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Ramsey banking services for the year 2002, and adopt Resolution ~02-01-011 authorizing <br />signatures for financial transactions. <br /> <br />Motion carried. Voting Yes: Councilmembers Hendriksen, Zimmerman, Anderson, and Kurak. <br />Voting No: None. <br /> <br />Case #6: <br /> <br />Consider Applying for 2002 Community Development Block Grant (CDBG) <br />Funds <br /> <br />Community Development Director Frolik stated that commencing in the 2001 CDBG funding <br />year, the County restructured the program and now offers the funds to municipalities on a <br />competitive basis. Awards are based on applications consistent with the high or medium <br />priorities of the County. Changing to a competitive based system requires less time tracking <br />small, individual projects and provides more time for larger, community-wide projects. CDBG <br />funds may be used for property acquisition and elimination of blight. The City does not have to <br />have a specific redevelopment project in mind in order to acquire the property. The property can <br />be used for affordable housing or economic development. If the City can't find a use that meets <br />the national objective, they must pay the program back the fair market value, not what the actual <br />purchase price was, which is usually higher than fair market value. In order to meet the national <br />objective for an economic development purpose, the company that develops on the property has <br />to create one new low/moderate income employment position for every $35,000 of CDBG funds <br />invested in the property acquisition. There must be a willing seller; CDBG funds cannot be used <br />for eminent domain. Staff requested that the City Council authorize staff to submit an <br />application to Anoka County for CDBG funds for the purpose of acquiring two blighted parcels <br />in the industrial area for clearance and future redevelopment. This activity is ranked high <br />priority on the County's 2002-2005 Community Development Goals and Priorities. There have <br />been preliminary discussions with the landowners and they are willing sellers. The estimated <br />purchase price for the two lots is $270,000. <br /> <br />Councihnember Hendriksen inquired if there is a limitation on how the land is developed. <br /> <br />Community Development Director Frolik replied no. <br /> <br />Councilmember Zimmerman inquired if the j ob requirement was reasonable. <br /> <br />Community Development Director Frolik replied that in this case they would be talking about <br />eight jobs. <br /> <br />City Administrator Norman noted that in TIF agreements the City uses one job for every $25,000 <br />of assistance. <br /> <br />Councillnember Hendriksen questioned the size of the lots. <br /> <br />Community Development Director Frolik replied that they are each about an acre in size. <br /> <br />City Council/January 8, 2002 <br /> Page 16 of 27 <br /> <br /> <br />