Laserfiche WebLink
REQUEST FOR ECONOMIC DEVELOPMENTAUTHORITYACTION <br />Date:4/18/2017 <br />Item No.:7.c <br />Department ApprovalExecutive DirectorApproval <br />Item Description: Consider Application for Purchase of 196 S. McCarrons through the Single- <br />Family Housing Replacement Program <br />B <br />ACKGROUND <br />1 <br />The Roseville Economic Development Authority (REDA) Single-Family HousingReplacement <br />2 <br />Program removes substandard, functionally obsolete housing on scattered sites throughout the City and <br />3 <br />replaces them with new, higher-valued, sustainable housing. The REDAbought 196 S. McCarrons Blvd <br />4 <br />onFebruary 21, 2017, for $100,000(Attachment A).Bids for removing the home and garage are being <br />5 <br />sought at this time. The appraisal for resale of the lot,once the homeand garage are removed,is <br />6 <br />$115,000. <br />7 <br />The REDA has been marketing the property with a sign in the yard,and information onour website. <br />8 <br />REDA staff weredirected to contact Habitat for Humanity and Journey Home, MNto gauge interest. <br />9 <br />Journey Home, MN has submitted an application to construct a new one-story,2-1/2 bathrooms, three <br />10 <br />bedroom, 1,944 square foot home with a detached 2 stall garage (Attachment B).They would partner <br />11 <br />with St. Paul College’s Carpentry and Cabinet Making classes to give students first-hand experience in <br />12 <br />the trades. In addition,they currently are looking into how to partner with Roseville High School for <br />13 <br />students that are taking construction classes to gain experience as well. <br />14 <br />stnd <br />They are requesting the purchase amount of $115,000 be left as a 1or 2mortgage on the propertyas <br />15 <br />long as it doesn’t hinder the long term permanent resale of the property to a wounded military Veteran. <br />16 <br />Once construction is completed Journey Home, MN will be the owner and will rent the home to a <br />17 <br />wounded military Veteran. Once the Veteran is ableto purchase the home from Journey Home, MN, <br />18 <br />they will retain a mortgage position after the REDA’s mortgage to make sure that the sweat equity that <br />19 <br />was used to build the home could not be quickly sold and turned around forcash equity to the Veteran. <br />20 <br />This would also be the same benefit for the REDA’s mortgage as well. <br />21 <br />If the REDA agrees to the termsof the sale to Journey Home, MN then the REDA will hold a public <br />22 <br />hearing(Attachment C),at the meeting, for sale of the property and direct staff to negotiate a <br />23 <br />development agreement based upon the terms of the resolution (Attachment D). Staff will bring back at <br />24 <br />a future meeting a Development Agreement for the REDA to consider and enter into with Journey <br />25 <br />Home, MN. <br />26 <br />PO <br />OLICY BJECTIVE <br />27 <br />On September 19, 2016 the Board determined that 196 S. McCarrons Boulevard met the guidelines of <br />28 <br />the Housing Replacement Program. <br />29 <br />Page 1of 2 <br /> <br />