2009_0126_Packet - Laserfiche WebLink

Home

Attachment B Regular City Council Meeting Manday, �ep�ember 22, 200$ Page 7 sessments when divided among fhe units and based on majority decision of prop- erty owners. Councilmember Pust opined that the Association Board had done an arr�azing amount of work for a volunteer board, anc� thanlced them far their perseverance, further opining that the Board; as well as the City Council had learned a lot. Councilmember Pust questianed if the board had taken into consideration, f�r the construction work, m.aki.ng the property more environmentally friendly an.d en- ergy efficient to be good environmental stewards in the products being considered for the improvements. Councilmember Pust provided her rationale in seeking this information to serve tne greater Roseville community needs through improvement of this strong piece o� the City's housing stock, berrefiting the entire commun�ty. Councilmerr�6er Pust opined that, throu�h this process and in redozng Association docurnents, it hac� hopeiully served as a learning experience in woricing together as a community, whi�e compromising on various aspects, and comm�nded t�e As- sociation majarity for increasing th�ir dues to accammodate fut�re ifnprovements, negating the need to return to the City for assistance in the future. Mr: Lindberg advised that the Association was attempting ta da so, with insula- iion board fnsulation behind the siding, in acldition to insulated siding to a11ow en- ergy savings for Y�omeowners; in addition to many individual praperty owners in- sta�ling new windaws at a cost inve�tir�ent ai $15 — 20,000 per unit out-ot�pocket, which would also save energy. 1VIs. �elsey, at the request of Councilmember Pu�st, provided a review af why the private sector was not willing ta finance these impravements. Ms. Kelsey high- lighted ciiscussions with U: S. Bank and Bremer Bank, with them both identifying their reasan for denial based on only approximately 10% in rEplaeement reserves, and the amaunt needed estimated to be $1.5 million; thus not meeting the banks' underwritin� req�irements to cover a certain percentiage of ZO — 25%. Ms. Kelsey noted that Bremer Bank oi�ered to serve as a direct placement for the City of the loan, r�ather �han the City p�rsuir�g a bond in the mar�Cet place; ho�ever, �hey d�- rnanded that the improvement be assessed on individual taxes so they could be �uaranteed a return on their investment. Addiiional discussian includec� current housing and ecanomic markets; conse- quences of any units t�at may go into foreclosure and impacts to the association and/or assessment pay back to the City; and confirmation that the private market was not an option for tbe AssociaEion or property owners. ��o�uncil�nember Pust opined that, before t�ie govertunent served as� a bank, con-� firmation had been determined that the private market was not gaing to finance the project. Mayor �lausin� open.ed the Public Hearing at 7:02 p.m.