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Page 3 - July 25, 2006 New Brighton Council Minutes David Black, Assistant Director of Community Development introduced the item Ing with some backgronnd information. Prior to selling to the interested veloper; the City would be required to demolish the building and clean up the lot. . r. Black stated that by declaring the building structurally substandard, we serve the rights for future qualification for TIF consideration on this property. Mayor Larson clarified tonight's action was pertaining to the blight issue only, not to establishing a TIF district. Council Member Doffing stated that this topic was extensively discussed at the work session that night, and audio copies are available to anyone who wants additional information. Council Member Doffing questioned the relationship between declaring a blighted building and establishing a TIF district. Mr. Black explained that by declaring the building blight, there would be t1rree years to establish a TIF district. TIF would not apply to a vacant lot. The question was asked by Council Member Doffing if Marv's transmission was currently operational, would in be declared blight? Mr. Black responded that he felt it would be, according to the State Statute. Council Member Doffing asked Mr. Black the probability of the City using TIF on this parcel. Mr. Black responded that decision would be entirely up to the City Council. Council Member Doffing asked Mr. Black to tell the audience what the City paid for the property, and what the expected return would be. Mr. Black stated the council approved the purchase of Marv's Transmission for @5O'000'00(inclUdeSthepropertyandthebUSiness)andtheexpeCtedPurchase rice for the land would be $175,000.00. Mr. Black felt that was a very fair price in y's market. It was not the City's Councils intention to keep that building. aney Grant, a New Brighton resident addressed the Council and spoke of her opposition to the City using UF. Conncil Member Bauman stated that she was not on the City Conncil when the decision was made to purchase the property. It is her feeling to try to recoup the costs, and her hope is that this will not occur again in the future. It was stated she does not agree with the City purchasing property for aesthetic reasons. Council Member Doffing also stated that she did not vote for the purchase of this property, but does feel obligated to make the 'best of a bad situation. Mr. Danny Dahms, 675 4th Ave NW expressed his disagreement with the definition used in declaring building as blight. Also he questioned whether the Developer would be interested ifTIF was not available. David Black, explained the developer has no interest in TIF regardless. TIF only pays the City back, not the developer. Also Mr. Dahms expressed his disagreement with the City purchasing a property and selling it for a loss; he then asked to see a show of hands for those who voted for the purchase of the property. Council Member Burg stated that she did vote for the purchase of this property, primarily in order to bring this corner in alignment with the rest of the redevelopment plan along Old Highway 8. Icouncil Member Bauman expressed her opposition, and stated she felt people don't really care about what happens in 25 years. Council Member Doffing stated that the lifecyc1e of buildings, strip malls and businesses is about 25 years. The question was proposed by Council Member Doffing if the City could operate a Transmission business and the declaration of blight in that case. Mr. Black replied that regardless of the owner, the building would not meet the current standard according to the State Statute. Council Member Doffmg pointed out the City currently has 32 TIF districts, and