2017.09.19 EDA Meeting Packet (Special)AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL SPECIAL MEETING TUESDAY, SEPTEMBER 19, 2017 6:45 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from the September 5, 2017 regular meeting 4. Consider a resolution requesting a hold on the auction of tax forfeited property at 5203 Angeline Ave N 5. Other business * 6. Adjournment * *Items for which no materials are included in the packet
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Minutes of the Crystal Economic Development Authority Regular Meeting September 5, 2017 President Kolb 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, John Budziszewski, Elizabeth Dahl, Julie Deshler, Jeff Kolb and Nancy LaRoche. The following staff members were present: Anne Norris, Executive Director, John Sutter, Deputy Executive Director, Stephanie Revering, Police Chief, and Troy Gilchrist, City Attorney. Motion by Commissioner Adams (Deshler) to approve the minutes of the August 15, 2017 regular meeting. Motion carried. The EDA considered a resolution approving a proposed Housing and Redevelopment Authority levy for 2018 in the amount of $277,200, unchanged from 2017. Motion by Commissioner Deshler (Budziszewski) to adopt a resolution approving a proposed Housing and Redevelopment Authority levy for 2018 in the amount of $277,200. Motion carried. Under other business, Mr. Sutter answered a question about a new house under construction at 5409 56th Avenue North. Motion by Commissioner LaRoche (Adams) to adjourn. Motion Carried The meeting adjourned at 6:50 p.m. _______________________________ Jeff Kolb, President ATTEST: ______________________________ Elizabeth Dahl, Vice President
_____________________________________________________________________ FROM: John Sutter, Community Development Director _____________________________________________________________________ DATE: September 14, 2017 TO: Anne Norris, City Manager (for September 19 EDA special meeting) SUBJECT: Consider a resolution requesting an auction hold on the tax forfeited property at 5203 Angeline Avenue North The subject property is a single family home sharing a common wall with an adjacent home on a separate lot. The absentee owner had not paid property taxes since 2008 and the property was forfeited in January 2017. Hennepin County estimates the property’s market value at $85,000 but the county has statutory authority to sell it to another unit of government for less than market value if it leads to the rehabilitation and long-term preservation of affordable housing. County staff would support discounting the purchase price to $60,000 for a deal that would achieve that end. Twin Cities Habitat for Humanity is interested in purchasing and rehabbing the property for rehab and re-sale to a qualifying low income homebuyer. To do so, they would need to purchase it for the $60,000 described in the preceding paragraph and the EDA would need to act as an intermediary between the county and Habitat. The basic outline of the deal would be for the EDA to resell it to Habitat for the same price that it pays to the county, with no EDA funds being necessary apart from incidental transaction costs. However, there are many details for Habitat to resolve such as the specific scope of rehab and related matters. Tax forfeited properties are auctioned in November and May of each year. 5203 Angeline is scheduled to be auctioned in November 2017. However, the county is willing to hold off on the November auction to see if the Habitat deal can be pulled together. To do so, the county would need an EDA resolution requesting a hold until the next auction in May 2018. The attached resolution does not obligate the EDA to proceed with the Habitat deal or any other deal, and subsequent EDA review and approval would be required in any case. Alternatively, if the EDA takes no action at this time, then the property will proceed to public auction in November 2017 in the normal manner. EDA consideration of the attached resolution is requested.
EDA STAFF REPORT 5203 Angeline Ave N (Tax Forfeited) Request Auction Hold
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017 - RESOLUTION REQUESTING AN AUCTION HOLD FOR TAX FOREFEITED PROPERTY AT 5203 ANGELINE AVENUE NORTH WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) undertakes redevelopment and housing activities in the City of Crystal, Minnesota; and WHEREAS, 5203 Angeline Avenue North, legally described as Lot 21, Block 3, Rolling Green of Crystal (the “Property”), has been forfeited to the State of Minnesota for nonpayment of property taxes; and WHEREAS, the Property is scheduled for public auction in November 2017; and WHEREAS, Twin Cities Habitat for Humanity (“Habitat”) has expressed interest in purchasing and rehabilitating the property for sale to a low income homebuyer; and WHEREAS, the EDA desires the opportunity to consider purchasing the Property in a nonpublic sale for the purpose of reselling to Habitat to rehabilitate and preserve affordable housing. NOW, THEREFORE, BE IT RESOLVED that the EDA requests a delay in the public auction of the Property so the EDA may consider purchasing the Property in a nonpublic sale. BE IT FURTHER RESOLVED that, if the EDA does not purchase the property in a nonpublic sale within six months, then the property should be scheduled for public auction at the next available opportunity. Adopted this 19th day of September, 2017. _______________________________ Jeff Kolb, President _______________________________ Anne Norris, Executive Director
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