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Mounds View EDA November 14, 2005 <br />Regular Meeting Page 9 <br /> <br />Director Ericson stated it was in 2002 and after that there were some negative experiences with <br />renting out properties and the City realized they did not want to manage rental property. He <br />noted that the City is not set up to be rental property managers. There were problems with the <br />tenants not paying rent and doing damage. The City took the matter into court and received <br />settlements that will never be collected. After that the building was boarded up because it was <br />not worth renting out. <br /> <br />President Marty noted this bid is to demolish a house and the other two structures that were <br />demolished were prefab structures. <br /> <br />Commissioner Flaherty asked why the tenants were not evicted if they were not good tenants. <br />Director Ericson stated the City did evict them but it took a while. <br /> <br />Commissioner Thomas stated the range for demolition does not appear high to her when you <br />consider what is involved with home inspections. She stated that ten years ago when she was in <br />this field, the demolition would be in the range of $12,000 so she is comfortable with the range <br />of $16,000. <br /> <br />Commissioner Gunn noted it also includes two out structures. <br /> <br />President Marty asked how this fits into the City’s redevelopment plans, noting it is by the PAK <br />building. Director Ericson explained that it is zoned commercial and in a redevelopment area so <br />it was purchased in the context of future redevelopment. The City determined to rent it out until <br />there was potential for redevelopment. However, currently it is costing the City money and <br />creating a liability. <br /> <br />President Marty asked about using it for Fire Department training. Director Ericson stated that <br />was researched and determined to not be feasible. <br /> <br />Vice President Stigney asked about getting a written asbestos estimate. Director Ericson stated it <br />would require having an asbestos abatement specialist view the property but staff who has this <br />type of training does not believe it will be a big project because with asbestos floor tile, hazmat <br />suits are not required, just proper disposal. <br /> <br />MOTION/SECOND: Gunn/Thomas. To Adopt EDA Resolution 05-EDA-210, Approving and <br />Authorizing the Expenditure of Tax Increment Funds for the Demolition of 7861 Groveland <br />Road for the Purpose of Future Redevelopment, in an amount not to exceed $16,580 plus <br />asbestos abatement costs, and an additional ten percent contingency buffer to cover any <br />unforeseen or unanticipated expenses. <br /> <br />Commissioner Flaherty stated he does not know what the City paid for this property and the vote <br />is now to spend another $16,000 to demolish it. He stated that the land proceeds will probably