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HRA# WAIVER OF INTEREST AND PENALTIES ON RTC SPECIAL ASSESSMENTS By: Diana Lund, Finance Officer Background: On June 26, 2009, the City of Ramsey purchased the foreclosed parcels within the Ramsey Town Center for a cash purchase price of $6,764,429 and abated the special assessments on the property which included $5,851,197 of principal, $1,420,976 of interest applied by the city and $1,432,618 of interest and penalties applied by the county for a grand total of assessments of $8,704,791. These costs were to be reimbursed as the RTC parcels were sold. At a worksession in March, council was presented with the financial tool known as the `dashboard' which itemizes all development costs that need to be undertaken. This dashboard will be used to determine the per-acre sale price of the land. Included in the dashboard was the full assessment costs - principal and all applicable penalties and interest. At this worksession, council was in agreement that the city should be reimbursed for the principal portion of the assessments only as the city did not experience any major interest costs or penalties. The removal of the penalties and interest brings the land costs into a more reasonable saleable value. Funding Source: Forego internal rate of return on principal assessment amount. HRA Action: Motion to recommend to HRA adopt Resolution # 10-04-XXX Waiving the penalties and interest on the special assessment partials that were abated during the purchase of the RTC foreclosed land parcels on June 26, 2009. Reviewed By: City Administrator: Finance Officer HRA: 4/13/10