Agenda - Economic Development Authority - 09/06/2007

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CASE # 1 2008 EDA BUDGET By: Sean M. Sullivan, Economic Development Coordinator Background: On November 28, 1998 the City Council approved a resolution creating an Economic Development Authority (EDA) in the City of Ramsey. The resolution gives all the statutory powers of an EDA and Housing and Redevelopment Authority (BRA) to the Ramsey EDA. The EDA budget is funded primarily through two sources: 1) proceeds from the sale of City IEDA owned property and 2) the EDA Levy. It is important for the EDA to have the ability to make purchases of property, sometimes on short notice, so that it able to assemble properties in a timely manner for redevelopment. Additionally, it is also important to have adequate funding in order to utilize consulting tools for development and redevelopment. The enabling resolution adopted in 1998 requires that all recommendations by the EDA be sent to the City Council for approval before any action is taken. Observations: The 2007 adopted budget is attached. (See attached line item budget) It is anticipated that the EDA will be involved in purchasing the KIH parcel in Gateway North Industrial Park in 2008. The proposed 2008 budget uses the same dollar amount levied last year with no inflationary increases. This year is the same as last year, in the fact that there are no levy limits imposed on cities. The EDA levy allows for 0.01813% (see proposed levy below) of the taxable market value to be utilized. EDA levy funds could be spent on items such as vacant land purchases, monument signs and other economic development activities. The success of the Community Revitalization project and the positive public perception makes the choice to continue EDA involvement a very rational move. Lev b EDA Pendin A Council 950/0 of Max. Le 2,295,337,600 0.01813% $416,145 $393,375 $ 0.000181 $ 25.70 $ 34.27 Funding Source: Ramsey Tax Levy 10