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The Mounds View Vision A Thriving Desirable Community Item No: 6A Meeting Date: June 24, 2019 Type of Business: EDA Business Administrator Review: ____ City of Mounds View Staff Report To: EDA President and Commissioners From: Brian Beeman, Assistant City Administrator Item Title/Subject: Resolution 19-EDA-324 A Resolution Finding Parcels are Occupied by Structurally Substandard Buildings or Structures and Meet the Requirements of a Redevelopment TIF District Under Minnesota Statutes, Section 469.174, SIBD. 10 for the EDA owned Skyline Motel Site Introduction: The EDA has purchased the Skyline Motel site as a redevelopment opportunity and authorized LHB to conduct a blight and substandard study. LHB has completed that study with a finding that all three parcels of the Skyline Motel property are blight and substandard. As a result, the EDA must pass a resolution establishing the site as blight and substandard before any demolition work can begin. Discussion: A resolution has been prepared for the EDA’s consideration confirming the finding that the Skyline Motel site is blight and substandard. The resolution is required before demolition can begin. The Police Department would like to start training followed by the Fire Department who is considering a controlled burn. Once the resolution has been considered the developer for the proposed Holiday Inn intends to submit a Redevelopment TIF application and staff intends to continue to cooperate with the developer with the intent of signing a Purchase and Development Agreement. Strategic Plan Strategy/Goal: Create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and support redevelopment & development. Financial Impact: Redevelopment projects typically take a loss on the front end of the deal. However, revenues are recovered in the long-term through property taxes, community investment, the creation of more jobs, and an improvement to the property. There would potentially be no financial impact to the EDA in a situation where the EDA would be able to recover the money invested into the purchase of the property. If the EDA is successful in creating a TIF district then according to Ehler’s the EDA can recoup their costs of the project. Recommendation: Consider resolution 19-EDA-324 by motion.