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MINUTES <br /> • OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY <br /> AUGUST 19, 1991 <br /> ROLLCALL Answering rollcall were Commissioners Kelly, Paulus, Rice, Smith and <br /> Richards. <br /> CONSENT AGENDA ITEMS ADOPTED Motion was made by Commissioner Smith and was <br /> seconded by Commissioner Rice to adopt the BRA Consent Agenda items as <br /> presented. <br /> Rollcall: <br /> Ayes: Kelly, Paulus, Rice, Smith, Richards <br /> Motion carried. <br /> *MINUTES OF THE MEETING OF AUGUST 5. 1991, APPROVED Motion was made by <br /> Commissioner Smith and was seconded by Commissioner Rice to approve the HRA <br /> Minutes of August 5, 1991. <br /> Motion carried on rollcall vote, five ayes. <br /> RESOLUTION ADOPTED CONVEYING PHASES V AND VI - CENTENNIAL LAKES CONDOMINIUMS <br /> Presentation by HRA Director <br /> Executive Director Hughes explained that on September 5, 1989, the Centennial <br /> Lakes condominium developer, Laukka Development, appeared before the HRA to <br /> discuss the conveyance of the Phase IV condominium property. The matter now <br /> before the Council is almost exactly the same, only Phase V will introduce <br /> more of a market-rate condominium element into the project, rather than a low <br /> • or moderately priced unit as with Phases I through IV. Assuming that the HRA <br /> is of the same opinion as two years ago, which was that the introduction of a <br /> higher priced product made sense from both a market and development <br /> standpoint, the issue again is to what extent should the HRA be involved <br /> financially in the development. <br /> In the first four buildings, the HRA participated by providing $650,000 of <br /> direct unrecoverable write-down to the project. The HRA contributed an <br /> additional $200,000 per phase to form the second mortgage pool used to assist <br /> purchasers who otherwise could not afford the units. For Phase V Laukka <br /> Development has requested permission to build a 28 unit market rate <br /> development. The average floor area of each unit is proposed to be <br /> approximately 1700 square feet, with an average sale price of $177,000. <br /> Phases I and II are 46 unit, non-elevator buildings and Phases III and IV are <br /> 42 unit buildings with elevators. Laukka Development has requested the HRA <br /> provide an unrecoverable subsidy towards Phase V of $450,000, which is <br /> $200,000 less than was provided for the first four buildings. However, it is <br /> $200,000 more than was approved by the HRA when it considered this in <br /> September 1989. <br /> In reviewing Laukka Development's request for Phase V, the HRA may wish to <br /> consider the following, both pro and con: <br /> 1. Phase V would be identical in exterior appearance to previous phases. <br /> Therefore, the floor plans for Phase V must be substantially modified to <br /> accommodate the redesign. Laukka Development submits that this is expensive <br /> and will increase cost which cannot be fully recovered in the unit selling <br /> • price. <br />