2010-01-04 Regular City Council Session

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remainder of this year, and then bring it back to Council or if he would want to consider the adjacent lots on Bartmer and Crest, as Ms. Eastman listed as priority lots to purchase. She noted that the value of the trustee lots does not matter with what the market is doing. Ms. Petree stated that presently the City is having a great deal of trouble finding a lender who would finance a buyer in the amount of $150,000 to $200,000 when most of the homes on the two blocks range from $50,000 to $100,000. She stated the appraiser that she talked to said the more lots you have the more willing a bank might be to do a big project. Ms. Petree asked if the Council would want to buy five more, when the first five will be difficult to sell. Mr. Crow asked Ms. Eastman what the holding cost of the County owned lots would be. It was explained that the City is presently mowing the lots now and place a lien on the house for its charge so a lot of liens against it are the City’s liens. He stated that if the Council went into this, the City could own the lots for a long time. Mr. Glickert asked Ms. Eastman if she had seen anything like what the City is experiencing now. She stated that it is unusual because a developer is not taking the risk and borrowing the money and building, hoping buyers will come. This situation is where the City relies on the buyer to get construction lending to build the homes. Mr. Glickert asked Ms. Petree on the five lots the City has, with no developer, or construction company, if we had five qualified buyers at this time. Ms. Petree said there is interest but since we cannot market lots without a lender, it would seem to be the City would be acting in bad faith. Mr. Price stated the issue to him is not whether you get a lender today. The issue is when you have a lot site control there is more control of what eventually ends up there. The issue to him is to be visionary on this issue and not short sighted. Ms. Petree stated that the City is presently interviewing several construction companies to step in. A go ahead has been given to the architect to design the houses making it easier to sell the houses once you have a design. She stated that the City is going full steam ahead on this project but the question is does the City want to invest in more property not knowing and having some uncertainty of its success. Mr. Price stated there is always uncertainty but there is more risk in doing nothing. He stated that it is not true that the County owned lots will not go up in value as anyone could purchase it for the back taxes now and if the City want it in the future, that person who purchased it would ask for a profit from what he paid the County for it. Mr. Price now moved to buy the priority lots of 6633 Bartmer and 6628 Crest and pursue the legal work on the five owned County lots: 6615 Crest, 6628 Etzel, 6508 & 6510 Bartmer and 6640 Chamberlain. Ms. Eastman noted she was aware of a $9,000 mortgage due on 6633 Bartmer property and 6615 Crest had a mortgage due of $42,000 which would come encumbered with that from the St. Louis County. Mr. Sharpe stated he agreed with Mr. Price and stated that there would some advantage to have those properties in hand. If the City was able to get them at some reasonable price, it would seem to him to go in all due haste to purchase them. Mayor Adams asked for all in favor of purchasing 6633 Bartmer and 6628 Crest and any trustee lots they could pick up. Ms. Feier stated that if Council moves this project forward that no money will be needed in the present fiscal year but it needs to be noted that a lot of staff time will be spent on it this year and money will have to be incorporated in the FY 11 budget. It was approved by a majority with a NAY vote from Mr. Glickert. Ms. Feier asked the Council to go outside of the agenda and move the resolution up on the agenda concerning the double-decker bus. Mr. Wagner moved to suspend the Robert’s Rules 4