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REQUEST FOR HRA ACTION <br /> Date: 11/20/2012 <br />Staff Approval Agenda Section <br />9a. <br />Item Description: Authorize the expenditure of funds for the purchase of 2325 Dale St and <br />4 adjacent vacant Lots on Cope Avenue HF_0117 <br />B <br />ACKGROUND <br />1 <br />The HRA has a purchase agreement in place to acquire property at 2325 Dale Street and Lots 18, <br />2 <br />19, 20, and 21 Block 1, O’Neils Addition on Cope Avenue. The closing is scheduled to take <br />3 <br />place on November 30, 2012. This property is to be acquired by the HRA to assemble land with <br />4 <br />the Dale Street Fire Station for future redevelopment. The HRA has signed a Memorandum of <br />5 <br />Understanding (MOU) with the Council related to the possible rezoning and conveyance of the <br />6 <br />Dale Street Fire Station (see attached). <br />7 <br />8 <br />HRA Staff has had a Phase I environmental assessment and Hazardous Building Inspection of <br />9 <br />the property completed. The Phase I did reveal that there are water wells on the site that have <br />10 <br />not been recorded at the Minnesota Department of Health (MDH). HRA Staff instructed the <br />11 <br />property owner of 2325 Dale St. to contact MDH for an inspection and found that there are two <br />12 <br />wells on the property. They will receive certification of well sealing prior to closing. In <br />13 <br />addition it was noted that because the home was constructed in 1906 the property most likely has <br />14 <br />a septic system. When the site is redeveloped the spectic system can removed. <br />15 <br />16 <br />HRA Staff also had a Hazardous Building Survey completed for demolition of the home. It <br />17 <br />was noted that several locations in the home has asbestos and lead-based paint and will need to <br />18 <br />be removed by a licensed constractor and brought to the appropriate landfill for disposal. This is <br />19 <br />standard recognized conditions for a property this age. <br />20 <br />21 <br />Commerical Partners Title and a real estate attorney from Kennedy and Graven are representing <br />22 <br />the RHRA in the closing of the property. Title has been reviewed by both parties and a survey <br />23 <br />was required. There is no encroachments present on the property. <br />24 <br />25 <br />BI <br />UDGET MPLICATIONS <br />26 <br />The HRA will be utilizing existing funds from account 724, Multi-family Program fund, in an <br />27 <br />amount not to exceed $638,000. <br />28 <br />2325 Dale Street/Dale Street Fire Station - Page 1 of 2 <br /> <br />