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071690 CC WS Min CITY OF SHOREWOOD COUNCIL STUDY SESSION MINUTES, JULY 16, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 1 . M I NUT E S CALL TO ORDER Mayor Haugen called the Council Study Session to order at 7:30 P.M. ROLL CALL Present: Mayor Haugen, Councilmembers Gagne, Stover, Brancel Administrator Whittaker, Planner Nielsen, Dick Hanson, Real Life Development, Frank Reese. Absent: Councilmember Watten. AGENDA REVIEW Gagne moved, Stover additions: 1. Item * 2. Item * 3. Item * 4. Item * seconded, to approve the Agenda with the following 6 - Bishop Option. 7 - Almquist, Shady Hills, 7A - Joint Prosecutor. 8 - Adjournment. drainage problem. . Real Life Development Proposal for Elderly Housing . Mr. Hanson asked Councilmember Gagne how he had heard of his company. Mr. Gagne said he had talked to the City of Waseca and was told of their elderly housing project and he knew of Real Life1s work at 7500 York Ave. So. Edina, Mn. Hanson explained that he had worked for the Housing Authority for 14 years before starting Real Life. Real Life worked with the Ebenezer Society on many types of elderly housing: life care, rental, condominiums, endowments. They had finally decided that cooperative housing was the best and most affordable. Now Real Life only developes cooperatives on it's own. Their program is run through the HUD 213 program, established in 1939, which insures the mortgages for 40 years if the project is 100% pre- sold. The mortgages are for 40 years. The buildings are owned and managed by the residents, through a cooperative, with professional managers hired by the Board of Directors. The most successful, projects have common areas for socializing and hobbies. Councilmember Stover asked if there must be a non-profit sponsor for the project. Hanson said this was a HUD requirement. She also asked what age range the buildings attracted. Hanson said 74 was the average with 62 years as a minimum. Administrator Whittaker asked if they had health care and dining. Hanson stated that all of their buildings had food programs. Health care was part of the program, but not acute care. Stover stated that the Council had been told that the buildings must be located close to transportation and a shopping center. Hanson said this was not true. Many elderly still drive and transportation is provided through the cooperative. Gagne asked if the 55-62 age group is included in his buildings. Hanson indicated that they had a 62 year minimum. . . . CITY OF SHOREWOOD COUNCIL STUDY SESSION MINUTES, JULY 16, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 2 Planner Nielsen asked how they could afford these services for small projects? Are they volunteer? Hanson explained that the income comes from two sources: shares that are sold in the building and the monthly mortgage and dues paYments. The Administrator of the Building is paid. They have many volunteer people but they also have a paid staff. Nielsen asked if the Board of Directors decides what services will be offered in the building. Hanson explained that they do and there are certain minimum services: 1. Food 2. Common Rooms 3. Kitchen 4. Exercise room 5. Craft room 80% of the income comes from the residents. Hanson reiterated that the housing must be affordable. The Council needs to identify a need and desire in the residents of Shorewood for elderly housing before the project is started. The whole community needs to be involved, so that there can be mutual assistance. The building site should be at least two acres with no northern exposure. Their buildings are S shaped. The apartments are 1-2 bedrooms and from 600-700 sq. ft. to 1600 sq. ft. There are guest rooms in the buildings for visitors. Efficiency apartments are not popular. The buildings are 1 story, because this is most affordable and manageable for residents. A one story building costs $29-30 a sq. ft. but a two story can be double that. Whittaker asked how long the project should take. Hanson said about one year. Hanson indicated that HUD would not allow him to start a project in the Shorewood area due to the abundance of projects in the Metropolitan area. Nielsen inquired about the requirements of the Fair Housing Act. Hanson said that since they build for HUD and they provide the services for their residents, they can limit the age range to 62 and older. They will adapt an apartment for handicapped residents but a deposit of $3000.00 must be made, so that the apartment can be returned to the standard condition after the resident moves out. Gagne asked how we start. Hanson said to pick a site and a plan. Then show this to the community. Do mailings to determine need. Whittaker asked if Real Life was the coordinator from the beginning and how they are paid. Hanson said they are paid by the project and would help in the coordination. He said he would be interested in building in the Shorewood area, if HUD would allow it. Nielsen asked if it was hard to pre-sell these units. Hanson said they only required a $10,000.00 to $20,000.00 investment. A 32 unit building is the most economical. They need city water. FRANK REESE PROPOSAL FOR ELDERLY HOUSING Frank Reese is an architect, resident of Shorewood and formerly a member of the Shorewood Planning Commission. ..:.\ . . . CITY OF SHOREWOOD COUNCIL STUDY SESSION MINUTES. JULY 16. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 3 He stated that he had done a lot of elderly housing projects. The one story or "cottage" design is being built by John ArkeL in Stillwater. and Mike Wiley. in Champlin. He said that. right now. financing is hard to obtain. TIF may be used. Chanhassen is in the process of getting commitments and planning elderly housing. Judith A. Marshik does market studies for Municipalities on elderly housing. Gagne asked if this was feasible in Shorewood. Reese said that a 32 unit building would work. He strongly recommended rental units. He felt that elderly buildings did not hold their resale value. Reese emphasized that the buildings must reflect a variety of income levels to make the development economically feasible. HUD will underwrite a City's bonds for this type of development. However, if they provide the financing. they get much more involved. Council said they did not want the City to own the building. Whittaker asked if the City can be assured the building will remain elderly. Reese said you cannot be assured. Nielsen asked, if the City puts up the land. can the conditions be different? Reese said yes. Gagne asked what should the City look at? Is the need there? Reese said he thought the need was there because people are moving away. Stover and Gagne felt that the "cottage" type of building should have separate entrances for each resident. Nielsen stated that the common thread of the two discussions was that a market study needs to be done first. Can we use CDBG money? A market study by Ms. Marshik could cost $4000.00 to $5000.00. Whittaker said he would check into this. Reese stated that the Council must show a willingness to follow through on the project when they get the study. Gagne asked Reese if he was volunteering to help. He said yes. Haugen questioned if there was a conflict of interest or if Reese could be locking himself out of bidding for the project. Whittaker asked what his normal role was. Reese indicated that he is an architect and on the payroll of one developer but he didn't feel this would present a problem. It was decided that Gagne. Haugen and Whittaker would meet with Ms. Marshik and report back to the full Council. COUNTY HOUSING AUTHORITY OPTION FOR ELDERLY HOUSING Whittaker said that Hennepin County can help the City with a financing package. They are the facilitator. He felt they should check all options for Elderly Housing. Gagne and Stover felt there were usually too many conditions attached to Hennepin County's assistance. JOINT CITY COUNCIL/PARK COMMISSION MEETING. The date for the joint meeting was set for Tuesday. August 14. 1990 at 7:00 P.M. ~. . . . . . CITY OF SHOREWOOD COUNCIL STUDY SESSION MINUTES. JULY 16. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 4 BISHOP OPTION Mayor Haugen said she had taken the Planning Commission report to Mr. Bishop personally. His wife and son John were with him. Mr. Bishop had a number of complaints about the City staff and policies. Haugen asked why he had stated that his property was not for sale but could be bought. He said anything could be bought. Gagne and Brancel felt the City should forget about Bishop's property and just buy the Cross property. Nielsen said the City could make do with the Cross property but would not have room for future use and they may not be able to buffer the property adequately. Stover felt Bishop might sell in the future because the value of his land would deteriorate with a Public Works Department next to him. Whittaker felt there were many ways the purchase could be accomplished: 1. Get a right of first refusal. 2. Buy just the rear of property. 3. Give Mr. Bishop a 5 year tenancy or even life tenancy. 4. Maybe just a different price. Stover felt the minutes should reflect that if the property should come up for sale in the future the Council should purchase it. Stover and Haugen felt there should be one more offer made. Gagne and Brancel said no. Whittaker said the last letter to Bishop stated that the City would pay for an independent appraisal. Gagne agreed they should have one more appraisal and one more offer. He also felt the first offer of $200,000.00 was too low. Stover felt the City should approve the appraiser Bishop chooses. Haugen said she would call John Bishop. The Council agreed that they would not condemn the Bishop property. ALMQUIST - SHADY HILLS DRAINAGE PROBLEM Whittaker said the City Engineer had studied the problem and found there were more problems than first thought. The drainage pipe into Almquist's property is 25 years old and made of corrugated metal. which is rusted. A new pipe and catch basin will have to be installed at a cost of $24.000 to $25.000. The City did not install the original pipe. It was probably installed by the developer of Shady Hills There is no easement on the plat. The City cannot afford to repair this with the General Fund. A special taxing district could be used. Haugen asked if the City could install a pipe within the old pipe. Whittaker will ask the City Engineer. Gagne asked if we had fixed anything at that site in the past. Haugen said the City installed curbs and cleaned the pipe. Whittaker said they will not proceed with repairs until a final estimate is proposed and the easement confirmed. Gagne asked Whittaker to call Rev. Almquist. Gagne said at some time the City will have to start repairing drainage problems. Whittaker said the City had not been part of this development. ~ . . . CITY OF SHOREWOOD COUNCIL STUDY SESSION MINUTES, JULY 16, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 5 JOINT PROSECUTOR Gagne said he had heard that the City was not a prompt in their prosecutions. Haugen and Whittaker indicated that the problem had been solved. There would be no need at this time for a joint prosecutor. LIQUOR STORE Stover said the Shorewood Liquor Store had been burglarized. No money was taken. Whittaker said he received a copy of a report from Police Chief Rick Young on what to do to the liquor store to prevent this in the future. ADJOURNMENT Brancel moved, Gagne seconded to adjournment the Study Session at 10:35 P.M. RESPECTFULLY SUBMITTED, Katie Snyder Recording Secretary ADMINISTRATOR/CLERK LAURENCE E. WHITTAKER c::- . I