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HomeMy WebLinkAbout10-14-2014PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting October 13, 2014 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 (arrived at 6:35 p.m.) Commissioner Hull, Commissioner Meehlhause, Commissioner Mueller (arrived at 6:35 p.m.) and Executive Director Ericson. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Meehlhause/Hull. To Approve the October 13, 2014, Agenda as presented. Ayes – 3 Nays – 0 Motion carried. 4. PUBLIC INPUT None. 5. APPROVAL OF MINUTES A. April 14, 2014, EDA Minutes. MOTION/SECOND: Meehlhause/Hull. To Approve the April 14, 2014, Minutes as presented. Ayes – 3 Nays – 0 Motion carried. 6. CONSENT AGENDA None. 7. EDA BUSINESS A. Resolution 14-EDA-286, Authorizing and Approving the Authority’s Mounds View EDA October 13, 2014 Regular Meeting Page 2 Purchase Offer for the Property Located at 2665 Ardan Avenue, Mounds View, Ramsey County, Minnesota with Community Development Block Grant funds from Ramsey County HRA, and Approval of the Terms and Conditions and Purchase Agreement. Planning Associate Heller explained the City was proposing to use CDBG funds, which were awarded to the City two years ago to purchase the blighted property located at 2665 Ardan Avenue. She indicated the CDBG funds would cover the expense of the property and demolition. She reviewed photos of the current home along with schematics for the new home. Staff recommended the EDA proceed with the purchase of the property. President Flaherty requested further information on who would be rebuilding the home. Planning Associate Heller stated the Greater Metropolitan Housing Corporation (GMHC) would contract with a local builder for this property. She noted once the house was complete, GMHC would resell the home following the grant guidelines. John Ackerman, 2673 Ardan Avenue, stated he lived next to the subject property. He questioned why the home was being demolished instead of reconstructed. He did not believe the property had become blighted. Ann Ackerman, 2673 Ardan Avenue, commented that tax dollars were being used to purchase and demolish the structure when perhaps the home could be sold on the open market at a lower expense to the public. President Flaherty indicated the City was working to improve and invest in its housing stock. He provided further information on the grants available from the County and Federal government to assist with run down and blighted properties. Mr. Ackerman feared that the value of the new home would not match the surrounding homes. He questioned why the sale of this property was being done outside of the real estate market. President Flaherty was uncertain of the homeowners’ circumstances. Commissioner Mueller stated the City had 73 vacant homes at this time and the homeowner of the subject property approached the City for assistance with their blighted and uninhabitable home. She discussed the tools available to the City through grants and federal funding. Ms. Ackerman asked if the City would have a problem if she and her husband were to put in an offer on the home. He questioned if the EDA would be willing to delay action on this item to allow them to speak with the homeowners. President Flaherty commented this would be entirely up to the Ackerman’s. Mounds View EDA October 13, 2014 Regular Meeting Page 3 Executive Director Ericson stated the CDBG grant funds would expire at the end of 2014. President Flaherty discussed the benefits of the grant program noting it would allow the home with a burnt garage removed and replaced with a new home. He did not understand why the homeowners had not chosen to sell the home on the open market. He provided comment on the other properties the City has tried to purchase through CDBG funds. Mr. Ackerman believed that there was no need to demolish the home, as it could be reconstructed. Ms. Ackerman encouraged the Council to reconsider the request and questioned if the grant funds should be used on another property. Commissioner Meehlhause commented that this was not up to the City to determine. He explained that the EDA was simply acting on the request of the homeowner. Mr. Ackerman went on record stating he and his wife objected to the proposed purchase and demolition of the property at 2665 Ardan Avenue. He requested the EDA delay the proposed project. President Flaherty asked if the EDA could delay the project. He believed the EDA had a small window of opportunity for this project. He apologized to the Ackerman’s for the short notice on this project. Planning Associate Heller indicated the City had a purchase agreement in place with the homeowner. Executive Director Ericson stated there would be a risk in delaying the project as a purchase agreement was in place and could be withdrawn by the seller and the funds would go back to the County. Commissioner Hull feared that if the EDA did not take action on the property, that it would sit on the open market for another year or two and no action would be taken. He explained that the City was trying to help the neighborhood by improving the property. Commissioner Gunn reiterated the fact that the homeowners came to the City and offered their property for the CDBG grant program. She explained that the City did not force the property owner into this sale. Mr. Ackerman had a problem with homeowners handing their property over to the government for sale. Commissioner Meehlhause asked if this item could be delayed to October 27th, to allow the Ackerman’s to speak with their neighbors, and still allow the City to complete the purchase of the property, if necessary. Executive Director Ericson stated he had a meeting with GMHC next week. He stated the reality was that a delay could have the entire project falling apart. Mounds View EDA October 13, 2014 Regular Meeting Page 4 Commissioner Gunn commented the property owners have put their good faith in the City and had assumed this purchase agreement would move forward. Mr. Ackerman asked if the EDA was willing to delay action on the matter for two weeks. MOTION/SECOND: Hull/Mueller. To Waive the Reading and Adopt Resolution 14-EDA-286, Authorizing and Approving the Authority’s Purchase Offer for the Property Located at 2665 Ardan Avenue, Mounds View, Ramsey County, Minnesota with Community Development Block Grant funds from Ramsey County HRA, and Approval of the Terms and Conditions and Purchase Agreement. Commissioner Mueller explained this property has been vacant since February and was deemed a total loss by the homeowners’ insurance company. She understood why the homeowners wanted to cut their losses and sell the property. She was pleased that the City had a program in place that would assist in improving this property. President Flaherty commented that the home has been burnt down for the past eight months and no action was taken by any of the surrounding homeowners. For this reason, he would support the City moving forward with the purchase and demolition of the property. Ayes – 5 Nays – 0 Motion carried. 8. REPORTS None. 9. NEXT EDA MEETING: Monday, October 27, 2014, at 6:30 p.m. 10. ADJOURNMENT President Flaherty adjourned the meeting at 7:14 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc.