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Item No: EDA 7A Meeting Date: October 13, 2014 Type of Business: EDA Business City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Heidi Heller, Planning Associate Item Title/Subject: Authorization and Approval of the Authority's Purchase Offer for the Property Located at 2665 Ardan Avenue, Mounds View, Ramsey County, Minnesota, and Approval of the Terms and Conditions and Purchase Agreement Introduction: In May 2012, the Mounds View Economic Development Authority was awarded a $100,000 Community Development Block Grant (CDBG) as part of the Home Investment Partnership (HOME) through the Ramsey County Housing and Redevelopment Authority. The grant was awarded for the acquisition and demolition of blighted single family homes. The lots would then be transferred to a non-profit housing group for the construction of new homes for low-income families. The City initially was going to work with Habitat for Humanity to build the homes, but so far we had been unable to find a property that was acceptable for them and also within our funding limit. Discussion: City staff was recently contacted by the owner of the single family home at 2665 Ardan Avenue. This home had a significant fire on January 17, 2014 that started in the attached garage. The owner has been dealing with the insurance company for several months and the home was finally deemed a total loss. The owner does not want to rebuild and asked if the City would be interested in buying the property for the price of the land value. This lot was a better fit for Habitat for Humanity’s criteria, and there would be enough money from the grant for the purchase and demolition. City Staff made an offer of $50,000 to the owner, which she accepted. Unfortunately the grant funds need to be used soon and Habitat for Humanity’s time frame for construction and the home sale was more than a year out. Staff then contacted the Greater Metropolitan Housing Corporation to see if they could partner with us. They are able to start construction quickly so we will be partnering with them. The grant requires that the new house be affordable to a household at 80% area median income or below. Since it is CDBG funding, there isn’t a set limit for the home price, but Ramsey County wouldn’t want to see it over $200,000. The purchase agreement (attached) with the agreed upon price of $50,000, subject to basic conditions, has been executed by the seller and now awaits EDA consideration. The grant funds are given to the City as reimbursements for the purchase and demolition costs. Recommendation: Resolution 14-EDA-286 is attached for the Authority’s consideration which authorizes and approves the Authority's purchase offer for the property located at 2665 Ardan Avenue, Mounds View, Ramsey County, Minnesota, and approval of the terms and conditions and Purchase Agreement. Respectfully submitted, Heidi Heller Planning Associate