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DRAFT <br />City of Mounds View <br />Housing Replacement Program <br />If a property meets the blight test, acquisition procedures can continue. If the blight test <br />cannot be met, the interested participant will be notified in writing indicating the reasons why <br />the property cannot be considered for acquisition. <br />2. Need for Variances: If a variance is required to redevelop the property, the EDA may, at <br />its sole discretion, choose not to acquire the property. This determination will be made <br />based on the project time lines, available resources, and availability of other properties <br />which do not require a variance. If the EDA chooses to pursue a variance to enable the <br />acquisition of the property, an application shall be filed following the usual procedures. If a <br />variance is not approved, the property cannot be considered for acquisition. <br />3. Appraisal: Determining Purchase Price: If the EDA chooses to continue with the <br />acquisition, a fee appraisal shall be ordered at the EDA's expense and the result shall be <br />used in determining the amount of the purchase price to offer to the interested participant. <br />The independent fee appraiser shall be carefully instructed to document in specific <br />terms the conditions of the property including details regarding structural condition and <br />floor plan. The acceptance of these conditions in the market place should be discussed <br />in the report. The appraiser's value judgement should reflect these conditions. <br />A negotiated price considerably below the assessor's market value, may be accepted <br />without an appraisal on a case by case basis if the interested participant concurs. <br />4. Purchase Agreement: Closing Procedures <br />a. When both parties have verbally agreed upon a purchase price, Program Staff and <br />Legal Counsel shall prepare a Purchase Agreement to be presented to the <br />interested participant. The purchase price contained in the Purchase Agreement <br />shall be within the range authorized by the EDA. The purchase agreement shall be <br />contingent on the completion of an environmental evaluation suggesting no <br />evidence of hazardous waste on the property. The interested participant shall <br />receive a copy of the purchase agreement including the following information: <br />(1) The purchase price <br />(2) How the purchase price was determined. <br />(3) The amount of earnest money <br />(4) A date to sign the Purchase Agreement <br />(5) A closing date <br />b. To enable the acquisition process to continue, the interested participant must <br />execute the purchase agreement and "waiver of relocation benefits" form. The <br />waiver of relocation must be clearly explained to the interested participant at this <br />time, if not explained previously. <br />Page 4 <br />