One of many steps to move project forward
The Mounds View City Council and Economic Development Authority approved, at the May 22 meeting, a purchase option agreement with MWF Properties for two tax-forfeited parcels.
MWF Properties has proposed the development of a 60-unit workforce housing apartment complex on four parcels of land at the corner of Mounds View Boulevard and Groveland Road. To fund workforce housing, developers must apply for federal tax credits through the Minnesota Housing and Finance Agency. One of the requirements for the application is proof that the developer has secured site control. Although MWF is not acquiring the parcels through this agreement, the agreement can serve as documentation to complete their application, as well as provide a framework as the development moves forward.
The tax-forfeited parcels are currently owned by Ramsey County. In February, the city put a six-month hold on the parcels to prevent them from being purchased or auctioned. The hold ends Aug. 15. Before this deadline, the city must control the property to pass it onto the developer.
“This matter involves a lot of timing regarding the city, EDA, and the developer, in what we adopt in certain points in time,” City Attorney Scott Riggs said.
Riggs added that there may be “some tinkering with the purchase option agreement” meaning that city staff can tweak numbers and dates if necessary.
Riggs said he added an arbitrary date of July 31 as a deadline to control the property, but there will be further discussion with MWF.
The approval of the purchase option agreement will allow the developer the option to control the site. Once the developer exercises the option, they are locked into purchasing the parcels.
Once locked into a purchase and development agreement, the city will purchase the property from Ramsey County, then MWF will purchase the property from the city. The agreement will work as a simultaneous transaction.
The approval of the purchase option agreement was just the first step of a multi-step process.
“This is just one more step in many steps that are needed through this process. We still will be working with developer on the results of the traffic study and other questions that came up at the public hearing two weeks ago. This is just one more step along the way,” Mayor Carol Mueller said.
Contact Sarah Burghardt at [email protected]