Agenda - Economic Development Authority - 09/07/2005

Home

CASE # 1 2006 EDA BUDGET By: Scan M. Sullivan, Economic Development / TIF Specialist Background: On November 28, 1998 the City Council approved a resolUtion creating an Economic Development Authority (EDA) in the City of Ramsey. The resolution gives all the statutory powers of an EDA and Housing and Redevelopment Authority (HRA) to the Ramsey EDA. The EDA budget is funded primarily through two sources: 1) proceeds from the sale of City /EDA owned property and 2) the HRA/EDA Levy. It is important for the EDA to have the ability to make purchases of property, sometimes on short notice, so that it able to assemble properties in a timely manner for redevelopment. Additionally, it is also important to have adequate funding in order to utilize consulting tools for development and redevelopment. The EDA completed payments for the acquisition of Alloy Recovery in 2005. The enabling resolution adopted in 1998 requires that all recommendations by the EDA be sent to the City Council for approval before any action is taken. Observations: Staff was directed to bring back a proposed budget for 2006. (See attached line item budget). The proposed budget uses the maximum EDA. It should be noted that the total budget amount would be increased if the maximum EDA levy is implemented. In order to address future needs for land acquisition and economic and redevelopment opportunities, it would be prudent for the EDA to continue to seeie additional funding. It is significant to note that the HRA levy falls outside the State imposed levy limits and would not be subject to restrictions during levy limit years. This year is the same as last year, in fact that there are no levy limits imposed on cities. The EDA levy is very similar to the HRA levy but allows for 0.01813% (see proposed levy attachment) of the taxable market value to be utilized. More importantly, however, it allows greater flexibility to the EDA in how the funds may be expended. The EDA levy is not limited to housing and/or redevelopment. EDA levy funds could be' spent on items such as vacant land purchases, monument signs and other economic development activities. It is the opinion of Staff that the increase in the Levy could be utilized t° purchase and redevelop more properties in the City of Ramsey. The success of our Community Revitalization project and the positive public perception makes the choice to "step-up" EDA involvement a very rational move.' Recommendation: In order to address future needs for land acquisition and participate actively in future economic and redevelopment opportunities, it would be prudent for the EDA to seek additional funding and to recommend to City Council to levy the amount of $341,623,59 utilizing the EDA Levy.