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Case #2: Potential Properties to Purchase with CDBG Funds <br /> <br />Associate Planner Wald noted TIF Specialist Sullivan provided the following information in the <br />packet, which the EDA had previously requested. Staff was directed to obtain possible site <br />improvement costs associated with the Chies and Morrell properties. The Chies property <br />cleanup of debris, trucks and equipment is estimated to be $50,000. The Morrell property <br />demolition is estimated to cost $20,000. It should be noted that Tom Sauter currently leases the <br />building on a month-to-month basis, at a rate of $3,000 per month. This lease could be <br />continued until the demolition occurs and could help subsidize a portion of the redevelopment <br />costs. The Chies and Morrell properties are located within the boundaries of a TIF District and <br />could be added back and partially subsidized with tax increment financing for previously <br />budgeted expenses. Site improvement costs appear to be minimal in regard to the KIH and Debee <br />properties because no buildings will need to be demolished and all of the equipment currently on <br />the properties seems to be in working order. <br /> <br />Vice Chairperson Kiefer expressed that with TIF money available and rent until demolition, it <br />seemed obvious that the EDA should proceed with the Chies and Morrell properties, although <br />clean-up of the Chies property would be difficult. <br /> <br />Member Gromberg asked how long the properties could continue to be leased before demolition <br />needed to occur. <br /> <br />Associate Planner Wald indicated demolition needed to take place within one year after <br />acquisition. <br /> <br />Discussion ensued regarding whether the additional money necessary to purchase the properties, <br />over and above the $220,000 and the offset from continuing the current lease, was available for <br />this purchase. <br /> <br />Member LeTourneau questioned whether clean-up costs could be passed to the business that <br />ultimately purchased the property. <br /> <br />Member Gromberg indicated that was possible; however, these already were distressed <br />properties. <br /> <br />Member Gromberg asked that staff provide additional information before a decision is reached. <br /> <br />Vice Chairperson Kiefer requested that a motion be made to approve contingent on there being <br />enough money available in the TIF district. <br /> <br />Member Gromberg requested that the motion on this item be tabled until further information was <br />provided. <br />Staff was directed to provide information as follows: <br /> <br />Economic Development Authority / November 18, 2002 <br /> Page 3 of 5 <br /> <br /> <br />