Authorize County HRA to Perform Economic Development Activities and Requesting/Allocating Funding from Anoka County Housing and Redevelopment Authority  toward the Purchase of the Property at 6710 Highway 10 NW

At the HRA meeting of May 14, 2013, The HRA was advised that the owner of 6710 Highway 10 NW had accepted the HRA's offer of $361,000 for the purchase of the property and that the purchase agreement had been signed by the seller and HRA Chairperson Backous.  The HRA was advised that Anoka County had indicated there are sufficient funds through the Anoka County HRA if the City designates Anoka County as a development arm of Ramsey. Staff has contacted Ms. Karen Skepper of the Anoka County HRA about the funding.  Ms. Skepper advised that the request has to be done by a resolution showing support of the City Council.  It is anticipated the resolutions necessary will be on the City Council Consent Agenda for June 25.  The resolutions will be to request to have economic development activities performed by the Anoka County HRA and approving the specific funding request.    Staff was also advised that the next meeting of the County HRA is June 25.  Karen Skepper will be at the Work Session to  explain the process for requesting County HRA funds as well as to answer any questions Council may have.

According to the County, by practice, the City exercises control over the County HRA/EDA 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 $361,000 in funding to purchase the property at 6710 Highway 10 NW.  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 that 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 funding pool.

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

The levy for the County HRA remains the same whether the City opts-in to the economic development activities or not, but it does expand the type of projects that will benefit the city. 

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 Council direct staff to draft the resolutions to  authorize the Anoka County HRA to Perform Economic Development Activities and Requesting/Allocating Funding from Anoka County Housing and Redevelopment Authority toward the Purchase of the Property at 6710 Highway 10 NW.

N/A

Motion to direct staff to draft the resolutions to a authorize the Anoka County HRA to Perform Economic Development Activities and Requesting/Allocating Funding from Anoka County Housing and Redevelopment Authority toward the Purchase of the Property at 6710 Highway 10 NW.