Transfer of HRA assets to the City.

Purpose:  To transfer the assets of the HRA to the City prior to dissolving the HRA.

Background:  The City Council previously decided to dissolve the HRA.  Prior to dissolution, "all property, assets, cash or other funds held or used by the authority" may be transferred to the City.  Minn. Stat. §469.033, subd. 7.  All cash or other funds transferred to the City can only be used "for permanent improvements in the city or the retirement of debts or bonds incurred for permanent improvements in the city."  That decision will be made by the City Council after the transfer.  After the asset transfer is approved, the Council will have to hold a public hearing on the dissolution and then adopt the resolution dissolving the HRA.

The attached Resolution accomplishes the first step of transferring all real estate, cash, and other property from the HRA to the City.  It also directs staff to undertake any amendments to existing agreements so that the City replaces the HRA as the contracting party (for example, outstanding purchase agreements and the CBRE listing agreement).  Once all of the transfers are accomplished, the HRA becomes inactive and can be dissolved.

 

Staff recommends that the attached Resolution transferring all HRA assets to the City be adopted in order to move forward with the dissolution process.

Adopt the attached Resolution.