Laserfiche WebLink
City of Mounds View <br /> Housing Replacement Program <br /> • J. Option 2: Acquisition of Property by EDA <br /> 1. Blight Qualification: Once an offering letter is received from the interested participant, <br /> Program Staff will arrange, by appointment, an inspection of the interior of the home to <br /> establish blight qualification as outlined in Section G. In addition, Program Staff will make a <br /> determination as to the potential presence of hazardous materials on the property and will <br /> obtain a statement from the interested participant regarding any knowledge of the property's <br /> use for production, storage, deposit, or disposal of any toxic or hazardous wastes or substances <br /> or asbestos products whatsoever, during the time the interested participant owned the property <br /> and prior to the date of interested participant purchased property. Properties with recognized <br /> environmental conditions or hazards may be considered if the purchase price is reduced <br /> sufficiently to cover increased site clearance and preparation costs. If a property satisfies the <br /> blight conditions as outlined herein, 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 based <br /> on the project time lines, available resources, and availability of other properties which do not <br /> require a variance. If the EDA chooses to pursue a variance to enable the acquisition of the <br /> property, an application shall be filed following the usual procedures. If a variance is not <br /> • 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 used in <br /> determining the amount of the purchase price to offer to the interested participant. The <br /> independent fee appraiser shall be carefully instructed to document in specific terms the <br /> conditions of the property including details regarding structural condition and floor plan. The <br /> acceptance of these conditions in the market place should be discussed in the report. The <br /> appraiser's value judgment should reflect these conditions. A negotiated price considerably <br /> below the assessor's market value may be accepted without an appraisal on a case by case basis <br /> 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 interested <br /> participant. The purchase price contained in the Purchase Agreement shall be within the <br /> range authorized by the EDA. The purchase agreement shall be contingent on the <br /> completion of an environmental evaluation suggesting no evidence of hazardous waste on <br /> the property. The interested participant shall receive a copy of the purchase agreement <br /> including the following information: <br /> • <br /> Page 5 <br />