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HRA Meeting Minutes – Tuesday, January 20, 2009 Page 4 $125, which served to offset rental for the facility for the day. Ms. Kelsey noted that the brochures were completed, with maps prepared. Ms. Kelsey suggested that more non-profits be approached for next year’s fair to determine their interest in being involved. Ms. Kelsey advised that final updates would be provided at the next meeting; and that staff was presenting to the City Council at their January 26, 2009 meeting. Ms. Kelsey advised that City Manager Malinen was donating his time for the day to assist. Ms. Kelsey noted that this was really a community effort; and noted the many volunteers who did so annually, and without them the event could not happen. Ms. Kelsey advised that they were planning a special recognition for a minimum of two (2) volunteers who had done so for over thirteen (13) years to-date at this event. a.Update on Housing Improvement Area (HIA) – Westwood Village I Ms. Kelsey updated members on establishment of this HIA, originally requested three (3) years ago; and approved by the City Council in September of 2008. Ms. Kelsey noted the work completed by the townhome association in updating their by-laws, providing cost analyses and allocation of assessment costs, and establishing a financial plan for future reserves to address maintenance issues. Ms. Kelsey advised that the assessment allocations would go before the City Council at their January 26, 2009 meeting. Ms. Kelsey advised that the assessments included a twenty percent (20%) contingency fee to allow for unknowns. Member Pust suggested that if HRA members or members of the public have strong views or comments, that they talk to the City Council. Ms. Pust noted that there were several ways to look at this situation, and that requests for additional information indicated there were questions yet unresolved. Ms. Kelsey addressed some of the specifics of the request; per unit assessment realities and limited budgets of some of the owners; and confusion of some residents. Member Tracy requested review of the HIA program and ordinance, including the financing through Bremer Bank; interest rates plus fees for City administration of the financing; fifteen (15) year term of the loan; lack of availability for private financing on a number of the units; and assessment of the costs, as a guarantee for payback or a lien on the tax rolls with first place for payback upon resale. Ms. Kelsey advised that the loan term was 15 years, at 6.75 – 7.25% interest, in addition a 1.5% City fee. Discussion included steps taken by the association to ensure they did not end up without sufficient reserves for future improvements, by providing an average increase of $200/month in association dues; creation of a budget plan for the future that had been reviewed and approved by the City’s Finance Director Chris Miller; and protection to the City from any additional debt issues, with the City serving as a pass through and administrator. Member Pust noted that the City Council may need to discuss policy issues from their perspective to address their criteria for providing this assistance in case other associations expressed interest in similar financing; did the City wish to serve as a bank repeatedly; and how best to address the strife created in the Westwood Village community related to the cost allocations for improvements, which had grown contentious. Further discussion included other communities having experience with HIA’s (Hopkins and St. Louise Park); additional information provided by Member Masche on this subject; the uniqueness of this request for 100% of construction costs, rather than gap financing; and inability to determine if any individual units are close to foreclosure until they actually go into foreclosure. Additional discussion included the HRA’s standards going forward and whether they were interested in doing so again; informal staff surveys to determine if other similar situations were