2.2.
CC Work Session
- Meeting Date:
- 07/22/2014
Information
Title:
HRA Dissolution Process
Purpose/Background:
At the Council work session on April 8th, staff provided the Council with general information on the HRA's real estate holdings and financial status. The process for dissolving the HRA was outlined and input from the Council was sought regarding where the HRA's assets should be transferred if and when the HRA is dissolved. The consensus of the Council was to transfer the COR properties to the City and the remaining properties to the EDA. Attached is a map showing the location of the properties currently held by the HRA. All but one are located in the COR.
As a reminder, the Charter provides that properties owned by the City cannot be sold unless the Council passes an ordinance approving the sale. Because of the Charter ordinance requirements (two readings, and the ordinance is not effective until 30 days after publication), property closings may be delayed longer than buyers may desire. An EDA, acting solely under EDA authority, also has limitations on the sale of property, including a public hearing requirement and a requirement that plans and specifications for development be submitted by the buyer before the sale. An EDA with HRA powers can approve a sale without a public hearing and such other restrictions.
The Ramsey EDA's enabling resolution (98-11-280, attached) has been interpreted to mean that the EDA has HRA authority. It can therefore sell land in the same manner as the current HRA. The non-COR property can be transferred to the EDA by Council resolution at any time. No public hearing or action by the EDA or the HRA is required.
If the COR properties are to be transferred to the City, that will occur when the HRA is formally dissolved later this year. That is done by ordinance.
Staff is seeking confirmation as to the properties to be transferred to the EDA and the City, direction as to the timing of any transfers to the EDA, and direction as to any modifications to the EDA's enabling ordinance that may be desired.
As a reminder, the Charter provides that properties owned by the City cannot be sold unless the Council passes an ordinance approving the sale. Because of the Charter ordinance requirements (two readings, and the ordinance is not effective until 30 days after publication), property closings may be delayed longer than buyers may desire. An EDA, acting solely under EDA authority, also has limitations on the sale of property, including a public hearing requirement and a requirement that plans and specifications for development be submitted by the buyer before the sale. An EDA with HRA powers can approve a sale without a public hearing and such other restrictions.
The Ramsey EDA's enabling resolution (98-11-280, attached) has been interpreted to mean that the EDA has HRA authority. It can therefore sell land in the same manner as the current HRA. The non-COR property can be transferred to the EDA by Council resolution at any time. No public hearing or action by the EDA or the HRA is required.
If the COR properties are to be transferred to the City, that will occur when the HRA is formally dissolved later this year. That is done by ordinance.
Staff is seeking confirmation as to the properties to be transferred to the EDA and the City, direction as to the timing of any transfers to the EDA, and direction as to any modifications to the EDA's enabling ordinance that may be desired.
Timeframe:
15 minutes
Funding Source:
Responsible Party(ies):
Joseph Langel, City Attorney
Outcome:
Council direction on which entity should be the owner fo the HRA properties and what powers are to be conferred upon the EDA.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 07/17/2014 04:33 PM |
- Form Started By:
- jlangel
- Started On:
- 07/17/2014 11:49 AM
- Final Approval Date:
- 07/17/2014