum Standards Minimum of 15-year pre-finish warranty 30-year substrate warranty solid cementitious or composite prefinished siding. If vinyl siding is used, it must be a minimum of 0.44 mil thick and have a lifetime warranty. Prefinished soffits, fascia, gutters and downspouts are required. 10 points At least 25% of building exterior finished in brick, stone, EIFS or stucco. 25 points At least 80% of building exterior finished in brick, stone, EFIS or stucco. Roofing: Minimum Standards Minimum of 30-year warranty asphalt or composite shingle, 29ga metal roofing with a 40-year film and 30-year chalk/fade warranty or a rubberized roof system with a 30-year warranty for flat roofs. 15 points Use of UL 2218 Class 4 impact resistant shingles or 26ga UL 2218 Class 4 impact resistant metal roofing. Windows/Doors: Minimum Standards Energy Star certified exterior prefinished windows constructed of vinyl, wood, composite or fiberglass. Windows must be Energy Star certified for the Northern climate zone. 10 points Windows scored with a .27 U-Factor or better (lower is better) by the National Fenestration Rating Council. Minimum Standards Exterior doors shall be insulated steel or composite in a metal clad or composite frame/brickmould. Unit entry doors without windows shall have a peephole installed with 180-degree view. Two peepholes are required on accessible units, one at 43” and one at standard height. All unit entry doors must be equipped with a deadbolt with 1- inch throw and strike plate installed with 2-1/2” or longer screws. Minimum Standards Main entrances for projects containing interior accessed units must be equipped with an ADA/ABA compliant automatic door opener. 20 points Main entrances for projects containing interior accessed units designed with a foyer and equipped with a security access system. 20 points Townhome that have exterior entrances at ground level for all units. Construction and Energy Efficient Design Features Wall/Roof Assembly: Minimum Standards Slab on grade construction to have a minimum R-10 vertical foundation and horizontal perimeter under slab insulation per 2012 IECC. A minimum 6 mil or greater vapor barrier to be required under slab. March 2022 Page 27 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Minimum Standards 2x6 exterior wall assemblies insulated to a minimum of R-19. Roof assembly to have minimum 12” energy heel trusses and insulated to a minimum of R-49. Rim/band joists to be insulated to the same R-value as the exterior walls. All assemblies must be constructed to the higher of the SDHDA minimum, local adopted code or the current state adopted IRC/IBC if no local code exists. 10 points All party walls and common walls containing at least 3.5" of sound attenuation insulation. 10 points Light weight concrete or Gypcrete surfacing on floors. Special and Accessible Design Features: Minimum Standards All projects containing more than 4 units must be compliant with Section 504 under the Rehabilitation Act of 1973. All other housing must meet the requirements of the Fair Housing Act. Rehabilitation of multifamily housing containing 15 or more units and costing at least 75% of replacement cost must also meet Section 504. If the rehabilitation involves fewer than 15 units or the cost is less than 75% of the replacement cost of the completed facility and the recipient has not made 5% of its units in the development accessible to and usable by individuals with disabilities, then the requirements of 24 C.F.R. 8.23(b) – Other Alterations apply. Under this section, alterations to dwelling units shall, to the maximum extent feasible, be made readily accessible to and usable by individuals with disabilities. If alterations to single elements or spaces of a dwelling unit, when considered together, amount to an alteration of a dwelling unit, the entire unit shall be made accessible. Alteration of an entire unit is considered to be when at least all of the following individual elements are replaced: renovation of whole kitchens, or at least replacement of kitchen cabinets: and renovation of the bathroom, it at least bathtub or shower is replaced or added, or a toilet and flooring is replaced; and replacement of entrance door jambs. 5 points Up to 15 points will be awarded for projects that create additional accessible units for individuals with mobility and/or sensory impairments. Mobility units must be added at a 2:1 ratio to the sensory units. A minimum of one additional unit must be added above the federal minimum requirements. Accessible units shall to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout projects and sites and shall be available in a sufficient range of sizes and amenities so that a qualified individual with handicaps’ choice of living arrangements is, as a whole, comparable to that of other persons eligible for housing assistance under the same program. This shall not be construed to require provision of an elevator in any multifamily housing project solely for the purpose of permitting location of accessible units above or below the accessible grade level. Total Percent of Accessible Units 5 points – Above minimum requirements to 10.00% 10 points - 10.01% to 15.00% 15 points - 15.01% to 20.00% 10 points 15 points 15 points Incorporation of the 7 Universal Design Principles in at least 25% of all units, not including Section 504 units. Universal design is the design March 2022 Page 28 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx of products and environments to be usable by all people, to the greatest extent possible, without the need for adaptation or specialized design. Minimum universal design principals can be found on SDHDA website. 35 Points Multi-family projects that have either a stand-alone Community Building or a Community Room, the room shall be 15 square feet per occupant, assuming 1-1/2 occupants per unit. The room shall include a fully functioning kitchen and minimum of one unisex ADA compliant restroom. For calculation of the square footage of the space, only areas usable by occupants are to be included. The square footage of the kitchen, restroom, hallways, offices or storage cannot be used to meet minimum square footage requirement. At the discretion of SDHDA, partial points may be awarded for existing community buildings which meet the capacity requirements of the existing units served, plus the new proposed units in the application. Energy Efficient Design Features: 20 points HERS: Project scoring a HERS index of 60 or better as verified by a RESnet certified Rater. Lower is better. 35 points Energy Star: Whole project certification to the latest version of Energy Star for New Homes or Energy Star for Multifamily High Rise as verified by a 3rd party Energy Star certified rater. Project cannot take points for both HERS and Energy Star certifications. 10 points Installation of LED lights throughout interior and exterior of project. Building Interior Unit Entry Doors: Minimum Standards The unit entry doors must meet the code requirement of the wall assembly containing it. It must include a peephole with 180-degree viewer or have a window and also a deadbolt with a 1" throw into a reinforced jamb. Two peepholes are required on accessible units, one at 43” and one at standard height. Unit Interior Doors: 10 points Installation of solid core interior doors throughout units. 5 points Installation of metal jambs for interior doors throughout units. This option is only available if points are taken for solid core doors. Floor Covering: Minimum Standards Roll carpet must meet the standards of HUD use of material bulletin 44D. VCT, Vinyl Plank, LVT, sheet vinyl, carpet squares, and other floor coverings must meet or exceed the ASTM standards for Resilient Floor Covering and carry a minimum of a 10-year Manufacturer Warranty. An aluminum or vinyl “J” trim must be installed at the tub/shower transition when sheet vinyl flooring is installed and sealed with a silicone sealant. Laundry: Minimum Standards A common laundry room must be located in each building of a project and contain a window within or near the door. Laundry room must also include a continuous or humidistat-controlled ventilation system. Projects with townhomes or apartments without common laundry space must provide washer and dryer hook-ups within each unit. March 2022 Page 29 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 5 points A common laundry room for each building floor and must meet above minimum standards. 15 Points A washer and dryer provided for each unit. Washer and dryers must meet Energy Star qualifications. Unit Bathrooms: Minimum Standards Minimum of one-half bath per floor for multi-story townhomes 2 or more bedrooms. Minimum Standards Primary bath light and bathroom ventilation fan must be switched together. 5 points Installation of Energy Star qualified bathroom ventilation fan equipped with a humidistat. Humidistat must be incorporated within the fan and not at a wall switch. 15 points Installation of HVI certified HRV or ERV. Minimum Standards For new construction projects that must comply with Section 504 of the Rehabilitation Act of 1973, a UFAS compliant curbless roll-in shower must be provided in at least 50% of the Section 504 mobility impaired accessible units or at least one. Appliances and Fixtures: Minimum Standards A minimum of a 14 cu. Ft. frost free refrigerator/freezer for all 0 or 1- bedroom units. A minimum of 18 cu. Ft. refrigerator/freezer for all 2 or more bedroom units. Dishwashers to be a minimum of 24” in width. Minimum Standards Water Sense qualified faucets, toilets/urinals, showerheads. Kitchen faucets are required to meet the same Water Sense GPM standards as bathroom faucets. 5 points Range hood vented to the exterior of the building. Window Coverings: Minimum Standards Window coverings or blinds shall be provided and installed. Mechanical Heating and Cooling: Minimum Standards At a minimum high efficiency cove heat. Electric baseboard heat and PTAC’s are NOT allowed for new construction. 92% AFUE minimum gas furnace, Heat Pumps rated at HSPF of 8 or greater with a 13.0 SEER rating or higher (packaged or split). Programmable thermostats are required. Minimum Standards All units must have Energy Star qualified through the wall air conditioning or central air conditioning rated at 13 SEER or better sized to properly cool the unit. 5 Points Energy Star qualified central air conditioning or verified AHRI certificate with matching coil and condenser 16 SEER or better. Split systems must be Energy Star matched. 20 points Forced air furnace 96% or greater AFUE or Energy Star qualified Air- source or Ground Source heat pump capable of providing heat to -15 F. Split systems must be Energy Star matched. Note: Proposed heat pump systems used for primary heat must be submitted for approval. Water Heating: March 2022 Page 30 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Minimum Standards A minimum of a 0.92 UEF electric water heater in each unit. Atmospheric vented gas water heaters will not be allowed. Any central hot water systems must be submitted for approval. 10 points A gas condensing (close combustion, two-vent pipe system) or electric heat pump water heater provided for each unit. Healthy Homes Minimum Standards 1. Low VOC paints, stains, adhesives and sealants. 2. Formaldehyde free insulation. 3. Formaldehyde free or sealed particle board products such as shelving, cabinets and countertops. 4. Lead detection and abatement. Only applies to rehabilitation projects. 5. Install a passive radon system. Test for radon near completion and if 4pCi/L or higher the system must be made active and re-tested until results are below 4pCi/L. Electrical Standards Minimum Standards 1. Hardwired CO sensors required with installation of gas appliances. 2. The use of incandescent light bulbs is not allowed. 3. New construction or substantial rehabilitation of rental housing with more than four (4) units must incorporate the installation of broadband infrastructure. I certify that the above indicated characteristics will be incorporated into the final working drawings and that they must be provided prior to occupancy of the project. I certify that the housing will meet the accessibility requirements of 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covered multifamily dwellings, as defined at 24 CFR Part 100.201, must also meet the design and construction requirements at 24 CFR Part 100.205, which implement the Fair Housing Act (42 U.S.C. 3601- 3619). Applicant Date Architect Date March 2022 Page 31 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 5 SINGLE FAMILY PROJECT CHARACTERISTICS Applicant only eligible to receive up to 200 points. Indicate if the project will include each characteristic by placing an X in the box to the left of each applicable line item. NOTE: No points are allowed for characteristics associated with previous phases. Minimum standards apply to all new construction projects; however, rehabilitation or reconstruction projects should also strive to meet these minimum standards. General Project Scope Minimum Standards Single Family Project must include individual exterior storage units at a minimum of 8'x12' or a garage. 10 points Single Family project that includes a carport capable of parking at least 1 vehicle. At a minimum a carport is to be constructed of weather resistant steel, attached to footings or a thickened concrete slab, contain a concrete slab and meet minimum code design requirements. An 8’ x 12’ shed is still required. 25 points Single Family Project that includes an attached or detached garage capable of parking at least 1 vehicle. Site Exterior Parking: Minimum Standards Single family home developments must contain concrete off-street parking for two vehicles. Garage counts as parking space(s). Sidewalks: Minimum Standards A concrete sidewalk will be provided from the primary entrance door and any accessible entry door to a public right of way. Exterior Landscaping: Minimum Standards New construction should have a minimum of a live landscaped area of no less than 5% of the hard-surfaced area of the project site. Hard surface includes building pad as well as all sidewalks, parking lots and other hard finish areas. Minimum Standards A minimum of a 4-foot downspout extension or a 3-foot concrete splash block that positively discharges water away from the foundation at all downspout locations. 5 points Use of drought resistant live plants or Xeriscaping design principals or use of rain sensor irrigation for landscaped areas. Building(s) Exterior Exterior Siding/Finish: Minimum Standards Minimum of 15-year pre-finish warranty 30-year substrate warranty solid cementitious or composite prefinished siding. If vinyl siding is used, it must be a minimum of 0.44 mil thick and have a lifetime warranty. Prefinished soffits, fascia, gutters and downspouts are required. 10 points At least 25% of building exterior finished in brick, stone, EIFS or stucco. 25 points At least 80% of building exterior finished in brick, stone, EFIS or stucco. Roofing: March 2022 Page 32 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Minimum Standards Minimum of 30-year warranty asphalt or composite shingle, 29ga metal roofing with a 40-year film and 30-year chalk/fade warranty or a rubberized roof system with a 30-year warranty for flat roofs. 15 points Use of UL 2218 Class 4 impact resistant shingles or 26ga UL 2218 Class 4 impact resistant metal roofing. Windows/Doors: Minimum Standards Energy Star certified exterior prefinished windows constructed of vinyl, wood, composite or fiberglass. Windows must be Energy Star certified for the Northern climate zone. 10 points Windows scored with a .27 U-Factor or better (lower is better) by the National Fenestration Rating Council. Minimum Standards Exterior doors shall be insulated steel or composite in a metal clad or composite frame/brickmould. Unit entry doors without windows shall have a peephole installed with 180-degree view. Two peepholes are required on accessible units, one at 43” and one at standard height. All unit entry doors must be equipped with a deadbolt with 1”-inch throw and strike plate installed with 2-1/2” or longer screws. 5 points Installation of storm doors with a minimum 10-year structural warranty at all exterior entry doors. Not required at entry doors between garage and home with attached garages. Entry: Minimum Standards Exterior entry landings to be a minimum 5’-0” x 5’-0” with stairs and railing constructed out of an exterior grade wood. 10 points Exterior entry landings and stairs with composite decking and railing with a minimum 25-year warranty that meets the above size requirements. 15 points Minimum of an 80 square foot deck with stairs and railing constructed out of an exterior grade wood at one exterior entry. Additional entries to meet the minimum standards in size and construction. 20 points Minimum of an 80 square foot deck with composite decking and railing with a minimum 25-year warranty at one exterior entry. Additional entries to meet the minimum standards in size above and have composite decking and railing. Construction and Energy Efficient Design Features Wall/Roof Assembly: Minimum Standards Slab on grade construction to have a minimum R-10 vertical foundation and horizontal perimeter under slab insulation per 2012 IECC. Crawl spaces are to be sealed, insulated (min R-10) and conditioned. Minimum Standards A minimum of a 6 mil or greater vapor barrier to be required under slab on grade, basement slab or crawlspace floor. Minimum Standards Foam plastics when used under any condition listed under Section R316 Foam Plastics of the 2015 IRC shall comply with the pertaining code subsection. Minimum Standards 2x6 exterior wall assemblies insulated to a minimum of R-19. Roof assembly to have minimum 12’ energy heel trusses and insulated to a minimum of R-49. Rim/band joists to be insulated to the same R-value as the exterior walls above. All assemblies must be constructed to the higher of the SDHDA minimum, local adopted code or the current state adopted IRC/IBC if no local code exists. March 2022 Page 33 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 15 points 2x6 exterior wall assemblies insulated to a minimum of R-20 cavity insulation and an R-5 continuous insulation or a 2x4 exterior wall assembly insulated to a minimum of R-13 cavity insulation and an R- 10 continuous insulation. Special and Accessible Design Features Minimum Standards All projects containing more than 4 units must be compliant with Section 504 under the Rehabilitation Act of 1973. All other housing must meet the requirements of the Fair Housing Act. Rehabilitation of housing containing more than 15 units and costing at least 75% of replacement cost or that is vacant must also meet Section 504. 5 points Up to 15 points will be awarded for projects that create additional accessible units for individuals with mobility and/or sensory impairments. Mobility units must be added at a 2:1 ratio to the sensory units. A minimum of one additional mobility unit must be added above the federal minimum requirements. Accessible units shall to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout projects and sites and shall be available in a sufficient range of sizes and amenities so that a qualified individual with handicaps’ choice of living arrangements is, as a whole, comparable to that of other persons eligible for housing assistance under the same program. Total Percent of Accessible Units 5 points – Above minimum requirements to 10.00% 10 points - 10.01% to 15.00% 15 points - 15.01% to 20.00% 10 points 15 points 15 points Incorporation of the 7 Universal Design Principles in at least 25% of all units or single-family developments with accessible routes into and through the home including zero step entry, not including Section 504 units. Universal design is the design of products and environments to be usable by all people, to the greatest extent possible, without the need for adaptation or specialized design. Minimum universal design principals can be found on SDHDA website. 35 points Projects that have a stand-alone Community Building, the room shall be 15 square feet per occupant, assuming 1-1/2 occupants per unit. The room shall include a fully functioning kitchen and minimum of one unisex ADA compliant restroom. For calculation of the square footage of the space, only areas usable by occupants are to be included. The square footage of the kitchen, restroom, hallways, offices or storage cannot be used to meet minimum square footage requirement. Energy Efficient Design Features: 20 points HERS: Project scoring a HERS index of 60 or better as verified by a RESnet certified Rater. Lower is better. 35 points Energy Star: Whole project certification to the latest version of Energy Star for New Homes as verified by a 3rd party Energy Star certified rater. Project cannot take points for both HERS and Energy Star certifications. 10 points Installation of LED lights throughout interior and exterior of project. Building Interior Unit Interior Doors: 10 points Installation of solid core interior doors throughout units. March 2022 Page 34 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 5 points Installation of metal jambs for interior doors throughout units. This option is only available if points are taken for solid core doors. Flooring Covering: Minimum Standards Roll carpet must meet the standards of HUD use of material bulletin 44D. VCT, Vinyl Plank, LVT, sheet vinyl, carpet squares and other floor coverings must meet or exceed the ASTM standards for Resilient Floor Covering and carry a minimum of a 10-year Manufacturer Warranty. An aluminum or vinyl “J” trim must be installed at the tub/shower transition when sheet vinyl flooring is installed and sealed with a silicone sealant. Laundry: Minimum Standards Laundry space/room must be provided with washer and dryer hook-ups and dryer venting to the exterior. 15 points A washer and dryer provided for each unit. Unit Bathrooms: Minimum Standards Minimum of one-half bath per floor for single family dwellings containing 2 or more bedrooms. Minimum Standards Primary bath light and bathroom ventilation fan must be switched together. Bath fan cannot be used to meet mechanical ventilation code for local jurisdictions that have adopted 2012 IECC or other codes that require mechanical ventilation. 5 points Installation of Energy Star qualified bathroom ventilation fan equipped with a humidistat and timer. Humidistat must be incorporated within the fan and not at a wall switch. 15 points Installation of HVI certified HRV or ERV. Minimum Standards For new construction projects that must comply with Section 504 of the Rehabilitation Act of 1973, a UFAS compliant curbless roll-in shower must be provided in at least 50% of the Section 504 mobility impaired accessible units or at least one. Appliances and Fixtures: Minimum Standards A minimum of a 14 cu. Ft. frost free refrigerator/freezer for all 0 or 1 bedroom units. A minimum of 18 cu. Ft. refrigerator/freezer for all 2 or more bedroom units. Dishwashers to be a minimum of 24” in width. Minimum Standards Water Sense qualified faucets, toilets/urinals, showerheads. Kitchen faucets are required to meet the same Water Sense GPM standards as bathroom faucets. 5 points Range hood vented to the exterior. Window Coverings: Minimum Standards Window coverings or blinds shall be provided and installed. Mechanical Heating and Cooling: Minimum Standards At a minimum high efficiency cove heat. Electric baseboard heat and PTAC’s are NOT allowed for new construction. 92% AFUE minimum gas furnace, Heat Pumps rated at HSPF of 8 or greater with a 13.0 SEER rating or higher (packaged or split). Programmable thermostats are required. Minimum Standards All units must have Energy Star qualified through the wall air conditioning or central air conditioning rated at 13 SEER or better sized to properly cool the unit. March 2022 Page 35 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 5 points Energy Star qualified central air conditioning or verified AHRI certificate with matching coil and condenser 16 SEER or better. Split systems must be Energy Star matched. 20 points Forced air furnace 96% or greater AFUE or Energy Star qualified Air- source or Ground Source heat pump capable of providing heat to -15F. Split systems must be Energy Star matched. Note: Proposed heat pump systems used for primary heat must be submitted for approval. Water Heating: Minimum Standards A minimum of a 0.92 UEF electric water heater in each unit. Atmospheric vented gas water heaters will not be allowed. 10 points A gas condensing (close combustion, two-vent pipe system) or electric heat pump water heater provided for each unit. Healthy Homes Minimum Standards 1. Low VOC paints, stains, adhesives and sealants. 2. Formaldehyde free insulation. 3. Formaldehyde free or sealed particle board products such as shelving, cabinets and countertops. 4. Lead detection and abatement. Only applies to rehabilitation projects. 5. Install a passive radon system. Test for radon near completion and if 4pCi/L or higher the system must be made active and re-tested until results are below 4pCi/L. Electrical Standards Minimum Standards 1. Hardwired CO sensors required with installation of gas appliances. 2. The use of incandescent light bulbs is not allowed. 3. New construction or substantial rehabilitation of rental housing with more than four (4) units must incorporate the installation of broadband infrastructure. I certify that the above indicated characteristics will be incorporated into the final working drawings and that they must be provided prior to occupancy of the project. I certify that the housing will meet the accessibility requirements of 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covered multifamily dwellings, as defined at 24 CFR Part 100.201, must also meet the design and construction requirements at 24 CFR Part 100.205, which implement the Fair Housing Act (42 U.S.C. 3601- 3619). ________________________________________ ________________________________ Applicant Date ________________________________________ ________________________________ Applicant Date March 2022 Page 36 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 6 HOF RENTAL OR HOMEOWNERSHIP DEVELOPMENT SELF SCORING WORKSHEET RENTAL AND HOMEOWNERSHIP APPLICATIONS Sub Points Points Available Points Awarded Comments A. Local Housing Need 100 B. Income Targeting 100 1. 30% AMI Units (100 pts for 100% of the units) 2. 50% AMI Units (70 pts for 100% of the units) 3. 80% AMI Units (50 pts for 100% of the units) 4. 115% AMI Units (20 pts for 100% of the units) C. Extended Use Commitment 10 D. Financial Support from Local Sources 25 E. Service Enriched Housing 20 F. Percentage of Soft Costs Used for Project Costs 40 G. Readiness to Proceed Criteria 130 1. Plans and Specifications 25 2. Site Control 25 3. Construction Financing 30 4. Permanent Financing 30 5. Zoning 10 6. Platting 10 H. Project Characteristics (Exhibit 4) 200 I. Financing Type 25 1. Guaranty or Regular Amortization 25 2. Irregular Amortization 15 3. Cash Flow Mortgage 5 TOTAL 650 March 2022 Page 37 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 7 CONSTRUCTION STANDARDS Housing that is newly constructed or rehabilitated with HOF funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the time a building permit is obtained from the locality and then verified once the building has been placed in service. The design standard for any new construction or rehabilitation, within the boundaries of any local unit of government that has not adopted an ordinance prescribing standards for new construction or rehabilitation, pursuant to International Building Code as published by the § 11-10-5 shall be based on the most current edition of the International Code Council, Incorporated. Pursuant to § 11-10-7, new construction housing must meet the most current edition International Energy Conservation Code as written by the International Code Council as amended by local jurisdiction and all applicable local building code requirements. For multifamily housing of 5 or more units, the housing must meet the accessibility requirements at 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) -(https://www.hud.gov/program_offices/fair_housing_equal_opp/disability_main ). Developments consisting of 1 – 4 units should consider incorporating Universal Design concepts https://www.sdhda.org/images/docu/housing-development/SDHDA%20UD%20Guidelines%20- Final%20Posted.pdf. Covered multifamily dwellings, as defined at 24 CFR Part 100.201, must also meet the design and construction requirements at 24 CFR Part 100.205, which implement the Fair Housing Act (42 U.S.C. 3601-3619) http://www.fairhousingfirst.org. The proposed site must be suitable for the proposed project. If the site includes any detrimental characteristic, the Applicant must provide a remediation plan and budget to make the site suitable for the project. If any detrimental site characteristic exists on, or adjacent to the site, SDHDA may reject the application. Detrimental characteristics may include but are not limited to: location within 1/2 mile of pipelines, storage areas for hazardous or noxious materials, sewage treatment plant, sanitary landfill; location within 500 feet of an airport runway clear zone, 1000 feet of a railroad, commercial property or military operations; physical barriers; unsuitable slope or terrain; location within 1000 feet of registered historic property; or location in flood hazard area. Proposed projects are encouraged to incorporate the features of brick, energy efficiency systems, additional handicap-adapted units, second bathrooms (for three and four bedroom units), community rooms, townhouse style units with an accessible bathroom on the main floor, creative design features, and other amenities where appropriate. Rehabilitation costs must include essential improvements including energy-related repairs or improvements, modifications necessary to permit use by persons with disabilities, abatement of lead-based paint hazards, and repair or replacement of major housing systems in danger of failure. The application must describe in detail the level of rehabilitation and the cost necessary for the exterior and for the interior by apartment unit, if applicable. If the description is not detailed, the application may be rejected. Upon completion of rehabilitation, if applicable, all major systems (roof, windows, heating, etc.) of the property must be in like new or new condition. If these systems are not in need of repair at the time of application, sufficient reserves must be established to allow March 2022 Page 38 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx for replacement of such components if the normal life span would require replacement prior to the end of the affordability period. Developments consisting of 20 units or more will be required to submit a physical needs assessment before commitment of funds. The assessment must be completed by an independent inspector. SDHDA will approve the inspector and the Applicant will pay for all costs for this service, which may be included in the HOF financing. Consideration will be given to functional obsolescence of the property. If it is not cost effective to overcome structural problems, the property may not be eligible for financing. Modifications to allow a higher level of care to elderly residents of a property are eligible if there is an identified need for such level of care and the property is financially feasible upon completion. The use of HOF funds for rehabilitation must maintain current affordable units or create additional affordable units. The cost in terms of assistance to acquire and rehabilitate an existing property may not exceed the amount of assistance to construct a new property of like quality. Under no circumstances will the term of the HOF loan exceed the expected remaining useful life of the property. Depending on the size of the development, SDHDA may not require contractors to be bonded, however, all contractors and subcontractors must carry sufficient insurance coverage. March 2022 Page 39 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx HOF PROGRAMS I. POLICIES AND PROCEDURES 1. Distribution of Funds SDHDA will distribute HOF funds geographically throughout the State taking into consideration the following HOF distribution formula: Municipalities with a population of 50,000 or more 30 percent Other areas of the State 70 percent Ten percent of the HOF funds may be utilized for administrative expenses incurred by SDHDA and eligible Applicants applying for HOF for programs as outlined in Section III.B. The remaining funds will be distributed per the eligible activity as follows: Housing Development 75 percent Programs 25 percent If the approved applications for any area or activity are less than the percentages above, the remaining amount may be made available for qualified applications from the other geographical area or activity. If less than one million dollars is appropriated for any single HOF Application Cycle, the Housing Development and Program set asides will be eliminated and SDHDA may in its discretion limit the eligible activities for which applications will be accepted. 2. Application Cycle(s) and Deadlines Applications for Programs will be accepted annually, with 2022 applications due by 5:00 PM CST on August 31st, 2022 and by 5:00 PM CST on August 31st, 2023. Applications received will be scored in accordance with Section V of this plan to ensure feasible and desirable projects are awarded funds. Program applications must score a minimum of 100 points to be considered for funding. However, if after the July application cycles, HOF funds remain unallocated or additional HOF funds become available, SDHDA may hold another application cycle or accept eligible applications on a first-come, first-serve basis. If SDHDA holds another application cycle (instead of accepting applications on a first-come, first-serve basis), SDHDA will provide an announcement of the additional cycle. Please refer to SDHDA’s website at www.sdhda.org for availability of funds. Applicants are encouraged to submit the online application that can be found on the SDHDA website. Completed applications (refer to Exhibit 1) must be electronically submitted or delivered (via U.S. Postal Service, private mailing service, or hand delivered) to SDHDA by 5:00 p.m. Central Standard Time on the applicable due date. Applications via facsimile will NOT be accepted. March 2022 Page 40 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx 3. Limitations Taking into consideration the eligible activities for HOF, those being housing development and programs, no more than 25 percent of the annual available HOF funds may be awarded to any one developer/sponsor/owner and no more than 50 percent of a development’s total program budget can be financed by HOF, unless a waiver is granted by SDHDA Board of Commissioners. For calculation of the developer/sponsor/owner limitation, all of the developer/sponsor/owner’s applications, regardless of type of activity or project, will be combined for the calculation. 4. Types of Financing HOF funds may be requested as a loan, deferred loan, or as a forgivable loan. If applicants are requesting HOF funds as a forgivable loan, the applicant must demonstrate the need for the forgiveness and provide program parameters that will be used to determine if program recipients will be receiving a forgivable loan. Consideration must be given to the AMI being served. 5. Term of Financing HOF funds must be expended and disbursed within two years of the date of the Subrecipient Written Agreement. Any HOF funds not disbursed by the due date may be de-obligated by SDHDA and returned to the available HOF allocation for the next application cycle. 6. Leveraging/Match Requirement HOF funds can be used to finance up to 50 percent of the program costs, with the remaining 50 percent being leveraged funds (or match). The leveraging of funds can be satisfied in a variety of ways such as funds provided as a loan or grant, donations (monetary or in-kind), administrative costs paid for by other funding sources for staff carrying out the program activities, etc. Funds used for leverage must be for like-kind of services and must be necessary for the administration of the program or development of the project. For example, an agency may use the staff expense (paid for from sources other than HOF) for qualifying homebuyers’ eligibility and providing homebuyer counseling, as leveraging for a down- payment assistance program since the qualification process and homebuyer counseling are necessary for administration of a down-payment assistance program. An agency however, may not use staff expense for homebuyer counseling as leveraging for a homeowner rehabilitation program. Sources of leverage must be identified within the application and documentation of such will be required prior to closing of the loan and disbursement of HOF funds. If applicants are unable to meet the requirement of 50 percent leveraged funds (match), applicants may request a waiver from the SDHDA Board of Commissioners. Thorough documentation of the reason for the waiver will be required at time of application. If HOF is utilized with another funding source or program offered by a city, the state, a federal, or SDHDA program, applicant will be required to follow the most restrictive requirements. 7. Eligibility Eligible Programs: HOF funds may be used for down-payment assistance, security deposit assistance, homeowner rehabilitation, and homeless prevention activities. Housing developments receiving HOF funds will not be considered as an eligible project until such time the initial affordability period or the extended use period has been met. March 2022 Page 41 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Eligible Applicants: Any for-profit entity, nonprofit entity, tribal government, housing authority, political subdivision of this state or agency of such subdivision, or agency of this state is eligible to apply for funding. No individuals may apply for funding directly unless authorized by SDHDA. Eligible Households: HOF funds shall be targeted to serve low to moderate income households with a maximum income at or below one hundred fifteen percent (115%) of the county area median income (AMI) or state area median income (AMI), whichever is higher, based on the U.S. Department of Housing and Urban Development (HUD) criteria. 8. Disclaimers Regardless of ranking under the program selection criteria, SDHDA reserves the right to allocate HOF funds to any application if SDHDA determines in its sole discretion that such allocation furthers the HOF objectives. SDHDA reserves the right to deny HOF funds for any application that SDHDA determines in its sole discretion does not further the HOF objectives. SDHDA reserves the right to exchange information with other city, state and federal agencies and with other parties as deemed appropriate. By submitting an application for HOF funds, the Applicant is acknowledging and agreeing to this exchange of information. A. AMENDMENTS TO THE PLAN This Plan may be amended for substantive changes by SDHDA at any time following public notice and public meeting. This Plan may be amended by SDHDA for non-substantive changes, including to comply with state law, clarify matters, or cure ambiguities, at any time, and such amendments will be fully effective and incorporated herein upon the SDHDA Board’s adoption of such amendments, without public notice and comment. II. GENERAL REQUIREMENTS A. ELIGIBLE PROGRAMS 1. Homebuyer Assistance Eligible programs include assisting qualifying homebuyers with expenses related to the purchase of a home, including those related to gap financing, lease-purchase, and self-help type programs. Additional requirements for Homebuyer Assistance can be found in Exhibit 4. 2. Homeowner Rehabilitation HOF funds can be used to rehabilitate the primary residence of single family, owner-occupied properties. Additional requirements for Homeowner Rehabilitation can be found in Exhibit 5. 3. Homelessness Prevention HOF may be requested for homelessness prevention activities that include tenant based rental assistance, project based rental assistance, payment of security deposits, or other homelessness prevention activities for qualified individuals and families in qualified housing units. HOF funds may be used for acquisition, new construction, or rehabilitation of a building that is or will be used to provide homelessness prevention activities and can be considered as an eligible activity under housing development. Costs to operate the facility are also eligible March 2022 Page 42 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx for HOF financing. Additional information regarding Homelessness Prevention Activities can be found in Exhibit 6. B. PERIOD OF AFFORDABILITY In consideration of providing HOF for affordable housing, the housing must be kept in compliance and restricted by HOF guidelines for the minimum affordability period of five (5) years or for the term of the HOF financing, whichever is longer. If a homeowner receives HOF funding for one activity, the affordability period must be met before receiving HOF funds for another activity. For example, the affordability period must be met after receiving downpayment assistance before the homeowner can apply for HOF funding for homeowner rehab. Additional information regarding SDHDA’s monitoring for compliance can be found in Section VIII of this Plan. III. FUNDING PROCESS Requests for HOF funds are considered in a two-step process: Application and Conditional Commitment. No program operations may begin until a start order has been issued by SDHDA. SDHDA reserves the right to not process any application that SDHDA determines is not: (1) complete; (2) consistent with the purposes and goals of this Plan; (3) proposing an eligible activity; or (4) financially feasible. A. APPLICATION STAGE The Applicant must submit a complete application and all documentation referenced in Exhibit 1. B. CONDITIONAL COMMITMENT STAGE Upon notification of a conditional commitment from the SDHDA Board, SDHDA will issue a Subrecipient Written Agreement to the Applicant outlining the terms and conditions of the HOF funding. The applicants will be required to accept the Subrecipient Written Agreement by returning the signed letter within 30 days of the Written Agreement. Failure to accept the Subrecipient Written Agreement may result, in SDHDA’s sole discretion, in a forfeiture of the HOF Award. Applicants will be required to provide additional information and documentation as outlined in Exhibit 1 Section B. The Applicant will have six months from the date of the agreements to provide the necessary documents, close the HOF loan and begin program services. Failure to start within this timeframe may result, in SDHDA’s sole discretion, in a forfeiture of HOF funds. March 2022 Page 43 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Changes to Program: The award of HOF funds is based upon information provided in the application and supporting documentation. Any significant change in an application, once it has been ranked and awarded HOF funds, may result, in SDHDA’s sole discretion, in a forfeiture of HOF funds. A significant change includes, but is not limited to, income being served, location, services being offered or any change that, had it been in the original HOF program application, might have resulted in the program receiving a different ranking or may have influenced the conditional commitment of HOF funds. Any changes to the program must be pre- approved by SDHDA prior to implementation. C. DISBURSEMENT OF FUNDS 1. Loan Documentation Loan documents may include but are not limited to a Subrecipient Written Agreement, Promissory Note, Mortgage 180 Day Redemption, Security Agreement, Declaration of Land Use Restrictive Covenants, Mortgagor’s Affidavit, as applicable. 2. Program Start A HOF financed program may begin when SDHDA has received all executed loan documentation and the applicant has received a written authorization to start from SDHDA. The program must begin no later than six months after execution of the Subrecipient Agreement. 3. Draws For HOF funded programs, draws will typically be on a reimbursement basis with applicant requesting HOF funds no more than twice per month. SDHDA may allow pre-funding of programs in an amount not to exceed 10 percent of the HOF award amount. Administrative fees may only be requested after services have been provided and will be reimbursed for documented expenses or 10 percent of the HOF award, whichever is less. 4. Loan Repayment Loan forgiveness or loan repayment terms and conditions will be further defined in the Promissory Note. 5. Recapture of HOF Funds Unless otherwise noted in the HOF loan documents, HOF funds provided for programs are subject to recapture by SDHDA if HOF criteria are not met, including but not limited to meeting the affordability requirements or program eligibility. Any funds recaptured by Subrecipient must be returned to SDHDA. Penalties, including interest for the period of time during which the property was out of compliance, may apply. IV. SCORING CRITERIA FOR HOF PROGRAMS Proposals will be reviewed initially for completeness, including all submission requirements referenced in Exhibit 1 and scored based on the following selection criteria. March 2022 Page 44 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx A. PROGRAM DEMAND (MAXIMUM 100 POINTS) All Applicants must submit a narrative addressing and documenting the need for the proposed demand, via a waiting list, etc. If the services are a continuation of an existing program, provide explanation of why the HOF funds are necessary, whether the HOF funds are expanding the services, replacement of other funds, etc. If HOF funds are being requested for a new program, applicant must document how the need for additional services was determined and whether other service agencies provide similar services in that geographic area. B. INCOME TARGETING (MAXIMUM 100 POINTS) Each of the following set-aside elections are separate and can be combined for up to 100 points and up to 100 percent of the units being restricted. An application can elect to set aside units for different AMIs, but a unit cannot be used to serve more than one set-aside election. % of Units Restricted AMI Target Points Awarded 100% 30% 100 100% 50% 70 100% 80% 50 100% 115% 20 Proposals for homelessness prevention activities will be scored as serving 100 percent at 50 Percent AMI, unless otherwise documented in the application. C. SUPPORT FROM LOCAL SOURCES (MAXIMUM 25 POINTS) Proposals containing one of the following will receive up to 25 points: 1. Letters of support from local businesses, organizations, or local government entities; or 2. Non fee-based partnerships with other agencies which enhance the capacity of the Applicant. D. PROGRAM POLICY AND PROCEDURE MANUAL (MAXIMUM 30 POINTS) Applicants who submit a written policy and procedure manual for their proposed program are eligible to receive up to 30 points. The manual, at a minimum, must outline the process for receiving applications, approving recipients, verifying income eligibility, and implementing the program. In order to receive full points, the manual must also include the forms to be utilized by the Applicant in administering the program. E. MATCHING FUNDS (MAXIMUM 30 POINTS) Applications containing written documentation of committed funds to be utilized in the program as match or leveraging for like activities, will receive up to 30 points. Points will not be awarded for additional funding provided by SDHDA as the match. F. FINANCING TYPE (MAXIMUM 25 POINTS) HOF funds may be utilized in a variety of financing options. Points will be awarded as follows: Financing Options Points Awarded Guaranty or Regular Amortization Loan 25 March 2022 Page 45 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Irregular Amortization Loan 15 Cash Flow/Deferred Mortgage 5 G. PARTNERING WITH OTHER AGENCIES (MAXIMUM 30 POINTS) HOF applicants who can document via written agreements, partnering with other agencies to provide a continuum of services, without duplicating services, will be awarded up to 30 points. The services being coordinated must be related services that enhance the success of the program recipients. An example would be the homelessness prevention provider partnering with a job service provider to find employment opportunities for the clients. Points will not be awarded for services that SDHDA already requires. V. OTHER REQUIREMENTS A. FAIR HOUSING AND EQUAL OPPORTUNITY All Applicants and owners must adhere to Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, which prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and disability. Additional information can be found at - https://www.hud.gov/program_offices/fair_housing_equal_opp. B. LEAD-BASED PAINT Applications that involve the renovation, sale or leasing of housing units built before 1978, must address the potential of lead-based paint hazards. Before renting or selling pre-1978 housing, landlords and sellers must disclose the presence of known lead-based paint and lead-based paint hazards in the dwelling. In addition, rehabilitation, renovation, repair, and painting activities that disturb lead-based paint (like sanding, cutting, replacing windows, and more) must be done within safe work practices. For additional information regarding lead based paint and safe work practices, please visit the following websites – https://www.epa.gov/lead or - https://www.hud.gov/program_offices/healthy_homes/healthyhomes/lead. C. CONFLICTS OF INTEREST Applicants must disclose to SDHDA if any conflicts of interest exist. A conflict of interest is deemed to exist whenever an individual is in the position to approve or influence the policies or action of the project which involve or could ultimately harm or benefit financially: (a) the individual; (b) any member of his immediate family (spouse, parents, children, brothers or sisters, and spouses of these individuals); or (c) any organization in which he or an immediate family member is a Director, trustee, officer, member, partner or more than 10% shareholder. Service on the board of another nonprofit corporation does not constitute a conflict of interest. D. DEBAREMENT AND SUSPENSION Owners and contractors are prohibited from employing, awarding contracts, or funding any contractors or subcontractors that have been debarred, suspended, proposed for debarment or placed on ineligibility status by the federal government. In addition, any owners who are debarred, suspended, or proposed for debarment will be prohibited from participating in the March 2022 Page 46 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx HOF program. Those excluded from participating are listed on the Excluded Parties List System found at https://www.sam.gov/SAM/. E. HISTORIC PROPERTIES Applicants proposing rehabilitation of a structure which is over 50 years old should contact the local and State Historical Preservation Offices to determine if the proposed rehabilitation will have any effect on the historical significance of the structure or if adherence to the National Historic Preservation Act (16 U.S.C. 470) is required. F. FLOOD INSURANCE SDHDA will not allow HOF funds to be used for rehabilitation of housing units that are located in FEMA designated special flood hazard areas, unless flood insurance has been purchased for the property or the property is located in an area of low risk and the proposed rehabilitation was not caused by flooding, drainage, or other ground water issues. VI. MONITORING FOR COMPLIANCE HOF program compliance will be assessed through annual reporting, certifications, and on- site reviews conducted by SDHDA staff. SDHDA will provide a HOF program compliance guide detailing required responsibilities and provide compliance training for Applicants. SDHDA will require the owner or management company to attend Fair Housing compliance training prior to final disbursement of funds and at a minimum of once every three years from the date of final disbursement of funds. SDHDA may impose financial penalties for non-compliance. All HOF program, rent, and occupancy requirements, along with other special use restrictions imposed under the Plan, will be made part of the Subrecipient Agreement. VII. DEFINITIONS Affordability: Affordability refers to the requirements of the HOF program that relate to the cost of housing both at initial occupancy and over established timeframes. Affordability requirements vary depending on the nature of the HOF assisted activity (i.e., homeownership or rental housing) and the amount invested. Affordable Housing: Housing that is affordable if the total housing costs, which includes rent, utilities, mortgage, and related expenses, represents no more than thirty percent of gross household income for the AMI being served. Affordable Units: Housing units targeted for 115 percent of AMI or less. Annual Income: For rental housing, SDHDA uses the annual income definition as defined in 24 CFR Part 5.609 (Part 5 Annual Income). For homebuyer activities, SDHDA uses the adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual federal annual income tax purposes. Applicant: Applicant refers to the owners, developers, and sponsors involved with the project. March 2022 Page 47 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx Area Median Income (AMI): The income determined by HUD on which HOF income limits and rent limits are based. Builder’s Profit: Compensation to the builder for completing the construction contract. Builder’s Overhead: Builder's business expenses (e.g., rent, insurance, heating, etc.) not chargeable to a particular part of the work or product to build the project. Commitment: The written, legally binding agreement between SDHDA and the project owner providing HOF funds to a project. HUD: U.S. Department of Housing and Urban Development. HUD Housing Quality Standards (HQS): The performance standards for housing as established in 24 CFR Part 882 and amended by the Lead Paint Regulations in 24 CFR Part 35. Service Enriched Housing: Projects providing affordable rental housing (permanent or transitional) that include services and assistance that are available to residents upon request. The services must be unique to the property, verifiable, on-site, long-term, and provided on a daily or continuous basis. The services may be provided by the owner, the management company, or a third-party organization but must be tailored to individual residents and managed by the property. There must be a definable increase in project development costs and or operating cost to the owner to be able to provide the services. The application must include a letter of intent from the service provider detailing the services to be provided, the tenants that will receive the services, the method of delivering the services, and the staffing for the services which may include but is not limited to the following: A. Homeless B. Persons with physical disabilities C. Persons with mental disabilities D. Persons with developmental disabilities E. Housing for Older Persons 62 or older (Assisted Living or Congregate Care Facilities as defined under Definitions) F. Assisted Living or Congregate Care Facilities as defined under Definitions G. Other Services and assistance are not a requirement for tenancy but there must be a mechanism for immediate support and assistance when requested by any resident. Single-Family Project: A project consisting of individual single-family dwellings or a project with one or more buildings containing four or less units per building. March 2022 Page 48 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 1 REQUIRED SUBMISSIONS FOR COMPLETE PROGRAM APPLICATION Applications must be submitted using the appropriate SDHDA HOF Application Form. For an application to be considered as complete, the application form must be completed and signed and the application must include the following items. Applications submitted for Programs must include the following: 1. Completed and signed application form. 2. Documentation of Program Demand (Section IV.A.). 3. Project narrative outlining the program characteristics (services provided, clients served, partner agencies, other funding sources, etc.). 4. At least two letters of local support for the proposed program. The letters must be from local organizations such as the city office, economic development corporation, public housing authority, employers, commercial lenders, etc. (Section IV.C.). 5. Program policy and procedure manual (Section IV.D.). 6. Information regarding the Applicant/owner, including staff and years of experience in housing or related field or service area. i.e. resume’s 7. Documentation of other program funds being provided as match funding (Section IV.E.). 8. If applicable, written agreements with partnering service agencies (Section V.G.). 9. Any other information requested by SDHDA. In addition to the above, program applicants must submit a copy of the program policies and procedures outlining how the program will be administered including copies of the template forms and documents. March 2022 Page 49 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 2 HOF PROGRAM APPLICATION CHECKLIST The following items must be submitted with the Application form to ensure a complete application is received by SDHDA. Please refer to the HOF Plan and application for clarification of any submission items. Submission Item Enclosed Meet SDHDA Requirements All Applications: 1. Completed/Signed Application Form 2. Local Housing Need/Program Demand 3. Project Narrative 4. Letters of Local Support 5. Applicant/Owner Information 6. Documentation of Match 7. Program Policy & Procedure Manual 8. Self-Scoring Worksheet March 2022 Page 50 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 3 HOF PROGRAM SELF-SCORING WORKSHEET PROGRAM APPLICATIONS Sub Points Points Available Points Awarded Comments A. Program Demand 100 B. Income Targeting 100 1. 30% AMI Units (100 pts for 100% of the units) 2. 50% AMI Units (70 pts for 100% of the units) 3. 80% AMI Units (50 pts for 100% of the units) 4. 115% AMI Units (20 pts for 100% of the units) C. Support from Local Sources 25 D. Program Policy & Procedure Manual 30 E. Matching Funds 30 F. Financing Type 25 1. Guaranty or Regular Amortization 25 2. Irregular Amortization 15 3. Cash Flow Mortgage 5 G. Partnering with Other Agencies 30 TOTAL 350 March 2022 Page 51 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 4 HOMEBUYER ASSISTANCE Homebuyer assistance can be structured in any number of ways to encourage the acquisition of affordable homes. Applicants can help eligible homebuyers purchase affordable homes by providing down payment or closing cost assistance, low-cost loans, or loan guarantees. Applicants must have operating procedures or an administrative plan outlining the type of assistance being provided, selection of homeowners, and overall program administration. Applicants are eligible to receive an administrative fee for documented expenses or up to 10 percent of the HOF award, whichever is less. Principal residence: Purchasers must occupy the property as their principal residence. Homebuyer Education: All mortgagors receiving Homebuyer Assistance must participate in homebuyer education, and if warranted, homebuyer counseling and credit counseling. Eligible Property Types: a. A single-family property (one unit); b. A condominium unit; c. A cooperative unit or a unit in a mutual housing project (if recognized as homeownership by state law); or d. A manufactured home - At the time of project completion, the manufactured home must be (1) permanently affixed to the land by a foundation and taxed as real property; (2) connected to permanent utility hookups; and (3) located on land that is owned by the manufactured homeowner, or on land for which the manufactured housing unit owner has a long-term lease for a period at least equal to the HOF financing or first mortgage, whichever is longer. Property Standards: All homebuyer properties must meet certain property standards. a. Acquisition: If no rehabilitation or construction is planned, the housing acquired must meet State and local housing quality standards and code requirements. If no such standards or codes apply, the property must meet HUD Housing Quality Standards. b. Rehabilitation and new construction: Housing that is being constructed or rehabilitated must meet all applicable state or local codes, rehabilitation standards and ordinances, and zoning ordinances as further described in Exhibit 6. Purchase price of the home shall not exceed the appraised value. Recapture Guidelines: Homebuyers receiving HOF funds will be required to adhere to the recapture guidelines per Section III.A.2.c. of this Plan. Recapture guidelines will be incorporated into a deed restriction or covenant running with the land. In determining the forms of assistance, the Applicant should consider the particular needs of the program’s target participants. Various alternatives are discussed below. Downpayment / closing-cost: For homebuyers who have a steady income to make monthly payments but don’t have the means to save for the upfront costs of purchasing a home. Gap financing: For homebuyers who have a steady income that is insufficient to cover the total monthly payment, HOF funds can be used to reduce monthly carrying costs by providing gap financing and reduce the principal amount borrowed. Agency may also consider an “interest down” (providing funds directly to the lender to reduce the interest rate on the borrower’s loan.) March 2022 Page 52 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx The gap financing, if provided as a loan, can be paid in small monthly installments (for a below- market-rate loan) or at the sale of the property (if a deferred-payment loan). Other guidelines: For purposes of ensuring feasible financing opportunities for homeowners, homebuyer assistance programs utilizing HOF will adhere to the following requirements. a. Maximum amount of HOF assistance is $20,000. b. For homebuyers above 80% AMI, the homebuyer’s first mortgage must be a minimum of 80% of the acquisition cost, for homebuyers below 80% AMI, the homebuyer’s first mortgage must be a minimum of 70% of the acquisition cost. ADVANTAGES AND DISADVANTAGES OF VARIOUS FORMS OF ASSISTANCE SUBSIDY PROS CONS Forgivable Loans • Simple to administer • Easy to explain • Often necessary to reach very- low-income • Expensive • No repayment possible • May be hard to “sell” politically • May create expectation of future free assistance Deferred Payment Loans (DPL) • Simple to administer and explain • No monthly payment required • Allows for repayment • Prevents windfall gain to borrower if property values increase significantly • No payment received on a monthly basis • Might never be repaid if property has low value or future appreciation is limited Below -Market Rate Loans • Provides immediate repayment • Allows agency to act as “banker” • Time-consuming and staff- intensive • Requires underwriting expertise • Requires loan servicing • Inefficient leverage as compared to DPLs and forgivable loans Loan Guarantees • Simple to administer (if no defaults or if lender handles property disposition upon default) • High leverage • Improves loan-to-value and income-to-debt ratios for other lenders • Do little to subsidize the cost to the homebuyer • Shifts underwriting and default risk from the lender • No repayments to the program • Can tie up funds for long periods of time Lease-purchase is another method of assisting with homeownership. Ownership of the property transfers within 36 months of the homeowner signing the lease-purchase agreement, unless the household occupying the lease-purchase unit is not eligible or able to purchase the unit at that time. The developer then has an additional six months to identify an eligible homebuyer to purchase the unit. March 2022 Page 53 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 5 HOMEOWNER REHABILIATION Applicants can apply for Housing Opportunity Funds to provide a homeowner rehabilitation program. Applicants must have operating procedures or an administrative plan outlining the type of assistance being provided, process for selection of homeowners, and overall program administration. Applicants are eligible to receive an administrative fee for documented expenses or up to 10 percent of the HOF award, whichever is less. Applicants must have established standard accounting practices including internal controls and fiscal accounting procedures to track agency and program budgets by revenue sources and expenses. Applicants must also have available cash flow to effectively operate their programs since HOF funding is a reimbursement program. Although the total cost of the rehabilitation work to the home is not limited by SDHDA, the amount of HOF homeowner rehabilitation funding assistance provided to each homeowner may not exceed $15,000 without approval from SDHDA. HOF homeowner rehabilitation funds may be combined with HOME homeowner rehabilitation funds, however, total funding per homeowner may not exceed $40,000. Households must own and occupy a home, as their principle residence. Subsequent to the completion of HOF funded rehabilitation activities, continued ownership is required and is subject to recapture provisions that will be incorporated into loan documents. HOF funding can be provided to the homeowners in the form of an amortizing loan, conditionally- forgivable loan (no more than 1/60th of loan forgiveness for each month the person owns and maintains the property as their primary residence) or as a deferred loan. Homeowners receiving HOF homeowner rehabilitation assistance must execute a Promissory Note and Mortgage and Security Agreement securing the property as collateral for the financing during the affordability period. Homeowners must also sign an agreement with the Applicant detailing applicable program processing procedures and requirements. In the event that the homeowner sells the assisted property during the affordability period, the portion of assistance that was not repaid or forgiven at the time of sale or transfer of the property will be repaid to SDHDA. Rehabilitation work must primarily be to bring the home into compliance with property standards, improve energy efficiency, and/or make the home more accessible. The Applicant must conduct an assessment of the proposed property to be rehabilitated and coordinate appropriate work to be completed. Applicant must make the determination that all the work is necessary and can be completed with the funds committed and ensure that the homeowner is qualified based on eligibility criteria. The Applicant must coordinate the rehabilitation activity, facilitate the execution of all required documents, ensure that work is performed in accordance with all required property standards, and submit required project documentation to SDHDA for reimbursement of expenses. Applicants may use contractors, their own work crews (force account labor), or self-help program to perform the rehabilitation work. Rehabilitation work may not begin without SDHDA’s review and approval of the project. March 2022 Page 54 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx EXHIBIT 6 HOMELESSNESS PREVENTION Applicants can apply for Housing Opportunity Funds to provide homelessness prevention activities assisting people to quickly regain stability in permanent housing. Applicants must have operating procedures or an administrative plan outlining the type of assistance being provided, selection of participants, and overall program administration. Applicants are eligible to receive an administrative fee for documented expenses or up to 10 percent (10%) of the HOF award, whichever is less, except for HOF funds requested for acquisition, new construction, or rehabilitation costs. Applicant’s operating policies and procedures must include: • Evaluating individual and household eligibility for assistance, defining who qualifies as at- risk of becoming homeless; • Assessing, prioritizing, and reassessing individuals’ and households’ needs for assistance, taking into consideration other available resources and support networks; • Coordinating among other service providers; • Determining and prioritizing which individuals and households receive homelessness prevention assistance; • Determining what percentage or amount of rent and utilities each program participant must pay while receiving assistance; • Determining how long a program participant will be provided assistance and whether that assistance should be adjusted over time; and • Determining the type, amount, and duration of assistance that may be provided to a program participant, which could include maximum amount of assistance, maximum number of months, or maximum number of times the program participant may receive assistance; Applicants must have established standard accounting practices including internal controls and fiscal accounting procedures to track agency and program budgets by revenue sources and expenses. Applicants must also have available cash flow to effectively operate their programs since HOF funding is a reimbursement program. Eligible Applicants must have (1) prior experience serving individuals and households at-risk of or experiencing homelessness, and (2) staff with expertise in case management skills. Applicants will be required to utilize the Homeless Management Information System (HMIS) operated by SDHDA. HOF will be awarded to Applicants based upon the following: 1. Need for the funding to provide the corresponding services and assistance; 2. Plan for distribution of the funds in an effective and efficient manner; 3. Collaboration efforts with other agencies, and 4. Applicants’ prior experience with this type of program. HOF may be utilized for the following activities: • Costs for new construction or rehabilitation of a building that will be used to provide homelessness prevention services March 2022 Page 55 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx • Payment of operating expenses of the agency providing the homelessness prevention services • Payment of rental arrears. • Temporary rent or utility assistance • Rental application fees. • Security deposits equal to no more than two month’s rent. • First and last months’ rent. • Standard utility deposits. • Utility payment. • Moving costs - truck rental or hiring a moving company. Assistance may also include payment of temporary storage fees. • Service costs - Housing search and placement, housing stability case management, mediation activities, legal services necessary to resolve housing issues, costs necessary to obtain legal identification documents, and credit repair/counseling services. The costs of homelessness prevention are only eligible to the extent necessary to help the program participant regain stability in their current permanent housing or move into other permanent housing and achieve stability. Applicants must ensure that assistance is only provided for housing units that meet rent reasonableness for their market area. Each program participant receiving rental assistance must have a legally binding written lease for the rental unit. March 2022 Page 56 of 57 P:\p-hd\development\Housing Opportunity Fund\Planning\2022-2023\2022-2023 HOF Allocation Plan.docx City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0231,Version:1 City of Brookings Progress Report. Summary: Jacob Meshke, Assistant City Manager, will provide a progress report highlighting the City’s activities/projects. Attachments: Presentation City of Brookings Printed on 5/19/2022Page 1 of 1 powered by Legistar™