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<br />REQUEST FOR HRA ACTION <br />DATE: 06/15/04 <br />ITEM NO: 8.a. & 8.b. <br />Staff Approval: Agenda Section: <br />CBAction <br />Consider of Adoption of a Resolution authorizing the acquisition of 2012 <br />Item Description: <br />Eldridge by eminent domain (HF 0020) <br />1.0HRA Options for Action <br />Option 1 <br />1.1: Upon closure of the public hearing the HRA should discuss and consider the <br />adoption of a resolution authorizing the acquisition of the property at 2012 Eldridge <br />Resolution attached <br />through its powers of eminent domain. () If the resolution is <br />adopted, formal proceedings for a “quick take” of the property could occur in <br />approximately 16 weeks (estimated in the beginning of October). The owner could <br />appeal the findings of the judge which would delay the acquisition by another 10 weeks <br />(middle of December). Anytime within this process the HRA and property owner can <br />(Refer to attached eminent domain estimated <br />come to a negotiated settlement. <br />timeline <br />). During this time, the HRA will incur legal fees and other costs associated <br />with the proceedings. Those fees are estimated between $15,000 - $20,000. In addition, <br />the HRA will be required to make a deposit for the acquisition based upon the appraised <br />value. <br />Option 2 <br />1.2. An alternate action is to table the resolution to allow Mr. Wu to demolish the <br />structure within 30 days. Mr. Wu has indicated that he did not plan to demolish the <br />(Refer <br />structure until such time as he received his construction financing later this year. <br />to Mr. Wu’s construction timeline attached). <br /> However, he is willing to remove the <br />structure as soon as possible if the HRA could provide him with interim financing. It is <br />estimated that the demolition and grading of the property would be between $10,000 - <br />$15,000. Mr. Wu is in the process of securing bids for this work. The HRA could use <br />their Owner Occupied Revolving Loan funds administered by the Housing Resource <br />Center for this project. The collateral for repayment would be a lien on the property <br />which in this case would be the value of the land. If Mr. Wu has not made any progress <br />on securing bids, applying for the loan and demolishing the structure within 30 days <br />th <br />(HRA’s next meeting is July 20), then the HRA could proceed with the acquisition by <br />eminent domain at that time. <br />2.0Recommended HRA Action <br />2.1By motion <br />, table the consideration of the resolution to begin the acquisition of the <br />property at 2012 Eldridge through eminent domain. <br />2.2By motion <br />, approve the issuance of a loan to Mr. Frank Wu in an amount equal to the <br />lowest bid for the demolition of the structure at 2012 Eldridge and grading of the site not <br /> 2012 Eldridge action 06/15/04 - Page 1 of 2 <br /> <br />