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CASE #1 TITLE: ACCAP TOWN CENTER APARTMENT PROJECT BY: Sylvia Frolik, HRA Executive Director INTRODUCTION: On May 9, 2006, the Ramsey HRA and the City Council authorized City Staff to submit a request to the Anoka County Housing and Redevelopment Authority (ACHRA) to allocate $400,000 of Ramsey's County HRA levies towards the proposed ACCAP apartment project in Town Center. On June 27, 2006, the ACHRA approved the request for funds. DISCUSSION POINTS: ACCAP has control of the purchase option for the apartment project site in Town Center and they will be partnering with J.Johnson, Inc. to develop the site. It is prudent that the purchase option be exercised as soon as possible and City Staff has contacted ACHRA regarding the disbursement of funds in the amount of $270,000 for the land acquisition. On October 24, 2006, the HRAlCity Council approved the proposed Grant Agreement with Anoka County for the initial $270,000.00. The City must also enter into a Loan Agreement with ACCAP and J.Johnson, Inc. to identify the terms under which the City will transfer the funds to ACCAP for the purchase of the site. At the date of this writing, the draft Loan Agreement is not complete. Staff is hopeful that there will be a draft agreement by Monday, November 13 that will be forwarded to the HRAlCity Council as soon as possible to allow review time prior to the meeting on November 14. Again, the County will not be releasing any funds until all elements of the project are in place and there is a closing date scheduled. ATTACHMENTS: None. STAFF RECOMMENDATION: None. BOARD ACTION: Recommend Council authorization to enter into the Loan Agreement. REVIEWED BY: City Administrator HRA: 11/14/06