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statement o/' the need to acquire the property. Clarification has been added on the second page <br />under item c, which includes the amount requested. She explained the Met Council's intent is to <br />know whether they are looking at five thousand dollars or five million dollars. The figures are <br />only estimates, and no purchase offers have been made to the owners due to the guidelines. Both <br />property owners are still working and communicating with her, and are interested in going <br />through the process. Mr. Miller is under a little bit of a time crunch but he is still at the table and <br />interested in continuing the discussions. The next step after this evening will be to sublnit this <br />resolution and the application in its final form to the Met Council and go fi'om there. <br /> <br />Mayor Gamcc commented he understands there is more money available from the RALF fund. <br /> <br />Ms. Ruehlc replied the Met Council expressed that an additional four million dollars is expected <br />to come through. She indicated some folks have contacted her, but in those cases she has said <br />they need to wait until the City has gone through the mapping process. <br /> <br />Councihnember Cook inquired about the process of receiving the funding. <br /> <br />Ms. Ruchle replied the application is needed to apply for the funds and move through the <br />appraisal process. It then goes to the Met Council who works with MnDOT, and she will be part <br />of that loop as well. MnDOT will look at the two appraisals and determine what they think is <br />fair market value; there is also a ten percent overage that they can add on top of the appraised <br />value. She believes with communication they can come to a fair value for these property owners. <br />The trick will be to get MnDOT through the process in a timely manner. They will give their <br />final certification and the funds would need to be paid upfront from the City and paid back once <br />the final approval of the loan is granted. <br /> <br />Councihnember Elvig questioned what will be done with the properties once they are acquired. <br /> <br />Ms. Ruehle explained in the Holasek/Hamilton property there are two single-family homes on the <br />property. Under federal guidelines the FHWA and the federal agencies, the tenants are entitled to <br />relocation costs. Mr. Miller is as well, even though he will not be relocating anywhere, h'~ most <br />cases the people take the federal agency up on that. MnDOT has people come out to talk to the <br />landlord and explain the relocation benefits and the City does not need to get involved in that. <br /> <br />Councihnember Elvig commented, hypothetically, if the owners would move on, the property <br />would then become vacant and off the tax rolls, or the properties could be put back to use. The <br />same questions would come up commercially. <br /> <br />Ms. Ruehle explained one of the things that have been discussed is that it would be negotiable in <br />Mt'. Miller's case as to how long before he vacated the property because of the type of business <br />he operates. The best time may be in September when the summer inventory is gone. At that <br />time it is the City's responsibility to make sure the property is safe. It may be demolished. If it is <br />leased back to anyone else for use the profit would go back to the fund minus the maintenance <br />ftmds. <br /> <br />City Council Work Session/June 8, 2004 <br /> Page 2 of 7 <br /> <br /> <br />