Agenda - Economic Development Authority - 03/09/2005

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Case # 1 ADOPTION OF RESOLUTION AppRoVING REDEVELOPMENT PROJECT AREA AND pLAN FOR MUNICIPAL CENTER PROJECT By: Diana Lund, Finance Officer 'Background: At the January 25, 2005, City Council meeting, authorization was given to proceed with the Municipal Center project and to make a formal request of the Economic Development Authority (EDA) to initiate the bonding process for.the project, which would be a lease revenue bond in an amount not to exceed $19,200,000. For the EDA to issue a lease revenue bond on behalf of the City, a Redevelopment plan and the establishment of the redevelopment project !area needs to be adopted per State Statutes, Sections 469.001 through 469.047(Housing and. Redevelopment Authority Act) which grants municipalities the authority to designate redevelopment areas within the boundaries of the municipalities. Within these areas, the municipality may adopt a redevelopment plan and establish a project consistent with the municipality's public purpose. These are the same Statutes that the City followed when a lease revenue bond was issued in 1999 for the Fire Station I project. To develop a redevelopment plan for the Municipal Center project, the City and the EDA must make the following findings: 1. The land in the redevelopment area would not be available for redevelopment without the financial aid sought. The redevelopment plan for the redevelopment area in the City will afford maximum opportunity consistent with the needs of the locality as a whole, for the redevelopment of the area by private enterprise. 3. The redevelopment plan conforms to the general plan for development of the City as a whole. On February 2, 2005, the EDA held a special meeting to adopt a Resolution initiating process for establishment of a redevelopment plan and at its regular meeting of February 8, 2005, City Council adopted a resolution initiating process for'approval of the redevelopment project area and called for a public hearing on the redevelopment plan. Observations: Changes in the Redevelopment Plan language were suggested by the EDA. Bond Counsel Ippel has made changes to the Plan that attempt to address the issues brought forward from the EDA. The new and old versions of the Redevelopment Plan document are attached for review. It is recommended by Staff to adopt the attached- resolution and accept the changes made by bond counsel to the Redevelopment Plan. EDA Action: Motion to adopt Resolution #05-03-XXX approving redevelopment project area and plan. 10