Discuss Requesting/Allocating Funding from Anoka County Housing and Redevelopment Authority  toward The COR Development Project

At the HRA meeting of September 11, 2012, the HRA adopted the 2013 HRA levy. During the discussion of the levy, the HRA directed staff to request $236,000 in funding from the Anoka County HRA for 2013, to go toward The COR development project. Staff sent a request for the funding to Ms. Karen Skepper of the Anoka County HRA. Ms. Skepper advised that the request has to be done by a resolution showing support of the City Council.  She also advised, that since the COR project is a mixed-use project, and not solely housing, that the greatest flexibility for the use of the County HRA funds is to authorize the County, by resolution, to utilize them for economic development.  Staff was also advised that the next meeting of the County HRA is October 23.   Ms. Skepper suggested that a separate resolution should be considered declaring support of Anoka County's county-wide economic development objectives and activities. She forwarded a template of such resolution.

Staff drafted the two resolutions necessary to complete the above-mentioned actions and attached them to this topic report.  These same resolutions have been placed on tonight's City Council Consent Agenda in anticipation of a Council consensus to bring the requests forward.    

According to the County, the city has great control over the funds.  It is the County's practice to place the collected levy into a fund that is then made available for eligible projects selected by that city.  Typically staff makes a request to ACHRA staff and they confirm that the project meets the requirements laid out in state statute.  The next step requires the city council to pass a resolution requesting $236,000 of funding to undertake COR development project.  The ACHRA board then approves the request and the money can be accessed.  The Council may request additional projects at any time, based upon the available funding.

Once the City opts-in to the economic development portion of the ACHRA, by passing the attached resolution, the city can use all funding for housing, redevelopment or economic development. There are no caps or limits on how the city decides to allocate their projects.

Originally, Ramsey opted into the HRA for the purpose of developing senior housing.  The County will also provide technical assistance, respond to  funding requests and make periodic presentations as the City requests.

If a city opts in to the economic development activities they are “in” for 5 years.  At the 5 year point the city can opt out by resolution.  There is no penalty as no additional dollars are levied. 

An important point is that under the current structure, the ACHRA can only undertake housing and redevelopment projects.  If the City opts-in to the economic development activities, it expands the type of projects that will benefit the city.  The levy stays the same either way.

In addition to the annual levy, the resolution opens up the opportunity to utilize the current ACHRA undesignated Fund balance of $575,000 for economic development projects in Ramsey.

It is recommended that the Cuncil approve the attached resolutions requesting and authorizing use of County HRA funds.

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In anticipation of Council consensus, the resolutions attached to this topic report requesting the funding allocation and supporting the Anoka County HRA economic development activities have also been placed on tonight's Council Agenda - Consent portion - for approval.