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Mounds View City Council January 9, 2006 <br />Regular Meeting Page 23 <br />• Councilmember Gunn reviewed that there had been a blighted house which stood empty for <br />years. In that case, the City bought the property, cleared it, and now there is an animal hospital in <br />that Location. <br />Councilmember Stigney stated that only cost $145,000, not $675,000. He noted that TIF is not <br />an infinite pool of money and the Council needs to decide where is the best use for TIF. He <br />stated his support to first have a plan that addresses trails and other issues. <br />Councilmember Gunn stated the Council has an obligation to the City to make County Highway <br />10 presentable. That has been one of the goals, and is still a goal. Councilmember Gunn stated <br />that she thinks this should be done since the City is going ahead with the Highway 10 <br />development. <br />Councilmember Stigney stated the Council should look at how much money is available, what <br />are the priorities, and then create a plan on what can be done with the property. <br />Mayor Marty asked about the timeline on how quickly the property may sell or if they may drop <br />the price. Director Ericson stated that is difficult to gauge because some properties stay on the <br />market for a long period of time while others sell quickly. He noted this property is blighted <br />enough that some may be reluctant to take it on but he has no doubts that if someone buys it, they <br />will make no appreciable improvements and operate it as is. <br />. City Administrator Ulrich stated there are a lot of activities the City can use TIF for and staff has <br />looked at those in the past. With all the plans done to date, at least part was for property <br />acquisition. He agreed that the City does not want to tie up all TIF with property acquisitions <br />and the intent is not to commit a major portion of TIF. City Administrator Ulrich stated the <br />intent is to buy the property, clean it up, and turn it over in an expedient way. He noted the City <br />has the resource of TIF and it would be a small percentage of the available funds. <br />Mayor Marty stated in the past the City has purchased the properties, demolished buildings, and <br />sold the properties for less than paid for. However, a new structure was built on the property that <br />was more taxable than the original building. Mayor Marty noted that after the purchase, the City <br />has costs to demolish the building and remove the gas tanks so he expects it may be closer to <br />$800,000. He asked about the EPA coming in to determine whether there are contaminants that <br />have to be addressed. <br />Director Ericson stated a Phase 1 environmental analysis costs $2,000 to $2,500 and can be <br />completed in several weeks. A Phase 2 environmental study would involve borings and soil <br />sample testing. He stated he would not recommend the City go to that stage without further <br />discussion and direction from the Council. <br />Mayor Marty stated he feels something needs to be done with this property because it is a <br />reflection on the City's image. He stated this is what TIF was originally designed for, the <br />. purchase of blighted properties or buildings and to turn them around. He stated that out of <br />necessity, he would support going ahead at this time. <br />