Agenda - Council - 04/24/2012 - Laserfiche WebLink

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Councilmembers Backous, Elvig, Strommen, and Wise spoke in support of CVB membership, though acknowledging it is a difficult decision. Support was expressed because it would provide the City's hospitality industry with another tool/opportunity to attract business and remain competitive, Ramsey's surrounding communities are members, and the owner of the one hotel in Ramsey supports CVB membership. Economic Development/Marketing Director Backman indicated if approved, the City would need to adopt a resolution or ordinance to implement this CVB tax. Motion by Councilmember Elvig, seconded by Councilmember Strommen, to approve membership in the Twin Cities Gateway CVB and direct staff to develop a draft ordinance to be considered in March of 2012. Motion carried. Voting Yes: Councilmembers Elvig, Strommen, Backous, and Wise. Voting No: Mayor Ramsey, Councilmembers McGlone and Tossey. 7.04: Update on Sunwood Realignment Project Funding and Discussion of Right -of -Way Acquisition for Sunwood Realignment and Future Armstrong Interchange (Portions of this case may be closed to the public) Councilmember Wise recused himself at 7:41 p.m. due to a potential conflict of interest. Deputy City Administrator Nelson and City Engineer Olson reviewed the staff report. The Council noted the funding scenarios differ from what had been presented in January, most significantly the EDA contribution. Deputy City Administrator Nelson explained that as staff worked through the process it was found the remnant land would have redevelopment potential. In addition, it was found there were not significant dollars in the Storm Water Management Fund, but those funds would still be included. Councilmembers Strommen and Backous expressed concern with allocating the vast majority of EDA dollars (75% of its reserve) since it would not allow dollars for other projects and the EDA has not yet discussed this allocation. Another concern was that the City only had a certain amount of tax increment so it must be careful in where to make that investment. Councilmember Elvig noted it was originally presented as a $3.5 million project; however, now discussion includes whether to purchase all three properties on the west side of Armstrong Boulevard. He questioned whether this project was "right sized," if there was a need to purchase all three properties, in total, at this time, and that these expenditures may not count towards the City's match. Councilmember Elvig supported taking enough time to assure the project is properly sized and does not stretch the City's finances. City Administrator Ulrich stated staff is tracking all of the expenses as a portion of the City's contribution towards the interchange, a $ 3 3 million project. City Council / February 28, 2012 Page 5 of 7