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TITLE: CASE # CONSIDER APPROVAL OF REDEVELOPMENT PROJECT AREA AND PLAN FOR ACQUISITION OF HIGHWAY #10 ADJACENT PROPERTIES By: City Administrator, James E. Norman, Finance Officer Diana Lurid HRA Executive Director Sylvia Frolik INTRODUCTION: As part of the Official Mapping Process of the Highway 10 Interchange Project, the City has been aggressively pursuing the acquisition of properties on the north side of Highway 10. The current acquisition of properties has been made through the availability of the Right-of-Way Acquisition Loan Fund (RALF) Program. The City has closed on a total of five properties (the last being the NAU building) with the use of RALF funds. As the RALF program has a limited amount of dollars that can be spent each year, the City has looked at other financing mechanisms that would allow the City to acquire additional properties on Highway 10. RALF funds c6uld possibly reimburse the costs of these properties at a later date as funding becomes available. The current property that is being proposed for purchase is the Anchor's Away building located on Lot 3, Block 1 of the Deal Industrial Park. The proposed purchase price of $1.7 million would be financed with a Lease Revenue Bond issued by the City's Housing and Redevelopment Authority (HRA) with the debt service schedule designed around the collection of monthly lease payments. DISCUSSION POINTS For the HRA to issue a lease revenue bond on behalf of the City, a Redevelopment plan and the establishment of the redevelopment project area needs to be adopted per State Statutes, Sections 469.001 through 469.047(Housing and Redevelopment Authority Act) which grants municipalities the authority to .designate redevelopment areas within the boundaries of the municipalities. Within these areas, the municipality may adopt a redevelopment plan and establish a project consistent with the municipality's public purpose. These are the same Statutes that the City just followed when a lease revenue bond was issued for the Municipal Center project. To develop a redevelopment plan for the Highway 10 Interchange project, the City and the HRA must make the following findings: 1. The land in the redevelopment area would not be available for redevelopment without the financial aid sought. The redevelopment plan for the redevelopment area in the City will afford maximum opportunity consistent with the needs of the locality as a whole, for the redevelopment of the area by private enterprise.