HomeMy WebLinkAbout01-22-2008 WSMeeting of:
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COLUMBIA HEIGHTS CITY COUNCIL
TUESDAY, JANUARY 22, 2008
7:00 P.M.
CONFERENCE ROOM 1 WORK SESSION
Present: Mayor Peterson, Councilmember Williams, Councilmember Nawrocki,·
Councilmember Diehm, Councilmember Kelzenberg
1.Sullivan Shores Townhouse Housing Improvement Area (HIA)
Scott Clark, Com. Dev. Director, referred to what a housing improvement is and
what the residents want. In 1995 a housing improvement legislation was passed to
help associations obtain loans for large improvement projects. This would allow the
city to be the banker for large issues. Hopkins and Burnsville have done these. They
can ask for bonds to do the improvements. They are taxable and are revenue bonds,
like a special assessment bond. They are also secured as a GO bond and exempt
from the city's maximum levy capacity. They are asking for $30,000 per unit or
about $2 million. He passed around the report on moisture intrusion. This would
include gutting the building, siding, roofing, etc. George Leverance, President of the
Sullivan Shores Association, stated the problems started in 1999 and have put in
about $400,000 and not accomplished much. This is not an improvement, but is a
rescue. The new management company reported that in one unit the window had
fallen out. There was no flashing put on the roof after damage in 1999. There are
about 50% original owners. Clark stated that only two of the units are not
homesteaded. Nawrocki referred to the summary handed out and the paper behind
the siding and asked if it was from the original construction. George indicated that
was the original construction. Peterson indicated the problems when you have sub
contractors.
Peterson stated he has no problem to help the homeowners, but questioned the city's
risk. Clark stated that the risk is fairly limited. You would have a development
agreement and pledge assets for pay off. Clark stated that in Brooklyn Park they did
this with the city's own cash, with legislation to make it a tax lien. There was not an
issue on repayment. Part of due diligence would be determining the association's
strength. There would be a quick analysis to see if there are sub-prime loans.
Nawrocki questioned who would be responsible. Clark stated it would be spread out
over the individual units and placed on their taxes. There would be savings in below
market financing. Nawrocki asked if they association has looked at the Rothland
company. George stated no, but they would received payment from the company
that did the roof in 1999. Peterson stated that each member is obligated to fix their
unit and have it inspected. George stated yes.
Diehm stated that we have to adopt an ordinance for this? Clark stated the
association is looking tonight for a yes or no proceeding with this. They would have
to come in with a petition of at least 25% in favor to start the process. There would
be an action to create the housing area and then the bonding. Diehm asked if this is
the city or the EDA/HRA. Clark stated the city. Nawrocki questioned the process
and who takes the bids. George stated that the association does. Clark stated that
they would give us the spec bid and we would include that with a draw down
schedule. Diehm asked if owners could pay off their portion. Clark stated there is a
short period to pay this off or they are not buyable. Diehm stated the assessment
would be passed on to any new owner. Clark stated yes. Nawrocki stated that at this