Agenda - Council - 02/13/2001 - Laserfiche WebLink

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I I I I I I I I I I I I I I i I Motion by Chairperson Wagner, seconded by Member Riley, to direct staff to receive from Hoisington Koegler to layout a frontage road north of Ramsey Boulevard and from s~nfiSh Lake Boulevard south to the Anoka border. Motion carried. Voting Yes: Chairperson Wagner, Members Riley, Anders~ Voting No: None. Absent: Members Blaha, LeTourneau and Scheiber. Ed Hamilton, 6650 Highway #10, Ramsey stated that he is concerned along Highway #10 and requested a copy of the Highway #10 bein~ City Administrator Norman indicated the assumption isn't is a long range· plan. It Winslow Holasek, Andover, requested clarification frontage road. Case #2: Development Agreement with Listul City Administrator Norman stated that on May 2, 1996 the into a Development Agreement with Lismk~dustries. The agreement assistance totaling $119,525.97. As of this dafki:~ th~:Ci~"~:collected $41,036 fromi.:z~'·~ax increment that was generated from this property't~ing th'~<~i~i~i!~i'~e ~of $78,489 o "to the City. Listul Industries first mortgage was foi:eclos~i;~pon by its~ib'a~,ii~}'~ShedfTs sale was conducted on December 1, 2000 and the property wa~!'~!d to th~ii!~ ~ ~Listul s six month right to redemption. The Listul property is still S'U~j~ct.~!~'.i~f;'perty t~nd increment will continue to be generated from this parcel. The prope~h~):~ minimum'~sessment agreement in place in favor of the City which provides that the mi'iilmum County Assessed value will be $750,000. The City wilt' continue to' receive its requir~d'~!~incmment to reimburse its financial assistance through the generation of taX. increment. In. the:.un!~Iy case the bank would sell the property to a tax-exempt entity, the Gimp's ::increment cou!ct;b?i~st. The options available to the City are as follows:' 1) Sue Listul IndUstries for the a~'fi~ of deficient increment based on the deficiency agreement. As noted, this business ~s in ':£0i:eclosure and the possibility of receiving the full amount owed is not great. 2) The CitY can continue to collect increment from this parcel under -'?its current tax status and reimburse itself for the financial assistance provided. Staff 'recommended that the City take no legal action in regards to a lawsuit against Listul Industries and continue to collect inCrement from the subject property. Member Anderson stated that she assumes that when the City makes these agreements they hope that this type of situation will not happen and questioned if there is something that was missed in this situation. Member wagner replied that Listul Industries had been in the City of Ramsey for quite some time prior tO' the building being built. He inquired if it would be possible for the City to include as part of the development agreement that if a situation similar to this were to occur the property could, not be sold to a tax exempt entity. Economic Development Authority/January 8, 2001 Page 3 of 4 -11-