Minutes - Economic Development Authority - 09/08/2004

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· Community Development Block Grant Funds Chairperson Riley directed staff to add discussion of how the EDA should utilize the Ramsey Growth Fund and the EDA's utilization of the fmancial tools that have been discussed this morning to the agenda of the next EDA meeting. Associate Planner Wald requested direction as to whether staff should complete another direct mailing of the Balancing Growth and "Don't Break the Bank". The consensus of the EDA was to direct staff to complete another direct mailing of the Balancing Growth and "Don't Break the Bank". Case #3: 2005 EDA Levy Economic Development / TIF Specialist SulliVan advised the EDA budget is primarily funded through two sources, which are proceeds from the sale of City/EDA owned property and the HRA Levy. The EDA is still paying for acquisition of Alloy Recovery through the HRA levy, and a minimum of $60,959.03 will need to beilevied for payable 2005. At the August EDA meeting, the Board approved the levy amount of $233,306.42, which was the maximum levy amount under the HRA levy. Staff was directed to bring back a projected budget identifying land purchases. He explained it now seems appropriate to visit the idea of utilizing an EDA levy, rather than an HRA levy. There are no levy limits this year and the EDA levy is more flexible than the HRA levy. His recommendation would be to utilize the EDA levy. These funds are more flexible and could be used to purchase vacant land and redevelopment signs. Member Strommen stated flexibility in using the funds would be a benefit. Member Kiefer concurred. He stated in addition, an EDA levy would be more appropriate than an HRA levy, as the function of the EDA is economic development. Economic Development / TIF Specialist Sullivan advised the budget includes the amount of $233,306.42, which is the amount approved by the Board at the August meeting. Member Steffen questioned what expenses would be cut if the levy of $233,306.42 is not approved. Economic Development / TIF Specialist Sullivan replied that would be determined by the Board. Member Gromberg noted miscellaneous operating supplies was budgeted for $9,000, and only $4,900 has been spent to date. He inquired if excess funds would be allocated to the Ramsey Revolving Loan Fund. Economic Development / TIF Specialist Sullivan replied the funds would be a carryover into the next year of the EDA budget. Member Kiefer questioned if the funds would be permanently earmarked for the EDA. Economic Development / TIF Specialist Sullivan responded in the affirmative. Economic Development Authority/September 8, 2004 page. 6 of 9