HomeMy WebLinkAbout1990-11-05 HRA Regular Meeting MINUTES
• EDINA HOUSING AND REDEVELOPMENT AUTHORITY
NOVEMBER 5, 1990
Answering rollcall were Commissioners Kelly, Paulus, Rice, Smith and Chairman
Richards.
MINUTES of the HRA Meeting of October 15, 1990, were approved as submitted by
motion of Commissioner Smith, seconded by Commissioner Kelly.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
AWARD OF BID FOR CENTENNIAL LAKES PARR - SITE FURNISHINGS CONTINUED TO 11119190
Commissioner Smith moved to continue award of bid for Centennial Lakes Park - Site
Furnishings to November 19, 1990. Motion was seconded by Commissioner Rice.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
BID AWARDED FOR CENTENNIAL LAKES PHASE IV - HOUSING PUBLIC IMPROVEMENTS
Commissioner Smith moved to award the following bids for Centennial Lakes Phase
IV, Stage I of the Residential Amenities for buildings 4, 5 and 6:
Walkway R.W. Compton, Inc. (low bidder) $11,880.00
Fountain Olympic Pools, Inc. (sole bidder) 8,675.00
Utilities Brown & Cris, Inc. 42,889.00
Landscaping Minnesota Valley Landscape, Inc. 52,489.50
Electrical Master Electric, Inc. 16,579.00
Motion was seconded by Commissioner Rice.
Ayes: Kelly, Paulus, Rice, Smith, Richards
• Motion carried.
REPORT GIVEN ON EAST EDINA HOUSING FOUNDATION ACTION REGARDING SECOND MORTGAGES ON
CENTENNIAL LAKES CONDOMINIUMS Executive Director Gordon Hughes referred to a
letter dated October 31, 1990 from Thomas S. Erickson, counsel, to the HRA
Commissioners regarding the Centennial Lakes Condominiums. Specifically, the
letter noted that certain requirements are imposed by the Redevelopment Contract
on how much of a second mortgage can be given to any buyer. One of those
requirements states that no second mortgage shall be given for any unit which has
a gross sales price of over $90,000. This restriction was requested by the
Developer for the purpose of giving concrete and objective guidelines as to the
use of second mortgage funds.
At a meeting with the Foundation Board of Directors on October 29, 1990, the
Developer requested relief from the $90,000 cap on sale prices for two reasons:
1) Centennial Lakes Condominiums have fourteen different floor plans to choose
from and the cap would restrict the ability of a buyer to choose among the plans.
2) The cost of construction of the units has gone up and relief from the cap would
take into account price increases.
The Foundation Board agreed to the removal of the $90,000 restriction because
(i) it was not' imposed nor found to be needed at Edinborough and was imposed at
Centennial Lakes at the request of the developer who now requests relief
therefrom, (ii) the requirement still exists that second mortgage funds go only to
Moderate Income Purchasers, (iii) the requirement still exists that 80% of all
units in each condominium development be sold to Moderate Income Purchasers,
(iv) therefore, the main result from removing the $90,000 cap would be to allow
• Moderate Income Purchasers to have a greater range of floor plans from which to
choose and to allow some sales to be made which otherwise would not be made.
H.R.A. Minutes - 11/5/90
Page 2
The Board also decided to impose a new restriction which would prohibit the giving
• of any second mortgages to any buyer or buyers whose adjusted gross income exceeds
90% of the Median Family Income. The Board imposed that limitation to insure that
the second mortgage funds would be made available only to those who could use it
most. The Developer agreed to this new limitation.
Director Hughes concluded that there is no action the HRA needs to take relative
to the Board's action and that the report was to advise the Commissioners of the
removal of the cap.
There being no further business on the HRA Agenda, motion of Commissioner Smith
for adjournment was seconded by Commissioner Rice.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
ExecueivLV ector
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