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Item No. 6A Meeting Date: April 12, 2004 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Aaron Backman, Economic Development Director Item Title/Subject: Resolution No. 04-EDA-183, Approving the Acquisition of Tax Forfeited Property described as Lot 36, Knollwood Park from Ramsey County Date of Report: April 12, 2004 Background: On July 22, 2003 the City of Mounds View and Pro Craft Homes signed a pre- development agreement for the single-family residential project referred to as The Woods of Mounds. During the summer of 2003 discussions were held with Ramsey County regarding the City acquiring an additional lot facing Co. Rd H2 (the City had already acquired three tax-forfeited properties earlier). On February 4, 2004 a purchase agreement was signed by the Fyksens, adjacent landowners, and Pro Craft. The developer is planning for lots for 17 homes on the land that will be acquired from the Fyksens and the City of Mounds View. This necessitated the City of Mounds View acquiring tax-forfeited property described as Lot 36 from Ramsey County. On February 23rd the City Council approved Resolution 6200 approving the acquisition of Lot 36. The City issued a check for $68,901.14 on March 9th based upon a written calculation statement provided by Ramsey County. The county cashed the check on March 11th. During the week of March 22nd Ramsey County called indicating that the Mounds View EDA could not acquire the lot in question and that a Housing Redevelopment Authority would need to do so. I explained that we do not have a Housing Authority and that we had previously acquired other tax-forfeited lots without an HRA. On March 29th, Jim Ericson and Backman contacted Kris Kujala from Ramsey County and discussed the matter further. Scott Riggs, Kennedy & Graven, in turn, was instructed to contact the Ramsey County attorney. It is our attorney’s position that there is no requirement for having an HRA to undertake this transaction. Subsequently the Ramsey County attorney asked for additional lanquage citing that the EDA does have the authority to acquire, develop and redevelop real estate. That language is reflected in the new resolution.