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2016.10.05 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • WEDNESDAY, OCTOBER 5, 2016 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order 2. Roll call 3. Approval of minutes from the September 6, 2016 regular meeting 4_ Consider a resolution authorizing acquisition of 5442 Orchard Avenue North 5. Other business G_ Adjournment Minutes of the Crystal Economic Development Authority Regular Meeting September 6, 2016 President Peak called the regular meeting of the Crystal Economic Development Authority to order at 6:45 p.m. Upon call of the roll, the following members were present: Jim Adams, Elizabeth Dahl, Julie Deshler, Jeff Kolb, Laura Libby, and Casey Peak. The following staff members were present: Anne Norris, Executive Director; John Sutter, Deputy Executive Director; and Troy Gilchrist, City Attorney. Motion by Commissioner Adams (Dahl) to approve the minutes of the July 19, 2016 regular meeting. Motion carried. The EDA considered a resolution adopting a proposed HRA tax levy for 2017. Motion by Commissioner Deshler (Kolb) to adopt a resolution adopting a proposed HRA tax levy for 2017 in the amount of $277,200. Motion carried. There was no other business. Motion by Commissioner Deshler (Dahl) to adjourn the meeting. Motion carried. The meeting adjourned at 6:55 p.m. Casey Peak, President ATTEST: Olga Parsons, Vice President C EDA STAFF REPORT Al.CKYST Acquisition of 5442 Orchard Avenue North FROM: Dan Olson, City Planner DATE: October 4, 2016 TO: Anne Norris, Executive Director (for October 5 EDA meeting) SUBJECT: Consider a resolution authorizing acquisition of foreclosed property at 5442 Orchard Avenue North A. BACKGROUND The subject property went through foreclosure in winter 2015-2016 and the lender took title on August 22. The lender listed the property for sale on September 28 for $74,900. The following are attached: A. Proposed resolution B. 2015 aerial photo C. Property photos D. Hennepin County property information E. Estimated budget B. STAFF COMMENTS The subject property is approximately 89 feet wide and 150 feet deep, containing 13,795 square feet (0.3 acre). Therefore the lot meets zoning requirements for lot area, lot width, and lot depth for a single-family home. The existing house is of slab on grade construction. Based on an examination of the house and property on September 30th staff opinion is that the property would be a good candidate for demolition and lot sale for construction of a new house. The home was built in 1949 and has two small bedrooms, one bath, and a very small combined living/dining room. There is no garage on the property. The lot is generously sized and could accommodate a wide variety of new home styles. The lender's list price is $74,900. Staff recommends a purchase price of $50,000 for this property, which is reasonable considering the small home is slab on grade construction, and that there are over $11,000 in special assessments on the property. PAGE 1 OF 2 C. The attached estimated budget presumes a purchase price of $50,000, other expenses of $28,075 and a lot sale price of $60,000, resulting in an estimated net expenditure of $18,075. So far in 2016, the EDA has generated enough revenue from greater -than -anticipated lot sales to fund this acquisition: Property Sales 2016 Budget $140,000 Actual @ 10/05 $195,000 Est. YE 2016 $195,000 Property Acquisitions $110,000 $0 $50,000* * Includes the possible acquisition of 5442 Orchard for $50, 000 REQUESTED ACTION If the EDA desires to acquire the property, then it should adopt the attached resolution approving the purchase of the subject property and authorizing the execution of documents necessary to complete the purchase. In its motion the EDA should indicate a "not to exceed" amount to purchase the property. The "not to exceed" amount should be discussed at the meeting based on the most recent information which staff will present at that time. PAGE 2 OF 2 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2016-06 A RESOLUTION AUTHORIZING THE ACQUISITION OF 5442 ORCHARD AVENUE NORTH WHEREAS, the Economic Development Authority of the City of Crystal (the "EDA") desires to acquire real property located at 5442 Orchard Avenue North (the "Property"); and WHEREAS, the EDA finds that the proposed acquisition has no relationship to the Comprehensive Plan; and. WHEREAS, the EDA desires to specifically and explicitly authorize execution of any and all documents necessary to complete the purchase of the Property. NOW, THEREFORE, BE IT RESOLVED that the President and Executive Director of the EDA are authorized to execute any and all documents necessary to complete the EDA's purchase of the Property. BE IT FURTHER RESOLVED that the Vice President and Deputy Executive Director are authorized to act in place of the President or Executive Director, respectively, in the event of the absence or unavailability of the President or Executive Director. Adopted this 5t" day of October, 2016. Casey Peak, President Anne Norris, Executive Director Hennepin County Property Map Date: 9/30/2016 PARCEL ID: 0411821440009 OWNER NAME: U S Bank N A PARCEL ADDRESS: 5442 Orchard Ave N, Crystal MN 55429 PARCEL AREA: 0.32 acres, 13,788 sq ft A -T -B: Abstract SALE PRICE: $115,000 SALE DATA: 04/2005 SALE CODE: Warranty Deed ASSESSED 2015, PAYABLE 2016 PROPERTY TYPE: Residential HOMESTEAD: Non -Homestead MARKET VALUE: $70,000 TAX TOTAL: $11,731.96 ASSESSED 2016, PAYABLE 2017 PROPERTY TYPE: Residential HOMESTEAD: Non -homestead MARKET VALUE: $78,000 Comments: This data(I)is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is notsuitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT OHENNEPIN COUNTY 2016 C: � i.f I , i,. - - _ ,� (� ,t... � � �� z..�. �I. �� 4 Y..; Nf a � Y �'� A 't ' ' �; . •x� r = � `gig j� �, —Y ' � 5,5 Y � }� 1 . 'I � i y, .i F'% � �.i . �' r r�„ �t G N4 ��, �._ ' ,: 'L v �� .. 1• *.tom �. Parcel Data for Taxes Payable 2016 Property ID: 04-118-21-44-0009 Address: 5442 ORCHARD AVE N Municipality: CRYSTAL School Dist: 281 Watershed: 3 Sewer Dist: Owner Name: U S BANK N A Taxpayer Name U S BANK N A & Address: 4801 FREDERICA ST OWENSBORO KY 42301 Sale Information Construction year: 1949 Approx. Parcel Size: 89 X 155 Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms -length trar Sale Date: April, 2005 Sale Price: $115,000 Transaction Type: Warranty Deed _ Tax Parcel Description The following is the County Auditor's description of this tax parcel. It may not be the legal description on the most recent conveyance recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for rec( Addition Name: AUDITOR'S SUBDIVISION NO. 328 HENNEPIN COUNTY, MINN Lot: 015 Block: First Line Metes & Bounds: COM AT THE SW COR OF LOT 15 TH E 195 Full Metes & Bounds: Note: To read full tax parcel description, click here. For term abbreviations, click Abstract or Torrens: ABSTRACT Value and Tax Summary for Taxes Payable 2016 Values Established by Assessor as of January 2, 2015 Estimated Market Value: $70,000 Taxable Market Value: $70,000 Total Improvement Amount: Total Net Tax: $1,202.66 ll, County $317.48 � Hennepin County Regional Rail Authority $13.15 ► City of Crystal $362.81 > School District: Voter Approved Levies $184.52 ► School District: Other Local Levies $249.80 ► Metropolitan Special Taxing District Tax $20.29 ► Other Special Taxing Districts $44.66 ESTIMATED EXPENDITURES $50,000 acquisition $11,000 demolition & site prep REDEVELOPMENT OF 5442 ORCHARD AVENUE NORTH $74,900 list price $78,000 2016 EMV $1,000 survey $1,400 legal, title & closing costs to acquire property $700 legal, title & closing costs to sell lot for new house $200 other administrative costs $950 property taxes (1/6 of 2016 + 1/2 of est 2017) $11,300 special assessment payoff $1,525 contingency for unforeseen (10% of the above items except acquisition and special assessment payoff) ------------------ $78,075 TOTAL ESTIMATED EXPENDITURES ESTIMATED REVENUE $60,000 proceeds from sale of lot for new house 13,788 sq. ft. $4.35 p.s.f. $60,000 TOTAL ESTIMATED REVENUE ($18,075) ESTIMATED NET REVENUE (EXPENDITURE)