6.1. SR 06-23-2003MEMORANDUM
TO:
Mayor and City Council
FROM:
DATE:
Pat Klaers, City Admi t~t~or
June 23, 2003 ~y
SUBJECT: Transitional Housing Program
Item 6. I.
Mayor I~inzing has been the main contact for the city with the transitional housing program.
Harvest Evangelism, dba, Love Elk River is managing the transitional housing program. This
organization is currently leasing the city single-family home and property directly north of the golf
course. In February and in May 2003, the Mayor provided an update to the Council on the status of
this project. In May the Mayor also asked for Council consideration to allow Love Elk River to use
the Bailey house for the transitional housing program beginning sometime after Labor Day.
At the May 12, 2003, City Council meeting, the Council asked for more information on what the
going rate would be for renting out the Bailey house on the open market. In this regard, I contacted
Mel Beaudry (ReMax) who has done some work with the city in the past and is familiar with the
Bailey House. In fact, in 1997 Mr. Beaudry was involved in helping the city purchase the Faye
Rydmg house that was on the corner (next to the Bailey property) and which is now part of the
library parking lot. Feedback from Mr. Beaudry indicates that assuming all the appliances, heating,
air conditioning, etc. are functioning properly, the house could easily rent for $1000 - $1200, as there
is a high demand for this type of housing. One thing that would need to be evaluated is whether or
not all of the rooms in the basement could be used as bedrooms depending upon the fire code
requirements for exits.
The city receives $300 per month rent for the house north of the golf course. This covers our taxes
but not much else. In general, the city is offering the golf course house at cost in order to assist the
transitional housing program. With the Bailey house we would again have to cover our taxes and we
also would like to obtain slightly more than this base amount in order to cover expenses such as
replacement of the furnace or the air conditioning system. It is impossible to determine how much
above the tax amount would be appropriate until we get into the house to evaluate the systems.
S:~COUNCIL~Pat\2003 ~baileyhouse.doc