Agenda - Council - 07/14/2009 - Laserfiche WebLink

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CASE # b CONSIDER ADOPTION OF RESOLUTION APPROVING THE TERMS OF $1,140,000 INTERNAL LOAN IN CONNECTION WITH TIF DISTRICT NO.4 By: Brian Olson, Public Works Director, Heidi Nelson, Deputy City Administrator/Director of Community Development, Sean M. Sullivan, Economic Development Coordinator Background: As a part of the future improvements to Armstrong Boulevard, the City of Ramsey is purchasing the right-of way located at 14550 Armstrong BlvdNW, commonly known as the Oasis Market. On June 30th, 2009 Work Session the City Council discussed the mechanism involved in utilizing TIF funds for this acquisition, which includes an internal loan from the Public Improvement Revolving Fund to be reimbursed by TIF District No.4 once the budget for that district is amended. Council also discussed the Joint Powers Agreement (JP A) for the AUAR (Alternative Urban Area-wide Review) Roadway Improvements associated with the Town Center development. To provide some background, the JP A was entered into between the City and Anoka County in May of 2005. The JP A set up the relationship between the City and County for the county road improvement projects on Sunfish Lake Boulevard, Ramsey Boulevard, Armstrong Boulevard, and Bunker Lake Boulevard. The original JP A and subsequent amendment are attached for Council review, page 7 of the JPA notes the city's right-of-way obligations for the improvements. The county committed 4.4 million to the overall cost of the projects, 3 million was assessed to the RTC properties, and the remaining 7 million was a city obligation. Detail regarding the costs of the improvements is attached as Exhibit A. Since May of2005, work has progressed according to the JPA as is reflected in the improvements to Ramsey Boulevard and Sunfish Lake Boulevard. As Council is aware, the approach to improvements on Armstrong Boulevard has changed in the past year to shift gears and pursue an interchange vs. interim improvements, that would have been similar to the improvements at Sunfish Lake and Ramsey Boulevards. To that end, in October of2008, the Council authorized the continuation of the land acquisition stage of the process and delayed the construction of Improvement Project 06-20, Armstrong Boulevard Project to 2010, thereby allowing additional time to determine available funding sources for an interchange project with an overpass of the railroad crossing. The case and the minutes from that meeting are attached for Council review. In March of 2009, Council authorized an amendment to the JPA with Anoka County which further supported the interchange at Armstrong by shifting improvements to the Bunker Lake Boulevard and Armstrong Boulevard intersection, improvements that would be required to . support the interchange at Armstrong and Hwy 10. The case and the minutes from that meeting are attached for Council review. The action tonight authorizes the Council to utilize TIF funds to cover the costs of the purchase of ROW at Armstrong and HwylO, via a reimbursement from the balances of TIF Districts 1 & 4 once the TIF District budgets are amended for that purpose. The attached inter-fund loan resolution would allow the City to reimburse acquisition and relocation expenses from the City's PIR Fund with tax increment revenue received from Tax Increment Financing DistrictNo. 4. It is anticipated that the expenditures will not exceed $1,140,000 and that is reflected in the resolution. State law requires that a resolution be put in