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MINUTES <br />CITY COUNCIL <br />DECEMBER 10, 2008 <br />Gardner reported that the building is 30 years old and improvements are <br />necessary. The HIA is method to get a substantial amount of work done <br />and spread the cost over a 20-year period. <br />The Administrator indicated that another option is to utilize a Ramsey <br />County program that would provide funding at a 2% interest rate. To <br />qualify for this financing, 50% of residents would have to meet the income <br />limitations outlined earlier under the assessment deferral discussion. The <br />County would assist in survey residents to determine if the income <br />limitation standard is met. Using this 2% money will leverage down the <br />cost of the debt. <br />One condo owner noted the impact of the economy on her finances, and <br />felt that only improvements that were absolutely necessary should be <br />undertaken. <br />Ralph Kobeska, a condo owner, asked if individuals could purchase these <br />bonds. The City Administrator replied that this might be a possibility, it <br />will depend on whether or not the bonds are sold to an institution. He <br />indicated that he would look into this as an option. <br />Kobeska indicated that he had been on the condo association board for <br />some time, and felt the HIA financing option was a good one. His concern <br />was that there has not yet been an open discussion on the extent of <br />improvements needed. He felt that the board was doing a good job, but <br />felt that there would be additional discussions at which pros and cons are <br />discussed with the condo ownership. Kobeska felt one of the biggest <br />problems was anover-reliance on the board and the need for more <br />participation in this process by condo ownership. <br />The Administrator indicated that each condo association has been <br />approaching this process differently. He indicated that if the consensus is <br />that more meetings of ownership are needed, that is fine. The City does <br />not need to act on the HIA ordinance this evening. The Administrator <br />pointed out, however, that the longer the decision is delayed, the more <br />difficult it will be to coordinate the various condo projects to generate <br />savings in the issuance of bonds. The Administrator pointed out that once <br />the ordinance is adopted, the ownership has 45 days within which to <br />submit a petition signed by 35% of the ownership vetoing the HIA. <br />One owner asked why property owners cannot pay for work as it is being <br />done similar to the way other improvements have been handled at the <br />complex. Blesener noted that property owners will have 30 days from the <br />date fees are adopted to pay these fees without interest being incurred. <br />The City Administrator noted that some of the condo associations have no <br />