09-10-08 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SEPTEMBER 10, 2008 Allan asked how the association would pay for the elevator repairs that are mandated for 2012 if the HIA is not created. Valento indicated that the repairs would have to be done and the cost divided among the units. Blesener noted that property owners could obtain home equity loans to pay off any HIA fee, so that interest would be tax deductible. Valento agreed. Valento urged the Council to pass the HIA ordinance. He noted that once the ordinance is passed, condominium owners have the opportunity to determine if there are 35% of the owners opposed to the creation of the HIA. If so, the project will not move forward. Valento indicated that before the homeowners' association moved forward with incurring project design costs, they want to determine whether there are 35% of the owners against the project. Valento felt the HIA was the mechanism that would allow the building to be repaired. He noted that the fees would not go against property taxes until 2010. If more fees are collected than necessary to cover project costs, the excess will go into the association's reserve fund. Valento again noted the need to replace the roof in a few years. One property owner asked how Finn the $15,000 fee estimate was and asked if that number would increase to $20,000. Valento pointed out the estimate of project costs that was sent to condo owners. He indicated that this cost estimate would not be exceeded. Another condo owner asked if payments would begin before or after the work is done. The City Administrator replied that this will be a design and build project. If the HIA is created and the improvements move forward, a fee hearing would be held in late winter or early spring. Condo owners would get notice of that hearing. If fees are approved, owners would have 30 days to pay in part or full. After that 30 day period expires, the fee balances would be sent to Ramsey County for collection with property taxes. Valento indicated that it would be his hope that bonds would be sold in March to cover the cost of the project. He indicated that the bond market is typically most favorable at that time. Gary Bruno indicated that the work as proposed does not need to be done. He indicated that he has talked to someone who has insurance coverage for mold. This property owner suggested that the homeowners' association raise association dues by 25% pointing out that this would generate additional revenue of about $200,000 per year. The additional money could be put into a special fund for repairs. Bruno indicated that without the repairs, the building will not fall down within the next year. 5