2008-01-15_Agenda - Laserfiche WebLink

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7. Public Hearing None. 8. Action Items: a. Consider Price Modification for Senior Housing Regeneration Program Home at 1000 Woodhill Ave. Mr. Darrow noted that the HRA board had visited the property on October 27. Mr. Darrow reviewed the expenditures that were made for the rehabilitation of the Senior Housing Regeneration Program (SHRP) home at 1000 Woodhill Ave. noting that the bulk of those expenditures paid for electrical upgrades, carpet removal, lead remediation, painting, countertop remodel and some landscape removaL Mr. Darrow indicated that Carolyn Olson of the Greater Metropolitan Housing Corporation (GMHC) was in attendance at the meeting as well as Paul Sigurdson, the realtor for GMHC. Mr. Darrow noted that Carolyn Olson had prepared a pro forma to explore each of three possible sale prices for 1000 Woodhill Ave. ($230,000, $210,000 and $200,000). Mr. Darrow noted that the HRA had discussed lowering the home's price from $230,000 to $218,000 at their previous meeting; however, since that meeting the possibility of an even greater price reduction was discussed by the HRA at their Strategic Plan meeting in October. Member Pust inquired about the line of credit interest listed on the pro forma and the interest rate on that line of credit. Carolyn Olson introduced herself to the board and explained that GMHC used a line of credit to purchase the home at 1000 Woodhill Ave. and the line of credit has a floating interest rate that is 3 or 4 points below prime. Ms. Olson estimated that the rate is appro�mately 6.0% at present. Chair Majerus asked for consensus from the board in setting a new sale price. Member Kelsey asked Ms. Olson for clarification of the average monthly property management cost ($1400). Ms. Olson indicated that this cost includes insurance, snow removal, lawn care and utilities for the property. Ms. Olson indicated that the developer fee listed on the pro forma ($6000) reflects the fee paid to GMHC for locating and purchasing homes for this program. The board discussed bids for additional landscape/outdoor clean-up work at the home. Mr. Darrow outlined a bid that he had already obtained which included a price for tree/shrub trimming and railroad tie removal ($1020) or a bid for that work plus stump, limestone and fence removal ($1175). Mr. Darrow opined that the cost for such work should not exceed $2000. Member Kelsey asked staff to clarify their recommendation for HRA action. Chair Majerus noted that there were two issues related to this item; setting a new sale price for the home and approving a bid to perform additional outdoor clean-up at the home. Member Kelsey suggested letting a buyer perform clean-up work as "sweat equity". Member Masche opined that a price reduction would be an appropriate reaction to the current market and he would also be in favor of making improvements to the yard to increase the home's marketability. Chair Majerus asked for consensus from the board on this issue. The board agreed to go forward with the improvements to the yard. Mr. Darrow suggested the HRA try a price reduction to $210,000, make the e�terior improvements and wait until January to consider an even greater price reduction if the home has not yet sold. Member Kelsey agreed, adding that she did not believe that the home would be priced competitively at $218,000 even with the improvements to the landscaping.