Agenda Packets - 1997/12/08 - Laserfiche WebLink

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Item No. 1 Meeting Date 12-8-97 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 Economic Development Authority From: Cathy Bennett, Director of Economic Development Item Title/Subject: Consideration of Resolution No. 97-EDA77 Approving and Authorizing the Execution of a Purchase and Redevelopment Agreement by and between the Mounds View Economic Development Authority and Preferred Builders, Inc. Date of Report: December 4, 1997 Summary: Attached is resolution no. 97-EDA77 and a copy of the Purchase and Redevelopment Agreement for the sale and redevelopment of 8265 Spring Lake Road with Preferred Builders. In November, Resolution No. 97-EDA75 was approved which authorized the execution of a Participation Agreement with Preferred Builders, Inc. Preferred Builders, Inc. offered $28,000 for the land located at 8265 Spring Lake Road with the proposal 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 after construction. The Participation Agreement acts as a letter of intent to sell the land to Preferred Builders pending the negotiation of the Purchase and Redevelopment Agreement. Preferred Builders has submitted $500 as a nonrefundable fee for the EDA to draft the purchase and redevelopment agreement and evaluate references and financial capabilities for entering into the agreement. Purchase and Redevelopment Agreement: The attached is a dual purpose legal agreement which serves as the purchase agreement for the legal transfer of the parcel of land to Preferred Builders but also allows the EDA to place conditions on the land through satisfactory performance of the requirements under the agreement. If the conditions are not met under this agreement, the EDA may take back possession of the land and any improvements that had been made on the land up to the time of default. Preferred Builders must construct a 1,900 sq.ft. three bedroom modified two story single family residential home, including two full bathrooms and a three car garage. The assessed value for tax purposes must be at least $145,000. However, Preferred Builders indicated to me that they anticipate that the home will sell for at least $180,000 • The agreement states that Preferred Builders will purchase the land for$28,000 with $1,000 of