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DOI3SEY & WHITNEY PROFESSIONAL LIMITED LIABILITY PARTNERSHIP • NEW YORK PILLSBURY CENTER SOUTH SEATTLE WASHINGTON, D. C. 220 SOUTH SIXTH STREET ROCHESTER, MN MINNEAPOLIS, MINNESOTA 55402-1498 DENVER BILLINGS (612) 340-2600 ORANGE COUNTY, CA PAX (912) 340-2868 GREAT FALLS LONDON MISSOULA BRUSSELS mull R-SOTH DES MOINES HONG KONG (612)340.2969 FARGO December 14, 1995 Mr. Michael J. Mornson City Manager City of St. Anthony 3301 Silver Lake Road St. Anthony, MN 55418 Re: Use of HRA Funds for Redevelopment • of Residential Lots Dear Mike: I have reviewed your memorandum regarding the above, proposing a new policy for the use of HRA funds to clear and redevelop residential lots in the City. In your memorandum you have suggested that the developer purchase the property, clear it and build a new house before any payment of the HRA funds to the developer. As you know, in previous cases the HRA has acquired the properties and then has resold them to a developer, subject to a redevelopment agreement, for purposes of achieving the same result. As you and I have discussed, there would be some advantages in avoiding the necessity for the HRA to acquire title to the property. This would avoid legal expense in acquiring and closing the purchase of the property and in closing on the sale of the property. It would also avoid having the City or the HRA in the chain of title to the property, which is advantageous in the event of any environmental problems or other liabilities with respect to the property. The one disadvantage might be that the City does not have quite as much control over the matter because it needs to wait for a developer to acquire the property on its own. There also may be complications if there are competing buyers. • That is, the developer probably would like to have an agreement with the HRA