Minutes of the Old Ski Hill Consensus Committee 8/14/2000
In attendance: Vicki Wenz, George Wilkes, Bob Fenwick, Annie Debevec, Phyllis Anderson, Bill Hansen. Guests: Joe Riesing, Karen Blackburn, Erik Hoekstra.
Meeting convened at 7:10 PM at the Arrowhead Center for the Arts conference room..
Consensus was reached on approval of the 7/31 minutes.
Karen Blackburn presented her experience with developing affordable housing, both in her former capacity as the EDA Director and her current work with the Sawtooth Foothills (Old Mink Ranch) project in Lutsen.
Karen stated the basic problem that up front costs of building a house in Cook County exceeds the capacity of many people to buy that house. Higher than average costs of land, septic systems, land preparation and labor all contribute to the gap.
Karen also noted that affordable housing meets resistance in the community, for a variety of reasons, including fear fo "project" style housing, and a resentment that others receive help that earlier buyers didn't receive.
Most affordable housing programs have income requirements. In Cook County, many people's income is too high to qualify for a subsidy, but too low to afford market rate housing.
The IRRRB has a program that contributes to infrastructure costs, but is payable only when the home is completed.
There is low cost construction financing is available at a rate of about 3%.
$129,000 is about the minimum cost of a new home in Cook County.
Erik Hoekstra presented information on federal tas credits for affordable housing.
The credit is for housing put into rental for a minimum of fifteen years and pays up to 20% of the cost of the project. 20% of the housing in any development must be rented to people at less than 50% of median income or 40% of the housing must be rented to people with less than 60% of the median income. Median income for Cook County's region is $44,300/year.
There is a limited pot of federal money, but a preference is given to rural areas.
More information is available at WWW.MFHA.STATE.MN.US
The committee thanked Karen and Erik for their time and information.
Discussion ensued concerning the possible conversion of the Business Development Area to an affordable housing site. Vicki reported that lots just east of the BDA are selling for $20 - $25,000 with city water and sewer.
Questions were raised about the possibility of multiple family rental housing, how housing would enhance winter business, and what is being done currently by resorts for employee housing.
Meeting ajourned at 9 PM.
Next meeting Ausust 28th at 7 PM at the Arrowhead Center for the Arts Conference room.
Respectfully,
Bill Hansen