Laserfiche WebLink
F)Tt <br />I M i <br />a _ <br />City of Mounds View <br />Housing Replacement Program <br />sufficiently to cover increased site clearance and preparation costs. <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 <br />why the property cannot be considered for acquisition. <br />2. Need for Variances: If a variance is required to redevelop the property, the EDA may, <br />at its sole discretion, choose not to acquire the property. This determination will be <br />made based on the project time lines, available resources, and availability of other <br />properties which do not require a variance. If the EDA chooses to pursue a variance to <br />enable the acquisition of the property, an application shall be filed following the usual <br />procedures. If a variance is not approved, the property cannot be considered for <br />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 FDA's expense and the result shall be <br />used in determining the amount of the purchase price to offer to the interested <br />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 <br />and floor plan. The acceptance of these conditions in the market place should be <br />discussed in the report. The appraiser's value judgement should reflect these <br />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 <br />and 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 <br />be 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 />Page 4 <br />