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Item No. c 54 Meeting Date: 7-13-98 • Staff Report No. Type of Business: EDAB WK: Work Session;PH:Public Hearing; CA:Consent Agenda;EDAB:EDA Business Mounds View Economic Development Authority Staff Re ort To: Mounds View Economic Development Authority From: Steve Dorgan, Housing Inspector Item Title/Subject: Request for Extension - 8265 Spring Lake Road Date of Report: July 9, 1998 SUMMARY On January 30, 1998,the EDA sold the property located at 8265 Spring Lake Road to Preferred Builders, Inc. for the redevelopment of a 1900 square foot single family home through the Housing Replacement Program. At the time of the sale, the developer and the City entered into a Purchase and Redevelopment Agreement which requires Preferred Builders to complete the construction of the home by July 5, 1998, subject to Unavoidable Delays. The development agreement refers to Unavoidable Delays as: "...delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the • direct result of strikes, other labor troubles, prolonged adverse weather or acts of God,fire or other casualty to the Minimum Improvements, litigation commenced by third parties which,by injunction or other similar judicial action, directly results in delays. or acts of any federal, state or local governmental unit(other than the City or Authority in exercising their rights under this Agreement)which directly result in delays..." At no fault to the developer,the City created a delay due to an error in the Purchase and Redevelopment Agreement pertaining to the vacation of easements which required corrections on behalf of the City. In addition,the developer has indicated that the number of destructive storms in recent months have set back construction schedules as well as available contractors, contributing to the delayed in efforts to complete construction of the home. At this point, the developer has received a building permit for the construction of the home and has prepared the subject site for building. The developer has also indicated that construction will begin on or before July 15, 1998,and will be completed within 90 days. RECOMMENDATION Approve EDA Resolution No. 98-EDA-94 authorizing a 90 day extension to the completion date July 5, 1998, as indicated in the Purchase and Redevelopment Agreement, for the construction of a single family home by Preferred Builders, Inc. for property located at 8265 Spring Lake Road. Steve •Fga Housing Inspector 717-4023 • Attachments: Exhibit A: Letter from Preferred Builders Exhibit B: Resolution No. 98-EDA-94 N:\DATA\GROUPS\COMDEV WOUSING\MVHRP\8265SLR\EDA7 13.REP