Loading...
HomeMy WebLinkAbout10-27-2014 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, October 27, 2014 6:30 PM 1. CALL TO ORDER 2. ROLL CALL: President Flaherty, Vice President Gunn, Commissioner Hull, Commissioner Meehlhause, Commissioner Mueller 3. APPROVAL OF AGENDA 4. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 5. APPROVAL OF MINUTES - None 6. CONSENT AGENDA - None 7. EDA BUSINESS A. Resolution 14-EDA-287, Authorizing and Approving a Cancellation Agreement for the Authority's Purchase Offer for the Property Located at 2665 Ardan Avenue, Mounds View, Ramsey County, Minnesota. 8. REPORTS 9. NEXT EDA MEETING: Monday, November 10, 2014, at 6:30pm 10. ADJOURNMENT Item No: EDA 7A Meeting Date: October 27, 2014 Type of Business: EDA Business City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Heidi Heller, Planning Associate Item Title/Subject: Approval of the Authority's Cancellation of the Purchase Offer for the Property Located at 2665 Ardan Avenue, Mounds View, Minnesota Introduction: In May 2012, the Mounds View Economic Development Authority was awarded a $100,000 Community Development Block Grant (CDBG) for the acquisition and demolition of blighted single family homes. The lots would then be transferred to a non-profit housing group for the construction of new homes for low-income families. The City found a willing seller, began working with the Greater Metropolitan Housing Corporation (GMHC) to do the new home construction, and the EDA entered into a purchase agreement with the Seller for the property at 2665 Ardan Avenue. Discussion: City staff has been working with the Greater Metropolitan Housing Corporation to build a new home in place of a home that has been destroyed by a fire. The grant requires that the new house be affordable to a household at 80% area median income or below, and since it is CDBG funding, Ramsey County doesn’t want the sale price to be over $200,000. After receiving bids for the home construction, and receiving more information from Ramsey County, GMHC determined that they would not be able to make this home work out financially. Neither City Staff nor GMHC wanted to build a smaller or cheaper home just to make it work since that would hurt the existing neighborhood values, and be harder to sell. Since the GMHC will not be partnering on this property, the EDA will no longer be purchasing the property from the owner, and must approve the attached cancellation agreement. Recommendation: Resolution 14-EDA-287 is attached for the Authority’s consideration which authorizes the cancellation agreement of the authority's purchase offer for the property located at 2665 Ardan Avenue, Mounds View, Ramsey County, Minnesota. Respectfully submitted, Heidi Heller Planning Associate MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION 14-EDA-287 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION AUTHORIZING CANCELLATION OF A PURCHASE AGREEMENT WHEREAS, Shelly D. Parker, a single person (“Seller”), is an owner of real estate located at 2665 Ardan Avenue, Mounds View, Ramsey County, Minnesota, and which is legally described in the Cancellation Agreement as hereinafter defined (the “Property”); and WHEREAS, the Mounds View Economic Development Authority, a public body corporate and politic (the “EDA”) desires to cancel the executed purchase agreement made with the Seller of the Property; and WHEREAS, the EDA has determined that at this time, due to the limitations and requirements of the CDBG grant funds, the purchase of the Property and new home construction will not be financially feasible; and WHEREAS, on October 13, 2014, the EDA executed an offer and purchase agreement (the “Agreement”) providing for the terms of the conveyance of the Property from Seller to the EDA. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY, AS FOLLOWS: 1. The recitals set forth in this Resolution are incorporated into and made a part of this Resolution. 2. The cancellation of the purchase of the Property by the EDA is hereby approved pursuant to the terms of the Agreement, which is also approved in substantially the form presented to the Commission on this date, subject to modifications that do not materially alter the EDA's rights and obligations under the Agreement and that are approved by the Authority's President and Executive Director, which approvals shall be conclusively evidenced by execution of the Agreement. 3. The President and Executive Director of the EDA are hereby authorized and directed to execute all appropriate documents, including but not limited to the Cancellation Agreement, to effectuate the transaction contemplated by this Resolution. Resolution 14-EDA-287 Page 2 4. The President and Executive Director of the EDA, staff and consultants are hereby authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution. Approved by the Board of Commissioners of the Mounds View Economic Development Authority this 27th day of October, 2014. _________________________________ Joe Flaherty President ATTEST: __________________________________________ James Ericson Executive Director CANCELLATION OF PURCHASE AGREEMENT FOR 2665 ARDAN AVENUE This Cancellation of Purchase Agreement (“Cancellation Agreement”) entered into this 27th day of October, 2014, by and between the Mounds View Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota (“EDA”) and Shelly D. Parker, a single person (“Parker”). WHEREAS, EDA and Parker entered into a Purchase Agreement, executed October 13, 2014 (the “Purchase Agreement”) regarding the real property legally described as Lot 2, Block 1, Richard Charbonneau Addition, Ramsey County, Minnesota, located at 2665 Ardan Avenue, Mounds View, MN 55112 (the “Property”); WHEREAS, EDA and Parker desire to cancel and terminate the Purchase Agreement. NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, EDA and Parker hereby agree as follows: 1. The recitals set forth in this Cancellation Agreement are incorporated into and made a part of this Cancellation Agreement. 2. Parker represents and warrants to EDA that Parker has not assigned, transferred, or conveyed her interest in the Purchase Agreement. 3. Parker acknowledges the EDA has not paid any earnest money. 4. The Purchase Agreement is hereby cancelled, terminated and null and void and neither party shall have any further rights or obligations thereunder. IN WITNESS WHEREOF the undersigned have executed this instrument the day and date first above written. MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY By: __________________________ _____________________________ Its: Joe Flaherty, President Shelly D. Parker By: __________________________ Its: James Ericson, Executive Director