03/15/11 - Laserfiche WebLink

Home

Case #4: Review HRA Expenditures (This item was discussed prior to Case #3.) Finance Director Lund reviewed the TIF dollars. Deputy City Administrator Nelson reviewed the HRA budget. Deputy City Administrator Nelson reviewed the Staff report. Development Manager Lazan stated the expenditures for the past year by Landform were discussed in the last two meetings. He noted there are three ways to pay the expenditures: the incentive portion, the visioning portion and the administrative portion. He explained that depending on the cut off' date for accounting and reporting, by the end of the next week, there will be $158,000 earned. There was $100,000 advanced last year, and $108,000 earned. Development Manager Lazan further explained $423,000 was spent in professional services, and roughly $50,000 in direct services. Commissioner Wise pointed out Development Manager Lazan is not making this money as income. He has to pay expenses and employees and represents 1.8 full time employees. Development Manager Lazan pointed out there is about 15 people putting in 3,300 hours in this project for Ramsey. A fair amount of what they have done is asset management. The City already owns the property and a lot of it had to be "cleaned up" as far as titles, etc. Much of this work was uncovered as the project progressed. He estimated they are half way through clearing titles and getting land ready for sale. Commissioner Elvig mentioned he would like to track this kind of progress on a quarterly basis. Commissioner McGlone explained that costs for projects are always higher in the beginning and he believes the costs will go down. Land is now saleable because it is recorded correctly with the County, whereas it wasn't before. He said he thinks the project is at the point where the costs will start to even out Case #3: Consider Development Management Contract Revisions (This item was discussed after Item #4) Deputy City Administrator Nelson reviewed the staff report. Development Manager Lazan reviewed the presentation. He noted a daycare facility is considering a purchase agreement and there is a draft LOI from a national developer for the West 50. A homebuilder is interested in two of the parcels and there is a number of building permit issues to work on with one of the parcels. Discussions continue with the YMCA. There is interest in a workforce component and in a tax credit application. He pointed out this is a lot of activity on a 118 - acre site, especially considering the economy. The past year was spent Housing and Redevelopment Authority / March 15, 2011 Page 4 of 9