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HomeMy WebLinkAboutEDA MIN 12-03-12ECONOMIC DEVELOPMENT AUTHORITV VEDA) MINUTES OF THE MEETING OF DECEMBER 3, 2012 IN COUNCIL CHAMB ERS The meeting was called to order at 6:-')'0 pin by Chair Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Marlaine Szurek, Tarnmera Diehrn. Gerry Herringer Members Absent- Bobby Williams Staff Present: Walt Felist, Scott Clark, and Sheila Cartney. Also present Dale Anderson of ReMax Results 2. PLEDCE OF ALLEGIANCE- RECITED BUSINESS ITEMS 3. Proposed Sale of 4303 Reservoir Blvd Cartney explained that in December 2009 the EDA purchased property at 4303 ) Reservoir Blvd as part of the Scattered Site Program, At the time of purchase the property contained an existing 750 square foot house that was built in 1918 that had significant structural damage and a detached garage. This lot is about 17,600 square feet. Since then the house and garage have been removed and the lot has been maintained as a vacant lot and has been for sale since February 2012. The list price for this lot is $50,000 the FDA has spent a total of $61,438 on the purchase and demolition fior this property; Anoka County has this property valued at $47,300. Novak-Fleck, Inc. is an experienced home builder that has written all offer to the EDA to purchase the subject lot for $35,000 and to build a split-level home with a potential sales price of $220,000, The floor plan Submitted meets the Scattered Site Program Guidelines with the exception of the bedrooms, tile guidelines require three bedrooms and the plan shows two, the applicant said they could finish a third bedroom in the basement. A site plan was not submitted, but staff is confident this type of home could meet the required setbacks. Staff seeks direction from the FDA whether or not to proceed with the Purchase agreement. If the EDA would like to proceed, a public hearing should be set. Questions/Cornments from members: Commissioner Ilerringer questioned if there would be a real estate commission on the sale. Cartney responded that there would not be one charged to the City, just standard closing costs. President Peterson stated their offer is too low for the best lot we have. Commissioner Szurek agreed about the lot price and prefers the house to face Reservoir Blvd than 43"'. Commissioner Schmitt agreed that the house should face Reservoir Blvd and stated she could support a different house style, she said it is a fair price and is consistent with the market. Commissioner Nawrocki agreed with Peterson about the offer on the lot being too low. Ile questioned if the lot could be split. Clark explained that we bought the lot 17or one single fan -oily home with no intention of splitting. Commissioner Diehm stated she likes the product but has concern with the lot price. Dale Anderson of ReMax representing the buyer said they could change the house plan so that it Would face Reservoir Blvd, Herrigner stated we still have negotiating to do. Motion by 'Fammi Dichm to not accept the offer as presented, but would possible entertain a revised site plan by the applicant with a different style house and higher price lor the lot. Motion was seconded by Bruce Nawrocki. Motion Passed 5-1. Roll Call: Aye: Peterson, Dichm, Nawrocki, Szurek, Herringer. Nay: Schmitt. The next regular EDA meeting will be Tuesday, January 3, 2013 at City Hall at 6 :30 pm. The meeting was adjourned at 6:53 pm. Respectfully submitted, Sheila Cartney Secretary Pro-Tern