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1XIEQUEST FOR COUNCIL ACTION Date: 01/24/11 Item No. 11 . a City Manager Approval Item Description: Public Hearin g to consi*der the Lake Josephine Assocl'*atl'*on petl'*tl'*on to establish a Mousing Improvement Area (HIA) 71TUrp, 2 Chapter 428A of the Minnesota State Statutes allows for cities to create a Housing Improvement 3 Area to finance housing improvements in condominiums or townhome complexes. On 4, November 16, 2009 the Roseville City council adopted the attached Housing Improvement Area 5 Policy (Attachment A) in order to guide requests for establishing HIAs. The City has one HIA 6 in existence; Westwood Village 1, which was established in 2009. 8 The Lake Josephine Association (LJA) presented a petition to establish a HIA for their units to 9 the Roseville Housing and Redevelopment Authority (RHRA) at its meeting on November 16, 110 20 10. The RHRA reviewed the request and has recommended that the Roseville City Council 11 hold a public hearing for consideration of an ordinance establishing a HIA for the Lake 12 Josephine Association 13 14, The LJA is a 23-unit complex located at 3076 Lexington Ave., behind the Dairy Queen, and 15 across from Lake Josephine beach. The building was originally constructed in 1969 as an 116 apartment building. In 1979, the building was converted into a condominium association. The 1 7 LJA was self managed until January 2006, when they hired Advantage Townhome Management 11 111",,'11 (ATM) to manage their association. 119 2o LJA currently expends around $, 10,000 annually on routine and preventive maintenance items. 2 1 In 20111 LJA is facing the need for several large expenditures to make needed major 22 improvements to the facility. The association needs to update their elevator by the end of the 23 year in order to meet state building code requirements. In addition the boiler needs to be replaced 24, along with the windows and siding. The LJA also would like to make common area 25 improvements such as flooring, doors, fixtures, paint and mechanical work related to ventilation. 26 The estimated costs for these improvements are $,403,800.00. The most critical element of the 27 improvements are to the elevator. If LJA does not make the improvements, the State of MN will 28 require the elevator to be shut down. (The Lake Josephine building is three stories). 29 3o LJA does not have the replacement reserves needed to make the needed improvements and have 3 1 sought financing from two banks, which have denied their request (Attachment B). 32 33 Therefore, LJA has approached the City to ask for a ILIA to be established. Staff met with the 34, LJA to discuss the project and go over the City's ILIA policy. The LJA meets two of the 35 eligibility requirements for the use of ILIA Financing under section 3.01 of the City policy; Page I of 2