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Mounds View EDA August 26, 2013 <br />Regular Meeting Page 2 <br /> <br />View, Ramsey County, Minnesota, and Approval of the Terms and <br />Conditions and Purchase Agreement. <br /> <br />Economic Development Specialist Steinmetz stated the EDA was awarded $100,000 in <br />Community Development Block Grant (CDBG) funding in May of 2012. She explained that the <br />funds must be used to acquire and demolish a vacant and blighted single-family home in Mounds <br />View. The property selected for this project was located at 5420 Adams Street. The home was <br />currently listed at $79,000, which was within the grant amount. <br /> <br />Economic Development Specialist Steinmetz indicated that after the home was demolished, the <br />EDA would donate the vacant parcel to Habitat for Humanity for construction of a new home for <br />a low income family. Staff requested the Council approve the purchase of the property at 5420 <br />Adams Street. <br /> <br />President Flaherty asked what the purchase price for the property would be. Economic <br />Development Specialist Steinmetz indicated a purchase price has not been agreed upon, but staff <br />was recommending the EDA offer $75,000. <br /> <br />Commissioner Mueller asked if the garage would be removed and demolished from the property. <br /> Economic Development Specialist Steinmetz stated this would be the intent. <br /> <br />Commissioner Meehlhause questioned if the EDA had a time limit attached to the CDBG funds. <br />Economic Development Specialist Steinmetz commented there was no deadline however, the <br />County wanted to see the funds used sooner rather than later. She explained that this was the <br />City’s third attempt to purchase a blighted home. <br /> <br />Commissioner Meehlhause inquired when the property would close. City Attorney Riggs <br />commented the date was uncertain at this time. <br /> <br />Commissioner Meehlhause asked if the City would be responsible for the 2014 property taxes. <br />Executive Director Ericson indicated the City may be responsible for several months of taxes. <br />This would be determined upon how quickly the property could be demolished and turned over <br />to Habitat for Humanity. <br /> <br />President Flaherty questioned if the property had any back taxes due to the fact it was a <br />foreclosure. He inquired how the City would proceed with the purchase if there were two years <br />of back taxes. City Attorney Riggs indicated this was uncertain but would be negotiated with the <br />bank. Executive Director Ericson recommended that the EDA walk away from the purchase if <br />the bank was not willing to cover the expense of outstanding property taxes. <br /> <br />President Flaherty asked if the property had a variance. Executive Director Ericson commented <br />he was uncertain, but would investigate this further.