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WS – Item 3 WORK SESSION STAFF REPORT Work Session Item No. 3 Date: April 1, 2013 To: City Council From: Michael Grochala Re: 401 Birch Street Background The city council received a request from residents in the Spirit Hills development to pu rchase an existing home located at 401 Birch Street. The property was going through the foreclosure process and residents felt that the property could be purchased and developed into a neighborhood park. Staff was directed to research possible funding g rants to supplement a possible special assessment to neighboring properties to support the purchase cost. Review The foreclosure process is complete and the property is bank owned and being marketed by Re/Max. It is staff’s understanding that a purcha se agreement was recently accepted. Following the council meeting staff contacted the Anoka County Housing and Redevelopment Authority (HRA) to inquire about potential funding opportunities. The City of Lino Lakes is not a participating member in the Cou nty HRA so funding opportunities are limited. The HRA does provide funding for redevelopment and/or renovation of properties to provide affordable housing. Acquisition of properties for open space purposes is not a n eli g i ble expense. The County does par ticipate in the Federal Neighborhood Stabilization Program (NSP). Anoka County uses NSP funds to address housing that has been foreclosed upon and is now vacant or abandoned. The funding can be used to bring housing units into compliance with health and s afety requirements and addressing rehabilitation needs or to acquire, demo and resell the property for redevelopment. However, this location does not fall within a designated NSP target area. Staff has reviewed the property for compliance with the City’s property maintenance code. The property generally complies with the exception of limited siding repairs necessary on the property’s west side. The owner has been made aware of the need for these improvements. A new roof was installed on the home in 2007. Staff also requested WSB & Associates to review alternative funding sources. A memo with their results is attached. In summary , there are no grant dollars available for this type of proposed action .