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Assistance and Benefit Act, noting the owner can waive relocation benefits but that is hardly ever done because it is a tax -free source of money for the seller. Tenants ARE not able to waive relocation fees. He explained how appraisals are different from the assessed value, which is a tax number. Appraisals look at comparable sales of similar nearby properties. Commissioner Strommen referenced the comparable sales and asked if the appraisal is also required to bracket lower and higher valued comparables on which to make adjustments. City Attorney Goodrich agreed that process is often used. He explained the City is in the process of acquiring four properties for the Sunwood Drive realignment project: Wiser Choice Liquor, Diversified Paving (USCO), the Nordvik property, and the Billmark easement. None were acquired for Armstrong Boulevard but the Wiser Choice Liquor property, if acquired, would be for the Armstrong Boulevard project. He advised there is no ability to condemn the Wiser Choice Liquor property since there is no funded project. In 2006, it was thought the City would get a big box retailer and could acquire all of the property on that side but the law changed in May 2006 so cities can no longer condemn property for economic development. City Attorney Goodrich advised that the City is under no obligation to purchase Wiser Choice Liquor. Commissioner Riley asked if the City buys Wiser Choice Liquor in anticipation of the Armstrong interchange, would it count towards the City's portion of funding. Executive Director Ulrich stated the City anticipates it will and has asked Anoka County to verify that is the case. It is the same situation with the Oasis property that was acquired and the City would like it counted towards the City's contribution. He noted the Armstrong interchange will involve County and State and possibly the Federal government so all would have to agree. Executive Director Ulrich advised that when purchased in advance, the City would not be reimbursed if the agencies do not agree or if the project is 100% funded by some other means. City Attorney Goodrich noted that $2 7 million was budgeted for land acquisition and with current acquisitions, costs are very close to that budget. Commissioner LeTourneau asked if the City cannot use condemnation for the overpass project. City Attorney Goodrich explained if the City had an official project, it can acquire by condemnation because it is then for a public purpose. However, in this case there is no project, no funding, and the City cannot bank land through condemnation. He advised that condemnation is Council driven but property owner conscious. City Attorney Goodrich described the steps in the condemnation process. Executive Director Ulrich distributed an exhibit on estimated market value by Anoka County, and the ultimate purchase price on 15 properties along Highway 10 through the RALF program. He noted there is generally a significant difference between the County assessed value and purchase price. These transactions were all willing buyer /willing seller. Commissioner Stromm'en asked if there is appraisal data on these properties. Housing and Redevelopment Authority / January 8, 2013 Page 4 of 7