2004-02-24AGENDA
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
February 24, 2004
7:00 P.M.
OPEN MEETING
PAGE
o
ACTION APPROVING AGENDA, WITH ANY AMENDMENTS
ACTION APPROVING MINUTES: FEB 10, 2004 REGULAR MTG
REPORT ON INDIAN KNOLL MANOR BY REPRESENTATIVE OF
WESTPORT PROPERTIES, WITH ANY NECESSARY ACTION
ACTION AUTHORIZING THE SELECTION OF A QUALIFIED
FIXTURE APPRAISER(S) AND QUALIFIED BENEFIT CONSULTANT
TO PROVIDE FIXTURE AND RELOCATION ANALYSIS ON THE
PROPERTIES SELECTED FOR PRELIMINARY REAL ESTATE
APPRAISALS, CONDITION ON RECEIPT OF AN AGREEMENT FROM
MHRD AGREEING TO PROMPTLY REIMBURSE THE HRA FOR ALL
FEES AND CHARGES PAID TO THE FIXTURE APPRAISER(S) AND
RELOCATION CONSULTANTS UNDER SUCH AGREEMENT(S)
1-2
3-13
14-15
6. ADJOURN
MOUND HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
FEBRUARY 10, 2004
The Mound Housing and Redevelopment Authority of and for the City of Mound,
Minnesota, met in regular session on Tuesday, February 10, 2004, at 7:20 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, Finance Director Gino
Businaro, Community Development Director Sarah Smith, City Attorney John
Dean.
1. OPEN MEETING
Chair Meisel called the meeting to order at 7:20 p.m.
2. APPROVAL OF MINUTES
Mark Hanus suggested some verl~al changes to the January 27th HRA meeting
minutes, making the subject sentence under item 4e read as follows: Hanus
indicated that the law doesn't require that a resident sit on the Board, but states
they must be given the opportunity.
MOTION by Brown, seconded by Hanus to approve the minutes of January 27,
2004 as amended and to approve the minutes of the January 29, 2004 meeting.
All voted in favor. Motion carried.
3. CONSIDERATION/ACTION ON HRA REIMBURSEMENT RESOLUTION
FOR CUSTER PROPERTY
John Dean gave the overview and indicated that the resolution is a housekeeping
measure to facilitate the purchase of the Custer property for future development
of the hotel on Auditor's Road. The Purchase and License Agreements were
approved at the January 29, 2004 special meeting.
Motion.Brown, seconded by Osmek to adopt the following resolution. All voted in
favor. Motion carried.
RESOLUTION NO. 04-01H: RESOLUTION DECLARING THE OFFICIAL
INTENT OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF MOUND TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE AUTHORITY.
HRA Minutes - February 10, 2004
4. REALIGNMENT OF CSAH 15
· A. Approval of Consent to Enter and Waiver of Trespass Agreement.
Carton Moore provided an overview of the agreement which allows access on
to Outlot A, Mound Visions Addition (Parcel 28) which is needed for the
CSAH 15 project. Information was prepared by City Attorney Bob Lindahl and
has been recommended for approval.
Motion by Hanus, seconded by Brown, to approve Consent to Enter and
Waiver of Trespass Agreement for Outlot A, Mound Visions Addition. All
voted in favor. Motion carried.
B. Approval of Purchase of Right.of-Way for Parcel 28.
Carlton Moore explained that an Offer to Purchase Parcel 28 by Hennepin
County for the CSAH 15 project in the amount of $26,200.00 has been
proposed and is recommended for approval by Staff.
Motion by Hanus, seconded by Osmek, to approve Offer of Purchase of
Parcel 28 by Hennepin County for $26,200.00. All voted in favor. Motion
carried.
5. ADJOURN
Motion by Hanus, seconded by Hanus, to adjourn the meeting at 7:25 p.m. All
voted in favor. Motion carried.
Chair Pat Meisel
Attest: Bonnie Ritter, City Clerk
Feq~..t4~y 24, ~0o4
-3-
WELLS F~R;~O;BANK MINNESOTA, N.A.
RIDGEDA'LE O~FICE
pOST:OFFICE ~OX B 514
MINNEAPOLIS, 'MN 55479
i,hh,hl,.Ih,lh.l,,h.ll,ll,.,hlh.,hh,i,;,IhllM
HOU.~'Z~G & EEDE~ELOPNENT AUTHDRZTY
SP'EC[AL ACCOUNT
CZ'TV'OF HDUND?'~.,
NOUND NN 5'5564-1627
Page 1 of 3
494
AccOunt Number:
Statement End Date:
Numb er of Enclosures:
01/31/04
28
If yOu have any questions about this statement or your accounts, call: 800-225-5935 (f-8OO-CALL-WELLS).
Your"Accounts' at' a GlanCe
A~count
~L '~B'~/~ Bu~i/]ess Checking with interest
Ne~: ~f~'~ W~lls Fargo
Beginning
.Balance
66,25~.38
Ending
Balance
62,407.50
Deposits/ Withdrawals/
~redits Debits
10,627.59 - 14,478.47
Th~fpl,!O~ih~ ,~han~es..are .effective June. 1, 2004. StopP~¥ments Will be:$29 per item. *Wire Fees: OutgOing
R~e'.t. !t!Ve DomestiCilr~_t?nal. Transfer wiil be $22;.~u~b'i~g 'Repetit!~e International(US`` Cu~enCy) "will- ~e
O~6!h'~ R'~itive lh~e~h'ati~nal (Foreign. Currency) ~ill be'$28,.P!~se 'contact your banker Or,' ca11~80~5935
yo'~"~;h~'~%ah~'esti.~hs::'~ ~'h~ed:' ~n'Y :~S'~J~c~'' ~ith~'~b~ ~.~'~u~:. ~e aPpre'~'~'t~'.'yo~ur bu~'i~esS an~'.,Ib,o~'fd~Ward
t~~ln~ tO~'.s~fV~, you~ financial need~.
.~E~t-feeS maY"~PPly in HudSon, Wi ' *- ~'
Ba~id Business Checking with Interest 00~0033530
Hbusing & Redevelopment Authori~
Special Account
Dbc3~ *Beginning B~lance
Ja~,:31 Endjhg .Ba~anc~
Deposits and Credits ............................................................................................... ~-
Date Transaction Detail AmOunt
Jan 02. Deposit
Jan'07 Deposit
Jan ~3 Bank By Mail Deposit
Jan t5 Deposit
Jan 20 DePosit
Jan 30, Interest Payment
4,062~00
3;0~0;00
207.00
355.00.
196.95
2.64
Checks paid -~.'~ ..... ~ .... ~ ...................................................... , ..................... : .......................................
;,
· Check # Date Amount Check # Date Amount
1371 ~' Jan 12 8.13 1372 Jan 05 ' 93. ! 1
· Gap in Check Sequence
Continued-on next '~age
-4-'
Page 2 of 3
405
Account Number:
Statement End Date:
F"'~o&~n'o;''~ Rpdevelopmeht ~AUthority
~ ~ecialAccount - · ,
Checks Paid 7'"? ...................................................... ~ ...................................... ~ ......................... ~ .......
Check. ~ . Date .A~m~u~t, ~ :,.~. , .' Date Amount
1411 * Jan 20' 675;36 1~ ~ 1~4.02
14 tS J~' 'i3 - 3,285,.42 I~28 J~'?t2' 850.~
1417 Jan 15 1'59~4 ~ ~2 ~a~ 28. 3~;00
14t8 Jan 13 ·7,31' 1~5 * Jan 28 ~69.27
14~g Jan 13 2~.50 1~7 * Jan 29 36.91
1420 Jan 15 75~78 I~8 dan 27 120.50
142I Jan 14 169~'27 1439 Jan 27 6.81
,422 Jan ,5 ~,20 ,,~, '
Gap in Check Sequence
For Your Interest -' ...... ' ~
Eff~t~t;.we.:.;~rlll, 2004, to complete as many of your Bill Pay transactions as possible,'W, ellt; ilar o is en '"' '
· ;.,-'?~ .,~., *:.'....,,.:,:: ....... . .... ......... . .... g hanctng: the
B{~(~;~p~t':~V!¢e:pro=essm~ procedures, If yeu:snhedule a payment throUgh your Bill pay Sefvlne, and taerb are
~¢~e~¢s..~ ~ouf ac~un[ t~ .:~'Over oho ~a~a~ti~ ~. the Pay~e~¢:'date~ ~ells ¢a~¢'~ ~y; ta'.[e?a.ny'¢ t~
- ' ~;6~./'he ~nsa~tion if you have overd~'~proieCtion, -
. ~.:..k,~he.~h~ntion ahd creat6 an overd~ to your account, or
Y~.~.'b&':a~s~ea*a fee, which will-vary depending on the a~ion ~ken. If you dO not have
~~.~e;~ tO CO~ct your local ba'~er, Call I~80~225.5935, or visit us Onlihe to enroll We
b~'~g'l~bk' fo~waP~ to continuih~ to se~vg your'financial needs.
continued on next page
-5-
Mound, MN Pdblic Housin_o
2020 Commerce Boulevard
Mound, MN 55364
As OF
December 31, 2003
BALANCESHEET
ASSETS
111101 -
111700 -
112200 -
112201 -
112900 -
116200 -
121100 -
140002 -
140003 -
140005 -
140007 -
140008 -
140009 -
140016 -
140017 -
140055 -
140095 -
150600 -
Cash General Fund
Petty Cash
Tenants Accounts Receivable
Allowance for Doubtful Accounts
City of Mound
General Fund Investments
Prepaid Insurance
Development Cost
Development Cost Contra
Accumlated Depreciation
Buildings
Furniture,Equipment,Machines-Dwelling
Furniture,Equipment,Machines-Admin
Land Improvements
Building Improvements
Mod Cost Complete
Mod Cost Uncomplete
Mod Cost Uncomplete Contra
TOTAL ASSETS
57,566.99
100.00
2,276.00
(860.00)
91o.ll
11,433.37
4,038.94
1,505,904.64
(2,042,760.55)
(1,693,937.60)
1,642,970.53
31,9o1.13
16,477.o2
8,680.00
516,849.64
536,855.91
56,307.36
(12,000.00)
642.713.49
SURPLUS AND LIABILITIES
211400 - Tenants Security Deposits
211499 - Security Deposit Interest
212900 - Notes Pay Levy Fund
213700 - Payment in Lieu of Taxes
213701 - PILOT Current Year
280200 - HUD PHA Contribution
280600 - Retained Earnings
Current Year Net Activity
TOTAL SURPLUS AND LIABILITIES
(9,178.00)
66.19
(90,000.00)
(3,915.80)
(804.92)
(391,547,73)
(125,102.80)
(22,230.43)
~642.713.49)
Mound, MN Public Housin~
2020 Commerce Boulevard
Mound, MN 55364
As Of
December 3'1, 2003
Statement of Operating Receipts & Expenditures
311000 - Dwelling Rental
312000 - Excess Utilities
Total Rental Income
361000 - Investment Interest/General Funds
369000 - Other Income
802000 - Operating Subsidy
Total Other Operating Receipts
Total Receipts
Expenses
411200 - Manager Payroll
413000 - Legal Expense
414000 - Staff Training
415000 - Travel
-~417000 - Accounting Fees
i t17100 - Auditing Fees
419000 - Sundry-Administrative
419500 - Outside Management
Total Administrative Expense
422000 - Tenant Services
Total Tenant Services Expense
431000- Water
432000- Electricity
433000- Gas
439000 - Other Utility Expense
439100 - Garbage Removal
Total Utilities Expense
440000 - Maintenance & Operation
442000- Materials
443000 - Contract Costs
Total Maintenance Expense
YTD Over
Current YTD Prorated (Under)
Activity Balance Budget Budget
(10,089.00) (29,294.24) (7,027.50) 22,266.74
0.00 (222.55) (174.99) 47.56
(10,089,00) (29,516.79) (7,202.49) (22,314.30)
(10.57) (31.44) (107.49) (76.05)
(399.75) (1,076.67) (437.49) 639.18
(4,149.00) (12,447.00) (14,562.24) (2,115.24)
(4,559.32) (13,555.11) (15,107.22)- 1,552.11
(14,648.32) (43,071.90) (22,309.71) (20,762.19)
3,024.00 9,304.31 9,800.01
0.00 0.00 350.01
261.95 261.95 337.50
0.00 144.16 56.25
545.00 687.93 886.26
0.00 0.00 1,209.99
1,838.22 3,030.69 2,577.51
850.00 1,700.00 2,550.00
6,519.17 15,129.04 17,767.53
0.00 0.00 300.00
0.00 0.00 300.00
(495.7O)
(350.01)
(75.55)
87.91
(198.33)
(1,209.99)
453.18
(85O.OO)
(2,638.49)
(300.00)
(300.00)
308.20 459.60 849.99 (390.39)
1,065.45 2,085.41 2,975.01 (889.60)
6,293.56 7,419.39 3,624.99 3,794.40
1,857.37 2,731.17 2,199.99 531.18
361.45 722.90 1,350.00 (627.10)
9~886.03 13,418.47 10,999.98 2,418.49
4,737.36 10,100.76 13,332.51 (3,231.75)
529.69 1,406.04 2,250.00 (843.96)
1,750.46 6,156.62 2,499.99 3,656.63
...... ,7,~017.5117,663.42 18~082.50 (419.08)
-7-
Mound, MN Public Housinq
2020 Commerce Boulevard
Mound, MN 55364
As Of
December 31, 2003
Statement of Operating Receipts & Expenditures
451000- Insurance
452000 - Pmts In Lieu Of Taxes
454000 - Employee Benefit Contributions
Total General Expense
YTD Over
Current YTD Prorated (Under)
Activity Balance Budget Budget
1,132.90 1,572.55 3,624.99 (2,052.44)
10.15 804.92 2,120.01 (1,315.09)
561.39 2,549.52 2,407.50 142.02
1~704.44 4~926.99 8~152.50 (3~225.51)
Total Routine Expense
601000 - Prior Year Adjustments-Cash
Total Nonroutine Expense
Total Expense
25~127.15 51~137.92 55~302.51
(605.45) (605.45) 0.00
(605.45) (605.45) 0.00
24,521.70 50~532.47 55~302.51
(4~164.59)
(605.45)
(605.45)
(4,770.04)
Printed: 02/18/04 CASH DISBURSEMENTS REPORT Page 1
Westport Properties
Check# G/L# Payee Ref# Amount
Bank# Memo
Transactions for Property: IKM - Indian Knoll Manor
01/02/04 1428 5000 Westport Properties Mgmt Fee 850.00
1017 Mgmt Fee for Indian Knoll Manor
01/20/04 1436 5202 Retail Services 302433803099656 40.57
1017 Maintenance Supplies
01/20/04 1437 5202 Mound Tree Value Hardware XO5893 19.06
1017 Maintenance Supplies
01/20/04 1437 5202 Mound Tree Value Hardware XO6031 11.29
1017 Maintenance Supplies
01/20/04 1437 5202 Mound True Value Hardware XO6002 6.56
1017 Maintenance Supplies
01/20/04 1438 5035 Rental Research Services Y87232 DEC 120.50
1017 Credit Check Expense
01/20/04 1439 5040 SBC Paging 48326001046 6.81
1017 Telephone/Fax/Internet
01/20/04 1440 5025 Theresa Wallum 120103 Petty Cash 3.60
1017 Postage Expense
01/20/04 1441 5300 Xcel Energy 1920-008-243-363 1,118.96
1017 Electric Expense
0 l/20/04 1442 5200 Westport Properties Payroll 2,704.11
1017 Maintenance Contracts
01/20/04 1442 5225 Westport Properties Payroll 1,787.76
1017 Management Contracts
f'"' !)/04 1429 5315 Browning-Ferris Industries 031200 DEC 374.10
1017 Rubbish Removal
01/20/04 1430 5022 B Sytvester 12/03 MTCS 62.00
1017 Professional Fees- 12/03 MTCS
01/20/04 1431 5020 C. Naber & Associates 26325 95.00
1017 Accounting Expense
01/20/04 1432 5010 Classifieds 29449 11/03-12/03 340.00
1017 Advertising Expense
01/20/04 1433 5202 Home Depot Credit Services 5140632 18.03
1017 Maintenance Supplies
01/20/04 1434 5065 IOS Capital 60965888 155.85
1017 Office Supplies
01/20/04 1434 5065 IOS Capital 60708338 155.85
1017 Office Supplies
01/20/04 1435 5200 Minnesota Elevator Inc CD23529 169.27
1017 Maintenance Contracts
01/20/04 1436 5202 Retail Services 302432503010556 61.00
1017 Maintenance Supplies
01/20/04 1436 5202 Retail Services 302433703099310 i9.72
1017 Maintenance Supplies
01/31/04 1443 5225 Westport Properties Payroll 2,124.94
1017 Management Contracts
01/31/04 1443 5200 Westport Properties Payroll 1,145.31
1017 Maintenance Contracts
01/31/04 1443 5201 Westport Properties Payroll 880.00
1017 Cleaning Contracts
Property Total: 12,270.29
-9-
Report Total: 12,270.29
Page 1 of 2
Kandis Hanson
From:
To:
Cc:
Sent:
Subject:
"Carol Pollock" <lorac@citlink. net>
"Cindy Reiter~' <Cindy_Reiter@westportpropertiesinc.com>; "Kim" <kklugherz@comcast. net>;
"Theresa" <indianknollmanor@hotmail.com>
"Jerry Patiuk" <jerry_patiuk@hud.gov>; <kandishanson@cityofmound.com>
Friday, February 13, 2004 6:13 AM
Indian Knoll Manor
The following items were discussed at the Resident Council meeting on
Thursday, February 12:
1. Jeanne in apartment 405 is on oxygen and has several tanks of oxygen in
her apartment. She is a heavy smoker and has been advised that this is a
fire hazard. The Ridgeview nurse will no longer visit Jeanne because of the
hazard. Indian Knoll management and maintenance personnel are aware of this
situation. We do not know if any action has been taken. The lease states:
"creation of physical hazards in the unit" is a "serious violation of
terms." Regardless of whether management has taken any action to rectify
this situation, the Council has decided it is appropriate to call the police
and/or fire department.
2. Evelyn (I believe apartment 401) has had several people living in her
apartment since last summer. Evelyn apparently requires live-in help.
Evelyn's "help" (Sandy and friends or relatives) lives upstairs in her
apartment; however, Evelyn lives downstairs with her friend Raydene in
apartment 104. Evelyn is rarely accompanied by her "help" and the live-ins
seem to have free access to the building.
3. The handicap parking signs in the parking lot are confusing. It appears
as if these spots are for people with handicap permits, not restricted
parking for residents. Parking in front of the building is restricted at
times, there is no parking alongside the building. I asked to Theresa to
consider establishing a "pick up and drop off" parking spot in the lot.
Perhaps the "No parking" spot by the sidewalk would be appropriate.
4. We would like a written copy of the policy regarding transfers within
the building. At one point, residents of studio apartments had priority on
the waiting list for a one bedroom apartment. Our understanding is that no
transfer fee or move in/move out fee will be charged.
5. We would like a written statement regarding procedures for adjustments to
rent due to changes in income, medical expenses, etc. If a tenant reports a
change in circumstances, how long should the adjustment process take (i.e.,
how quickly should management respond)? Are tenants liable for retroactive
rent if the adjustment is not done promptly? How soon after the adjustment
does the new rental rate go into effect?
6. 'The fire alarm went off recently. Who is responsible for calling 911 ?
The alarm rang for over 30 minutes. It rang for at least 20 minutes after
emergency personnel arrived. It would seem wise to develop a procedure for
- 10- 2/13/2004
Page 2 of 2
response to alarms (e.g., who should call 911, stopping alarm, evacuating if
necessary).
7. People with pets have not received the lease addendum or receipt for
their pet deposit.
8. Given the confusion surrounding the CRP forms, it seems a good idea for
tenants to receive a rent receipt each month.
9. Tenants would like to know how the flat rental rate was calculated. It
seems quite high compared to other rental property in the area.
Thank you.
- 1 1 - 2/13/2004
Page 1 of 2
Kandis Hanson
From:
To:
Cc:
Sent:
Subject:
"Indian Knoll Manor Mound HRA'' <indianknollmanor@hotmail.com>
<lorac@citlink. net> ·
<Cindy_Reiter@westportpropertiesinc.com>; <jerry_patiuk@hud.gov>;
<kklugherz@comcast. net>; <kandishanson@cityofmound.com>
Tuesday, FebrUary 17, 2004 10:57 AM
Response to your e-mail dated Fri, Feb 13, 2004
Dear Carol,
The following is the responses to the 12 items that were discussed at
the Resident Council Meeting on February 12, 2004:
1. I personally did not know about the oxygen tank situation in Jeanne
Denny's apartment, However, on Monday, February 16, 2004 the Fire Marshall
and Theresa had a meeting with Jeanne regarding the situation. They outlined
the guidelines in which she needs to follow while smoking. The three of
them have come up with an agreement and We will be monitoring the situation.
2. Evelyn's live in help (Sandy) has been approved by her doctor & verified
by us of such. Sandy has also signed the live in aid agreement. I am
unaware of Evelyn living in Raydene's apartment and will discuse with both
of them the accusations of such. Sandy was away for 2 weeks and recently
just got back due to a family emergency. Evelyn and Raydene are friends and
do spend time together frequently.
3. We will need to approach this idea with the City to see if this is
possible.
4. I have left a copy of the Admissions and Occupancy Guidelines effective
January 25, 2000 in the office for the Resident Council. This guideline
should answer your questions regarding Transfers. I did not see listed in
there the issue of current residents having priority over new admissions.
5. The guidelines for Adjustments is also in the Occupancy Guidelines.
6. Electrowatch contacts management and 911 when the alarms go off.
Management and it's staff are not allowed to shut-off the alarms until the
fire department has assessed the building. Once the fire department has
completd assessing the building they reset the system. The reason the fire
alarm went off on Wednesday, February 4, 2004 was because a resident over
cooked an egg.
7. We have not been contacted by any residents regarding their pet deposit
and the amount paid. When Westport took over as the managing agent last
year a letter was sent to all residents with the amount of security deposit
and pet deposit we were given from the previous managing company. At that
time any resident with a discrepancy contacted us and the issue was
resolved. The pet lease addendum only needs to be signed at time of the pet
being new to an existing resident or at the time of move-in when a new
resident has a pet. The lease addendum does not need to be signed at annual
- 12- 2/17/2004
Page 2 of 2
or interim certifications.
8. Residents should keep copies of their bank statements/returned checks
from their banks, copies of the money order or cashiers check they use to
pay their rent for their records of rent paid.
9. There has and is a copy of the flat rent rate and how it Was derived on
site in the office. Please feel free to visit the office to look this over.
These amounts are figured annually, and the annual date for the
calculations is May 1, 2004. The amounts are approved by the Mound HRA
Board prior to being put into effect.
If there is anything else you need please feel free to contact me.
Kim
Dream of owning a home? Find out how in the First-time Home Buying Guide.
http://special.msn.com/home/firsthome.armx
- 1 3- 2/17/2004
CHARTERED
470 Pillsbury Center
200 'South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
February l7,2004
To: Mound HRA Commissioners and Executive Director
From: John Dean
Subject: Preliminary Fixture Appraisals and Relocation Benefit Projections for Mound Harbor Renaissance
Project
As part of the analysis currently being undertaken by the HRA and MHR, assumptions are being
made regarding the costs of property acquisition. Those assumptions then become a key element in the
determination of project feasibility.
At your meeting on January 13, 2004, you authorized hiring appraisers to perform preliminary value
determinations for certain selected properties within the MHR Project. Attached is a copy of the
memorandum that I prepared for you in connection with that action. The HRA staffis in the process of
selection the properties that will be appraised.
In addition to preliminary appraisals of the real estate, the staffhas concluded that it is important that
the value of fixtures and the cost of providing relocation benefits and assistance should also be analyzed at
this time so that we will be able to make a complete comparison of those costs to our projections of those
costs.
We recommend that the HRA authorize the selection of a qualified fixture appraiser or appraisers,
and qualified relocation benefit consultants to provide the fixture and relocation analysis on the properties
that are being selected for the preliminary real estate appraisals.
The results of the evaluations would be used only for the purpose of testing the accuracy of our
property acquisition cost assumptions and for no other purpose.
If the HRA wishes to proceed as outlined above, we would further recommend that the authorization
be conditioned on the receipt of an agreement from MHR agreeing to promptly reimburse the HRA for all
fees and charges paid to the fixture appraiser(s) and relocation consultants under such engagement
agreement(s).
I will be available at the February 24, 2004 HRA meeting to answer any questions that you may have
on this matter.
JBD-244116vl
MU195~15
-14-
il ii I, ~, · II , ,l,
CHARTERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
January 9,2004
To: Mound HRA Commissioners and Executive Director
From: John Dean
Subject: Preliminary Appraisals for Mound Harbor Renaissance Project
As part of the analysis currently being undertaken by the HRA and MHR, assumptions are being
made regarding the costs of property acquisition. Those assumptions then become a key element in the
determination of project feasibility.
Acquisition expenditures are among the most significant elements of cost in tax increment projects;
and this project is no exception. If our site acquisition cost assumptions are not reasonably accurate,
significant problems, including the potential insolvency of the development, could occur later.
We are at a point in our negotiations with MHR where it becomes important to test those
assumptions. We recommend that the HRA authorize the following activities:
The HRA staffwould be authorized to select an appraiser, or appraisers to conduct a
prelim/nary analysis of market values of certain sites selected from the project area.
With input from MHR, the staff would meet with the appraiser(s) to select a limited number
of properties to be evaluated. The scope of the evaluation would also be agreed upon at that
time with input from MHR. The engagement, the scope of work, the selected properties and
the fees and charges would all be addressed in engagement agreement(s) with the
appraiser(s).
Notice of the proposed evaluations would be sent to owners and known occupants of the
selected properties.
The selected properties would probably not be evaluated if the owner/occupants of those
properties are not willing to participate. In such case, substitute properties could be selected
for evaluation following input from MHR.
The results of the evaluations would be used only for the purpose of testing the accuracy of our
property value assumptions and for no other purpose.
If the HRA wishes to proceed as outlined above, we would further recommend that the authorization
be conditioned on the receipt of an agreement from MHR agreeing to promptly reimburse the HRA for all
fees and charges paid to the appraiser(s) under such engagement agreement(s).
I will be available at the January 13, 2004 HRA meeting to answer any questions that you may have
on this matter.
JBD-242466vl
MU195-15
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