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

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Councilmember introduced the following resolution and moved for its adoption: RESOLUTION #09- 05 -XXX RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS TO THE HOUSING AND REDEVELOPMENT AUTHORITY (HRA) TO BE USED FOR THE PURCHASE OF THE RAMSEY TOWN CENTER FORECLOSED LAND WHEREAS, the Ramsey Town Center foreclosed land purchase is set to close on June 26, 2009 between the City of Ramsey's Housing and Redevelopment Authority (HRA) and Minnwest Bank; and WHEREAS, the amount of the purchase price is $6,750,000; and WHEREAS, as the City's HRA is acquiring the property, the purchase transaction is required to be funded through the City's designated HRA fund; and WHEREAS, the Water Utility Fund will be internally loaning the HRA fund in the amount of $2,325,000 to be repaid with future land sales for the principal and respective interest at the rate of four percent annually; and WHEREAS, the Sewer Utility Fund will be internally loaning the HRA fund in the amount of $2,325,000 to be repaid with future land sales for the principal and respective interest at the rate of four percent annually; and WHEREAS, the Streetscape Fund will directly transfer $1,500,000 to the HRA fund from the original three million dollar letter of credit proceeds with no reimbursement required; and WHEREAS, the remaining $600,000 will be funded from the Anoka County Housing & Redevelopment Authority from excess levy dollars held on behalf of the City from the Savannah Oaks Senior Housing Project, with no reimbursement required. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: 1. That the Ramsey City Council authorizes the transfer of funds to the City HRA fund to be used for the purchase of the Ramsey Town Center foreclosed land in the respective amounts of $2,325,000 from the Water and Sewer Utility Funds and $1,500,000 from the Streetscape Fund. 2. The Water and Sewer Utility Funds will be reimbursed with future land sales and a four percent per annum interest cost. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon, the following voted in favor thereof: