HRA Packet for August 5, 2024 - Laserfiche WebLink

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The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Housing and Redevelopment Authority Item Number 6.5 Meeting Date August 5, 2024 Prepared By Brent O'Neil, Economic Development Director Item Description Participation in 19116 Troy Street Acquisition Reviewed by Cal Portner Action Requested Adopt, by motion, a statement of the board requesting the city to initiate condemnation of 19116 Troy Street NW and declaring the HRA's intent to participate in the future acquisition of the property in the amount of $75,000. Background/Discussion The property at 19116 Troy Street NW is in a state of significant deterioration and neighborhood nuisance, and has been a subject of numerous code enforcement actions. The property owner of record is deceased, and there are no known heirs or parties with an interest in the property. As such, the city is in the preliminary stages of a condemnation process. The HRA has been approached to collaborate on the acquisition and restoration of the property, with the HRA leading the clean-up and resale of the property. In this scenario, the HRA would provide funds to acquire the property and would take possession after condemnation. It would then mitigate blighted conditions including demolition of structures, and put the property up for resale for new residential construction. An appraisal on the property values it at $75,000 in its present condition, and $100,000 under normal conditions. State statute requires the property be acquired at the appraised value. With potential expenses for demolition, professional fees, and other potential expenses, staff estimates the additional costs to make the property suitable for resale to be $30,000 to $60,000. As multiple steps are still needed from the city prior to the HRA's participation in the project, future action of the HRA would be needed to commit funds and acquire the property. Following a work session in July, counsel has advised the HRA to pass a motion declaring its intent to participate in the process. Financial Impact Participation in this project is anticipated to require an HRA outlay of $75,000 for acquisition, and total outlay of $105,000 to $135,000 with the expectation of return proceeds of approximately $100,000 after a resale. Mission/Policy/Goal Support blight removal and residential development. Page 40 of 46