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Mounds View EDA August 26, 2013 Regular Meeting Page 2 View, Ramsey County, Minnesota, and Approval of the Terms and 1 Conditions and Purchase Agreement. 2 3 Economic Development Specialist Steinmetz stated the EDA was awarded $100,000 in 4 Community Development Block Grant (CDBG) funding in May of 2012. She explained that the 5 funds must be used to acquire and demolish a vacant and blighted single-family home in Mounds 6 View. The property selected for this project was located at 5420 Adams Street. The home was 7 currently listed at $79,000, which was within the grant amount. 8 9 Economic Development Specialist Steinmetz indicated that after the home was demolished, the 10 EDA would donate the vacant parcel to Habitat for Humanity for construction of a new home for 11 a low income family. Staff requested the Council approve the purchase of the property at 5420 12 Adams Street. 13 14 President Flaherty asked if what the purchase price for the property would be. Economic 15 Development Specialist Steinmetz indicated a purchase price has not been agreed upon, but staff 16 was recommending the EDA offer $75,000. 17 18 Commissioner Mueller asked if the garage would be removed and demolished from the property. 19 Economic Development Specialist Steinmetz stated this would be the intent. 20 21 Commissioner Meehlhause questioned if the EDA had a time limit attached to the CDBG funds. 22 Economic Development Specialist Steinmetz commented there was no deadline however, the 23 County wanted to see the funds used sooner rather than later. She explained that this was the 24 City’s third attempt to purchase a blighted home. 25 26 Commissioner Meehlhause inquired when the property would close. City Attorney Riggs 27 commented the date was uncertain at this time. 28 29 Commissioner Meehlhause asked if the City would be responsible for the 2014 property taxes. 30 Executive Director Ericson indicated the City may be responsible for several months of taxes. 31 This would be determined upon how quickly the property could be demolished and turned over 32 to Habitat for Humanity. 33 34 President Flaherty questioned if the property had any back taxes due to the fact it was a 35 foreclosure. He inquired how the City would proceed with the purchase if there were two years 36 of back taxes. City Attorney Riggs indicated this was uncertain but would be negotiated with the 37 bank. Executive Director Ericson recommended that the EDA walk away from the purchase if 38 the bank was not willing to cover the expense of outstanding property taxes. 39 40 President Flaherty asked if the property had a variance. Executive Director Ericson commented 41 he was uncertain, but would investigate this further. 42