Agenda - Economic Development Authority - 05/14/2026

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Economic Development Authority (EDA) Meeting Date: 05/14/2026 Primary Strategic Plan Initiative: Promote economic growth and development. 4. 4. Title: Adopt Resolution #26-109 Initiating Process for Establishment of a Redevelopment Plan Purpose/Background: The purpose of this case is to consider adoption of Resolution #26-109 Initiating Process for Establishment of a Redevelopment Plan. This resolution and subsequent actions by the City Council, Planning Commission and EDA will start and complete the process to allow the City of Ramsey to access HRA funds held by the County to provide a loan to the Anoka Ramsey Athletic Association (ARAA) for construction of a 100,000 square foot indoor athletic facility south of Hwy 10 on land owned by PSD LLC. Establishment of the Redevelopment Plan and Area will allow the City to reallocate the loan payments for HRA eligible costs within the defined area. At this point, those future costs are not identified. PSD has indicated that this project will ultimately lead to investment and economic development by PSD and others in the land adjacent to the facility and have the potential to bring in more restaurants and retailers. The City has been working with ARAA since 2021 on various iterations of an impactful athletic facility and the locations, sizes and types of the structures have evolved over time. Staff is confident that the current proposal, at its current location, is the best iteration of the project to date. ARAA is a non-profit and has provided a valuable service to the Ramsey community since 1979. The provision of financial support for the project would be consistent with the public purpose of the city. Other local businesses have expressed interest in providing financing or assistance to help bring the project to fruition as shown in the proposed financing structure. The City Council has met at multiple work sessions to review the proposed project and to direct staff to identify viable funding sources from the cit and others to fill the financing gap. The City Council met most recently at the April28, 2026, work session and reached consensus, not approval, on the structure of this deal and level of city participation. The current financial structure is a combination of traditional bank financing, a City HRA loan, Loans by others, and cash and equity by ARAA (see attached). Formal City Council and EDA approvals will be needed which will include public hearings and additional meetings A proposed schedule to create the mechanism to unlock this funding source for the city is attached. In addition to items on this schedule, a Resolution will need to be adopted by the City Council to request the HRA funds from Anoka County in an amount not to exceed $2.3 Million. Redevelopment Plan / Area Process In order to access HRA funds for the purpose of providing an HRA loan to ARAA, a Revelopment Plan and Area needs to be created. The proposed Redevelopment Area Map includes the current site of the ARAA project and a larger area in which potential eligible redevelopment and economic development activities can be financed with receipted loan payments from ARAA. TAFT Law has put together a detailed schedule outlining each step in this process and which City Board or Commission is responsible for starting with the Ramsey EDA. The process is intricate and time extensive and will cost somewhere between $20-$35,000. The first $10,000 will be paid for by ARAA and the rest by the HRA fund once it is released by Anoka County. Ultimately the HRA loan will be issued from the EDA to ARAA. Finance / CorTrust Bank After an exhaustive search for feasible financing, ARAA has chosen to work with CorTrust Bank for the traditional bank financing component. Staff is comfortable with this selection and the City HRA loan is proposed to be in second position, ahead of other funds with the real estate as collateral. Before issuing an HRA loan to ARAA, a Credit memo will be provided by CorTrust Bank or others to ensure the repayment ability of the HRA