Twin Cities home prices take a 20% plunge

In the Twin Cities, home prices fell 20 percent in January from a year earlier, the largest annual decline on record.
Housing continues to grope for a bottom in the Twin Cities, new numbers out Tuesday show. Local home prices in January took their steepest annual dive yet, according to the latest Standard and Poor's Case-Shiller home price index, while the number of residential construction permits issued locally in March fell to one of the lowest monthly totals on record.
The upshot: Housing, the economic sector that triggered the nation's worst recession in generations, remains ravaged by foreclosure-related activity and still has a backlog of inventory. Buyers benefit, but the slide in values is squeezing household balance sheets and wallets. In the Twin Cities, home prices fell 20 percent in January from a year earlier, according to the Case-Shiller index of home prices in 20 major metropolitian areas. That's the area's largest yearly drop on record, though the index declined less in January than in December, possibly indicating that the bottom is nearby.
The association has been tracking the two local markets separately to illustrate the different dynamics behind the Twin Cities overall median sale price, which now stands at a very low $150,000.

By JENNIFER BJORHUS,
Star Tribune Full Story Here
March 31, 2009

In a Fix: Fill Potholes, Empty Out Wallets

For cash-strapped Minnesota residents, street upgrades are a low priority. In metro-area suburbs, they're letting local officials know it.
When Michelle DeMarre learned that Maplewood was planning to slap a $7,000 tax assessment on her home to pay for new street and storm sewers, she was incredulous.
"During these economic times, they're asking for $7,000!" DeMarre exclaimed. "There were people at these public meetings [on the street proposal] who didn't even have a job.
We told the city, 'Now is not the time.'" It's a message being heard in suburbs across the metro area. With bulldozers revving up for spring construction season, many suburbs are finding loud opposition to local construction projects that in better days were OK'd by area homeowners with little more than a grumble.
Homeowners boast some success.
Last fall, Centerville chopped in half the $7 million price tag for a street improvement after bitter community complaints.
In January, Maplewood canceled its construction plans for DeMarre's neighborhood.
Last month, Bloomington sliced 1 mile out of its 5-mile road construction plan for 2009.
Some cities, however, worry that delaying repairs could end up costing more in the future. While residents have opposed these tax assessments in the past, it's been particularly swift and vocal this year, said Chuck Ahl, public works director for Maplewood.
Plymouth homeowners, for example, began organizing against a street improvements plan this winter long before a public hearing was even scheduled, said Lori Ahrens, city manager. "I think you'll see an overall downturn in normal public works projects," said Jim Miller, executive director of the Minnesota League of Cities.
In the current market, "it may be more difficult to demonstrate that property values will rise in relation to the amount of the assessment, which is required by law. And people may not have the ability to pay."
Star Tribune Link

Keep standing tall Centerville residents! Together we have a voice and together it will continue to be heard!!

Two Centerville Pond Projects Postponed

The Centerville City Council learned at its March 11 meeting that two of the city's pond projects have encountered obstacles.
The 2009 Pond Dredging Project could not be completed before warm weather and weight restrictions imposed by the Minnesota Department of Transportation set in. City Engineer Mark Statz said the project would be abandoned until January of 2010 or earlier, depending on when the ground freezes again.One pond project was originally meant to drain water from downtown redevelopment into land owned by St. Genevieve Catholic Church. According to City Administrator Dallas Larson, it was suggested that the proposed pond be relocated to the southwest corner of Laurie LaMotte Memorial Park due to complications at St. Genevieve.
Now there are complications at the park.
The city's Parks and Recreation Committee said the southwest corner chosen for the pond is the only area in the park suitable for a soccer field, and that the Soccer Association has already invested money in that field.
The parks committee recommended that the pond be located in the southeast corner of the park for safety reasons, but the city preferred the larger storage capacity of the southwest corner.
On March 4, the Parks and Recreation Committee unanimously opposed the pond being located in the southwest corner of the park.
If the city is unable to secure the southwest corner, Larson and Statz said they’ll look at other alternatives and keep the southeast corner in reserve, in case they don't find another site for the drainage pond.
Quad Press

Link Here to view Centerville LGA history.

Link to 3/3/2009 story Here

Bill could clear path to local tax hikes

Annual 'truth in taxation' hearings would be optional
Associated Press

Legislation advancing in the Minnesota Senate would let cities and counties raise property tax levies without state interference, published notices in newspapers or annual hearings where taxpayers vent their frustrations. Senate Taxes Committee Chairman Tom Bakk said extra state aid was supposed to help local governments cope with levy limits, but the money has dried up with the meltdown. He said Democrats held out for the aid as part of last year's budget deal with Gov. Tim Pawlenty.
Bakk's bill would nix "truth in taxation" hearings late in the year — annual meetings where taxing authorities present their budgets and taxpayers react and ask questions. Bakk said the meetings are costly but don't always draw crowds. He suggested that governments could let the public weigh in at their regular meetings instead.
The bill's next stop is the Senate Rules and Administration Committee.

The city administrator cautioned to be careful what is said on this blog about the preliminary 2009 budget.

We choose to say nothing, yet. The preliminary budget speaks for itself. Click image for larger print.

Phasing Out of Phase One?

Click on map to bring up larger image.
Last evening the Beard Group addressed phase one. The sections include B, C, D and I.
Ron Mehl of the Beard Group made a presentation to council suggesting increased demand for affordable rental housing. Section D appeared to be the only area being seriously considered at this time.

B 14,000 SF Rental/Office
(This is a hard sell for an anchor tenant. Capra interested in bringing Trader Joe's to town).

C. 48 Multi Family Units/15,000 SF Rental/Office
(Lenders are not financing at this time without 75% pre-sold).

D. 41 Multi Family Units (Affordable)
(Increased funds and demand for this now but purchase agreement must be renewed with Centerville).

I. 40 For Sale Town homes
(There's been a 40% decrease since 2007 and National builders have no interest at any price).

Ron Mehl concluded the meeting by stating to Council, "If you would like to talk with other developers at this time, we are fine with that. We don't want to hold the City up." He also mentioned that he was not interested in "entering a suicide pact."

To view the entire Downtown development plan as outlined last year
Click Here

Process Begins for New Centerville Trails

At its Feb. 25 meeting, the Centerville City Council started the process of making sure the Transportation Enhancement Trail Grant project becomes reality.
“We want to make sure we are poised to take advantage of that money if it comes available to us,” said City (Bonestroo) Engineer Mark Statz. The Minnesota Department of Transportation has said that Centerville is a viable candidate to receive funding, he added.

The first order of business for the council was to approve consideration of a plan and fee proposal from Bonestroo, a St. Paul-based engineering firm, for the Transportation Enhancement Trail Grant project. For its designs and permit submittal work, Bonestroo will receive $128,000 in fees.
The next task for the city is to make offers to purchase right of ways from property owners along the proposed trail.
In other actions, the council:
*Unanimously awarded the contract for the 2009 Pond Dredging Project to the lowest qualified bidder, Dresel Contracting Inc., for $73,525.
*Unanimously approved consideration of Bonestroo's scope and fee proposal of $3,000 for construction services on the 2009 Pond Dredging Project. Work will begin immediately to take advantage of cold temperatures and last approximately three weeks, Statz said.
*Unanimously authorized the city administrator to enter into a contract for soil borings and engineering reports, not to exceed $10,000, for a pedestrian bridge.
*Unanimously authorized the city attorney to begin litigation for delinquent assessment payments against Fairview Street (Royal Oaks Realty).
*Approved special assessment agreements for the 2009 Street Improvement Project.
Quad Press
Full Story Here