HomeMy WebLinkAbout01-13-1997 EDA� F ;. — ___ � � > � _3 .-
City of Mounds View
ECONOMIC DEVELOPMENT I�UTHORITY
January 13, 1997
Meeting No. 30
AGENDA
1. CALL TO ORDER
2. ROLL CALL - President McCarty
Vice President
Secretary
Commissioner
Commissioner
3. APPROVAL OF AGENDA
EDA ACTION: ATD
Comments:
4. APPROVAL OF MINUTES:
November 25,1996
EDA ACTION: ATD
Comments:
5. CONSENT AGENDA
No items on consent agenda.
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EDA
PAGE TWO
JANUARY 13, 1997
6. PUBLIC HEARING
No public hearing scheduled for this nleeting.
7. EDA BUSINESS
A. Consideration of Resolution No. 97-EDA57 Approving the Appointment of the
Econoinic Development Authority Officers. Staff Report No. EDA-97-63C
EDA ACTION: ATD
Comments:
B. Consideration of Resolution No. 97-�DA58 Reappointing Members of the Economic
Development Commission and Designating EDA Liaisons. Staff Report No. EDA-
97-63C
EDA ACTION: ATD
Comments:
C. Consideration of Resolution No. 97-EDA59 Approving and Authorizing the
Acquisition of 8283 Long Lake Road under the EDA's Housing Replacement
Program. Staff Report No. EDA-97-64C
EDA ACTION: ATD
Comments:
D. Consideration of Resolution No. 97-EDA60 Initiating Process for Consideration of
a New Tax Increment Financing District.
EDA ACTION: ATD
Coinments:
E. Discussion of Bel Rae Project
EDA ACTION:
Comments:
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EDA
PAGE THREE
JANUARY 13, 1997
F. Everest Discussion
EDA ACTION: ATD
Comments:
8. REPORTS:
Re�ort of EDA Board Members:
1. Report of President McCarty:
2. Report of Vice President
3. Report of Secretary
4. Report of Commissioners:
a. Commissioner:
b. Commissioner:
5. Report of Executive Director:
6. Report of Treasurer:
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REQU�ST FOR EDA CONSIDERATION
STAFF REPORT
EDA MEETING DATE
January 13, 1997
Agenda Section 7A, B
ReportNumberEDA-97-63 C
Report Date: 1/9/97
Special Order of Bus.
Consent Agenda
Public Hearings
X Council Business
Item Description: Consideration of Resolution Nos. 97-EDA57 Approving the Appointment of the EDA
Authority Officers and 97-EDA58 Reappointing Members of the �DC and Designation EDA Liaisons
Administrator's Review/Recommendation:
-No Comments to supplement this report
-Comments attached.
Explanat�on/Summary (attach supplentent sheets as necessary)
.Suinmapye
As a result of discussion at the January 6, 1997 worlc session attacl�ed are tlie following �Df1 Resolutions.
• Resolution No. 97-EDA57 Approving the Appointment of the Economic Development Authority
Officers for 1997 (Please note Vice President and Secretary have not been appointed).
• Resolution No. 97-EDA58 Reappointing Members of the Economic Development Commission and
Designating EDA Liaisons for 1997
,
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Lyiuiette Morgan
HR Tech.
RECOMM�NDATIONe Approve Resolution Nos. 97-EDA57 Approving the Appointment of the EDA
Authority Ofiicers and 97-EDA58 Reappointing Members of the EDC and Designation EDA Liaisons
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RESOLUTION NO. 97-EDA57
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING THE APPOINTMENT OF THE
ECONOMIC DEVELOPMENT AUTHORITY OFFICERS
WHEREAS, Article III, Section 3.1 of the Economic Development Authority
Bylaws requires that the President, Vice-President and Secretary be elected annually at the first
ineeting of the year; and
WHEREAS, President, Vice-President and Secretary appointment shall be duly
elected members of the Mounds View City Council; and
WHEREAS, Article III, Section 3.2 of the Economic Development Authority
Bylaws requires that vacancies of the office of Treasurer, Executive Director/Assistant Treasurer
and Clerlc shall be appointed by the Economic Development Authority Board; and
WHEREAS, Treasurer, Executive Director/Assistant Treasurer and Clerlc need
not be held by duly elected members of the Mounds View City Council; and
WHEREAS, the office of the Treasurer, Executive Director/Assistant Treasurer
and Clerk are vacant and successors need to be elected by the Board.
NOW, THEREFORE, BE IT RESOLVED that the Economic Development
Authority of the City of Mounds View appoints the following persons to serve in the following
positions.
ATTEST:
(SEAL)
Duane McCarty, President
, Vice President
, Secretary
Bruce Kessel, Treasurer
Cathy Bennett, Executive Director/Assistant Treasurer
Tamara Saeflce, Clerk
Adopted this 13th day of January, 1997
President
Executive Director
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RESOLUTION NO. 97-EDA58
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION REAPPOINTING MEMBERS OF THE ECONOMIC DEVELOPMENT
COMMISSION AND DESIGNATING EDA LIAISONS
WHEREAS, the Economic Development Commission acts as an advisory cornrnission to
the Economic Development Authority (EDA) on inatters that relate to fostering a positive economic
climate, encouraging economic development, and enhancing the tax base of the City; and
WHEREAS, the membership of the Economic Development Commission is comprised of
four residents and three business representatives; and
WHEREAS, the terms of the below listed person expired on December 31, 1996; and
Cindy Carlson, Western Banlc
Ron Schmidt, Mounds View Amoco
Brian Sjoberg, Dynex Industries
EDA Liaison, Sue Hankner
Alternate EDA Liaison Gary Quick
WHEREAS, each person was contacted in regard to being reappointed to the Economic
Development Commission.
NOW, THEREFORE, BE IT RESOLVED that the Economic Development Authority of
the City of Mounds View hereby reappoints the following persons to the Economic Development
Commission with tei�rns expiring as follows:
Brian Sjoberg, Dynex Industries, term expiring December 31, 1997
Cindy Carlson, Western Bank, term expiring December 31, 1998
Ron Schmidt, Mounds View Amoco, term expiring December 31, 1999
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Economic Development
Authority of the City of Mounds View hereby designate the following with terms expiring December 31,
1997.
ATTEST:
(SEAL)
Commissioner as the EDA Liaison, Julie Tiude
Commissioner as the EDA Alternate: Gary Quick
Adopted this 13th day of January, 1997.
President
Executive Director
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REQUEST FOR EDA CONSIDERATION
STAFF REPORT
EDA MEETING DATE
Janua� 13, 1996
Agenda Section .,�
Report Number: ;- !}N - ! 7 - �: ' 1'�--
Report Date: 1/9/97
Special Order of Bus.
Consent Agenda
Public Hearings
X EDA Business
Item Description: Consideration of Resolution 97-EDA-59 approving and authorizing the acquisition of 8283
Long Lake Road under the EDA's Housing Replacement Program.
lldministrator's Review/Recommendation:
-No Comments to supplement this report
-Comments attached.
Explanatiort/Sumnta�y (attach supplement sheets as necessary)
Sunrmary:
Staff has received a letter from Gary Miller, owner of 8283 Long Lake Road, offering the property for sale to
the Economic Development Authority (EDA) (see Attachment 1). The property is located south of Ardan
Park, where the Ramsey County Compost Site is located. In December, the City Council authorized an
appraisal to be done on this property. The appraisal was conducted on December 18, 1996, and gives a value
of $55,000. The appraiser indicated that almost every aspect of the home's condition was considered below
average, with problem with moisture in the basement, structural damage and poor exterior condition. The
property would qualify for purchase under the Housing Replacement Program.
At the January 6 Study Session, purchase of this property as well as two adjacent properties located at 8271
Long Lake Road and 2510 Ardan Avenue was discussed. It has come to our attention that both 8271 Long
Lake Road and 2510 Ardan Avenue are now both tenant occupied. Therefore, staff has ceased any further
discussion with the property owners regarding purchase of this property as indicated by the Housing
Replacement Program guidelines (see Attachment 2). Tenant occupied properties are not eligible for purchase
under the program. Therefore, the resolution before you at this time is to authorize acquisition of 8283 Long
Lake Road only.
Backgrountl on Housing Replacenzent Progrant
In May, 1996, the Economic Development Authority (EDA) established a Housing Replacement Program fully
funded by Tax Increment Financing (TIF), the capture of the increase of tax revenue from properties in
specifically designated districts before and after development. (See attached map for Mounds View's TIF
districts; Attachment 3). As the map indicates, Mounds View's TIF districts contain for the most part only
commercial and industrial areas. A portion of the proceeds fund the Housing Replacement Program.
The purpose of this program is to purchase and demolish substandard homes, clear the site and sell the raw
land to a buyer/developer team or contract with a non-proiit organization to construct a new home. The
houses targeted in this program are houses which are beyond repair or the cost of repair would exceed the
total value of the property. The primary purpose of the program is to remove houses which are in very poor
condition, and are causing a bli�hting effect on the surrounding neighborhood. It also helps to improve the
RECOMMENDATION: Approve Resolution No. 97-EDA-59 to begin negotiations for the purchase of
8283 Long Lake Road.
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Economic Development Authority
Purchase of 8283 Long Lake Road
January 13, 1997
Page 2
City's overall tax base by replacing smaller, lower valued homes which have become obsolete with new, higher
valued homes. Thus, the Housing Placement Program uses tax revenue from commercial and industrial
properties to improve the City's housing stock and neighborhood conditions.
The Housing Replacement Program is one of the ways in which the City Council has been working to
implement to goals from the Mounds View Focus 2000 project. The City Council initiated this project in
1994. It involved citizen stakeholders in a visioning process to identify what issues were of concern to the
community and what direction should be taken in addressing these issues. The report from the steering
committee included a neighborhood appearance goal "to facilitate the continuous improvement of
neighborhood appearance." Goals and action steps established by City Council in 1995 and 1995 included:
Begin the rehabilitation of the City's housing stock
Develop a program for nuisance abatement and code enforcement to improve neighborhood
appearance.
Adopt, promote and enforce the benefits of a City-wide nuisance ordinance. Resolve abatement
problems and problem properties.
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P ma ela Sheldon, Community Development Director
Attachments:
1. Letter from Gary Miller
2. Housing Replacement Program
3. Map of TIF Districts
4. Resolution 97-EDA-59
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J�';i; 1997
�ii�c9U°C�
City of
Mounds �lie�N
January 8, 1997
To James Ericson....... sale oi 82$3 Long Lake Road
I intend to offer the purchase my home and land to the City of
Mounds View, to participate in the EDA program for housing
replacement.
I waive any rights or claims to relocation benefits in the event
of my voluntary sale of the property to the City of Mounds View.
Enclosad is a copy of a letter regarding the adjacent compost
site, north of my home. In spite ofthe positive comments
contained in the letter, the presence of the site influenced the
negative decision from my credit union for an equity loan, for
home improvment.
Also, please be advised that the site is too close to residential
area as defined by Ramsay County guidelines and is therefore
ilegal. The purchase of my home could mitigate that situation
even though the noise, dust and smell would remain.
I look forward to a favorable, mutually agreeable offer, for my
home and land by the City of Mounds View.
Gary J Miller, resident for 22 years. 786-9670
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CITY OF MOUNDS VIEW'S
HOUSING REPLACEMENT PROGRAM
Statement of Purpose
To reduce the social costs of blight, making better use of e�sting public infrastructure and
redistributing tax base to communities with higher levels of fiscal needs.
Program Objectives
• Replace small lower value housing on scattered sites throughout the City with
larger, new, higher value housing designed for families.
• Eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
• Increase the availability for quality housing for families.
Data Privacy
All files and information which identifies property and persons is private and cannot be released.
All information secured through the program is subject to the Data Privacy Act.
Acquisition Procedures (Sale to EDA)
Seller Solicitation Procedures
1. EDA staff, or their appointee(s), will solicit for sellers by direct mail,
advertisement, or other method. The number of properties purchased will be
determined by the availability of resources and properties.
2. Sale to the EDA must be on a voluntary basis. Interested sellers are required to
respond to the EDA solicitation in writing, with an offer indicating:
a. An interest in selling their property to the EDA.
b. A willingness to waive relocation benefits.
c. Statement of tenant interest in the property at the time of offer.
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d. Consent to the release of relevant information to potential developers and
end buyers.
Owners who have expressed an interest in selling must be contacted to inform
them of the estimated project time line and solicit the required written response.
Property Selection Criteria
EDA staff, or their appointee(s), will prepare property fact sheets for properties which
owners have expressed an interest in selling, and make a drive by inspection. Properties
will be evaluated based on the following criteria. To be eligible for acquisition, properties
must meet criteria # 1 a, b, c or d; and #2 through #5.
1. The property is:
a. Substandard as to condition, size or usage.
b. Obsolete and of a faulty design for blocic and area in which it is located.
c. A deteriorating factor which has caused blight to other adjoining
properties.
d. Detrimental to the safety or health of abutting properties in the blocic.
2. An effort will be made to provide a geographic mix of properties.
The site can be developed with a single family home within city code requirements,
including zoning and conformance with the Comprehensive Plan.
4. The property must be owner-occupied or vacant before the owner should consider
offering it to the EDA. Tenant occupied properties will not be considered for
purchase.
Prior to acquisition by the EDA, properties over 50 years old must be evaluated
for historical significance. This will be accomplished by forwarding general
property information and a property photo to the Minnesota Historical Society for
review. This should be confirmed prior to signing a purchase agreement. The
EDA will not purchase property which qualifies for the National Registry of
Historical Structures.
Property Evaluation Procedures
Based on the above information, EDA staff, or their appointee(s), will identify the
best candidates for acquisition. The following will be considered in that
evaluation:
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a. Properties must be available to meet the EDA development time frame.
b. Properties with one or more of the following characteristics should be
considered first:
lowest values
poorest visible eonditions
located in average to better neighborhoods
c. Properties purchased should be equally distributed by location and value
through the districts when possible, and provide a viable financial mix of
properties to support program financial requirements.
Given the above considerations, each site will be evaluated on a case by case basis.
2. Once an offering letter is received, EDA staff, or their appointee(s), will contact
the owners of the properties and arrange an inspection of the interior for blight
qualification.
The following information will also be obtained during the inspection:
a. Demolition information for estimating demolition credit to builder.
b. A determination as to the existence of any hazardous materials on the
property. This includes:
a visual inspection
a statement from the seller regarding any knowledge of the
properties use for production, storage, deposit, or disposal of any
toxic or hazardous wastes or substances or asbestos products
whatsoever, during the time seller owned the property and prior to
the date of seller purchased property. Properties with
environmental problems or hazards may be considered if the
purchase price is reduced suf�iciently to cover increased site
clearance and preparation costs.
If a property meets the blight test, acquisition procedures can continue. If the
blight test cannot be met, the property cannot be considered for acquisition.
4. If a variance is required to redevelop the property, the EDA may, at its sole
discretion, choose not to acquire the property. This determination will be made
based on the project time lines, available resources, and availability of more
desirable properties which do not require a variance.
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If the EDA chooses to continue with the acquisition, a fee appraisal will be ordered
to determine the purchase price of the property (to present to the seller), the reuse
value as a vacant lot, and a finished price range for new single family construction
(to present to the developer).
The independent fee appraiser will be carefully instructed to document in specific
terms the conditions of the property; details regarding structural condition and
floor plan. The acceptance of these conditions in the market place should be
discussed in the report. The appraisers value judgement should reflect these
conditions.
6. If the seller agrees to the purchase price and signs a purchase agreement, the
property will be included in the EDA marketing program. The purchase agreernent
will be contingent on the completion of an environmental evaluation suggesting no
evidence of hazardous waste on the property. �
7. Sellers will be asked to provide the Abstract or RPA (as applicable) to the EDA, to
facilitate the rendering of a title opinion. The cost of updating the Abstract or
RPA will be the seller's if a sale occurs.
8. Legal Counsel will be responsible for having the Abstract or RPA updated and will
contact staff as quickly as possible with an oral opinion of title. A written opinion
or title insurance policy will follow shortly thereafter.
9. If the title opinion indicates the property has marketable title, purchase procedures
will continue. If the title opinion does not indicate a marlcetable title, the EDA,, at
its sole discretion, may choose not to acquire the property. The EDA may
determine remedies and evaluate their resolution, including the additional time and
expense to provide marketable title. The EDA may proceed to correct title
deficiencies once a Purchase Agreement is executed by the seller.
10. Simultaneously with the title opinion, an environmental Phase I audit may be
obtained from an independent environmental engineering firm or other firm
performing such service. If environmental hazards are found on the site, the EDA
may choose not to acquire the property.
Acquisition Process
When a purchase price has been determined, the seller will be informed of:
a. The purchase price
b. How the purchase price was determined.
c. If negotiations fail, and the offer is not accepted, the EDA will not acquire
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the property.
2. Once a negotiated price has been reached, a contract for purchase, with the
attached form of purchase agreement and "waiver of relocation payment" form
must be executed by the seller for the acquisition process to continue. The
relocation benefits which the seller agreed to waive, must be clearly explained at
this time, if not explained previously.
3. The acquisition and disposition of the property is in conformance with the Mounds
View Comprehensive Plan.
4. Following EDA authorization of these agreements seller will be requested to
assemble or supply all required documentation prior to closing.
5. The seller must be prepared to vacate the property on the day of closing.
Special considerations during the acquisition process:
a. Non-homestead vacant property will be considered for acquisition.
b: Tenant occupied property cannot be acquired.
c. Property expenses related to maintenance, taxes, and insurance should be
minimized since the EDA does not intend to retail title to the property.
d. Review appraisal services may be part of the negotiating process to deternvne
purchase price.
e. Negotiated prices considerably below the assessor's marlcet value, may be
accepted without appraisal on a case by case basis if the seller concurs.
f. Number of acquisitions is deternuned by available resources (funding and staf�.
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RESOLUTION NO. 97-EDA-59
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING AND AUTHORIZING THE ACQUISITION OF 8283
LONG LAKE ROAD UND�R THE EDA'S HOUSING REPLACEMENT PROGRAM
It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View
Economic Development Authority (the "Authority") as follows:
Recitals
(a) Pursuant to Minnesota Statues, Sections 469.124 to 469.134 and 469.090
to 469.108 (collectively, the "Act"), the Authority (I) has undertaken a program to
promote development and redevelopment of certain land within the City of Mounds View
and is engaged in carrying out the Mounds View Economic Development Project (the
"Project") within the City; (ii) has approved a Project Plan for the Project; and (iii) has
approved and adopted a Housing Replacement Program under and as an aspect of the
Project Plan.
(b) The redevelopment of property within the Project is a stated objective of
the Project Plan and the Housing Replacement Program.
(c) The stated purposes of the Housing Replacement Program include
reducing the social costs of blight, making better use of existing public infrastructure, and
redistributing tax base to communities with higher levels of fiscal needs. The Housing
Replacement Program's objectives include replacing smaller, lower-value housing on
scattered sites throughout the City with larger, new higher-value housing designed for
families, the elimination of blighting influences and substandard housing, and the increase
of available quality housing for families within the City.
(d) It has been proposed that the Authority acquire the property located at
8283 Long Lake Road (the "Property") and that the Authority enter into a purchase
agreement and/or similar agreement(s) (collectively, the "Agreement") for that acquisition
and/or subsequent clearance of the property for redevelopment.
2. The Board hereby determines that the Authority's execution of the Agreement and
the subsequent acquisition and/or clearance of the Property would be in furtherance of the Project
Plan and the Housing Replacement Program and hereby approves and authorizes said actions,
including the execution of the Agreement by the officers of the Authority in their discretion and at
such time, if any, as they may deem appropriate.
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Resolution 97-EDA-59
January 13, 1997
Page 2
3. Upon execution and delivery of the Agreement, the officers and employees of the
Authority (including members of City staff, acting in their capacity as staff to the authority as
well) are hereby authorized and directed to take or cause to be taken such actions as may be
appropriate or necessary of behalf of the Authority to implement the Agreement, including the
acquisition of the Property, which is being accomplished for redevelopment purposes.
4. The Board hereby determines that the execution and performance of the
Agreement and the acquisition of the property will help realize the public purposes of the Act and
are in furtherance of the Project Plan and the Housing Replacement Program.
Adopted by the Board of Commissioners of the Mounds View Economic Development
Authority on January 13, 1997.
BY:
Duane McCarty, President
ATTEST:
Cathy Bennett, Executive Director
N:�DATAIUSEKSUENNIFER\SI IARE\H283 RES0.113
JAN �9 '97 17�42 KENNEDY & GRAVEN
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' BE IT RES�L'V'Bb by the Board oi C�muussioaers (the "Boatci") of thr Mournclx ViCw
. Econcunic Dcvclopmcxit Autliority (t� "EDA"), as folluws:
1. Rccitai4_
(a) PuTS�t Go I�1'uu�esota Ststutes, Section� 469.OyQ throngh 469.1U8
(collecti�veJy, the "Aci")9 tt� �UA is uurhorized to exercise developmeat and
reclevelopment povvers,
(b) Zhe ET�A has established its Mounds'View Economic Development Disui.ce
(th� "Disaict") aad adopted the projeat Plan tkerefoa pursuxnt to thc Act.
(c) The F.DA, propose.� t� asta�lisl� a�x inccemcnt financin� di4trict ("Ti�
' District") for tl�c propos�d Bel Rac redevclopment projcct consis�nt witi� thc statcci
objectives of the Project Plan.
� (d) The process which must be followed is the prepnrution of the tox increment
: finnnoing plan ("TI� Plan"), aotificatioa to both tha individual oaunty commissioner and
. the Cour►ty Bcard as a whole, noti�fication to the Sehool Soard, and the holding o�' a
. publie hearing by che Ciry Council on the propesed plan.
, 2. Public HearinL. The EDA herCby auihuricty th� nr,cc�cy staps which ncc�! tu bc
: laictn in urdtr tn prepare and hring fi�rwarcl the pru�xr.ccd TIF Di.vlri�l and TIF Pt�� fur
COII!�dCPAtip[1 2tli(� rUI)IIG hCd[I0� i)jr �1C C�It}r C'tlunW�. �I'f1C FI�/i }1�Ter�,�u�� �� c�r� r.�,m��t
� to schedule a p�blic hearing on the TIF District and T'TF plan at thc appropriat� time, givrn the
: required 30-day prior notice to the County aad Schoo! Boards and thc requirement that noticc of
thc public heating be publishcd at least 10 days prior tbereto.
A,dopted by the Mouads 'V'iew E]7A Bonrd of Commissioners this 13th day of Jeaucuy,
1997.
ATT'�ST:
busui� MeCartp
Presidant
' (SEAL)
Executi�ve Director
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