12/01/03 - Laserfiche WebLink

Home

EDA BUSINESS Case #1: CDBG Opportunity Jeff Warner, Counselor Realty, was present representing Bruce Volk (B & A Cylinder). Economic Development/TIF Specialist Sullivan informed the EDA that the City received $220,000 in Community Development Block Grant (CDBG) funds for 2003. The funds were used to assist in the redevelopment of the older areas of Gateway North Industrial Park Plat 2. The properties focused on were the Chies and Morrell properties. Both properties have been acquired, but the improvements needed to make them marketable have not been completed. Mr. Sullivan explained that the improvements are being funded through Tax Increment Financing (TIF) District No. 2. The funding cycle for 2004 CDBG funds is coming up so it's a good time to address redevelopment needs throughout the City. He identified B & A Cylinder, Robert Debee and KIH Erecting as parcels that are in need of redevelopment. The funds could be used for acquisition costs. It is staff s opinion that acquiring these properties would remove existing blight and complement the Town Center project. The acquisition of the B & A Cylinder property would allow for the City to close an access to Ramsey Boulevard, reserve land for the possible future Highway #10 interchange, and to possibly induce the construction of a 30,000 square foot project on the remaining land. The Debee and KIH parcels will be redeveloped with the potential of two, 25,000 square foot projects. Mr. Sullivan reported that City staff has completed a feasibility study of the possibility of creating a redevelopment TIF district area, and the study shows positive results. Numbers were presented relating to revenues, expenditures, possible revenue sources and amounts, etc. Expenses such as sewer, water, storm sewer, roads, etc. were talked about. Mr. Sullivan added that he is presenting the "worst case scenario" - for example - sewer and water may not come in until 2007 - he is showing numbers as if it all happens in 2005. Mr. Sullivan reiterated that the area being discussed is in need of redevelopment; however, it does not necessarily have to be done by creating a TIF District. Member Steffen did not see a reason to not apply for the grant. Motion by Member Kurak, seconded by Member Kiefer to express support for and recommend Council apply to Anoka County for CDBG funds to continue the redevelopment effort in the area south of the AEC Energy Park. Motion carried. Voting Yes: Chairperson Riley, Members Kurak, Kiefer, Gromberg, LeTourneau, and Steffen. Voting No: None. Associate Planner Wald informed the EDA that they would be kept apprised of what is happening with regard to the grant and the redevelopment. Mr. Warner stated that Bruce Volk (B & A Cylinder) is interested in what's going on and asked to be kept abreast of what is happening.