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Mounds View EDA July 25, 2005 Regular Meeting Page 3 has put together a resolution asking for the Commission’s approval to get an appraisal done on 88 the property and negotiate a price and bring it back for the EDA’s consideration. He stated that 89 they did seek quotes for an appraisal and it could be done for approximately $400.00 90 91 Commissioner Thomas asked what the difficulty is with the homeowners, is it a difficulty in 92 contacting them or are they not willing to do the repairs. 93 94 Director Ericson explained that it is a combination of things noting that they are dealing with a 95 mortgage company and an individual who acquired the property as a potential investment 96 property not realizing there were so many issues with the property. He stated that originally the 97 City was dealing with a pair of property owners that are no longer in the picture and are now 98 dealing with a bank that has never visited or seen the property. He stated that it is difficult trying 99 to convince them that they now need to spend $25,000 to make repairs to a property that they 100 already have $175,000 invested into it. He stated that someone is making the determination that 101 it isn’t prudent to put any more money into the property. 102 103 Commissioner Flaherty asked if the property has been forfeited to the mortgage company. 104 105 Director Ericson stated that there is a property owner noting that he is not sure if there was a sale 106 of the property noting that over the last year the City has been dealing with four different groups 107 in effort to correct the deficiencies. He stated that the current property holder is Deutsch Bank. 108 109 Commissioner Flaherty asked if the City is anticipating forfeiture. 110 111 Director Ericson stated that at this point the City is not anticipating forfeiture. He explained that 112 they are not dealing with a resident they are dealing with an investment corporation. 113 114 Commissioner Flaherty asked if the City knows the loan value of the existing mortgage. 115 116 Director Ericson stated that the City has been told that it is approximately $179,000. He stated 117 that the City would seek an appraisal and offer fair market value for the property, which might 118 not be in that price range. 119 120 President Marty noted that in the Staff report the owner has agreed to a potential purchase by the 121 City and suggested moving forward with the appraisal. 122 123 Vice President Stigney clarified that if the bank now owns the property then they are responsible 124 for the condition it is in and asked if the City has leverage to have them repair the property versus 125 the City. 126 127 Director Ericson stated that Staff is looking at this option and explained that it is time 128 consuming. He noted that legal fees have been expended due to several continuances, delays and 129