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<br />FC# I <br /> <br />ADOPT RESOLUTION APPROVING PROPOSED 2008 EDA LEVY <br /> <br />By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />On November 28, 1998 the City Council approved a resolution creating the EDA for the City of Ramsey. The <br />resolution gives all the statutory powers of an Economic Development Authority (EDA) and Housing and <br />Redevelopment Authority (HRA) to the Ramsey EDA. <br /> <br />The EDA budget has been funded primarily through two sources: 1) the HRA/EDA Levy and 2) proceeds from <br />the sale of City/ED A owned property. <br /> <br />As mentioned above, a possible funding mechanism for the EDA is the passing of a levy. The levy is based on <br />the City's taxable market value and for payable 2008, the City would be allowed to levy $416,145. The <br />majority of the levy would be used to purchase properties that are targeted for development/redevelopment and <br />to fund consulting services such as appraisal services attributed to the desired property. The EDA levy is not <br />limited to housing and/or redevelopment, but can be spent on such items as vacant land, monument signs and <br />other economic development related activities. <br /> <br />It is anticipated that the EDA will be involved in purchasing the KIH parcel in Gateway North Industrial Park in <br />2008. Value is approximately $345,000. <br /> <br />At the EDA's monthly meeting on Thursday, September. 6, 2007, the EDA authorized a levy of $393,375. In <br />keeping with the City's other levy adoptions - HRA and General, the $393,375 represents the amount that was <br />adopted in 2007. As this being a non-levy limit year, by levying through the EDA, the EDA levy will be added <br />to the General Fund levy in creating the City's starting levy limit if levy limitations are placed on the City in <br />succeeding years. <br /> <br />The enabling resolution adopted in 1998 requires that all recommendations by the EDA be sent to the City <br />Council for approval before any action is taken. <br /> <br />Recommendation: <br /> <br />Based on the recommendation of the EDA to recommend Council approval of the EDA Levy for payable 2008 <br />in the amount of$393,375. <br /> <br />Committee Action: <br /> <br />Motion to recommend Council Adopt Resolution #07-09-XXX approving the recommendation of the EDA and <br />approve the Proposed EDA Levy for Payable 2008 in the amount of$393,375. <br /> <br />Review Checklist: <br /> <br />Interim City Administrator <br />Finance Officer <br /> <br />FC: 09/11/07 <br /> <br />I <br />