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04-17-2009
CITY OF MOUNDS VIEW • ECONOMIC DEVELOPMENT COMMISSION MEETING AGENDA MOUNDS VIEW CITY HALL FRIDAY, APRIL 17, 2009 7:30 A.M. 1. CALL TO ORDER 2. ROLL CALL EDC Members: Chair Gary Meehlhause, Vice Chair Jennifer Wagner, Commissioners Greg Belting, Jackie Entsminger, Jason Helgemoe, Torri Johnson & Dan Larson City Staff: Community Development Director Ken Roberts & Economic Development Specialist Heidi Steinmetz 3. APPROVE APRIL 17, 2009 EDC AGENDA 4. APPROVE FEBRUARY 20, 2009 EDC MINUTES 5. SPECIAL BUSINESS 6. EDC BUSINESS • A. Housing Replacement Program - Discuss Possible Policy Changes 7. REPORTS OF COMMISSIONERS 8. REPORTS OF STAFF A. Mounds View Branding Project B. The Mermaid TIF Agreement Amendment and Subdivision C. Convention & Visitors Bureau Changes D. April 25, 2009 Town Hall Meeting E. May 12, 2009 "Housing Resources for Mounds View Residents" Seminar 9. NEXT REGULAR EDC MEETING Friday, May 15, 2009 at 7:30am 10. ADJOURNMENT • • Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting February 20, 2009 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Gary Meehlhause called the meeting to order at 7:34am. 2. ROLL CALL Members Present: Commissioners Greg Belting, Jason Helgemoe, Dan Larson and Jennifer Wagner Members Absent: Commissioners Jackie Entsminger and Torri Johnson Staff Present: Economic Development Specialist Heidi Steinmetz • 3. APPROVAL OF FEBRUARY 20, 2009 AGENDA Motion/Second: Commissioner Wagner moved and Commissioner Belting seconded the approval of the February 20, 2009 EDC agenda. Motion Carried: 5 Ayes 0 Nays 4. APPROVAL OF JANUARY 16, 2009 EDC MINUTES Motion/Second: Commissioner Larson moved and Commissioner Belting seconded the approval of the amended November 21, 2008 EDC minutes. Motion Carried: 5 Ayes 0 Nays 5. SPECIAL BUSINESS Twin Cities North Chamber of Commerce President Tim Roche provided a recap of the Chamber's annual "Gala" fundraiser held on February 7, 2009. He reported that despite today's tough economic times, 250 businesses attended the event. • Draft EDC Minutes February 20,2009 Page 2 of 3 6. EDC BUSINESS A. Discuss Potential Business Registration Program Ms. Steinmetz reminded the EDC that they discussed this item last summer as it related to business retention and how the City should have one, master business database rather than multiple databases among different City departments. Ms. Steinmetz said that Building Official Kathi Osmonson is the lead City staff person for this project and that Ms. Osmonson presented ideas for the program to the City Council on January 5, 2009. Ms. Steinmetz's concern with the program relates to a potential fee. Businesses should not be charged a fee to register with the City, according to Steinmetz. The Chamber's Economic Advancement Committee discussed the program at their January meeting and Ms. Steinmetz provided the EDC with their input. One of the ideas from the Chamber Committee was to only charge a fee if the business did not provide the information. Commissioner Belting stated that there is a clear distinction between filling out a business registration form with current contract information and a fire inspection. He said that some of the other cities' business registration programs seem to blend registrations with fire inspections. He said that the EDC should discuss whether the program should be"blended" or whether we should keep the two items separate. He asked if there is a fee for fire inspections and Ms. Steinmetz said that she does not believe there is a fee. • Commissioners Heigemoe,Wagner and Larson said that we should not impose a fee for the registration program. Commissioner Larson added that we should keep registrations separate from building inspections but that the information could be combined. Chamber President Tim Roche said,that the Chamber's concern is that businesses could be charged unexpected fees due to the program because a building may pass an initial inspection but not pass the registration inspection. He also said that there needs to balance between the staff hours involved in creating the program versus the staff hours the program will save due to an efficient program. Chair Meehlhause agreed with the EDC's comments and said he preferred Maplewood's program but does not agree with a fee. The EDC agreed that there is a definite need for the City to have updated business contact information. Motion/Second: Commissioner Wagner moved and Commissioner Helgemoe seconded the motion recommending that the City Council consider the following: • The program should be an annual, voluntary registration (businesses should not be forced to provide the information; and, • If a business chooses not to register, after the second year of not providing the information, the business would be charged a penalty fee not to exceed $50; and, • Draft EDC Minutes February 20,2009 Page 3 of 3 • • New businesses should be asked to register as soon as they decide to move to the City (not after they have moved in). Motion Carried: 5 Ayes 0 Nays 7. REPORT OF COMMISSIONERS Chair Meehlhause expressed his support for the Irondale Girls Hockey Team. If they beat Mounds View, they will be Section Shampions and will advance:to the State Tournament. 8. REPORTS OF STAFF Ms. Steinmetz provided the EDC with updates on the following projects and meetings: • The Mermaid Subdivision • New Convention &Visitors Bureau • City Council Goal Setting Retreat: Saturday, February 28, 2009 • 5th Annual Town Hall Meeting: Saturday, April 25, 2009 • Mounds View Branding Project • Select Senior Housing Project 9. UPCOMING EDC MEETINGS • Ms. Steinmetz reminded the EDC of their upcoming meetings. 10. ADJOURNMENT There being no further business before the Commission, Commissioner Belting moved and Commissioner Larson seconded the adjournment of the meeting at 8:35am. Respectfully submitted, /,‘/.6e."cd, 404 Heidi Steinmetz Economic Development Specialist 4111 Item Number: 8 • Meeting Date: April 17, 2009 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Reports of Staff- Item 8 A. Mounds View Branding Project After an extensive process, the EDA/Council chose a new logo (shown below) for the City of Mounds View at the April 13, 2009 EDA meeting. The official unveiling to the public will not occur until the April 25th Town Hall meeting. The Council directed staff to work with Risdall Marketing Group to make some final tweaks to the artwork. Logo implementation will be phased in to items such as letterhead, business �1 cards, etc. There are "no cost" ways to MOUNDS VIE%V use the logo right away, such as the City • newsletter and staff reports. B. The Mermaid TIF Agreement Amendment and Subdivision On April 13, 2009, the EDA approved an amendment to their Development Assistance Agreement with MoundsVista, Inc. (The Mermaid) to allow The Mermaid to sell the hotel. Also on April 13th, the City Council approved The Mermaid's final plat to divide the current property into two lots (one for the hotel and another for the restaurant & banquet center). Final Plat for The Mermaid 2nd Addition \' ' s, Restaurant & `�ek _!;, ii' • p ' 1 Banquet Center N`. M ;: � 4 1 �Nt o' i movant ,Y 1 • I . , IN II „NI-, 4 ,ci,# -....„, I: ' I' 4 Hotel ,..- r. -'+" • ,____a m ��,,,�,�.p— '65.. Y.,,A$ (i,.. N lMlr,,,,1W T.:! --;02.6046 '"'p.7N� a*••tN� Item 8—Reports of Staff April 17,2009 EDC Meeting Page 2 of 2 . C. Convention & Visitors Bureau (CVB) Changes The National Sports Center, a coalition of hotels located east of the Mississippi River, two Chambers (including the Twin Cities North Chamber) and four cities (Arden Hills, Blaine, Coon Rapids and Shoreview) have opted out of Visit Minneapolis North (the local CVB). These groups would like to form a new CVB. The new CVB would represent cities east of the Mississippi River. VMN would continue to represent the cities west of the Mississippi River (Brooklyn Center, Brooklyn Park and Maple Grove). On March 18, 2009, the VMN Board of Directors voted to allow cities that have not yet opted out of their agreements with VMN to opt out no later than April 30, 2009. The Executive Director of VMN recently alerted City staff that if the Mounds View City Council does not opt out, Brooklyn Center, Brooklyn Park and Maple Grove will probably ask Mounds View to opt out of VMN. Therefore, on April 13, 2009, the City Council passed Resolution 7430 to opt out of their agreement with VMN effective December 31, 2009. Staff will update the EDA on the new CVB as more information becomes available. D. April 25, 2009 Town Hall Meeting See the attached Town Hall Meeting agenda. E. May 12, 2009 "Housing Resources for Mounds View Residents" Seminar See the attached flyer and agenda for the City's first ever housing seminar for residents. • Respectfully submitted, Heidi Steinmetz Economic Development Specialist Attachments: • Town Hall Meeting Agenda • Housing Seminar Flyer &Agenda CITY OF MOUNDS VIEW TOWN HALL MEETING AGENDA • MOUNDS VIEW COMMUNITY CENTER Saturday, April 25, 2009 9:00 a.m. — 12:00 p.m. 9:00 a.m. — 9:30 a.m. Registration (Cookies and Coffee Served) 9:00 a.m. — 12:00 p.m. City Exhibits • Banquet Center • Cable Committee • Charter Commission • Community Development Department • Festival in the Park • Finance Department • Fire Department • Housing Resource Center • Mounds View Community Theatre • Mounds View Documentary (film will start at 9am) • Police Department . • Public Works/Parks, Recreation and Forestry Commission • Recycling • YMCA • Children Activities at the Community Center Gym 10:00 a.m. - 12:00 p.m. City Presentations 10:00 a.m. — 10:15 a.m. Mayor's City Address 10:15 a.m. — 10:30 a.m. Award Presentations 10:30 a.m. - 11:00 a.m. Vision, Mission and Goals for 2009 Speaker: Jim Ericson, Clerk-Administrator 11:00 a.m. — 12:00 p.m. Final Thoughts and Questions 12:00 p.m. Town Hall Meeting Adjourns • 0 kieinar1 : iii :: Housing Resources - . . . . . . . . . . . . . • for Mounds View Residents Tuesday, May 12, 2009 7:00 - 9:00pm Mounds View City Hall - City Council Chambers 2401 Hwy 10, Mounds View, MN 55112 Seminar Agenda • Financial Resources This event ylil be County & State Programs broadcast /VE and rebroadcast on Free Information Resources , Mounds View Foreclosure Prevention Counseling able Channel 161 Home Improvement Advice Fire Department's Home Safety Survey Xcel Energy's Home Energy Audit North Metro Home & Garden Show Panel of Speakers — Real World Perspectives Loan Officer, Mortgage Company, Realtor, Appraiser CITY OF Visit the City's Website at www.ci.mounds-view.mn.us 0UNDS 10 for information on housing resources. Click on "For Residents", then "Housing Resources". IEw Register by Friday, May 8, 2009 11111 A to Heidi Steinmetz at 763-717-4029 or rogeess • PartnetS���S heidi.steinmetz@ci.mounds-view.mn.us • Housing Resources for Mounds View Residents Agenda Tuesday, May 12, 2009 Mounds View City Hall 7:00 - 9:00pm 1. Welcome & Introductions (15 minutes) a. 2009-2010 City Council Goals (Housing Related) - Mayor Joe Flaherty b. Why Cities Promote Housing Resources - Jim Ericson, Clerk-Administrator c. Importance of Property Maintenance - Jeremiah Anderson, City Housing Inspector 2. Free Information Resources (30 minutes) a. Foreclosure Prevention Counseling - John Sulzbach, LSS Financial Counseling b. Home Safety Survey - Becky Booker, Spring Lake Park/Blaine/Mounds View Fire Dept. c. Home Improvement Advice - Paul Soenneker, Housing Resource Center (HRC) d. North Metro Home & Garden Show - Jeremiah Anderson, City Housing Inspector e. Xcel Energy Home Energy Audit - Heidi Steinmetz, Economic Development Specialist 3. Financial Resources (15 minutes) a. County Programs - Marie Malrick, Housing Resource Center (HRC) • Deferred Loan (HRC) • Energy Efficiency Deferred Loan (Neighborhood Energy Connection) • FirstHOME (Ramsey County) b. State Programs - Marie Malrick, Housing Resource Center • Fix Up Fund Loan (HRC) • Rehab Loan (HRC) 4. Panel of Housing Industry Experts: Real World Perspectives (45 minutes) a. Loan Officer & Mortgage Company - Dr. Arlen (Skip) Baumhoefner, AmRes Mortgage b. Realtor - Chuck Prasek, ReMax Associates Plus c. Appraiser - Patrick D. Grengs, SRA, RM, Northland Appraisal, Inc. 5. Seminar Wrap Up/General Questions(15 minutes) • 4/14/2009 Created by Heidi Steinmetz Item Number: 6A Meeting Date: April 17, 2009 • Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Housing Replacement Program - Discuss Possible Policy Changes Background The EDA last updated the Housing Replacement Program criteria in July of 2007. I have attached the criteria for the EDC's reference. The EDA has geared this program toward providing demolition assistance through Tax Increment Financing (TIF), which the EDA may provide to property owners as a ten-year/forgivable deferred loan. The Housing Resource Center administers the program for Mounds View. In March and April of 2008, the EDC discussed whether to expand the Housing Replacement Program to address the needs of the current housing market. The consensus of the EDC was that the City does not need to reinvent the wheel as long as other housing organizations are meeting the needs of the community. • Discussion The question that staff wants the EDC to consider is "Should the EDA charge an application fee to cover the costs of processing a Housing Replacement Program application?" Currently, for the EDA to consider a property for this program, applicants must submit to the EDA a letter of request. There is no application fee or application form. After applicants submit their letter, they must have their house inspected to establish blight qualification. The City's Housing Inspector spends about 1.5 hours of time to complete the inspection and to write his report. Economic Development staff then composes another written report with background information and a recommendation to the EDA. It is staff's opinion that it is reasonable for the EDA to charge a fee to help cover staff time as we do with most services provided by the City. Recommendation Staff is recommending that the EDC provide a recommendation to the EDA that applicants for the Housing Replacement Program be required to submit a non-refundable application fee of $100 and a completed application form. Respectfully submitted, 4Z- • Heidi Steinmetz, Economic Development Specialist Attachment - Housing Replacement Program Policy CUT OP ! f ^�r%3 City of Mounds View Housing Replacement Program i (Revised July 2007) S g4'ess PartneCs''Y A. Statement of Purpose The Mounds View Economic Development Authority Housing Replacement Program ("Program") is established to reduce blight, improve residential neighborhoods and increase the tax base. B. Program Objectives • Replace deteriorating substandard housing on scattered sites throughout the City with larger, higher value housing designed for owner-occupied families. • Eliminate the blighting influence of substandard housing. • Increase the availability for quality housing for families. C. Program Funding The Program is funded through Tax Increment Financing and administered by the Mounds • View Economic Development Authority(the "EDA"). D. 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. E. Program Options The Program offers two options for participation. Option 1 — Demolition Assistance: The primary component of the Program involves providing financial assistance to cover the cost of demolishing substandard or blighted property with an agreement that it will be replaced within a specified time frame with a new home that meets certain minimum design standards and area requirements as articulated in Attachment A, Minimum Standards and Requirements. Option 2 - Acquisition: This secondary option involves the purchase of a substandard single- family home and land by the EDA from a willing seller. The EDA will coordinate the site clearance activity and market the site to a developer/owner with an agreement that a new home would be constructed within a specified time frame that meets certain minimum design standards and area requirements as articulated in Attachment A, Minimum Standards • and Requirements. City of Mounds View Housing Replacement Program F. Publicizing the Program; Making Application 1. EDA staff, or their appointees ("Program Staff'), will solicit participants by direct mail, advertisement, or other method. The number of applications accepted for participation in the Program will be determined by the availability of personnel and financial resources. 2. Participation in the Program is voluntary. Interested participants must be able to furnish proof of ownership or documented intent to acquire the property, and are required to submit a letter of application to the EDA indicating: a. For Option 1 (Funding for Demolition): (1) An interest in obtaining funding for demolition from the EDA to replace existing housing with new housing that meets the expressed minimum guidelines of the EDA. (2) Consent to hold the EDA harmless for demolition activities. (3) Consent to enter into a legal development agreement with the EDA regarding redevelopment of the property. (4) Ability to produce proof of construction financing. b. For Option 2: (Sale of Property to EDA): (1) An interest in selling their property to the EDA. • (2) A willingness to waive relocation benefits. (3) Statement affirming that the property is either vacant or owner-occupied at the time of offer. (4) Consent to the release of relevant information to potential developers and end buyers. 3. Individuals who have expressed an interest in participating will be contacted by Program Staff to inform them of the estimated project time line and to obtain complete information on the items noted under F.2. above. G. Property Eligibility Criteria Program Staff will evaluate each property for which an application is received to determine Program eligibility based on the criteria in this section. Program Staff will prepare property fact sheets for each property for which an application has been received and will conduct an interior and exterior inspection of each property. Properties will be evaluated based on the criteria outlined below. To be eligible for participation, the house must be previously identified by the EDA as a potential acquisition (Option #2 only) and the property must have one of the characteristics noted in 1, 2, 3, 4 or 5 below: 1. Substandard as to condition, code compliance, size or usage. 2. Obsolete and having a faulty design for block and area in which it is located. 3. Deterioration which has caused blight to other adjoining properties. • 4. Detrimental to the safety or health of abutting properties in the block. 5. Foreclosed upon or notice of foreclosure has been served on occupant. Page 2 City of Mounds View Housing Replacement Program 40 If it is determined that the property is eligible for participation based on the condition of the house as expressed in characteristics 1-5 above, it must also meet the following criteria as outlined in 6-8 below. 6. The site can be developed with a single family home within city code requirements, including zoning and conformance with the Comprehensive Plan. 7. The property must be owner-occupied or vacant before the owner or owner's designee makes application to the Program. Non-homesteaded vacant property will be considered for demolition assistance or acquisition. Tenant-occupied properties will not be considered for participation. 8. Prior to approval by the EDA for participation in the Program,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. The EDA will not enter into a purchase agreement or award funding for demolition of a property which qualifies for the National Registry of Historical Structures. H. Program Priorities If more than one application for demolition funding or acquisition has been received during a given month, the Program Staff shall rank the applications to determine the best candidates for Program participation based on the information and criteria noted below and in the following order: 1. Properties that can meet established guidelines and time frame will be considered first. 2. Properties considered the most substandard will be considered first. 3. Requests submitted by Mounds View residents will be considered first. 4. Applicants who have expressed a funding "need" shall be considered first over applicants with little to no "need". 5. Properties should be equally distributed by location and value throughout the City when possible, and provide a viable financial mix of properties to support Program financial requirements. I. Option 1: Funding of Demolition: 1. Blight Qualification: Properties being considered for demolition funding must meet blight qualifications as outlined in Section G. Applicants shall demonstrate proof of construction financing in a form acceptable to the City. 2. Need for Variances: If a variance is required to redevelop the property, the homeowner must obtain the variance prior to the approval of demolition funds. If a variance is not granted, demolition funds shall not be awarded. 3. Comprehensive Plan/Zoning: The Comprehensive Plan designation and the zoning on the property must allow for its redevelopment as a single-family residence. Page 3 City of Mounds View Housing Replacement Program S4. Development Agreement: The applicant must enter into a Demolition and Redevelopment Agreement with the EDA which will stipulate housing design and site development features consistent with the guidelines attached in Exhibit A (Housing Design and Site Criteria) and identify the time frame for completion. The development agreement will include an estimate of the minimum value of the home to be constructed. 5. Demolition Contract: The applicant must obtain three estimates for demolition from qualified demolition contractors which will assist in determining the amount of demolition funds to award for the project. The total amount of assistance provided shall not exceed the lowest responsible estimate received not to exceed $10,000. The selected demolition contractor must be able to meet project deadlines as outlined by City Staff. The demolition contractor will be required to obtain all necessary City permits, pay applicable fees and provide for appropriate handling and abatement of any hazardous materials encountered. Overall demolition supervision will be provided by a designated Program Staff in conjunction with the interested participant. 6. Funding Mechanism: The assistance will be provided to the applicant upon conclusion of the demolition activity and satisfactory final inspection of the demolition permit, in the form of a ten year forgivable interest-free loan, with a 10% incremental reduction in principal upon each successive year the participant lives in the new home, with complete forgiveness after the tenth year in the home. The annual reduction in principal is tied to the date of completion/owner- • occupancy of the new home and not to the loan closing. If the participant sells or rents the home to a third party prior to the tenth year, the following loan repayment schedule shall apply: If the home is sold before The amount to be repaid upon closing shall be End of the first year, 100% of the loan amount End of the second year, 90% of the loan amount End of the third year, 80% of the loan amount End of the fourth year, 70% of the loan amount End of the fifth year, 60% of the loan amount End of the sixth year, 50% of the loan amount End of the seventh year, 40% of the loan amount End of the eighth year, 30% of the loan amount End of the ninth year, 20% of the loan amount End of the tenth year, 10% of the loan amount After the end of the tenth year, the applicant will be provided with a lien release and the necessary paperwork to record at Ramsey County. The loan shall be administered by the Housing Resource Center, NorthMetro Office, a division of the Greater Metropolitan Housing Corporation (GMHC). The Housing Resource Center or GMHC shall prepare lien release and satisfaction documents as needed. • Page 4 City of Mounds View Housing Replacement Program • J. Option 2: Acquisition of Property by EDA 1. Blight Qualification: Once an offering letter is received from the interested participant, Program Staff will arrange, by appointment, an inspection of the interior of the home to establish blight qualification as outlined in Section G. In addition, Program Staff will make a determination as to the potential presence of hazardous materials on the property and will obtain a statement from the interested participant regarding any knowledge of the property's use for production, storage, deposit, or disposal of any toxic or hazardous wastes or substances or asbestos products whatsoever, during the time the interested participant owned the property and prior to the date of interested participant purchased property. Properties with recognized environmental conditions or hazards may be considered if the purchase price is reduced sufficiently to cover increased site clearance and preparation costs. If a property satisfies the blight conditions as outlined herein, acquisition procedures can continue. If the blight test cannot be met, the interested participant will be notified in writing indicating the reasons why the property cannot be considered for acquisition. 2. Need for Variances: 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 other properties which do not require a variance. If the EDA chooses to pursue a variance to enable the acquisition of the property, an application shall be filed following the usual procedures. If a variance is not • approved, the property cannot be considered for acquisition. 3. Appraisal: Determining Purchase Price: If the EDA chooses to continue with the acquisition, a fee appraisal shall be ordered at the EDA's expense and the result shall be used in determining the amount of the purchase price to offer to the interested participant. The independent fee appraiser shall be carefully instructed to document in specific terms the conditions of the property including details regarding structural condition and floor plan. The acceptance of these conditions in the market place should be discussed in the report. The appraiser's value judgment should reflect these conditions. A negotiated price considerably below the assessor's market value may be accepted without an appraisal on a case by case basis if the interested participant concurs. 4. Purchase Agreement: Closing Procedures a. When both parties have verbally agreed upon a purchase price, Program Staff and Legal Counsel shall prepare a Purchase Agreement to be presented to the interested participant. The purchase price contained in the Purchase Agreement shall be within the range authorized by the EDA. The purchase agreement shall be contingent on the completion of an environmental evaluation suggesting no evidence of hazardous waste on the property. The interested participant shall receive a copy of the purchase agreement including the following information: • Page 5 City of Mounds View Housing Replacement Program • (1) The purchase price (2) How the purchase price was determined (3) The amount of earnest money (4) A date to sign the Purchase Agreement (5) A closing date b. To enable the acquisition process to continue, the interested participant must execute the purchase agreement and a "waiver of relocation benefits" form. The waiver of relocation must be clearly explained by City staff to the interested participant at this time, if not explained previously. c. The EDA Executive Director and President shall be signatories on the purchase agreement. d. The acquisition and disposition of the property must be in conformance with the Mounds View Comprehensive Plan. e. Following EDA authorization of these agreements, interested participants and/or Program Staff will be requested to assemble and supply all required documentation prior to closing as outlined below. (1) Title documentation acceptable to City staff must be furnished to the • Program Staff to facilitate the rendering of a title opinion. The interested participant will bear the cost of updating the Abstract or RPA as part of the closing procedures. (2) EDA Legal Counsel shall review the submitted title documentation and will provide Program Staff and interested participant with a written opinion of title. EDA Legal Counsel will also secure title insurance. (3) If the title opinion indicates the property has marketable title, purchase procedures may continue. If the title opinion does not indicate marketable 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. It shall be the seller's responsibility to correct title deficiencies to effectuate the sale of the property dependant upon the additional time and expense incurred. (4) Simultaneously with the title opinion, an environmental evaluation will 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. • Page 6 City of Mounds View Housing Replacement Program f. The seller must be prepared to vacate the property on the day of closing unless other arrangements have been made with Program Staff. g. If the interested participant decides not to sell the property after execution of the purchase agreement then the interested participant must provide the EDA with the following: (1) A letter expressing their desire not to proceed with selling the property (2) The full amount of earnest money received upon execution of the purchase agreement, and (3) Full payment of legal and consulting fees incurred by the EDA after the execution of the purchase agreement in preparation for the closing of the property. 5. Selection of Demolition Contractor and Procedures: After the closing, Program Staff will select a demolition contractor by sending Requests for Proposals (RFP) to at least three demolition contractors. The proposal received with the lowest price will have priority. The demolition contractor must be able to meet project deadline as outlined in the RFP. The demolition contractor will be required to obtain all necessary City permits and pay applicable fees. A Program Staff person will provide demolition supervision. 6. Marketing: Program Staff will advertise the sale of the property by contacting the St. Paul Realtors Association, area residential developers, interested buyers and by posting signs on the property. 7. Selection of Developer: Program Staff will negotiate the purchase of the property with an acceptable buyer/developer or buyer/builder team. If a buyer/developer or buyer/builder team cannot be obtained, the EDA may consider selling property to a developer or builder for sale to the open market after completion. As part of the sale of the property, the buyer/developer team purchasing party must sign a purchase and redevelopment agreement with the EDA, which will stipulate minimum standards, housing design and time frame for completion. (Refer to Exhibit A, Housing Design and Site Criteria guidelines, attached.) 8. Development Agreement: Closing Procedures a. When a redevelopment proposal submitted by a buyer/developer or buyer/builder team has been approved by the EDA, Program Staff and Legal Counsel will prepare a Purchase and Redevelopment Agreement. The selected developer will receive a copy of the Purchase and Redevelopment Agreement which will include, but not be limited to, the following information: S Page 7 City of Mounds View Housing Replacement Program • (1) Construction of minimum improvements (2) Estimated market value of the property and improvements (3) Purchase price (4) Completion date (5) Financial guarantee submitted by the developer with a minimum amount equal to 100% of the minimum improvement value (6) Revesting of Title. Subject to unavoidable delays, if the Developer fails to carry out its obligations with respect to the construction of the Minimum Improvements, the Authority will have the right to re-enter and take possession of the property. The Authority at its option may declare a termination in favor of the Authority of the title and that the title and all rights and interests of the Developer will revert to the Authority. 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