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