Jul 23, 2020 Housing Finance Authority

[Call to order at 3:00pm]

[00:00:06]

>> LINDA DEGRANDE. CRAIG HINGES. JAY KALTER.

>> ROBERT MARSHALL. MICHAEL O'DONNELL. MALINDA PEEPLES.

VICTOR RAYMOS. >> CHAIRMAN, IF I COULD PROVIDE EVERYBODY WITH A QUICK REMINDER THAT IF YOU COULD PRESS THE CENTER BUTTON FOR TALKING THERE ON YOUR MICROPHONE WHEN YOU WANT TO SPEAK OR ADDRESS ANYONE HERE IN THE MEETING. ALSO IF YOU COULD LEAN UP AND GET CLOSER TO THE MICROPHONE. AS WE'VE LEARNED THROUGH DOING THESE ZOOM MEETINGS THERE IS A LOT OF DIFFICULTY SOMETIMES PICKING UP WHAT PEOPLE ARE SAYING.

SO JUST A REMINDER. THANK YOU VERY MUCH. >> IT'S 3:00.

DO WE HAVE ENOUGH PEOPLE TO BEGIN THE MEETING? >> YES.

>> OKAY. SHALL WE START WITH THE PLEDGE OF ALLEGIANCE.

PLEDGE ** I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. "HONOR THE TEXAS FLAG; I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE.." I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH I STANDS, ONE NATION, UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL.

OKAY. FIRST ITEM OF BUSINESS IS THERE ANY ADDITIONS OR DELETIONS TO

[Additions/Deletions to Agenda and Approval of Agenda]

THE AGENDA? >> MR. CHAIRMAN, I DID HAVE ONE SUGGESTION THIS AFTERNOON.

I DON'T KNOW MR. MAXWELLS ON THE CONFERENCE CALL. MR. MAXWELL, ARE YOU THERE?

>> I AM HERE. >> OKAY. I WAS GOING TO SUGGEST THAT WE MOVE MR. MAXWELL'S I'M SORRY, HIS PROPERTY ADDRESSING HIS LOAN AFTER THE FINANCIAL REPORT IN THE CORE RESPONSE -- HE TYPICALLY LEAVES THE MEETING TO SAVE Y'ALL SOME MONEY.

IF THERE ARE ANY DISCUSSIONS ABOUT WHAT MR. MAXWELL WOULD LIKE TO DISCUSS THIS AFTERNOON IT WOULD BE HELPFUL TO HAVE MR. MCCONNEL HERE. JUST A SUGGESTION.

>> THAT WOULD BE FINE. CAN I GET A MOTION TO MAKE THAT ADJUSTMENT TO THE AGENDA.

>> ONE MORE ITEM MR. CHAIRMAN. WE DO HAVE A NUMBER OF STAFF MEMBERS THAT ARE SITTING IN THE ROOM RIGHT NOW THERE ARE EXTREMELY STRESSED FOR TIME AT THIS PARTICULAR MOMENT.

I'M NOT HERE TO PRESSURE ANYONE BUT IF WE CAN KEEP THE MEETING TO ABOUT AN HOUR TODAY A NUMBER OF US WOULD FIND IT EXTREMELY HELPFUL. MR. RAYMOS AGREES WITH ME.

THAT IS THE ONLY OTHER ITEM I HAD. >> OKAY.

FINE. I'LL ASK JUST FOR -- A MOVE ON THE AGENDA MR. MAXWELL'S

PRESENTATION. I'M NOT HEARING ANYBODY. >> WE HAD THE FIRST AND SECOND

>> OKAY. I'LL TAKE A VOTE. ALL THOSE IN FAVOR.

AYE. >> OKAY. MOTION CARRIED.

OKAY NEXT ITEM OF BUSINESS ANY PUBLIC COMMENTS? NOT HEARING ANY WE'LL MOVE ON TO

[Financial Report/Bills and Correspondence]

THE FINANCIAL REPORTS AND BILLS AND CORRESPONDENCE. >> HELLO.

I DON'T HAVE THE FINANCIAL REPORT AS OF TODAY. AS WE SPOKE AT THE LAST MEETING I DO NOT HAVE ANY BANK OF AMERICA BANK STATEMENTS SINCE DECEMBER OF 2019.

I JUST HAD A CONVERSATION WITH LINDA DEGRANDE. SHE WILL GO WITH ME OR BY HERSELF TO REQUEST THIS. I WILL CATCH UP THE FINANCIAL STATEMENTS TO YEAR TO DATE.

CURRENTLY THERE IS A APPROXIMATELY $70,076.85 IN THE COMBINED ACCOUNT.

THERE WAS ONE BILL TO BE PAID. OTHER THAN THAT THERE IS NO OTHER, I HAVE NO OTHER ITEMS.

I WILL BE PRESENTING A DRAFT BUDGET AT THE AUGUST MEETING. >> OKAY.

ONE QUESTION. ARE WE NOW CAUGHT UP WITH ALL OF OUR PAST DUE BILLS?

>> CORRECT. >> GREAT. ANY QUESTION FOR MS. O'CONNELL?

[00:05:10]

[Administrator's Report]

>> IF WE CAN MOVE ON TO MR. MAXWELL. I'M NOT GOING TO SEGUE HERE OR INTRODUCE THE ITEM. ONE THING -- WE'VE HAD DISCUSSION BESS IT QUITE A BIT OVER THE LAST NINE OR 10 MONTHS NOW AND WE DID INCLUDE THE ORIGINAL LETTER THAT MR. MAXWELL SENT TO THE BOARD IN YOUR PACKET TODAY. AS WELL AS SOME OF THE RENT RULES. THAT WAS PART OF THE DISCUSSION AGAIN AND ESSENTIALLY WHAT I'M GOING TO DO IS JUST LET MR. MAXWELL TAKE IT AWAY. I'M SURE WE'VE HAD A LOT OF THINGS THAT HAVE GONE ON HERE IN THE LAST FEW MONTHS THAT HAVE PUT US ALL BEHIND AND MR. MAXWELL IS DEALING WITH THAT. SO I'M GOING TO LET HIM HAVE AN OPPORTUNITY TO ADDRESS THE BOARD AND THEN WE CAN HAVE A DISCUSSION.

THANK YOU, SIR. MR. MAXWELL, ARE YOU THERE? UH-HO.

WE MAY HAVE LOST HIM. WE MAY BE FORCED TO GO ON TO THE ADMINISTRATOR'S REPORT.

>> WHY DON'T YOU START THAT AND IF HE COMES BACK ON WE'LL JUMP BACK IN.

>> YES, SIR. I WILL DO THAT. I JUST WANT TO GIVE YOU A QUICK UPDATE ON SOME OF THE INITIATIVES THAT THE COUNTY IS CURRENTLY WORKING ON.

AS YOU KNOW AND I'VE COME AND TALKED TO YOU, WE WERE RUNNING A RENTAL ASSISTANCE AND UTILITY ASSISTANCE PROGRAM. CURRENTLY WE'VE SPENT ABOUT $600,000 AND WE'VE HELPED CLOSE TO 200 FAMILIES AND THAT'S AN ONGOING PROGRAM. SO YOU KNOW BY THE TIME I ASK MICHELLE LAWLER WHO COMES TO THE MEETINGS SOME TIMES THOSE NUMBERS MAY HAVE CHANGED.

I'M ALSO HAPPY TO A JOINS THAT WE HAVE THE BACK TO BUSINESS PROGRAM.

WE'VE BEEN ABLE TO ASSIST 51 GRANTEES OR BUSINESSES TO $480,000.

EXTREMELY PROUD OF THAT. WE DID THAT VERY QUICKLY AND WE'VE GOTTEN A LOT OF REALLY NICE LETTERS FROM A LOT OF THE BUSINESS OWNERS HERE IN TOWN. THE THIRD ITEM OF BUSINESS IS HAVING INCLUDED IN YOUR HANDOUT TODAY A RECENT REPORT THAT WAS GIVEN TO OUR BCC.

BY OUR ASSISTANT OR DEPUTY COUNTY MANAGER JOY ANDREWS. AND AS YOU CAN SEE WE HAVE ABOUT I THINK IT'S SOMEWHERE IN THE NEIGHBORHOOD OF $46 MILLION IN CARES FUNDS THAT ARE COMING TO ST. JOHN'S COUNTY. DON'T QUIET ME ON THAT. BUT THESE ARE SOME OF THE EARLY ALLOCATION THAT'S WE PLAN ON DOING. I THINK THE CURRENT PLAN IS TO SPEND ABOUT $11.5 MILLION HERE IN THE NEXT FOUR TO FIVE MONTHS. THE SECOND PAGE IS KIND OF WHAT PERTAINS TO WHAT THE HOUSING DEPARTMENT DOES. AS YOU CAN SEE WE HAVE THE BACK TO BUSINESS ASSISTANCE PROGRAM WE'RE GOING TO UP THAT BY ABOUT $10 MILLION.

THE CURRENT PLAN IS TO POSSIBLY REPURPOSE OR WHAT IS THE WORD I'M LOOKING FOR REIMBURSE SOME OF OUR SHIP FUNDS AND THAT WILL OPEN UP OUR RESIDENCE ASSISTANCE PROGRAM.

WE KNOW THERE IS A HUGE NEED IN THE COMMUNITY. IT TOO TO THE TUNE OF $3 MILLION AND THEN THE LAST ITEMS A NONPROFIT ASSIST APPEARS. I DON'T KNOW WHOP THAT LOOKS LIKE BUT THAT IS OUR CURRENT PLAN. THEY NEED SOME ASSISTANCE AND THE CURRENT I GUESS YOU COULD SAY ALLOCATION LOOKS TO BE $5 MILLION IN THAT PARTICULAR LINE ITEM SO THOSE ARE SOME THINGS THAT ARE GOING ON FOR THE HOUSING DEPARTMENT.

I KNOW THAT I'VE BEEN THROUGH A NUMBER OF MEETINGS CONCERNING THESE DOLLARS AND I'M SURE THAT OUR WORKLOAD WILL INCREASE ONCE WE RECEIVE THE ALLOCATION FROM THE STATE.

WE LIKE TO DO THINGS AT THE HOUSING DEPARTMENT. I DON'T LIKE TO DO THEM UNDER THESE CIRCUMSTANCES BUT IT'S A GOOD FEELING FOR US TO BE ABLE TO HELP OUR RESIDENTS.

AND THE FINAL ITEM MR. -- HAS JOINED US. I DO NOT UNFORTUNATELY HAVE A DRAFT AGREEMENT OR EVEN AN AGREEMENT TO SHARE WITH YOU TODAY BUT HAPPY TO SAY THAT WE'VE HAD A NUMBER OF CONVERSATIONS WITH HIM AS WELL AS WITH MR. O'CONNELL BEING INVOLVED SO HE CAN ADVISE US ON THE FINANCIAL STATUS OF THE BOARD AND WHAT THE BOARD CAN

[00:10:05]

MR. COMMAND DOUGH IS HERE. I AM SORRY I WAS NOT ABLE TO PUT YOU ON THE AGENDA TODAY.

>> I JUST WANT TO LET YOU AND THE AUTHORITY KNOW THAT I JUST SENT YOU A COUPLE OF MINUTING AAN UPDATED AGREEMENT. AND THANK YOU AND I LOOK FORWARD TO WORKING WITH YOU ALL.

>> AND DOES ANYONE HAVE ANY QUESTIONS? >> WE HAVE MR. MAXWELL BACK ON

THE LINE. >> OKAY. >> MR. MAXWELL, WE'VE MOVED YOU UP IN THE AGENDA. WE'RE GOING TO DISCUSS HALO PROPERTIES NOW IF THAT IS OKAY

[Old Business (Part 1 of 2)]

WITH YOU. >> YES. IT IS.

CAN EVERYONE HEAR ME OKAY? >> YES. >> YES, SIR.

>> OKAY. FOR SOME REASON IT HUNG UP. SORRY ABOUT THAT.

BUT I'LL GO AHEAD. >> THAT WASN'T VERY CLEAR. I'M SORRY MR. MAXWELL.

>> I SAID FOR SOME REASON IT HUNG UP. >> YEAH.

>> FOR SOME REASON I GOT DISCONNECTED. >> IF YOU WOULD LIKE TO GO AHEAD

AND ADDRESS THE BOARD NOW IS YOUR OPPORTUNITY. >> OKAY.

THE REQUEST STILL STANDS AS THE PAST IN REFERENCE THERE WAS A $200,000 LOAN.

I -- SENT DOCUMENTATION THAT THAT WAS A GRANT BASED ON THAT WE FINISHED THE TERM BEING 20 YEARS OF AFFORDABLE HOUSING TO THE COUNTY ON THE HALO PROPERTIES.

THE CURRENT RENTS ON NINE UNITS AT $635 A MONTH TO SET ASIDE FOR THE VERY LOW-INCOME FAMILIES AND 800 FOR THE LOW-INCOME FAMILIES. THAT RENT WAS AT $750 AND WE WENT UP ON THOSE REPRESENTS ABOUT SIX TO EIGHT MONTHS AGO. WE'RE PRESENTLY PAYING AFFORDABLE HOUSING TAXES AND ALSO INSURANCE ON THAT COMPLEX WHICH CONSIST OF 36 UNITS. TWO LOCATIONS.

28 NORTH WHITNEY STREET AND 45 PALMER STREET. ALSO WE HAVE A 35 I BELIEVE IT'S RIGHT AT $35,000 RIGHT AT $37,000 EXCUSE ME OUT THERE ALSO AS A 110.

AND THE 110 WAS A PART TO THE BEST OF MY KNOWLEDGE -- WAS A PART OF THE 20 YEAR OR 25 YEAR KEEPING THOSE UNITS AFFORDABLE. I WANTED TO MAKE A RECOMMENDATION THAT WE CONTINUE PAYING THE 500 IF THE BOARD WOULD ACCEPT THAT AND MOVE FORWARD AND GIVE Y'ALL ENOUGH TIME TO LOOK INTO THE OTHER TWO LOANS AND ANY DOCUMENTATION THERE OF.

OTHER THAN THAT THAT IS PRETTY MUCH IT. >> MR. MAXWELL DID I HEAR YOU

SAY THE LOAN WITH THE FHA IS $200,000? >> YES.

I SENT SOME PAPERWORK. IT WAS 200 FOR 20 YEARS ON ONE LOAN AND THEN THERE WAS ANOTHER

ONE FOR 110. BUT YES TO ANSWER YOUR QUESTION. >> AND CURRENTLY ON THE PROPERTIES THAT YOU HAVE RIGHT NOW DOES YOUR FINANCING SOMETHING REQUIRE -- HOW MUCH

[00:15:03]

LONGER DOES IT REQUIRE THAT THEY REMAIN AS AFFORDABLE? >> I DIDN'T QUITE HEAR THE COMMENTS. ALL I HEARD WAS AFFORDABLE. YOU HAVE CAME IN AND OUT.

I'M SORRY. >> I WAS JUST ASKING WITH EITHER THE FRONT FINANCING OR CONTRACT TO KEEP THE PROJECTS AS AFFORDABLE HOUSING HOW MUCH LONGER IS THAT TERM?

HOW MANY MORE YEARS IS REMAINING? >> I BELIEVE IT'S 10 MORE YEARS

ON THAT CONTRACT. >> 10 YEARS. OKAY.

>> DOES ANYONE HAVE ANY QUESTIONS FOR MR. MAXWELL? >> THERE DOESN'T LOOK TO BE IN

HOPE OF FINDING A WAY TO FIX THIS AND PAY THEM BACK? >> I'M SORRY YOU SAID FIND A WAY

TO DO WHAT? >> HARRY, YOU DON'T THINK THERE IS ANY WAY YOU CAN DO SOMETHING

TO HELP CURE THESE LOANS? THE ONLY WAY -- >> SECURE THE LOAN FOR OUTSIDE

FINANCING? >> YEAH. >> NO, MA'AM.

I BELIEVE AND I WOULD HAVE TO CHECK BUT I THINK WE'RE SOMEWHERE $2.5 MILLION TO AFFORDABLE HOUSING TO TRY AND GO OUT AND GET A SECONDARY LOAN WITH THE VALUE TO THE RATIO OF

VALUE ON THAT LOAN IT WOULDN'T BE THERE. >> I SEE.

>> MAYBE SOMEONE COULD TELL US ABOUT HOW MUCH INTEREST IS NOT BEEN PAID OR ESSENTIALLY HAS

BEEN ACCRUED? >> IT'S ECHOING REAL BAD BUT I THINK YOU SAID HOW MUCH INTERET

WE PAY FOR AFFORDABLE HOUSING? >> NO. HOW MUCH INTEREST IN LOANS TO THE FHA THAT HAVE BEEN BASICALLY NOT BEEN PAID. ACCRUED.

STILL OWED ON TOP OF THE PRINCIPLE? >> I'M SORRY I CANNOT -- IT SOUNDS LIKE IT'S ECHOING A LOT. I DON'T KNOW IF YOU HEAR ME THE SAME WAY.

>> I WAS ASKING ABOUT THE INTEREST THAT WAS SUPPOSED TO BE PAID TO THE FHA THAT HAS NOT

BEEN RECEIVED DO WE KNOW HOW MUCH THAT IS AT THE MOMENT? >> NO, SIR.

I DO NOT. >> I CAN COMMENT ON THAT. I DON'T CURRENTLY HAVE THE NUMBERS HERE. I CAN SEND THE AUTHORITY MEMBERS VIA E-MAIL WHEN I GET BACK TO THE OFFICE OR FIRST THING IN THE MORNING. FISCAL YEAR THAT ENDED.

WE HAVE NOT DETERMINED WHAT WAS GOING TO HAPPEN IN 2020 -- BECAUSE THE AUDITOR WE HAD SEVERAL DOUBTS ON WHETHER THIS ACCOUNT WAS GOING COLLECTED SINCE THERE IS AN ALLOWANCE RIDING IT DOWN FOR A SUB SUBSTANTIAL AMOUNT. I BELIEVE $12,500 BUT I WAS WAITING TO HAVE THE MEETING TO COME UP WITH BOARD GUIDANCE IN REGARDS TO WHAT YOU WANT ME TO

DRAFT OR COME UP WITH. >> I'VE GOT A QUESTION FOR YOU. WHAT HAPPENED HAPPEN IF WE TOOK THE CURRENT LOANS LOOKED AT THE ACCRUED INTEREST, RECAST IT GOING FORWARD AS A 10 YEAR NO INTEREST PAYMENT LIQUIDATING LOAN SO IF THE PROPERTY SHOULD BE SOLD WITHIN THE NEXT 10 YEARS WE CATCH WHEREVER THE BALANCE IS UPON SALE. FOR THE SAKE OF ARGUMENT IT'S $200,000 AND FOR THE NEXT 10 YEARS EACH YEAR WE WOULD JUST ADD 10% FORGIVEN OR LIQUIDATED AS LONG AS IT REMAINS AFFORDABLE SO THAT AT THE END OF 10 YEARS IT WOULD BE ZERO BUT IF IT SHOULD BE SOLD IN FIVE OR SEVEN YEARS THEN WE HAVE THE ABILITY TO COLLECT UPON SALE WHATEVER

THE BALANCE WOULD BE. >> THAT WOULD BE JUST A WRITE DOWN AS AN EXPENSE FOR THE AUTHORITY AND THAT IS A TAXABLE TRANSACTION AS THE DEBT WOULD BE RELIEVED ON HIS FIXED ASSETS.

[00:20:06]

THE DEBT. >> SO LET ME ASK YOU THIS. THE OTHER THING -- IF IT WAS CANCELLED NOW THAT WOULD STILL BE A TAXABLE EVENT TO MR. MAXWELL, CORRECT?

>> CORRECT. >> SO ONE WAY IT WOULD BE TAXABLE IMMEDIATELY.

THE OTHER ONE IT WOULD BE EACH YEAR OR I'VE SEEN LIQUIDATING LOANS, I DIDN'T THINK ONE WOULD BE A TAXABLE EVENT IF THAT WERE THE TERMS. BECAUSE THAT IS BEING KEPT FOR

AFFORDABLE HOUSING WHICH IS THE MISSION OF THE HFA IS. >> BUT AS A TAX PAYING CITIZEN HE IS NOT A NONPROFIT IT OR -- ENTITY. UNLESS HE IS IN BANKRUPTCY OR

DEEMED INSOLVENT. >> I HAVE A BASIC QUESTION. BASED ON THE SCHEDULE THAT WE WERE PRESENTED THIS AFTERNOON THE MONTHLY INCOME IS ROUGHLY $19,000 A MONTH.

DO WE HAVE ANY IDEA AS TO WHAT HIS MONTHLY EXPENSES ARE AGAINST THAT?

>> I HAVE NO RECORD OF IT. WE CAN ASK HIM TO PROVIDE MONTHLY FINANCIAL STATEMENTS.

>> I'M ASSUMING THAT THE RENTER'S PAY THEIR OWN UTILITIES AND THAT MAY BE A FALSE ASSUMPTION BUT PRIMARILY WHAT ARE HIS LOAN PAYMENTS VERSUS HIS INCOME STREAM?

>> IF I WERE ADVISING THE AUTHORITY I WOULD ASK MR. MAXWELL TO PROVIDE A CASH FLOW STATEMENT. NOT NECESSARILY AN INCOME STATEMENT BECAUSE THAT WOULD NOT

ACCURATELY REFLECT THE PRINCIPLE PAYMENT IF THERE IS ONE. >> EXCUSE ME, HARRY MAXWELL.

I TURNED THAT OVER TO THE AUTHORITY ALREADY. DO YOU STILL HAVE THAT

DOCUMENTATION? >> I RECALL THE RENT ROLE SIR BUT I WILL BE HONEST WITH YOU -- IT GOT OFF THE TABLE WITH EVERYTHING THAT IS GOING ON. THE ONLY THING I RECALL YOU

GIVING IS THE RENT ROLL. >> IF YOU REMEMBER THE AUDIT DOCUMENTS THAT -- WERE VERIFIED BY THE AUDITOR BUT I WILL TURN IN WHATEVER YOU NEED WHATEVER YOUR BOARD NEEDS OR COMMITTEE

NEEDS. I DON'T MIND DOING THAT. >> MR. O'DONNELL I YOU REACHED OUT TO -- DO YOU RECALL ANY OF THIS? I APOLOGIZE FOR PUTTING YOU ON

THE SPOT? >> I DO REMEMBER REACHING OUT TO THE AUDITORS AND THEIR BASIC THING IS THERE IS A GROWING CONCERN ISSUE IS MR. MAXWELL AND ARE THESE PROPERTIES GOING TO CONTINUE BASED ON THE INCOME THAT HE IS HAVING OR THE CASH FLOW HE IS HAVING.

I THINK WE HAD THAT DISCUSSION. I DON'T EVEN KNOW HOW LONG AGO REGARDING THESE PROPERTIES AND I THINK WE DECIDED I THINK WE HAD A VOTE ON THAT AND DECIDED NOT TO FORGIVE IT SIMPLY BECAUSE THERE IS LARGER OUTSTANDING BALANCES 2-POINT WHATEVER MILLION SO EVEN IF WE FORGIVE THIS DOES THAT HELP MR. MAXWELL WITH THE GROWING CONCERN ISSUE AND THE LOGIC IS NO.

IT DOES NOT HELP HIM. I DON'T KNOW IF THAT REALLY ANSWERS YOUR QUESTION, JOE BUT I DO RECALL THAT DISCUSSION. YES AND THE FINANCIALS BASICALLY SHOWED HE IS NOT MAKING MUCH AT ALL. SO BUT THAT WAS THE LOGIC BEHIND WHY I THINK WE VOTED

COLLECTIVELY NOT TO FORGIVE THE LOANS ORIGINALLY. >> MR. RAY MOWS DOES THAT

ADDRESS YOUR QUESTION. >> WITHOUT DOCUMENTATION, YES. >> SO IS THERE AN AUDIT OF HALO

PROPERTIES INC. >> YES. >> BECAUSE IS IT REQUIRED OR IS

[00:25:09]

A GOING CONCERN COMMENT IN THE OPINION OF THE AUDITOR BASICALLY STATES THERE IS A DOUBT THAT THE

ENTITY EXIST IN THE NEXT 12 MONTHS. >> DO YOU RECOMMEND THAT WE GET

NEW AUDIT REPORTS OR JUST -- >> I RECOMMEND THAT YOU GET MR. MAXWELL TO PRO FINANCIAL STATEMENTS AND CASH FLOW STATEMENTS. IF HE HASN'T HAD ONE IN A FEW YEARS THEY WILL HAVE TO AUDIT HIS BEGINNING BALANCE SHEET AND THEN FOR THE NEXT 12 MONTHS.

YOU'RE JUST ADDING MORE WEIGHT LOAD TO AN ALREADY STRESSED ENTITY.

BUT IF HE HAS TO BE IN COMPLIANT HE HAS TO DO IT EITHER WAY. >> THE EXCUSE ME.

HARRY MAXWELL AGAIN. THAT IS WHAT FLORIDA HOUSING DID.

WE'RE NOT OBLIGATED AT THIS TIME BECAUSE OF THE AMOUNT OF FINANCIAL COST BURDEN ON US TO PRODUCE FINANCIAL STATEMENTS RIGHT NOW AND THAT IS WHY THEY HAVE HELD OFF.

SO WE'RE DOING COMPILATIONS AND THINGS OF THAT NATURE. >> I WOULD ADVICE THE AUTHORITY IF THEY CAN GET THE MOST RECENT COMPILATION REPORT. AND IF IT HAS NOTES, YOU CAN ACTUALLY DRAFT A COMPILATION ROT THAT DOESN'T REQUIRE NOTES BUT THE GOVERNING HERE FLORIDA HOUSING IS GOING TO LET HIM HAVE A NONAUDIT AND THE NOTES DESCRIBES THE FINANCIALS ON THE FRONT SO PROBABLY GIVE DETAILS ON HIS CURRENT DEBT LOAD, 12 MONTH PAYMENTS AND THINGS OF THAT NATURE. IF IT DOESN'T HAVE NOTES IT WILL GIVE IT IN TOTAL BUT I CAN ASK A FEW EDUCATED QUESTIONS TO DETERMINE WHAT THE CASH FLOWS WOULD BE OF THE ENTITY IF IT'S

NOT PRESENTED. >> FROM WHAT I'M HEARING IT SOUNDS LIKE WE'RE NOT GOING TO BE TAKING ANY MOVEMENT TODAY THAT WE DO WANT TO SEE ADDITIONAL FINANCIAL INFORMATION WHICH WE WILL BE ABLE TO LOOK AT AND REVIEW AND DISCUSS AT THE NEXT MEETING TO DETERMINE WHAT

WE DO WANT TO DO IN TERMS OF THESE LOANS WITH MR. MAXWELL. >> MY THOUGHT IS THAT IF WE'RE INCLINED TO CONSIDER HIS REQUEST TODAY TO FORGIVE THAT LOAN THAT WE NEED TO HAVE THAT OF INFORMATION BEFORE WE MAKE ANOTHER VOTE ON THAT ISSUE. IF WE'RE NOT GOING TO DO THAT TODAY THEN I WOULD -- -- IF WE VOTE TO MAINTAIN THE NO VOTE THAT WE HAD ON THE ISSUE TODAY THEN THAT WOULD BE UNNECESSARY BUT IF WE'RE GOING TO RECONSIDER IT I WOULD LIKE TO SEE THE

COMPILATIONS RECEIVED AND GOING OVER. >> EXACTLY.

>> SO DO WE WANT TO TAKE NO ACTION TODAY AND WAIT UNTIL WE GET THE COMPILATION?

>> THAT WOULD BE MY THOUGHT UNLESS WE'RE READY TO DECIDE OTHERWISE.

IF WE'RE GOING TO STAY WITH THE ORIGINAL DECISION. >> CAN I MAKE A SUGGESTION? WHATEVER YOU DECIDE YOU MAY MAKE A FORMAL REQUEST OF MR. MAXWELL WHILE HE IS ON THE PHONE AND AS THIS ISSUE HAS GONE ON FOR SOME TIME I WOULD ALSO SUGGEST A DEADLINE.

>> I DIDN'T GET THAT LAST PART? >> A DEADLINE, SIR. >> RIGHT.

OKAY. CAN WE GET I WOULD LIKE TO HAVE SOMEONE MAKE A MOTION THAT WE REQUEST THE ADDITIONAL FINANCIAL INFORMATION THE COMPILATION BY MR. MAXWELL AND BY A DATE CERTAIN I WOULD THINK RECEIVING IT PRIOR TO THE NEXT MEETING. IF THAT IS OKAY WITH THE BOARD I

WOULD LIKE TO SEE SOMEONE TO MAKE THAT MOTION. >> SO MOVED.

[00:30:03]

>> I'LL SECOND THAT. >> OKAY. ALL THOSE IN FAVOR.

>> AYE. >> OKAY. THAT WILL BE THE REQUEST.

>> ONE QUESTION IS 30 DAYS ENOUGH TIME TO PRODUCE THOSE DOCUMENTS?

>> IF YOU HAVE THE COMPILATION DONE, YES. >> HE WOULD BE ABLE TO DO THAT?

>> YES. >> MR. MAXWELL DID NOT CONFIRM. >> I HEARD 30 DAYS.

I WOULD GET WITH THE CPA AND SOME -- IF 30 DAYS WOULD WORK IT WOULD BE RICHARD MOORE AND SEE IF 30 DAYS WOULD WORK. I DON'T KNOW WHAT HIS WORKLOAD IS LIKE BUT I WILL CALL HIM AS

SOON AS I GET OFF THE PHONE. >> OKAY. >> IS THAT ACCEPTABLE TO THE

BOARD? >> YES. >> YES.

>> YES. >> YES. >> ANY OTHER DISCUSSIONS THAT WE

NEED TO HAVE BEFORE MOVING ON TO THE NEXT ITEM? >> OKAY.

I BELIEVE WE WERE IN THE MIDDLE OF YOUR REPORT, JOE? >> NO, SIR.

IT WAS COMPLETE. >> EXCUSE ME? >> IT WAS COMPLETE.

[Approval of Minutes]

THE NEXT ITEM IS THE APPROVAL OF MINUTES. >> THEN I WOULD TAKE A MOTION

FOR APPROVAL OF THE JUNE MEETING MINUTES. >> SO MOVED.

>> SECOND. >> OKAY. ALL OF THOSE IN FAVOR.

>> THERE WAS ONE EXCEPTION. AND THAT IS IN THE MINUTES IT SAID THAT I MADE A MOTION THAT I

MADE A MOTION AND I WAS NOT AT THE LAST MEETING. >> THAT IS TRUE.

>> I'LL GO BACK TO THE TAPE AND MAKE THAT CHANGE SO WITH YOUR APPROVAL -- WE'LL APPROVE IT WITH THAT CHANGE. I MAKE A MOTION THAT WE AMEND THE MINUTES AND PASTA PROVAL

WITH THAT AMENDMENT. >> THANK YOU. >> WAS THERE A SECOND TO LINDA'S

MOTION? >> SECOND. YES.

>> ALL THOSE IN FAVOR. AYE. >> THANK YOU.

[New Business]

>> OKAY NEXT ITEM OF BUSINESS. THIS IS THE RESOLUTION I BELIEVE YOU SENT OUT TODAY.

THAT IS THE BOND RESOLUTION. AND IS THERE SOMEONE TO BRIEFLY DISCUSS WHAT THIS IS.

AND WHAT WE NEED TO DO. >> SURE. JUST ANOTHER QUICK INTRO.

BASICALLY THE RESOLUTION IS A REQUIREMENT OF THE INTERNAL REVENUE.

ALLOWS FOR THE DEVELOPER TO REIMBURSE THEMSELVES FOR PRE PROJECT COSTS AS THEY ARE ASSOCIATED WITH THE ISSUANCE OF THE BOND. AND IT'S MY UNDERSTANDING IT COMES FROM THE PROCEEDS. THE HFA WILL HAVE NO LIABILITY AS PART OF THE RESOLUTION.

IF YOU HAVE ANY SPECIFIC QUESTIONS MR. LEVER HAS SHOWN UP TO ADDRESS THE BOARD AND -- IS HERE TOO TO PROVIDE ANY TYPE OF CLARIFICATION IF NEEDED. BUT MR. LEVER IS PROBABLY THE

BETTER RESOURCE IN THIS CASE. >> OKAY AND IS THIS PRETTY MUCH A STANDARD BOILERPLATE TYPE OF

RESOLUTION FOR THIS PROJECT?& >> YES, SIR. IT'S OUR UNDERSTANDING THAT IT

IS. >> OKAY. AND SO WHAT DO WE NEED? WE NEED A MOTION BY THE BOARD TO APPROVE THE RESOLUTION AND THE CHAIR TO SIGN?

>> HAS COUNSEL P COUNCIL REVIEWED THIS. >> I HAVE REVIEWED THIS YES.

>> DOES ANYONE HAVE ANY QUESTIONS REGARDING THE RESOLUTION?

>> DO YOU WANT A MOTION? >> PLEASE. I'LL MAKE A MOMENT WE GO

FORWARD? >> SECOND. >> ANY DISCUSSION?

ALL THOSE IN FAVOR. >> AYE. >> MOTION PASSED.

DO YOU NEED ME TO COME DOWN AND SIGN IT TOMORROW? >> WHENEVER WOULD WORK FOR YOU

[00:35:03]

WOULD BE FINE, SIR. >> I COULD TAKE A DRIVE DOWN TOMORROW.

I'M UPSTAIRS AND SIGN IT AND LINDA YOU WOULD HAVE TO JUST -- -- THE SECRETARY HAS TO PUT THE

SEAL TO IT. >> YES. ESSENTIALLY, YES, SIR.

>> WOULD YOU BE ABLE TO LEAVE IT AT THE DESK AND I'LL COME UP AND BE THERE AND SIGN IT TOMORROW.

>> YEAH. >> IF IT WORKS BETTER FOR YOU GIVE US A RING AND WE CAN MEET YOU IN THE HALLWAY OR OUTSIDE IF IT WORKS BEST. WE'RE TRYING TO RESTRICT PEOPLE

COMING IN THE BUILDING WITH COVID. >> AND WHO SHOULD I CALL?

>> CALL 827-6896. >> OKAY. I WILL DO THAT TOMORROW.

AND I'LL LET HER NAME WHEN I'M IN THE PARKING LOT. >> GREAT.

[Old Business (Part 2 of 2)]

>> MOVING ON. OLD BUSINESS? FIRST THING IS BOND APPLICATION UPDATE WHICH WE STARTED WITH THE RESOLUTION. ANYTHING THAT YOU WOULD LIKE TO

UPDATE US WITH? >> SURE A QUICK INTRO. -- SHE HAS JOINED US THROUGH ZOOM AGAIN. I DO HAVE TO APOLOGIZE. SHE HAS SUBMITTED A DRAFT AGREEMENT BUT WE HAVE NOT HAD AN OPPORTUNITY TO REVIEW IT AT THIS PARTICULAR MOMENT.

NOR GET BACK TO HER WITH ANY QUESTIONS THAT WE MAY HAVE SO I DO APOLOGIZE MS. EDMONDS BUT AS SOON AS WE HAVE MORE TIME TO REVIEW I'LL BRING IT BACK AS PART OF THE DISCUSSION WITH THE BOARD AND I'LL LET HER ADDRESS THE BOARD HOWEVER SHE WOULD LIKE TO.

I CAN'T HEAR YOU MS. EDMONDS. >> CAN YOU HEAR ME NOW? >> THERE YOU GO.

>> VERY VERIZON CALLS. I'M HAPPY TO GO OVER THE CONTRACT WITH WHEN IT'S APPROPRIATE. THE ESSENCE THIS ALL GOES DOWN TO YOU'RE HAVING A REPRESENTATIVE INVOLVED ON THE FINANCIAL AND BUSINESS SIDE AS THIS TRANSACTION THIS BOND ISSUE IS PUT TOGETHER AND I'LL REMIND FROM THE LAST MEETING WHEN WE LOOKED AT THE NUMBERS WE'RE TALKING ABOUT $16 MILLION-$17 MILLION IN DEBT THAT WILL BE FUNDED THROUGH AUTHORITY BONDS AND THEN THE COUNTY THROUGH CDBG FUNDS IS PUTTING IN $15,000,500,000.

AND THEN THAT TOGETHER WITH SOME DEFERRAL WILL FUND THE PROJECT. A LOT OF MONEY.

LOTS OF LAWYERS LOOKING AT THIS. THE DEVELOPER HAS HIS ADVISORS AND HIS FINANCIAL PEOPLE AND WHAT I'M PROPOSING IS THAT I LOOK AT THIS TRANSACTION ON THE AUTHORITY'S BEHALF.

THE AUTHORITY WHEN THE AUTHORITY RETAINED THE FINANCIAL ADVISOR FOR THIS TYPE OF ROLE THAT FEE IS PAID BY THE DEVELOPER. IN THIS CASE I WILL SHARE WITH YOU AS I DID AT THE LAST MEETING THE DEVELOPER ACTUALLY EVEN THOUGH I SIT ON YOUR SIDE OF THE TABLE AND NEGOTIATE WITH YOU TO THE EXTENT THERE ARE ANY NEGOTIATIONS AGAINST THEM THE DEVELOPER HAD REACHED OUT TO ME ABOUT WORKING ON THIS TRANSACTION BECAUSE WE'VE WORKED TOGETHER BEFORE AND HE IS AWARE OF THE FACT THAT I KNOW HOW TO MOVE THINGS FORWARD IN A POSITIVE WAY SO.

WITH THAT HAPPY TO ANSWER ANY QUESTIONS NOW OR LATER FROM STAFF.

>> DOES ANYONE HAVE ANY QUESTIONS? >> NOT YET.

>> DID SOMEONE SAY YES? >> NO. NOT YET.

>> DID YOU SAY YOU HAVE A QUESTION FOR HER? >> SHE SAID NOT YET.

>> OKAY. I'M SORRY. SO DOES ANYONE HAVE ANY ADDITIONAL QUESTIONS AT THIS POINT? OKAY.

[00:40:07]

IF NOT THEN DO WE WANT TO GO ON TO THE NEXT ITEM? >> YES.

CERTAINLY. >> YES, SIR. BRIEFLY INTRODUCE THE ITEM.

BEFORE WE GET STARTED ONE THING I WANT TO NOTE THERE WAS A GENTLEMAN BY THE NAME OF COLIN TURNER THAT CAME TO AT LEAST THREE MEETINGS CONCERNING THE PROJECT.

AND HE IS NO LONGER EMPLOYED BY ENDLESS SUMMER.& HE IS NOTED ON THE RESPONSE FOR PROPOSALS AS THE MAIN CONTACT OR AS ONE OF THE PRIMARY CONTACTS. IT'S MY UNDERSTANDING THAT TECHNICALLY YOU'LL NEED TO DECIDE WHETHER OR NOT YOU WANT TO CONTINUE TO PROCEED WITH ENDLESS SUMMER. I WOULD RECOMMEND THAT YOU DO SO.

I'VE HAD A NUMBER OF CONVERSATIONS WITH MR. LEYLAND WHO IS HERE TO ADDRESS THE BOARD AND GIVE A BRIEF PRESENTATION REGARDING WHAT HE WOULD LIKE TO DO WITH THE PROJECT PROPERTIES.

AND I THINK HE ALSO MENTIONED TO ME YESTERDAY HE WAS GOING TO BRING BACK THE ORIGINAL AGREEMENT THAT HE HAD WORKED ON WITH I GUESS WITH -- AND I AND FOR US TO GO AHEAD AND MOVE FORWARD WITH THE PROJECT. WE'LL NEED A MOTION TO PROCEED WITH THE PROJECT AND THEN WE CAN ALLOW HIM TO COME UP AND GIVE YOU A BRIEF SYNOPSES WITH HOW WE WOULD LIKE TO MOVE FORWARD IN

MARKETING AND ASSISTING IN THE SALE OF THE PROPERTIES. >> CAN I GET A -- ANYONE LIKE TO MAKE A MOTION RECORDING US CONTINUING ON WITH THE CONTRACT AND FINALIZING IT WITH ENDLESS SUMMER FOR THE SALE OF THE --

CONTINUE WITH THE CONTRACT WITH ENDLESS SUMMER. >> SECOND.

>> OKAY. ANY DISCUSSION? I CALL THE MOTION TO VOTE.

ALL THOSE IN FAVOR. >> A YES. >> MOTION CARRIES.

WOULD THE BOARD LIKE TO HEAR FROM THE REPRESENTATIVE WITH ENDLESS SUMMER.

>> THANK YOU FOR LETTING ME BE HERE TODAY. COLIN IS A GREAT ASSET AND HE FINISHED HIS ROLE AT OUR COMPANY AND HE LEFT ON GOOD TERMS. I WAS ALTHOUGH COLIN CAME TO THE MEETINGS I WAS VERY AWARE OF THE OPPORTUNITY TO SERVE YOU ALL AND AM EXCITED -- TO DO THAT.

IT FEELS LIKE WE'VE DONE THE DUE DILIGENCE WORK. THE SCOPE OF WORK HAS BEEN APPROVED. THE LISTING AGREEMENTS HAS BEEN REVIEWED BY YOUR COUNCIL AND WE'VE DONE THE EVALUATION OF THE INDIVIDUAL PROPERTIES AND WHAT THEIR VALUE IS SO, I'VE PREPARED THE LISTING AGREEMENTS AND BROUGHT A COPY OF THE SCOPE OF WORK WITH THE HOPE THAT YOU ALL COULD APPROVE THEM AND ALLOW YOUR REPRESENTATIVE TO SIGN THEM AND THEN WE CAN BEGIN MARKETING.

I JUST WANT TO REMIND YOU ABOUT SOME THINGS ABOUT WHAT YOU'RE HIRING US TO SELL FOR YOU.

THERE ARE 16 LOTS THAT ARE UNDEVELOPED. SOME OF THEM ARE IN BETTER SHAPE THAN OTHERS. SOME OF THEM HAVE ROADS. SOME OF THEM HAVE WETLANDS.

SOME ARE LOW AND SOME OF THEM ARE HIGH SO THE VALUE CHANGES. YOU'RE FAMILIAR WITH THE LOCATION OF THE LOTS. THEY ARE ALL NICE PROPERTIES THAT WILL EVENTUALLY MAKE A NICE HOME FOR SOMEONE BUT THEY NEED DIFFERENT AMOUNTS OF WORK. AND SOME ARE LARGER THAN OTHERS SO WE'VE GRIFFIN AS BEST WE CAN TO ALL OF THEM. WHEN THE PROPERTIES -- THEY RANGE IN VALUE FROM $15,000 TO $22,000 AND SO THERE ARE TWO LOTS THAT WE WOULD SAY YOU SHOULD MARK IT FOR $15,000. AND 4 AT $22,000 AND THAT IS BASED ON HOW READY THEY ARE TO HAVE A HOME AND WHAT WORK WOULD NEED TO BE DONE AND HOW LARGE THE PROPERTIES ARE.

WE BASE THIS ON OUR VALUATION AND COMBINE IT WITH COUNTY'S ASSESSMENT VALUE OF EACH OF THE PARCELS SO IT COMES UP TO SAY THAT YOUR PROPERTIES ARE WORTH APPROXIMATELY $234,000 AS A GROUP AND WHAT I WOULD LIKE TO RECOMMEND TO YOU IS THAT YOU -- I WOULD LIKE YOU TO TALK ABOUT

[00:45:01]

MY THOUGHT IS THAT YOU SHOULD REDUCE IT BY 10% AND MARKET ALL 16 AT $210,000.

PER THE TERMS OF OUR AGREEMENT BY ME SUGGESTING THAT I'M GOING TO MAKE LESS MONEY BECAUSE OUR AGREEMENT SAID THAT IF WE SELL SOMETHING FOR MORE THAN $200,000 THEN OUR COMMISSION GOES DOWN SO I REALIZE THAT BUT I'M -- I DO THINK THAT IS IN YOUR BEST INTEREST SO WHAT I WOULD PROPOSE IS THAT WE MARKET THEM FOR FOUR WEEKS AS ONE LARGE BULK PIECE OF PROPERTY.

16 PROPERTIES. WE MARKET THEM FOR FOUR WEEKS. IF WE RECEIVE AN ACCEPTABLE OFFER WE MOVE FORWARD. IF WE DON'T WITHIN THE FOUR WEEKS WE HAVE WOULD MARKET THEM INDIVIDUALLY. I'M 100% SURE SOME OF THE LOTS WOULD GO QUICKLY BECAUSE SOME OF THEM ARE REALLY NEAT PROPERTIES. MY CONCERN AND THE REASON I'M SUGGESTING THAT YOU SELL THEM TOGETHER IS THAT THERE ARE SOME THAT ARE NOT THAT DESIRABLE. SO I CAN IMAGINE US LISTING 16 OF THEM AND THEN YOU'RE STUCK WITH FOUR AND PEOPLE ARE OFFERING WAY LESS AND YOU GET LESS THAN THE $210,000 BECAUSE YOU'RE STUCK WITH SOME PROPERTIES THAT YOU WIND UP DISCOUNTING SIGNIFICANTLY SO THE LAST THING I WOULD SAY THAT IN THE LISTING AGREEMENTS I PUT A CLAUSE SAYING I NEED TO YOU TELL ME BUT MY BELIEF WAS THAT THE SELLER WHICH IS YOU ALL AUTHORIZES THE COMMUNITY MANAGER TO ACCEPT OFFERS WITHOUT PRIOR PERMISSION OF THE BOARD FOR 90% OR MORE OF THE ASKING PRICE. SO WE CAN CONTINUE THE PROCESS FORWARD WITHOUT HAVING TO HAVE A SPECIAL BOARD MEETING TO NEGOTIATE AN INDIVIDUAL OFFER FOR UP TO 16 PROPERTIES.

AND SO I ADDED THAT INTO EACH INDIVIDUAL LISTING AGREEMENT. SO THAT IS MY PRESENTATION.

THANK YOU FOR LETTING ME SPEAK. I WOULD LOVE TO ANSWER ANY QUESTIONS IF YOU HAVE ANY.

>> ARE ALL OF THE PROPERTIES BUILTABLE IN YOUR OPINION? THERE ARE FOUR THAT YOU SAID ON

THE LOWER END? >> EVERYTHING IS BUILDABLE. IT'S JUST A QUESTION OF WHAT YOU NEED TO DO TO MAKE IT BUILDABLE. YES. THERE ARE WETLANDS ON SOME OF THEM THAT YOU WOULD NEED WETLAND PERMITS TO MITIGATE SOME OR ALL OF IT OR BUILD A VERY SMALL HOUSE. BUT I BELIEVE THAT THEY ARE ALL BUILDABLE AT SOME LEVEL.

THERE ARE SOME THAT ARE SLAM DUNKS AND THAT IS WHY I RECOMMEND PUTTING THE PACKAGE DEAL BECAUSE I CAN IMAGINE SOME BUILDERS WOULD SAY OH, WELL I'LL WORRY ABOUT THAT LATER OR I'LL BUILD ON THAT ONE IN FIVE YEARS WHEN PROPERTY VALUES ARE HIGHER AND THEN IT WOULD MAKE SENSE TO DO THE MITIGATION. THINK OF IT AS A WHITE CANVAS AND YOU'RE LOOKING FOR A

CONTRACTOR TO BUILD A BEAUTIFUL HOME ON IT. >> I SPENT A LOT OF TIME IN WHAT WE REFER TO AS THE SEA WOOD NEIGHBORHOOD. THERE WERE A FEW -- PROPERTIES, SOME OF THEM ARE BELOW GRADE OR BELOW THE ROAD. SOME OF THEM ARE ODDLY SEEMS LIKE THEY HAVE ALMOST MOUNDS ON THEM. KIND OF ODD BUT IT'S THE NATURAL FLORIDA TERRAIN OUT THERE AND I THINK IT'S -- IN SOME OF THE CASES WE RAN OUT OF TIME AND STEAM THERE ARE FOUR OR FIVE LOTS THAT ARE PRISTINE IN A LOT OF WAYS THAT CAN BE BUILT ON.

YEAH. THERE WERE CERTAINLY SOME CHALLENGES.

7 AND WE KIND OF WORKED OUR WAY THROUGH THEM. SO EVERYTHING THAT MR. LELAND IS

TELLING YOU IS WHAT I SAW FOR ABOUT A TWO-YEAR PERIOD. >> THANK YOU.

I'VE GOT A QUESTION FOR BOTH VICTOR AND LINDA SINCE THEY ARE BOTH REAL ESTATE PROFESSIONALS.

WHAT IS THEIR OPINION OF THIS PROPOSAL AND DO THEY THINK IT WOULD WORK WELL BEFORE THE

BOARD? >> I THINK IT'S RIGHT. IF WE CAN MARKET IT AND SELL

[00:50:06]

>> THE PRINCIPLE THAT HE SPOKE OF IS SOUND. THERE IS OPPORTUNITY TO SELL THEM AS A LOT. AND SOME OF THE LESSER VALUED LOTS I THINK YOU'RE CORRECT IN THINKING THAT A BUILDER MAY WAIT A FEW YEARS FOR THE LAND PRICES TO GO UP WHICH WOULD MAKE THE LAND WORK THEY HAVE TO DO TO THE LOT MORE PALATABLE SO I AGREE WITH THAT AND WITH THE TIME LIMIT. IF THEY DON'T SELL AS A GROUP THEN AT THE END OF FOUR WEEKS

SELL THEM INDEPENDENTLY. >> EVEN AS I TALKED -- WE HAVE ABOUT 60 AGENTS THAT WORK IN MY OFFICE SO I SPOKE TO SOME OF OUR TOP AGENTS ABOUT THESE LOTS AND THEY QUICKLY IDENTIFIED LOTS THAT THEY WOULD HAVE BUYERS FOR BUT IT WAS HAND PICKED LOTS WHICH THEN IT MADE ME CONCERNED BECAUSE WE'RE STUCK WITH HALF OF THE LOTS THAT NOBODY WANTS WHICH IS NOT YOUR OBJECTIVE.

>> A DEVELOPER MAY LOOK AT THE AREA ALSO AND REALIZE THAT EVENTUALLY THEY WILL HAVE WATER AND SEWER TO SERVICE THE OTHER NEIGHBORHOODS. I KNOW IN THIS NEIGHBORHOOD THERE IS WATER AND SEWER. NO. JUST WATER.

DO WE HAVE SEPTIC? >> I WANT TO SAY THERE IS SEWER OUT THERE.

I SEEM TO REMEMBER I KNOW THAT ALL OF OUR LOTS DO NOT HAVE THE MOUNDS THAT YOU SEE TYPICALLY IN THIS AREA. BOTH WATER AND SEWER OUT THERE IF I REMEMBER CORRECTLY.

>> AND THEN AS THEY BUILD IN THE NEIGHBORHOOD THE VALUES GO UP AND THE LESSER VALUE LOTS WILL INCREASE SO YOUR THEORY IS CONNECT. IT WORKS.

>> QUESTION FOR YOU. DID YOU CONSIDER AN AUCTION? >> I DIDN'T CONSIDER AN AUCTION BUT I ACTUALLY THINK THAT BECAUSE OF THE MARKET BEING HOT THAT THE WAY I WAS ANTICIPATING AND MY HOPE IS THAT I MARKET THIS AT 210 AND WE HAVE MULTIPLE OFFERS AND THEN IT TURNS INTO AN

AUCTION. >> SO TO SPEAK. >> YES.

SO TO SPEAK BUT THE PROBLEM IS THAT IF WE -- THE AUCTION IS WHAT WE MAYBE NEED TO DO IF WE END UP SELLING THEM INDIVIDUALLY AND WIND UP WITH FIVE LOTS THAT YOU JUST WANT TO MOVE AND THEN

WE CAN DO AN ULTIMATE AUCTION. >> THANK YOU. >> I HAVE A QUESTION FOR YOU.

OBVIOUSLY IT'S VERY SPECULATIVE QUESTION. HOW HE WOULD YOU ANTICIPATE THE

HOUSE THAT'S WOULD BE BUILT ON THESE LOTS BEING SOLD FOR? >> THE PRICE POINT IN OUR COMMUNITY BETWEEN $150,000 AND $200,000 IS ALMOST NONEXISTENT SO MY HOPE IS THAT HOMES GET BUILT ON IT WOULD WIND UP IN THAT PRICE POINT. WHICH IS WHAT THE NEIGHBORHOOD IS REALLY KIND OF BUILDING TOWARDS. SO AND WHEN I LOOKED AT THE COMPARABLE PROPERTIES NEAR THEM THAT IS WHAT THE COUNTY IS ASSESSING MANY OF THEM FOR.

-- A FRIEND OF MINE -- HE SAID BRAD, WHY DON'T YOU BUY THEM ALL.

A GREAT OPPORTUNITY TO BUY THEM ALL. AND I SAID YOU'RE RIGHT.

BUT I'M A LITTLE OVERWHELMED RIGHT NOW. BUT THIS IS A GREAT OPPORTUNITY.

WE'RE LOOKING FOR SOMEBODY WHO CAN HELP IMPROVE THE COMMUNITY BUT ALSO CAN MAKE A LIVING DOING IT. IT'S THE SMALLER CONTRACTORS THAT ARE GOING TO LOVE THIS.

>> JOE, YOU MAY NOT KNOW. WORKING ON A DRAINAGE PACKAGE FOR THAT AREA TOO TO HELP WITH

SOME OF THE DRAINAGE ISSUES? >> I HAVE NO IDEA. I KNOW THERE HAS BEEN CERTAIN INFRASTRUCTURE WORK ESPECIALLY DOWN IS IT FOR A MILE IN THAT AREA.

THERE IS QUITE A BIT OF WORK THAT WAS DONE AROUND THE ROUNDABOUT TOO.

THERE IS DEFINITELY SOME WORK THAT ARE HAS BEEN DONE IN THE LAST 24 MONTHS.

I DON'T KNOW WHAT EFFECT IT WILL HAVE ON THESE LOTS. THERE IS A LOT OF WATER MOVING

AROUND BACK THERE. >> KNOW. THIS IS BILL --

[00:55:06]

>> GO AHEAD. >> ARE Y'ALL PUTTING IN RESTRICTIONSES ON REQUIREMENTS ON HOW THE LOTS ARE USED OR WHEN THEY ARE BUILT OR DID YOU GET AWAY FROM DOING THAT.

YOU'RE JUST SELLING THEM. >> I BELIEVE THE BOARD JUST HAD AN INTEREST IN SELLING THEM.

AND NOT DOING THAT. >> THAT IS CORRECT. >> OKAY.

WOULD ANYONE LIKE TO MAKE A MOTION ACCEPTING THE MARKETING PLAN AS PRESENTED TO US?

>> I WILL MAKE A MOTION THAT WE ACCEPT IT AS PRESENTED TO US. >> SECOND.

>> OKAY. ANY DISCUSSION? CALL THE MOTION.

ALL THOSE IN FAVOR. >> AYE. >> MOTION CARRIED.

>> THANK YOU. I'M GOING TO LEAVE THESE WITH YOU JOE SO YOU CAN SIGN AND SCAN

THEM BACK. >> ALL RIGHT. GREAT.

>> I'LL LOOK THEM OVER WITH COUNCIL AND MAKE SURE EVERYTHING IS LINED UP AND WE WILL GO FROM

THERE. >> AND IS THAT SOMETHING THAT I NEED TO SIGN, JOE?

>> IT MAY BE BUT LET ME GET BACK TO YOU MR. KALTER. >> I'LL WAIT UNTIL TOMORROW AFTERNOON TO COME DOWN RATHER THAN THE MORNING SINCE I HAVE TO SIGN THE OTHER DOCUMENT.

>> I'LL TOUCH BASE BEFORE I LEAVE HERE TODAY AND I'LL GET BACK TO YOU.

>> THANK YOU. >> THIS IS HENRY O'CONNELL HERE. IF I'M NOT NEEDED I WOULD LIKE

TO TAKE OFF AND IF Y'ALL NEED ME I'LL BE AT MY OFFICE UNTIL 5:00. >> OKAY.

>> THANK YOU. >> NEXT ITEM UPDATE COMMUNICATIONS WITH CONSULTANTS.

>> SURE. I HAVE AN UPDATE. I HAVE SPOKEN TO MRS. LEE AND HER FIRM THREE TIMES I BELIEVE IN THE LAST TWO WEEKS. SO, THAT IS KIND OF EXCITING STUFF BECAUSE I WAS HAVING A DIFFICULT TIME COMMUNICATING WITH HER.

JUST BASED ON HER OWN I'M NOT SURE IF SHE DOES THIS PART-TIME ANY MORE OR IT WAS JUST BUSY WITH OTHER PROJECTS AND IF SHE HAD A BOUGHT WITH AN ILLNESS AS WELL.

SHE DID TELL ME ON MONDAY THAT INTEREST IN ASSISTING US. SHE IS NOT QUITE SURE WHAT THAT LOOKS LIKE. SHE ASKED THAT I SEND SOME INFORMATION OVER TO HER WHICH I DID INCLUDING THE WHITE PAPER THAT WE DID FOR THE BOARD. I BELIEVE IN JANUARY.

ONE THING THAT SHE DID EXPRESS SOME CONCERN ABOUT WAS AND MAYBE SOMETHING THAT WE NEED TO TALK ABOUT MOVING FORWARD WAS SHE FELT LIKE AN RFP THAT MIGHT BE APPROPRIATE FOR HER SERVICES OR FOR ANY FIRM SERVICES IN THIS CASE RATHER THAN I THINK WE MOVE FORWARD ON SOME THINGS.

I CANNOT REMEMBER THE LEGALESE. TO MOVE FORWARD TO EXPEDITE IT AND GIVEN THE IMPORTANCE OF OUR FINANCIAL SITUATION HERE AT THE BOARD. BUT SHE WANTED TO MAKE SURE WHATEVER PROCESS IF YOU DID DECIDE TO BRING HER ON THAT IT WAS FAIR AND EQUITABLE.

SHE IS SUPPOSED TO SEND ME SOME OF INFORMATION TOMORROW ACTUALLY AND I ANTICIPATE THAT SHE WILL BE AT A MINIMUM WILLING TO COME AND TALK VIA ZOOM AT THE NEXT HFA MEETING.

>> AND AN AD JUNE THE TO THIS -- THE LAND THAT WAS AFFORDABLE HOUSING UP IN -- COUNTY IS SELLING. IS THERE ANY POSSIBILITY THAT THE HFA WOULD BE ABLE TO GET SOME OF THE PROCEEDS TO HELP US HIRE SUCH CONSULTANTS THAT WOULD ALLOW US TO BRING ADDITIONAL

AFFORDABLE HOUSING TO THE COUNTY. >> THAT WOULD BE A REQUEST THAT WOULD HAVE TO GO BEFORE THE BOARD. I CAN PUT THAT IN AN AGENDA ITEM. WE CAN HAVE A DISCUSSION NEXT MONTH.

ALL OF THE DOLLARS -- PRIMARILY FROM DRI FUNDING THAT THE COUNTY RECEIVED YEARS AGO THEY WENT INTO AN A AFFORDABLE HOUSING TRUST OR A TRUST FUND THAT THE COUNTY HAS.

AND THOSE ALL HAVE I GUESS YOU COULD SAY AN ORDINANCE OR SOME TYPE OF REGULATION THAT IS ASSOCIATED WITH THAT FUND AND I WOULD -- THAT WOULD REQUIRE FURTHER REVIEW TO SEE IF THAT WAS ALLOWABLE USE. ONE OF THE THINGS THAT I WAS ASKED TO DO WAS WE CREATED AN APPLICATION PROCESS SO WE COULD TAKE PROPOSALS FROM DIFFERENT NONPROFITS.

[01:00:05]

THE DISCUSSION TOO. >> OKAY. THAT SOUNDS GOOD.

THANK YOU. OKAY. ANY OTHER QUESTIONS FOR -- THIS ITEM? IF NOT WE'VE GOT ONE LAST. THE -- OPPORTUNITY PROGRAM.

>> I HAVE NO NEW MORTGAGE INFORMATION. I WILL TELL YOU THAT I'VE SPOKEN TO MR. REOVIGE. HE HAS PREPARED AN ON-LINE PRESENTATION.

MOST ORGANIZATIONS ARE NOT MEETING IN FLEAS. HE WOULD LIKE TO HE ASK THAT I SCHEDULE A MEETING WITH HIM AND MRS. DENIHINE. HE JUST SENT IT TO US LAST WEEK AND I HAVE NOT HAD AN OPPORTUNITY TO LOOK AT IT AND HE WAS HOPING TO SCHEDULE SOMETHING WITH THE REALTORS IN TOWN AND THEN WE COULD DO SOMETHING ON-LINE AND HAVE AN OPPORTUNITY TO GET MORE INVOLVEMENT IN THE PROGRAM. TWO OR THREE OF THE COUNTIES HE IS CURRENTLY WORKING WITH RIGHT NOW HAVE SEEN SUDDEN BOOST BOOSTS IN IN THEIR PROGRAM.

I'M HOPING TO TAKE ADVANTAGE OF THAT. SOME OF THE DEVELOP E AND REALTORS HAVE TOLD ME THAT THEY ARE AS BUSY AS EVER AND EVERYBODY IS WORKING AWAY.

THAT IS GOOD NEWS FOR OUR ECONOMY AT LEAST. >> OKAY.

ANYONE HAVE ANY OTHER QUESTIONS FOR JOE? HEARING NONE I'LL TAKE A MOTION

TO ADJOURN? >> SO MOVED. >> SECOND.

ALL THOSE IN -- FAVOR. >> AYE. >> MOTION CARRIED.

THANK YOU EVERYBODY.

* This transcript was compiled from uncorrected Closed Captioning.