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054 <br />COUNCIL WORK SESSION <br />MAY 23, 1988 <br />Mr. Gearman and Mr. Tim Keenan arrived and Mayor Benson <br />updated them on this discussion. Mr. Gearman explained his <br />present situation. He noted that he has now sold three of <br />his models below cost. He felt there was a "stigma" on <br />manufactured homes and told the Council that if he were <br />allowed to build stick -built homes he could sell his lots in <br />large blocks to area contractors. Mr. Reinert explained his <br />concern regarding putting an equal value stick -built home <br />next to the manufactured home. Mr. Gearman said he felt his <br />manufactured homes would not suffer any loss since they do <br />not look like manufactured homes. Mr. Keenan felt that the <br />people there now got a good deal since they bought the home <br />below cost. He felt the present homes would only be <br />devalued if someone brought in a $40,000 manufactured home. <br />Mr. Reinert felt that if a person was offered a stick -built <br />home or an equal valued manufactured home, they would choose <br />the stick -built home. <br />Mayor Benson explained that this City is concerned with the <br />upcoming bond issue and the Council has not had time to <br />review all the problems involved. Mr. Gearman explained <br />that he is willing to donate two lots for park purposes and <br />would guarantee a couple builders will buy lots. Mayor <br />Benson asked if the City does this how will the City deal <br />with other builders who have had to build according to Code. <br />Mr. Miller summarized the matter listing potential problems <br />if Mr. Gearman is allowed to build stick -built homes. He <br />recommended that the City rezone the property to PUD with <br />certain requirements that will protect the property owners <br />who are already there and insure that he will not have a <br />competitive advantage, with langauge regarding minimum lot <br />size, minimum value, extra land or cash for park purposes. <br />This will get the area developed. Mr. Bisel asked how the <br />integrity of the development can be protected. Mr. Miller <br />said this could be spelled out in the PUD plan. <br />Mr. Bisel asked about a time table. Mr. Miller said this <br />would depend on the public hearing but felt probably it <br />would be a least 60 days before it could be in place. Mr. <br />Hawkins said that Mr. Gearman could begin selling lots <br />contigent upon City approval. <br />Mayor Benson said the City would consider this proposal <br />providing that, 1) individual owners in Rice Lake Estates <br />are contacted prior to the public hearing on the rezone, 2) <br />Planner, Administrator and Mr. Gearman draw up the PUD with <br />restrictions (Park Board and P & Z Board to be involved). <br />PAGE 2 <br />1 <br />