Laserfiche WebLink
CASE # <br />ACQUISITION OF PROPERTY LOCATED WITHIN THE CRITICAL <br />BLIGHT REDEVELOPMENT AREA <br />Sean M. Sullivan, Economic Development / TIF Specialist <br />Background: <br />The EDA has identified an area in TIF District No. 2 as the Critical Blight Redevelopment Area. <br />The City acquired both the former Chies and Morrell Properties in 2003 located within this <br />identified area. It has been the position of the EDA to acquire properties that come up for sale in <br />this area and to facilitate redevelopment. <br />Observations: <br />The Hanson property (see attached map) is currently on the market and the asking price is <br />$700,000 which appears to be quite unreasonable considering recent property transactions in the <br />area. For purposes of comparison, details of the Morrell transaction are provided below. Anoka <br />County had a property value of $224,500 for the Morrell Property. An independent appraisal <br />was conducted and the resulting value was $265,000. This is what the City paid to acquire that <br />property in late 2003. Anoka County currently has a value of 229,500 on the Hanson property <br />and using the ratio set forth by the Morrell property transaction it would appear to have a market <br />value of $270,810. TIF District No. 2 has money available for the acquisition of this parcel if the <br />price can be negotiated to approximately fair market value. Again, the EDA has expressed the <br />need to acquire properties in this area to redevelop them with quality development when they <br />become available, so it should be clear that the City should acquire the Hanson Property. It is <br />important to acquire these types of properties when they are for sale to guarantee that future <br />users cannot continue to utilize buildings that would not qualify under our current building <br />standards. <br />Recommendation: <br />Staff is looking for direction to start and complete negotiations with the property owner and to <br />acquire the property for a fair market price. <br />EDA Action: <br />Authorize City Staff to negotiate the acquisition of the Hanson property (34-32-25-11-0016). <br />Reviewed by: <br />Jim Norman, City Administrator <br />Megan Wald, Associate Planner <br />EDA: 02/09/04 <br />