Laserfiche WebLink
<br />Item No: EDA 7A <br />Meeting Date: October 27, 2014 <br />Type of Business: EDA Business <br />City of Mounds View Staff Report <br />To: Mounds View Economic Development Authority <br />From: Heidi Heller, Planning Associate <br />Item Title/Subject: Approval of the Authority's Cancellation of the Purchase Offer for <br />the Property Located at 2665 Ardan Avenue, Mounds View, <br />Minnesota <br /> <br /> <br />Introduction: <br />In May 2012, the Mounds View Economic Development Authority was awarded a $100,000 <br />Community Development Block Grant (CDBG) for the acquisition and demolition of blighted single <br />family homes. The lots would then be transferred to a non-profit housing group for the <br />construction of new homes for low-income families. The City found a willing seller, began working <br />with the Greater Metropolitan Housing Corporation (GMHC) to do the new home construction, and <br />the EDA entered into a purchase agreement with the Seller for the property at 2665 Ardan <br />Avenue. <br /> <br />Discussion: <br />City staff has been working with the Greater Metropolitan Housing Corporation to build a new <br />home in place of a home that has been destroyed by a fire. The grant requires that the new <br />house be affordable to a household at 80% area median income or below, and since it is CDBG <br />funding, Ramsey County doesn’t want the sale price to be over $200,000. After receiving bids for <br />the home construction, and receiving more information from Ramsey County, GMHC determined <br />that they would not be able to make this home work out financially. Neither City Staff nor GMHC <br />wanted to build a smaller or cheaper home just to make it work since that would hurt the existing <br />neighborhood values, and be harder to sell. Since the GMHC will not be partnering on this <br />property, the EDA will no longer be purchasing the property from the owner, and must approve the <br />attached cancellation agreement. <br /> <br />Recommendation: <br />Resolution 14-EDA-287 is attached for the Authority’s consideration which authorizes the <br />cancellation agreement of the authority's purchase offer for the property located at 2665 Ardan <br />Avenue, Mounds View, Ramsey County, Minnesota. <br /> <br /> <br />Respectfully submitted, <br /> Heidi Heller <br />Planning Associate <br />