The Taconite Capital of the World

City of Mountain Iron, Minnesota



Meeting Minutes for April 17, 2001

MOUNTAIN IRON CITY COUNCIL COMMITTEE-OF-THE-WHOLE MEETING

Mayor Brunfelt called the meeting to order at 6:30 p.m.

Present: Mayor Brunfelt, Councilor Matanich, Councilor Prebeg, and Councilor Roskoski. Housing and Redevelopment Authority Members were Nelson, Perpich, Goehring and Soderberg. Also present was City Administrator Craig J. Wainio.

Chairman Nelson explained the purpose of the meeting was to review the situation at the Mountain Manor Housing Complex and receive comment from the City Council.

Carla Schneider of Bowman Properties provided a background to the financial situation with Mountain Manor. They include deficiencies in the reserve account due to the funding needed for ongoing operations. This is happening because of the increase in vacancies of the past decade and there has been no increase in the amount that Rural Development is providing the property. Rural Development has recently been unwilling to grant waivers for the facility. RD is working toward the facility requesting the removal of age restrictions as a way to increase occupancy.

The Council inquired as to the removal of the age restrictions to a lower age. They were informed that the removal would allow anybody that is over 18 years of age and meets the income guidelines. The possibility of regulations including quiet times and selection procedures were discussed as limiting factors that must be reasonably imposed.

Another option discussed was allowing rural Development to foreclose on the facility. The consensus was that foreclosure should be a last resort. It would likely require everybody to leave and place a limit on federal funding for the HRA.

The final option discussed was to have the City provide direct funding to the facility to keep it as is and operational. The consensus of the Council is that they did not want to use taxpayer dollars to subsidize the facility.

Overall, the option of the removal of the age requirements seemed to be the best option available. The HRA would look at having a meeting at Mountain Manor to explain the situation to the current resident. Also the HRA will discuss the issue at their next regularly scheduled meeting.

Mayor Brunfelt adjourned the meeting at 7:40 p.m.

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