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HRA Meeting Minutes – Tuesday, November 18, 2014 Page 4 1 Chair Maschka noted the advantages of deferring loans until sales of those homes if possible; 2 and noted the number of homes in his neighborhood that had found new owners who had taken 3 mid-century modern homes and gutted them, changing the architecture and walls to make them 4 incredibly desirable to today’s lifestyle and more open floor plans and creating a great future 5 for millennials who may not want big, but do want nice. Chair Maschka noted the great asset 6 this provided in revitalizing a neighborhood and adding to the strength of the community. 7 8 Mr. Koepp concurred, noting the advantages with the macro-economic conditions of the last 9 few years that made those homes available at bargain prices. 10 11 Member Etten noted the logistics of deferring loan paybacks, and the considerable amount of 12 additional money required by the HRA to fund such a program. 13 14 Ms. Kelsey noted that the current loan funds were not being utilized, which had prompted this 15 conversation; and suggested marketing the program for a year or two, and then budgeting for 16 future replenishment of those loans if it seemed to be successful. Ms. Kelsey advised that the 17 cities of St. Louis Park and Richfield budgeted for two homes annually, or $600,000 annually, 18 and then budgeted the same amount for the next year. 19 20 Member Etten asked for staff to prepare a map showing valuations, and overlaying an 21 additional map with permit valuations for larger homes with little renovation done to-date in 22 older homes. Member Etten opined that those two needed to be considered together so as not 23 to be misleading; and to determine if and where investment was being made around higher 24 percentage corridors and lower investments in areas of very expensive properties. 25 26 Chair Maschka concurred, noting that information would be helpful especially along the edges 27 of lakes. 28 29 Member Etten noted the need to consider newer development areas less than 20 years old with 30 little activity; and larger homes with little renovation above $30,000 to $50,000. Member 31 Etten noted that lake homes were often built smaller and for seasonal use some fifty years ago, 32 and now were being gutted or rehabilitated for year-round living or having more amenities for 33 seasonal use. 34 35 Ms. Kelsey concurred, opining that it would be interesting to see 20 year homes near Owasso 36 Hills and what type of building permit activity was happening over $40,000 in 20 year old 37 homes. 38 39 Chair Maschka noted the interest of those moving into Roseville to be closer to work, parks 40 and enjoying the neighborhood characters; and questioned if they would stay. 41 42 Mr. Koepp noted one area in last week’s staff review that was sticking out, bounded by 43 Snelling Avenue, Victoria Street, Larpenteur Avenue and Highway 36, showing little activity. 44 45 Chair Maschka suggested that may be a function of the starting values of the homes in that 46 area; noting that there came a point in real estate that you no longer put significant money in 47 older homes. Chair Maschka noted that it may also be a function of age, with elderly residents 48 not yet having turned over those homes for other housing options. 49 50 Member Etten noted that smaller and older homes, pre-1945, may be of significant value if 51 they were amenable to rehabilitation and reinvestment. 52 53 Member Etten asked staff to put several options together for the HRA to look at in the near 54 future, and options for target areas needing incentivizing, with 2-3 pieces that the HRA could 55 choose from in various zones with lower home values, and suggestions for how to target them.