09-25-2000 - Laserfiche WebLink

Home Browse Search

Mounds View EDA September 25, 2000 Regular Meeting Page 2 4. CONSENT AGENDA None. 5. EDA BUSINESS A. Consider Approval of Resolution 00-EDA-134, a Resolution Approving and Authorizing the Expenditure of Tax Increment Funds for the Acquisition of 7861 Groveland Road for the Purpose of Future Redevelopment. Economic Development Coordinator Parrish addressed the EDA and said at the September 5, 2000 Work Session, Council directed staff to investigate the possibility of acquiring residential property currently for sale located at 7861 Groveland Road. This property is located adjacent to Simon’s Sport Shop, ABC Liquors, and the Park building. The possibility exists that the subject property could become part of a larger redevelopment of the area. Mounds View’s Comprehensive Plan, submitted to the Metropolitan Council for review, envisions a mixed-use planned unit development for the area. The property, and a majority of the adjacent parcels, are located within TIF District No.2. Currently, the house has three bedrooms and 1453 finished square feet. All appliances would be included in the sale. The lot is approximately .4 acres. Housing Inspector Jeremiah Anderson noted several improvements that could be made including the removal of a fuel oil tank in the basement, the addition of smoke detectors, and several other miscellaneous maintenance issues. Should the EDA purchase the property, it could be rented out until adjacent parcels become available. After an initial inquiry, the broker for the property indicated they had received an offer, and were considering a purchase agreement with another party. However, the buyer and seller could not come to mutually beneficial terms, and the sale fell through. As a result, the seller offered the City the opportunity to purchase the home. After examining the home, an offer of $125,000, contingent upon EDA approval, was made on September 18, 2000. Subsequently, the seller has accepted the offer and a purchase agreement was entered into. Of course, the purchase agreement is contingent upon approval of the Economic Development Authority. As previously stated, acquiring the house would cost approximately $125,000. A contingency of $5,000 has been incorporated to address any issues that may arise prior to closing should the EDA decide to purchase the property. Additionally, it might be suggested that pre-1997 TIF interest earnings be allocated for this particular project. By doing so, any rental income associated with the property would not be considered tax increment, and not subject to TIF specific requirements and reporting. Alternatively, funds could be taken from the 2000 EDA