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Mounds View City Council January 9, 2006 <br />Regular Meeting Page 23 <br /> <br />Councilmember Gunn reviewed that there had been a blighted house which stood empty for 1 <br />years. In that case, the City bought the property, cleared it, and now there is an animal hospital in 2 <br />that location. 3 <br /> 4 <br />Councilmember Stigney stated that only cost $145,000, not $675,000. He noted that TIF is not 5 <br />an infinite pool of money and the Council needs to decide where is the best use for TIF. He 6 <br />stated his support to first have a plan that addresses trails and other issues. 7 <br /> 8 <br />Councilmember Gunn stated the Council has an obligation to the City to make County Highway 9 <br />10 presentable. That has been one of the goals, and is still a goal. Councilmember Gunn stated 10 <br />that she thinks this should be done since the City is going ahead with the Highway 10 11 <br />development. 12 <br /> 13 <br />Councilmember Stigney stated the Council should look at how much money is available, what 14 <br />are the priorities, and then create a plan on what can be done with the property. 15 <br /> 16 <br />Mayor Marty asked about the timeline on how quickly the property may sell or if they may drop 17 <br />the price. Director Ericson stated that is difficult to gauge because some properties stay on the 18 <br />market for a long period of time while others sell quickly. He noted this property is blighted 19 <br />enough that some may be reluctant to take it on but he has no doubts that if someone buys it, they 20 <br />will make no appreciable improvements and operate it as is. 21 <br /> 22 <br />City Administrator Ulrich stated there are a lot of activities the City can use TIF for and staff has 23 <br />looked at those in the past. With all the plans done to date, at least part was for property 24 <br />acquisition. He agreed that the City does not want to tie up all TIF with property acquisitions 25 <br />and the intent is not to commit a major portion of TIF. City Administrator Ulrich stated the 26 <br />intent is to buy the property, clean it up, and turn it over in an expedient way. He noted the City 27 <br />has the resource of TIF and it would be a small percentage of the available funds. 28 <br /> 29 <br />Mayor Marty stated in the past the City has purchased the properties, demolished buildings, and 30 <br />sold the properties for less than paid for. However, a new structure was built on the property that 31 <br />was more taxable than the original building. Mayor Marty noted that after the purchase, the City 32 <br />has costs to demolish the building and remove the gas tanks so he expects it may be closer to 33 <br />$800,000. He asked about the EPA coming in to determine whether there are contaminants that 34 <br />have to be addressed. 35 <br /> 36 <br />Director Ericson stated a Phase 1 environmental analysis costs $2,000 to $2,500 and can be 37 <br />completed in several weeks. A Phase 2 environmental study would involve borings and soil 38 <br />sample testing. He stated he would not recommend the City go to that stage without further 39 <br />discussion and direction from the Council. 40 <br /> 41 <br />Mayor Marty stated he feels something needs to be done with this property because it is a 42 <br />reflection on the City’s image. He stated this is what TIF was originally designed for, the 43 <br />purchase of blighted properties or buildings and to turn them around. He stated that out of 44 <br />necessity, he would support going ahead at this time. 45