08-26-2015 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL AUGUST 26, 2015 security to complete the work and bring the structure up to Code. The City Administrator noted that the Housing Resource Center has worked with the City in the past on the rehab of a property on County Road B-2. The Administrator indicated that the Housing Resource Center has inspected 2955/2957 Arcade Street and has submitted a workscope and cost estimates for the work. Based on this information and Board discussion, the Administrator indicated that he has put together a proposed Development Agreement to address the rehab. Mr. Berres just received a copy of the proposed agreement today. The Administrator then reviewed the key components of the proposed agreement. They include the cost estimates for the project as well as a deposit calculation that also includes 10% contingency fee, the Housing Resource Center fee to manage the project, and a cost associated with the owner's materials. The Administrator noted that the total of those estimates is $87,770, and it was his recommendation that an escrow account be established for the rehab project to ensure that the dollars are available and that the contractors are paid for their work. The Administrator noted that with a rehab project it would not be unusual to have other code compliance issues identified as part of the inspection process. Therefore, he felt that the 10% contingency factor was necessary, and noted that City projects typically have a much higher contingency. The Administrator reported that he has discussed the agreement with Mr. Berres today, and he does not want the rehab project managed by the Housing Resource Center. The Administrator indicated while he was willing to forego his recommendation in that regard, he feels the management of rehab funds through an escrow account was necessary. The Administrator indicated the agreement also provides a period of one hear for project completion. He noted that Mr. Berres has a great incentive to get this project done so that he can begin generating income from rental of one of the duplex units. The Agreement also provides that once the rehab is completed, Mr. Berres will obtain a rental license for the rental unit. The agreement also states that failure to comply with the conditions of the agreement will result in the loss of two-family status for this property. Roger Berres, 2955/2957 Arcade Street, reported that he is in disagreement with several components of the agreement. Berres reported that from the previous meetings it was his understanding that someone would come out and inspect the property, determine a workscope, and put together estimates. This would be used to determine whether or not the $60,000 has he has for the rehab was adequate. Berres stated that since the meetings, other issues have been created that he did not remember 6