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    7. 7.    
CC Regular Session
Meeting Date: 10/10/2017  
Submitted For: Patrick Brama By: Patrick Brama, Administrative Services

Resolution #17-09-232 (Resolution number has been changed to #17-10-232) Requesting use of the Anoka County HRA Fund: Case of the City of Ramsey's New Business Park
Consider approving the attached resolution formally requesting use of Anoka County Housing & Redevelopment Authority (ACHRA) fund dollars to help pay for arterial infrastructure located along Bunker Lake Boulevard and Puma Street, within the city's new business park.

This case is administrative.  Staff is lining up funding sources for this project.  The EDA and City Council have provided direction on this project in the past and have been supportive of this funding source for this project.  Attached to this case is high-level background information on the project.  Also attached is the assessment agreement for this project. 
Anoka County HRA
In order to utilize ACHRA dollars, the city must receive formal authorization from the ACHRA board.  In order to be considered by the ACHRA board, the city must pass/ submit a formal resolution requesting dollars.

The City has used the ACHRA fund in the past to help financially assist housing projects and to pay for the purchase/ clean up of blighted properties.  Eligible uses of the program are economic development, redevelopment, and housing projects.

The ACHRA fund is an elective program.  City's choose to participate.  If City's participate, Anoka County levies dollars from Ramsey residents on the city's behalf.  Although the ACHRA cannot use said Ramsey dollars for their own initiatives, they do provide oversight of each individual communities' ACHRA fund, and they do have the authority to approve or deny requests from individual communities.  The City of Ramsey has participated in the ACHRA for over 10 years, and levies roughly $300,000 annually.
Funding Source:
ACHRA: balance anticipated at year end (2017) $1.75 million.

Staff would like to make a high level note regarding funding.  As the EDA/ Council knows, several development projects recently reviewed by the city include some form of city financing.  Below is the summary of sources/ uses of funding for various projects.  These numbers are rounded preliminary estimates.  Final numbers will vary.
Cost of Projects (City):
(1) Bunker/ Puma Arterial Infrastructure Project: $3.68M
(2) PSD Business Park, Internal Public Roadway: $250K
(3) PSD Business Park, Spec Industrial Building: $234K
(4) Adrenaline Sports Center Building: $250K
(5) Stone Brook Children's Academy Public Roadway: $240K

Funding of Projects (city):
(1) Bunker/ Puma Project: Trunk Sewer/Water Fund ($1.1M), TIF #1 ($900K), ACHRA ($1.7M)*
(2) PSD Business Park, Internal Public Roadway: Ramsey EDA Fund ($250K)
(3) PSD Business Park, Spec Industrial Building: TIF District #16 ($234K)
(4) Adrenaline Sports Center Building: Ramsey EDA Fund ($250K)
(5) Stone Brook Children's Academy Public Roadway: TIF District #14 ($240K)
*roughly $1.2M returned back to the Ramsey EDA over time, from assessments.

City Funding Sources (end of 17):
TIF #1: $1M
TIF #14: $600K
TIF #16: $234K (paygo 9 yrs)
ACHRA: $1.75M
EDA Fund: $725K



This case is administrative in nature.  The city has reviewed multiple cases and has made multiple actions supporting this request.  Now, that the overall project is moving forward (Capstone, PSD, etc.), staff would like to make a formal request to the ACHRA.  Design for the remaining Bunker/ Puma work will occur over the winter.  Construction is anticipated for spring/ summer 2018.  Staff would like to complete this step (i.e. make sure our funding is in place) before we award a contract for the road construction.

The EDA reviewed this case on 09/14/2017.  The EDA passed a motion 6-0 to recommend the Council approve the attached resolution. The EDA felt this action was consistent with previous EDA/ Council direction on this overall project.
Motion to:
Adopt Resolution #17-09-232 232 (Resolution number has been changed to #17-10-232) requesting the Anoka County Housing and Redevelopment Authority (ACHRA) allocate $1,750,000 for infrastructure costs associated with the City of Ramsey’s new business park development.

RES 17 09 232
Biz Park Background
Assessment Agreement

Form Review
Inbox Reviewed By Date
Kurt Ulrich Kurt Ulrich 10/05/2017 07:37 AM
Form Started By: pbrama Started On: 09/21/2017 04:00 PM
Final Approval Date: 10/05/2017

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