03-22-1999 EDA - Laserfiche WebLink

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Item No. Staff Report No. Meeting Date: 3/22/99 Type of Business_ EDA WK• Work Session;PH:Public Hearing; CA:Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Steve Dorgan, Housing Inspector Item Title/Subject: 6991 Pleasant View— Housing Replacement Program Date of Report: March 18, 1999 SUMMARY The EDA purchased 6991 Pleasant View Drive last January as part of the Housing Replacement Program. The city has contracted with Frattalone Excavating for the removal of buildings on the property. Frattalone submitted the low bid of$7,900 for the required work. Demolition and site preparation should be completed by the first week in April. Staff has prepared a draft request for proposal (RFP) for the sale of the subject site. The draft RFP includes minimum home design, minimum price, neighborhood compatibility requirements and site criteria. These requirements were derived from previous outlines used for the sale of HRP properties. Also included is a participation agreement for the sale of the lot. The agreement would be executed at the time a proposal is approved by the EDA. The EDA may choose to set a minimum asking price for the sale of the lot. In June of 1998, the land value of the subject site was appraised at$35,000. It is assumed the market will determine the sale price of the lot, however, the EDA may choose to set the minimum sale price base on the appraised value of the lot. Staff frequently receives requests for vacant residential lots in the city and has compiled a database of these contacts for marketing HRP lots. The demand for single family lots in the city appears to be high. By setting a minimum price for the lot, the EDA establishes a value, which will at least recoup the investment on the land. REVIEW/ IMPLIMENTATION PROCESS Once all the redevelopment proposals have been received, staff will prepare a summary of the bids for review by the EDA. The EDA may then determine which proposal best meets the intention of the program for redevelopment of the subject site. When the proposal has been selected, the EDA will enter into a "Participation Agreement" with the developer. The selected developer is required to provide a deposit of$500 to the city as part of the "Participation Agreement" and enter into a "Purchase and Redevelopment Agreement" within 30 days. The Participation Agreement holds the property exclusively for the selected developer until a "Purchase and Redevelopment Agreement" has been executed between the EDA and developer. Once the "Purchase and Redevelopment Agreement" is executed, the EDA will then sell the property to the developer for immediate construction of the home.