Zoning Hearing Board - Regular Meeting

Heat. Heat. Hey, hey, hey. Heat. Heat. Heat. Heat. Heat.

Heat. Heat. Heat. Heat. Heat. Heat. Heat. Heat.

Hey. Heat. Heat. Heat up here. Heat. Heat. Heat. Heat. Heat. Heat.

Heat. Heat. Heat. Heat. Andy Fair is our third uh member and she's participating remotely. Can you hear us, Sandy? Okay, Andy, can you hear us? I believe you're on mute. Okay, good. All right. And Ethan is also present. He is just walking through the door. Um, so, uh, I'd like to start with, uh, the pledge of allegiance. So, if everybody could stand, face the flag, and repeat after me. Pledge

of allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Thank you. I will open up the floor for public comment. I see some friendly faces in attendance today. If you would like to speak, please do so now. Um, we'll take, you know, one person at a time. So, if if anybody's looking to speak, please raise your hand, let me know. Yes, sir. Could you please step up to the podium, state your name for the record? Uh just so you know, we have a five minute time aotment for public comment.

Hello, my name is Emmanuel Lopez. Uh I just recently uh purchased a property at 616 Wayne Street. Uh it was uh highly delapitated uh when I purchased it. Uh but I have over two decades experience as a general contractor for uh repairing um and rebuilding places like this. Uh but uh after I purchased the building um I had some medical issues. I've been in uh Buffalo, New York at uh Roswell Center uh getting uh cancer treatment. Um so I haven't had a a lot of time to work on it yet. Um but I've now um starting to uh restart working on the the property. Uh I plan on having it as my main residence. It's my only uh house that I own at the moment. Um and um I already invested thousands of dollars into it and um I already uh painted the outside and uh repaired all any windows or any points of eress that might be uh needed to take care of and uh right now he's planning on u continuing uh working on that progress. Uh so I just wanted to uh let you guys know uh that I'm working on it.

What was that address again? 616 Wayne Street. 616 Wayne Street. And Aaron, what's the current status of that property? The property is bladed and on the resolution today for the authority to follow through with condemnation action against the property. Is that the 619? It it's it's supposed to be 616 Wayne Street. The resolution was revised. Okay. Oh, I see. Yeah, the parcel number is correct. The original resolution had 6. Okay. I I must be looking at the old.

All right. And have you had any conversations with the owner? I spoke with Mr. Lopez several weeks ago and I received some documentation at 2 o'clock this afternoon. Okay. I haven't had a chance to fully digest currently, but we can And I can I can dig deeper into that the whole process when we get to that port on the agenda. Okay. I can send over any uh paperwork or or recent pictures uh if you need it as well.

Okay. Great. All right. We'll we'll I guess we'll talk about that a little bit further on in the meeting. Um and then we can discuss whether we're going to keep that on as uh an item in terms of the resolution in the future. So we'll we'll be in touch. Thank you for coming. Is there anyone else in the audience that would wish to speak? And I don't see anybody online. So, um, moving ahead. Do I have a motion to approve the consent agenda? So, moved.

Mr. Chairman, one amendment. Uh, we have the gentleman from Northwest here. I would just like to have him present under the finance report. Okay. When we get to that part. So just okay it's it's under new business but in the essence of his time if we could have him speak during the finance report. Okay that's fine. Um we have a motion on the floor to approve the consent agenda and then we have a second from Kevin. Um so all in favor I any opposed hearing? None. Motion carries. Uh, do I have a motion to approve the uh, minutes from our March meeting? Do I have a second? Second. All in favor?

I. Any oppose? Hearing none. Motion carries. Uh, jumping ahead to the finance report and then we'll have Northwest. Um, I didn't catch your name. Tim Morland. Tim Mo. Okay. if you would like to step to the podium. And Erin, do you have any formal introduction or April? So, Erin and I had um an appointment with uh two gentlemen at Northwest Bank for potential investments that we were looking into. So, Tim was um what is your official title, Tim? Um financial adviser.

Financial adviser. Okay. So he had put together and proposed a packet that's um a little different than just CDs or money market. So he was here to talk about that before we present that as an option. So if you had any questions while he's here, he would be the expert on on that particular investment. Okay. Yeah.

Uh yes. Uh Mike Euan and I met with Aaron in April uh just a few days back and they said that uh part of the money uh the board is suggesting be invested in um investigating what they meant by that. It seemed like your investment would be um perhaps two years to to five but your out of your longer term money the bank loan fund revolving

revolving loan fund right so with that in mind not not a longer term 10-year plus investment I wasn't re recommending any equity any stock market investment but rather uh a low volatility portfolio it's a portfolio that I run for some other nonprofits as well us uh business owners a way to enhance uh what you get um beyond what a money market can pay. Uh short-term interest rates have come up since 2022 and then dip back down a little bit. But um I won't speak to the banking side of it, but we will do better on interest rates for the checking portion that that you need for the investment portion. Uh the low volatility portfolio uses a combination of short-term bond funds which um are far less risky, far less volatility than a intermediate term bond fund. Uh there is a little bit of reaction to interest rates. Uh but it's a way to capture better return than money market mutual funds. And then uh currently I allocate 36% of a low volatility portfolio to uh what are known as arbitrage funds. Arbitrage funds may seem a little bit more complex but they have been around for uh 35 years and uh they just look for mispricings in the market. They don't take a position um in in the stock market. They're not looking for the stock market or bond market to go ahead but just um looking for inefficiencies in pricings. And this can be around uh company mergers or the uh stock option mispricings as well as convertible bond mispricings. And so these type of funds um really are aiming to get you a 5% type of return. They're looking to generate positive returns about nine years out of 10. And if

short-term bond rates continue to come down, this is a great place to continue to seek for that 5 to 6% type of return. The portfolio last year net of fees did 6.01%. With lower interest rates, I would predict less than that, right? and and I can't put a a figure on that, but I do like to talk about risk uh first, making sure that um we're aligning together on what type of downside you could see in this portfolio. Obviously, I do a lot of investments where there's stock uh stock market investments and this uh this portfolio has a little bit in bank loan and high yield funds that can react to news the way that stocks do. just a little bit. Um, last year as I presented I guess a year and a half ago to a u to a local church um I had used this same sort of thing and it says if US large cap stocks fall 15% that the portfolio might drop 1 and a.5%. And in fact, last year when we had the tariff fears that drove the stock market down 19% between February and April, um it's it it dropped my portfolio one a.5%. And that particular church on their $900,000 investment saw a $17 loss for the the month of March. That was their only month where the portfolio was down all of last year. Admittedly, this portfolio was down this past month. So, uh, a negligible amount. In fact, on that same that same church, they went from 9 or 914,000 at the end of February to 911,000 at the end of March and right back to 914,000 today. So, it is a um low volatility re uh portfolio that it's meant to manage

risk. Um, at the same time, we're trying to get you a couple of points above what you could get in a money market, which, you know, if if you if you're looking at $1.8 million, you're you're talking about tens of thousands of dollars in additional return versus the safest type investments that you could have and well worth it. Um, I do work with um nonprofits as, as I've mentioned, I appreciate the um the mission of Erie Redevelopment Authority. I'm first moved here from Mercer County in 1998. Um, redevelopment is certainly needed in our city and I'm I'm proud to see uh see it in action. Um, if I can be of some help on this, um, I'd be glad to send a an email that that that covers what the portfolio looks right now. um I would have limited discretion on it, meaning I could make changes within the portfolio, but not changes to our uh risk tolerance or to our goals. I I would welcome your questions uh regarding this.

Um what kind of management fees would be associated with that?

Yeah, so I I'm I'm allowed by my uh superiors to discount uh for nonprofits. So, um, 65% for$1 to $2 million. If it's over $2 million, it's 0.6%. So, these are that's an annual fee, but it's charged quarterly. So, the commitment is just quarter by quarter, right? If you are five quarters in and decide it's not for you, there's there's no third quarter charge, right? It's just charge quarterly. But 0.6 six uh% over 2 million 1 to2 0.65 and versus the typical um a typical manager Fisher Investments charges 1 and a.5% on your first half million. Uh it's very typical to charge at least 1%. This is because it's meant to just outperform money market mutual funds. We're not trying to charge you an amount that would prohibit that. So, um the that's uh that's is an excellent fee, I guess, right? Um and you know, that's paid quarterly and and taken out of the the portfolio. You don't have to write checks for that. And then um how liquid would these um either bonds or or or funds be relative to you know a typical money market account?

Exactly the same liquidity. Um so ETFs and uh mutual funds are both utilized. ETFs can be sold any day that the stock market's open between 9:30 and 4. Mutual funds always sell at 4:00. So, if you reach me before 4:00 to liquidate, we uh sell that day. We a it to your checking account or wherever you wanted it a too. We'd set that up ahead of time uh the next day, but it takes your bank, whether it's Northwest or whoever receives it the day after that. So, it's two business days. So, if you were the worst case scenario, you call me Friday at 401 and I can't sell till Monday. And I know from a bank there's a there's a lot of Monday holidays. So I sell Tuesday at 4:00 and your money is in your account on Thursday, but two business days um is the liquidity the exact same as a money market mutual fund. Different though than a bank a bank money market, you know, you could write write checks on it or go to the teller window. Um but uh money market mutual fund and the this portfolio has have the same um two business days to receive your your funds. Great question.

Thank you. And for loan purposes that wouldn't be an issue.

Yeah, that that wouldn't be an issue as as sorry. Uh no, that that wouldn't be an issue. And as we continue to to look and evaluate how we can leverage those funds and utilize those toward housing development in the city of Erie, I think our timeline of any expenditures related to that is is probably roughly 8 to nine up to maybe 12 months out at this time as we continuously work through the the early stages of the development process. And then we would be looking at would we be moving all of our funds to Northwest then or is it just for purposes of like the loan?

It it would be just for the purposes of of loans at this time. And so essentially our conversations with our current bank uh we've got a little bit better response from Northwest regarding that. And so our initial uh plan right now would be to move over those loan investment funds and then open a checking account. And eventually as we cons as we continue to evolve and and work through our banking processes, we can eventually transition more over to there. But at the current time with grant funds, it's easier just to to move what is liquid currently. And then there would be no additional fees for the checking accounts or anything like that. Correct. Um well, to be fair, okay,

I'm a financial adviser. I'm a charter retirement planning uh coun uh chart counselor but uh I do not do the bank account so there there is still a a wall of separation um and I as far as I know I mean for the amounts that you're talking about I'm sure there's a lot of fees that can be waved. Uh I don't want to speak to that directly. Did did you guys get with with Mike on that? Yeah, he did send us some stuff over. So we have that. Yeah. So, we're currently evaluating all of our our checking accounts to see what what's tied to what and what's available to be transitioned and at what time. Okay. I'm sure you'll get first rate service and and the lowest or no fees possible, but Right.

Um I I can't honestly speak to the uh the the fee situation on on those funds. Sure. No, that's understood. Any questions? Good. Andy, do you have any questions? Ethan, any additional questions? Nothing else. All right. Well, we certainly appreciate you taking the time out to come down and present. Um, and yeah, I guess we'll be in touch as we move forward. Correct. Yeah. Yeah. So,

yeah, my my uh cell number is at the bottom of the email if that's shared. Uh, I'd welcome you to give me a call at any point. All right. All right. Well, thank you. Thanks very much. I appreciate appreciate your time. April, if you want to jump into the finance report. Yes. So, in your packet, um, first, it looks like the balance sheet is on top. Um, if yours is put together the same as mine. No.

Does yours say? Yeah. So, um it looks like total right now across um our cash accounts is a little over 5.5 million. Uh that's the checking savings, the ARPA, LHRD. Um accounts receivable, we have 230,000 uh sitting in there that we are waiting for. So, that's the $200,000 in loan interest that we are anticipated to receive next week hopefully. Uh we have a an invoice out for HCE um the housing authority risk assessments and then we are waiting for some PA stateled funds for about 16,000. On the second part of that the back uh the biggest part of our liabilities hold is the deferred revenue. Uh that's a lot of the ARPA funding that just hasn't either been drawn down or spent yet. And then the fair funds that we had received for projects that are just starting to take off and that was 450,000 on the profit and loss. Uh we are showing total revenue of about 451,000 from the beginning of the year through the end of March. That also reflects the $200,000 in interest that we are anticipated to receive from the Erie County Redevelopment Authority for the Ironwork Square loan. um which inflates our current period of performance um on the back of that. So our largest expense category right now um at almost 241,000 is the rehabilitation um and the housing activity and that's indicating that the funds are actively being put towards the projects that are moving forward rather than sitting idle. um we just have not been able to recover those funds or get reimbursement for those as quickly as we've been spending them due to two audits going on simultaneously at the moment. Uh so we do have an operating loss of 102,000 which is significantly down from the

over 300,000 I had last month. So I am working on it diligently. The next one is the check detail report. So that gives a list and memo of all of the checks that were dispersed for the month of March. And then the budget verse actuals page um it's showing that only 6.7% of our budgeted revenue has been recognized. That's due to ARPA funding not having been drawn down yet. But uh towards the end of that on the back our spending is controlled at 8.23% because we are not delaying that. Um as the invoices come in our vendors need to be paid. And then um major categories like rehab are just starting to ramp up. So higher activity is expected as the year progresses.

Do you have any questions? Not a question, but I saw the line items for television advertising and I was watching TV with my wife and I saw it and I got very excited. So yeah, I am curious if we did get some packages for the Super Bowl, I think, right? Or the the Olympics. The Olympics. Yeah. Did you see any of those? Yes. Good. Yeah. Otherwise, they usually just stream everything. So, um that was specifically to push the LHRD funding. Yeah. Yeah. I I'm wondering um do do you do we know if any of the interest that has come in has been based on those? It would be nice to have some kind of sense of Holly says yes. Wonderful. Okay. Thank you. Thanks.

Any questions?

Nope. I'm good. And then how does this compare again to like last year around this time? I mean, are we operating at kind of like the same measurables? Um because it it would be helpful. I mean, if maybe in the future with that budget versus actuals like we have, you know, showing the the I guess what it was from last year just to kind of see from year to year that progress in comparison. How so were we still were we operating at a loss around this time? I mean, is that kind of cyclical? Yeah, sorry. In the beginning of the month that or beginning of the year, apologize. Um, that's pretty typical, especially as we are still January, beginning of February trying to make sure we wrap up the previous year, the end of that year, and then auditors start with their long list of requests actually both um for land bank and the redevelopment authority like it was the middle of February this year, so it started a little earlier.

So, nothing concerning? No. Yep. Okay. No, it's out there. I just need to uh get the paperwork together. Right. Right. Understood. All right. Do I Well, is there a motion on the floor to accept the financials pending audit? Second. Second. All in favor? I. Any opposed? Hearing none. The motion carries. Report of the executive director. Oh, actually, sorry. I'm going to skip that and go to Jean. Solicitor's report.

Good afternoon. I put together. We have a couple of transactions coming up. Uh we finalized and have those funds submitted there. Item number two. I just want you to be aware of that that is going to be filed here. The next is to be filed uh by council on April 20th. So there'll be detailed report. So just give you a heads up there. The subdivision and again thanks to convey the properties as and then to integrate those conveyed properties into their existing properties. So we're working with them to get that done. So we should have care 71 West 18th Street. I'll talk to you about that a little bit. That was one where we tried to reach uh tried to reach an agreement u with this gentleman and everything went radio code silent um kind of like my mic u and um and we needed to do something uh to bring this to a head. So there was a motion presented um to the judge to authorize us to pay the just compensation into court and to uh get a court order for him to set a

hearing date. So uh that that was accomplished by Judge Pitchani. Um the um payment has been made into court and we've been providing the uh board of view um with dates of availability. Um it hasn't been set yet, but um my team and I have talked about it again this morning that that we'll keep we'll keep pushing it um because we need to bring it to a head one way or another. And then uh and then last uh is just to to reaffirm that what what we've done is when when we're advised as to what would be the blighted properties that would be available for condemnation. We formally set up the file get get the title search um prepared and reviewed so that we can uh respond accordingly. So we're doing kind of doing that in advance. I don't want to do too much put the cart too far ahead of the um the horse, but it at least it's a quicker turnaround time. So, we've acco we've accomplished that with regard to these properties.

Mhm. And then in terms of like the bladed properties that are slated for eminent domain when I guess once we approve the resolution like you're not we're not going to be filing the condemnation like the notice of condemnation or the declaration of taking in mass. It's going to be parcel by parcel. Correct. It it it is it is. So there there may be there may be and it's a great question because in the past what we had done was almost was too many, right? But there there are some that that may be together for

ease or um for review, but there they are going to be sent in independently for the for the most part. There may be two together, but for the most part, it'll be individually. Okay. Yeah. Absolutely. We we And I think that was that's more of a question for Mr. Lopez's concern as well, just so that if you know, if based on the discussion here, if we elect to end up removing a property from that resolution, that's not going to present an issue for you. It's it's it's not uh it's not. And and if if if things are filed and if things need to be adjusted, they can be as well.

Even at even if we approve the resolution as is, we can then also reach out and amend that. That's correct. Okay. In the past, what we had done is we we had put almost like lock, stock, and barrel like 35 together. It was just it was thought that it was a a better process and it was anything but that and and that caused significant issues with the court and being able to pull something out of it because it was all right together. Right. Okay. So, we're we we we learned we we learned how how to make it easier for us and also accommodate the land owner as well, right? Be more nimble.

Correct. So, with that, that's that's the extent of my report. Great. Any questions from the board? Yep.

Andy, any questions? Nope. All right. Thank you, Jean. Aaron. All right. Thank you. Uh, so first off, I would like to, you know, just bring to the attention of the board. The look of the agenda has changed. uh with the new mayoral administration uh they we have been working through the ABCs the authorities boards and commissions with the city and trying to get a uniform approach to how all of the agendas the operation really the board appointments and how all of that go to have more more fluid operation amongst the mayor's administration and the authorities their executive directors and their board. So, one of that has been to streamline and unify the agenda and the way it operates and the way it looks. So, that's that's the reason for the change on the agenda. And so, there's really not much. We we we're kept it the same as the general agenda goes. Uh we did split out old business and new business just to kind of again bring it to a continuity with uh the other city authorities, boards, and commissions. So, uh, that's that's the reason the agenda looks different, just so that on the city's website and everywhere, you know, citizens are used to seeing one general agenda. Uh, any questions on that? Okay. All right. So, there are a couple. There's my executive directory report and a memorandum. Uh, I'll briefly touch on the stuff around the memorandum and the housing development. I'm not going to go into any specifics. If the board really wants to talk specifics, I would request an executive session due to real estate and the implications around any public disclosure of what we're working on could lead to property holdings and and acquisitions that would be detrimental to the development of that plan. So, that would be the my rationale behind holding off on any specifics. But, uh, on my executive director report, a couple things I just want to touch on.

uh the Emma Howell apartment ribbon cutting on March 27th. Uh that was a landbank development project under a development proposal with housing and neighborhood development services. Uh that was a property where the land bank requested the redevelopment authority to acquire 1319 Parade Street through the bladed property process. Uh the redevelopment authority acquired it through the eminent domain process, transferred the ownership over to the land bank, continued to work on clearing the title through with Gene and his team. Ultimately entered a development proposal, but then on the other end of it once the developer was identified, hands came to us and we granted them money through the new production program to complete the funding stack on the development of that project. So we were the redevelopment authority was of course you know involved on the acquisition side of it and then also on completing the funding stack to complete the rehabilitation. So that was a a good project to see come to completion. Uh they did also generate a or get a historic marker which signifies the Emma Howell Apartments and kind of goes through the history associated with Emma Howell and her tie to the Underground Railroad and since she had owned her and her family had owned a substantial part of that city of that part of the city of Erie at some point as part of their farm. Uh so there's a a state historical marker in front of the building. So feel free to stop and read that. There's far more detail there than than I can even begin to say. So, uh, that was a a big part and something I I like to say kind of showed the process working full circle and because that property touched blighted property review, redevelopment authority, land bank development proposal, the access to grant funds, and ultimately a river ribbon cutting to create four units of of housing within that parade street corridor.

uh we we met with the Eerie Waterworks which which was another good good discussion and good process and good time to to engage the waterworks. We work with them kind of on both sides of of the authority on the rehab side of it. We reach out to them a lot to gain information on account activity when we provide rehabilitation funds to individuals. We want to make sure they're current on their taxes, water, sewer, garbage. We want to make sure they're an upstanding citizen. And so with that we we created and kind of fine-tune that that process so that we work with Erie Waterworks better. But then on the other side of it with bladed property acquisition again we reach out to waterworks on certain properties to see if there is active water service. That's a a a way we can tell that a property is uninhabitable. If it does not have water service a property can't be habit habitable at that point. So we we work with them on that. So, we met with them, kind of walked through the process, got some new point of contacts down there and have some some documents and stuff that we can help streamline that process. Uh, so that was a good conversation. Uh, on the the housing development side, working with Infinite, Eerie, uh, I sit on four meeting groups. uh Bayfront East Side Task Force, our West Bayfront Center City, and then just a housing development group with Infinite Erie with uh Wyatt and and Kim Thomas to work through how we look at how we work on moving development forward in the uh city of Erie. And so, right now, our conversation is around trying to narrow down the cost of development. what is the cost to develop a single family property on one of our standalone lots in the city of area? And so we have identified some some lots across the city of area that the redevelopment authority and land bank have in holding. And we're we're working on two different pricing modules. One is pricing out modular construction and

placing modular units on those buildings and then site stickuilt homes. So, we're working on pricing for those two models right now and working through some conceptual drawings. Uh they'll we're working with one company out of Pittsburgh which you know I module which we toured a few weeks ago. They're going to be in town the end of April. We're going to walk center city uh with them at that time. I'll extend an invite to the board once I have a time frame on that so the board can be involved. Uh we're going to walk that area, our west bayfront I believe, and some areas in the best Bayront east side task force. But I'll I'll once I have those details, I'll coordinate that with you at that time. But we're we're looking at pricing there and see where we can go as far as what works best as far as some infill development across the city of Erie. Uh I think that's all I'll touch on. everything else. If there's any questions, oh, the legislative breakfast that we're planning for May 14th, uh I believe we're going to kick it off at 8:30 with breakfast. Uh the menu is is looking fairly phenomenal from uh Calamari. So certainly put that on your calendar for 8:30, May 14th at the Boston Store uh Commons lobby area. So uh again, I once I get the true invite from the housing authority, I'll forward that on to the board. Thank you. Any questions from the board?

I have one question. Um, and I guess it's uh I don't know if it's new business or not, but you had talked about uh development. I noticed that there's a lot more interest coming into our city, particularly for building homes and developing homes on different lots. Um, I think one of the problems that we've seen in the past is the amount of fees that were charged to do the connections. Um, and I'm wondering, can we consider um some sort of application to support uh single families for those particular fees? Because sometimes uh in the past I've seen up to $40,000, which is ridiculous. Um, but I think we can make help make some adjustments. That way the monies that have been set apart for Erie can be spread across uh a wider group as opposed to uh us trying to support just one developer um because we have some smaller developers and this is just something I think that we could put on the table and begin to search out and go from there. No, that's that's a good point and that's something when we met with uh Eerie Waterworks kind of talking through their their tap fees for water and sewer and so once we nail down some true development sites uh the executive director down there did say you know we're going to forward him those. He can't give us prices but there there's going to be some some communication and some collaboration as far as those go but certainly we'll look into the other fees and see what we can do to help mitigate as much of those as possible. but also working with uh city of area zoning planning and trying to figure out how we can best get approval that'll replicate across neighborhoods and make those fees that are necessarily supportive of one single lot lessened because we can

not preapprove it but but right we're working on that at the current time.

Excellent. Any other questions from the board? Hearing none, we'll move on to old business. The fund investment discussion. We already had that or at least the presentation from Northwest. Um, do we want to discuss that any further at this time? And I don't think we have any planned resolution in place for that. Correct. No, there well there wasn't a resolution. Uh if the board would prefer a resolution, there was a recommendation uh on the back of the memo that was provided uh just to for the board to authorize if if so desired. Okay. Like I did say during uh the presentation, we did reach out to our current financial institution and communication there. Well, four times we reached out to them and we failed to gain any communication back with them regarding our financial investment. So, April reached out to Northwest and they were more than willing to have us up at their office and and talk through the financial investment opportunities they have. So, that was that that leads to our recommendation to transfer those funds over to Northwest uh and have the investment housed there. disappointing to hear about Erie Bank.

Yes. And those funds are currently just sitting in what a a checking account is? A savings account. Yeah. Savings and checking over it. Right. Do we want to have any further discussion from the board on that particular matter or do we want to I guess prepare or we could go through and have a motion to approve the recommendation of the redevelopment board. I just I I want to ruminate on it a little bit more. Um, I don't know if it needs to be like a full a full month or anything like that, but and I know we don't need to take action on it immediately, but right,

if you know we were to I I just want to make sure that moving it to something that technically could result in a loss of principle doesn't adversely impact anything from a I don't know, an accounting concerns perspective.

I'm on the same page as you very conservative. So that's why we wanted Tim to come in and at least present his portion of it. So the other gentleman that we met with was Mike. He's more on the like CDs and more liquid money market. So it's safer. We're not going to lose any principle. It's a lower return that we would be getting, but we can also kind of ladder or stack those investments um in different terms. and we weren't sure if after hearing what Tim had to say if that's something that you were going to consider and want us to include in our investment portfolio with them or if you wanted something that was strictly more secure um that we I was expecting probably like something in like the three and a half% range like something that

so that is a liquid money typically what um their CDs were quoted as and I had promised that I wasn't going to hold them to anything because I know that those can change day by day um based on rates that they might set internally but they were like 3 and a half to 3.7 just for a, you know, if we did a couple different terms. So, um, that's something that we can do without having to go through Tim. We can go right down to the bank. That's, um, more access to it. And then, I'm sure, as you know, the any penalty for early withdrawal of the CD is just against the interest that you would have been earning. Um, so it still wouldn't be coming from the principal. We wouldn't be losing any of of those funds.

Thank you. So yeah, we are just hoping for guidance. I knew that you were kind of going to be on on the same page as um you know what what we would be considering and that you were you asked the same questions of him that I had asked when we were in our meeting. Um so I didn't know if that was something that you guys wanted to consider. You can certainly think about it and get back to us before we kind of put some sort of proposal together for you. Yeah, I think I think that'd be helpful. I think we can have some internal discussion try to figure out what makes the most sense there. Yeah. Thanks. Thank you. Uh moving on to new business housing rehabilitation report.

Hello board.

So speaking of changes in formats, um you might notice we have not done a housing rehab report in a few months. Um we've decided it makes the most sense to start doing them quarterly. Um, first of all, it aligns better with my regular reporting schedules that I have to do for all of our programs. Um, but also it gives you better context of what our projects really look like. Um, when you're looking at whole quarters at a time. Um, so despite the fact that we had a nice miserable eerie winter, um, you know, just because the snow flies, we don't stop. And, um, we finished we finished 2025 down a few projects from the previous year. We were at 93. We had done exactly 100 the year prior. Um but despite this modest start this year, we've already completed five projects. Uh we've got 23 under contract and another 28 that are currently in process. So um we've got 56 projects either done or moving. Um and that's pretty impressive, I think, for it just being April. Um we'd set a a aggressive goal for the year to hit 114 units. And so, um, just at the end of Q1, we were already at 49% of that that total goal. So, now we just got to get them moved to completion as soon as the weather decides to stay like it is right now. Um, my poor inspectors are ready to kill me because of all of these uh, inspections. But in addition to all that, they also completed the final 39 risk assessments that um, the housing authority of the city of Erie had ordered from us. So, we've now completed 55 of them. Um, and we'll be working with them soon to determine next steps for what they will need from us for that agreement. Um, Nate Hail, who is our newest inspector, I wasn't sure if he'd passed these before our last meeting or not, but he did pass both his lead abatement supervisor and lead risk assessor exams at the state level on the first go. Um, which is very exciting. So, he is up and running full capacity. Um, and really

learning on the fly. We're very impressed with his tenacity and his work ethic. H contractors. Um we have three new general contractors bidding on our jobs which is very exciting. And we also now have a total of eight lead abatement contractors um interested in our work. We had four at the end of 2024. So we have doubled the size of that. Um we've held our first trainings of 2026. We held another RP class that we try to hold quarterly. But we also held a lead abatement worker class and we had 18 participants which is by far the biggest class I've had in my time here. So that's uh that's good stuff. Um and everybody also passed the class. Um Anna, who's our new community relations and outreach manager and who does the other side of intake with me, she and I'll be going to HUD program manager school at the end of this month. So um we'll have hopefully some information to bring back from DC at my next report. um still holding office hours at the UPMC resource center. Um they're really seeing an increased traffic there as they expand their programming. Um which has really trickled into more traffic for us as well. We've had a lot more walk-ins wanting to come in and complete applications with us. Um which is great. And also to the end of the TV advertising. Um I would say this is the biggest surge of lead applications in the last three-month period that I've personally experienced in my almost five months, five years here. Um, so I have to think the TV advertising is is working. Um, I mean, who could turn down Erin's face when he tells you to get the lead out? Like, that's serious, right? He loves that so much I had to bring it up. Um, but no, we thought we'd be more strategic with our advertising this year and it seems to be working. Um, so we're we're pleased with the response. In fact, after the NFL weekend, the very first phone call we had at 8:30 on Monday morning was a new landlord that had not previously engaged with us who is interested in applying and has put through two units. So,

when we when we get the intake in those new applications, do we ask like how they heard about? So, the old surveys they used to do it did ask that. Um, I don't believe the new surveys ask do ask that. Maybe it's something we should get back to asking. Um, yeah. I mean, it might be something worthwhile to consider, especially if we're going to be spending dollars in terms of advertising, just to see, you know, if that is in fact generating what the response

for sure. I mean, I would it'd be awfully coincidental at this point if it wasn't just because it's it's happened so close tied to those weekends and the Olympics were great. um lots of new applicant interest and we've had a really significant surge in new landlords this this grant period period all al all together um a lot of unique landlords that we have never worked with before. So that that to me is huge. That is something we really wanted to do with this grant and we're accomplishing it um is getting a lot of new landlord attention. Okay.

Um and then I expect we'll get another boom coming up. We have two free lead testing events scheduled with the health department. um both in June. One is in coordination with a daycare and the other will be at ECAT um in partnership with UPMC health plans dental clinic. So we'll be offering free lead screenings to to folks on those days and those usually tend to generate some uh application activity as well.

So yeah, we've been busy. Any questions from the board? No. Holly, what are the dates for those those two uh lead screening events in June? I'll have to email them to you. I want to say the one for UPMC is June 30th. I'm almost positive. Um the daycare one we moved from its original date. I'll can I email you? We will we will be advertising that information as well, but I will definitely get that info to you. and Lauren Bailey at the health department is coordinating with me on these. So, she will have that info as well. Cool. Thanks.

And the daycare that we'll be working with is the learning ladder with Kenya Johnson. Any other questions? All right. Thank you all. All right. Moving on. Uh new business uh blighted property acquisition. This is resolution five of 2026. Aaron, if you'd like to go through that real quick.

Yeah. So, uh, if the board recalls the resolution from Friday to today, uh, the one in the agenda for today contains five properties compared to the 10. Uh, this is it really shows the the how the process works. And and so we we send what is called a pre-condemnation letter to every blighted property owner that we are seeking to move forward with acquisition of their property. Gives them one last attempt to engage us for their ability and and wherewithal to rehabilitate their property. So through that uh five were removed from the property because they reached out prior to this morning. Uh Mr. Lopez's email came in at 2:00. Therefore, his property is on there. So, I remove those other five and I am comfortable removing Mr. Lopez's because at any point that any of those other five or Mr. Lopez fails to proceed with the property or to communicate with us and make the the necessary repairs to remove it from the blade list, it can always be added to an agenda at another meeting and the redevelopment authority can move forward with acquisition at that time. none of the work that Gan or his team has done will be lost as far as as communication and and essentially we've gained what code enforcement has been trying to gain for all those years which is voluntary compliance you know so through that you know we had one property voluntarily demolished by the property owner uh one property unfortunately the property owner has has entered bankruptcy uh we're working through that that process with Gan and his team uh to see if we can can mitigate the blight while the owner is in bankruptcy. But we'll we'll have more information on that as it goes. And the other other three on that list have provided information required by the

redevelopment authority to facilitate at least the comfort that we're moving in a better direction with those properties. And and as I said, if if they don't and they become absentee property owners again, then we'll just move them into the stream. So, to be clear, the properties that were removed from the list, um, they still maintain their blight status, um, we're not, you know, even if we remove Mr. Lopez's property from this list to proceed with condemnation, it still maintains its blight status. That is correct. And then there still, it's incumbent upon the landowner to still make those steps. Otherwise, we'll be back here with them and proceeding to condemnation. That is correct. Okay.

Yeah. the not being on the resolution does absolutely nothing with the blight status. The property is still subject to redevelopment authority action at any time. Okay. At this point. So board, in terms of the proposed resolution, are we okay with removing Mr. Lopez's property at 616 Wayne Street? Yes.

Okay. So with that one modification um we have before us the resolution and again that's resolution number five-2026 um to approve it's now 1 2 3 4 four properties for uh condemnation. Do I have a motion to approve? Yeah, I guess it would be the motion to approve the resolution as presented with the exception of the 616. Right. with the exception of the removal of 616 Wayne Street. Okay. Yeah. So moved. Do I? All right. All in favor? I.

Any opposed? Hearing none. That motion carries. Moving on to the 2026 or to the next uh I guess proposed resolution for the 2026 lawn maintenance agreement. Um Aaron, if you'd like to speak on that briefly. Yeah. So, uh, as part of our wonderful job of maintaining our portfolio of vacant parcels across the city of Erie, uh, we are we RFPd for a landscape company or or a company to maintain and and then provide mowing services. We had three responses to that. Uh, Yard Masters of PA was chosen at $45 per lot because of their collaborative proposal between themselves and our vendor from last season, but also with that was the use of their system to track and provide us real time updates as far as the mowing conditions of the properties with updated pictures. So there's the ability to allow us a little bit more productivity and less burden administratively on the redevelopment authority staff in monitoring and tracking of those MO and and validating the invoices as they come in. So, uh, the proposal from them, uh, seemed to check, you know, the boxes that we needed to mitigate administrative costs on the redevelopment authority, but also provide us the best service and utilize a local small contractor to facilitate the work.

You mentioned collaboration with a prior vendor. What was that? What what is that collaboration? uh that the so perfect cuts who was our vendor last year. Yeah. Has worked and still does work with Yard Masters as a subcontractor. Okay. And that their proposal is to utilize Perfect Cuts as the subcontractor vendor, but utilize Yardmasters master tracking system to monitor and process payments. And what was the cost last year? Uh the cost last year was $35 per lot. Okay.

Yeah. with the I guess would the ability to access that part of yard master system is that included in the $45 per lot fee or is that part of the extra that's noted in paragraph what is that three? It's included in the $45 cost. Okay. You mean a number three? Uh no no sorry paragraph number three uh with additional pricing escalation and service provisions is outlined in the Oh no. So in in the RFP was pricing for uh more aggressive remediation to parcels acquired by the redevelopment authority or Okay. So if like there's like super tall grass or something like that.

Yeah. If we acquire a house that's got shrubs overgrown the front porch or whatever the case there there was different fees associated with that in there along with the escalation because this RFP included the ability for us to enter into a one-year contract with the ability to renew for up to five years. Okay. And we think that that $10 saving per lot, that's worth it based on the administrative burden. Yeah. Given the amount of staff time that staff spent chasing and validating lawnmowing last year across the city area, I feel that's well worth the time cost, gas. Yeah. Mileage, right? Everything. Got it.

All right. Um, do we have any further questions from the board? No. All right. Do we have uh so we have a proposed resolution number 6-2026. Um and this is for uh lawn maintenance agreement with yard master. Do I have a motion to approve? So move. Do I have a second? Second. All in favor? I. Any opposed? Hearing none. Motion carries. And I believe that's everything. Uh do I have a motion on the floor to adjourn the meeting? So moved. Do I have a second? Second.

All in favor? I I I'm sorry. Any oppose? Hearing none. Motion carries. We are ajourned. Thank you. Heat. Hey, heat. Hey, heat.