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Economic Development / TIF Specialist Sullivan explained staff has written a purchase <br />agreement to the Martins for $169,900. The offer was based on a sales price of $169,900 and a <br />completed property appraisal for $170,000. The City has obtained a phase 1 environmental of <br />the property and it has a clean bill of health. Council has approved the purchase agreement and <br />the closing will take place at the end of August 2004. Staff believes that it would be a good idea <br />for the EDA to assist in the purchase of this property. The participation by the EDA in this <br />activity makes the Ramsey business community aware that the EDA is playing an active role in <br />redevelopment. The remainder of the purchase would take place with funds from TIF District <br />No. 2. When the property is put up for sale and developed the EDA would be able to recapture a <br />percentage of the proceeds based on the percent of the purchase price provided. This property <br />has high visibility and it would be a great project for the EDA to play a lead role in getting it <br />developed. The EDA does have the funds in its budget to cover the request for $60,000. Staff is <br />looking for a recommendation to allocate $60,000 toward the purchase of 14140 Azurite St NW. <br /> <br />Member Strommen inquired about the budget. Economic Development / TIF Specialist Sullivan <br />replied there are a lot of things that funds need to be spent on, but the budget appears to be very <br />Iow on the professional service end of things. It appears $40,000 to $60,000 would be able to be <br />funded fairly easily if the Board continues to spend at the rate they are spending. Staff would go <br />through and code things to be certain not to overspend. <br /> <br />The Board discussed the status of the Chics and Morrell properties. Economic Development/ <br />TIF Specialist Sullivan advised the Chics and Morrell properties are entirely paid off. Once the <br />Mort'ell property is sold they will need to reimburse the CDBG funds. The properties are cleared <br />and ready to go. The Chies property was sold and a 4,000 square foot building has been put up. <br />He explained there is very rarely a profit on this type of transaction. The benefit is the transition <br />from what the property condition was and the increase of tax base and job creation of the new <br />development. <br /> <br />Chairperson Riley questioned if it would be wise to use outside money, as this is in TIF District <br />No. 2 and TIF funds are available: Economic Development / TIF Specialist Sullivan replied <br />although TIF funds are available, the EDA may still want to allocate funds. This property is very <br />visible and would be a good project for the EDA to publicly participate in. It would be very <br />clear on this property that the EDA will be front and center in every step of the process. It would <br />be a learning experience for this group to go through the whole process. He advised the building <br />will be demolished, and this has been declared as excess property. <br /> <br />Member Steffen questioned if this property could have been sold on the MLS. Economic <br />Development / TIF Specialist Sullivan replied it could have, but it may have been left as it is. He <br />felt his direction was to move forward, especially due to the high visibility. <br /> <br />Chairperson Riley suggested properties like this have a sign posted stating that the City is <br />cleaning it up or that it is a redevelopment project. <br /> <br />Associate Planner Wald indicated staff will look at ideas for signs in other communities. <br /> <br />Economic Development Authority/August 9, 2004 <br /> Page 4 of 12 <br /> <br /> <br />