HomeMy WebLinkAbout11.06.2000COUNCIL WORK SESSION
November 6, 2000
4:15 p.m.
Council Chambers
Members present: Mayor Rooff, Anders, Jordan, Krizek, Murphy, Gronen, Getty, Berry.
Moved by Getty, seconded by Murphy that the Agenda, as proposed, be approved. Ayes: Six.
Absent: Berry. Motion carried.
Jim McNarney and Jim Ryan, representative from HUD. updated the council on the Prairie Park
Apartments.
Bill McNarney stated that the Prairie Park Apartments will be foreclosed on November 17, 2000
at 10:00 a.m. at the Black Hawk County Courthouse. Mr. McNarney stated that there has been a
lot of interest in the sale. The purchaser will be required to deposit $75,000.00 earnest money
and a $200,000.00 letter of credit on the date of the sale to guarantee repairs. It has been
estimated that it will cost $800,000 to make repairs at the apartment complex, and the buyer will
have 12 months from the date of the sale to make the repairs.
Berry now present at 4:40 p.m.
Councilperson Getty asked if the buyer will be required to meet the city's minimum building code
when making the repairs.
Mr. McNarney stated that the Waterloo Housing Authority is responsible for the Section 8
Voucher applications, and they are currently meeting with the tenants and processing the
vouchers. ,Mr. McNarney stated that on the date of closing, HUD will no longer be responsible
for providing security at Prairie Parks Apartment, and the new owner does not have to provide
security. Mr. McNarney stated that HUD will do background checks of buyers. Mr. McNarney
stated that 46 of the 126 units are currently occupied, and there are no demolition's outlined in
the plan.
Councilperson Jordan asked if a performance bond will be required. Mr. Ryan responded that if
the buyer is unable to perform and HUD can't close on the property, the buyer will forfeit the
$75,000 deposit. The $200,000.00 line of credit can be forfeited if the buyer does not make the
repairs. Mr. Ryan stated that HUD is putting more confidence in the line of credit rather than a
performance bond. Mr. Ryan stated that all 126 units must be brought up to standard. Mr. Ryan
stated that he believes plumbing and electrical must be repaired to city code.
Ethel Washington, Waterloo Housing Authority Executive Director, stated that floors and walls
are in poor condition, and there is a low quality for safety. Ms. Washington commented that the
units rent for $230.00 per month.
Mayor Rooff stated that the Prairie Parks Apartments must be brought to good standards and the
image of the property must change. The city needs to insure that HUD's standards and what the
buyer will do conform with the city's standards, and the complex is safe.
Councilperson Getty stated that he is very concerned that the apartment complex will be sold, and
the city is going to end up where we were five years ago. Councilperson Getty stated he is
amazed the buyer does not have to bring the property up to city code.
Mr. McNarney reviewed the bid document and stated that according to a rider, the buyer must
meet state and city codes within 12 months. Mr. McNarney stated that there is an income
guideline schedule the buyer will have to follow, and they must offer affordable housing for 20
years. Mr. Ryan stated that HUD and the Waterloo Housing Authority has talked with the
tenants and they are aware of the sale.
Mayor Rooff stated that it is important that we insure the tenants that Prairie Parks Apartments is
a decent and safe place to live. Mayor Rooff stated that he is concerned with the security issue.
Council Work Session
November 6, 2000
Page 2
Mr. Ryan stated that the city can contact HUD's property disposition person in Forth Worth for
additional information.
Councilperson Anders stated that he is looking at the sale as an opportunity, not a liability.
Councilperson Anders stated that he thinks this is an opportunity to turn it around and make
something of the complex, and he is looking at this as a positive and a chance to change the image
at Prairie Parks.
Mayor Rooff asked that another work session be scheduled for next week.
With no further business before the council, it was moved by Getty, seconded by Murphy that the
meeting be adjourned at 5:23 p.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk
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