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1 <br />COUNCIL WORK SESSION MAY 23, 1988 <br />A special work session of the Lino Lakes City Council was <br />called to order by Mayor Benson at 6:39 P.M. Council <br />Members present: Bisel, Bohjanen, Reinert. Council Members <br />absent: Neal. City Planner, John Miller; Administrator, <br />Randy Schumacher; Engineer, Ron Stahlberg and <br />Clerk - Treasurer, Marilyn Anderson were also present. <br />Mayor Benson explained the purpose of this work session is <br />to discuss Mr. Arvid Gearman's Rice Lake Estates refinancing <br />of temporary bonds and future development. <br />Mr. Schumacher reviewed his memorandum to the Council dated <br />May 23, 1988 outlining the historical facts on this <br />development, the developer's agreement and recommendations <br />for improving the possibility of completing the subdivision. <br />He told the Council that he has met with Mr. Gearman who <br />feels that there is not the market for manufacturing housing <br />as there was four years ago. He is requesting that this <br />City work out a method whereby he can sell his lots to <br />developers for stick -built homes. <br />Mr. Reinert felt that the problem is not just manufacturing <br />housing but also marketing. He cannot compete with area <br />builders and should have stuck with homes in the $80,000 to <br />$100,000 price range. <br />Mr. Bisel was concerned about protecting the property values <br />of the homes already built. Mr. Reinert was also concerned <br />the other developers would be upset because Mr. Gearman <br />would be allowed to build stick -built homes on sub- <br />standard lots. <br />Mr. Schumacher noted that Mr. Gearman has provided a cash <br />guarantee of $365,000 and there is approximately $200,000 in <br />the fund from prepaid special assessments. His concern is <br />that the temporary bond has to be refinanced this fall. Mr. <br />Gearman has already missed three years payment of taxes and <br />special assessments. Therefore, according to the <br />developer's agreement, the City has the right to start <br />foreclosure procedures. <br />Mr. Reinert asked what price range homes would the stick - <br />built home be. Mr. Schumacher said that they would stay in <br />the higher price range. <br />PAGE 1 <br />053 <br />