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HRA Meeting Minutes – Tuesday, February 21, 2012 Page 12 1 to facilitate development; negotiation of a Purchase Agreement contingent upon a fair market 2 appraisal and upon HRA Board approval and financing, and contingent upon the HRA Board 3 acquiring the city-owned fire station parcel; and potential interest of private developers in 4 assembling the parcels on their own without any role by the HRA. 5 6 Ms. Kelsey advised that, while one realtor had approached staff on the future of the fire station 7 parcel, they had been advised that the HRA may be interested in the parcel prior to it going on 8 the market. 9 10 Further discussion ensued on the process if the HRA became involved in purchasing either or 11 both parcels; advantages of assembling the parcels and cost savings to facilitate development; 12 community needs for additional multi-family development; and potential control of the 13 property’s future development based on ownership by the City/HRA rather than private market 14 preferences that may not pursue the highest and best use of the parcels or the preferences of the 15 community. 16 17 Additional discussion included how the HRA could leverage in additional affordable units for 18 the community as part of any private/public partnership arrangement; and potential use of the 19 HRA’s bonding authority as a tool to assist private developers at lower than market rate 20 interest rates, similar to financing used for Villa Park Apartments. 21 22 Chair Maschka noted that discussions could lead to further consideration of an EDA to 23 facilitate future development; and potential fees for use of the bonding authority. 24 25 Member Battisto expressed interest in a land lease as another option. 26 27 Member Pust encouraged HRA attorney Steve Bubal and City Finance Director Chris Miller to 28 weigh in on those potential options and their recommendations to the HRA Board and staff in 29 the decision-making process. 30 31 Member Lee spoke in support of options that would allow the HRA to leverage affordable 32 housing units. 33 34 Ms. Kelsey noted the HRA’s previous comprehensive market study and the potential 35 redevelopment of that site based on its zoning for HDR; however, she noted that the study 36 didn’t preclude higher use of the property. Ms. Kelsey opined that the HRA had taken a major 37 step in educating the public on the community’s housing needs. As an example, Ms. Kelsey 38 noted the action a number of years ago, pre-HRA inception, when the City purchased a former 39 school district site that had now become Applewood Pointe. Ms. Kelsey noted that this was 40 the direct result of the city purchasing the parcel and opening it to the marketplace to 41 determine their response and demand. Ms. Kelsey noted the resulting variety of housing the 42 City had acquired. 43 44 Chair Maschka noted that the previous process had required significant and long-term 45 negotiations on both sides to accomplish the end result. Ms. Kelsey concurred, noting that it 46 had taken several years between the City and developer to resolve the issues. 47 48 While recognizing the positive results from that partnership, Member Pust noted that we now 49 lived in a different political atmosphere with citizens no longer having black and white 50 viewpoints on what role government should play. Member Pust noted that the role now 51 needed to be clearly defined to meet needs and work with the private development community, 52 all in a transparent process and to achieve mutual goals. 53 54 Discussion ensued regarding how the mold developed in the fire station. 55