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06-11-2001
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06-11-2001
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MV EDA
EDA Document Type
Council Packets
Date
6/11/2001
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<br /> <br /> <br />Item No: 8B <br />Meeting Date: June 11, 2001 <br />Type of Business: EDA Action <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; CB: Council Business <br /> <br />City of Mounds View Staff Report <br />To: Honorable President and Commissioners <br />From: James Ericson, Community Development Director <br />Item Title/Subject: Authorization to Purchase the Hazardous Property <br />Located at 2091 Hillview Road <br />Date of Report: June 7, 2001 <br /> <br />Background: <br /> <br />The property located at 2091 Hillview Road has been a thorn in the City’s housing stock <br />and a blight upon the community since 1995. The property owner had been tagged with <br />numerous housing, building and nuisance code violations and chose not to comply with <br />the correction orders. In 1997, the property was foreclosed and HUD became the owner <br />of record. Initially, staff thought this was a step in the right direction in resolving the <br />violations at the property and to get the building back on the rental market. However, <br />after no progress was made, the City Council approved Resolution 5136 which ordered <br />the abatement of the building, which had been determined “hazardous” according to <br />Minnesota Statutes. The resolution authorized the razing and removal of the building. <br /> <br />Subsequent negotiations with HUD ensued, and an agreement was reached by which <br />HUD would correct the building’s deficiencies no later than July 6, 1998. That day came <br />and went and still no action was taken. Discussions with HUD revealed that they would <br />agree to sell the property to the City to expedite the renovation of the property. The <br />purchase agreement was completed and sent to the Denver property management office. <br />After a substantial period of time had passed, Kennedy & Graven contacted HUD and the <br />Denver office, neither of whom had any recollection of the purchase agreement. With <br />much frustration, Kennedy & Graven completed and sent off a second purchase <br />agreement for the property. <br /> <br />Sometime last year, the City became aware that HUD had the property up for bid, after <br />numerous parties stopped in to City Hall inquiring about the building, its deficiencies, and <br />the outstanding work orders. The property was sold, however the buyer was unable to <br />secure financing on the property due to the City’s abatement order. During this time, the <br />City again contacted HUD, asking why they were attempting to sell the property after we <br />(the City and HUD) had a purchase agreement pending. Unbelievably, we were told they <br />had no record of our purchase agreement, and that their property management office had
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