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2003-06-24 w AGENDA ~i I~ C°~I MOUND HOUSING AND REDEVELOPMENT AUTHORITY JUNE 24, 2003 6:30 P.M. PAGE 1. OPEN MEETING 2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS 3. ACTION APPROVING MINUTES: MAY 27, 2003 REGULAR MTG 1-2 • 4. REPORT BY CINDY REITER OF WESTPORT PROPERTIES ON INDIAN KNOLL MANOR, INCLUDING ANY NECESSARY ACTION 3-14 5. ACTION ON RESOLUTION MODIFYING TAX INCREMENT 15 DISTRICT BY ELIMINATION OF PARCEL THEREFROM (FORMER LONGPRE SITE) 6. PROJECT UPDATE BY REPRESENTATIVES OF MOUND HARBOR 16-45 RENAISSANCE, WITH REQUEST FOR EXTENSION OF PRELIlVIlNARY AGREEMENT 7. ADJOURN U MOUND HOUSING AND REDEVELOPMENT AUTHORITY • MAY 27, 2003 The Housing and Redevelopment Authority of and for the City of Mound, Minnesota, met in regular session on Tuesday, May 27, 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: Executive Director Kandis Hanson, City. Clerk' Bonnie Ritter, Finance Director Gino Businaro, Cindy Reiter of Westport Properties'` 1. OPEN MEETING Chair Meisel called the meeting to order at 6:30 p.m' 2. APPROVE AGENDA Meisel added item 4A, Resolution Approving Operating,-8ui~get MOTION by Brown, seconded by Osmek to approve°the agenda as amended. All voted in favor. Motion carried. 3. APPROVE MINUTES • MOTION by Osmek, seconded.. by Brown to approve the minutes of the April 22, 2003 regular meeting and the May 20; 2003 special meeting. All voted in favor. Motion carried. 4. REPORT ON INDIAN KNpLL MANOR Cindy Reiter presentedthe.moithly report~for Indian Knoll. A. April Bank statement ~. April Balance Sheet C. M©TION by Brown;,,seconded by Osmek to approve the May bills as presented. Advoted in favor. Motion carried. D. MOTION by Osmek;` seconded by Brown to accept a three year lease for a new washer/dyer with apartment Coin Laundry Management Co. All voted in favor. Motion carried. E. MOTION by Brown, seconded by Hanus to approve the PHA Certification of Compliance v~i~i the PHA Plans and Related Regulations for 2002 and 2003. All voted in favor. Motion carried. • -1- HRA Minutes - 5/27/03 4A. RESOLUTION APPROVING OPERATING BUDGET • MOTION by Brown, seconded by Hanus to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 03-03H: RESOLUTION APPROVING OPERATING BUDGET SUBMITTED ON 4/29/03 5. RESOLUTION ELIMINATING PARCEL FROM TAX INCR~M~NT DISTRICT MOTION by Brown, seconded by Osmek to adopt the followingresolution. All voted in favor. Motion carried. RESOLUTION NO. 03-04H: RESOLUTION MODIF~(IN~ TAX INCREMENT DISTRICT BY THE ELIMINATION OF PARCEL THEREFF~~M 6. ADJOURN MOTION by Hanus, seconded by Brown to mourn at 6:4b .m. All voted in favor. Motion carried. Ch'airperson~'at Meisel • ~~ Attest: Bonnie Ritter,:::C;ity Glerk ::„ ~;: 2 -2-. Mouwd ttR~F • lwd~Aw 6Gwol.l. tFpArtv~,ewts Property MawAger's Mowthl,~ Report J uwe 24, 2003 s. n~a~ gaw~Z statevwewt 2. ~FpY%I, iwcowte awd expewse s. rz.ev~ew o f b~~~s paid -~. r~av~,r~ers update ~. projects • RDD f Yepa I.Y • .spec%a~ weeds assessvu.ewt • ph~sCca~ weeds assessvu.ewt • • -3- -~A -. ' , , Page 1 of 3 519 Account Number: ~' • Statement End Da#e: 05131/03 Number of Enclosures: - ?5 HORSING >~ REDEVELOPMENT AUTHORITY SPECIAL ACCOUNT .~.:. ,.,~;Y TY aF M~{3~1;~1 F'.TNA'NCE;, DIR~CTO.R 534,1,,.M:~~fWOD~ RIB - MOtiND MN 55364=1627,. ~,, ,: „, if you have any questions about this statement or your accounts, call: 800-225-5935 (f-800=.CALL-WELLS] Your ACCOUrrts at a Gtance - ,. - :',: ' Begrnnrrig Deppositsl 1Nithdrav~alsi 1*nding - Account . , Balance Credifs Debits Balance Tie ,, , :_ ~?.;162.t~5's:.:4;.: 9.0,846.43 Racir B~~siness Checking .With /nfierest 57,9:79' S4;f14369 D00-0033530 ;, .:.. . NevYS. fr`~m-Wells farga x - _ Jik . 7~11'SI-ly rJCr±++~.. ~~C e the resent to get the r%gfit bredit for your bas~it~ssv~eeds. At Wets Fargo, you lt~frnd=a variety . . ,. gyp.:. -~ -- +?~arxs trues. o~"crs~it or`_credrt cards-- to hel~~our~./wsrness grow. ?.today and,~rto tine ~ture; szt.415; or visit weltsfargospecial.com ant enter keord: Bt3!!2 for mor$ rnformatron =fqual y[ _ ~ ~- -V Cty.~i dyfifFS,,Y ~ fah -..' , 'lick: '+.t. 1 . '?~ ~. Bitt. Pay for your business is a fast, easy, and secure way to pay all Yo com/bizin atrec~ ~r aI firb ~a~~_ Enroll ~ow-and your first two •months~are free:. Go to ~wettsfargo s"i~,;Bus°iness CieecKrng wren rn«~G+~ ~~r~•,••~~-_ ..:;~ flousrri~ & Redevelopment Authorr'ry Specs -,4ccounfi ' Apr 30 Beginning Balance tilay 31 Ending Balance 57ss4.is 90,846.43 ---~ - - ---=-------- ------ ----- aep,osrts and Credits ------~__ --- ------------------ Amaunt L'a'te Transaction Detasl .3,115.0(2 May 01 Deposit May 01: Deposit - 372.00 2,168.00 1V1ay. 02. Uepostt ` 4,438.00 640:00 DB. deposit ~I~y` ay 08 Deposit ~~°M .. 360.00 ,., .may 15 Deposit ~~ day 16 Hud Treas 303 Misc Pay 051603, 410962421860103 RlV1T'`V1/"092108060 hud Gaprfal Fund Program 42,774.47 ?73.25 May 16 Deposit 2.97 May 301nterest Payment • Continued on next page -4- :.~ ~usti7~ & Redevelopment Authority eels ~lccounf` Withdrawals and Deblts`-~=~~---=--- W~,LL~ FA3~G0 Date Transaction Detail Amount May 08 Proof-Adj Addition Err On Deposit Ticket . ":' ~~ - 1,067:00 ~ ~ . .. .. ---- --------------_ Checks Paid __~_ w_____~_____---_ _________~______~ _ ~_ Cheek # Date Amount Cheek: # ~Da~~~ ° °` Amount 1079 May 02 4,493.87 1093 .May 20 ~~ 239.27 1080 May f9 558:{t(? 1f~9a¢;. - . Mai 4fi : 1,88.4..53 1081 May 22 1D7.37 1095 May 16: 295.11 f082 May f9 245.00 1096 May 30 28424 1083 May 15 ?,763:89 1097 May 15 3,46#.80 1084 May 13 975.15 ~ ?098 May 21 127.50 1085 May 21 255.29 1099 May 19 326.75 1086' 0' May-~.~19 468':x,2. 1 ?0,1 May 27 145.86 1087 May 19 109;3'' 11n2> tilay ~5 96~Q. 1089 May 21: 37:$;.a, 1103 May 16 B~O:DO 1090 May 16 15805 11{x4 May 20. - ?3701 1Q9 1.. May 20 250:00. 1105 May 30 2,.,6~~,88 - . 1 2 May.:1,9, 57:84 ~' . - "`'Gap in Check Sequenda° Daily B~larice Summary.---.=--- ~ ~.~~ ~~_e~~'___- ~___-,. ~..~-......_--...-_---_,-,.._~ z;:-: Date Balance Date . ~_8a~~ri~~: . _., .. A r ~ 57y96~ ~9 .. . May.,~.g,.. ..;..; ,,. z 95,•t93~3 , May 01 61,451.79 May 20 94~~7~5 May 02 59,125.92 May 21 _ 94,aQ47~'1: _ • May'~18 ~ 63 9-36-J2 . Mays 22 93,~4Q ~'4 ,. -if~lay 13 :~~ ~,,, ~ ~ ~. ay. 45. r , :.. ~: •: ; M S~ ~s~.77 . ,.. ~ 199.58 May! 27 ~ lhf,~! 3A ... .. " x.28:. ~ _. ~~8. r. . May 16 96,959:EiJ ~ : 4 '~.,,x•~; -. Average Collected 8afance . $ 77,844 78: lnteres~t:~S~mmar-y~,= -----~-.,---.:----*---~ - ~ -,--- - - -= _~= --=~-~ -~---~---- r -Annual. Percentsge.Yeld Earned This Period lnterest Earned D[rrrng This Period - ,~»::~~ ~: ,.: ~ ~ , ;,,? .> ~ h 0~f - ~ ..R3 ~`87:r' Year fo Date lnterest and Bonuses Paid ~ ~ `~~¢ For Your lnterest ~< .. :> i . ;F ... qyU ... • Continued on next page - _. Page 2 of 3 Account Nurnber,. . Statement End Dade: -5- MBI~1 ~flOh+ t d 4,w~ I^w. i • Summary Statement May 2003 For more information, call MBIA CIient Services at (800)345-5505 Fag: (800)765-7600 ~~ Mound Hous' d Redevelopment Anth A....e.....F lU..mhnr~ lU(N-(iT-/12SR-2nn1 Account Name: GENERAL FUND Beginning Contnbutions Withdrawals Income Average Daily Month End Balance Earned Balance Balance This Month $194,082.57 $0.00- $0.00 $147.62 $194,158.69 $194,230.19 Fiscal YTD Endin 12/31/0 $193,443.04 $0.00 $0.00 $787.15 $193,855.83 $194,230.19 Account Name: MOUND RUD s,.~..,,f.* rr.,..,>wr- MN-t11-0258-2002 Beginning Contnbutions Withdrawals Income Average Daily Month End Balance Earned Balance Balance This Month $11,373.12 $0.00 $0.00 $8.65 $11,377.59 $11,381.77 Fiscal YTD Endin 12/31/0 $11,335.65 $0.00 $0.00 $46.12 $11,359.83 $11,381.77 Total of all accounts Beginning Contributions Withdrawals Income Average Daily Month End Balance Earned Balance Balance This Month $205,455.69 $0.00 $0.00 $156.27 $205,536.28 $205,611.96 Fiscal YTD Ending 12131/0 $204,778.69 $0.00 $0.00 $833.27 $205,215.66 $205,611.96 • May 2003 Page: 1 -6- ~ MDIA 4M~FUr~ Mound Housing and Redevelopment Auth. Account Number: MN-01-0258-2001 Account Name: GENERAL FUND Summary +~ioN- 'L i i %w. (' ~ Far more information, call MBIA Client Services at {800)395-5505 Fag: ($00)765-7b00 May 2003 Fiscal YTD En ' (12/31/03 Beginning Balance $194,082.57 $193,443.04 Contributions ~•~ ~~~ Withdrawals $0.00 $0.00 Income Earned $147.62 $787.15 Month End Balance $194,238.19 $194,230.19 Average Deily Rates 0.90% 0.98% Average Annualized Yieid U•90% 0'~% • Page: 3 May 2003 -7- M[ilA 9~ Mound Housing and Redevelopment Auth. Account Number: MN-01-0258-2002 Account Name: MOUND HUD Summary +~~oar : • '' y O 4p4j -^M. For more information, call MBIA Client Services at (800)395-5505 Fax: (800)765-7600 May 2003 Fiscal YTD En ' (12131/03) Beginning Balance $11,373.12 $11,335.65 Contributions ~•~ ~•~ withdrawals $o.oo ~o.oo Income Earned $8.65 ~.~ Month End Balance $11,381.77 $1I,38i.77 Average Daily Rates 0.90% 0.98% Average Annualized Yield 0.90% 0.99% • May 2003 -$- Page: 5 Q3 THU 11:10 FAX 4p2 382 6727 C NABER + .~,SSOCIATBS C~j4Ua Mound, MN Public Housing 2020 Commerce Boulevard Mound, MN 55364 AS Of April 30, 2083 Statement of Operating Receipts & Expenditures 311000 - Dwelling Rental 312000 - Excess tJtilltias Total Rental Income 361000 • investment interesilGeneral Funds 399000 - Other Income 802000 - Operating Subsidy Total Other Operating Recolpts Total Receipts Expenses 411000 - Administrative Salary 413000 - legal Expense 414000 -Staff Training .415000 - Travel 417000 -Accounting Fees 417100 -Auditing Fees 418000 - .$undry-Administrative 419500. Outside Management Total Adrrifnislrative Expense Total Tenant Services Expense 431000 - Water 432000 - Electricity 433000 - Oas 439000 - Other Utttrty Expense 439100 - Garbage Removal 'Total tJtilit+es Expanse 4410p0 . Maintenance labor 442000 - Materials 443000 - Contract Costs Tote! Maintsnance Expanse Current YTD YTD Prorated Over {Under) v! al n Bu et Bugget (9,905.00) (74,812.30) (80,278.31) (5,466.01) ~Q.Q.Q a.o 1437.50) ------L~L59a (9,905.00) (74,872,30} (80,715.81} g,gO3.51 (14.20} (123.45) (350.00) (226.55} (141.00) (1,882.21) ($75.00) 1,007.27 ._Q,.4Q X8.449.001 3 ~~ n {155.20} (1li~4flQ.:r,) (30,434.66) {~, as aa~ (26,390.00) (10T~f 0-3=~ _ (4,064.66) _,_1. ~t as 0.00 0.00 2b,200.00 (25,200.00) 0.00 0.00 350,00 (350.00) D.00 0.00 291.69 (291.89) 19.04 270.$9 408.31 (137.62) 0.00 1,135.00 1,225.00 (90.00) 0,00 1,x73.58 4,840.00 5,744.83 468,69 3,150.00 4,373.31 .2,594.83 7,485.?d 1$. .11 _ .00 .11 9,077.86 30,652.83 31,091.69 (938.06} 0.00 0.00 0.00 0.00 104.15 1,100.99 1,750.00 (849.01) 2.097.63 6,194.45 7,350.00 (1,155.55} 2, 913.09 13,173.01 9, 333.31 3, 839 70 735.00 4,511.23 6,708.31 . (2,197.08) --~2~- _ s` 2~~. a - 27~ 27.5n7.43 2T ~_s~ n~ n~ ~ 1,916.50- 1,915.50 ~ 21,105.00 ^_ ~. (19,188.50} 351.68 4,471.84 4,783.31 (311.47) 7.267 ~~ . _ 37.148.18 _-.~Sl~.~.~. ----T.~.~61~4~ -~-~~.7$ _..~~5.i41R~R3 36.875_nn _ ~. ;~ -g- /22/03 THU 11:11 FAX 402 382 672? C NABER + AS50CIATES Mound, MN Public Housing 2020 Commerco Boulevard Mound, MN 55364 AS Of . Aaril 30, 2003 Statement of Operating Receipts & Expenditures f~Og4 Cun~ent ' Yi'D YTG Prorated t'}ver (tinder) Act v Bal` ance et ud st 459000- Insurance 452000 - Pmts 1n klsu Of Taxes 630.00 5,314.50 4,?78,69 4,?3~,g~ 453000 -Terminal Leave Payments '180.34 0 00 2,365.24 2,680,00 ( 42 ] 454000 - Employee Benefit Contributions Tobl General Expense . _?.00-x.30 _ 43,942.96 9.320 ~~ 0.00 41 ,,QQ. 13 9 .$6 r-~--.?-°,~?a,' Total Routine Expense ~$.j_4,:"^37 124.8413.49 gea_3s~_~g ~~ 601000 • Prior Ysar Adjustments-Cash 0.00 Total Nonroutine Expense - .C~:S~! -- 0.00 (B.7~t0.0~t "'~`~' ---~Q Tota) Rxpense 2B~7d5;~9~ 117.808 do -,14~~~. -r 3-a~:~ 2 -~~- INDIAN KNOLL APTS PAID INVOICES SORTED BY VENDOR 2020 COMMERCE ST FROM May 1, 2003 THROUGH May 31, 2003 MOUND, MN 55364-1575 June 17, 2003 • PAGE: 1 VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL ---------------------------------------------------------------------------------------------------------------------------------- 2 FRONTIER OS-30-2003 .MAY2003 1123 S 05/16/03 255.29 2 FRONTIER OS-09-2003 MAY2003 1085 S 9524725078.041003 255.29 TOTAL PAID 510.58 510.58 ---------------------------------------------------------------------------------------------------------------------------------- 5 MINNESOTA ELEVATOR INC OS-09-2003 MAY2003 1090 S CD13914 158.05 TOTAL PAID 158.05 668.63 ---------------------------------------------------------------------------------------------------------------------------------- 8 BFI OS-09-2003 MAY2003 1081 S 102001113356.0403 107.37 TOTAL PAID 107.37 776.00 10 LAKER AND THE PIONEER OS-30-2003 MAY2003 1124 S 636 25.87 TOTAL PAID 25.87 801.87 ---------------------------------------------------------------------------------------------------------------------------------- 11 IOS CAPITAL 05-09-2003 MAY2003 1087 S 58558148 109.37 TOTAL PAID 109.37 911.24 15 CITY OF MOUND OS-30-2003 MAY2003 1122 S 00000139 170.50 15 CITY OF MOUND OS-09-2003 MAY2003 1084 S 9442343015018.0403 975.15 TOTAL PAID 1145.65 2056.89 16 CENTERPOINT ENERGY MINNEGASCO OS-30-2003 MAY2003 1121 S 6/13/03 862.15 16 CENTERPOINT ENERGY MINNEGASCO OS-30-2003 MAY2003 1121 S JUN1603 383.22 16 CENTERPOINT ENERGY MINNEGASCO OS-09-2003 MAY2003 1083 S 543002050900.0403 347.23 16 CENTERPOZNT ENERGY MINNEGASCO OS-09-2003 MAY2003 1083 S 543002931401.0403 1416.66 TOTAL PAID 3009.26 5066.15 ---------------------------------------------------------------------------------------------------------------------------------- 17 STAR TRIBUNE OS-13-2003 MAY2003 1102 S 058817312.0403 96.50 TOTAL PAID 96.50 5162.65 18 WESTPORT PROPERTIES PAYROLL OS-12-2003 MAY2003 1097 S PR.051003 3461.80 18 WESTPORT PROPERTIES PAYROLL 05-27-2003 MAY2003 1105 S 5/11-5/2403PR 2666.58 TOTAL PAID 6128.38 11291.03 19 WESTPORT PROPERTIES OS-13-2003 MAY2003 1103 S FEES.043003 850.00 TOTAL PAID B5O.00 12141.03 _~~_ INDIAN KNOLL APTS PAID INVOICES SORTED BY VENDOR 2020 COMMERCE ST FROM May 1, 2003 THROUGH May 31, 2003 MOUND, MN 55364-1575 June 17, 2003 PAGE:• VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL 20 MOUND TRUE VALUE HARDWARE OS-09-2003 MAY2003 1092 S 4154 5.96 20 MOUND TRUE VALUE HARDWARE OS-09-2003 MAY2003 1092 S 4472 2.69 20 MOUND TRUE VALUE HARDWARE OS-09-2003 MAY2003 1092 S .4656 24.68 20 MOUND TRUE VALUE HARDWARE OS-09-2003 MAY2003 1092 S 4880 3.79 20 MOUND TRUE VALUE HARDWARE OS-09-2003 MAY2003 1092 S 5219 20.72 TOTAL PAID ----- ------ 57.84 --- 12198.87 ---------- 21 ---------------------------- ADAMS PEST CONTROL INC ------------- OS-30-2003 ------------ MAY2003 ----------- 1118 ------- S ------------ - 105468 ------- 56.31 --------------- TOTAL PAID -- 56.31 12255.18 ---- - ---- 24 ---------------------------- STS FLOORING INC ------------- OS-09-2003 ------------ MAY2003 ----------- 1094 ------- S --------------------- - 25313566 ---------- 1181.23 --------------- 24 STS FLOORING INC 05-09-2003 MAY2003 1094 S 25313569 703.30 TOTAL PAID 1884.53 14139.71 25 ALBERS MECHANICAL SERVICES OS-09-2003 MAY2003 1080 S 17541 558.00 -- ---- TOTAL PAID- ---- - 558.00-- - --14697.71 26 VALSPAR PAINT 05-09-2003 MAY2003 1095 S 7866250 295.11 TOTAL PAID ----- ---- 295.11 14992.82 --------- 27 ----------------------------- C NABER & ASSOCIATES ------------- OS-09-2003 ------------ MAY2003 ----------- 1082 ------- S --------- --- --- 23297 ---------- 95.00 --------------- 27 C NABER & ASSOCIATES 05-09-2003 MAY2003 1082 S 23493 50.00 27 C NABER & ASSOCIATES OS-09-2003 MAY2003 1082 S 23568 100.00 TOTAL PAID -------- 245.00 -- 15237.82 --------- 28 ----------------------------- VIP PROPERTIES MAINTENANCE ------------- OS-09-2003 ------------ MAY2003 ----------- 1096 ------- S ------------- --- 1243 ------- 284.24 ---------------- TOTAL PAID ------ 284.24 15522.06 - --------- 29 ----------------------------- OFFFCE DEPOT ------------- OS-30-2003 ------------ MAY2003 ----------- 1127 ------- S -------------- ---- 204099169 ---------- 22.70 ---- ---------- 29 OFFICE DEPOT OS-30-2003 MAY2003 1127 S 205993237 64.11 29 OFFICE DEPOT OS-30-2003 MAY2003 1127 S 206027001 194.36 29 OFFICE DEPOT OS-30-2003 MAY2003 1127 S 206169352 49.38 29 OFFICE DEPOT OS-30-2003 MAY2003 1127 S 206169495 22.54 29 OFFICE DEPOT OS-30-2003 MAY2003 1127 S 206402133 53.18 29 OFFICE DEPOT OS-13-2003 MAY2003 1104 S 20232769-001 204.49 29 OFFICE DEPOT OS-09-2003 MAY2003 1093 S 201603712-001 239.27 • -~2- INDIAN KNOLL APTS PAID INVOICES SORTED BY VENDOR 2020 COMMERCE ST FROM May 1, 2003 THROUGH May 31, 2003 MOUND, MN 55364-1575 June 17, 2003 • PAGE: 3 VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL 29 OFFICE DEPOT OS-13-2003 MAY2003 1104 S 202601064-001 19.89 29 OFFICE DEPOT OS-13-2003 MAY2003 1104 S 202601131-001 12.63 TOTAL PAID 882.55 16404.61 ---------------------------------------------------------------------------------------------------------------------------------- 30 MAINTENANCE WAREHOUSE OS-09-2003 MAY2003 1089 S 22509412 23.79 30 MAINTENANCE WAREHOUSE 05-09-2003 MAY2003 1089 S. 22512483 13.56 30 MAINTENANCE WAREHOUSE 05-30-2003 MAY2003 1125 S 22714133 184.85 TOTAL PAID 222.20 16626.81 ---------------------------------------------------------------------------------------------------------------------------------- 31 IKON OFFICE SOLUTIONS OS-09-2003 MAY2003 1086 S 2369275A 468.72 TOTAL PAID 468.72 17095.53 32 MINNETONKA REFRIGERATION OS-09-2003 MAY2003 1091 S 032003 250.00 TOTAL PAID 250.00 17345.53 ---------------------------------------------------------------------------------------------------------------------------------- 33 A AARONS OS-13-2003 MAY2003 1096 S 027064 127.50 • TOTAL PAID 127.50 17473.03 34 PROGRAMMED MANAGEMENT CORP OS-13-2003 MAY2003 1101 S 70322449 145.86 TOTAL PAID 145.86 17618.89 35 CENTURY MAINTENANCE SUPPLY OS-13-2003 MAY2003 1099 S 6612376 28.71 35 CENTURY MAINTENANCE SUPPLY OS-13-2003 MAY2003 1099 S 6613936 184.96 35 CENTURY MAINTENANCE SUPPLY OS-13-2003 MAY2003 1099 S 6617888 113.08 TOTAL PAID 326.75 17945.64 ---------------------------------------------------------------------------------------------------------------------------------- 36 BROWNSTONE PUBLISHERS INC OS-30-2003 MAY2003 1120 S R33037 270.00 TOTAL PAID 270.00 18215.64 ---------------------------------------------------------------------------------------------------------------------------------- 37 ON TIME DELIVERY OS-30-2003 MAY2003 1128 S 04300305356 64.78 TOTAL PAID 64.78 18280.42 38 WARNERS STELLIAN OS-30-2003 MAY2003 1129 S 0456350 596.29 TOTAL PAID 596.29 18876.71 • -13- INDIAN KNOLL APTS 2020 COMMERCE ST MOUND, MN 55364-1575 PAID INVOICES SORTED BY VENDOR FROM May 1, 2003 THROUGH May 31, 2003 June 17, 2003 PAGE: • VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE NUMBER NAME DATE .DATE NUMBER S NUMBER AMOUNT TOTAL 39 MN DEPT ECONOMIC SECURITY OS-30-2003 MAY2003 1126 S 7967746-000 208.78 TOTAL PAID 208.78 19085.49 ---------------------------------------------------------------------------------------------------------------------------------- 40 BAREFOOT TURF OS-30-2003 MAY2003 1119 S 372655 225.00 40 BAREFOOT TURF 05-30-2003 MAY2003 1119 S 372667 455.82. TOTAL PAID 680.82 19766.31 • • -14- • MOUND HRA RESOLUTION N0.03-05H RESOLUTION MODIFYING TAX INCREMENT DISTRICT BY THE ELIMINATION OF PARCEL THEREFROM (Former Longpre Site) BE tT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Mound, Minnesota as follows:.. 1. Redevelopment Tax Increment Financing District No. 1-2 is hereby modified by eliminating therefrom the following parcel of land, to wit: That part of Lot 8, Auditor's Subdivision Number 170, described as follows: Beginning at a point on the Westerly line of said Lot distant 50.65 feet North of the Southwest corner thereof; thence North along the West line of said Lot to the Northwest comer thereof; thence Easterly along the Northerly line of said Lot a distance of 40.1 feet; thence South parallel with the West line of said Lot a distance of 60 feet; thence at a right angle East 10 feet; thence at a right angle South 5.5 feet, more or less to a point 50.2 feet North of the South line of said Lot; thence Westerly in a straight line to the paint of beginning; ALSO That part of Lot 8, Auditor's Subdivision Number 170, described as follows: Beginning at the Northwest corner of said Lot 8; thence Easterly along the Northerly line of said Lot a distance of 40.1 feet; thence South parallel with the West line of said Lot a distance of 60 feet; thence at a right angle East 10 feet; thence at a right angle South 5.5 feet, more or less to a point 50.2 feet North of the South line of said lot, said point being the actual point of beginning of the trace of land to • be described; thence continuing South along the last described course 50.2 feet to the South line of said Lot; thence West along the South line of said Lot to the Southwest comer thereof, thence North along the West line of said Lot a distance of 50.65 feet; thence Easterly in a straight line to the actual point of beginning, including vacated portion of road, adjoining the above described tracts. ALSO: Lot 4, McNaught's Addition to "Mound", Lake Minnetonka, EXCEPT the South 29.3 feet thereof; including vacated portion of road adjoining the above described property. 2. The current net tax capacity of the parcel equals or exceeds the original net tax capacity of the area of land comprising the parcel. 3. The Finance Director of the City of Mound is hereby authorized and directed to provide the County Auditor with all information and documents necessary to cany out. the objectives of this resolution. Passed by the Housing and Redevelopment Authority of the City of Mound, Minnesota this 24~' day of June, 2003. Chair Pat Meisel • Attest: Kandis Hanson, Executive Director JBD-233368v1 Mi1195-2 -15- MOUND HARBOR RENAISSANCE DEVELOPMENT (MHR) Mound HRA Meeting .Tuesday, June 24, 2003 1. Accomplishments to Date -Tom Stokes (10 min) 2. Market Studies a. Residential -Roger Conheim, Conheim and Assoc. (3-a min) b. Office/RetaiUHotel -Mary Bujold -Maxfield Research Inc. (io min) 3. Financial -Sources and Uses -Paul Robinson (3 min) 4. Update on Concept Plan & Timeline -Carolyn Krall (7 min) • 5. Request to Extend Developer's Agreement (io min> a. MHR requests a 4 month extension to the current developer's agreement b. Items to be accomplished during extension i. Finalize Market Studies ii. Complete Market Study for Hotel Site and Define Scope of Hotel Project • iii. Refine Sources & Uses iv. Address Strategies to Closing the Funding Gap v. Negotiate Term Sheet vi. Refine Concept Plan • -16- ~~ -~o ~ ~.ia '~c~k~ ~ EHLER_S & ASSOCIATES INC O To: - Kandis Hanson, City of Mound From: Jim Prosser and Sid Inman, Ehlers & Associates cW Date: June 20, 2003 G Subject: MHR Financial Feasibility Analysis MHR is preparing an update on various project issues in relation to their request for an extension to the preliminary development agreement. The update is scheduled for the June 24 HRA meeting. A key issue for tl~e update is the financial feasibility analysis. Significant and high quality work has been completed by MHR on project sources and uses to date. However, recent refinements to components of the sources and uses will likely change this analysis. Those refinements include updated market data. The updated market data will impact projected land payment and projected tax increment. These changes will impact the overall project financial feasibility. It is recommended that the HRA extend the preliminary development agreement until July 8 in order to provide an opportunity for Ehlers and MHR to review these changes and prepare an updated analysis of project financial feasibility for discussion at the July 8 HRA meeting. LEADERS IN PUBLIC FINANCE Jim Prosser, CIPFA Executive Vice President/Director 3060 Centre Pointe Drive Roseville, MN 55113-1105 inc.com Phone: 651-697-8503 Fax: 651-697-8555 Email: jim@ehlers- '~ y Mound Harbor Renaissance (MHR) -Update February 26, 2003 -June 18, 3003 1. Formalized Mound Harbor Renaissance Development LLC. (MHR) a. Partners: Stokes Investments (Tom Stokes and Chuck Alcon), Plum Investments (Peter Pflaum), The Bancor Group, and VKO Enterprises b. Preferred Relationships/Consultants: MHR formalized or is formalizing the following relationships. • Commercial General Contractor: Shaw-Lundquist Associates -Signed letter of intent to document this relationship. • Hotel Developer: Rick Bloomquist - In progress has been delayed due to Rick Bloomquist's health issues. • Commercial/Retail & Office -Welsh -Working with Welsh on commerciaUretail and offices leasing and market analysis. • Acquisition Agent: Evergreen Land Services 2. Site Plan a. Completed Wetland Delineation b. Survey of Site is complete c. Completed initial analysis of shoreland density (final is subject to OHWL). d. Completed initial identification of wetland buffers, setbacks, and encroachments and identified areas for mitigation; e. Reviewed with the City the overall stormwater management issues and our approach to creative, sustainable solutions; • f. Reduced overall number of units in Langdon. Lake district by 10 units g. .Changed Langdon Lake rental units to for sale units; h. Reduced amount of commercial space in the S Hwy 110 District and added 28 for-sale housing units; i. Reduced the number of townhomes from 54 to 40 in the Lost Lake District, to eliminate residential on the potentially contaminated property in the Lost Lake East site; j. Replaced the Lost Lake townhomes with a small commercial building on the Lost Lake East site; k. Moved commercial building location on Lost Lake East to accommodate county's single access restriction in that area. 1. Reviewed the City's agreements with Ray Mar Properties (True Value) & Muller- Lansing regarding shared parking and a drive between the districts across the railroad tracks; continuing to work on coordinating parking drives with railroad grades, and use of park and ride. m. Reviewed the City's agreements re: Park & Ride; continuing to work on a Park & Ride location that meets the City's and developer's goals. n. Initiated discussions for Park and Ride/farmer's market location with two area churches. o. Met with Our Lady of the Lake church and identified their issues with the site plan. They want to maintain access to their garage with parking in front and are not interested in a trail along their lake front. p. Studying changes to unit types for townhome, loft, and condo buildings to respond to initial market studies. • l -17- 3. Site Plan Approval Process: • a. Identified approvals and agency reviews which will be required, including City, County, Metropolitan Council, Watershed District, DNR, MnDOT, and Army Corps of Engineers; and the timeline for these approvals as related to the HRA & Developers agreement, site acquisitions, AUAR, etc. b. Identified zoning actions which will be required, and a timeline for these actions; c. Began approval process by presenting the sketch plan for an informal review to the Planning Commission on June 16, 2003; d. A community open house is being planned for later this summer or early Fall; 4. Dredging and Docking Permits: a. Selected attorney to conduct dredging and permit work. b. Initial background work has been completed for dredging and docks for Lost Lake and S 110. - c. Initial strategy includes holding informal meetings with the DNR, MCWD, and LMCD. 5. Market Studies: a. Residential -Complete b. Commercial -Will be completed in early July. 6. Acquisition: a. Identified all parcels of land to be acquired for each district; and tabulated assessed values. b. Started contacting property owners. c. Met with south 110 property owners regarding acquisition. • d. Retained Evergreen Land Services (Bud Storm) as our acquisition agent 7. Demolition & Relocations: a. Listed existing businesses which may need to be relocated. b. Talked with business owners in the Langdon Lake & Auditor's Rd Districts about their interest in relocation within the project. c. Obtained estimates of demolition costs for all districts 8. Environmental Issues: a. Hired STS to review all existing environmental reports and make recommendation for additional testing. b. Worked with the City to include petroleum testing as a part of the County grant for the Maxwell site c. Met with STS regarding review process to get MPCA to issue no action letters. d. Completed Phase I environmental analysis for 110 South. 9. GeotechnicalIssues: a. STS reviewed all existing reports and made recommendations to MHR for additional soil borings. b. With Shaw Lundquist, identified the additional cost estimates for foundation issues, including use of geo-piers in Lost Lake and Lake Langdon districts; c. Based on STS analysis it looks like the use of geo-piers will be a preferred construction option in most districts. - e 2 _18_ • 10. Sources and Uses a. Met with Ehlers and City Attorney to review initial draft. b. Evergreen Land Services provided a rough estimate of the market value of the property to be acquired. c. Evergreen Land Services provided a rough estimate of the relocation costs for business and residences in each district. d. Received initial estimate from Dobozinski for demolition, minor hazardous waste abatement, and grading. e. Met with City staff and Consultants to identify related public improvement costs: f. Krass Monroe and Ehlers have both evaluated the potential TIF that would be generated by the current concept plan. g. Created meaningful cost estimates for most aspects of the development activity. h. Developed a detailed budget for the first 1 year of development activity, retained professionals for services needed and committed funds to pay for these services; i. Verified market value of end products based on market studies and consultation with Wetsh. 11. Public Improvement/ROW/Utility Issues a. Railroad Right of Way: • Verified that HCRRA did not receive any responses to their RFP for railroad operation Continually monitored the County's progress of the rail corridor designation. Met with the Mound project team and determined that at the appropriate time the City would send a letter to the county supporting a light rail designation. b. EIS/EAW/AUAR: • Analyzed the various environmental review options. • Made recommendation for use of an AUAR approach to the Mound project Team and Council • Mound Project Team has expressed desire to have the City run this process through their consultants. a Utilities: Met with Xcel energy to discuss burying and relocating power lines, Xcel's initial estimate range from $550,000 to $750,000. Met with City staff to come up with a joint plan of action. Metwith Excel, Minnegasco, and Citizens Communications to discuss demolition, relocation and service re-establishment issues; only future temporary service issue is power and telephone service to existing Langdon Lake area behind existing businesses and to OLL Church. • 12. Architects: a. MHR has begun interviewing potential architects for creating an overall concept theme and design criteria. 13. Grants a. Currently applying for the Livable Communities Demonstration Account Grant. b. Researched other grant opportunities, e.g. Met Council Tax Base Revitalization Account, Environmental Demonstration Account, SBAG, and others 3 -19- Items Completed for Additional Developer's Agreement Extension • From First Amendment to Development Agreement -February 26, 2003 1. Formalization of Mound Harbor Development. Group: a. Development Partners: i. Mound Harbor Renaissance LLC documents have been finalized and signed by all members. The Members are Stokes Investments (Torn Stokes and Chuck Alcon), Plum Investments (Peter Pflaum), The Bancor Group, and VKO Enterprises. b. Preferred Relationships: i. Commercial Consultant -Shaw and Lundquist ii. Hotel Developer -Rick Bloomquist -Several meeting have been held and an agreement has been drafted. Completion of the agreement has been delayed due to Mr. Bloomquist's recent health problems. 2. Market Studies a. Residential -Completed by Roger Conheim, presented to the Mound Project Team on June 18tH b. Commercial -Summary of Maxfield's study was presented to the Mound Project Team. The complete study will be done by early July. 3. Sources and Uses a. Detailed initial drafts have been presented to Ehler's and the Mound Project Team. • b. Identified Financing Gap and Strategies for Closing the Gap 4. Site Plan a. Site plan has been updated and is substantially complete. Revisions are still in progress to bring site plan into sync with marketing analysis. b. Open Issues -Location of the Ordinary High Water Mark, due to current water level of the lake. 5. Wetland Delineation a. The wetland delineation has been completed. 6. Survey a. Survey is complete. 7. Kept Staff and Council Informed a. 5 Meetings with the City's Project Team b. Two Work Sessions with the City Council c. Sent semi-monthly updates to Council and Staff • June 24, 2003 -20- • MINUTES MOUND ADVISORY PLANNING COMMISSION June 16, 2003 MOUND HARBOR RENAISSANCE -INFORMAL SKETCH PLAN REVIEW Loren Gordon introduced the item and reviewed the points contained in the staff memorandum(s) dated June 1 1, 2003. Key Points 1. Plan meets with the principles of Mound Visions in ways that are innovative and consistent with the prepared design concepts. 2. Consistent with the Comprehensive Plan. 3. Review of the established downtown zoning districts will be addressed 4. Shoreland Management issues such as density, structure setbacks and vegetative impacts are being addressed. 5. Parkland dedications are applicable. 6. Wetland buffering is applicable for Lost Lake and Langdon Lake wetland areas. 7. Water runoff and ponding issues will need to be addressed on regional basis consistent with the SWMP. MHR Team Chuck Alcon of WARA introduced members of the Mound Harbor Renaissance Team including: Peter Pflaum Dave Neuman Paul Robinson Carolyn Krall Original Concept Plan - 2002 • Compact Auditor's Road District with restaurant and retail. • South 1 IO District -opportunity for relocation of businesses from other districts. • Residential -brings market value and primary source of TIF funding -21- Planning Commission Minutes June I6; 2(1(13 Refinements - 2003 • South 110 District -more multifamily • Lost Lake District -contaminants on the W site suggest that retail should be on the east side with some residential. • Farmer's Market and parking to be addressed in the True Value area. Sketch plan is the next phase and will then proceed immediately on the Districts that are ready to go. Postponement of those District that require further preparation. uestions Mueller -Asked if the phasing aspect is residential first with commercial to follow. Krall - Encumbrances dictate phasing more than development type. Originally it was thought that l 10 would be the first phase. It may still be. Uses tied to the CR15 changes may not be ready immediately. Osmek - CC has made 2 provisions clear. 1) Relocation areas for existing businesses 2) development team pursues amicable purchase rather than quick take. Mueller - Do we have step back density from shoreline requirements considered for these areas? S Gordon - We have done some shoreland overlays -Mound Visions itself doesn't comply with those requirements. Mueller doesn't know where we are coming from. Gordon - Shoreland is approved by the DNR. Met council doesn't have review and approval authority. Vegetative impact is one component the other would be redevelopment of shoreland vegetation. DNR can comment. They don't often pick a bone with the city. There are a number of ways we can address it. Mueller restated: They come in as a PDA and should probability look at it from a whole from the vegetation, hardcover, buffer zones. We give approvals/variances. DNR can comment but we have the last say. Gordon stated DNR can review shoreland variances. MCWD powers that were given back to us, if there is a variance required it goes back to the IvICWD at that point. Mueller asked if we had enough elevation to do these kinds of things. Kraal said there is enough variety in the area that it can be handled creatively. We will need to go back to the MCWD but the ability is there. Clapsaddle was disappointed that there is no trail connection to the area to the north (True Value). Kraal indicated that when the rail issue is resolved they will address that. 2 -22- ~Y) 5341 Maywood Road Mound, MN 55364 (952) 472-3190 Memorandum ~ .~w City of Mound Planning and B uilding Department To: Planning Commission From: Sarah Smith, Community Development Director Date: 6/13/2003 Re: MHR Presentation of Informal Sketch Plan Mound Harbor. Renaissance (IVII~) has submitted a copy of the current concept plan for review and comment by the Planning Commission and will be attending the June l6, 2003 meeting to discuss the project including the current design and layout and proposed schedule. Preliminary comments regarding the current plan have been provided by the City Engineer and HKGi and have been included as attachments. . • -23- `~i PLANNING REPORT _ ~© • Hoisington Koegler Group Inc. ©H TO: Mound Honorable Mayor, City Council, Planning Commission and Staff FROM: Bruce Chamberlain Loren Gordon DATE: June 12, 2003 SUBJECT: Mound Harbor Renaissance Informal Sketch Plan Review -Preliminary Overview Report This is a preliminary overview of our comments and issues as they related to the May 30, 2003 Sketch Plan Submission by Mound Harbor Renaissance. The project area includes the Langdon Lake, Auditor's Road, and Lost Lake, and portions of the Commerce Blvd. (CSAH 110) Districts. It is anticipated that a full detailed sketch plan review will be prepared for the Planning Commission for an upcoming meeting in July/August. The following planning-related items are offered as general comments for discussion purposes and to identify items that will need additional review in subsequent submittals: Consistency with Mound Visions -The vision for downtown expressed by the community • through the Mound Visions concept is based around five key tenets: urban form as'opposed to suburban, concentrated development, multiple facets, linkages and place-appropriateness. The sketch plan prepared by MHR upholds those tenets and does so in ways that are innovative and very consistent with the design concepts prepared through Mound Visions. Comprehensive Plan -The project appears to be consistent with the goals of the Land Use and Redevelopment Sections of the Comprehensive Plan. Zoning - It is anticipated that zoning approvals wilt occur during the development review process. The following Districts align with tine project area: ~. Mound Visions Langdon Lake Auditor's Road Lost Lake Commerce Blvd. South of Auditor's Zoning District Pedestrian District Pedestrian District Auto-Destination .District Linear District The development team has indicated that they may wish to rezone portions of the Lost Lake District to Pedestrian District. • 123 North °f'hird Street, Suite I UU, Minneapolis, Minnesota >j~4U I (G12) 338-08t)U ray (G12) 338-6838 -24- ~~ ~: p. 2 . Mound Harbor Renaissance pre-sketch plan review June 13, 2003 ~ .~ Shoreland Management Overlay -The Planned Development Area process for development is applicable for issues such as density, structure setbacks, vegetative impacts. Park Land Dedication -Applicable ordinance sections regarding percent of land or fees in lieu of land are applicable. Wetlands -Wetland buffering is applicable for Lost Lake and Langdon Lake wetland areas. Storm Water -Water runoff and ponding issues will need to be addressed on a regional basis consistent with the Surface Water Management Plan. • 1 ^' "'~~th Third Street, Suite ] 00, Minneapolis, Mimiesota 5401 (t, 25 ~8-0800 Fax (612) 338-6838 . ~I MEMORANDUM DATE: JUNE 11, 2003 TO: SARAH SMITH, COMMUNITY DEVELOPMENT DIRECTOR FROM: JOHN CAMERON, CITY ENGINEER SUBJECT: MOUND HARBOR RENAISSANCE DOWNTOWN REDEVELOPMENT SKETCH PLAN REVIEW MFRA FILE NO. 13832 As requested, we have reviewed the sketch plans submitted by MHR for the downtown redevelopment and have the following comments: s McCombs Franli Roos ASS@Clat@8, I@C. Langdon Bay District 1. Stormwater issues will need to be addressed. No ponding is indicated on the sketch plan. 2. Wetlands appear to be preserved. 3. Deck parking lot will require relocation of City sanitary sewer main. 4. City utilities in place in Commerce Blvd., except for sewer main previously mentioned. Size and location of service stubs will need to be reviewed 5. Shared access to/with Church parking lot. Auditors Road District 1. Stormwater pond issues as they relate to existing storm sewer in Auditors Road will need to be reviewed. City system is under temporary permit from MCWD. 2. MCES Lift Station and Forcemain relocation and timing issues. 3. Closeure of Municipal Well No 1. 4. Municipal- Well No 1 Building removal or relocation. 5. Completion of construction of Auditors Road, 2004 or 2005? 6. City Utilities in-place in Auditors Road. Service stub locations will need to be reviewed. Lost Lake District -East 1. Wetland and stormwater ponding issues need to be addressed. 2. City Utilities located in County Road l 5; however larger service stubs may need to be installed as part of the new County project. South Highway 110 District 1. City Utilities available in County Road ] 10. Service stubs will need review. 2. Wetland issues need to be addressed. • • 15050 23RD AVENUE NORTH PLYMOUTH, MN 55447 JCAMERON@MFRA.COM (763)476-6010 FAX (763) 476-8532 -26- I 3 ~ ' I ' ' ~' 1 ~~ ~ ~ i ~ f . 1 ~ .~ ~ ~ ~ { i } I ~ ~~ ~ i . I i ~. ~~ I E I ~ 1 i '. ~ i i ~ ~ ~ ~ t i 1 ~ ~ i ' f. '~ ~~ ~ I ~i~ ~' • I '~ ~ - _ ~ ~ 1 ~ "I I '~ , ` ~ ' ' ~~r r ~. ~ 3 I i~ ' ~ ^ i F:~ ' f . E { ' ~~ ~, . _ . . ~~ • L -28- -29- -30- -31- ~' ~~ ~~ ~, ~..t~ 0 ~ 0 ~ "~ ,..,~ ~`~„ ~: "~ .,~ ~~ ...... ~ ~~ ~• • ~ ~ ~ ~^ ~ 1 ~ ~ ^, ~~ ~ ! V ~ L"` ~""~'~ 3,r+ ~ r n ' • yy ~~ Vii) f"'~'n CT. ~ ~ ~ 3..~. 4 _ ~ .'..n. ' ~' ~ : v ~:.~ ~ ~~~ t ~~ ~' r j ~ ~ - 1 .. i ~ _ -. .. -33- -34- .~ 0 Aa i a ... A r~ ~e E „~»,,,». e~ -36- ~xs~w 3 xo ' y Y1 ''~5~~ 7A ~ CONCLUSIONS en r 1. The Lake Minnetonka Area does not currently have new or recently developed housing products {with one exception) to accommodate households desiring one level condominium living in a convenient and amenitied setting such as provided by a mult'rfamily building with underground parking garage, guest, party and hobby roams, etc. These households are primarily older (over age 55) consisting of singles and couples no children. Younger single women are also attracted to this type of product. • Wensmann Homes has pioneered this product concept, refining it so that Wensmann's recent projects (with 40-80 units depending on location) are typically sold out before the buildings are available for occupancy. The recent Wensmann products have lakeside settings next to public trails, which may have contributed to their sales success. Wensmann will be offering a 44-unit mare luxurious project with 1.5 parking stalls per unit instead of its one stall formula previously) in Victoria later this year. • New multifamily offerings in the market area are not condominiums. They are • either rentals or cooperatives. 2: New housing products targeted to older (55 and up} age brackets typically meet with some sales resistance unless they are price competitive with what potential buyers are willing and able to pay. Much of this resistance comes from the slow decision-making dynamics involved with older people, who have not been in the market for a new home in many years, making discretionary purchases in an environment of a wide range of product and lifestyle choices. 3. Metro area developers of for-sale attached housing prefer mid density projects -- townhomes and especially twinhomes -- where the development and building risks are minimal in comparison with the higher risks {inflexibility and greater capital requirements) associated with multi-unit apartment style buildings. • Currently there are no new construction townhomes or twinhomes available for sa{e on or near Lake Minnetonka. This fact creates significant market opportunity for the Mound Harbor Renaissance development and for the Lost Lake site in particular. 4. The value of a boat slip located on a channel leading to Lake Minnetonka appears to be a debatable subject, based on our discussions with area realtors and builders. • CONHAIM ASSOCIATES, INC. -37- 2 • Values discussed ranged from $25,000 to $75,000. • We have used the maximum value of $75,000 (See Chart 1 in the Appendix) for our lot pricing analysis for the Lost Lake units with a boat slip. Our rationale for this is based on the locational convenience of the slips to the units here in addition to their easy access to the lake (Cooks Bay) and taking into consideration the fact that the Bartlett Blvd. bridge will restrict the size and type of boats which can be docked here. 5. In our opinion, the townhomes at Lost Lake which view the channel and the wetland complex, can command a premium (over base lot) of $35,000 (See Chart 1 }. End unit locations are given an additional premium of $25,000 for privacy and the ability to have more windows. Therefore we use a proposed lot price for the 18 view-boat slip townhomes at the Lost Lake site at $160,000. End unit lots with views and boat slips would $185,000. and 1. Mound is one of the least attractive (in terms of its general image) of the Lake Minnetonka area cities. This image is true for, the general populace as well as among builders and developers. The negative reputation results from its history of decline • from its glory days in the early 1900s as a lake resort; its longstanding shabby appearance and the mixed reputation of the Westonka School District. Until recently, Mound has been neglected by residential developers. However, its potential is becoming more significant each year as the Lake Minnetonka area continues its dynamism as one of the most desirable places to live in the metro Twin Cities area. Several new single family developments have been started in the past two years in the "suburban" areas of the city with excellent safes absorptions. • Mound in general and downtown Mound in particular remains price sensitive in terms of housing values. The downtown area requires a pioneering "spirit" among developers of upscale for-sale housing -- at least until the long planned infrastructure improvements occur. The city has taken some significant steps to improve its image and infrastructure with the Mound Marketplace retail development-- and more will be coming this year (start of the new greenway) and next (start of the Highway 15 reconstruction and beautification). But the improvement in the city's reputation is or will be a long term process. It will not come "over night." CONHAIM ASSOCIATES, INC. • -38- • 2. The proposed Mound Harbor Renaissance project, if it comes to reality in the version currently under consideration, would definitely accelerate the change in Mound's perception in the marketplace. • The marketability of proposed housing sites has been positively influenced by the recent opening of the Jubilee Foods-anchored Mound Marketplace retail center, which was designed by KKE Architects, Minneapolis, the premier retail center architecture firm in the Upper Midwest • The hoped-for successful completion of the single largest housing development in Mound in many years -- the Village by the Bay townhomes and condominiums would also favorably affect the market potential of the proposed housing sites. 3 3. There appears to be demand in Mound or the Mound area for townhomes and/or condominium products in the under $300,000 range, assuming that they are located and designed to appeal to unmet market niches. The largest single unmet demand segment would appear to be among older households in the 50-65 year old category, which is discussed in item no 4 below. The price point for demand could go as high as the mid 300s level for a one level twinhome with basement. • • There are no one level new construction t wnhome or twinhome units bein a g offered in the Mound area at the present time -- at any price range. This design is one of the most active product types in for-sale attached housing in the Twin Cities Area. The far-sale attached association maintained market in Mound is dominated by 99-unit The Village by the Bay project. • The extent of demand for housing products priced over $350,000 in Mound would depend on a) the realization of the downtown Mound revitalization project (especially the retail and restaurant services which might be generated) and b) the availability of a special amenity such as boat slip/dock with access to Lake Minnetonka. • Mound's intrinsic desirability comes from its Lake Minnetonka area location, which makes it potentially attractive to downscaling homeowners who currently live in the area -- especially those in the empty nester and/or pre- or retirement age brackets. Part of Mound's market potential beyond the significance of Lake Minnetonka .itself is-the number of small lakes within its borders, which offer attractive water views. • CONHAIM ASSOCIATES, INC. -39- 4 • 4. In our opinion, a multifamily condominium building with underground parking tailored for older market segments (party room and other amenities) would find a ready market here #or the Langdon Lake site. This is an attractive site with its lake view amenity and its walking distance proximity to churches and the new retail developments in downtown. Please refer to Chart 1. for design and pricepoint guidelines for this proposed product. • There is a lack of supply far new construction housing products designed for the older age brackets in Mound. (It should be noted that the scope of this market scan report did not permit a broader look at the market area as a whole.) • Grammercy Corp., the metro area's largest cooperative housing for seniors developer, recognized a strong potential demand for its product in Mound going back to 2001, when they wanted all of the housing units in the redevelopment project. They apparently could not agree to the city's terms at the time and therefore backed out. • The considerably higher than average market values for lake area residences, along with the aging demographics of the market would suggest that a supply • of such product would meet with considerable demand. The current product supply for for-sale multifamily housing is limited to The Village by the Bay (misnamed) project, which is not setting any records for sales velocity and in fact is considered to be a "distressed" project. The possib{e failure of The Village to capture the supply and demand opportunity in the market area may be the result of credibility problems created by an inexperienced developer, design problems or its location or a combination of all three. CONHAIM ASSOCIATES, INC. .7 -40- • SITE MARKETABILITY ANALYSIS PROBLEMS. General 1. The apartment market is extremely soft in the Twin Cities at the present time due to economic conditions and possible oversupply of new product/ projects. Rents are typically below. market levels. • In recent years high end luxury rent projects (rents in the $1200 and-up range) were (and still are) the only ones with economic feasibility without public subsidy. Mound 1. Mound has had and continues to have a negative public image, which is tempered by its being part of the Lake Minnetonka area and its strategic location with respect to • the several lakes large and small which are part of the city. This image is due to the fact that people who live here have been attracted by the low housing prices due to the poor quality of much of its housing stock. • The downtown area is noteworthy for its rundown look and the fact that it has been this way for more than 30 years has contributed to the negative image. 2. Mound traditionally been considered very far out. -This is more perception than reality since it is only 22 miles-from downtown Minneapolis. The perception is changing now that new developments have expanded to the far reaches of western Hennepin County. 3. Mound's location has always been a problem with respect to housing demand due to its relative lack of accessibility to the lack of freeways in the area (or any four lane highways) and to the twisty-turny nature of the highways leading to it. Harbor Renaissance (HR) sites 1. The available housing sites in the proposed HR area are not likely to attract the '~ interest of large or even middle size developers because the total number of units is relatively small with .only one site -- the Langdon Lake site -- offering a significant number of units. CONHAIM ASSOCIATES, INC. 5 -41- 7 • • Mound is no longer considered far out to the degree it used to be .now that metro area housing demand and developments extend well into Wright County. • The new Highway 12 corridor west of Long Lake will improve accessibility of Mound from the north. • The recently opened Mound Marketplace shopping center with Jubilee Foods supermarket as its anchor is the first significant positive growth stimulator and amenity for the city in at least thirty years. • The redesign of Mound's downtown area and the creation of a destination commercial village here should totally change the image and desirability of the city. 2. Pelican Point was the first large upscale Lakeshore development in the city and as such set the stage for Mound's future housing demand potential. It is helpful to the city's image -- the degree to which this is true may be debatable, however. • Unfortunately, the location of PP is not highly visible. But the resale availability • of relatively high end units with Lakeshore and marina creates interest among the area realtors. Harbor Renaissance (HR) sites 1. Langdon District site . This site has several opportunities owing to its tucked away location next to what is an attractive lake. • Its convenience (walking distance proximity) to existing and proposed future retail and services (including the Catholic church, future regional trail, Jubilee Foods, restaurants, .possible future clinic) in the downtown area. • Its quiet tucked location -- no highways means quiet living. • Natural features -very attractive lake views, good fishing, trees on two sides and wetlands. 2. Lost Lake District site. This site's opportunities are primarily based on its location next to Lost Lake wetlands and the Lost Lake Canal (channel to Lake Minnetonka), which was reconstructed in 1997. The channel is scheduled to become the focal point CONHAIM ASSOCIATES, INC. U -42- r~ ~ m ~ ~ r ~ M N Z .... 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