07/31/08, 8:00 A.M.

Pursuant to the e-mail notification dated July 21, 2008, the July Heartland Apartment Association Board of Directors meeting was held at the above stated date and time at the HAA offices, 2405 Grand, Suite 106, Kansas City,  MO 64108.

Board members present were: Chris Erdley, Doug Price, Lee Harris, Scott Buescher, Dennis Watts,  Ralph Lewis, and  Jim Bowers. Also present were Lenora Carpenter, Jay Stock, David Andrews and Sam Alpert. (Rick Oddo,  Bill Charcut, Jerry Miller, Ward Katz,  and Ken Riedemann were  absent.)

Chris Erdley presided and convened the meeting, introducing David Andrews of  “The Vintage” (at Zona Rosa) ,  a new principal  member.

The  minutes of the June 26, 2008 meeting were reviewed  and approved  by those present.

KCMO BUSINESS LICENSE LITIGATION- Jim Bowers and Sam Alpert updated those present on the current status of ongoing  negotiations with both the City Council & City Attorney. Pending these talks, and upon the joint  request of the parties to the lawsuit,  Jackson County Circuit Court Judge O’Malley  granted a one year continuance.  At the request of the City Attorney the HAA has outlined its relative “point of beginning” with respect to  restructuring  the business license funding requirement to a flat fee basis  (cost per unit as opposed to paying on a  gross receipts calculation). This is  being advanced with some understanding that  the City may choose to address only  the passive ownership of  multifamily rental units, and not  speak to the gross receipts approach  to any other type of income property.

KCMO TRASH REBATE- As reported in June by  Jim Bowers and Sam Alpert,  after the KCMO Transportation & Infrastructure Committee passed an ordinance to terminate the trash rebate program  out of committee to be adopted by the full City Council,  they had conferred with a number of council members  to advise them of the City’s potential legal exposure. Subsequent to  these communications, the full City Council referred the ordinance back to the Finance & Audit Committee for further consideration. At the same time,  ongoing discussion through a work group designated by the City Manager for purposes of trying to seek a resolution to the current stand off, short of going to court, was to be facilitated.  Upon requesting the City’s progress of  convening negotiations,  the HAA was asked by the City Attorney  to articulate a reasonable settlement of  the dispute.  The HAA (counsel)  responded that  an out of court settlement would entail first bringing all  delinquent rebate payments (+ interest) current, and then to facilitate regular City trash removal  for all multifamily properties comprised of  seven or more units. In the meantime the disputed ordinance referred back to the Finance & Audit Committee is being held indefinitely, pending progress toward an equitable settlement.

KCMO, Lenexa, Mission Rental Registration / Licensing Programs-  Jay Stock presented an observation on why rental properties are continuously stereo-typed  and stigmatized  based on the actions of a few bad tenants.  He stated that individual  neighborhoods had generally not yet received any benefit of the KCMO rental property registration program. Others in attendance observed that  Lenexa’s program  had accomplished nothing more than to generate revenue to the City.  Mission’s program is seen to have a need to generate unnecessary  citations just to validate the outside engineering firm’s  continuing  contract with the City;  which  has created an inappropriate and unethical   financial motivation to  over-regulate rental properties.

ODDO vs. LEAWOOD- Jim Bowers reported that the matter  still appears to be heading to  court, as it is apparent that  Leawood is not inclined to  work out a resolution acceptable to the land owner.  Sam Alpert  cautioned that if the City prevails in its extreme over-reaching  actions, this dispute stands to  set a dangerous regional precedent, and should be viewed as  a serious threat  to all commercial development.

AAKC  LEGISLATIVE FUNDRAISER-  Lenora Carpenter reported that the AAKC Board had undertaken a legislative fundraiser  to be held on September 6th  (see attached  flier with details on 7-Card Poker Run).

RADIO PROGRAM on KCMO-  On  June 26th  Sam Alpert reported that there may be an opportunity to create a broadcast media platform through a weekly program hosted  by Henry. It will be necessary to line up approximately ten sponsors per week under  a proposition posed by KCMO RADIO.  Copies of a mailing to solicit  advertisers were circulated for review. Subsequently,  there has not been adequate sponsorship forthcoming, so for the time being  this initiative will be tabled with the understanding that there is still interest on HAA’s part to co-produce such a broadcast,  should the enabling  sponsors  avail themselves.

NEW BUSINESS- Sam Alpert reported that a reasonable compromise on the KCMO Stream Buffer ordinance had been reached, but that testimony in the Planning & Zoning Committee in support of the compromise would be necessary to ensure there were no final surprises coming from staff and  the City Council. 

Sam Alpert reported that final disposition of  unclaimed KCMO Fire Inspection fee refunds is yet to be determined.  Judge Del Muro will ultimately decide  to  return  unclaimed funds to  the City for discretionary use,  dedicate the funds to an industry appropriate public purpose, or to submit funds to the state under unclaimed property provisions.  The Judge also has discretion to appoint a  “special master” to dig into the City’s inadequate accounting practices  that  precluded identification  of   those who had paid the unlawful fees.

Sam Alpert reported that he had received an appeal originally directed to BOMA from the Missouri Growth Association,  which requests urgent support to counter an initiative petition seeking to sharply limit municipal eminent domain actions that routinely facilitate urban redevelopment that  otherwise could not occur.  He pointed out that such a provision would be extremely detrimental to Kansas City’s  global competitive  position in pursuing large redevelopment  and job creating projects.

Lee Harris noted  that  the Federal Housing Bill,  recently signed into law by President Bush,   contains provisions that  are conducive to tax credit housing development.

Chris Erdley noted that Prairie Village is establishing  a storm water utility , supported by  fees assessed on impervious surface areas.  Sam Alpert commented that  since these impervious square foot calculations  are estimates derived from aerial  photos, it is incumbent on everyone to verify  the assessment.

Chris Erdley  suggested that the HAA re-energize the effort in  Kansas to introduce legislation that would limit the ability of individual  municipalities to levy  user fees without a requirement  to  explore all options and to determine and disclose the  full impact of a fee imposition on those who are required to pay.
 
The next regularly scheduled HAA Board of Directors meeting will be held on Thursday, August 28, 2008.

There being no further business to come before the Board, the meeting was adjourned at approximately  9:25 a.m.