Minutes - Council Work Session - 10/09/2012

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Interim Engineer Nelson reviewed the project schedule and indicated he would contact Connexus Energy tomorrow. The consensus of the Council was to not approve the proposal from Connexus Energy at an estimated cost of $28,760 to install 27 additional electrical receptacles and direct staff to determine the location of the original 33 receptacles and focus them along the entry. Deputy City Administrator /Finance Director Lund indicated this consensus will result in removing Item 8 from tonight's Consent Agenda. 2.04: Discuss Requesting / Allocating Funding from Anoka County Housing and Redevelopment Authority toward The COR Development Project Management Analyst Brama reviewed the staff report and advised that in addition to the annual levy, the resolution opens the opportunity to utilize the current Anoka County HRA undesignated Fund balance of $575,000 for economic development projects within Ramsey. Karen Skepper, Assistant Anoka County HRA Executive Director, explained that if the City put forward a request today, it could cover some specifically related housing projects in The COR. Mayor Ramsey asked if there is a downside to using these funds. Management Analyst Brama indicated this option was originally introduced at the EDA level and a number of questions were asked of Anoka County relating to liability, ability to opt out, and all responses indicate it is a safe action for the City. He explained that after five years, the City can opt out via Council resolution so the City is not being exposed to extra levy or liability. Ms. Skepper stated approval will add flexibility to spending and more options and she cannot think of a down side since there is no additional liability. Councilmember Backous asked how long the funds have been accumulating. Ms. Skepper explained that Ramsey joined the HRA about 12 years ago. The County has placed an HRA levy for all of those years. Some funds were pledged to support the senior housing should rents not cover all expenses but it is cash flowing so that has not occurred and the fund has grown. Ms. Skepper noted a past Council also used funds to purchase land in The COR for senior housing projects. She explained the County elected officials want to know the City Council has approved use of these funds so a resolution is required to spend the funds. Deputy City Administrator/Finance Director Lund indicated it was 2009 when the Town Center land was acquired and the City drew $600,000 for that purchase. Councilmember Backous stated there are a lot of economic development needs in Ramsey and asked why the City has not tapped into these funds for other projects. Mayor Ramsey stated the Council did not know the funds were available. City Council Work Session / October 9, 2012 Page 4 of 8