Agenda - Council - 08/25/2026 - Laserfiche WebLink

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Following discussion, the Council reached consensus to direct staff to examine stronger responsible -bidder provisions that address prior wage theft, payroll fraud, and similar contractor or subcontractor violations. 2.02: Consider Support of Gap Assistance (Loan) for ARAA Sports Facility Project City Administrator Hagen introduced the revised financing structure for the Anoka Ramsey Athletic Association Sports Facility project. He explained that the City's bond attorney determined Ramsey could not legally enter the previously proposed mortgage assumption agreement, so PSD would instead assume that responsibility, subject to bank approval. The remaining issue concerned the City's proposed HRA loan and PSD's request that any outstanding balance be forgiven if ARAA became financially unable to operate the facility and PSD was required to assume the mortgage. City Administrator Hagen explained that HRA funds could legally be provided directly to the eligible economic development project, making forgiveness permissible under those limited circumstances. However, the City would lose future loan repayments that could otherwise support other qualifying projects. Councilmember Peters asked whether the City's bond attorney had reviewed the revised financing structure and whether the City could legally forgive the remaining HRA loan balance if necessary. City Administrator Hagen confirmed that the arrangement was considered permissible. He explained that Anoka County would first approve the project as an eligible use of HRA funds before providing the money to Ramsey. Loan repayments would remain with the City for future eligible HRA purposes within the established development district. He reiterated that the proposed financing structure had been reviewed and was considered workable. Councilmember Specht supported the proposal and emphasized the Council's interest in seeing the sports facility completed. Mr. Cooper explained that ARAA remained confident in the project's viability and viewed the requested loan -forgiveness provision as a financing safeguard rather than an anticipated outcome. A PSD representative emphasized the company's substantial financial commitment, including approximately $750,000 in initial funding and the potential assumption of approximately $9 million in debt, as evidence of confidence in the project. The PSD representative also described the facility's potential economic benefits, including increased demand for hotels, restaurants, retail businesses, and other development associated with tournaments and visitors. He reported preliminary interest from another hotel operator and a major retail user. He compared the project's potential impact on a smaller scale to that of the sports complex in Blaine. He noted that if PSD ultimately acquired the property, it would become taxable, potentially offsetting some of the City's lost HRA loan repayments through future property tax revenue. He also expressed confidence in the project's current professional team and indicated that he would assist ARAA during construction. City Council Work Session / August 10, 2026 Page 4of5