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MEMORANDUM <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br />DATE: <br /> <br />Pat Klaers, City Admi t~t~or <br />June 23, 2003 ~y <br /> <br />SUBJECT: Transitional Housing Program <br /> <br />Item 6. I. <br /> <br />Mayor I~inzing has been the main contact for the city with the transitional housing program. <br />Harvest Evangelism, dba, Love Elk River is managing the transitional housing program. This <br />organization is currently leasing the city single-family home and property directly north of the golf <br />course. In February and in May 2003, the Mayor provided an update to the Council on the status of <br />this project. In May the Mayor also asked for Council consideration to allow Love Elk River to use <br />the Bailey house for the transitional housing program beginning sometime after Labor Day. <br /> <br />At the May 12, 2003, City Council meeting, the Council asked for more information on what the <br />going rate would be for renting out the Bailey house on the open market. In this regard, I contacted <br />Mel Beaudry (ReMax) who has done some work with the city in the past and is familiar with the <br />Bailey House. In fact, in 1997 Mr. Beaudry was involved in helping the city purchase the Faye <br />Rydmg house that was on the corner (next to the Bailey property) and which is now part of the <br />library parking lot. Feedback from Mr. Beaudry indicates that assuming all the appliances, heating, <br />air conditioning, etc. are functioning properly, the house could easily rent for $1000 - $1200, as there <br />is a high demand for this type of housing. One thing that would need to be evaluated is whether or <br />not all of the rooms in the basement could be used as bedrooms depending upon the fire code <br />requirements for exits. <br /> <br />The city receives $300 per month rent for the house north of the golf course. This covers our taxes <br />but not much else. In general, the city is offering the golf course house at cost in order to assist the <br />transitional housing program. With the Bailey house we would again have to cover our taxes and we <br />also would like to obtain slightly more than this base amount in order to cover expenses such as <br />replacement of the furnace or the air conditioning system. It is impossible to determine how much <br />above the tax amount would be appropriate until we get into the house to evaluate the systems. <br /> <br />S:~COUNCIL~Pat\2003 ~baileyhouse.doc <br /> <br /> <br />