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Home My WebLink About4.f. Programming 1998 Community Development Block Grant Funds City of Rosemount ~ Executive Summary for Action City Council Meeting Date: JUNE 20 1995 Agenda Item: Programming 1998 Community Agenda Section: Development Block Grant Funds Conseat Prepared By: Ron Wasmund Agenda No: Community Development �'�� Director Attachments: Resolution, Port Authority Approved By: packet inf o. � � �� ._�.�� As you are aware the City Council and the Port Authority entered into Development and Cooperation agreements with Dakota County HRA in January 1994 for the development of senior housing on Cameo Ave. I, Our committed role in this project is to acquire the necessary sites and relocate the affected tenants. To do this we programmed all CDBG funds from 1992, 1994 , 1996, and excess tax increment funds . We have determined that due to the slow progress of redevelopment within the tax increment district we have not generated the level of increment originally anticipated. Therefore we do not have increment to pledge to this project. This situation has been discussed with the HRA. We have cooperatively decided to program 1998 CDBG funds to this effort. At their regular meeting of March 7, 1995 the Port Authority passed a motion recommending that the 1998 CDBG funds be programmed. Correspondence to that effect was forwarded to Dakota County HRA. They have identified a need for a resolution from council supporting this use of CDBG funds. A resolution for that action is attached. I have also attached information from the March 7th Port Authority meeting for your review. Recommended Action: Motion adopting Resolution 1995 - Authorizing the programming of 1998 Community Development Block Grant money to the acquisition and relocation for the Cameo site senior housing project . City Council Action: r CITY OF ROSEMOUNT DAKOTA COUNTY, 1VIINNESOTA RESOLUTION 1995 - AUTHORIZING THE PROGP��;NIlViING OF THE 1998 COMMiJ1vITY DEVELOPMENT BLOCK GRANT MONEY TO THE GRANT MONEY TO THE ACQUISITION AND RELOCATION FOR THE CAMEO SITE SF.NIOR HOUSING PROJECT WHEREAS, the Rosemount Port Authority entered into Development and Cooperaxion agreements with the Dakota County Housing Redevelopment Authority for construction of a senior housing development, and W�iEREAS, the Rosemount Port Authority, through these agreements committed to acquiring the necessary properties and relocating the tenants residing in the acquired properties, and WHEREAS, the Rosemount Port Authority was budgeting its 1992, 1994, and 1996 Community Development Block Grants along with excess tax increment proceeds to fund this acquisition and relocation activity, and WHEREAS, the Rosemount Port Authority has discovered they have no excess tax increment, and WHEREAS, the lack of tax increment to pledge to the senior project impedes the ability to complete the necessary acquisition and relocation, discussions were held with the Dakota County Housing Redevelopment Authority, and WI�REAS, it was identif'ied and mutually agreed that the Rosemount Port Authority could commit its 1998 Community Development Block Grant proceeds to this project. T'HEREFORE BE IT RESOLVED that the Rosemount Port Authority does hereby commit its 1998 Community Development Block Grant proceeds to the Dakota County Housing Redevelopment Authority for senior housing development at the Cameo site. ADOPTED this 20th day of June, 1995. ATTEST: E.B. McMenomy, Mayor Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted Against: -� CITY OF ROS�IOIINT gXECIITIyE SUb�A'RY FOR ACTION PORT AUTHORITY MEETING DATE: MARCX 7, 1995 AGENDA ITEM: PROJECT FINANCING UPDATE ��BUSINESSON. PRSPARED BY: RON WASMUND, AGr.'�DA NO. COMMUNI'I"I DEVELOPMENT DIRECTOR 7. B• ATTAC�'"�7TS: NONE APP?ZOVED BY: In February 1994, the Port Authority entered into a Cooperation and Devetopment Agre�ment with Dakota Counry HRA for the development of a seaior housin, proje�t to be located on the west side of Cameo Ave. betwesn 146th and Lower 147th streets. This a�eement identifies the responsibility of land acquisition and tenant relocation as the responsibility of the port authority. To accomplish the acquisition/relocation, the community development block D ant (CDBG) funds which the port authority receives in even years were pro?rammed to this project. That action committed repro;rammed funds from 1992, as well as all funds for the years of 1994 and 1996. Each fundin� year we rec�ive approximately $150,000. It has been estimated by the HRA that the CDBG funds would cover the acquisitions of the six properties necessary for the proje�t. The relocauon payments would be covered by payments from the port of$56,000 in each of the yeazs 1995, 1996, 1997. It was expected at the time ot esecution of the agreement that these payments would come from excess ta:� increment funds. As we discussed at the January 21st meetin�, there are no excess increment funds. Staff has met with the ARA to discuss our situation and determine a plan of action. Of the optians discussed the most plausible one seemed to be the commitment of our 1998 CDBG funds to cover the relocation expeases. If you agree with this commitment the HRA would procerd with the necessary action usin� intemal funds they have available. We will issue them a letter committin� our 1998 CDBG funds as repayment of the funds they expend. Both parties are expecting to receive sufficient funds in 1998 to cover our obli�ation. This keeps the commitment we made through execution of Cooperation and Development Agreement. It also keeps us consistent wirh the actions of other cities in Dakota County that have done senior projects with the HR�. The HRA is supportive of this solution. Staff recommends approval of this solution and re�ommends a motion pro;rammin� the ciry's entitlement of 1998 Community Development Block Grant funds to the relocation expenses associated with site acquisition for the development of senior housing. Incidently the HRA has received executed purchase agreements for three properties. They include the land under the old Baptist Church (the structure will be moved to a new site by others), the duplex on the corner of Cameo and Lower 147th, and Pat McMenomy's home on the corner of Cameo and 146th St. The next properry to be acquired wiil be that of Jim Caziisle on Cameo. Mr. and �Irs. Cariisle are willin; sellers. Your approval of this item will allow the HRA to proceed with this acquisirion. They will then proceed with relocarion and demolition of the residential structures. RECO�DED ACTION: Motion approving the use of 1998 CDBG funds for the senior project and directing staff to prepare the necessary correspondence with the Dakota County I3RA. PORT AIITSORITY ACTION: ROS�I�IOL�'i�t'T PORT AUI�iORITY PR4CEEDINGS REGZTLA.R 1�ETING 1VIAItCH 7, 1995 Pursuant to due call and notice thereof a re�ular m�ting of the Rosemount Port Authority was duly held on Tuesday, March 7, 1995, at 5:15 p.m. in the council chambers at City Hall, 2875 - 145th Street West, Rosemount. Chair Carroll called the meeting to order with Commissioners Anderson, Busho, Edwards, Miller, and Wippezmann present. Commissioner Moser was absent. Staff present included Execurive Director Burt, Communiry Development Director Wasmund, Senior Planner Mac:c, and Ie�al counsel, Chazlie LeFevere. E.Yecutive Director Burt requested that "Rosemount iYlall Funding Request" be added to the agenda. Chair Carroll placed it as the first discussion item under new business (7.A.). NIOTION by Wippermann to approve the consent a�enda as presented. SECON`D by Busho. Ayes: 6. Nays: 0. Community Development Director Wasmund apprised the board on the status of the business pazk RFQ process. Wasmund e:cplained that �iark Ruff of Publicorp has contacterl the developers that were mailed RFQs and was informed that all but two are still planning to respond. Staff has again mailed the RFQs to those tha.t indicated the;� will be responding, extending the deadline to March 17, 1995. Wasmund advised that this moves the ori�inna.l timeline forward by approximately one month. Community Development Director Wasmund reviewed staff correspondence re�arding Rosemount 11�iall's request for �1.3 million fundin�. The funding would allow them to make leasehold and code improvements to the mall to bring it up to a marketable sta.ndard, and to refinance their cunent mort�a�e debt. 'The owners are also requesting that the port authoriry owned lots on Burma Avenue be provided to them for $1.00 per year to create a parking lot desiQnated for students of the alternative learning center. Rlasmund further e.cplained that they are asking that tax increment generated by the project be placed in a reserve for the bond payments to prote�t the bond holders. It is estimated that a total of$130,000 of increment would be generated over the remainin� five years of the district. In retum for the $1.3 million the port authority would have a first mort�age against the property on a non-recourse basis. Commissioners discussed the parkin� issue and were advised by Community Development Director Wasmund that the pazking use for the lots on Burma Avenue was consideretl an interim use. Commissioners voiced concems regardi.n� students crossing over private property to get to Highway 3, the actual crossin� of Highway 3, questioned what improvements would need to be made for that crossing, and what arrangements will be made to enforce the designated parking plan. Nir. Keith Witter, general partner of FFP Investment Advisors who are owners of the mall, was allowed to address the board. NIr. Rlitter explained that the school district would like to expand their space in the mall to approximateiy 14,000 square feet to accommadate 200 students, up from the 80 students currently enrolled in the ALC prograrn. The school district staff has also been charged with providing the ALC students with facilities equal to those that students are provided on the re�ulaz campus. bir. Witter adviseri that school district officials e:cpect the mall owners to do all leasehold improvements. He also explained that their continual battle with code issues makes it difficult to rent some vf the other space in the mall. ... ROSEiV10UNT PORT AUTS4RITY P1�OCFEDINGS REGiTLAR iV�E'TIlVG 1VIARCH 7, 1995 Commissioners voiced additionai concerns regarding the value of the mall after improvements and whether the amount of the mortgage would be greater than the vaiue of the building. Mr. Witter commented that in today's environment, the mall is suited only for office orientated businesses and will never be a retail. center. StafF sugaested that the mall owners der�osit the required �2,500 per PA-1, Tax Increment Financing Admuustrative Fees Policy, for consultant e:cpenses to conti.nue studying the proposal. Commisioners deferred the item to staff for further study. 5enior Planner Mack presented the draft "'ITF Policy" and advised that staff has identified a number of legal and policy issues which should be reviewed by legal counsei. Mack requested that commissioners advise of any general concems they may have regazding the policy. Chair Carroll advised Mack that he would like to work with him to "clean-up" some of the wording in the policy. M01'ION by F.siwards to approve the use of 1998 CDBG funds for the senior project and direct staff to prepaze the necessary correspondence with the Dakota. County HRA. SECOND by Wippermann. Ayes: Anderson, Wippermann, Carroll, Busho, Edwards, 11�Siller. Nays: 0. � M01'ION by Carroll to table item 7.D., Real Estate Expo and defer to the ne:ct meeting. ' SECOND by Edwards• Ayes: 6. Nays: 0. Chair Carroll referred to the Carison Redevelopment Agreement and advised that the amendment to include the city council along with the port authority in the conflict of interest paragraph on pa�e 23 had not been inserted. 1�IOTION by Edwards to adjourn. S�COYD by Wippermann. Ayes: 6. Nays: 0. Meetin� adjoumed at 7:30 p.m. Respectfully submitteri, Deborah Widstrom Recording Secretary 2 �