08/11/2010 Council Packet - Laserfiche WebLink

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• • WS — Item 8 WORK SESSION STAFF REPORT Work Session Item 8 Date: August 11, 2010 To: City Council From: Mary Alice Divine Re: Legacy Update Background Earlier this Spring city staff reviewed the status of the Legacy project with the city council and a proposal to Anoka County to purchase the land that was due to be forfeited in July 2010. The goal was to by -pass the extended repurchase process and attempt to get the property back into private ownership in the timeliest manner. The city made the case that the value of the property was essentially the amount equal to the delinquent taxes that the County would have received absent forfeiture. The city also requested that the purchase be paid for as panels were sold to private parties. The County responded that it was unable to follow the process the city requested. The County is required to sell the property for the appraised value. The County does not take into account the assessments attached to the property, and therefore has placed a significantly higher value on the property. The County also does not statutory process that would allow the City to pay the County on an installment method that the city had requested. Alternatively, staff was working with the loan servicer to come to an agreement to sign over the deed to the city before forfeiture. The banks concluded they wanted to be paid for the property and the properties have been forfeited. Since the property is now in the repurchase phase of the process, staff and consultants have considered other options available. Legislation passed this session which now allows a County to sell property for less than the appraised value for the purpose of redevelopment of blighted properties and affordable housing. The consulting attorney 1