06/01/2023 EDAC Combined Packet - Laserfiche WebLink

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1 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: June 1, 2023 TOPIC: ED Strategic Plan Implementation – Anoka County HRA/EDA Participation BACKGROUND The EDAC has been evaluating funding options to support economic development initiatives including strategic acquisitions of property that further our goals. In March, Karen Skepper, Anoka County Director of Community and Government Relations, and Commissioner Jeff Reinert presented information on the County’s HRA/EDA. The The County HRA/EDA has the authority to levy for economic development purposes. These property taxes would be levied by the County and available to the City for economic development purposes. The County has confirmed, that based on the current tax capacity, a levy rate of .815% would generate an estimated levy of $268,197 annually. The County charges an administrative fee of 20% ($53,000) leaving approximately $215,000 available for local use. Although it is an option, the staff’s opinion is that the City would be better served by alternative funding methods. A preferred option would be to establish a policy to use internal funds for strategic acquisitions as opportunities present themselves. This would be in the form of an interfund loan, paid back at the time of development/construction. The repayment source could be either land sale proceeds, tax increment financing proceeds, utility funds, if a sewer or water project, or state aid street funds if a road improvement. Under this alternative, staff envisions a policy document that identifies potential acquisitions, updated annually, for consideration. If sites become available, we would have a mechanism in place to be more proactive in the acquisition process. EDAC CONSIDERATION Discuss interest in County HRA/EDA and alternative funding policy development. ATTACHMENTS None.