Minutes - Council Work Session - 09/11/2012

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Councilmember Elvig referenced a list of staff members along with objectives that contained a note by Mr. Mulrooney's name that he does prospecting; however, he does not think that is occurring. He noted the EDA just hopes to get a telephone call that someone is interested but he would like the EDA to have funds for prospecting, like the HRA has. Councilmember Elvig noted Ramsey was built on industrial properties but the City is not putting a lot of effort in that regard because it does not have a staff person to do prospecting. Councilmember McGlone agreed that industrial properties got Ramsey where it is and now it owns a potentially billion dollar property. He stated he would advocate for a prospector on the job because most of what the EDA does is reactionary and if it did prospect, it hired a consultant to do that for them. Councilmember Strommen stated she could agree if the HRA staff will do prospecting on other economic development projects. However, she thinks the City no longer has that capacity so someone is needed to look for prospects. City Administrator Ulrich clarified that the budget includes funds to hire a full -time staff person focused on development as part of the HRA and EDA functions. The focus of that position would be economic development. Councilmember Strommen asked whether that position will fulfill the duties and functions the City used to have on staff. City Administrator Ulrich stated the previous position was an economic communications and marketing manager. With the new position, the essential functions are not as focused on communication but to be proactive in business prospecting and tied into EDA and HRA on a regular basis. Councilmember Strommen stated that is what she is looking for. Finance Director Lund noted this staff position is 20% EDA and 20% TIF funded, which could go to EDA or HRA, making it about 50% coverage. Councilmember Elvig asked whether the HRA has its own levy authority. Finance Director Lund stated it does but that levy is calculated within the City's levy limits and the City Council has to adopt the final HRA levy. Councilmember Wise noted there is impact to the City's tax capacity numbers if funding in the EDA, which is the intent of shifting staff funding to the HRA. City Administrator Ulrich explained the EDA left it open in how the increase in levy by $68,000 would be used. The consensus of the Council was to support an EDA budget levy of $104,000. City Council Work Session / September 11, 2012 Page 3 of 5