Minutes - Council Work Session - 10/09/2012

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Councilmember McGlone stated the Council has not set the final levy and needs to talk about that without using this pot of money because he thinks it is "bait and switch" to the taxpayers. Mayor Ramsey stated he did not agree with that opinion, noting the Council will be talking about a senior housing project. Councilmember McGlone felt it would then be a standalone project and the City could go back to Anoka County for funding of just that project. Mayor Ramsey stated he opposed levying more taxes or using reserves and preferred to use the money now. Deputy City Administrator/Finance Director Lund asked when Anoka County took over the debt and how long Ramsey had to stay in the Anoka County levy. Ms. Skepper advised the Joint Powers Agreement lasts the length of the debt, which has 20 years remaining The time out piece was a period of five -years during which if the project did not cash flow, the City was responsible for that amount. However, that did not occur and the five -year period of time expired. Management Analyst Brama stated if the City chose to opt in with EDA activities, it is not dedicating to a specific path or program, it is just allowing the use of the funds so it would not tie the hands of the EDA. He stated this discussion started because of the County's Economic Guardian Program and opting in only allows the ability to use the funds. Councilmember Elvig asked whether HRA funds are taxed and pooled. Ms. Skepper stated they are not and when economic development powers were added, it did not include a separate EDA with levy authority. The funds can be used for housing, redevelopment, and now economic development. Councilmember Elvig agreed with the comments of Councilmember McGlone that this is a "bait and switch" situation. He asked whether Ramsey citizens are aware Anoka County is levying HRA dollars for EDA activity. Ms. Skepper explained that is why Anoka County is working with City Councils, to have discussions and resolutions and assure it is openly aired. Mayor Ramsey indicated that HRAs generally have more authority than EDAs and can do economic development activities with EDA dollars. He felt there was no difference in this case just because the money has "HRA" on it. Councilmember McGlone stated when the City bought The COR, the Council talked about what it needed to do. He noted a restaurant needs people and that is the reason for the Flaherty building. Councilmember McGlone felt $500,000 could be quickly used with an apartment building and he thinks the City will get another opportunity to use that money in one project. City Council Work Session / October 9, 2012 Page 6 of 8