Resolution - #09-06-005 - HRA - 06/09/2009

Home

Commissioner Look introduced the following resolution and moved for its adoption: RESOLUTION HRA #09-06-005 RESOLUTION AUTHORIZING AN APPLICATION TO ANOKA COUNTY FOR THE ABATEMENT OF SPECIAL ASSESMENTS LEVIED AGAINST THE PROPERTY IN RAMSEY TOWN CENTER THAT THE HRA IS ACQUIRING FROM MINNWEST BAN~ CENTRAL WHEREAS, the Ramsey Housing and Redevelopment Authority (the "HRA") entered into a Settlement Agreement between Minnwest Bank Central ("Minnwest"), the City of Ramsey (the "City") and the. HRA dated March 19, 2009 (the "Settlement Agreement") and a related Purchase Agreement between Minnwest Bank Central and the HRA also dated March 19, 2009 (the "Purchase Agreement"); and WHEREAS, the Purchase Agreement provides for the HRA's purchase of the real property legally described on Exhibit A of the Purchase Agreement (the "Property"), _ and the HRA anticipates closing on the purchase of the Property on or about June 26, 2009 and thereafter recording the deed from Minnwest to the HRA; and WHEREAS, the City has levied various special assessments against the Property. The special assessments were certified for payment with the real estate taxes due and payable in 2008 but were not paid when due. The total amounts of the special assessment currently due and payable with respect to the various tax parcels that make up the Property, together with the interest and penalties that have accrued as a result of prior owners failure to pay the special assessments when due, are set forth on the attached Exhibit B (the "Special Assessments"). Absent an abatement of the Special Assessments, the HRA would have to pay the Special Assessments, in full, on or before the Anoka County Recorder could record the deed conveying the Property from Minnwest to the HRA and the County would thereafter remit the Special Assessment payment to the City. Absent an abatement of the Special Assessments, the HRA would have to borrow the amounts necessary to pay the Special Assessments from the City; and WHEREAS, Minnesota Statutes Section 375.192 authorizes Anoka County to abate the Special Assessments as the board deems just and equitable upon written application of the owner and with the approval of the City; and WHEREAS, the HRA and the City have determined that rather than have the City lend the funds necessary to pay the Special Assessments to the HRA, the HRA pay the Special Assessments to the County and the County remit the Special Assessments to the City, the HRA would apply for and the City would approve an abatement of the Special Assessments; and WHEREAS it is the intention of the HRA and the City that the HRA will reimburse the City for the amount of the abated Special Assessments from the proceeds the.City receives when it later sells the Property; RESOLUTION #09-06-005 Page 1 of5 2362228v2