Agenda - Economic Development Authority - 03/10/2022

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Economic Development Authority (EDA) 4. 2. Meeting Date: 03/10/2022 By: Sean Sullivan, Community Development Title: Update on Potential Tungsten Redevelopment Area Project Purpose/Background: Purpose: At the September 12, 2019 EDA meeting, the EDA authorized staff to begin work on the Interim Phase 2 component of the potential redevelopment project. Items identified in this phase included: 1. Documenting interest in landowners and business that are looking to sell. 2. Potentially acquiring parcels from willing sellers. 3. When possible, entering building and conducting an inspection and documenting the conditions with LHB , or other TIF professional present. Background: More work, including ROW acquisition necessary for the Hwy 10 improvements has identified parcels the have the potential for full acquisition and demolition of substandard structures. There is a possibility that some, or all of these properties might end up being partial acquisitions. Some of these structures are in the the Tungsten redevelopment area and are shown on the attached TIF Feasibility Analysis map. The time frame for acquisition of parcels that are needed for ROW will likely occur in the next several months with demolition commencing shortly after based on discussions with Anoka County. Based on the timing of potential acquisition and demolition of some of the structures in the Feasibility Analysis Area, inspection need to be conducted as soon as possible. The purpose of these inspections is to obtain Findings on the condition of the buildings to determine if they could qualify as substandard buildings per the TIF Redevelopment Statutes. Staff already has previously received authorization to commence these inspections in 2019 but staff has included a specific proposal to get the work completed by LHB and to show the proposed costs totaling $9,800. There is a cost savings in doing multiple inspections ($2,450 for 4, $4,400 for 1). If it is determined that a building is substandard the costs for acquisition and demolition become qualified for reimbursement for a future potential redevelopment TIF District. Statute allows for the district to be created up to 3 years after the findings have been made. The attached memo from Ehler's outlines the process and qualifications in greater detail. The City of Ramsey will likely be required to make an estimated $4M financial contribution to the Ramsey Gateway Project. $2M from the MSA fund and $2M from the PIR fund has already been budgeted. Obtaining ownership of parcels in the potential TIF District could be an efficient use of the City contribution and potential redevelopment efforts. Staff is asking the EDA to consider making a recommendation to the City Council to allocate funds for the purpose of acquisition and demolition if they are available and eligible contribution / TIF expenses. The recommendation would be conceptual in nature and not have a specific dollar amount. Notification: Notification is not required. Observations/Alternatives: