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AUTHORIZATION TO ENTER INTO A LOAN AGREEMENT WITH ANOKA <br />• COUNTY COMMUNITY ACTION PROGRAM (ACCAP) FOR THE RAMSEY TOWN <br />CENTER APARTMENT PROJECT; CASE OF CITY OF RAMSEY <br />By: Sylvia Frolik, Executive Director/Housing & Redevelopment Authority <br />• <br />• <br />Background: <br />On May 9, 2006, the Ramsey HRA and the City Council authorized City Staff to submit a <br />request to the Anoka County HRA ( ACHRA) to allocate $400,000 of Ramsey's County HRA <br />levies towards the proposed ACCAP apartment project in Town Center. On June 27, 2006, the <br />ACHRA approved the request for funds. <br />Observations: <br />CASE # 7 <br />ACCAP has control of the purchase option for the apartment project site in Town Center and <br />they will be partnering with J Johnson, Inc. to develop the site. It is prudent that the purchase <br />option be exercised as soon as possible and City Staff has contacted ACHRA regarding the <br />disbursement of funds in the amount of $270,000 for the land acquisition. On October 24, 2006, <br />the HRA /City Council approved the proposed Grant Agreement with Anoka County for the <br />initial $270,000.00. <br />The City must also enter into a Loan Agreement with ACCAP and J.Johnson, Inc. to identify the <br />terms under which the City will transfer the funds to ACCAP for the purchase of the site. At the <br />date of this writing, the draft Loan Agreement is not complete. Staff is hopeful that there will be <br />a draft agreement by Monday, November 13 that will be forwarded to the City Council as soon <br />as possible to allow review time prior to the meeting on November 14. Again, the County will <br />not be releasing any funds until all elements of the project are in place and there is a closing date <br />scheduled. <br />Recommendation: <br />City Staff is recommending City Council authorization to execute the Loan Agreement with <br />AACAP. <br />Council Action: <br />Motion to authorize the Mayor and the City Administrator to execute the Loan Agreement with <br />Anoka County HRA for the property acquisition funds for the ACCAP Apartment site in Town <br />Center. <br />Review Checklist: <br />City Administrator <br />CC: 11/14/06 <br />Copies To: <br />City Attorney <br />