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fzc. <br /> <br />INTERFUND LOAN FOR RAMSEY CROSSINGS PROJECT <br /> By: James Nonnark City Administrator <br /> Diana Lund, Finance Officer <br /> <br />Background: <br />The City has entered into eminent domain proceedings with the parcels west of <br />Armstrong Boulevard. This project has been termed "Ramsey Crossings". At the time of <br />writing this case, the City is currently accepting RFP's for the development of Ramsey <br />Crossings, with a closing date of Friday, May 5. <br />Included in the language of the RFP, it states that the chosen developer will be <br />responsible for ail costs associated with the project. That would include any of the fees <br />that the City has incurred to date such as appraisal fees, legal fees, etc. These fees are <br />otherwise knowu as soft costs. The mount of these soft costs, as reflected in the RFP, <br />total approximately 2.25 million. This figure represents an estimated 15% of the total <br />appraised acquisition costs. <br /> As the City needs to front these soft costs until a developer is chosen, a funding source <br /> needs to be determined. It is being recommended that the interim funding source be an <br /> internal loan from the Equipment Revolving Fund which allows the loaning of funds, and <br /> which has a fund balance of approximately four million. The developer would need to <br /> reimburse this fund for all costs incurred plus an additional rote of 4.5% for interest. It is <br /> stated in the RFP, and for year-end reporting purposes, that all costs incurred by the City <br /> will be reimbursed by the developer by December 31, 2006. <br /> <br /> Recommendation: <br /> Staff recommends that $2.25 million be internally loaned fi.om the Equipment Revolving <br /> Fund to cover the soft costs incurred by the City on the Ramsey Crossings Project until a <br /> developer is chosen. All expenses incurred, plus an additional interest rate of 4.5%, will <br /> be paid back to the Equipment Revolving Fund by December 31, 2006, by chosen <br /> developer. <br /> <br />Committee Action: <br />Motion to recommend City Council to adopt Resolution #06-05-XXX authoriz/ng the <br />internal loan of $2.25 million from the Equipment Revolving Fund for the Ramsey <br />Crossings project with the understanding that all fees plus 4.5% interest will be paid back <br />to the fund by December 31, 2006. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br /> <br />-251- <br /> <br /> <br />