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KNOLLWOOD GREEN CONDOMINIUM ASSOCIATION 3300 Edinborough Way#202 Edina,MN 55435 Tel: (612)831-8325 Fax:(612)896-1192 April 19, 1999 To: Mounds View City Council From: Knollwood Green Condominium Association,Property Manager Dear Council Members: Allow me to introduce myself. My name is Steve Sis and I am the Property Manager for Knollwood Green Condominiums located at 2900-2974 Highway 10 NE in Mounds View. The company that I work for(Laukka Management)has been managing Knollwood Green since 1996. Knollwood Green is a not for profit Condominium Association. The Association was formed in 1984 and is made up of 32 units. Over the past 3 years we have taken great strides to update and enhance the common areas of this association. I have worked with the Board of Directors to created a reserve schedule for the next 15 years. (see enclosed copy) This reserve schedule has been updated yearly and contains all of the items that we feel should be replaced in the next 15 years. The exterior of our building is Masonite siding that requires painting every six years, at a cost of $25,000 every time our buildings need a fresh coat of paint. We estimate that in the next 15 years we would spend $60,000 on painting the siding and the trim. This is a conservative figure because it is difficult to predict the cost of inflation on goods and services and repairs so far out. This year we have sought out a loan from our bank to try to finance a maintenance free siding project for all of our homes, so we can eliminate most of the painting that is currently being done. Unfortunately,the bank denied the loan because the association does not have enough collateral for the $100,000.00 loan that would be necessary to implement this re-siding project. At our annual meeting March 20, 1999 we discussed the possibility of assessing every unit in the association$2,700.00 to help pay for this large one time expense. The consensus at the meeting was our owners just didn't have that kind of money for a large payment. Many of our residents are elderly and on fixed incomes, or are single income households. I have done some research and found another homeowners association in Plymouth that was aided by the city under Minnesota State Statute for Housing Improvement Areas 428A.13. The Board of Directors would like to ask the council to help us with this redevelopment project by cosigning a loan. The loan amount that the Association is now requesting would include the detached garages for a total of $124,000.00. So that this association can move forward with a project that will enhance the appearance of their homes and create a more desirable property along Highway 10. We would also like to look at what we can do as an Association to help with the Highway 10 Improvement Project.