3.0 HRSR 07-05-2016 EOty1� ,.,�� Request for Action
River
To Item Number
Housing and Redevelopment Authority 3.0
Agenda Section Meeting Date Prepared by
Work SessionJune 6, 2016 Amanda Othoudt,EDD
Item Description Reviewed by
18584 Troy Street Update Cal Portner, City Administrator
Reviewed by
Action Requested
Receive an update on the Tax Forfeited property located at 18584 Troy Street.
Background/Discussion
During the May 2nd HRA meeting, the HRA directed staff to contact the Sherburne County Auditor-
Treasurer's office to discuss the potential purchase of the property located at 18584 Troy Street. The
county will agree to sell the property to the HRA for a discounted purchase price provided the Fire
Department and Police Department would utilize it for training purposes. The purchase price and county
fees are outlined below.
Purchase price $15,000.00
3% RE Assurance $450.00
State Deed Tax $49.50
State Deed Fee $25.00
Record Deed $46.00
Well Certification $50.00
Total Acquisition Costs $15,620.50
Staff has received a preliminary estimate from Veit,Inc. for debris removal for upwards of$11,000
assuming that the Elk River Fire Department will partner with the HRA to conduct live training burns of
the residential structure awaiting demolition. Backfilling the excavation area is extra, and is estimated to
cost$17 per yard. The total amount of backfill needed is unknown at this time.
The property is not connected to city services, and the city engineer indicated a connection is not planned
for the near future. Stembrecher, Companies,Inc. estimated the cost to abandon the non-compliant
septic system at$1,900 which is required prior to conveying the property to a new owner.
The total costs of the HRA to purchase, demo and abate the property, could total an upwards of$30,000-
$40,000. The property could be then donated to Habitat for Humanity to build a single family home, or
could be listed for sale as a HRA property and sold outright. However,if these options are sought,it is
possible that the HRA would not recoup the costs associated with the purchase, demolition and
abatement associated with the property.
POWERED 6T
A IR
The Department of Natural Resources has not yet expressed interest in purchasing the property,in which
case the property would be available for purchase at a public auction later this fall.
As mentioned at the work session on April 4,if the property goes to public auction this fall, a potential
buyer could ultimately take advantage of the $25,000 HRA Rehabilitation Loan Program or the $75,000
Residential Blighted/Demolition Loan Program,provided the property meets the criteria outlined in the
policy. Staff has connected with Sherburne County staff to promote these programs to potential buyers.
Financial Impact
N/A
Attachments
■ Stembrecher Companies,Inc. Estimates
■ Cost Breakout
N:\Departments\Community Develop ment\Economic Develop ment\HRA\Administrative\Agenda\2016\7-5-16 Special mtg\3.0 sr 18584 Troy
Street Update.docx
18584 Troy Street NW Cost of Acquisition
Description Cost
Total acquisition
Purchase Price $15,000.00
3% RE Assurance $450.00
State Deed Tax $49.50
State Deed Fee $25.00
Record Deed $46.00
Well Certification $50.00
Total acquisition costs $15,620.50
install septic $35,000.00
septic design $750.00
abandon present tank $1,900.00
intall deep well $6,500.00 Steinbrecker
demo $11,000.00 $17/yd to backfill (extra)
install well and pump $8,408.00 Renner Well
Total misc rehab expenses $55,150.00 $57,058.00
Total Project Cost $70,770.50 $72,678.50
reea&ee4m04,
PROPOSAL
COMPANIES, INC.
13792 247th Ave - Zimmerman, MN 55398 proposal 4
Phone: 763-274-0925 Fax: 763-274-0928
6/3/2016 2065
Name / Address
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Project
Description Total
Job: 18584 Troy Street, Elk River
Abandon present tank / cesspit - pump and crush and fill with sand 1,900.00
JOB NOTES: 0.00
*We contact Gopher 1 for locates. Gopher State 1 does not locate private utilities. We are not
responsible for any damage done to utilities that are unmarked, mis-marked, or private.
*Above price includes no repairs to landscaping.
* Owner is responsible for all erosion of sediment, maintaining any landscaping, re-seeding/overseeding
and washout that may occur.
*We are not responsible for any damage done to driveway with heavy equipment.
*The above price does not include removal of any trees.
*Terms are: 1/2 down is due upon signing proposal and balance due when job is complete and
invoiced.
Signature/Date Total
$1,900.00
By signing this proposal, this becomes a legal binding contract and paid according to Steinbrecher Companies
terms. Should there be any circumstances where Steinbrecher Companies can not complete the job the
customer still agrees to pay for time and materials used up to termination of job.
Steinbrecher Companies terms are: Payment is due when customer is invoiced.
Amounts 30 days past due will be charged a service charge of 1.5% per month or the maximum rate allowable;
whichever is higher, until paid in full. Steinbrecher Companies shall be entitled to recover all reasonable costs,
charges, expenses, and attorney fees expended or incurred therein from the customer.
Checks returned due to ISF will be charged a $30.00 Fee
All Parties agree that a signed, faxed copy of this form is "Legal Document."