08/26/08 Special Meeting - Laserfiche WebLink

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Community Development Director Miller stated that the City could get the money back, however, there are some situations where a builder owns a predominant portion of the property and they are exempt from paying these fees, so if they go bankrupt, the property does not get taken care of. She stated that in other communities where she has worked, association documents were reviewed by the City before the development was approved so the City could see the long term maintenance capabilities and requirements. Commissioner Gamec stated that on National Night Out, he had conversations with people concerned that their maintenance fees being higher, such as $300/month because of more units being empty. He stated that people were concerned about others moving closer to the cities because of gas prices and what that would do to their maintenance fees. He reiterated that he thinks there will be a bigger problem with vacant single family homes, not vacant townhomes. Commissioner Elvig stated that he thinks another problem will be that homes valued at $650,000 are being sold for $300,000 because of the current financial dynamics. Commissioner Look stated that he has been sitting back listening to the conversation and questions how it is the City's responsibility for developer's businesses going south. He stated that he sees someone in Ramsey struggling to make ends meeting and being taxed on top of that with a levy so the City can offset some mistakes made by a developer in a townhome project. He stated that the Council discussed the budget at a recent work session and needed to meet a $250,000 shortfall and looked at cutting a portion of the EDA budget. He stated that he isn't sure that the EDA should take 100% of the hit and suggested that there could be a compromise between the two entities. Commissioner Elvig asked what the proposed amount of the cut to EDA was, as he was not at the meeting. Chairperson Olson stated that the difference between EDA and HRA is that there is a fund balance in the EDA account of close to $1,000,000. Commissioner Look asked whether the County had recently come for some of the funds from HRA. Executive Director Frolik stated that was a separate levy through the County. Commissioner Look asked what the fund balance was for the HRA. Executive Director Frolik stated that at year end it should be close to $400,000. Commissioner Gamec stated that he would like to stay with the recommended amount and keep the levy the same as last year. Executive Director Frolik stated that the biggest line item in the budget is 6315, which sets aside funding for the City to have a home buyer or rehabilitation program. Housing and Redevelopment Authority / August 26, 2008 Page 3 of 10