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HomeMy WebLinkAbout05-14-2001PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting May 14, 2001 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 9:08 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Sonterre, Stigney, Marty, Quick, and Thomas. NOT PRESENT: None. 3. AGENDA ADDITIONS There were no additions or corrections to the agenda. MOTION/SECOND: Marty/Quick. To Approve the Agenda for May 14, 2001 as presented. Ayes – 5 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. Approve Minutes of April 23, 2001. MOTION/SECOND: Marty/Stigney. To Approve the Minutes of the EDA for April 23, 2001 as presented. Ayes – 5 Nays – 0 Motion carried. 5. SPECIAL ORDER OF BUSINESS None. 6. REPORTS None. Mounds View EDA May 14, 2001 Regular Meeting Page 2 7. CONSENT AGENDA None. 8. EDA BUSINESS A. Consider Approval of Resolution 01-EDA-148, a Resolution Approving and Authorizing the Expenditure of Tax Increment Funds for the Acquisition of 3016 County Road H2 for the Purpose of Future Redevelopment. Economic Development Coordinator Parrish explained that on Wednesday of last week Staff had the opportunity to look at property located at 3016 County Road H2 when they learned it was available by driving by. The property was viewed and Staff feels purchasing the property would be an opportunity to allow for future redevelopment in the area. He noted the City has control of other property in the area and has contemplated redeveloping the area into a residential subdivision. Economic Development Coordinator Parrish noted that, after consultation with the City Administrator, Staff entered into a purchase agreement for the purchase of the property at a reduced price of $150,000. Economic Development Coordinator Parrish stated that Staff anticipates that, should the City purchase the property, the lot could be subdivided and the lot with the house sold or rented until the EDA has a clear indication as to how it wishes to proceed in that area. Commissioner Thomas inquired as to the value of the subdivided property behind the house if the house is sold for $130,000. Economic Development Coordinator Parrish stated he felt the City would come out ahead as it would subdivide at the minimum one (1) acre. He then noted the value of the subdivided lot is speculative at this point but taking into consideration the potential for creating a new residential subdivision he estimates that the City could net approximately $230,000 on the deal. Commissioner Thomas stated she did not want to discuss the hypothetical scenarios for the property but wanted to know the assessed value of the subdivided piece of land knowing there is not currently access to it. Commissioner Quick clarified that the land is not landlocked as the City owns the property on the east side of it and noted a developer would put in a road. Mounds View EDA May 14, 2001 Regular Meeting Page 3 Commissioner Thomas indicated she would like to know the assessed value of the land with no improvements. Commissioner Quick stated that when Council had its goal setting meeting one of the items discussed was lifecycle housing. He then noted that this location might be a perfect location for that type of housing. He further noted that the lot, as it sits unimproved, is not highly valuable but noted the opportunity to join other parcels to create a residential subdivision makes the property valuable. President Sonterre indicated he was impressed with the proposal and stated that the City continues to consider the community as “built out” with no future expansion and noted that anytime there is a way to create buildable lots he supports that effort. Commissioner Thomas indicated she liked the idea but wanted to make sure the City gets its purchase price back out of the property. Commissioner Marty stated it looks like the City would control slightly more than six (6) acres with the acquisition of this property. Economic Development Coordinator Parrish confirmed Commissioner Marty’s statement. President Sonterre stated he was comfortable without having an appraisal as he feels with the size of the lot the City is getting a good price based on what he knows the market value of his house to be. Vice President Stigney indicated that if residents in the area wanted to subdivide their lots to create a subdivision they could do so without the City having to purchase the proposed property. Vice President Stigney asked how much the City paid for the tax forfeited properties next door. Economic Development Coordinator Parrish indicated one tax forfeited parcel was obtained for $10,000 and the other one for between $30,000 and $40,000 but indicated there were not houses on the lots and stated that tax forfeited properties are offered to the City at a reduced rate. Vice President Stigney asked if the property is a blighted property. Economic Development Coordinator Parrish indicated he did not consider the property to be blighted but said there are elements of the house that could be improved. Community Development Director Ericson indicated a case could be made that it is blighted because the house is undersized for the lot, there are areas where there may be concern for the structure of the house, there is evidence of water damage in the ceiling of the expanded area, and Mounds View EDA May 14, 2001 Regular Meeting Page 4 there is some bad siding that should be replaced making the house blighted in comparison to other houses in the area. Vice President Stigney asked whether the City would need to incur expenses to fix the property in order to rent it out. Economic Development Coordinator Parrish indicated there are some things that would need to be brought up to Code but stated those were nominal and should not amount to more than one month’s rent. He then indicated that the property is part of an estate and some improvements, including replacing the roof, have been made in an effort to improve the property. Vice President Stigney stated he did not feel the City needed to purchase the property and then asked if the property would stay in a TIF district. Economic Development Coordinator Parrish indicated that TIF funds would be utilized for the purchase of the property but said the property is not within a TIF district. Vice President Stigney stated he had reservations concerning using TIF funds to purchase the property. Commissioner Quick stated he felt this property is a very intriguing piece of property as it is so large and the City owns other property in the area increasing the potential for redevelopment. MOTION/SECOND: Quick/Sonterre. To Waive the Reading and Approve Resolution 01-EDA- 148, a Resolution Approving and Authorizing the Expenditure of Tax Increment Funds for the Acquisition of 3016 County Road H2 for the Purpose of Future Redevelopment. Commissioner Marty stated he had reservations but thinks with the amount of land involved and due to the fact that the City already controls several properties in that area that this would be a good acquisition for the City. Commissioner Thomas stated she agreed with Commissioner Marty that she had reservations but thinks when considering the price of the property, the size of the property, and knowing the City does not have nearly enough property to build on she is fine with the acquisition. Ayes – 4 Nays – 1(Stigney) Motion carried. Commissioner Quick requested that the house be discussed at the next work session. Mounds View EDA May 14, 2001 Regular Meeting Page 5 9. ADJOURNMENT President Sonterre adjourned the meeting at 9:30 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc.