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ITEM # 5. <br />~i <br />City of <br />Elk -~-_ <br />River <br />REQUEST FOR ACTION <br />To Item Number <br />Housin & Redevelo ment Authori <br />Agenda Section Meeting Date Prepared by <br /> August 3, 2009 Catherine Mehelich, Director of <br /> Economic Develo ment <br />Item Description Reviewed by <br />Consider Year 2010 HRA Budget and Resolution Regarding <br />HRA Levy Reviewed by <br />Action Requested <br />Staff recommends the HRA review and approves the Year 2010 HRA Budget as presented and approve <br />the attached Resolution Establishing the HRA Tax Levy for Collection in Year 2010. Following the <br />HRA's action, the City Council must approve and certify the EDA and HRA levies to Sherburne County <br />in September. <br />Background/Discussion <br />The Economic Development Division consists of two separate budgets including: <br />Economic Development Authority <br />Housing & Redevelopment Authority <br />Revenues <br />Since 2003, the EDA and HRA levies have been sufficient to balance the Economic Development <br />Division without tapping City General Fund revenues. <br />In 2008 the HRA acted to maintain the general operating levy at 0.0144% of taxable market value, despite <br />a statutory increase allowing HRA's to levy a maximum of 0.0185%. The attached Budget Worksheet has <br />been prepared using the 0.0144% levy as in previous years. Revenues generated from the HRA tax levy <br />for 2010 budget purposes are estimated based on a 6% decrease in taxable market value. <br />In addition 2010 revenues include transfers to the HRA from related TIF Districts #16 (King & Main) <br />and TIF District #22 (Bluffs & Jackson) to reimburse the HRA for eligible redevelopment expenditures <br />in the establishment of the TIF Districts. <br />The proposed 2010 revenue does not include any amount of rental income anticipated from the HRA <br />buildings at 716 & 720 Main Street. The Arts Alliance has indicated to staff an interest in extended the <br />lease beyond December 31, 2009. Negotiations have included the expectation for a nominal rent charge <br />to offset a portion of the HRA's annual cost to maintain the buildings. The relationship with the Arts <br />Alliance over the past 18-months has been positive. They have maintained the building in a quality <br />fashion, and the Arts Alliance programming and services have been a positive addition to the downtown. <br />S:\F_DA\HRA\AG~NDA\HRA Budget\8 3 09 HRA Budget Action Requested.doc <br />