Minutes - Council Work Session - 01/30/2007

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the City proposed two pieces of legislation, one initiative proposed to create a mixed~use TIF District for the "Sunwood and Grand" project in the Ramsey Town Center. The second bill proposed to create a Ramsey Port Authority. The Port Authority legislation was passed, but due to a drafting mistake, was limited to "Sunwood and Grand" area and not the entire City as was intended. In order to be an effective Port Authority, an amendment to the enabling statute will need to be considered by the Legislature. This past July the Council authorized a contract with a lobbyist for an amount not to exceed $5,000 to lobby for the Port Authority to be changed. Staff would like to ensure that the Council wants to proceed with this legislation with the new legislative session. Couneilmember Elvig inquired about the past discussion regarding the Port Authority legislaeion. II Council member Strommen indicated this was discussed at a Finance Committee meeting, but they did not discuss the language of the legislation and what specifically the legislation docs. The major bullet point is that this legislation includes a mandatory City levy versus an optional levy. The discussion the Finance Committee had was that the creation of a Port Authority docs not require the levy. Councilmember Elvig questioned how they can stop this freight train once it starts to roll, and pointed out they do not know exactly what is being looked at for the use of this legislation. Councilmember Strommen noted the Port Authority legislation has been drafted, but it has not been introduced. Community Development Director Trudgeon explained this process was sel in motion from last summer and has carried into this legislative session. Staff would like to ensure with Council whether they would like to proceed with the legislation. Mayor Gamec questioned if there is a set amount that is levied with the Port Authority. Community Development Director Trudgeon indicated the fiscal analysis completed last year from the State Department of Revenue calculated that the proposed levy is estimated to increase the city property tax levy by $360,000 in calendar year 2007. Councilmember Look stated he has discussed this Port Authority legislation with Senator Jungbaucr. What ultimately came out of the purpose for the Port Authority was the ability to levy some of the street and sewer projects, and things of that nature to get the basic infrastructure in for this project. Senator Jungbauer expressed serious concern that the state allows municipalities to carry so much debt, and a Port Authority would therefore give the City the ability to carry additional debt. Council member Look stated he is not a big fan of debt. In questionable economics when heavy debt load is carried the citizens will feel it. There was also an issue of appointed versus elected leadership. With regards to projecls such as ice rinks, the City of Andover has serious issues \....ith the ice rink project they have. Their financial person has indicated the best thing that city could have done was to give the people the land and walk away; it never will cash flow. He hesitates to go out of the state's boundaries for debt, and hesitates from a leadcrship standpoint. He is not convinced about the projects this Port Authority is Cit). Council \Vork Session / .January 30, 2007 Page 9 of 16