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City of Roseville - Housing & Redevelopment Authority Meeting Minutes for September ...Page 2 of 5 <br />Ayes: 7 <br />Nays: 0 <br />Motion carried. <br /> <br />b) Motion: Member Millasovich moved, seconded by Member Kelsey, to approve payment <br />of the legal fees, in the amount of $ 5,867.50 for services rendered for May through <br />August, 2003. <br /> <br />Ayes: 7 <br />Nays: 0 <br />Motion carried. <br /> <br />Member Kelsey asked if internal review such as that from the City Attorney can be used to <br />reduce the costs of the HRA attorney. Kelsey urged staff to provide templates for documents to <br />reduce legal fees in the future. She also asked for clarification regarding the attorney’s billing of <br />Arona TIF to the HRA rather than the City. <br />  <br />Public Hearing <br />7. - none <br />  <br />Action Items <br />8. <br /> Contract for Private Redevelopment with Greater Metropolitan Housing Corporation <br />a). <br />(GMHC) for construction and sale of 5 homes at Applewood Pointe. <br /> <br />Cathy Bennett explained the purchase of five lots in Applewood Pointe for workforce housing. <br />She explained the purpose of the contract for private redevelopment with the GMHC noting that <br />the HRA staff is qualified to manager the construction and sale of the homes of which GMHC <br />has that expertise. She explained the development proposal to include the subsequent sale of <br />the lots to GMHC for $1 and GMHC will finance, market and sell the houses. The HRA will <br />provide GMHC with a $10,000 per lot development fee. There is no GMHC profit collected from <br />the sale of the homes. HRA will approve the home designs (small homes). Sales price cannot <br />exceed the County and/or State criteria for income. The County maximum sales price will be <br />$175,000 and will be limited to 80% of medium income for the owner. Three of the lots will be <br />reserved under these criteria. The equity beyond $175,000 will be assigned to the HRA as a <br />second mortgage. GMHC also holds a first right of refusal for the resale of the house for first- <br />time home buyer home. The staff recommended approval of the contract with GMHC with slight <br />modifications. <br /> <br />Member Kelsey asked if the second mortgage could be the greater of the appraisal – sales price <br />or what the HRA’s investment in the land and development costs. <br /> <br />Member Hermes asked if there was a minimum length of time for the first owner to live in the unit <br />(no). She also would like clarification regarding GMHC’s marketing procedures for the sale of the <br />homes (direct mail, listing on MLS, word of mouth, etc). Cathy Bennett explained that the initial <br />equity returns to the HRA which would deter a quick resale of the home. <br /> <br />Member Scheunemann asked if the lot and utilities, streets were included in price (yes). <br /> <br />Member Kelsey asked for clarification of who takes any added profit that may result from the <br />sale (HRA). <br /> <br />Chair Majerus asked how GMHC will target work force housing and/or police, fire, teachers. As <br />outlined in the agreement, all five lots must meet the criteria for first time homebuyers, but could <br />be outside MHFA and Ramsey County criteria. <br /> <br />Chair Majerus said he was concerned about contract detail and eligibility criteria.. <br /> <br />Motion: Member Majerus moved, second by Member Scheunemann to table the contract <br />to the November 18, 2003 meeting to reconsider the eligibility criteria. <br /> <br />http://archive.ci.roseville.mn.us/council/hra/minutes/2003/hram031021.htm4/16/2010 <br /> <br />