2003-02-25~ ~~
~° P~/
•
AGENDA
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
FEBRUARY 25, 2003
6:30 P.M.
PAGE
1. OPEN MEETING
2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS
3. ACTION APPROVING MINUTES: JAN 28, 2003 REGULAR MTG 1
4. REPORT BY VIP PROPERTY MANAGEMENT ON INDIAN KNOLL 2-8
• MANOR, WITH ANY NECESSARY ACTION
5. ACTION AUTHORIZING STAFF TO ENTER INTO AN AGREEMENT 9-17
FOR MANAGEMENT SERVICES FOR INDIAN KNOLL MANOR
6. UPDATE FROM MOUND HARBOR RENAISSANCE, LLC, WITH 18-24
REQUEST FOR EXTENSION OF PRELIMINARY DEVELOPMENT
AGREEMENT
7. ADJOURN
•
• CITY OF MOUND
HOUSING AND REDEVELOPMENT AUTHORITY
JANUARY 28, 2003
The Housing and Redevelopment Authority of and for the City of Mound,
Minnesota, met in regular session on Tuesday, January 28, 2003, at 7:00 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,
Community Development Director Sarah Smith, Sarah Carlson
1. OPEN MEETING
The meeting was called to order at 7:00 p.m. by Chair Meisel.
2. APPROVE AGENDA
Motion by Hanus seconded by Brown to approve the agenda. All voted in favor.
Motion carried.
3. APPROVE MINUTES
• Motion by Brown seconded by Osmek to approve the minutes of the January 14,
2003 meeting. All voted in favor. Motion carried.
4. REPORT BY VIP PROPERTY MANAGEMENT ON INDIAN KNOLL MANOR
Sarah Carlson of VIP Property Management presented the report on Indian Knoll
to the Council. There are no vacancies at this time at Indian Knoll, and this week
all capital improvements were submitted to HUD for reimbursement of close to
$35,000.
Motion by Brown, seconded by Hanus to approve the bills of January, 2003. All
voted in favor. Motion carried.
5. ADJOURN
MOTION by Hanus, seconded by Osmek to adjourn at 7:10 p.m. All voted in
favor. Motion carried.
Chairperson Pat Meisel
~ Attest: Bonnie Ritter, City Clerk
LJ
-1-
FEB. 20.2003 12:37PM VIP PROPERTIES N0.724 P.2i7
•
Indian Knoll Manor
February 20, 2003
VIP did not receive bank and ~M savings account statements for January. Bills
for payment, unaudited balance sheet and trend rEport attached.
Anticipate one vacancy at end of the February. Office stafif processing new
resident papennrork.
Residents continue invoivement in Friday night social activities,
•
•
-2-
•
FEB.20.2003 12~38PM VIP PROPERTIES N0.724
IUIOUND HOUSING AND REDEVELOPMENT A~ITNORI`lY
INDIAN KNOLL MANOR
1=ebruary,03
•
r~
#~ CHECK NO VENdOWMERChIANT
1 1001 AT & T WIRELESS
2 1002 FRONTIER COMMUNICATIONS
3 1003 B F I
4 1084 B SYLVESTER
5 1005 VOID
6 1006 C NABER
7 1007 IQS
$ 100$ MINNCOMM
9 1009 MINNESOTA UC FUND
10 1o1a MEI
11 1011 XCEL ENERGY
12 ~ 012 MOUNp TRUE VALUE
13 1013 VIP PRQPI;RTIES
14 1014 MILL CREEK
i5 1015 GENESIS COMPUTERS
16 1016 CENTURY MAINTENANCE
17 1017 ABDO, SICK & MEYERS
18 1018 ALBERS MECHANICAL
19 1019 PRAIRIE ELECTRIC
20 1020 PDQ SUPPLY
21 1021 KAREEN MILt•ER
22 /022 c & H DISrRI~U'roRS
23 1023 VIP PROPERTIES
24 1024 THE L4KER & THE PIONEER
25 5058 CITY OF MOUND
P.3i7
44.a6 FEB SERVICE
252.49 FEB SERVICE
340.23 FEB SERVICE
62.00 JAN CERTS
95.00 JAN ACCT
99.37 FES LEASE
6.55 FES SERVICE
6,959.44 UNEMPI-OY TAX/MEL&PINKY
158,05 JAN SERVICE
1,098.96 12-27 T4 1-28
13.58 MISC SUPPLIES
4.808.99 REiMBlPAYROLUMISC BILLS
223.41 MISC SUPPLIES
211.66 FIX COMPUTER
381.44 DOOR GASKETSlMISC
4,840.00 2002 AUDIT
504.62 BOILER REPAIR
1,737.50 EXTERIOR LIGHTING
59.35 MISC SUPPLIES
90.95 PETTY CASHlOFFICE
29.67 CLEANING SURI'L{ES
1,650.Q0 ,lAN MGMT FEE
27,8fi ANNUAIJS YEAR PLAN
8ra9.05 12-6 TO 1-7
~ 24,555.03
-3-
FEE.20.2003 12~38PM VIP PROPERTIES N0.724 ,, P.4i7
850230 INDIAN T¢10LT, MANOR 02/12/03 PAG7; 1
Q~DWDIT7yD
JANC7ARY 31, 2003
TPato RF3?OR.T MONTFl d 08 1
OCT NOV DEC JAN b'Fi8 huiR APRSL i9AY' .7IP.`7E .7T1I+X A,DG 8$PT 7[T1}
GROSS POTENTLAL APT RENT 11,691
GROSS POTENTIAL ~ a^iJI!$I7)X 0
CROSS POTEN'.~IAI, OTSi~RS 112
AFARTMETT VACANCY IA8S (1,341)
MZSCELLANL•OUS ALI.AS4ANC1•:5 (134)
RENT COLLECTSON VARIANCE 0
EFFECTIVE xSNTa$, INCOME 10,327 71,732
17, 7$4
&p
(1, p4 A)
(22)
p
28,455 11,431
0
(128)
f532)
0
0
10,771 11,431
Q
p
(277)
Q
244
11,403 0
0
0
0
0
0
0 0
0
0
0
0
0
0 0
0
0
0
0
0
0 0
0
0
0
0
D
D 0
0
0
0
0
0
0 D
0
0
0
0
0
0 D
0
0
0
0
0
0 0
0
0
0
0
0
0 46,283
17, 734
44
(3,193)
(156)
244
60,Q56
OTHER INCOME
IN~'EREST I]vCOME - GEN C71,SFj 7
INTEREST INCOME - G>rTl' 7'CTA*D 14
LAUNDRY INCOME 60
SECURITY D7i?OSS'SS soreaElzrEn D
oTxER coLLaoTIoN vARZAr7c~ D
TOTA.F, pTHER INCOhp; $1 7
}3
60
0
D
80 7
11
60
190
D
:69 0
0
60
0
a.as
245 0
0
0
0
D
0 Q
0
0
0
D
0 0
0
0
0
D
0 0
0
0
0
D
D 0
0
0
D
D
0 0
0
0
0
o
0 0
0
0
D
0
0 Q
0
0
0
0
0 2 Z
3 B
Y40
190
las
675
TOTAL INCOP~ 10,408 28,535 11,039 11,646 0 0 0 0 0 0 0 0 61,630
ADMINISTRATIVE EHPENS$8
BAD DEBT EX1'$NSE 0
CREAIT I7~7)rSTIGA.TIONS 0
DUES/8UH6CR1'1?TIONB 0
EDVCATION/S&MTNARS 0
LICEb(SE~JPERMITN 0
hwNAGr-MENT PEDS 1,650
OFBICE 9U7iALIES/PORMB 1
PROFESSXONA.ia 6$RVICES 357
SECURII^1 AT:P INTI;RREST FXP 0
TELEPXON$/PAGER 361
OTf~R AnM1NZSTRnTIVr E:CPEATSE 117
TOTAL, ADMINIBTRATIVli $}CPENSES2,486 D
68
0
0
lOD
1,650
324
157
p
316
111
2,726 638
70
0
0
, 0
1,650
23
632
123
284
181
3,fi01 0
23
100
iB7
0
1,650
27
157
0
297
104
2,54$ 0
0
0
0
0
D
0
D
0
0
D
0 0
0
p
0
0
O
0
0
0
0
0
0 0
0
0
0
Q
0
p
4
0
0
0
0 0
0
0
0
D
0
0
0
D
p
0
0 0
0
0
0
0
0
0
D
0
0
0
0 0
0
0
0
0
0
4
0
0
0
0
0 0
4
0
0
D
0
0
0
0
0
0
0 0
D
0
0
0
0
0
D
0
0
0
0 636
16
10~
18?
100
6,600
375
1,303
7.23
1,259
514
11,358
MAINTENANCE EHPEN6E8
LAHOR/1~',PAIRS 4,454
PARTS/,°,UPPLIES 257
ELEVATOR 304
PAINTING/DECORATING APTS. 0
8£ST CON'rRO~ p
LAWN/YARD EXPENS$ 735
SNQW REMOVA4 0
CIJEANINd BERVSCEB 37
TOTAL MAINTENANCE F,]tPF1QBES 5,7a1 645
252
304
0
0
3dl
0
0
1,$42 769
837,
0
D
56
D
0
0
I,6S7 0
333
316
20
0
Q
67$
0
1,353 0
0
0
0
0
0
0
0
0 D
0
D
0
0
0
0
0
0 0
0
0
0
0
0
0~
0
0 0
0
0
0
0
0
0
0
0 0
0
0
0
0
0
0
q
0 0
0
0
4
0
0
p
0
0 0
0
0
0
0
0
0
0
0 0
0
0
0
0
0
0
0
D 5,967
1,667
92&
29
56
1,076
675
37
10,332
ON-SITE Pfi1Z$ONN'£I.
RENIDENT MANAGER EXPP2~NG 2,p71 1,3p5 l,sp7 S~G21 0 0 0 0 0 0 0 0 6,504
MAINTENANCE SA~,Ag.X E}:PFNSE 1,3$3 937 1,037 951 0 0 0 0 0 0 0 0 4,310
CARETAKER BALARY E81'ENBE 989
PAYROLL TAXES 0 775
176 5,168
0 1,004
6,994 0
0 0
0 0
0 0
0 0
0 D
0 D
0 0
0 3,955 •
7,159
TOTAL ON-6ITE PERSONNEL 4,443 3,193 3,733 10,559 0 p 0 0 0 0 0 0 21,924
C]TI~,7:TIE8
EL,$CTRICITY 1P327 935 899 1,164 0 0 0 0 0 0 0 0 4,324
-4-
FEB.20.2003 12~38PM VIP PROPERTIES N0.724 P.5i7
E50130 INDIAN KNOLL MANOR 02 /12/03 PAGE 2
VNAUQTxfiD
JA41pp6RY 31, 2003 fQONTH d q,~ 12
• TREND RrPORT
qCP Nov DgC sAaT FE8 Afl1R AL~SiIL b9-Y JDN$ ~70LY ALTG SEPT YTD
GAS 448 8B1 1,689 2,132 0 0 0 0 0 0 0 0 5,150
RUBSIBIi REMOVAL 331 482 391 340 0 0 0 0 0 0 0 0 1,484
6EWER/WATEk 965 951 905 900 0 0 0 0 0 0 0 0 3,720
WATF,R CONDITIONIftO 0 0 0 x.00 0 0 0 0 0 0 0 0 100
TOTAh UTILITIES 3,070 3,248 $,B2d d,63G 0 0 0 0 0 p 0 0 14,778
TA7~S ANn INBURANCE
P&OPErt2Y IN3LIFlANCE 0 B,S67 30 0 0 0 0 0 0 0 0 D 6,597
TOTAL TA7(E$ AND ZNSZIR.ANCF; 0 6,567 90 0 0 0 0 0 0 0 0 0 9,597
SUBTOTAL OPxRATION EXPENSES 15.780 19,276 12,644 S9,p93 0 0 0 0 0 0 D 0 66,993
RE~LACk~NP/IMPRDV~N~ EXP
REI+LACEMENTB-APPLIANCES o 0 0 263 0 0 0 0 0 0 0 0 283
REPLACEMEN+L3•SLI]O/aARAas 0 0 465 0 0 0 0 0 0 0 0 0 465
R~PI.J.CEZ.jEN'DN-cARpET/VINYL 0 1,594 0 0 0 0 0 0 D 0 0 0 1,594
TOTAL REPx.AC~t~T/~l~GPRpV~ SX~ 0 1,594 465 283 0 0 0 0 0 0 0 0 2,943
FINANCSAL EXPENSES
TOT1+7, EXPENSES 1$,780
~ 20,80 13,309 19,377 0 0 0 0 0 0 O 0 69,336
ZNCOME (LO88) (5,32) 7,665 (2,270) (7,728) 0 0 0 0 0 D O 0 (7,705)
-5-
FEB.2Q,2003 12~38PM VIP PROPERTIES
850130 INOiAN IQ80LI+ MANOR
UNRLIDIT&D
,7ANCiARY 31, 2003
AEEET,9
CAS;i
PETTY CAS;I
OAEA q~NE'RAL ~
CITY OS MOUND
pENEP.AL FLIIdD IISVL'$TMENT
TOTAI, OkBH
CURR(.~,NT ASSET$
T£NAN').' ACCTS RECEIVADLE
ALLOW/DOU$~'FU$, ACCOCTNI+
TOTAL CURR$N'f AEE$T$
FIRED A88ETS
BU;LIa~NG5
FURN, £QU~P, MACkt - DpCELiI,~NG
r vRrr, EOUIi+, MAex - ADMAN
AU~I,~~NG IMPROV$MENT$
LANG IMPROVZ:D¢F,NTS
MOD COST COMI~L£TE
MOD COST UNCOMPI.ETE
D~AOPMENT COST
DEV CO$T CoNTgA
ACCUMULATED DEP1iECIAfiION
TOTAL FIxsD ASSETS
OTHER ASSETS
FREL+AID INSURANCE
TOTAL OT;iER AS.^,~TS
TOTAL AS9E'F8
LIAR IL~TIE.°,
CI7RRENT LIA&ILIT~~S
nccOUNTS PAXASLE - VENDORS
TENANTS F1EPq$FTN PAYABLE
T~NAN~`S DEP INTEREST PAYRB7aE
ACCRUED UTILITI£3
P;2EPAID RENT
PAYMENT IN L,YEti OF TAK
nES~RRED CREDIT CF 2001
TOTAL OURRENT LIRHII,ITIEB
IANG TERM LIABILITIES
NOTE PAYApI,$ LEVY FUND
TOTAL, LONG TERM L~ApILITIES
TOTAL LIRE142TI&$
BA~,ANCE SEIEET
ACTUAL
BALANCE
10q.00
64,978.59
910.11
11,335,69
3,628.55
(361.55)
1,6¢2,970.53
31,941.13
16,x77.02
373,679-86
8,680.00
53G,B55.91
8,900.00
1,SQ5,904.64
(2,gxZ,760,55)
(1,67.0,252.5¢)
13.67
12.558.78
1D,osa.oo
(B9N,34)
2,739.3$
325.gQ
12,223 56
l0o.pq
90,000.00
N0.724 P.6i7
02/12/03 PAGE 1
MDNTx 4 OF 12
•
LAST
MOIZTH
ACTUAL
CEANGE3
FROM W-BT
MONTx
loQ.oo
92,55fi.B0
910.11
11,335.65
97,324.35 104,902,x6
3,628.55
(361,55)
3,267.00 3,267,00
1,642,970.53
31,901.13
7.6,x77 , 0$
373,679.66
8,660,00
536,655.91
8, 9oQ. 00
i,50S,904.64
(2,09x,760.5$)
(1,410,252.5¢)
472,356.00 472,356.00
13.67
13.67 ).3,67
57x,961.02 580,539.23
12,558,78
9,938.00
(a98,3a)
2,739.35
335.00
12,2x3.54
100.00
37,136,33 36,9BG.33
90,000.00
90,000.00 94,000.00
1
-6-
27,136.33 126,986.33
,aD
(7,578.21)
.DO
,00
(7,576.21)
.00
.00
.00
.00
.00
.00
.00 •
.DO
.00
.DO
DO
.00
,oD
.Do
.00
.00
(7,578.21)
.00
150.00
.00
.00
.00
.00
.00
150.00
.oo
.DO
15q,00
FEB.2D.20aS 12~38PM VTP PROPERTIES
850130 II~IAN ~TpI~ MANOR
UNAUDYTED
JANUj+RY 31, 2 0 0 3
BALAN@F, eIiERT
HA7,ANC&
N0.724 P.7i7
02/12/03 PApE 2
MON'~.'fi 4 OF 12
LAST
MoN7~'I(
ACSUAL
&QC71TY
OGINER' E EQtrTTY
fIr1D j~HA COI~Tf.'.IpUTIOjQ 4S9, $44 , 52
REAR TO AAT£ P & L (G~a14,52)
YEAR TO DATE P&L (7,705.311
TQTAI, OAR'S ~QUI~Y
TRIAL I,IAS~I,ITI~S ANA FagUITY
4S9,9k4.52
(b,416.v~,)
22.90
kk5~e2k.69 453~552.9Q
572,961.02 58Q,S3~.23
•
CFiANaE9
AROM LAST
MONTii
r~
-7-
.00
.00
(7,7za,ai)
(7,7za.z1)
(7,5~e.21)
MDIA
Summary Statement
January 2003
• ,~s~o„r
i` ~t'y
......
•
For more information, call MBIA Client Services at (800)395-5505
Fax: (800}765-7600
4M~`'FUNu
Mound Housing and Redevelopment Auth.
Account Number. MN-O1-0258-2001
Account Name: GENERAL FUND
Beginning Contributions Withdrawals Income Average Daily Month End
Balance Earned Balance Balance
This Month $193,443.04 $0.00 $0.00 $177.09 $193,538.08 $193,620.13
Fiscal YTD
Endin 12/31/0 $193,443.04 $0.00 $0.00 $177.09 $193,538.08 $193,620.13
Account Number. MN-O1-0258-2002
Account Name: MOUND HUD
Beginning Contributions Withdrawals Income Average Daily Month End
Balance Earned Balance Balance
This Month $11,335.65 $0.00 $0.00 $10.37 $11,341.20 $11,346.02
Fiscal YTD
Endin 12/31/0 $11,335.65 $0.00 $0.00 $10.37 $11,341.20 $11,346.02
Total of all accounts
Beginning Contributions Withdrawals Income Average Daily Month End
Balance Earned Balance Balance
This Month $204,778.b9 $0.00 $0.00 $187.46 $204,879.28 $204,966.15
Fiscal YTD
Endin 12/31/0 $204,778.69 $0.00 $0.00 $187.46 $204,879.28 $204,966.15
•
January 20(13
Page: 1
-$-
MOUND HOUSING AND REDEVELOPMENT AUTHQRITY
INDIAN KNOLL MANOR
• 2020 Commerce Blvd.
Mound, Minnesota 55364
February 13; 2003
VIP Properties
Joseph Bisanz
11300 Minnetonka Mills Road
Minnetonka, Minnesota 55305-5157
Dear Joe,
TelephonelFax
(952) 472-5078
As per the Consolidated Agreement by and between the Housing and Redevelopment
Authority in and for the City of Mound and VIP Properties, AMO, modification 21.1,
I am hereby giving you written notice of termination of our agreement, effective March
31, 2003.
e The HRA Board and its administration want to thank you and your staff for the services
provided during the past ten months. Even though we were impressed with your
professionalism and attention to our needs in a number of respects, the HRA. cannot
jeopardize our relationship with HUD any further, or be subjected to any unnecessary
scrutiny and the possible risk of lost funding. We believe that you and your staff have
given it your best effort, but it is essential that we work with a firm that is knowledgeable
and experienced in meeting the mandated HUD requirements.
I am sure that you and your staff will help us to make the transition as smooth as
possible. We will keep you informed of the process that we hope to follow from the time
we select the new management firm to the end of your agreement with us.
If you have any questions on this matter, please call me at 952-472-0609 or Gino
Businaro at 952-472-0608.
Sincerely,
Kandis M. Hanson
Mound HRA Executive Director
• Cc: Gino Businaro
-9-
~~ ~-~ e
PR PERTIES.
Ja~.u.ar~ ~, 2003
Ms. FGa wPl%s 1-ta wsow
Mr. G.%wo gus"cwaro
C%t~ o f Mouwd
5341 MAI~WOOd Road
Mouwd; MN 55364.
RE: Iwdiaw K.w01as ~pArtw~.ewts
pear KGt wd%s a wd G%v~.o,
av~: wr~.t%wg %w regard to the vwawagevwewt of ~ou.r bucl.diwg ~w Mou:v~d. t hope aCL ~s
~o%wg we~~ for you. awd the bu%I:d~wg: +-towever, if you are th%w{2%wg o f w~.a~Zewg a
chawge %w vwav~,agev~.ewt rwoul,d ~f,~Ze to of fer ou:r serv%ces:
•
we are a +-t~p approved w~.awa jevu.ewt agewt. we have a traw~.ed sta f f that cave; do a~~
the reclu%red veri, fi,catLows, boo~~2.eepiwg, vtica%wteway.ce; awd res~c{ewt retewt~ovi. that is _
rec~u%red btu ~-F~t.A awd our owv~.ers.
i f you are ~oo~,w~;g to w~.a~e a pos~twe chawge ~w vwawagevwewtp~ease ca~~ vwe to set up
ate: appo~wtvu.ewt. our wt.owthltJ. fee wou.l,d be .~85o per vu:owth:
14gacw; if al.~ ~s we~~ with t~ie`bu%I;d%v~.g, dour costs are uvi,der cowtroC, ~ouY r-t~aD works ~s
Bowe provupt~~ ain,d accurAted~ we wish you we~~. i f there ~s roovu, for %vwprovevwev~:t
pGease cowtact w~.e at 629229553.
Thaw12 you for dour cows~derat~ow.
C~ wthia %ter ~ R ~ ~~- ~
Pres%dewt ,
2601 ~U~1SET BOULEVARD /SUITE 2B / MINNEAPOLIS, MN 55416 f (612). 92f>-8821 PEI()N~s l (6 t 2} 929-(}4221~~9,Y
-~~-
Westport t~roperti es ~v~,e.
26oY suwset ~aulevard suite 2~8
• Miv~,v~.eapolis, Mivw~,esota 5541
Tele: ~~29229s33 pax: 6s2;y29-0422
Ms. Kav~.dis H~a~.sow
Mr. c~iv~.o gusiwaro
Citt o f Mouvtid
6342 Matw00d Road
Mouwd, Miwwesota 5534
~ebruart 2~, 2003
R~: iwdLavt. ICvwCC Apartvwewts
Aea r K.a wdis a v~.d eivw,
ft is with great excitewt.ewt we are subwc.ittivLg this ~v~, for~~c.at~ov~. iv4 av~.t~c~pat~ov~. to
wE.awage tour apartwt,ewt buildiv~.g ivy, Mouwd. ~ have evr.closed sowc.e iwforwt.atiow for
tour review:
• Mawagewt.e~.t,4greewE.ewt
• Ian forvk.atiov~ ow Westport Properties
• ~v~. forw~.atiov~, ovi. ct v~,thia Reiter
• Trav~.sitiov~. Plaw
C,ew.eral sta f~ivLg fw.forVYt.at%ow
~ have wc.ade sov~.e vu.ivwr ad~ustvu.ewts to the trawsitiow sheet ~ previouslt subvu.itted.
~v~, additiow, if tou decide to hire us ~ would lil2e to recovu.wc,ev~d that tou allow us to
begiv~, our discussiov~s with H~~.tD regardiv+,g the defi.ciev~.cies as soon, as allowable. This
would help us get a head start iw gettivj,g the H-R,4 iw good stawdiwg with H-rtD awd
aw edge ow eorrectiv~g the de~~eiewcies, awd allow us to get started ow the P±----~ Plaw.
we would be able to get a hav~dle ova the operatiwg av~.d subside fuwds. we would iw
v~,o wat iv~,terfere with the cu.rrewt propertt wcawagewt.ewt operatiows awd would weed wo
cov~tact with th2wi.. There would be vw charge for vu,awagewt.ewt fee; however I would
have to bill tou for K.iwc.~s tiw~.e. we of fer this to hei.~ w~.a4ee the trawsitiow as sw~.ooth as
possible.
,4s u.wwerviwg as chawgiwg vu.awagev~.e~.t covwpawies caw be, ~ prowe.ise tou will be
happt with the results. our forevu.ost cow~.vuitvu.ev~t is to put the !-t'R,4 ivy, good
stawdiv~,g with H-~w awd to w~.a4ze tour buildiv~,g a great place to live. we have the
staff, the expertise avt.d the desire to accowcplish this. t loop forward to hearivt,g frovw
tou. Please call wc.e with awe c~uestiows tou v~.at have.
-11-
•
You`I.l, ~v~.aw tine o(~f ferewce ovi.ce dour ~u%Ldivi.~ %s a Westport buil,ct%v~g. ~eeL free to
c~v~,tact w~.e ova, vtrt,~ cell i f you l.i,{2e, 612-290-0888.
5i,~;cerel.u~,,
c~uwt~n~a Reiter
DwvLer
•
.]
_12_
• Westport T~~ape--t"tes twc
1~-a+a.r~gew+.e+~.t ~hi~asaph5 aw.d Iv4traduatiow
,~t Westport Properties, we spec%al~ze ~w the uvi.%cfue stile o f hawofs-o~. w~.awagew~.ewt.
rhos ~s our pro fessiov~a~ prowt.ise o f cov~t~wuiv~g our k~~gi~ expectat~ows o f deliveri.-n,g tY~e
except~o~.al sewice our owv~,ers Dave cow~.e to expect.
we are located %v~ M~w~,,eapol~s, M%w~n.esota with a satellite of f'~ce ~w Sa~~.t Paul awd
glalv~,e. we provide expert ruav,,agevu.ewt for SOD u~n.%ts o f ~wvestvuewt real estate
throughout the 'rw~w cities. we stave to create a uw%ctue relatt,owsh~p betweew
vu.awagers, bu%ld%v~g owwers, awd res~dewts - a partv~.ership that sewes the special
ivLterests a wd co~n.cerv~.s o f all.
we deliver our prowt.ise through wee~l~ site v~s%ts o f all our properties, cl~rect
covu.vu.uv~,icatlows with our accouvLt%vLg departvwewt to deep costs down, av~,d cash flow
pos~t~ve, excellewt resldewt relat~ows to deep our currevLt rewters hov~.e awd our view
res~dewts satls f Lecl with theGr choice to live iw a Westport bu~lc~~v~,g.
Most ~v~.portawt... ~s the opew cowt.wt.uw~cat~ows w%th our owv~.ers to ewsure the%r weeds
are beivig vu.et.
~ ~ Westport has a teaw~. o f experts that spee%alzzes iw the vu.awagevu.ewt o f svwaller
cow~.plexes as well as larger build%v~gs. We of fer our el~ev~ts the follow%v~,g sewices:
• `r'~uu.el~ av,,d accurate n~.o~.thC~ accouv~,t%vt.g reports
• ~w a f fordable "o{ovle right the fYi.rst t%vu.e" wt.ai.+ntev~av~ce progravu.
• dull vuarhet%vLg sew~ces o f all our properties
• .4v~, ewthus~ast~c well traCv~,ed sta f f to represev~.t dour property
• H-awds-ovti., Swt.art dad to dad attewt%ow to each property
we pro~.ote education., values a~n.d teachitn.g good busGrn.ess practices to our sta f f. we
evupl,o~ Gertifi,ed Property Mawagers, as well, as Certified Occupav~.c~ Spec%aLi,st, avid
Gerti,-~i.ed Malvtitewa~.ce Techv~.%c%av~,'s.
-13-
•
C~ ~.th%u Reiter
c established westQort properties iw 2~,y~., a fter beiwg iw the prapert~ wLawagevu.ewt
busiwess for 22 Sears. i have beew active iw all facets o f the w~awagevwewt busiwess
siwce ~~go. with 20 ears o f extev~sive experiev~ce inn, v~,ew cov~structiovL av,.d
rewovatiows wL~ expertise ties at both ewds o f the spectrum. - ~ have ~u.av~,aged old
restored buildiwgs as well as wewl~ cowstructed buildiwgs. M~ experiewce also lewds
to subsidized housiwg, tax credit prDpert'Les, tax exewLpt bowls, cooperative housiwg,
m.arhet rate, residewt associatiow m.awagewLewt awl some cowcwt.ercial. Mt~ career
begaw iw subsidized housiwg awl for the f Lrst ~o dears o f v~.~ career i aver saw9so
uwits D f a f Fordable, subsidized housiw,g. With all wt..~ experiev~.ce ivy, a f fordable
housiwg ~ awL well versed iw the social awl ecowowtiic weeds o f residevtts that reside ivy,
ourproperties, as well as the iwcpact that has ow the buildiwgs we wtiawage. This
uwderstawdiwg has a huge iv~.pact ow the buildiwgs we m.awage. iw addit%ow, ~
perforvu fiwawcial awal~sis awl forecastiwg of iwcawtie awl expewses ow rehabs awl
wew acr~uisitiDw properties far the awwers we warf~ for. f hold a Miwwesota 8roher's
Cicewse, a cert%-Led occupawc~ spec`Lalist awl am. a m.em.ber o f MMH>4 awl IR~M.
•
t wor4~ with H-L-tD fiwawced buildiwgs,-awl awc a H-~tD approved, m.awager fora project-
based sectiow 8 buildiwg iw Coow Rapids. we also war{2 with M+-f~~.4 for three of our
Tax Credit $uildiwgs. We are well versed iw the rec~uirewt.ewts set for the b~ ~-}~L1p awl
DtheY gDVerwtwg aLtthDYitieS which are iwvDlved iw fiwawCiwg a f fDYdable hDUSiwg.
M~ philosDph~ is tD uSe a GDwLwc.Dw Sewse approach to m.awagem.ewt. TO iwVDI.Ve all
sta f f persows iw every aspect or Dur busiwess awl to teach each sta f f persow to m.awage
each property as if we owwed it ourselves. This approach s share awl try tD iwstill iw
each persow who worfes with us at Westport. This shows bra the lewgth D f relatiowsh%ps
~ have with wL~ staff. They have beew with wLe for dears, sowtie over soears awl others
just startiwg as we grow we wc.al2e thews. feel as a part of our teaw~. awl give thews. the
tools awl educatiow they weed to get their jobs Bowe iw aw of ficiewt pro fessiowal
vv~a waver.
•
-14-
• Ewd%aw iCwoLl,l4partvu.ewts
Mouwd MiwweSDta - 48 uwtts p f pubEic hous~wg
owwed b~ Mpuwd H-R~4
T~aws~ti tsw - pl,aw ts-~ act%ow:
weed owe:
Do aw iwitial review of the residewt files -set up files iw accordawce with H-~,tD
g uideliwes
Do a review o f aZZ fiv+.av~.ciaZ reportir~,g avg. cleterv~e.iv~,e fin,ao~:ciaZ status
po a review of all reports due to H~t]a awd other agewcies
po a review of all docuvu.ewts supplies b~ HR.4
Deterwt.iwe all deficiewcies outlived b~ H-I.tD
lewd residewts vtt,evu.o tatd2.iwg about wew wc,awagevwewt awd positive chawges
Deterwc.iwe sta f f~wg weeds o f the buildiwg
petervu.iwe who carries propertt~/liability iwsurawce
Deterw~.iwe who the cowtact persow (s) for the propertt~ at r-I~t.~p
wee~z Two:
Call f-t-~,tr~ a wd set up a w appoiwtw~,ewt to iwtrod uce wew cow~.pa w~ ~F. visit site
', ~ Put together platy to correct all de f iciewcies / subw~.it platy to !-PFZ.4 for approval
Notif[J. ±-Ft,tp of tiwc.e frawc.e whew def"~ciewci.es will be corrected
Iwspect all residewt uwits awd covu.wt.ow areas for vu.aiwtewawce itevu.s
cow~.plete review of residewt files awd iwtplew~.ewt platy to correct de-~ciewcies
Have cow~.plete review of deficiewcies awd file review report cov~.plete awd sewd to
ICawdis awd G~iwo - outliwiwg tiwc.e frawt.e o f cowcpletiow
weed Three:
Have a residewt pizza partt~ to get all pertiwewt iwforwt.atiow vuissiwg frovu.
residewts
files awd to get to fewow the c~.awageru.ewt better - c~uestiows awd awswers -
cov~n.v~.ewts frowc. residewts
Put together residewt activity prograw~. awd appoiwt a residewt as the activity
director ^ begiw to traiw awd assist
wee~z dour:
±-1~ave fair H-ousiwg n~tar~2etiwg platy read awd approved b~ the board awd
read to subwt.it to H~tD
Have PolictJ, awd Procedure hawdboo~Z covwplete awd copies to the HR,4, owe iw
the property o f five owe sewt to H-itp awd owe at the corporate o f five
-15-
~fter9o dais we would have aw opew house awd iwvite residewts, +-i-~.w, the H~R.,4 awd •
its board vu.evu.bers awd awe other city, official or persov~.s as directed b~ IGav~.dis awd
~iwo. This will show good will awd let --t(.(D awol the f-I-R~4 awd the t-tR~ board V~,v~,ow
the progress we have vu.ade. ~t should owly~ tal2e owe -two hours awd will be great PR
for the buildiwg awd the H-R.4.
we have a sta f f o f three plus wc.~sel f who will be lwvolved iw the process the -~`~rst few
vu.owths: Ciwdt~ .~ Kivu. will be doiwg all the H-ttD reportiwg ~ reJ~ews - Ciwd~ will
detervu.iwe, with tt~ what the deficiewcies are awd word with Kiwe. to arrive at a ply w
an,d tivu.e table to correct all deficiewcies. Kiwc, will be daevt,g atl the residewt
certificatiows for H--~W - Ciwd~ will have cowtact with H-i,t.D awd establish a rapport
awd s~stevu. that works for ~-ti•t~ awd the buildiwg.
Ciwd~ awd Kivu. will word with H-~•tD to establish or re-establish the l..occ5 S~stevu.
for the propertt~ awd detervuiwe the best awd ef~~eiewt wads to covu.vu.uwicate with 1-I-~,t.D.
Kell will assist iw traiwiwg the ow site vu,awager awd assess if we peep her or wt.a{2e a
chawge. (f a chawge is i-n, order she will be the owe to assist iw hirewg a wew wc,awager.
Kell will also assist Kivu, iw the file review.
Jessica will assist iw establishiwg residewt activities awd wor~Z with the residewts iw •
choosiwg a residewt activity director.
eiwdtJ. will wortZ with accouwtin.g to establish a boor.;heepiwg s~stevu. awd what reports
are weeded b~ ±-i-~,tD. our booFzl2eeper, Aida, will also wor'2 with vu.e awd t-i-t.E,D iw this.
Iw additiow Ciwd~ will oversee all activities of all vu.awagers iwvolved with the project
we will wor42 as a teavh. to establish policies, s~stevus awd correct all deficiewcies awd
build relatiows with the !-rR~t, ±-Ft~ID awd the residewts.
The project will be charged for our vu.owthl~ fee awd Kiwc's tivu.e iw reviewiwg the files.
Iwitiallt~ Kivu.'s tivue vu.a~ be a bit vu.ore thaw we are use to for a project o f this size.
+-i-owever uwder the cireurk.stawces it is wecessar~ to correct the deficiewcies. K.i~na. is
paid ~~~ per hour plus tax awd bewefits. The pro~Ject will wot be billed fro the tiwc.e of
Jessica, Kell, ciwdtJ, or other activities Kivu. acquires iin, the dad to dad operations o f
the property.
Dwce all the defi.ciev+.eies are corrected things will ruw svu.oothl~ awd labor costs will go
doww quit a bit
This is a br"re f overvrew o f how we ptaw to proceea'..~s we get iwto the propertt~ this list
we.at~ be revised as weeded. The first 3o dais will be vu.ost crucial awd we w'~ll be ow site •
daily to ewsure accurate reporti.wg awd data gathe-%t,wg.
-16-
Mouwct I~~ ~ubLic H-ousiwg
sta f ~iwg suggestiows ~ Costs
for Iwdiaw IGwoLls ~4partvu.ewts
4 8 u.v~ts n f pu.bLic f-teusiwg
There are 48 uwits ivl. the buildivi,g, cov~sistiv~g priwc.arr.l~ of 2 bedroovw uvu,ts.
• z ow site R.esidev+.t n~av~.ager
• certified occupav~.c~ specialist
a fter all deficiewcies are corrected
average o f s.~ - 20 hours weed
uwdeterwt.iv~ed at this tiwc.e
average o f 5 - g hours wee-2
~2~ per hour
• s r~talwtewawce ~ersow - average o f' g - so hours per weep
This is based ow vi.o deferred wt.aiv~.tev~.avi.ce - vu.ore hours if there is turvL over
our v~.aiwtewawce people are paid avg. average of .~22 per hour plus tax awd
bev~,ec-~~ts. They also get paid vwileage G .3~ cewts per wc.ile
all evuplo~ees will be evuplo~ees o f Westport Properties uwless otherwise requested b5
the !-YiZ4.
•
ow Goiv~.g project Costs
• T-'ragraw~. Mav~agevuetnt 9~ cev~.ts per u~n,it per wc.o-nth
This i f for the wcov~,thltJ, software licev~.se we pad. you will be billed directly b~
the software covkpav~.~, 7~rogravu. ntawagewt.ewt. There is also a set up fee of
approxiwt.atelt~ .~~o, a ow.e tiwc.e charge
• ~vuergewc~ awswer~wg service - ~~ per vu.owth
• ~orvu.s; wt.ove out vu.ove ivy, forvu.s, seourit~ deposit forvu.s, word orders etc.
~stiw~.ated awwual cost .~~-~ dear
~'ostage for w~.ailiv~.gs - bills, etc actual cost
•
-17-
rk;~:A.Vr~:. E H L E
'`^r~;~?trev' & ASSOCIATE S
,e"<%
O To: Kandis Hanson, City of Mound
From: Jim Prosser, Ehlers & Associates
W Date: February 20, 2003
Subject: Mound Harbor Renaissance Status
Mound Harbor Renaissance (MHR) is requesting an extension of the preliminary
development agreement. Ehlers has been requested to provide an evaluation of the
project's a status for HRA consideration at the February 25, 2002 meeting.
Preliminary Agreement Activities and Purpose
The general purpose of preliminary agreements is to provide the developer an
opportunity to refine project plans to ascertain project financial feasibility. To
accomplish this, the developer refines the site plan, assesses market feasibility and
prepares updated financial data (sources and uses and financial pro forma) based on
the refined site plan. The financial analysis may also include a calculation of
projected tax increment based on the proposed development program (i.e. amount
of retail space, number of housing units, etc.). The following evaluation is based
on information available at the time of preparation of this report.
Evaluation of MHR Project Status
^ Site Plan
MHR has submitted a refined site plan. Two major issues are considered during the
site plan review at this stage of the project. First is the consistency of the site plan
with the site concept approved by the HRA. Second is the whether the site plan can
support the development program proposed by the developer considering traffic,
parking, circulation, required setbacks, access, etc. In general, it does appear that
MHR plan is consistent with the HRA approved site concept. The development
program. equals or exceeds the preliminary concept. However, there are three
unresolved aspects of the concept plan relating to general planning issue:
1) The development feasibility of the CSAH 110 South District is in question
because of the unknown location of the wetland edge. Staff review of aerial
photos suggests that the wetland edge may be significantly closer to CSAH 110
than suggested on the MHR plan.
LEADERS IN PUBLIC FINANCE
Jim Prosser
Executive Vice President/Director
3060 Centre Pointe Drive Phone: 651-697-8503 Fax: 651-
697-8555
•
s
Roseville, MN 551 1 3-1 1 05 _ ~ 8 _ Email: jim@ehlers-inc.com
~i~
I~
2) The development density proposed for the Langdon and Auditors Districts would
require structured parking. The cost of structured parking has not been evaluated
in regard to financial feasibility of the project.
3) Housing densities proposed for the Langdon and Lost Lake Districts are roughly
double the densities allowed in the Shoreland Management Ordinance.
It is important to note that this evaluation does not conclude that these issues are not
resolvable. The impact of these unresolved issues is that the development program,
including the value of what is proposed to be constructed cannot be assessed within a
reasonable degree of certainty. It is important to note that this evaluation does not
conclude that these issues are not resolvable. It could be expected that these issues
could be resolved within a 90-day period.
^ Market Feasibility
Market feasibility is evaluated to determine if there is a reasonable likelihood that
the proposed development will be absorbed (sold or leased} within an acceptable
time frame at the price and lease levels projected within the project pro forma. The
market feasibility will also be a factor considered by lenders at the time of project
financing. The proposed project includes the following development program:
Com onent Total
Office 83,000 s.f.
Market rate rental housing 148 units
Restaurant 5,000 s.f.
Hotel 75 rooms
Town homes 54 units
The MHR development team includes individuals with significant experience with
one or more aspects of the proposed development components. The program
reflects their considerable judgement regarding market feasibility. At this time
independent market analysis information has not been provided. Once the site
design issues are resolved, it is recommended that this analysis be prepared.
^ Financial Feasibility
Preliminary financial feasibility is assessed by a review of project sources and
uses. For this project the major uses include:
o Estimated cost of land acquisition, relocation, demolition and related
site costs.
• o Estimated cost of required public improvements (roadway
assessment, streetscape, structured parking, etc.)
Project sources include:
-19-
o Developer payment for land (calculated on basis of proposed
development components).
o Projected tax increment available if needed and authorized.
o Other revenue sources.
During the preliminary development phase it is recommended that the developer
prepare a land assembly estimate. An estimate is not yet available for the proposed
project area. The public improvement cost has been prepared for the general project
area. Additional project cost, such as structured parking, can be developed within a
90-day period of time.
The developer has not provided estimated land payment. This is best provided after
a market analysis of the proposed development program. Separate tax increment
projections have been prepared by the developer and Ehlers based on the submitted
development program. These projections should be updated if any changes occur as
a result of market feasibility review.
Findings
1. MHR has prepared a site plan that is consistent with the HRA approved site
concept.
2. Additional review and refinement of the site plan appears to be needed in
order to address general planning issues.
3. Planning issues and conflicts may require changes in the development
program.
4. A market feasibility analysis should be prepared prior to completing
financial feasibility analysis.
5. Updated financial information including land assembly cost, public
improvement costs and developer land payment should be provided prior to
completing preliminary financial feasibility analysis.
It is expected that these items can be resolved within a 90-day time period.
Process Options
The following options are recommended for HRA consideration:
1. Approve an extension to the preliminary development agreement for one 90-
day period to resolve the above named issues. If the issues are resolved to the
satisfaction of the HRA an additiona190-days could be authorized to prepare
a memo of understanding regarding a final development agreement. •
2. Allow the preliminary development agreement with MI-iR to lapse. MI3R
could continue to work to resolve these issues and present the results when
available.
-20-
•
3. Initiate a new competitive Request for ProposaUQualification process.
4. Authorize the project team to seek qualified developers letters of interest and
qualifications for HRA consideration.
5. Place the project on hold until further consideration by the HRA.
•
•
_2~_
February 5, 2003 •
Mayar and City Council
Housing and Redevelopment Authority
City of Mound
5341 Maywood Road
Mound, MN 55364
Re: Proposed Downtown Redevelopment
Dear Honorable Mayor, Council members and Commissioners:
Our reason in writing is to submit to you for your consideration a proposal for extending our
current agreement between the HRA and Mound Harbor Renaissance (the "Developer") for the
redevelopment of downtown Mound.
As you know, this is a complex project with many issues still to be addressed. During the past six
months, the City has moved forward on many redevelopment activities, including the relocation of
the Post Office and the design and awarding of construction contracts far the harbor and
greenway. We want to acknowledge that progress and we are working to ensure that our design
and planning process builds on the value of these investments.
However, there have been delays in proceeding due in large part to the difficulty of resolving
issues surrounding the realignment of County Road 15 and the fixture of the existing rail corridor. •
These issues include:
^ ascertaining when, or if, Hermepin County will realign County Road 15;
^ ascertaining the future use of the rail corridor and the resulting road design and grades
crossing the corridor;
^ ascertaining when and where the Met Council will relocate the current lift station.
We understand that the City is trying to proceed reasonably toward resolution of these issues, but
much of this is out of~he City's direct control. We have been reluctant to proceed with land
acquisition or more detailed redevelopment planning white these issues remain unresolved.
Consequently our efforts have recently shifted to focusing on trying to determine a method to
proceed in the redevelopment of those areas that are not dependent on the County Road 15
realignment or on the relocation of the lift station. At the same time we want to develop a method
to proceed with the remaining district once the resolution of these issues is complete.
As a result of our analysis we would like to propose the following:
DEVELOPER Prior to February 28.2003 The Developer will:
• Submit a summary of development activities to date;
• Submit an updated concept site plan; we have not made significant changes to the plan but
we do want to demonstrate our progress by providing a more accurate site plan delineation;
• Submit to your consultant a preliminary T.I.F. analysis based on preliminary estimates of
land acquisition costs and finished product market value; •
_22_
CITY On or before February 28, 2003 Upon the completion of the above items by February 28,
• " 2003 the City will agree to extend the Agreement an additional six (6) months.
DEVELOPER Upon the City granting the above extension the Developer will then during this
period:
• Develop a process for determining market value of properties to be acquired;
• Prepare projected Sources and Uses.
• Complete a preliminary market analysis;
• Update the T.I.F. analysis based on the results of the market analysis;
• Complete economic analysis from the Developer's perspective to verify economic
feasibility;
• Prepare and submit to the City for formal approval a Concept Plan for the entire downtown
redevelopment area;
• Submit to the City a proposed schedule and order far sequencing the four districts
comprising the downtown redevelopment area;
• Develop with the City a proposed approval process and schedule based on the above;
CITY During this same six month period, the City, the HRA and the Developer will negotiate and
execute an Amendment to the Agreement addressing among other issues:
^ Specify the approval process for the Concept Plan;
+ Sequencing the redevelopment of the South Highway 110, Langdon and Lost Lake
Districts (It is recognized that the sequencing of the redevelopment of the Auditors Road
District can not be determined until the outstanding issues are resolved)
• • Define detailed process and time periods for obtaining the necessary zoning, PUD and all
other governmental approvals for each respective district (It is recognized that approvals
from different agencies will be necessary for the different districts which will result in
different time periods.);
• Define detailed process and time periods for land assembly and acquisition, including
commitment to City participation in site assembly,
• Agree on a schedule for the acquisition, approval, start and completion of the first district.
• Designate the type and amount of public investment and financial assistance that will be
contributed toward the redevelopment of each district.
• Completion of a Development Agreement for the overall development.
We believe that it will be necessary to first proceed with the redevelopment of the South Highway
110, Langdon and Lost Lake districts. The Auditor's Road District will not be able to proceed
until issues pertaining to the highway and lift station have been resolved. The benefit in
proce~ing with the other three districts first is that it provides a relocation option for users
currently located in the Auditor's Road District and it provides a larger user base to support future
retail and consumer occupants of the Auditors Road District, which hopefully will increase the
value of the property when this district is redeveloped and to allow the project to proceed
immediately.
The Development Agreement that will be negotiated during this period will specify in detail the
future sequence of steps that each party will need to follow. As part of this we would anticipate
• that there would be certain benchmarks that the Developer will need to meet in order for the
Development Agreement to continue in effect. Without in any way limiting either party as to what
-23-
they may eventually agree to when negotiating this Development Agreement, one general outline
of a scenario of steps showing how the First District may next proceed is as follows:
REDEVELOPER The Developer acquires site control of the first district, prepares and submits to •
the City a preliminary plat application and PUD application for the first district to be developed.
CITY The City approves the PUD and Preliminary Plat application for the first district.
REDEVELOPER The Developer prepares and submits to the City the final plat for the first
district.
CITY The City, Planning Commission and all other governmental agencies grant all necessary
approvals for the final plat and any other approvals necessary for the first district to proceed. The
parties enter into a Developers Agreement for the first district.
REDEVELOPER The Developer breaks ground on the first district.
• REDEVELOPMENT OF THE AUDITOR' S ROAD DISTRICT At the risk of repetition
we do believe it is important to separately describe the issues relating to the Auditors Road
District. Unfortunately we have encountered some delay in proceeding because our
attention was diverted to trying to better understand this complex district. While it may
have taken us some time to learn what the City already knew, we now recognize that it will
be virtually impossible to redevelop the Auditors Road District until the lift station has
been relocated and the county road has been realigned.
•
Our hope is that this proposal provides all parties with the comfort level to proceed. Our intention
is for both the City and Developer to proud in increments. As much as we would like to be able
to provide you at this time with a more specific sequence and schedule for events, the site it too
complex and there are too many unknowns to do so. As a result we have designed an approach
that allows us to Qroceed with those sites that are first available for redevelopment, then
proceeding on to other districts that may take longer to redevelop, all the while providing the City
with certain benchmarks to make sure that redevelopment is proceeding in a timely fashion
consistent with the City's vision.
I look forward to the opportunity to fi~rther discuss this proposal with you.
MOUND HARBOR RENAISSANCE, LLC.
C
Thomas Stokes
Chief Manager
•
-24-
MOUND HARBOR RENAISSANCE
MEMO
February 25, 2003
To: Mr. Jim Prosser
From: Dave Newman (763-792-8975)
Re: Mound Harbor Renaissance Status
I am writing as a follow up to your memo of February 20, 2003 on the above project.
While we agree with many of your conclusions and recommendations, there are four
items we would like to raise with you prior to Tuesday's H.R.A./City Council Meeting.
1) Wetland Delineation We were unable to complete this item last fall. You are
absolutely correct that the exact location of this delineation can have major
impact on the concept plan and the related work that follows. The problem is
that absent unusual weather, this delineation cannot occur prior to May 15~.
This means that probably with a little luck we can complete the delineation
within the 90 day period you have recommended, but then there would be no
time to make any adjustments to the concept plan if required.
As a result we would suggest that the first extension be 4 months instead of 3
months.
2) Completion of Market and Financial Feasibility I agree with you that the issues
relating to the site plan need to be completed before the market feasibility and
financial feasibility can be completed, although we can start on both while the
site plan issues are being resolved. At the same time they need to occur in
sequence with the market feasibility being completed before the financial
feasibility can be finalized.
I am unsure from reading your memo, when you are proposing these to occur.
It would be our suggestion that after the site plan issues are resolved, that a
two month extension be then granted for the completion of both the market
feasibility and fmancial feasibility.
While we certainly will defer to the city, we do not believe it is necessary to take
three months to prepare a memo of understanding and another three months to
complete a contract for development. We believe both can be done in a
combined three-month period. This still meets the overall recommended time
line of 9 months.
3) Su~~ested Alternative Timetable Based on the above, we would respectfully
suggest that option 1 be modified to reflect the following:
• Resolution of Site Plan Issues 4 months
• Completion of Market and Financial Feasibility Studies 2
months
• Negotiate and Finalize Memo of Understanding and
Contract for Development 3 months
4) Densities Under Shore Land Ordinance You correctly raise the significance of
this issue in your memo. We understand from staff that the ordinance does
allow the city to grant variances from this requirement. I think it is important
for everyone to understand that the densities proposed are necessary to make
the project work. As a result, while I know fine Council cannot take formal
action at this time, we would like the Council to indicate to us that they would
be inclined to act favorably on a variance request when the concept plan is
presented as part of a formal request.
This is obviously a deal breaker issue. As a result it would seem to be in
everyone's best interest to address this issue now rather than wasting
everyone's time and money over the next several months only to find out that
the Council is unwilling to take such action.
r
I will give you a call to further discuss this with you. In the meantime I wanted to
forward this to you so that you can have the benefit of knowing what we intend to
propose Tuesday night.