Agenda - Economic Development Authority - 08/14/2014

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Economic Development Authority (EDA) Meeting Date: 08/14/2014 By: Ted LaFrance, Administrative Services Title: Dissolution of the Ramsey HRA Purpose /Background: At the Council work session on April 8th, staff provided the Council with general information on the HRA's real estate holdings and financial status. The process for dissolving the HRA was outlined and input from the Council was sought regarding where the HRA's assets should be transferred if and when the HRA is dissolved. The consensus of the Council was to transfer the COR properties to the City and the remaining properties to the EDA. Attached is a map showing the location of the properties currently held by the HRA. All but one are located in the COR. As a reminder, the Charter provides that properties owned by the City cannot be sold unless the Council passes an ordinance approving the sale. Because of the Charter ordinance requirements (two readings, and the ordinance is not effective until 30 days after publication), property closings may be delayed longer than buyers may desire. An EDA, acting solely under EDA authority, also has limitations on the sale of property, including a public hearing requirement and a requirement that plans and specifications for development be submitted by the buyer before the sale. An EDA with HRA powers can approve a sale without a public hearing and such other restrictions. The Ramsey EDA's enabling resolution (98 -11 -280, attached) has been interpreted to mean that the EDA has HRA authority. It can therefore sell land in the same manner as the current HRA. The non -COR property can be transferred to the EDA by Council resolution at any time. No public hearing or action by the EDA or the HRA is required. The Council provided direction to Staff at the July 22nd Work Session. Council provided direction that the HRA will transfer all properties (done via ordinance) to the City and the HRA to be dissolved by January 1st of 2015. No modifications were to be made to the EDA's enabling resolution. This direction does not substantially affect the operations of the EDA. Additional personnel costs will be absorbed by the EDA, as described in an earlier case by Finance Director Lund. Notification: Observations /Alternatives: 5. 1. Funding Source: N /A; however, as presented in an earlier case by Finance Director Lund the EDA's budget will be impacted by the addition of personnel costs upon dissolution of the HRA. Recommendation: Action: No action is needed. This case was created to provide an update to the EDA on the upcoming dissolution of the HRA. Constructive feedback is welcome. Attachments