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Housing and Redevelopment Authority Minutes Page 4 <br /> December 19, 1991 <br /> beyond the March 31, 1992 expiration date. As a result, Mr. Larson may <br /> only need the HRA to acquire one of the two sites. <br /> Because the HRA is reluctant to own the project under a non-profit <br /> status and if the HRA does not want to acquire the properties prior to <br /> the March 31, 1991 deadline, Mr. Larson suggested another alternative. <br /> Under this option, he suggested that the HRA consider "friendly <br /> condemnation" wherein the HRA and its potential use of emminent domain <br /> may trigger extra capital gain benefits to the sellers. However, Mr. <br /> Larson cannot make the representation that friendly condemnation can <br /> occur without authorization from the HRA. He stated that if the <br /> sellers knew that there would be extra capital gain benefits from a <br /> friendly condemnation acquisition, it may be likely that they would be <br /> willing to extend the purchase agreements to September or October. As <br /> a result, the HRA would not have to acquire the properties prior to <br /> Farmers Home funding and the developers would have the property under <br /> option until the fall when a funding announcement is likely. <br /> COMMISSIONER KROPUENSKE MOVED TO EXPLORE THE OPTION OF WORKING WITH <br /> METCALF AND LARSON TO EXTEND THE PURCHASE AGREEMENTS OUT TO SEPTEMBER <br /> OR OCTOBER OF 1992 WHEREIN THE HRA WOULD CONSIDER FRIENDLY CONDEMNATION <br /> BUT THE PURCHASE AGREEMENT MUST STATE THAT IF FARMERS HOME <br /> ADMINISTRATION FUNDING IS NOT AWARDED AND IF TAX INCREMENT FINANCING IS <br /> NOT APPROVED, THEN THE PURCHASE AGREEMENT IS NULL AND VOID. <br /> • COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION CARRIED 5-0. <br /> 5. HRA Annual Meeting <br /> Staff reminded HRA Commissioners of the annual meeting scheduled for <br /> January 14, 1992. At that time, the HRA will elect new officers for <br /> the year and also make various appointments. <br /> 6. Other Business <br /> There was no new business at this time. <br /> 7. Staff Updates <br /> Staff had no update at this time. <br /> 8. Adjournment <br /> There being no further business, COMMISSIONER SCHULDT MOVED TO ADJOURN <br /> THE MEETING. COMMISSIONER TOTH SECONDED THE MOTION. THE MOTION <br /> CARRIED 5-0. <br /> The meeting of the Elk River Housing and Redevelopment Authority adjourned <br /> at 8:35 p.m. <br /> Respectfully submitted, <br /> S 4 <br /> Patrick D. Klaers <br /> Executive Director <br />