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Mr. Roush said there are industry professionals capable of determining fair market rent given a mobile home's location, age, and park features and amenities. Vice -Mayor Cook Kallio recalled reading that fair market value would be determined by the property owner. Mr. Roush stated that fair market value for the lots and fair market rents for the units would be established by the property owner. Vice -Mayor Cook Kallio questioned if there is an industry standard such as that used by a real estate appraiser to establish a value that lenders would agree with, and Mr. Roush said there was not. Vice -Mayor Cook Kallio voiced concern that those who do not qualify as low- income households would be subject to rent increases of 20% annually for 5 years. She asked if they could be reevaluated in the event that their financial situation changed. Mr. Roush said that would be implicit. Vice -Mayor Cook Kallio voiced her struggle with the uncertainty, acknowledged that the property owner could not fairly estimate land value 10 years from now, yet the Council is being asked to make a decision today. She acknowledged the potential benefits to residents as well as their hesitance and said it feels incompatible. Councilmember McGovern said it is nonsensical to ask agencies to approve an action that will not occur for 10 years and she asked if there are examples of similar instances. Mr. Roush explained that most conversions of his knowledge have moved forward in a relatively short period of time. He explained that, as indicated previously, the property owner is doing this for the long -term purpose of estate planning. Vice -Mayor Cook Kallio acknowledged the rights of the property owner to sell his property as well as the desire to create an estate. Her concern is for the general uncertainty and asked if the Housing Commission could provide assistance on the affordability concerns. Mr. Roush confirmed that the Commission is tasked with providing the Council advice on housing related issues and that option (i.e., referring the matter to the Housing Commission) has been provided to the Council. Councilmember McGovern doubted the Housing Commission could realistically determine what will be affordable in 10 years. The cost of mobile homes can be as high as $300,000 and when combined with $120,000 to $200,000 for the land, the cost is no longer affordable for many people. Vice -Mayor Cook Kallio noted that HOA fees would be added to that, as well. She said there seems to be a lack of direction in terms of the law and that in the absence of regulations that real property is subject to, the rights of park residents are compromised. Mayor Hosterman opened the public hearing. Aimee Ann Vickers asked the Council not to approve the appeal. The property owner is demanding roughly $200,000 per lot, an amount most of them do not have and will be too old to secure by the City Council Minutes Page 5 of 11 August 18, 2009