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Planning Commission April 28, 2016 Page 2 Gary Sikes, 4410 Rosemary Way Unit #3, approached the podium. Mr. Sikes spoke about the previous developer, Rottlund Homes, who was originally developing these sites. He stated that Rottlund Homes was originally going to form an HOA out of the entire site, however, they only build the one building and then went out of business. He stated that now there are only four homeowners in their HOA and their HOA fees are the highest in Victor Gardens. There is a concern that the HOA may fail. Mr. Sikes believed that the previous development agreement implied that the entire site must be part of one HOA and would either like to be added to Mr. Kettler's newly formed HOA or Mr. Kettler's proposed development be added to the already existing HOA. Juba stated that in all of the Victor Gardens approvals, the City has a condition in the development agreement that they have a HOA. The City does not get involved with how the HOA's are split up for their sub associations. Juba stated that if there is a problem with sub association, the master association is the best resource to use to figure out the situation. Commissioner Patzner asked if the original development agreement had any legal binding for the outlots. Juba stated that the outlots are described as part of the final plat and that they have to be part of an HOA, but the development agreement does not dictate which one. Gary Sikes stated that he doesn't see why they can't all be one association because there are two different style of homes in this proposed development anyways. Steve Cheerhardt, the current owner and partner on this site, approached the podium. He stated that he has always had good communication with the owners in the four -unit building. He described that Mr. Kettler and himself had their attorneys look closely at this issue, because they did want to incorporate their HOA with this new development, but it won't work with this new development. He stated that Mr. Kettler has planned to make a commitment to include the four -unit building in all competitive bidding so they get a better rate on snowplowing, mowing, etc. Mr. Cheerhardt also stated that it is a goal of his to get another four -unit building constructed in the property to the north since the market seems to be coming back for that type of product. Patzner asked how the HOA will work with the two twin home units alongside single family units. Mr. Kettler stated that the HOA will be responsible for anything exterior, including new shingles, siding, driveway sealing, etc. for all units. The interior is the homeowner's responsibility. Mr. Kettler stated that his attorney stated that the HOAs should be kept separate because of the age difference in the construction of the properties. He stated that he is trying to sell these units and a potential resident may have an issue when they are paying their HOA dues and that money is going towards a building that was built ten years ago. Juba stated that the discussion that was occurring sounded like more of a private issue that the City would not normally get involved in. She described that something like this would normally be a discussion between the existing sub association and the master association or could even be a conversation between the existing sub association and the applicant privately. Ted Erkenbrack, 4410 Rosemary Way #2, approached the podium. He stated that he is the president of their association. The association passed a resolution to support the development of lots A and B. He stated that they believed this would assist in those lots developing and therefore, there would be more homes added to the existing HOA. Mr. Erkenbrack said that their dues are the highest of anyone's in the Victor Gardens