Agenda - Council - 06/23/2009 - Laserfiche WebLink

Home

Consent# 1 � ADOPT RESOLUTION #09- 06 -XXX FOR THE TRANSFER OF FUNDS TO THE HOUSING & REDEVELOPMENT (HRA) FUND FOR THE RAMSEY TOWN CENTER LAND PURCHASE By: Diana Lund, Finance Officer Background: The Ramsey Town Center foreclosed land purchase is set to close on June 26, 2009 with Minnwest Bank. The price of the land to the City is in the amount of $6,750,000 with the City's Housing and Redevelopment Authority (HRA) acquiring the property. As the HRA is the entity purchasing the property, the $6,750,000 transaction needs to be made from the City's HRA fund. This requires internal transfers from the City's Water Utility, Sewer Utility and Streetscape (Letter of Credit Proceeds) Funds. The $6,750,000 funding consists of the following funding sources: $2,325,000 — Water Utility Fund - Internal Transfer to be paid back with 4% interest $2,325,000 — Sewer Utility Fund — Internal Transfer to be paid back with 4% interest $1,500,000 — Streetscape Fund — Remainder of Three Million Dollar Letter of Credit proceeds $ 600,000 — Anoka County Housing & Redevelopment Authority Funds - Deposited directly into City's HRA fund. Funding: The water and sewer utility funds are loaning the funds to the HRA and will be paid back with four percent interest when sales of the land are completed. The Streetscape and Anoka County HRA funds are direct payments with no reimbursements needed. Council Action: Motion to recommend Council adopt Resolution #09- 06 -XXX approving the transfer of funds to the Housing and Redevelopment Fund from the Water Utility Fund in the internal loan amount of $2,325,000, Sewer Utility Fund in the internal loan amount of $2,325,000 and the Streetscape Fund in the amount of $1,500,000. Reviewed By: City Administrator: Finance Officer Consent: 06/23/09