HomeMy WebLinkAbout03-22-1999 EDA EDA
CITY OF MOUNDS VIEW
MEETING MINUTES
MONDAY, MARCH 22, 1999
10:27 P.M.
1. CALL MEETING TO ORDER
2. ROLE CALL: Coughlin, Marty, Stigney, Thomason.
NOT PRESENT: Quick.
3. APPROVAL OF EDA MINUTES
Motion/Second: Coughlin/ . To approve minutes of EDA for March 8, 1999.
Ayes - 4. Nays - 0.
Review of RFP request for proposal for sale of lot 6991, Pleasant View Drive.
Steve Dorgan stated on the subject site,the staff has arranged for demolition of the building
which should be completed in the first week in April and part of that we should begin setting out
"for sale" lot to get the construction going as soon as possible with the tax rules as the policy
dictates. Attached to the staff report are essentially the information, and that is standard as what
we have sent out in the past. One issue that EDA may want to look at is setting a minimum for
the lot. The appraised value for the land last June for purchase was $35,000. Once the RP is sent #.
out and we receive bids back we will bring those back to the EDA for approval. Once the EDA
issues a buyer, they would then turn to a participation agreement which will essentially hold the
lot for them. They would provide a City a$500 deposit and that would hold that lot for 30 days
until we have a purchase redevelopment agreement signed to sell the lot.
Mr. Marty asked what does the City have tied up in this project.
Steve stated the property was purchased for $60,500, and that was the appraised value of the
land. The demolition is going to cost$7900. Additional staff and legal time, probably $68,000
to $70,000. The lot has an appraised value of$35,000. In speaking with some real estate agents,
the lot will go for $40,000 to $45,000. There is some loss obviously to the investment part of the
program.
Motion/Second: Coughlin/Marty. To extend the meeting five minutes.
Ayes - 4. Nays - 0.
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Mr. Marty stated if we put a minimum price on the lot, appraised at$35,000, and we put a
$45,000 minimum on the bids, is this viable?
Steve stated the minimum value is $35,000, we still are going to get bids that may come in over
that. Calls are received daily requesting information for this lot. The demand could be high and
go up to $45,000. We may run into a problem and get less quality bids for housing design, or
what may actually be built on the site.
Mr. Marty stated the property should be sold for$40,000.
Motion/Second: Marty/Stigney. To approve request for 6991 Pleasant View Housing Program
to set the minimum bids to reflect $40,000.
Ayes - 4. Nays - 0.
Mayor Coughlin closes meeting at 10:34.
Respectfully Submitted,
James Merrill
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