10/25/07, 8:00 A.M.

Pursuant to the e-mail notification dated October 15, 2007, the October 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: Doug Price, Chris Erdley, Jim Bowers, Ward Katz, and Scott Buescher. Also present were Jay Stock, Henry Lyons, Jim Beverlin, Mike Flynn, Barry Burson, and Sam Alpert. (Lee Harris, Ralph Lewis, Jerry Miller, Bill Charcut, Ken Riedemann, Rick Oddo, Jim Adams, and Dennis Watts were absent.)

Mike Flynn and Barry Burson of Epic Landscape Productions made a brief presentation on their landscape services company, and then departed the meeting.

Jim Beverlin made a brief presentation on West & Associates.

The minutes of the September 27th meeting were reviewed with no comment, but not formally approved in the absence of a quorum.

KCMO BUSINESS LICENSE LITIGATION- Jim Bowers reported that he and Sam Alpert had met with Councilwoman Beth Gottstein in hopes of successfully conveying HAA's specific concerns as the City prepares to rework the basis on which all businesses in KCMO are assessed annually for a business license. The HAA will continue to pursue a reasonable out of court settlement while simultaneously working through the discovery process for a mid-July trial date.

KCMO FIRE INSPECTION LITIGATION - Sam Alpert reported that there had been a letter sent to the City by Lathrop & Gage demanding payment of approx. $71,000 in legal fees that had been accrued during the initial trial phase of the lawsuit. There is a request for an additional amount of approx. $41,000 for legal fees associated with the post trial appeals process, which culminated in September with the MO Supreme Court refusing to hear the City's final appeal. In addition to the legal fees, the City is required to refund the fire inspection fees it collected from all businesses beginning in 2003. The City had claimed that its records were insufficient to allow it to affirmatively refund fees, suggesting that first all plaintiffs be identified and individually apply for their respective refunds. The City would then advertise (minimally) in the KC Star and the Business Journal for those who had paid to come forward with proof of payment. Sam Alpert had discussed this response from the City with Mike Abrams of Lathrop & Gage and recommended to the Board that the plaintiffs should not be obliged to apply individually, and that other business owners should be contacted by the City to attempt to initiate a refund to the business "parcel ID" from which it was received. Those in attendance agreed that anyone who had paid the fees should be entitled to an affirmative refund effort from the City.

KCMO RENTAL REGULATION - Sam Alpert reported that the KCMO rental registration ordinance had been adopted, but it was concerning that the City was not making an effort to reach out to the numerous owners at large who are not aware of this significant development. He had suggested to City officials that press and print media coverage, as well as paid advertising and PSAs would be in order.

LENEXA RENTAL REGULATION - Even after overwhelming testimony in opposition, Sam Alpert and Jim Bowers reported that the Lenexa City Council had arbitrarily and unanimously adopted the rental licensing ordinance on October 16th. While numerous due process questions remain, Mr. Bowers advised that until a situation of a specific abuse or constitutional violation arises, it would be extremely difficult to petition the courts to enjoin the City from enforcing the questionable provisions of the ordinance. It was suggested that all significant owners be notified to be vigilant for inappropriate actions taken by the City.

2008 HAA OPERATING BUDGET PROJECTION - Sam Alpert distributed copies of the 2008 operating budget to be considered prior to the year end meeting, scheduled for December 4, 2007. It was noted that there would still be questions surrounding the cost of pending litigation and the potential for additional ballot issues arising in the coming year.

NEW BUSINESS - Sam Alpert distributed a letter he had received from Christine Lee on behalf of the AAKC. The letter expressed frustration over limited financial resources from which the AAKC would need to derive a payment in support of HAA activities. It also went on to express a general disappointment that AAKC was not receiving enough public recognition for its support of HAA activity.

Sam Alpert reported that he has been participating on a JOCO Solid Waste task force that is anticipating the closing of the JOCO landfill (the region's primary solid waste handling facility) by the year 2027 (maybe before 2020). This development is likely to result soon in the formation a regional "solid waste utility".

Sam Alpert and Jim Bowers reported that a far reaching "stream set-back" ordinance could soon be before the KCMO City Council. The ordinance could sharply reduce some property values, and effectively take a large percentage of undeveloped land within the city limits completely out of production.

As is the year end holiday schedule tradition, the next regularly scheduled meeting of the HAA Board of Directors will be held December 6, 2007 (combining the November and December monthly meetings).

There being no further business to come before the Board, the meeting was adjourned at approximately 9:30 a.m.