make sure I am thinking through what I need to. I’m sorry I can’t say yes, 14%, not
15%. I don’t feel comfortable doing that now.
Matt Lindquist: to the extent I can put a request out there; I viewed this process initially
as a one-time annual appeal. Can I please charge closer to market rents by going up
to the allowed maximum of 15%? Through my second reading I actually interpret one of
these sentences differently; where it says “no landlord can increase the tenant’s rent
more than 15% in one year. Though justified increases beyond that can be deferred to
subsequent years.” To the extent you want to see myself, my father, and Mr.
Rasmussen again next year, to the extent we can request “can we get a 15% increase
this year and next year” that would be appreciated to the extent you feel comfortable
based on that $1,300 market figure I provided and felt I adequately supported.
Moermond: thank you for bringing that up. It did cross my mind when you were going
over the information and proposing percentage increases from 2022 to 2023. The
ordinance does provide for deferral of rent increases to subsequent years if you need
it. A question I’m wresting with is the proper procedure to do that by. What makes the
most sense. We talked earlier about multiple appeals. I think it is reasonable that you
are looking at a couple of years here. I also think it’s a reasonable to have a check in
point to see where you are actually at with the investments and how things are
progressing. Are you on plan with what you submitted so far, so you wouldn’t have to
do a new application, maybe just update the materials? Procedurally how should I do
that? That I’m not sure of. I think reapplying sounds bureaucratic when you’ve gone
through the paperwork you have. Maybe having DSI have a “tickler” file to reopen in
April 2023 and set up another hearing. I could have Council send it back for me to
look at. I think both could be granted at the same time but I’m not comfortable doing
that with case number 1. I want to make the path as simple as I can but also try to
have foresight about where things will end up being. Is that helping you? What you
spelled out was helpful in how you envision things from 2022 to 2023.
Matt Lindquist: I would be happy to have more of an “ad hoc” type meeting. You
brought up April. Given everything takes 60 days’ notice, it would be helpful to have
clarity in what a multi-year would look like. We’d be happy to provide construction
updates, before and after photos. If we can get all our units to the $1,300, if we don’t
spend $100,000 of our construction budget plus the 20% of overages, don’t grant us
the increases but I have a feeling we will exceed that figure does not fall short,
Moermond: if we were to look at this again next year. You purchased April 11 and
made application for the rent increase May 18. So the timing for reviewing your ask for
another 15% increase would that best be a conversation in May?
Matt Lindquist: if you were to say as “patient zero” you get one genie wish, I would ask
the genie for a decision made by February 28, 2023. Why? Because that would give us
a month or so to figure out where the market is, touch base with our tenants to see if
they want to stay, work though that. That is both best business practice, because I
want tenants to be happy, but also one month of vacancy is expensive. To the extent
we can save that money by keeping them on it may be a lower increase than
anticipated, that makes me happy. It allows us a month to work with our tenants
before needing to give them proper notice the end of March.
Moermond: proper notice for rent increase is on what date in 2023?
Matt Lindquist: it would be June 1, which means we would need to give 60 days’ notice
prior to June 1 of any sort of increase or renewal conversation. We would hope to have
a decision the end of February so we could have March 1 through the end of March to
work out what a renewal could look like. It could be 12 people, assuming we rent out