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City did have a Housing Committee that recently completed their work, and they do have a <br />number o f projects in the future. There will be the redevelopment of many neighborhoods and <br />the opportunity lot' infill, as well as the possibility of houses that have the opportunity to move <br />into those infill areas. He thinks they will be seeing an accelerated process of this type of <br />redevelopment. This will not likely occur for a few years, but the HRA should be put in motion. <br />He would propose that the Council adopt and become the HRA, just as the Council served as the <br />EDA, even though the City had an EDC. He would suggest the authority of the HRA be retained <br />by the Council for a number of years prior to the creation of an independent committee with <br />representatives fi'om the Council. <br /> <br />Councihnember Zimmerman inquired what kind of money would be available in grants. <br /> <br />City Administrator Norman replied the City would be more eligible for CDBG grants, as well as <br />I-IUD and MFHA. <br /> <br />Councihncmber Zimmerman questioned what the benefit of an HRA would be to the City. <br /> <br />City Administrator Norman explained an HRA would offer fiscal self-sufficiency, greater <br />efficiency, and flexibility. He noted there are neighborhoods that were built in the 70's with <br />ghost platting. The houses were built on one side of the lot in anticipation of sewer and water <br />coming in fi'ont of their house. Too many years went by and it would now be difficult to build a <br />house because a 2004 new house amidst mid 80's houses would not reflect the appropriate value <br />due to the surrounding houses. However, because of redevelopment, rather than moving the <br />house out o f town they could retain those houses and have a good neighborhood of 1970 style <br />housing. This would take coordination by an agency, and the City would have to be involved in <br />at project like that. This could occur as early as five years from now, and this might be the time <br />to start studying. <br /> <br />Mayor Gamec inquired about the HRA levy that was done last year. <br /> <br />Finance Officcr Lund replied $200,000 was levied. <br /> <br />Counci hnembcr Strommen questioned why the Council would not complete the planning process <br />ol' areas that do not have sewer and water prior to taking this action. <br /> <br />Mayor Gamcc stated if they look at some areas in the City where they may have to do restoration <br />or redevelopment, they will not have the monies to do it if they start late. However, if they start <br />building the fimds slowly they would not have to levy such a large amount. <br /> <br />Counci hncmbcr glvig commented the HRA would be a commission under the City Council that <br />could be part oF tho planning process. <br /> <br />City Administrator Norman explained he is proposing rather than an appointing process, the <br />f-tRA be retained by the Council until it is on its way. <br /> <br />City Council Work Session/April 13, 2004 <br /> Page 4 of 6 <br /> <br /> <br />