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• Item No. 7C Staff Report No.EDA-97-88C Meeting Date 10-13-97 III 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 Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Resolution No. 97-EDA75 Approving and Authorizing the Execution of a Participation Agreement for 8265 Spring Lake Road Date of Report: October 10, 1997 Summary: Attached is resolution no. 97-EDA76 (Attachment 1) and a copy of the Participation Agreement (Attachment 2) to enter into negotiations for the sale of 8265 Spring Lake Road with Preferred Builders. In August the EDA approved 97-EDA73 which approved a Participation Agreement with Loren 410 Hansen Construction for 8265 Spring Lake Road. After further thought, Loren did not sign the Agreement and withdrew his interest in the property. Therefore, another letter opening offers on the lot was mailed on September 5, 1997. The letter stated that we would accept offers until October 2, 1997. I received one offer of$28,000 from Preferred Builder, Inc. Preferred Builders, Inc. is proposing to build a three bedroom modified two story single family home with a three car garage and two full baths with an estimated market value of$145,000. Since Preferred Builders do not have a buyer identified at this time the EDA must waive the requirement for a buyer/builder team that is stated as part of the Housing Replacement Program. I have reflected this in the attached resolution. I will encourage the builder to try and secure a buyer prior to execution of the Contract for Private Development(Attachment 3)which will specifically address the requirements for the development of the lot and outline the specifications of the home. In addition, prior to approval of the Contract staff will verify builder references and financial capabilities of Preferred Builders, Inc. Th- contract will come back to the EDA for fmal approval within 30 days. J . ._ LA I .. / Cathy Bennett,wJ i . of Economic 0 evelopment Recommendation: • Staff is recommending approval of the Participation Agreement which would authorize the negotiation for the purchase of 8265 Spring Lake Road by Preferred Builders.