Agenda - Economic Development Authority - 03/10/2022

Home

MEMORANDUM TO: FROM: DATE: SUBJECT: Sean Sullivan, Economic Development Manager Jason Aarsvold and Stacie Kvilvang - Ehlers March 3, 2022 Sunfish - Tungsten Redevelopment Area ...EHLERS is, PUBLIC FINANCE ADVISORS The City is currently contemplating redevelopment along Highway 10 between Sunfish Lake Blvd. and Tungsten St. N.W. This area is depicted on the map provided by the City and attached to this memorandum. The current working assumption is that some of these properties may be acquired by Anoka County in connection with planned improvements along Highway 10. Once acquired, the County plans to demolish the buildings first, and then may consider selling the vacant parcels to the City of Ramsey. You requested that we outline a process by which you can accomplish your eventual redevelopment objectives which would include: (1) Preserving your ability to create one or more Redevelopment Tax increment Financing (TIF) Districts, and; (2) Providing for reimbursement from a future tax increment district, or districts, for any City costs that may be incurred now in acquiring these properties from the County for redevelopment. To qualify an area as a redevelopment TIF district, two basic conditions must be met: (1) Parcels consisting of 70% of the area of the district must be occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures; and (2) More than 50% of the buildings, not including outbuildings, must be structurally substandard to a degree requiring substantial renovation or clearance. To confirm conditions one and two above exist, we recommend hiring a qualified third party to conduct an independent analysis and prepare a report to document the findings. Given that we do not yet know which parcels will be included together in a future TIF district, or districts, we recommend documenting these findings for each individual parcel that will be acquired. Generally, we recommend that you do not demolish buildings and create a TIF district until you have a redevelopment project identified and are ready to move forward. It is our understanding, however, that the planned acquisition from the County may not allow this project to proceed in that manner. If buildings must be removed from an acquired parcel in advance of a potential redevelopment project, the City must document the redevelopment TIF eligibility findings by resolution. This resolution must be adopted prior to demolition and declare that the property is intended to be included within a future TIF district. The City has three (3) years from completion of demolition to include a parcel(s) in a district. The demolition must be done or financed by the City or done by BUILDING COMMUNITIES. IT'S WHAT WE DO. info@ehlers-inc.com \ 1 (800) 552-1171 www.ehlers-inc.com