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Item No. Meeting Date 12-15-97 Type of Business EDAB • WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Report To: Mounds View City Council From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Resolution No. 97-EDA78 Approving and Authorizing the Acquisition of 8005 Groveland Road for Redevelopment Purposes and the Execution of a Purchase Agreement for That Purchase Date of Report: December 11, 1997 Per EDA direction, I proceeded with the negotiations for the purchase of 8005 Groveland Road for redevelopment purposes. An appraisal was ordered by the EDA and set the value at $85,000. The owners did their own appraisal that set value at $90,000. The owners have agreed to sell the property to the EDA for $85,000 based on the following conditions. • • Closing would not occur until May 1, 1998. ► Owner will be able to sell outbuildings on the lot and remove the home if possible at no cost to the EDA. This will reduce our costs for demolition and will make up for the difference to the owners for accepting the lower appraised value. ► The EDA will perform an Environmental Assessment of the site prior to closing. If it is revealed that there is any cleanup necessary the parties are able to renegotiate the purchase without penalty. • The owners will be required to have any wells on the property sealed per State law. ► The EDA will provide $500 in earnest money with the balance of $84,500 due at closing. Attached is a basic purchase agreement prepared by Kennedy &Gravin for your review and comment. In addition, attached is a resolution approving the acquisition and authorizing the execution of the purchase agreement. The resolution allows the EDA to purchase the property for redevelopment purposes which allows further evaluation of its reuse. With several opportunities for redevelopment, the site will be evaluated as part of the Comprehensive Planning process with the entire community. • The opportunities will be presented as part of that process and comments and suggestions can be taken at that time.