05-04-2015 Council Packet - Laserfiche WebLink

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2) The EDA Board finds by resolution (adopted before demolition) that the parcel was occupied by a structurally substandard building and that after demolition and clearance the EDA intends to include the parcel within a TIF district; 3) The City Council adopts resolution and makes blight findings regarding the building (based on report); 4) EDA Board adopts resolution related to use of funds to demo the building (so that the EDA can eventually get paid back with TIF dollars when the TIF District is created; 5) If City is lending the money to EDA to demolish, City Council should also adopt an interfund loan resolution; and 6) EDA (and City, if appropriate) and owner of property should enter into an agreement providing owner's consent to demolish building and EDA's payment for the demolition, with indemnity and hold harmless provisions. An agreement with a developer is not required by the TIF Act if the developer isn't actually demolishing the building. However, for liability reasons, the City/EDA should enter into some type of agreement with the owner. Staff did retain the services of LHB Corporation to determine the eligibility of the property for TIF purposes and to document the condition of the building. As noted in the report the building is significantly substandard. Regardless of the TIF considerations the council may wish to consider entering into an agreement with the property owner to demolish the structure. This would likely come in the form of a petition and waiver agreement that would acknowledge the need for demolition and provide for payment of the costs. Requested Council Direction Staff is requesting council direction regarding: 1) Interest in demolishing the building on behalf of the property owner 2) Interest in preserving ability to use TIF for future project if building is demolished. Attachments 1. 49 Club Letter of Finding, prepared by LHB Corporation.