08/09/04 - Laserfiche WebLink

Home

EDA BUSINESS Case #1: CDBG Economic Development / TIF Specialist Sullivan reviewed that the City of Ramsey received $220,000 in Community Development Block Grant (CDBG) funds for 2003. These funds were used to assist in redeveloping the older areas of Gateway North Industrial Park Plat 2 ("Tin Pan Alley") of Ramsey, specifically regarding activities relating to the Chies and Morrell properties. As of this Fall, both properties have been acquired but much work is still needed to be done. Demolition, site improvements, and other redevelopment activities are necessary to make these properties marketable. These activities can, and are being funded through Tax Increment Financing (TIF) District No. 2. Economic Development / TIF Specialist Sullivan explained the funding cycle for 2004 CDBG fund has passed and the City was awarded $150,000 for acquisition o£B & A Cylinder, KIH Erecting or the Debee Property. Staff has been negotiating with Gary Hanson of Bakestar and has determined that it would be advantageous to utilize CDBG funds for this purchase instead of the above mentioned parcels. It makes sense to focus greater attention to the area in the most need of work as a whole. Shifting the funds to this area will help keep the redevelopment on track and further enhance an area in need of enhancement. This would lead to a policy that would try to concentrate on a specific area to make a greater immediate impact. He explained staff met with the City Administrator to discuss potential CDBG projects following the award of $150,000. Staff explained that more funds were needed to complete the Hanson transaction and that more participation in the Critical Blight Redevelopment Area (CBRA) would be prudent. Staff has met with county officials and this switch in project area is within the requirements on the CDBG process. The City administrator has concurred and believes that a concentrated effort in this area will indeed provide more "visible" impact to an area in need of redevelopment. It is important to note that the B & A Cylinder, Debee and KIH properties are in need of redevelopment and that they should still be considered for future funding cycles. Staff also feels that this project is consistent with the goals!and direction that the EDA has expressed currently and in the past. Staff is seeking a recommendation from the EDA to shift the 2004 CDBG funds to be utilized within the CBRA, specifically to the Hanson property. Economic Development / TIF Specialist Sullivan advised staff recommends that the EDA recommend to the City Council that the City of Ramsey 2004 CDBG allocation of $150,000 be amended to be used on the 14040 Azurite St NW (Hanson Property). He explained the offer made on this property will either be contingent on Council approval or Council approval will be received prior to the offer being made. The Board discussed whether there should be Council approval prior to an offer being made on the property. Economic Development / TIF Specialist Sullivan noted the City had an appraisal at $400,000, and the appraisal received by the property owner was at $600,000. The number that is being negotiated at this time is somewhere in the middle of these amounts and that City Council would need to approve any sale that would take place. Economic Development Authority/August 9, 2004 page :2 of 12