09-10-96 WSWork S~ston Minutes
September 10,1996
A City Council v~rork session was held on Tuesday, September 10,1996 in the
Raspberry Room at Hopkins City Hall. Present were Mayor Redepenning and
Council members Gene Maxwell, Fran Hesch, Karen Jensen, and Diane
Johnson. Also present Were City Manager Steve Mielke, Jim Kerrigan, and
Karsten Eiverum. '
The meeting was called to order at 8 p.m. by Mayor Redepenning. The first item
of business was a discussion about the Westbrooke Patio Homes proposal to
create a special service district. In attendance far Westbrooke Were Doug
Strandness, a financial advisor, Wayne Vasilles, general manager of the
association; Dave Fischer, president of the association; and John Carr, a
resident and former board member. Doug Strandness r~iew~eci with the Council
their proposal for making impro~rements to the townhome area. He indicated
that they wanted to do $2 million worth of Work on roofs and soffits, among other
improvements in 1997, and then Dome back with a second $1.5 million to $1.75
million project in 1999 that Would be siding, roadways, and sidewalks. This work
would be done under a bond issue given by the City and paid off by fees against
each of the properties in the association. The first bond issue for $2 million
would equal $6,100 per unit. He indicated that they would be doing a prototype
improvement this fall on one of the buildings to show residents of the association
what the improvements would look like ff the entire association area was
.completed. He indicated that there are 41 buildings, 35 of which have had leaks
and'are in need of repair. There are cumarrtly three buildings with new roofs..
He estimated that it would ba $55 per unit per month with an 18 year bond issue.
He informed the Council that the units are currently only 20 percent rental, which
is significantly less rental than even two or three years ago. He stated that the
association wanted to start the process which would include gathering petition
signatures and presenting those to the Council in December, letting bonds in
January or February, and having oonstruc:tion on the roofing project start in April.
He indicted that a 10 peroant reserve Would be established, which would be
used as an incentive to do the Phase II improvements. It would be used to pay
delinquent fees should someone not pay, and also be used ~ a penalty if no
financial plan was kept up and completed to prevent future long term
mainfienance problems. • In order to meet FHA eligibility, he indicated that the
toMmhomes would be converted to condominiums.
After some discussion, the Council indicated a consensus that they Were in favor
of Working with Westbrooke on this proposed project.
The second item of discussion was the Oaks of Mainstreet. Mr. Terry Troy and
Keith Jans, and Dan Wilson, relocation consultant for the project, Were in
woe~.eedon m 9~o~a
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attendance for the developers. Jim Ken~gan began the discussion by indicating
that the staff and developers were working to close a $340,000 projected gap in
the required $600,000 reserve. He indicated that given those discussions, the
gap was, for all intents and 'purposes, filled with proposed concessions from both
sides. Mr. Try then displayed a computer generated 3D program showing haw
virtual reality marketing could be used ~ help sell these tawnhomes. A demon-
stration was given on the virtual reality mariceting'technique. i4 discussion was
held on the issue of condominiums versus townhouse construction. Mr. Tray
indicated that the townhouses would actually be oonstnx~ed as condominiums
and that he still intended to do two hour construction between the walls, but
wanted to lower costs on the pnojec~ by having single water connections to each
building, rather than a single service to each unit. Mr. Troy indicated that he
would gather infornnation to show that the impact of the decision to go to
condominium oonstruc:tion would not affect market value negatively. A discus-
sion was then held on the timing of the project, and it was pr+ojec~ed that a
special meeting on September 24 may be necessary in order to sell bonds and
complete the project. ff not, efforts would be made to close the project on
October 1. S#aff indicated that prior to receiving staff approval, all documents
would have to be in and approved and a new financial review completed to
assure the Council that the estimates for the project were, in actuality, met.
A motion was~made ~ Fran Hesch, seconded by Gene Maxwell, to dose the
meeting. The meeting was adjourned at 10 p.m.
~ST.
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