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Housing and Redevelopment Minutes Page 3 <br />November 4, 2019 <br />----------------------------- <br />pooled TIF monies from the Best Buy redevelopment project. For the Lot Sale Program, the <br />city’s focus was on older small substandard homes that had been built in the 50s and <br />appeared to require maintenance or remodeling. The homes were typically vacant. The city <br />purchases the property after an inspection deems the property substandard and an RFP <br />process occurs for anyone to purchase the house/lot. The price of the property is <br />determined by an appraisal. Then whoever purchases the property works with a builder <br />chosen by the city and demos the property to build a 3 bedroom/2 bath/2-car garage home. <br />The builder is then credited $10,000 from the city for demolition costs, with those funds <br />coming from the pooled TIF monies. Ms. Eddy stated Richfield has completed 150 homes <br />using this process. <br /> <br /> Ms. Eddy outlined the Development Credit Program where a builder and buyer enter into a <br />purchase agreement contingent on HRA approval and sub plans for approval by the HRA. <br />Once approved, they demolish the existing home and construct a new home for a $50,000 <br />credit by the HRA. <br /> <br />The HRA discussed the current home stock in Elk River and what properties could be <br />considered substandard. Ms. Othoudt stated around 20-30 homes in the city that would be <br />potential substandard homes but that was only based upon a visual inspection during a <br />recent police ride-along. She indicated homes would typically require an inspection to <br />determine the true condition of the home. The HRA discussed if there are any older housing <br />developments that have a cluster of homes in need of repair. <br /> <br /> The HRA discussed what type of programs currently offered and what parts of other <br />programs reviewed would best benefit the housing stock of Elk River. It was noted the HRA <br />doesn’t purchase any properties for resale, which is one main difference in what other <br />communities offer. Another difference is allowing builders to purchase homes for <br />remodel/rebuild/resell. <br /> <br />It was the consensus of the HRA to review the city’s current Blighted Properties policy and <br />rework it to allow builders to purchase homes. Ms. Othoudt will bring the policy back at a <br />future meeting for review and evaluation against the HRA’s long term goals. <br /> <br />9. Adjournment <br /> <br />Chair Toth adjourned the meeting at 6:22 p.m. <br /> <br />Minutes prepared by Jennifer Green. <br /> <br /> <br />_____________________ <br />Tina Allard, City Clerk <br /> <br /> <br />_____________________ <br />Larry Toth, Chair <br />Housing & Redevelopment Authority <br /> <br />