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HRA Meeting <br />Minutes – Monday, July 28, 2014 <br />Page 3 <br />1 <br />At the request of Chair Maschka regarding this proposers timeframe, and in light of the <br />2 <br />additional proposal received earlier tonight, Ms. Kelsey advised that a public hearing and <br />3 <br />approval by the body of a negotiated Development Agreement was scheduled for the <br />4 <br />September 2014 HRA meeting to facilitate a fall construction start. Ms. Kelsey noted that this <br />5 <br />was this applicant’s first opportunity to build a home, and the home’s cash financing would be <br />6 <br />put in place by his parents, without need for external financing approvals. <br />7 <br />8 <br />Discussion included this offer at $84,000 compared to tonight’s proposal for $98,000; lender <br />9 <br />commitments per proposal; numerous inquiries received by staff and only two applications <br />10 <br />presented; the need for a future process that is clear and consistent; experience of contractors <br />11 <br />for each proposal; value of each home and type of family that home would attract (e.g. young <br />12 <br />family versus retirement home); need for the Crandall family to sell their current home as a <br />13 <br />contingency on their offer to purchase this lot and construct a new home; and their preliminary <br />14 <br />design work to-date for a new home; and the Caldworks Construction proposal financed <br />15 <br />entirely by their parents for cash, and not including a Letter of Intent regarding financing due <br />16 <br />to their current travel schedule. <br />17 <br />18 <br />Ms. Kelsey suggested several options for the HRA to consider related to this property: <br />19 <br />1)Defer a decision until their August 2014 meeting, allowing the original applicant to come <br />20 <br />forward with additional information if this is the preferred product of the HRA; or <br />21 <br />2)Choose one of the two applicants at this time; or <br />22 <br />3)Defer action and request a Letter of Intent for financing from BOTH applicants as part of <br />23 <br />their due diligence and application process. <br />24 <br />Ms. Kelsey noted that the Caldworks application did not include that <br />25 <br />26 <br />Based on her experience in the lending field, Member Elkins noted that applicants would not <br />27 <br />be required to sign any papers with a mortgage company, but simply seek confirmation that <br />28 <br />they would provide a construction loan, which was typically contingent upon the sale of the <br />29 <br />existing home as applicable. <br />30 <br />31 <br />At the request of Member Quam, Ms. Kelsey advised that the limitation of one year for <br />32 <br />construction was included as a stipulation in language of the Development Agreement; <br />33 <br />34 <br />By consensus, Members agreed that delaying one month to ensure financing is in place and <br />35 <br />paperwork was submitted in its entirety for either or both projects should not significantly <br />36 <br />impact their construction timeframe, but if so, construction would need to be delayed until the <br />37 <br />spring of 2015 to have necessary paperwork and assurances in place. Members noted that this <br />38 <br />would provide an opportunity for the first applicant to raise their offer if they chose to do so <br />39 <br />and were seriously interested in the property. <br />40 <br />41 <br />Ms. Kelsey noted that a number of inquiries on the property were received by staff. <br />42 <br />43 <br />Chair Maschka clarified for proposers and staff the expectations of the HRA that Letters of <br />44 <br />Intent from financiers, and firm dates and numbers made available by both parties; noting that <br />45 <br />the information needed to be received by staff no later than the Monday prior to the August 19, <br />46 <br />2014 HRA meeting to ensure materials are in proper order and available for the meeting <br />47 <br />agenda. <br />48 <br />49 <br />At the request of Member Quam, Ms. Kelsey reiterated the public hearing and Development <br />50 <br />Agreement for HRA consideration and action scheduled at the September HRA meeting. <br />51 <br />52 <br />b.Authorize agreement for Sales force web-based database <br />53 <br />As detailed in the staff report, Ms. Kelsey summarized the request authorizing a participation <br />54 <br />agreement with SalesForce.com with the Greater MSP as outlined at an annual cost for use of <br />55 <br />the web-based application of $400 per year. <br /> <br />