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City of Roseville - Housing & Redevelopment Authority Meeting Minutes for July 15, 20...Page 3 of 6 Motion: Member Kelsey moved, seconded by Member Marks to approve by resolution, a Housing & Redevelopment Authority Tax Levy for 2004 at the maximum amount permissible to be forwarded to the City Council as part of the budget and truth in taxation hearings. Ayes: 3 Nays: 1 (Marks) Motion carried Consider a resolution for the purchase of vacant lots at Applewood Pointe. b. Bennett provided a verbal summary of the written staff report dated 7/15/03 as requested by Chair Majerus in which staff recommended purchasing of the 5 lots in Applewood Pointe. Kelsey noted that she was disappointed in the developer reluctance to reduce the base lot price based upon a reduced lot size. Chair Majerus asked whether it is the HRA’s responsibility to make these units affordable. Ramsey County will assist with the purchase of the lots, as long the sale price of the homes to new families is affordable to those at 80% or below median income. Scheunemann asked if the HRA target’s the purchase to fire fighters what are the requirements for being tied to the site. (If approved, staff will review criteria). Kelsey felt the HRA was given the information rather than having the ability to negotiate as part of the project. Mayor Kylysyczyn explained the process for the sale of the Arona site in the early 1990’s. The property was acquired as an investment with the understanding by many that the proceeds were to be used for a community center. HRA Attorney Casserly explained that there are two issues the HRA should consider in this decision. 1.) Risk in not having the resources to purchase the homes; and 2.) concern that the HRA cannot recovery the cost of the lots. The HRA could turn around and resell the lots to cover their cost. The affordability subsidy is the added cost to the project. Kelsey noted that there is not a risk factor in purchasing the lots. She prefers that the City Council buys the lots, then turns them over to the HRA since the land is theirs to begin with. The project was not originally structured for the HRA. The Council should participate to make the homes affordable since this was a goal of the master plan. Majerus stated that there has not been an initiative by the Council for the HRA to work through a partnership and that the HRA should request that they partner to achieve the same goals for the community. Bennett noted that the closing date from the City to the developer is set for July 28. The developer then must make the improvements to the property and complete the recording of the documents. Therefore, the earliest date for the HRA to close on the lots would be later 2003, early 2004. If the HRA tables this action, the developer could enter into a purchase agreement with another entity. Marks stated that the project is an opportunity for the HRA to take a bold step and move forward. He does not want to delay action. Scheunemann asked if there were other current opportunities for partnership. Bennett http://archive.ci.roseville.mn.us/council/hra/minutes/2003/hram030715.htm3/25/2010