2003-08-26MOUND HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 26, 2003
The Mound Housing and Redevelopment Authority of and for the City of Mound,
Minnesota, met in regular session on Tuesday, August 26, 2003, at 6:30 p.m. in the
council chambers of city hall.
Members Present: Chairperson Pat Meisel; Commissioners Bob Brown, Mark Hanus,
David Osmek and Peter Meyer.
Others Present: City Attorney John Dean, Executive Director Kandis Hanson, City
Clerk Bonnie Ritter, Community Development Director Sarah Smith, Finance Director
Gino Businaro, Peter Pflaum, Tom Stokes, Chuck Alcon, Rick Bloomquist, Klm Klugerz
1. OPEN MEETING
The meeting was called to order by Chairperson Meisel at 6:34 p.m.
2. APPROVE AGENDA
MOTION by Hanus, seconded by Osmek to approve the agenda.
Motion carried.
All voted in favor.
3. APPROVE MINUTES
MOTION by Hanus, seconded by Brown to approve the minutes of the July 22, 2003
regular meeting. All voted in favor. Motion carried.
4. REPORT ON INDIAN KNOLL MANOR
Kim Klugerz of Westport Properties presented the management report for Indian Knoll
Manor as follows.
July Bank statement
June income statement.
MOTION by Osmek, seconded by Hanus to approve the July 2003 bills. All
voted in favor. Motion carried.
2003-2004 Operating Budget: Meisel questioned the cash reserve
requirement of $55,303. Businaro stated that he was informed that some of
the items in the operating budget are capital items and those will be paid off
with the capital grant from the Federal Government, and that the expenditures
and revenues will balance. Meisel also questioned the insurance figures,
asking if these dollars are included in the Westport contract. Employee
benefits and FICA were questioned in the same manner. Businaro stated
they should be part of Westport's contract and will adjust them accordingly.
MOTION by Hanus, seconded by Brown to adopt the following resolution. All
voted in favor. Motion carried.
HRA Minutes - August 26, 2003
RESOLUTION NO. 03-07H: RESOLUTION APPROVING OPERATING
BUDGET FOR FISCAL YEAR ENDING 9~30~04.
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Manager's Report - Klugerz informed the Board that the new resident
manager is on site five days a week from 10:00 a.m. to 4:00 p.m. effective
August 1st.
5. RESOLUTION ESTABLISHING THE TAX LEVY FOR THE HRA FOR 2004
MOTION by Brown, seconded by Osmek to table this item until after discussion on item
6. All voted in favor. Motion carried.
6. MOUND HARBOR RENAISSANCE REPRESENTATIVES ON GAP FINANCING
STRATEGIES
Meisel stepped down as Chair for this item because she and her husband own property
in the proposed redevelopment district. Acting Chair Hanus presided,
Rick Bloomquist presented a design sketch of the proposed hotel/banquet/restaurant
concept and explained the features of the building. He stated that there will be a new
market study done with reference to the proposed facility. He stated that he is optimistic
that an agreement will be in place with his group and MHR according to the stipulations
of the preliminary development agreement.
John Dean explained that the extension to the preliminary development agreement put
a number of benchmarks in place to measure the progress of the project. By August
26th the developer was to compile a number of options to see if the development is
economically feasible because of the gap in financing. This gap is estimated at the
present time at 7 ½ million dollars. He presented a list of potential options that might be
available for use to close any gap in financing of the development. This list was the
result of discussions with his firm, MHR and Jim Prosser of Ehlers & Associates. Dean
recommends a study session with Prosser present so that these options can be
evaluated.
MOTION by Hanus, seconded by Osmek to set a special meeting/work session for
September 8, 2003, at 7:00 p.m. All voted in favor. Motion carried.
MOTION by Brown, seconded by Osmek to acknowledge that the August 26th
benchmark noted in the amendment to the preliminary agreement has been satisfied.
All voted in favor. Motion carried.
Chair Meisel returned to preside over the balance of the meeting.
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HRA Minutes - August 26, 2003
5. RESOLUTION ESTABLISHING THE TAX LEVY FOR THE HRA FOR 2004
MOTION by Brown, seconded by Osmek to table action on this item until after the
September 8th discussion on gap financing. ,All voted in favor. Motion carried.
7. MISCELLANEOUS/INFORMATIONAL A. Update: MHR-,Aug 7, 2003
B. Met Council Housing score
8. ADJOURN
MOTION by Brown, seconded by Osmek to adjourn at 7:25 p.m. All voted in favor.
Motion carried.
Attest: Bonnie Ritter, City Clerk
Chair Pat Meisel
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