11/01/11 Work Session - Laserfiche WebLink

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APPROVAL OF MINUTES No minutes to approve as it was a work session. Chairperson Elvig asked that staff revamp the template for the work session agendas as it is not necessary for the formal approvals of the agenda or minutes, nor is it necessary to call out for citizen input. 11RA BUSINESS 5.1. Discuss RTC Master Declaration /Association Executive Director Nelson noted that HRA Legal Counsel, Tom Bray was present to update the Commissioners on the status of the RTC Master Declaration/Association. She reported that an informal meeting had been held and since then, there has been a meeting with Mr. Deal's attorney. She called on Mr. Bray. Attorney Bray stated he had met with Ben Halsey, Attorney with the RTC. He stated they compared notes and found areas where there was agreement with the membership and areas where there was not. He referenced a map that was displayed for the HRA this evening. He noted the four parcels identified in blue and stated that in original correspondence, Mr. Deal's position was that these parcels were not owned by RTC at the time of the Master Declaration. Mr. Bray stated that he has since asked for Mr. Deal's position with regard to these four parcels and he has not gotten a response from him yet. Mr. Bray reported that he wanted to check with staff on a couple of parcels. Two will be developed together but will be developed in a way that will be entitled to a membership vote — two parcels have the membership vote — two do not. He explained what qualifies a membership vote. He also described the three categories of membership. He continued that there are four parcels subject to the Master Declaration. The drainage pond does not qualify for membership vote. He noted there is also drainage in the northwest corner. The park is subject to the Master Declaration but not the membership vote. He talked about the RTC 8 9 and 10 Additions and that neither the HRA nor PSD is in control of these additions. Mr. Bray was not aware of any active homeowners associations on these parcels. He stated we have 18 known membership votes which includes six votes on the parcels he is not sure of. The HRA has nine, PSD has three, and PSD LLC & Anchor's Away have one, Symphony at Town Center has one, Gable Manor has one, Gable Terrace has one, Anoka County has one and Allina has one. He referred to the map presented to the HRA and talked about doing title work on parcels. He noted that the four parcels shown in blue on the map were all purchased by Jim Deal or another of Mr. Deal's entities; however, the question remains who owned them at the time of the Master Declaration. Mr. Bray stated he broached Mr. Halsey with the idea that if there is not a full agreement with the membership voting rights, does anyone want this association to remain or should it be terminated. Mr. Halsey will discuss that with Mr. Deal. He added he is not sure Mr. Deal would do anything until he knows what is going on with the Special Services District. The HRA is not in a position to impose a Special Services District. Mr. Bray is waiting for feedback from Mr. Halsey. He stated that we have the complaint drafted to get the declatory judgment — there are significant expenses and there is a lot of title work to be done. Mr. Bray noted a couple of bids were from $12,000 to $16,000 and others were at $20.000. he felt there were some things we could do with cheaper alternatives - Housing and Redevelopment Authority / November 1, 2011 Page 2 of 9