Agenda - Council - 02/12/2013 - Laserfiche WebLink

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CC Regular Session 7. 4. Meeting Date: 02/12/2013 Submitted For: Kurt Ulrich By: Jo Thieling, Administrative Services Information Title: Adopt Resolution # 13-02-039 Approving Reimbursement Request to Anoka County Housing and Redevelopment Authority for Residential Property Acquisition Background: The City of Ramsey currently participates in the Anoka County HRA and City properties are taxed to support the County HRA levy. According to the County, the city has great control over the funds. It is the County's practice to place the collected levy into a fund that is then made available for eligible projects selected by that city. Typically, the City will make a request to ACHRA staff and they confirm that the project meets the requirements laid out in state statute. The next step requires the city council to pass a resolution requesting the funding from the County HRA. The ACHRA board then approves the request and the money can be accessed. The Council may request additional projects at any time, based upon the available funding. The current balance of available funding is approximately $575,000. Originally, Ramsey opted into the County HRA for the purpose of developing senior housing. The County will also provide technical assistance, respond to funding requests and make periodic presentations as the City requests. Funds are currently limited for use on housing projects. A resolution to expand the use of these funds for economic development purposes was brought to the Council in 2012, but it was was not approved. The City has reached an agreement to purchase a property at 6203 Rivlyn Ave. as part of a protracted effort by the City to clear the property of blighting influences (trash, abandoned vehicles, appliances, etc.). City staff has discussed this situation with the County HRA Executive Director and it will qualify as an allowable expenditure of County HRA funds. Observations/Alternatives: The City is currently committed to purchasing the property at 6203 Rivlyn Ave. NW for a purchase price of $83,000.00. In addition to that price, additional costs of $15,000.00 include: 1. City paid attorney fees including the title work the City agreed to in undertake in order to create marketable title, including a court action for an order exempting the property from a personal judgment; 2. Demolition expenses for removal of the house and garage on the property; 3. Closing costs. Therefore, the total cost for acquisition to the County is $98,000. Please note the the City also incurred additional legal deductible expenses of $10,000 in securing this settlement. The property owner has signed the purchase agreement. and the Settlement Agreement. It has been determined by our attorney that they are able to convey marketable title to the property and a closing is anticipated by April30th or earlier. If the City does not seek funding from the County HRA, local sources of funding would need to be used. These funds would typically be designated fund reserves of the City, that can be used for a variety of other purposes