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Item No. 5B Meeting Date: December 11, 2000 Type of Business: EDA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; EDA: EDA Business City of Mounds View Staff Report To: President and Economic Development Authority From: Aaron Parrish, Economic Development Coordinator Item Title/Subject: Network Liquors Sheriff’s Certificate Date of Report: December 8, 2000 Background: The property located at 2345 County Road H2, commonly referred to as Network Liquors, is currently in default on a loan from Associated Bank. Accordingly, the property is in foreclosure and in the redemption period. As such, we have inquired about the possibility of acquiring the “Sheriff’s Certificate” for the property. By purchasing the “Sheriff’s Certificate,” the EDA would have title to the property if the borrower, Mr. Robert Waste, failed to pay the outstanding loan amount with interest by the end of the redemption period. Associated Bank has indicated that the price to acquire the certificate would be approximately $68,000. The property consists of a retail operation and single-family residence. The retail space is leased to the operator of Network Liquors. Mr. Robert Waste currently occupies the single-family residence. Additional considerations include the current status of the Network Liquors lease, potential relocation issues associated with the residence, demolition costs (expected to be approximately $10,000 or less), and costs associated with obtaining clear title to the property (fees from Kennedy and Graven). Without reviewing the foreclosure documents, Assistant City Attorney Scott Riggs gave a preliminary indication that the lease would void with the termination in ownership, and that relocation benefits would likely not be an issue. The following may also be useful: Land Area: 17,444 s.f.; .4 acres Building Footprint: 4340 s.f. 2000 Net Tax Capacity: Commercial = $1541 Homestead = $ 760 TOTAL = $2301 Given the above opportunity, staff is requesting the EDA’s authorization to purchase the Sheriff’s Certificate. For bookkeeping purposes, Associated Bank would ideally like to finalize the transaction by the end of the year. TIF funds are the proposed source of financing to purchase the certificate. Necessary Actions: Consider Resolution 00-EDA-139 Authorizing the Expenditure of TIF Funds to Purchase the Sheriff’s Certificate for 2345 County Road H2. ______________________________________ Aaron Parrish, Economic Development Coordinator (763) 717-4029 Attachment #1: Resolution 00-EDA-139