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Mounds View EDA September 25, 2000 Regular Meeting Page 3 Special Revenue Fund budget allocation. More specifically, Account 7050: Capital, Real Estate. Staff recommends 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. MOTION/SECOND: Quick/Thomason. To Waive the Reading and Approve 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. Vice President Stigney inquired as to whether there is a specific plan in place for the future use of this property should the City acquire it. Economic Development Coordinator Parrish explained there is no specific plan but the Comprehensive Plan for the City calls for a mixed-use development in that location in the future. Vice President Stigney indicated he was hesitant to use City funds to purchase the property without a specific plan in place to use the property. He indicated he knows what his property and other properties in the City are valued at and believes a valuation of $125,000 for this property is too high. Economic Development Coordinator Parrish indicated he is somewhat familiar with real estate values in the area and believes $125,000 is a fair market price for the property. Mr. Parrish told the EDA another bid to purchase the property has been submitted which is higher than $125,000. He then told the EDA it may be possible to use pre-1997 interest earnings to purchase the property as they would not be subjected to strict TIF restrictions. Using pre-1997 interest earnings would allow the City to benefit from rental income on the property. Vice President Stigney noted it would take 10 years of rental income to recover the purchase price of the property. Economic Development Coordinator Parrish said he had not priced it out but agreed it would be approximately 10 years before the City would recoup the initial investment. Commissioner Thomason noted she was in mortgage banking for 22 years and based on this experience and her knowledge of the local real estate market she believes $125,000 to be a fair price for the property. President Coughlin called for a vote on the motion. Ayes – 3 Nays – 2 (Marty, Stigney) Motion carried.