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Motio~l c~'~'i(~! x'oting Yes: Chail]~erson Elvig, Councilmembers Zimmerman and Strommen.
<br />
<br />Case #3: ,~ io~tsider Fiuanciug for Ramsey Town Center Regional Improvements
<br />
<br />Cily Acln-~i~i:;i~t~,r Norman reported one of the issues remaining for the completion of the
<br />Dcvelopm~z~,t ?,.gr, :c:mcnt with Ramsey Town Center, LLC was the responsible parties to pay for
<br />thc regiomtl i~t,~'r wemcnts sm'rounding the Town Center project. Staff has been in discussions
<br />with Anol,.~ (',~t~n~ y s intze th.e sttmmer of 2002 and recently received the first proposed draft of a
<br />Joim l'owc:~-~ /~4,~r,x'.nlent UPA) with Anoka County. The county has indicated it is their past
<br />practice tl~l ~l~.:,/ i~mmce no greater than 30 percent of a project. It is staff's feeling this project
<br />has a grcai bc~:! ii to die county. The full build-out tax generated for the City will be close to 3.4
<br />million del lin'-, ~ml thc county will receive 3.3 million dollars per year in new tax revenue. Due
<br />to tiffs, stroll' i-~e~i(~x, cs thc ~;ounty's participation should be greater than 30 percent. During
<br />discussion:-; xvi~3~ tl~c county they tried to be as creative as possible. Staff has met with
<br />Oppcnhci~c.~ ,~ Company, Inc. who works with the county. They have discussed a new concept
<br />called Va~ i;~bi,.: R~te. Demand Bonding. Ralph McGinley of Oppenheimer & Company will be
<br />explaini~ ~lt~: < o~,:~:pt of the Variable Rate Demand Bonding to the Finance Committee.
<br />
<br />Chairpers(~ t.'.ixi? ClUcstioncd if the improvements being discussed would be on Ramsey
<br />Boulcva~-d. !5',i..~,1~,.. ay 116 and Armstrong Boulevard as it surrounds the Town Center. He
<br />clari fled Il,,: l i~:.~}~ lng would not include the infrastructure and streetlights, but would primarily
<br />include iht: :~t,-t?,:t ~:n(t the ac(:esses.
<br />
<br />Finance O {'i'ic,.:~ l.~ ,~d i~adicatcd the financing includes the street, the storm, and the signalization
<br />
<br />Assistanl I't,l~tic ~/od~s Director Olson explained the Joint Powers Agreement was included
<br />tonight lb~ tl~: ,'~'.t~nittce's information. The idea tonight is to go over the variable interest rate
<br />and stttl'f' will w,~r=l< wi th the county to fill in the numbers in the agreement.
<br />
<br />Cotmci Ime.~,}',,.'~ /( m~nc~ man commented he believes there was county participation in the Line
<br />
<br />Assistant {'t~bli~: \¥~rk~ Director Olson explained the Joint Powers Agreement is a draft. It
<br />shows ×ct,> p~rii,,:ii*atio~, hoxvever, the county has not indicated they will not participate. The
<br />agreement w~5; ~ ~{:i tMed (o show the text.
<br />
<br />Ralph Mc(;,~i~% 5;cnior Vice President of Fixed Income Originations of Oppenheimer &
<br />Company, i~}~;., ~:>~91~i~cd Variable Rate Demand Bonding is a financing technique that would
<br />take a fi×cfi ~':~i~. !~:~yn~cnt fi'om the county and turn it from 30 percent to closer to 50 percent. It
<br />is not ~n illc~'ca:q~_ it~ county dollars, but is an increase in the City's cost. Mr. McGinley
<br />cxplainc{I Iit~' <:o~tr t:p[ (>1' Variable Rate Demand Bonding and the role of the City and county
<br />wilh this Iv{~i~dir~,..
<br />
<br />It was v~ot~:~! 11 ~ ~: v,/iil be a protection mechanism with a cap on the interest rate that would be
<br />monitored bv f)9i~,'nh¢imcr & Company.
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<br />Finance Committee/February 24, 2004
<br /> Page 3 of 5
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