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Housing and Redevelopment Authority Minutes July 1, 2024 --------- Page 5 of 6 fees and taxes are deductible from the appraised value in a condemnation process. Mr. Brooksbank explained those fees wouldn't be deductible. Commissioner Ovall, who missed the previous month's discussion, asked for information about the property, which Mr. O'Neil and Mr. Brooksbank provided. Mr. Brooksbank explained the condemnation process, which is the route he advises the city to take, as there is no seller to work with and the property would sit four to five years while the city waits for it to go tax forfeiture. The appraised price of $75,000 when purchased gets deposited into an account with the district court and held until it gets turned over to the state's unclaimed property. In the future, if someone came forward and stated they could have owned the property before the condemnation process, they would then be entitled to those funds. Mr. O'Neil commented that state affordability fund dollars have a potential to be used but must be tied to affordability and have a plan in place for intent on affordability requirements. The HRA discussed the benefits to the city by obtaining the property and reselling it. They discussed the benefits for the value of the neighborhood; some neighbors have complained to the city about the condition of the property and code enforcement have fielded those. The length of time the property will sit in its current condition could be upwards of 7 years. The HRA discussed funding opportunities, incentives to buyers, a special HRA loan, and if Sherburne County would be interested in this project from a tax perspective or funding source. The HRA discussed setting a precedence, but the situation was unique. Mr. Brookbanks explained to the commission they could leave the home, they could demolish the home and assess the costs, or they could buy the property and resell it. He stated one potential decision the HRA could make tonight would be to proceed with eminent domain, which is the first step in a 60-day negotiation period. Posting the city's purchase request on the front door of the property along with a copy of the appraisal allows anyone living there to respond to the request; if no one responds, then it allows for clarification that no one is making a claim of ownership. This first step does not commit the city to any part of a negotiation or purchase. After discussion, it was the consensus of the HRA to proceed with the eminent domain process and directed Mr. Brookbanks to post the necessary paperwork on the door of 19116 Troy Street to begin the negotiation process. This item will be discussed at next month's HRA meeting. 9. MOTION TO ADJOURN WORKSESSION Moved by Commissioner Beaudry and seconded by Commissioner Caswell to adjourn the meeting at 6:32 p.m. Motion Carried 5-0. Minutes prepared by Jennifer Green.