Agenda - Council - 03/10/2020 - Laserfiche WebLink

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CC Regular Session Meeting Date: 03/10/2020 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 7. 2. Information Title: Adopt Resolution #20-048 Authorizing Special Legislation for Tax Increment Financing District No. 14 Purpose/Background: Purpose: Staff is looking for authorization to work with Ehlers to submit special legislation to extend the 5 Year Rule to November 28, 2026 for TIF District No. 14. The 5 Year Rule in TIF Statutes requires that all qualified expenditures be made (spent or bonded/borrowed) within this timeframe. Background: The City of Ramsey has previously been granted special legislation for TIF District No. 14 to extend the 5 year rule five years to November 28, 2021. TIF District No. 14 is statutorily set to be decertified in 2040 and the proposed legislation Will not extend the duration of the district past 2040. However, November 28, 2021 is the last date that new contracts or projects can be entered into or be completed in order to be eligible for 100% financing or reimbursement. What this legislation would do is provide more time to complete projects within the District without extending the District itself. The timing of projects in the pipeline, including Bunker Lake Boulevard, are running up against this timeline, which could impact the ability to utilize TIF 14 as a funding source. Other sources such as the General Fund, or utility funds would need to be accessed in order to fund this project. Staff asked Ehlers to put together a memo outlining the history and process that would be needed to extend the 5 Year Rule and to give more flexibility for project financing moving forward. Notification: N/A Observations/Alternatives: Ehlers has provided a memo outlining the history and process involved to extend the 5 year rule to November 28, 2040. This process will involve engaging our legislators and drafting a bill for the 2020 session. Based on consultation with Ehlers, this type of legislation is common and there is a good chance that it would be approved by the legislature. Depending on how special legislation is obtained the cost would range from $5,000-10,000 (without lobbyist) to $20,000-30,000 (with lobbyist), which would be a TIF eligible expense. Staff is recommending that the City utilize Ehlers and City Staff and forego the lobbyist option and to submit this session. Committee deadlines (1st Deadline (ideal) March 20, 2nd Deadline March 27, and Final Deadline is April 3) are fast approaching so a decision needs to be made quickly. Approval of this legislation would allow for flexibility to provide incentives and project financing for an additional 5 years. Of key concern to Staff is the ability to utilize TIF District 14 as a funding source for the Bunker Lake Boulevard Improvement Project between Ramsey Boulevard and Armstrong Boulevard. This is the last piece of an agreement between the City and Anoka County to update roadway capacity as a result of the development of The COR. Under the Joint Powers Agreement (JPA), Anoka County completed expansion and improvements of Ramsey Boulevard, Sunfish Lake Boulevard and Armstrong Boulevard. Under this agreement, the City previously agreed to complete the improvements to Bunker Lake Boulevard between Ramsey Boulevard and Armstrong Boulevard. Growth and