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HomeMy WebLinkAbout07-12-2010PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting July 12, 2010 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 6:30 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: President Flaherty, Vice President Stigney, Commissioner Hull, Commissioner Mueller, Commissioner Gunn, and Executive Director Ericson. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Hull. To Approve the July 12, 2010, Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. PUBLIC INPUT None. 5. APPROVAL OF MINUTES A. January 11, 2010, EDA Minutes. MOTION/SECOND: Gunn/Mueller. To Approve the January 11, 2010, Minutes as presented. Ayes – 5 Nays – 0 Motion carried. B. January 25, 2010, EDA Minutes. MOTION/SECOND: Mueller/Hull. To Approve the January 25, 2010, Minutes as presented. Ayes – 5 Nays – 0 Motion carried. 6. CONSENT AGENDA None. Mounds View EDA July 12, 2010 Regular Meeting Page 2 7. EDA BUSINESS A. Resolution 10-EDA-260, Authorizing the Expenditure of Tax Increment Financing Funds for the Appraisal of 7968 Edgewood Drive (For Consideration of Purchase Under the EDA’s Housing Replacement Program) Economic Development Specialist Steinmetz stated the EDA created the Housing Replacement Program in 1996. Since that time, the EDA has been involved with the acquisition and/or demolition of about five homes in Mounds View. The objectives of the program are as follows: • Replace deteriorating substandard housing on scattered sites throughout Mounds View 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 The program has the following two options to provide demolition assistance as a ten year/forgivable deferred loan or acquire the property (the EDA will purchase the home and market it to potential buyers). Economic Development Specialist Steinmetz indicated on June 21, 2010, staff received a Housing Replacement Program application from Mr. Ken Nollet, owner of a single-family home located at 7968 Edgewood Drive in Mounds View. Built in 1941, the home sits on a .84-acre lot. Mr. Nollet is asking the EDA to acquire the property. Mr. Nollet inherited the property from his uncle and does not reside in the property (the house is currently vacant). Mr. Nollet works and lives in Japan. Economic Development Specialist Steinmetz stated Mr. Nollet’s application meets the EDA’s Housing Replacement Program criteria. The property is on the City’s list of parcels eligible for acquisition as part of the EDA’s Project Plan for the Mounds View Economic Development Project. In addition, the home qualifies for the Housing Replacement Program’s blight test because of the totality of the home’s deficiencies. Mounds View’s Housing/Code Enforcement Inspector Jeremiah Anderson completed an exterior and interior inspection of the property on July 7, 2010. Economic Development Specialist Steinmetz explained the housing stock surrounding 7968 Edgewood Drive has deteriorated based on the amount of vacant and foreclosed properties located within the neighborhood. She indicated the current County assessed value was $120,000. An adjacent property would be on the market later this year. Unfortunately, the status of the housing stock in this neighborhood is not unlike many neighborhoods in the City. The success of any community includes, but is not limited to, a well-maintained housing stock. Staff recommends that the EDA adopt the Resolution authorizing the expenditures of TIF funds for the Mounds View EDA July 12, 2010 Regular Meeting Page 3 appraisal of 7968 Edgewood Drive. President Flaherty questioned if the property was reviewed by the EDC. Economic Development Specialist Steinmetz stated the EDA was reviewing the proposal first. President Flaherty asked if the applicant had contacted a real estate agent. Mr. Nollet stated he was in contact with a real estate agent, but the agent was dismissive of the site. He felt the neighboring properties deserved the site to be nicely redeveloped. Commissioner Mueller questioned if the home was habitable. Mr. Nollet stated he invested funds into the home to bring into compliance but felt it was not habitable at this time. Commissioner Hull asked if the TIF funds could be used for anything else. Economic Development Specialist Steinmetz explained the 2010 budget had $150,000 for the housing replacement program. She recommended the EDA purchase this property, as it was a viable property that met the criteria of the housing replacement program. Commissioner Mueller questioned the expense of an appraisal. Economic Development Specialist Steinmetz estimated this expense to be $400-500. President Flaherty felt the EDC should have reviewed this information before being brought to the EDA. He explained the applicant had other options, such as the realtors association and the Housing Resource Center. Economic Development Specialist Steinmetz stated Mr. Nollet did contact the Housing Resource Center and was referred to the City of Mounds View. Commissioner Mueller stated the housing stock along Woodlawn was from the 1940’s. She questioned if the City provided funding to update the homes in that area. Executive Director Ericson stated he was not aware of any funds used along Woodlawn, but they were used along Spring Lake Road and Pleasant View Drive. He explained the property on Edgewood was a telling story and redevelopment of the site spurred investment in the neighborhood. Commissioner Gunn expressed concern with code enforcement issues as homes continued to deteriorate in this area and stated she was in favor of acquiring the property. Commissioner Hull agreed the EDA should proceed with the acquisition of this property to eliminate the further deterioration of the neighborhood. Vice President Stigney questioned if it would be more prudent to demolish rather than acquire the property. He indicated that more properties could be assisted if 7968 Edgewood were demolished, which meant the site would not need an appraisal. Vice President Stigney explained the housing replacement funds were limited and felt demolishing the site would spread the funds further throughout the City. Mounds View EDA July 12, 2010 Regular Meeting Page 4 Kevin Halverson, 2400 County Road H2, stated the home could be removed by Able & Simple Moving, instead of being demolished, which would further reduce the expense to the City. President Flaherty suggested the applicant explore other options, as he was not in favor of the purchase. MOTION/SECOND: Mueller/Stigney. To Deny Resolution 10-EDA-260, Authorizing the Expenditure of Tax Increment Financing Funds for the Appraisal of 7968 Edgewood Drive (for Consideration of Purchase Under the EDA’s Housing Replacement Program). Commissioner Mueller indicated the property would be appraised if the site were sold through a Realtor. She explained it was a tough economical time and then thanked staff for the information provided this evening. Ayes – 3 Nays – 2 (Gunn & Hull) Motion carried. 8. REPORTS None. 9. NEXT EDA MEETING: Monday, July 26, 2010, at 6:30 p.m. 10. ADJOURNMENT President Flaherty adjourned the meeting at 7:02 p.m. Respectfully submitted, Recorded and transcribed by: Carla Wirth TimeSaver Off Site Secretarial, Inc.