A lot acquired through the city’s scattered sites acquisition program has been sold by the Coon Rapids Housing and Redevelopment Authority (HRA).
The property at 9943 Ibis St. N.W. was purchased by the HRA in 2002 for $92,000 and the house on it was demolished, according to Matt Brown, city community development specialist.
On the recommendation of Brown, the HRA, which comprises the seven members of the Coon Rapids City Council, approved a purchase and redevelopment agreement with Morning Sun Homes Inc.
In addition, the HRA authorized execution of the deed and other closing documents.
Morning Sun is purchasing the lot for $45,000, which reflects current market value, Brown wrote in a report to the HRA.
Morning Sun is working with the eventual owner-occupant of the single-family house it will construct on the property, he wrote.
The plan for the house meets the HRA’s established design criteria, Brown wrote.
“Staff feels that the design is compatible with surrounding homes,” he wrote.
According to Brown, the purchase and redevelopment agreement requires Morning Sun Homes to build the house by May 31, 2013.
If that does not happen, then the title will be returned to the HRA, Brown wrote.
Approval of the agreement by the HRA requires Morning Sun Homes to send a certified check totaling $1,350, with the balance of the purchase price to be paid to the city on the date of closing, which is to take place within 30 days of the agreement being signed.
The scattered sites acquisition program involves purchasing and demolishing blighted or substandard homes, in most cases foreclosed, and replacing them with higher quality houses.
Under a resolution approved by the HRA, staff can negotiate the purchase of properties meeting certain criteria without coming to the HRA for approval.
• The purchase price is not more than $70,000.
• The properties are blighted and in substandard condition and the cost of fixing deficiencies exceeds the value of the property.
• Prior to the acquisition of each property, staff will conduct due diligence to protect the HRA’s interests.
In the past year, one property has been purchased through the scattered sites acquisition program, Brown told the HRA.
That was the recent acquisition of 9065 East River Road for $30,000.
Peter Bodley is at [email protected]