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Memo Work Session - Westrbooke Patio Homes• To: Honorable Mayor Redepenning and Hopkins City Council Members From: Kersten Elverum Date: Thursday, September 5, 1996 Subject: Work session discussion on Westbrooke Patio Homes The September 10, 1996 work session will partly focus on the Westbrooke Patio Homes and their proposed roof replacement project. Attached is the agenda for that discussion. The Patio Home homeowners have indicated a desire for City assistance in the project through the creation of a residential service district and subsequent financing. The cost of the roof replacement project is approximately $2 million. Residential service district financing involves the City selling taxable General Obligation Bonds which are paid back through a fee included on the owner's property • tax statement. In order to use this type of financing, a minimum of 25% of the owners in the association must petition the City to create the district and set the fees. After receipt of the petitions, the City must conduct public hearings on the proposed district and fees. The owners are then given the opportunity to veto the creation of the district and the fees if objected to by a minimum of 35% of the owners. This financing was first used for the Meadow Creek Condominium Association in 1995. The association is proposing to complete all the necessary improvements in two phases; the first addressing the roofs and the second phase replacing the siding and making interior road repairs. In order to assure that the second phase is completed, staff is recommending that a reserve be established as part of the project. This reserve would serve as a penalty if phase two was not completed. There are a number of issues relating to this project which need to be discussed including the two -phase approach, the affordability of the project, and specifics of the development agreement. Staff and representatives of the Patio Homes will be at the work session to discuss the specifics of the project. If you have any questions, please call me at 939 -1395. • Hopkins City Council Work Session - Westbrooke Patio Homes September 10, 1996 Agenda I. Explanation of Residential Service District Financing II. Overview of proposed project - Westbrooke Patio Homes o Scope of work and costs (Phase I & II) o Homeowner involvement o Alternatives to City financing III. Issues regarding project o Affordability/Federal Home Loan Bank Application o Staff recommendations regarding financing o FHA eligibility o Other IV. Timeline for Project V. Questions