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Item No. .5 <br /> Staff Report No. <br /> Meeting Date 11-3-97 <br /> • Type of Business WK <br /> WK:Work Session;PH:Public Hearing; <br /> CA:Consent Agenda;EDAB:EDA Business <br /> Mounds View Economic Development Authority <br /> Work Session Staff Report <br /> To: Mounds View City Council <br /> From: Cathy Bennett, Director of Economic Development <br /> Item Title/Subject: Discussion of 8005 Groveland Road under the Housing Replacement <br /> Program <br /> Date of Report: October 30, 1997 <br /> Per EDA direction, I proceeded with the negotiations for the purchase of 8005 Groveland Road <br /> under the Housing Replacement Program. The first offer was at the assessed value of$73,600 <br /> which was turned down by the owners. From there I ordered an appraisal which came in at <br /> $85,000. The owner also had the property appraised at$90,000. On previous purchases the City <br /> has not purchased a home over the appraised value. The owners would be willing to sell <br /> somewhere in between the two appraisals. <br /> 0 I think it is important to evaluate what the goal is of purchasing this home and what the replacement <br /> would be. We have looked at the lot and it is not wide enough to subdivide for two lots. One <br /> alternative would be to sell for the construction of one single family home which has a higher value <br /> than what is existing. Another alternative would be to sell for the construction of one twin home. <br /> The property would then need to be rezoned but the tax benefits would more than just one single <br /> family home. A third alternative would be to try and work with the property owner at 2833 Highway <br /> I 0 and redevelop the area as a commercial use or with a row of townhomes which could act as a <br /> buffer to the single family neighborhood. ( see attached map of area) <br /> The appraisal for the home at 8005 Groveland Road rated the house in good condition. Even though <br /> this home met the criteria under the program for substandard in size, the policy question that should <br /> be considered is if the market can absorb the opportunities with this site or should the City purchase <br /> to facilitate the development that we envision and desire for the area. If the goal is to rehab for <br /> commercial or multi-family, I would suggest that we purchase the home as Highway I 0 <br /> Redevelopment Program rather than Housing Replacement Program. <br /> III <br />