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Item No. 2 <br />Meeting Date: June 4th, 2001 <br />Type of Business: WK <br />WK: Work Session; PH: Public Hearing; <br />CA: Consent Agenda; EDA: EDA Business <br /> <br /> <br />City of Mounds View Staff Report <br />To: President and Members of the Economic Development Authority <br />From: Aaron Parrish, Economic Development Coordinator <br />Item Title/Subject: Review Options and Alternatives for 3016 County Road H2 <br />Date of Report: May 26, 2001 <br /> <br />Background <br /> <br />As the Council is aware, the EDA has authorized the purchase of 3016 County Road H2 to <br />facilitate a residential infill development. Currently, the EDA has control of several parcels <br />in the area. At this point, direction is being requested regarding three issues. First, what <br />would the EDA like to do with the existing single-family residence? The following three <br />options are proposed: <br /> <br />1. Subdivide Property and Sell Existing Single Family Home <br /> <br />The EDA could subdivide the necessary property off the back of the lot leaving a <br />standard 11,000 square foot lot. Subsequent to the subdivision, the EDA could sell <br />the existing single family home as is. With the reduced lot size, it is anticipated that <br />the existing home could be sold for approximately $115,000. The particular <br />advantage for this option is that cash would be immediately available for <br />reinvestment in future projects. The primary disadvantage is the loss of control of <br />the property. <br /> <br />2. Rent Existing Single Family Home Until Development is Further Refined <br /> <br />The EDA could rent the property until more specific development proposals are <br />refined. Once a more specific proposal is advanced, the EDA could either sell the <br />property or include it within the proposed development. Utilizing this option would <br />allow the EDA to maintain greater control over the property while realizing a nominal <br />cash flow. It is estimated that this property would rent for approximately $825 a <br />month. <br /> <br />3. Subdivide the Property, Demolish the Structure, and Resell the Lot <br /> <br />Given the small size of the home, low market value ($66,700 Building; $46,400 <br />market value land; $113,100 total), a fair exterior and a fair interior the property <br />could be considered for housing replacement. However, the EDA has elected not to <br />utilize the Housing Replacement Program on lower quality homes in the past.