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Housing and Redevelopment Authority Meeting Minutes •September 14, 2004 Page 3 2 3. What other options does the HRA have? 3 If the HRA does not want to pursue the sale of this land to LaNel, they could 4 send out a new Request For Proposals (RFP) to see if any housing developers would 5 be interested in constructing town homes on the site. However, it should be noted 6 that the HRA declined a town home development last time since it did not recapture 7 as much in land sale proceeds or tax revenue over time. 9 Discussion: 10 Councilmember Horst noted that LaNel seem to be serious, adding that it seems to be the best 11 option for the HRA to sell at this point and allow them to build. 12 13 There was discussion with regard to tax value collection. 14 15 Councilmember Stille indicated that he pulled up appraisals in comparison, suggesting that 16 $7,000 to $9,000 seemed to be the market value. He asked Ms. Kvilvang if she could confirm 17 his finding to be accurate; she did. .18 19 Councilmember questioned the need of $20,000 to clean up the site, suggesting that the HRA require a line of credit to ensure that the landscaping is completed. Ms. Kvilvang assured him that this request would be discussed with LaNel. 22 23 Councilmember Faust questioned the zoning of the property. City Manager Morrison responded 24 in noting that it was zoned single-family, however, had been re -zoned to PUD to allow multi - 25 family. 26 27 Councilmember Faust inquired as to the difference in taxes between the different zones. It was 28 noted that single-family is 1.0 verses multi -family being 1.25. He continued in noting he feels 29 that it is a good idea to "press on" and get it on the tax roll. 30 31 Councilmember Faust concluded in discussing past water issues at the location, suggesting that it 32 is looked into to ensure that the problems have been rectified. 33 34 Motion by Councilmember Faust, Seconded by Councilmember Stille to approve the purchase 35 agreement with LaNel Financing conditioned upon 1) Payment of $285,000 for the Land and Act a 36 Closing Date of Not Later than October 30, 2004, 2) Payment of a Non-refundable Deposit of 37 $23,500 (Loss of City Portion of Tax Revenue), 3) Payment to the City of $5,000 for Attorney 38 and Consultant Fees, 4) HRA Right of First Refusal to Purchase the Property What They Sold it 39 for ($285,000), 5) Proof that Past Water Issues Have Been Resolved and 6) Financial Security 40 with Regard to Landscaping. 40 Motion carried unanimously. 43