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Mounds View EDA February 12, 2001 Regular Meeting Page 3 8. EDA BUSINESS A. Provide Direction Regarding the Acquisition of 7890 Groveland Road. Economic Development Director Parish explained the City was approached by the property owner at 7890 Groveland Road with an offer to purchase the property for future redevelopment. The pros and cons of purchasing the property were discussed at the work session and Staff was directed to obtain an appraisal of the property. Staff has obtained and distributed the appraisal to Council. The appraisal ranged from $149,500 to $151,500 which is the range in which the property has been offered to the City. Staff is requesting direction as to how to proceed. President Sonterre indicated he was excited by the opportunity to work with Mr. Johnson on this matter. However, upon further review, the main concern during the work session was for purchasing the property as a means to control future development on the other parcels. Due to the zoning of the parcels the City does have some control over how the parcels will be redeveloped without having to purchase the property. President Sonterre thanked Mr. Johnson for the opportunity. Commissioner Thomas stated the value for the property is in the range expected. The issue was not wanting to divide up the parcels. She indicated she has a problem with breaking up and taking one piece out of the four and leaving the other three with no proposed plan. She indicated she is uncomfortable with purchasing the property at this point. Commissioner Marty stated he was concerned about investing TIF money and was one of the questions raised at the work session. The City is getting a little stretched out when it comes to TIF funds. He indicated he had spoken to Mr. Ericson today and found out the City has a purchase agreement on one of them and if that purchase goes through then the City would have to get very creative with TIF funds that are readily available to use for the purchase. He stated he is uncomfortable with using TIF money for this purchase and would prefer to keep a cushion in the TIF funds in case someone comes before Council asking for help. Community Development Director Ericson indicated he agreed the City would have control over the properties under the current zoning. Concerning the comments of Commissioner Thomas not wanting to break the four pieces of property up the Commission should be aware that the property will be sold regardless of whether the City purchases it or not. So, the parcels will be broken up it is simply a matter of whether the City wants to do it or if the property owner does so by selling to another party. Commissioner Thomas stated it is the property owner’s right to sell but said she does not feel it is the City’s role to play in breaking up the properties.