Agenda - Council - 01/22/2002 - Laserfiche WebLink

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-66- financial institutions as official depositories of City Funds for 2002, adopt Resolution #02-01- ~ designating Community First National Bank as official financial institution for the City of Ramsey banking services for the year 2002, and adopt Resolution #02-01-~ authorizing signatures for financial transactions. Motion carried. Voting Yes: Councilmembers Hendriksen, Zimmerman, Anderson, and Kurak. Voting No: None. Case #6: Consider Applying for 2002 Community Development Block Grant (CDBG) Funds Community Development D!~:eetOr Frolik stated that commencing in the 2001 CDBG funding year, the County restrucmr6di:':'fi4~,.program and now offers the funds to municipalities on a competitive basis: A~a~ are':~ed on applications consistent with the high or medium prior/ties of the Cou~'. ' ~'~ Changlngi. lito a competitive based'system requires less time tracking small, individual projects and pm~i~es .more time for larger, community-wide projects. CDBG funds may be used for Pr~Pe~'/~'~qg~;~fi~'~d elimination of blight. The City does not have to have a specific redevelopm~ht proj'~Ckt~n mi'~'d~in order to acquire the property. The property can be used for affordable housin~'0~'~"~c0~3mic ctb:Oelopment. If the City can't find a use that meets the national objective, they must pay ~e-"¢~:~n back the fair market value, not what the actual purchase price was, which is usually :higher than fair market value. In order to meet the national objective for an economic development pu~se; :~-h~i~'0mpany that develops on the property has to create one new low/moderate incol~g;~b~Ym~f~i~osition for every $35,000 of CDBG funds invested in the property acquisition. There will!gg~-seller; CDBG funds cannot be used for eminent domain. Staff requested that ~e':' City:?~b~ authorize staff to submit an application to Anoka County for CDBG fund§!:i;f0r. ~-~os~f~cquiring two blighted parcels in the industrial area for clearance and future:~il;~evei~ent?',:.:This activity is ranked high priority on the County's 2002-2005 Community Develop~ht Goa~and Priorities. There have been preliminary discussions with the landowners and they are ~ill~:::,sellers. The estimated purchase price for the two lots is $270,000. ~?~?'~ ~'~ Councilmember Hendriksen inquired if there is a limitation an how the land is developed. Community Development Director Frolik replied no. Councilmember Zimmerman inquired if the job requirement was reasonable. Community Development Director Frolik replied that in this case they would be talking about eight j ob s. City Administrator Norman noted that in TIF agreements the City uses one job for everY $25,000 of assistance. City Council/January 8, 2002 Page 16 of 27