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DRAFT <br /> City of Mounds View <br /> Housing Replacement Program <br /> If a property meets the blight test, acquisition procedures can continue. If the blight test <br /> cannot be met, the interested participant will be notified in writing indicating the reasons why <br /> the property cannot be considered for acquisition. <br /> 2. Need for Variances: If a variance is required to redevelop the property, the EDA may, at <br /> its sole discretion, choose not to acquire the property. This determination will be made <br /> based on the project time lines, available resources, and availability of other properties <br /> which do not require a variance. If the EDA chooses to pursue a variance to enable the <br /> acquisition of the property, an application shall be filed following the usual procedures. If a <br /> variance is not approved, the property cannot be considered for acquisition. <br /> 3. Appraisal: Determining Purchase Price: If the EDA chooses to continue with the <br /> acquisition, a fee appraisal shall be ordered at the EDA's expense and the result shall be <br /> used in determining the amount of the purchase price to offer to the interested participant. <br /> The independent fee appraiser shall be carefully instructed to document in specific <br /> terms the conditions of the property including details regarding structural condition and <br /> floor plan. The acceptance of these conditions in the market place should be discussed <br /> 110 in the report. The appraiser's value judgement should reflect these conditions. <br /> A negotiated price considerably below the assessor's market value,may be accepted <br /> without an appraisal on a case by case basis if the interested participant concurs. <br /> 4. Purchase Agreement: Closing Procedures <br /> a. When both parties have verbally agreed upon a purchase price, Program Staff and <br /> Legal Counsel shall prepare a Purchase Agreement to be presented to the <br /> interested participant. The purchase price contained in the Purchase Agreement <br /> shall be within the range authorized by the EDA. The purchase agreement shall be <br /> contingent on the completion of an environmental evaluation suggesting no <br /> evidence of hazardous waste on the property. The interested participant shall <br /> receive a copy of the purchase agreement including the following information: <br /> (1) The purchase price <br /> (2) How the purchase price was determined. <br /> (3) The amount of earnest money <br /> (4) A date to sign the Purchase Agreement <br /> (5) A closing date <br /> b. To enable the acquisition process to continue, the interested participant must <br /> • execute the purchase agreement and "waiver of relocation benefits" form. The <br /> waive r of relocation must be clearly explained to the interested participant at this <br /> time, if not explained previously. <br /> Page 4 <br />