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2004 CDBG FUNDS <br /> <br />By: Sean M. Sullivan, Economic Development / TIF Specialist <br /> <br />Background: <br /> <br />The City of Ramsey received $220,000 in CommunitY Development Block Grant (CDBG) funds for 2003. <br />These funds were used to assist in redeveloping the older areas of Gateway North Industrial Park Plat 2 ("Tin <br />Pan Alley") of' Ramsey, specifically regarding activities relating to the Chies and Morrell properties. As of this <br />Fall, both properties have been acquired but much work is still needed to be done. Demolition, site <br />improvements, and other redevelopment activities are necessary to make these properties marketable. These <br />activities can, and are being funded through Tax Increment Financing (TIF) District No. 2. <br /> <br />The funding cycle for 2004 CDBG fund has passed and the City was awarded $150,000 for acquisition of B & <br />A Cylinder, KIH Erecting or the Debee Property. Staff has been negotiating with Gary Hanson of Bakestar and <br />has determined that it would be advantageous to utilize CDBG funds, for this purchase instead of the above <br />mentioned parcels. It makes sense to focus greater attention to the area in the most need of work as a whole. <br />Shifting the funds to this area will help keep the redevelopment on track and further enhance an area in need of <br />enhancement. This by no means discounts the redevelopment that. still needs to take place on the <br />abovementioned properties but it does lead to a policy that would try to concentrate on a specific area to make a <br />greater immediate impact <br /> <br />Observations: <br /> <br />Staff met with the City Administrator to discuss potential CDBG projects following the award of $150,000. <br />Staff explained that more funds were needed to complete the Hanson transaction and that more participation in <br />the Critical Blight Redevelopment Area (CBRA) would be prudent. Staff has met with county officials and this <br />switch in project area is within the requirements on the CDBG process. The City administrator has concurred <br />and believes that a concentrated effort in this area will indeed provide more "visible" impact to an area in need <br />of redevelopment. It is' important to note that the B & A Cylinder, Debee and KIH properties are in need of <br />redevelopment and that they should still be considered for future funding cycles. Staff also feels that this <br />project is consistent with the goals and direction that the EDA has expressed, currently and in the past. Staff is <br />seeking a recommendation from the EDA to shift the 2004 CDBG funds to be utilized within the CBRA, <br />specifically to the Hanson property. <br /> <br />Recommendation: <br /> <br />EDA. to recommend to the City Council that -the City of Ramsey 2004 CDBG allocation of $150,000 be <br />amended to be used on the 14040 Azurite St NW (Hanson Property). <br /> <br />Review Checklist: <br /> <br />City Administrator, Jim Norman <br />Associate Planner, Megan Wald <br />Community Development Director, Sylvia Frolik <br /> <br />EDA: 08.09.04 <br /> <br /> <br />