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HomeMy WebLinkAbout08-26-2013PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting August 26, 2013 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 Gunn, Commissioner Hull, Commissioner Meehlhause, Commissioner Mueller, City Attorney Riggs, and Executive Director Ericson. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Mueller/Gunn. To Approve the August 26, 2013, Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. PUBLIC INPUT None. 5. APPROVAL OF MINUTES A. July 8, 2013, EDA Minutes. MOTION/SECOND: Mueller/Meehlhause. To Approve the July 8 , 2013, Minutes as presented. Ayes – 5 Nays – 0 Motion carried. 6. CONSENT AGENDA None. 7. EDA BUSINESS A. Resolution 13-EDA-281 Authorizing and Approving the Authority’s Purchase Offer for the Property Located at 5420 Adams Street, Mounds Mounds View EDA August 26, 2013 Regular Meeting Page 2 View, Ramsey County, Minnesota, and Approval of the Terms and Conditions and Purchase Agreement. Economic Development Specialist Steinmetz stated the EDA was awarded $100,000 in Community Development Block Grant (CDBG) funding in May of 2012. She explained that the funds must be used to acquire and demolish a vacant and blighted single-family home in Mounds View. The property selected for this project was located at 5420 Adams Street. The home was currently listed at $79,000, which was within the grant amount. Economic Development Specialist Steinmetz indicated that after the home was demolished, the EDA would donate the vacant parcel to Habitat for Humanity for construction of a new home for a low income family. Staff requested the Council approve the purchase of the property at 5420 Adams Street. President Flaherty asked what the purchase price for the property would be. Economic Development Specialist Steinmetz indicated a purchase price has not been agreed upon, but staff was recommending the EDA offer $75,000. Commissioner Mueller asked if the garage would be removed and demolished from the property. Economic Development Specialist Steinmetz stated this would be the intent. Commissioner Meehlhause questioned if the EDA had a time limit attached to the CDBG funds. Economic Development Specialist Steinmetz commented there was no deadline however, the County wanted to see the funds used sooner rather than later. She explained that this was the City’s third attempt to purchase a blighted home. Commissioner Meehlhause inquired when the property would close. City Attorney Riggs commented the date was uncertain at this time. Commissioner Meehlhause asked if the City would be responsible for the 2014 property taxes. Executive Director Ericson indicated the City may be responsible for several months of taxes. This would be determined upon how quickly the property could be demolished and turned over to Habitat for Humanity. President Flaherty questioned if the property had any back taxes due to the fact it was a foreclosure. He inquired how the City would proceed with the purchase if there were two years of back taxes. City Attorney Riggs indicated this was uncertain but would be negotiated with the bank. Executive Director Ericson recommended that the EDA walk away from the purchase if the bank was not willing to cover the expense of outstanding property taxes. President Flaherty asked if the property had a variance. Executive Director Ericson commented he was uncertain, but would investigate this further. Mounds View EDA August 26, 2013 Regular Meeting Page 3 MOTION/SECOND: Gunn/Mueller. To Waive the Reading and Adopt Resolution 13-EDA-281 Authorizing and Approving the Authority’s Purchase Offer for the Property Located at 5420 Adams Street, Mounds View, Ramsey County, Minnesota, and Approval of the Terms and Conditions and Purchase Agreement, up to the Listing Price and extending the deadline to the end of September 30, 2013. Commissioner Mueller questioned how the City would select a company to demolish the property. Economic Development Specialist Steinmetz stated a bid request process would be followed to find a contractor to demolish the property. She noted all materials that can be recycled would be done so by Habitat for Humanity. Ayes – 5 Nays – 0 Motion carried. 8. REPORTS A. Discuss Potential RFQ for Land Development Planning Services for Southeast Corner of County Road 10 and County Road H2 Action on this item was deferred to the work session meeting. B. Discuss Mounds View Emergency Deferred Loan Criteria Economic Development Specialist Steinmetz reported this loan was one of four loans offered by the EDA to Mounds View residents for home improvements. These loans were offered in emergency situations and were deferred for up to 10 years. She explained a manufactured home owner in Mounds View needed a new roof and was seeking assistance with this expense. She indicated the loan criteria states that roof repairs or replacements can only occur if there has been significant damage to the interior of the property. Staff found this to be too stringent and recommended the EDA consider amending the loan criteria language. The EDA was in favor of amending the language to address this concern. Economic Development Specialist Steinmetz explained that the loan criteria also requires that homeowners be current on mortgage payments and property taxes. She reported the homeowner in question was behind on his payments. She noted the homeowner was only several days behind on the mortgage and a payment plan was being negotiated with Ramsey County for property taxes. Staff questioned if the EDA was in favor with proceeding with the emergency loan if these situations were addressed. President Flaherty questioned if the manufactured home park would co-sign for the loan. Economic Development Specialist Steinmetz indicated this has not been discussed. City Mounds View EDA August 26, 2013 Regular Meeting Page 4 Attorney Riggs indicated this question could be asked. President Flaherty was not in favor of bending the rules in such a manner that a precedent could be set. Economic Development Specialist Steinmetz commented the emergency loan was only offered to low income families in need and the present case would qualify. She indicated the EDA loan was their last resort. President Flaherty recommended staff investigate the ability to require the manufactured home park co-signing on the loan. He was in favor of helping as many families as possible, but wanted to be assured the loan funds were being used properly. 9. NEXT EDA MEETING: Monday, September 9, 2013, at 6:30 p.m. 10. ADJOURNMENT President Flaherty adjourned the meeting at 7:03 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc.