Moermond: how much is your client in for on this?
Rossman: I don’t know that I have that in front of me. I’d have to look at the sheriff’s
Moermond: the bid you submitted is solid as far as it goes, for our purposes. There is
a footnote saying the electrical and mechanical are pending. Does that mean they
Rossman: I didn’t participate in this bid work. It is currently pending HUD approval as
well. I don’t know if they’re waiting for HUD approval as well, or what that means. There
are a lot of extra procedural steps. I haven’t compared it to the last bid. I assume it
means previous work got approved by HUD and that this extra stuff does too. I know it
just got sent into HUD, it takes a couple of weeks. Looking at the sheriff’s sale there
may be some equity in the property. It was originally mortgaged for $373,000 and the
amount due was $196,000. It went to sale for around $203,000. Presumably there may
be some equity cushion, which is likely why they want to avoid a teardown. I don’t have
a current appraisal but there likely is equity even with $100,000 in repairs. Zillow says
Moermond: Ramsey County tax value is $195,800.
Rossman: right, traditionally low. A completely rehabbed property, who knows what it
will market for versus as is.
Moermond: I’m going to move forward under the assumption that your client will do the
rehab using NorthSite Management. I would be looking for in this bid dated March 1, is
missing electrical and mechanical. There also isn’t a schedule. I assume they are your
bidder so that is who you are using. And then an affidavit from the financial institution
dedicating the funds to the project. A written statement saying yes we are going to pay
for this. I’m fine giving some time to clean it up based on the strength of what you’ve
submitted. Do you have a sense of how long it would take to accomplish that?
Rossman: I’m guessing we’ll probably get approval, if we need new bids and have to
get them approved it will push it out another 3 to 4 weeks. So that is April 8, and then
a week to get a contractor to put a plan together. We’re probably out to April 12.
Moermond: I’m thinking I’d like to send this Council on March 23 to check in with them
and ask them to send it back to me to review your updated plans and completed
information on April 26. That gives you six weeks to pull things together. I’m going to
also say, if you have a third party that information needs to be done at the same time.
So if you aren’t doing the rehab I need to see their bids, contract, financing, schedule
and so on at the same time. That give you some wiggle room to do a transaction if one
presents itself, but they will still be accountable on that deadline. Have the materials
to my office April 22.
Rossman: that sounds good. I assume there will be a letter? Would we need to do
anything on March 23?
Moermond: I’ll be asking them to refer it back and I have no reason to believe they
wouldn’t do it.
Moermond: any hiccup we would of course alert you, which I don’t anticipate. I just
need to touch base with them.
Referred to the City Council due back on 3/23/2022