12/04/08, 8:00 A.M.

Pursuant to the e-mail notification dated November 17, 2008, the November / December (year-end) 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, Lee Harris, Ralph Lewis,  Rick Oddo, Scott Buescher, Jason Charcut, and Jim Bowers. Also present were KCMO Councilwoman Beth Gottstein and Sam Alpert. (Doug Price, Lenora Carpenter, Dennis Watts,  Jerry Miller,  Ward Katz,  Bill Charcut, and Ken Riedemann were  absent.)

Chris Erdley convened and presided over the meeting.

The  minutes of the October 30, 2008 meeting were reviewed  and approved  by those present.

KCMO TRASH REBATE- Jim Bowers and Sam Alpert reported that they had been frustrated at not being able to observe any progress in getting the trash rebate payments  processed. They noted a number of inconsistencies in how the City was treating those who were applying for  payment through  October, ‘08.  It was noted that  there is a continuing lack of  communication among  departments and  various City staff.

KCMO BUSINESS LICENSE LITIGATION- Sam Alpert reported that at the direction of Councilwoman Beth  Gottstein, City  staff had been working on the update of  Chapter 40 of the City Code of Ordinances. An effort is being made to address  the way in which apartment properties  are treated as part of an overall consideration of   “businesses” to which a calculation based on gross receipts is currently  being applied for purposes of  a progressive  tax assessment. It has been pointed out that a gross receipts approach is not relevant to the original legislative intent.

JOCO WASTEWATER-  Sam  Alpert reported that he learned at a recent external stakeholders meeting that JOCO Wastewater will increase its EDU charges in 2009 by 24%. He urged those present to review their wastewater expense allocations for at least the past two years in order to determine how the increased expense trending has impacted their operations, accounting for both the annual  EDU assessment and the bi-monthly O&M billings.

2009 PROJECTED OPEARATING BUDGET-  Scott Buescher requested that the Board discuss approval of  the HAA 2009 Projected Operating Budget  that had been circulated at the October 30^th meeting. After discussion of  concerns about a projected operating deficit,  net of  the consideration of  any  special legal defense funding through special assessment,  the Board conditioned its approval on reducing the legal defense allocation estimate from $100,000 to $50,000 (see attached revised approved operating budget).  Further, Sam Alpert was instructed to re-submit  membership billings and to generate a separate special assessment  billing to all KCMO units ($3.00 / unit) to cover immediate legal expenses associated with re-instituting the Trash Rebate program.

NEW BUSINESS-

Sam Alpert and Rick Oddo reported that they had met with HBA officials to discuss the potential impact on the entire development community of the  Leawood  down-zoning  dispute. The HBA is willing to play a supportive role in challenging Leawood’s actions, as they recognize the terrible precedent this would establish.  The HAA and HBA will work together in seeking state legislation that  will definitively  protect a land  owner’s vesting rights.

At  approximately  9:05 a.m. KCMO Councilwoman Beth Gottstein joined the meeting. She indicated her frustration with the way in which the City staff was responding to the Trash Rebate matter.  She went on to discuss her view of the progress that is being made toward  revising  Chapter 40  of the KCMO Code of Ordinances dealing with business license taxes.  She wants to be sure that, to the extent possible, the HAA is on board in formulating an across the board “regulatory” funding structure that will broaden the base and make for a more equitable allocation  of the cost burden. This matter will be brought before the voters.

Councilwoman Gottstein continued the discussion with those still present  with regard to a number of  topics relating to the general development environment, as effected by City policies and process.  The Councilwoman suggested that  the HAA Board might be interested in  meeting with the City’s new CFO, and potentially the City Auditor. Sam Alpert indicated that they would be welcome to attend  the next Board meeting on January 29, 2009. This would provide an opportunity  for some good first hand exchange regarding business license funding  sources and uses, as well as other City revenue issues affecting our owners.

The next regularly scheduled HAA Board of Directors meeting will be held on Thursday, January 29, 2009.

There being no further business to come before the Board, the meeting was adjourned at approximately  10:30 a.m.