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Mounds View EDA July 25, 2005 <br />Regular Meeting Page 3 <br /> <br />has put together a resolution asking for the Commission’s approval to get an appraisal done on <br />the property and negotiate a price and bring it back for the EDA’s consideration. He stated that <br />they did seek quotes for an appraisal and it could be done for approximately $400.00 <br /> <br />Commissioner Thomas asked what the difficulty is with the homeowners, is it a difficulty in <br />contacting them or are they not willing to do the repairs. <br /> <br />Director Ericson explained that it is a combination of things noting that they are dealing with a <br />mortgage company and an individual who acquired the property as a potential investment <br />property not realizing there were so many issues with the property. He stated that originally the <br />City was dealing with a pair of property owners that are no longer in the picture and are now <br />dealing with a bank that has never visited or seen the property. He stated that it is difficult trying <br />to convince them that they now need to spend $25,000 to make repairs to a property that they <br />already have $175,000 invested into it. He stated that someone is making the determination that <br />it isn’t prudent to put any more money into the property. <br /> <br />Commissioner Flaherty asked if the property has been forfeited to the mortgage company. <br /> <br />Director Ericson stated that there is a property owner noting that he is not sure if there was a sale <br />of the property noting that over the last year the City has been dealing with four different groups <br />in effort to correct the deficiencies. He stated that the current property holder is Deutsch Bank. <br /> <br />Commissioner Flaherty asked if the City is anticipating forfeiture. <br /> <br />Director Ericson stated that at this point the City is not anticipating forfeiture. He explained that <br />they are not dealing with a resident they are dealing with an investment corporation. <br /> <br />Commissioner Flaherty asked if the City knows the loan value of the existing mortgage. <br /> <br />Director Ericson stated that the City has been told that it is approximately $179,000. He stated <br />that the City would seek an appraisal and offer fair market value for the property, which might <br />not be in that price range. <br /> <br />President Marty noted that in the Staff report the owner has agreed to a potential purchase by the <br />City and suggested moving forward with the appraisal. <br /> <br />Vice President Stigney clarified that if the bank now owns the property then they are responsible <br />for the condition it is in and asked if the City has leverage to have them repair the property versus <br />the City. <br /> <br />Director Ericson stated that Staff is looking at this option and explained that it is time <br />consuming. He noted that legal fees have been expended due to several continuances, delays and