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Mounds View EDA July 12, 2010 Regular Meeting Page 2 7. EDA BUSINESS A. Resolution 10-EDA-260, Authorizing the Expenditure of Tax Increment Financing Funds for the Appraisal of 7968 Edgewood Drive (For Consideration of Purchase Under the EDA’s Housing Replacement Program) Economic Development Specialist Steinmetz stated the EDA created the Housing Replacement Program in 1996. Since that time, the EDA has been involved with the acquisition and/or demolition of about five homes in Mounds View. The objectives of the program are as follows: • Replace deteriorating substandard housing on scattered sites throughout Mounds View with larger, higher value housing designed for owner-occupied families • Eliminate the blighting influence of substandard housing • Increase the availability for quality housing for families The program has the following two options to provide demolition assistance as a ten year/forgivable deferred loan or acquire the property (the EDA will purchase the home and market it to potential buyers). Economic Development Specialist Steinmetz indicated on June 21, 2010, staff received a Housing Replacement Program application from Mr. Ken Nollet, owner of a single-family home located at 7968 Edgewood Drive in Mounds View. Built in 1941, the home sits on a .84-acre lot. Mr. Nollet is asking the EDA to acquire the property. Mr. Nollet inherited the property from his uncle and does not reside in the property (the house is currently vacant). Mr. Nollet works and lives in Japan. Economic Development Specialist Steinmetz stated Mr. Nollet’s application meets the EDA’s Housing Replacement Program criteria. The property is on the City’s list of parcels eligible for acquisition as part of the EDA’s Project Plan for the Mounds View Economic Development Project. In addition, the home qualifies for the Housing Replacement Program’s blight test because of the totality of the home’s deficiencies. Mounds View’s Housing/Code Enforcement Inspector Jeremiah Anderson completed an exterior and interior inspection of the property on July 7, 2010. Economic Development Specialist Steinmetz explained the housing stock surrounding 7968 Edgewood Drive has deteriorated based on the amount of vacant and foreclosed properties located within the neighborhood. She indicated the current County assessed value was $120,000. An adjacent property would be on the market later this year. Unfortunately, the status of the housing stock in this neighborhood is not unlike many neighborhoods in the City. The success of any community includes, but is not limited to, a well-maintained housing stock. Staff recommends that the EDA adopt the Resolution authorizing the expenditures of TIF funds for the