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    4. 5.    
Economic Development Authority (EDA)
Meeting Date: 09/14/2017  
Submitted For: Patrick Brama, Administrative Services
By: Patrick Brama, Administrative Services

Title:
Resolution #17-09-232 Requesting use of the Anoka County HRA Fund: Case of the City of Ramsey's New Business Park
Purpose/Background:
PURPOSE
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.

BACKGROUND
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.  Attached to this case is high-level background information on the project.  Also attached is the assessment agreement for this project.  For detailed background information, please contact staff.
 
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.
Notification:
NA
Observations/Alternatives:
NA
Funding Source:
ACHRA: balance anticipated at year end (2017) $1.75M.

SIDEBAR--
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

 

 


 
Recommendation:
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.
Action:
Motion to recommend the City Council adopt:
Resolution #17-09-232 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.

Attachments
RES 17 09 232
Biz Park Background
Assessment Agreement

Form Review
Inbox Reviewed By Date
Kurt Ulrich Kathy Schmitz 09/11/2017 09:24 AM
Form Started By: Patrick Brama Started On: 09/07/2017 03:34 PM
Final Approval Date: 09/11/2017

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