Agenda - Economic Development Authority - 03/08/2012

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Observations: Funding Source: The Ramsey EDA has the ability to buy and sell property. The EDA has the authority to redevelop property (See attached EDA -HRA comparison). The EDA Fund can be utilized to acquire land and /or buildings. The current balance in the fund is approximately $1.2 million. This fund is used for EDA operations, professional services, grants and loans to businesses, and to replenish the City's RLF Program. Based upon current obligations, the EDA Fund could be used for land acquisition along Armstrong Boulevard as part of the Sunwood Realignment Project. Staff Recommendation: Given current financial obligations, City staff recommends the EDA consider financial participation in the land acquisition piece of the proposed Sunwood Realignment Project. It is recommended that this participation not exceed 50% of the current available fund balance (or $600,000), that the EDA funds be used specifically for the largest possible portion of the land located of the comer lot at 8020 147th Avenue NW and that is owned by NDS Properties, LLC, that the EDA reserves the right to demolish any structure currently on site to make the site shovel - ready, and that any sale proceeds from said land be used to replenish the EDA Fund. EDA recognizes that this property investment may be a long -term hold depending on funding for the Armstrong Interchange and retail development on the east side of Armstrong Blvd. EDA Action: The Ramsey EDA recommends to the City Council that EDA funds are utilized in the land acquisition piece of the proposed Sunwood Realignment Project. It is recommended that this participation not exceed 50% of the current available fund balance (or $600,000), that the EDA funds be used specifically for the largest possible portion of the land located of the corner lot at 8020 147th Avenue NW and that is owned by NDS Properties, LLC, that the EDA reserves the right to demolish any structure currently on site to make the site shovel - ready, and that any sale proceeds from said land be used to replenish the EDA Fund. Sunwood Drive - Ph. 2 Map Sunwood Drive Financing EDA -HRA Powers Attachments Form Review Inbox Reviewed By Date Heidi Nelson Heidi Nelson 03/02/2012 01:07 PM Aaron Backman (Originator) Aaron Backman 03/02/2012 01:08 PM Form Started By: Aaron Backman Started On: 03/02/2012 09:22 AM Final Approval Date: 03/02/2012