Resolution - #06-05-155 - 05/09/2006

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Councilmember Elvig introduced the following resolution and moved for its adoption: RESOLUTION #06-05-155 RESOLUTION APPROVING AN INTERFUND LOAN FROM THE FUND OF THE EQUIPMENT REVOLVING FUND IN THE AMOUNT OF $2.25 MILLION FOR INTERIM FINANCING OF THE RAMSEY CROSSINGS PROJECT WHEREAS, the City has entered into eminent domain proceedings with several parcels west of Armstrong Boulevard; and WHEREAS, this project area has been termed "Ramsey Crossings"; and WHEREAS, an RFP has been prepared to acquire a prospective developer of said area; and WHEREAS, the RFP states that the developer will be required to pay all soft costs associated with the project such as legal, appraisals, etc; that the City has incurred; and WHEREAS, the amount of these soft costs could approach $2.25 million which is an estimated fifteen percent of the total appraised acquisition costs; and WHEREAS, the chosen developer would need to reimburse the City back all soft costs with an additional 4.5% interest before December 31, 2006; and WHEREAS, interim financing for the incurred fees would be financed with an internal loan from the Equipment Revolving Fund whose fund will be reimbursed in full plus the additional 4.5% interest by December 31, 2006. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: 1) That the Ramsey City Council hereby approves the loan from the Equipment Revolving Fund in the amount of $2.25 million for the interim financing of the Ramsey Crossings Project with the understanding that this fund will be reimbursed by December 31, 2006. The motion for adoption of the foregoing resolution was duly seconded by Councilmember Jeffrey, and upon vote being taken thereon, the following voted in favor thereof: Mayor Gamec Councilmember Elvig Councilmember Jeffrey Councilmember Olson Councilmember Pearson Councilmember Strommen