Adopt Resolution #13-08-147 Requesting that Anoka County Housing and Redevelopment Authority (ACHRA) Allocate $215,561 of its 2014 Levy toward Economic Development Activities in the City of Ramsey

During recent budget discussions, and in light of state imposed limits on the City's tax levy, staff was asked to prepare a request to the County HRA, requesting that they use their available Ramsey levy to support City expenses.

Ms. Karen Skepper of the Anoka County HRA has advised the City that the request has to be done by a resolution showing support of the City Council. The use of dollars generated by the County HRA levy is broadened now due to the City's recent passage of a resolution allowing the City to access County HRA dollars for economic development, whereas it was previously restricted to only housing projects. 

Staff drafted the resolution necessary to complete the above-mentioned actions and attached them to this topic report.  

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 request meets the requirements laid out in state statute.  The next step requires the City Council to pass a resolution requesting the funding.  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.

The resolution states that the City Council authorizes the request to the ACHRA to allocate $215,561 of its 2014 levy toward economic development activity in Ramsey, specifically for pay for personnel costs of the City Economic Development Authority (EDA) and City Housing and Redevelopment Authority (HRA).

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

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Motion to adopt Resolution #13-08-147 Requesting that Anoka County Housing and Redevelopment Authority (ACHRA) Allocate $215,561 of its 2014 Levy toward Economic Development Activities in the City of Ramsey