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Motion by Chairperson Wagner, seconded by Member Riley, to direct staff to receive a quote <br />from Hoisington Koegler to layout a frontage road north of Ramsey Boulevard and from Sunfish <br />Lake Boulevard south to the Anoka border. <br /> <br />Motion carried. Voting Yes: Chairperson Wagner, Members Riley, Anderson, and Zimmerman. <br />Voting No: None. Absent: Members Blaha, LeTourneau and Scheiber. <br /> <br />Ed Hamilton, 6650 Highway # 10, Ramsey stated that he is concerned with what is being planned <br />along Highway #10 and requested a copy of the Highway #10 corridor study. <br /> <br />City Administrator Norman indicated the assumption isn't that the road will be built next year. It <br />is a long range plan. <br /> <br />Winslow Holasek, Andover, requested clarification on the proposed location of the frontage road. <br /> <br />Case #2: Development Agreement with Listul Industries <br /> <br />City Administrator Norman stated that on May 2, 1996 the City of Ramsey entered into a <br />Development Agreement with Listul Industries. The agreement included financial assistance <br />totaling $119,525.97. As of this date, the City has collected $41,036 from the tax increment that <br />was generated from this property leaving the balance of $78,489 owed to the City. Listul <br />Industries first mortgage was foreclosed upon by its bank. A Sheriff's sale was conducted on <br />December 1, 2000 and the property was sold to the bank subject to Listul's six month right to <br />redemption. The Listul property is still subject to property taxes and increment will continue to <br />be generated from this parcel. The property has a minimum assessment agreement in place in <br />favor of the City which provides that the minimum County Assessed value will be $750,000. <br />The City will continue to receive its required increment to reimburse its financial assistance <br />through the generation of tax increment. In the unlikely case the bank would sell the property to <br />a tax-exempt entity, the City's increment could be lost. The options available to the City are as <br />follows: 1) Sue Listul Industries for the amount of deficient increment based on the deficiency <br />agreement. As noted, this business is in foreclosure and the possibility of receiving the full <br />amount owed is not great. 2) The City can continue to collect increment from this parcel under <br />its current tax status and reimburse itself for the financial assistance provided. Staff <br />recommended that the City take no legal action in regards to a lawsuit against Listul Industries <br />and continue to collect increment from the subject property. <br /> <br />Member Anderson stated that she assumes that when the City makes these agreements they hope <br />that this type of situation will not happen and questioned if there is something that was missed in <br />this situation. <br /> <br />Member Wagner replied that Listul Industries had been in the City of Ramsey for quite some <br />time prior to the building being built. He inquired if it would be possible for the City to include <br />as part of the development agreement that if a situation similar to this were to occur the property <br />could not be sold to a tax exempt entity. <br /> <br />Economic Development Authority/January 8, 2001 <br /> Page 3 of 4 <br /> <br /> <br />