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<br />Economic Development Coordinator Sullivan reviewed that the EDA budget is funded through <br />two sources: 1) proceeds from the sale of City /ED A owned property and 2) the EDA Levy. It is <br />important for the EDA to have the ability to make purchases of property, sometimes on short <br />notice, so that it is able to assemble properties in a timely manner for redevelopment. <br />Additionally, it is also important to have adequate funding in order to utilize consulting tools for <br />development and redevelopment. Mr. Sullivan indicated the 2006 adopted budget is included in <br />the EDA's packet for review. It is anticipated that the EDA will be involved in purchasing the <br />KIH parcel in Gateway North Industrial Park in 2006. The proposed 2007 budget uses the <br />maximum EDA levy. There are no levy limits this year. The EDA levy allows for 0.01813% of <br />the taxable market value to be utilized. The EDA levy funds could be spent on items such as <br />vacant land purchases, monument signs and other economic development activities. Mr. <br />Sullivan advised it is the opinion of staff that the increase in the levy could be utilized to <br />purchase and redevelop more properties in the City of Ramsey. The success of the Community <br />Revitalization project and the positive public perception makes the choice to continue EDA <br />involvement a very rational move. In order to address future needs for land acquisition and <br />participate actively in future economic and redevelopment opportunities, it would be prudent for <br />the EDA to seek continued funding and to recommend to City Council to levy the amount of <br />$393,375 utilizing the EDA levy. <br /> <br />Chairperson Riley noted the impact of the proposed 2007 maximum levy would be very similar <br />to the impact of the 2006 levy, as the difference is due to the market value increase. <br /> <br />Member Strommen asked how much of the $256,000 budgeted for land acquisition in the 2006 <br />budget has been spent. Economic Development Coordinator Sullivan replied this fund is <br />earmarked for the KIH parcel. <br /> <br />Member Strommen requested clarification that the full 2007 allocation for land acquisition will <br />be available with no target currently determined. Economic Development Coordinator Sullivan <br />replied no parcels have been identified yet. There were a number of parcels debated to be added <br />to a condemnation list. These funds could be utilized if the properties become available. <br /> <br />Chairperson Riley noted the large increase in personnel and utilities expenditures from the 2006 <br />adopted budget to the 2007 proposed budget. Economic Development Coordinator Sullivan <br />explained the Finance Director allocates these expenditures for budget purposes. Member <br />Strommen suggested staff provide the EDA with a follow up explanation regarding personnel <br />and utility allocations as proposed in the budget. <br /> <br />Member Kiefer inquired about the legal fees included in the 2007 proposed budget. Economic <br />Development Coordinator Sullivan replied this would relate to legal services tied to the EDA, <br />and could be associated with the TIP development agreement and condemnations. <br /> <br />Chairperson Riley inquired about the budgeted expenditure to ProSource Consulting. Economic <br />Development Coordinator Sullivan replied ProSource Consulting has been used in the past for <br />services such as appraisals, environmental phase 1 and 2' s, and coordinating the clean up of the <br />St. Paul Terminal site. <br /> <br />Economic Development Authority/September 7, 2006 <br />Page 2 of 7 <br />