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HRA BUSINESS Case #1: 2006 HRA Budget and 2006 Payable HRA Levy Finance Officer Lund indicated before the HRA is the proposed 2006 Budget and 2006 Payable HRA Levy. She explained when the HRA was established, it was determined that an HRA was needed in the City of Ramsey to assist in the redevelopment of substandard, blighted areas and to create safe and decent dwellings for low and moderate income persons and families. F or the HRA to carry out these needs, a funding source needs to be established that will allow for these activities to occur. She advised the HRA budget could be funded through the issuance of a property tax levy. Like the EDA, the HRA is allowed to pass a levy on the taxable market value in the City. For year 2006, the HRA would be allowed to pass a total levy of $271,339, which represents .0144% ofthe City's total taxable market value of$1,884,300. Finance Officer Lund advised as year 2006 is the first complete year of the City having an HRA, probable expenditures will consist of staff time, consulting services, the possibility of the purchase/purchases of redevelopment property, and obtaining a balance in the HRA account. She advised if the HRA approves the maximum levy it will be part of the Finance Committee Case that goes before the Council tonight. Commissioner Gamec stated at one time he was considering reducing this levy, but the fund needs to be built up to deal with some of the housing issues the City has coming up. Motion by Commissioner Gamec, seconded by Commissioner Olson, to adopt Resolution #HRA-05-09-003 establishing a HRA levy payable in 2006. Motion carried. Voting Yes: Chairperson Strommen, Commissioners Gamec, Olson, Cook, Elvig, Jeffrey, and Pearson. Voting No: None. Case #2: Acquisition of Highway #10 Adjacent Properties Finance Officer Lund explained that in order to expedite the acquisitions in the Highway #10 Official Mapping project so that property sales do not go to other buyers, staff proposes to initiate a program of property acquisitions along Highway #10 that may be eligible for RALF funding at some future date. Staff proposes to begin this process by acquiring the former NAU building and Anchor's Away building located on Lots 2 and 3, Block 1, of the Deal Industrial Park. Financing of the buildings would be performed through lease revenue bonds. This would be done in the same manner as the Municipal Center, but would be issued through the HRA rather than the EDA. The redevelopment plan that is before the HRA tonight is the preliminary step in this process. To continue in this process the HRA must adopt the redevelopment plan and the Council must approve the redevelopment project area and set the public hearing date. Commissioner Gamec questioned how the City can be certain that the RALF monies will be available when they decide to sell this property. Housing and Redevelopment Authority / September 13, 2005 Page 2 of 6