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Mounds View Planning Commission August 3, 2005 <br />Regular Meeting Page 9 <br />________________________________________________________________________ <br /> <br />Community Development Director Ericson reviewed the staff report indicating the property <br />located at 2617 Sherwood Drive is vacant and currently uninhabitable. Since 1998 there have <br />been several present and persistent issues including many nuisance and building code violations. <br />He noted at some point, the owner defaulted on the mortgage and the City began anew with the <br />mortgage company and a new owner in an effort to correct the property violations. After the <br />corrections were continually not followed through, the City brought action before the City <br />Council on October 11, 2004 to declare the building hazardous and to authorize the abatement of <br />the hazardous conditions. <br /> <br />Director Ericson stated the City received permission from the property owner to conduct an <br />appraisal of the property with the intent of submitting an offer to buy the parcel and demolish the <br />building. He noted there has been no appraisal yet. <br /> <br />Director Ericson noted Staff and City Council is requesting the Planning Commission review the <br />proposed acquisition of the property (terms will be negotiated at a later date upon City Council <br />approval) to ensure consistency with the Comprehensive Plan. <br /> <br />Acting Chair Miller asked if it could be divided into two lots. Director Ericson stated the <br />problem is that Greenwood Drive is not there. He noted there is potential for future <br />redevelopment; that is likely why the mortgage company bought it site unseen, because of the <br />possibility of a subdivision. He stated the owner has granted consent to the City for an appraisal. <br /> <br />Acting Chair Miller stated some feel the City should not be purchasing property. Director <br />Ericson replied some times things do not happen and this is an opportunity to acquire the <br />property from a willing seller. <br /> <br />Commissioner Zwirn asked if the owner is the mortgage company and, if so, have they gone to <br />or sent a representative to the property. Director Ericson stated the mortgage company is the <br />owner; however, it is a strange situation because the individual granting access is local although <br />other entities have an interest in the property. He noted he has dealt with four different entities, <br />the current owner is an investor or broker, and the local individual is owner of record who is <br />dealing with the mortgage company. <br /> <br />Commissioner Scotch asked if the property was foreclosed on and if so is it in redemption. She <br />noted if it is in redemption the broker may invest in the property and resell it. Director Ericson <br />stated the value is not there to support a mortgage and the owner cannot afford to fix it. He <br />added the City does not want to reward the owner for failing to correct the violations and <br />certainly does not want to see the owners profit from the transaction. However there is an <br />immediate need to resolve the situation and this is one such solution. The City would not offer <br />more than the property’s value, based on the appraisal. <br /> <br />Commissioner Zwirn asked if the taxes are current. Director Ericson stated he believes so, that <br />the first half of the year has been paid. He added there would be a condition that taxes would be <br />paid up until the property is acquired. <br /> <br />Commissioner Hegland asked if the City was not going to take on liens, etc. Director Ericson <br />stated that is correct.