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Item No: 6A Meeting Date: February 14, 2022 Type of Business: EDA City Administrator Review: ______ City of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Assistant City Administrator Item Title/Subject: Resolution 22-EDA-354, A Resolution Authorizing the Purchase of Real Property Background At the April 5, 2021 Council worksession the City Council reviewed a variety of redevelopment sites. One of those sites reviewed was the Arden Park area. Since the April worksession a residential property located at 8271 Long Lake Rd and adjacent to the City owned property at 8283 Long Lake Rd has come up for sale. This is an opportunity for the EDA to assemble parcels in the Arden Park area for future development as the parcels become available. The Arden Park redevelopment area has the potential for a future multi-family development ideally townhomes or a similar product. At the September 13, 2021 Closed EDA session, the EDA agreed to make an offer on the property located at 8271 Long Lake Rd. That offer was rejected. At the January 24, 2022 Closed EDA session the EDA agreed to increased their offer price and that offer was verbally accepted subject to the City taking care of the sewer line inspection and the owner’s written acceptance in a purchase agreement. The EDA’s attorney at Kennedy & Graven has prepared a purchase agreement for the subject property for the EDA’s consideration. Discussion The residential property located at 8271 Long Lake Rd has recently been used as a rental property, however the property is currently vacant and has been listed for sale at $145,000. Staff was able to negotiate to an offer price of $119,000. If the EDA were to purchase the property, additional costs would be incurred such as demolition, removal of the propane tank, asbestos, lead, and other costs. The EDA to review and discuss the proposed purchase agreement. Strategic Plan Strategy/Goal Maintain a positive business climate where businesses want to locate and remain in mounds view. Finance top redevelopment areas Industrial/Commercial/Residential. Financial Impact Funds are available for redevelopment purposes. Recommendation Staff recommends that the EDA approve Resolution 22-EDA-354, a resolution authorizing the purchase of real property located at 8271 Long Lake Rd. Respectfully submitted, ______________________ Brian Beeman Assistant City Administrator Attachments(s): 1) 22-EDA-354, A Resolution Authorizing the Purchase of Real Property 2) Purchase Agreement