06-23-2003 CC MIN - Laserfiche WebLink

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City Council M. inutes Page 3 June 23, 2003 month rent for this house which basically only covers the taxes on the property. Mr. Klaers stated that based on the information he received from Mel Beaudry of Remax, the city could receive anywhere from $1000-$1200 a month rent for this house, providing all appliances, heating, and air conditioning is functioning properly. It was noted that the rooms in the basement would need to be evaluated to see if they meet code for use as bedrooms. Nix. Klaers stated that if this house is leased to Love Elk River, the appropriate rent amount would need to be determined. It was noted that the city would receive substantially less money per month if the city leased the house to Love Elk River rather than renting it out in the market. Mayor IClinzing acknowledged that this is a larger house and would cost more to keep up. Mayor KLinzing indicated that she does not believe that the city should be in the rental property business. Mayor Klinzing stated that if the house is leased to Love Elk River, there is a committee that would govern the house and would take care of everything. Mayor IClinzing noted that the family that is in the house north of the golf course is doing well and hopes to move on by spring so the house will be open to a new family. Councilmember Kuester questioned if Sherburne County currently provides any form of subsidized housing. Mayor Klinzing stated that the county has programs to assist people on a short-term basis but that subsidized housing is handled through the HRA in St. Cloud. Councilmember Kuester stated that she likes the concept of the transitional housing but is not sure she's comfortable with the city performing social service work. Councilmember Dietz questioned if the city rented the house out for the going rate of $1000-$1200, if there would be a high turnover rate because people could purchase a house for that amount. Councilmember Motin stated that he believes that some people prefer to rent a house rather than buy. Councilmember Dietz also questioned if because the city used library funds to purchase the house, if the rent proceeds would go back into the library fund for the future library expansion. Mr. Klaers stated that this is a logical recommendation but it would be the Council's decision. Councilmember Tveite stated that he believes that it would be worth it to receive less money by leasing the property to Love Elk River because they would be the ones dealing with the frustrations of rental property. Councilmember Motin questioned if four to five years for the library expansion to take place was a good estimate. Mr. Klaers stated that it was a good estimate. Councilmember Motin stated that if the time before the expansion was shorter he would support the city allowing the house to be used for transitional housing but since it will be four to five years, he supports the city renting the property. He stated that the city would lose approximately $40,000 over the five years by renting the property to Love Elk River. Councilmember Motin stated that he supports putting the money back into the library fund. MAYOR KLINZING MOVED TO LEASE THE BAILEY HOUSE TO HARVEST EVANGELISM DBA LOVE ELK RIVER FOR ONE YEAR TO BE USED FOR TRANSITIONAL HOUSING WITH A SIMILAR LEASE AGREEMENT TO THE HOUSE NORTH OF THE GOLF COURSE CURRENTLY BEING LEASED BY LOVE ELK RIVER WITH THE RENT AMOUNT TO BE SET BY THE CITY. COUNCILMEMBER TVEITE SECONDED THE MOTION.