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September 25, 2000 EDA Meeting <br />EDA Item #5A <br />Page 2 <br />The possibility exists that the subject property could become part of a larger redevelopment of the <br />area. Mounds View’s Comprehensive Plan, submitted to the Metropolitan Council for review, <br />envisions a mixed-use planned unit development for the area. The property, and a majority of the <br />adjacent parcels, are located within TIF District #2. <br /> <br />Currently, the house has three bedrooms and 1453 finished square feet. All appliances would be <br />included in the sale. The lot is approximately .4 acres. The exterior of the home is featured below: <br /> <br /> <br /> <br /> <br />Housing Inspector Jeremiah Anderson noted several improvements that could be made including <br />the removal of a fuel oil tank in the basement, the addition of smoke detectors, and several other <br />miscellaneous maintenance issues. Should the EDA purchase the property, it could be rented out <br />until adjacent parcels become available. <br /> <br />After an initial inquiry, the broker for the property indicated that they had received an offer, and were <br />considering a purchase agreement with another party. However, the buyer and seller could not <br />come to mutually beneficial terms, and the sale fell through. As a result, the seller offered the City <br />the opportunity to purchase the home. After examining the home, an offer of $125,000, contingent <br />upon EDA approval, was made on September 18, 2000. Subsequently, the seller has accepted the <br />offer and a purchase agreement was entered into. Of course, the purchase agreement is contingent <br />upon approval of the Economic Development Authority. <br /> <br />Fiscal Implications: <br /> <br />As previously stated, acquiring the house would cost approximately $125,000. A contingency of <br />$5,000 has been incorporated to address any issues that may arise prior to closing should the EDA <br />decide to purchase the property. Additionally, it might be suggested that pre-1997 TIF interest <br />earnings be allocated for this particular project. By doing so, any rental income associated with the <br />property would not be considered tax increment, and not subject to TIF specific requirements and <br />reporting. Alternatively, funds could be taken from the 2000 EDA Special Revenue Fund budget <br />allocation. More specifically, Account 7050: Capital, Real Estate. <br /> <br />A resolution authorizing the purchase agreement and allocating TIF funds has been included for