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Item No. 9 <br />Staff Report No. <br />Meeting Date: 6-21-99 <br />Type of Business: WK <br />WK. Work Session; PH. Public Hearing; <br />CA: ConsentAgenda; EDAB: EDA Business <br />Mounds View City Council <br />Staff Report <br />To: Honorable Mayor and City Council <br />From: Steve Dorgan, Housing Inspector <br />Item Title/Subject: Housing Replacement Program Policy Amendment <br />Date of Report: June 16, 1999 <br />SUMMARY <br />At the EDA meeting on May 24, 1999 direction was provided by the Authority to amend the <br />Housing Replacement Program (HRP) policy. The proposed policy amendment would require a <br />financial guarantee for properties sold by the EDA for redevelopment purposes. Policy <br />amendments will require a financial guarantee be deposited with the city by the developer that is <br />150% of the land and minimum improvement value. The current HRP policy does not establish a <br />minimum -security requirement for properties sold for redevelopment. A checklist used by staff to <br />track HRP properties is the only mechanism presently used to require financial securities. <br />Amending the policy to include parameters for drafting development agreements will provide <br />more consistency with HRP properties. <br />REQUESTED CHANGES <br />The following reflect specific changes requested by the EDA and provide parameters in the HRP <br />policy for purchase and redevelopment agreements. The inserted text is underlined. <br />Section 8 (Page 6): <br />8. Development Agreement: Closing Procedures <br />a. When a redevelopment proposal submitted by a buver/developer or buver/builder <br />team has been approved by the EDA. Program Staff and Legal Counsel shall prepare <br />a Purchase and Redevelopment Agreement. The selected developer shall receive a <br />copv of the purchase and redevelopment agreement which will include. but not be <br />limited to, the following information: <br />1) Construction of minimum improvements. <br />2) Estimated market value of the propertv and improvements. <br />3) Purchase price. <br />4) Completion date. <br />5) Financial guarantee submitted by the developer with a minimum amount equal <br />to150% of the property and minimum improvement value. <br />