HomeMy WebLinkAbout10.F.1. Establishment of Funding for the Creationof a Property Acquisition Fund (B, D)
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Samantha DiMaggio, Economic Development Coordinator
DATE: 12/17/2013
SUBJECT: Establishment of Funding for the Creation of a Property Acquisition Fund. (B, D)
Action Sought
The Council is asked to approve the creation of a Property Acquisition Fund for use by the Economic Development
Authority, by means of an interfund loan from the Internal Services Building Fund cash position.
Background
On occasion, specific properties become available throughout Shakopee which may be of interest for the City to
acquire. Some of these involve blighted properties; others are those with a potential for reuse. The focus would be
on properties which involve a willing seller/willing buyer, or properties which are tax-forfeited or are in
foreclosure. Acquisition would allow the City to work with realtors, developers, and other private partners on the
revitalization/reuse of these properties.
So that there would be an ability to move when an opportunity presents itself, the Council is asked to approve the
funding of an acquisition account. The recommendation of the Finance Director is that an interfund transfer of
money from the Internal Services Building Fund be made for the initial funding. Reimbursement could be made
over a recommended 10 years, at no or low interest. Reimbursement might also come from the resale of properties
which are being reused.
Recommendation
The recommendation for the initial funding is $500,000. The authorization for any expenditures would go through
the Economic Development Authority, but as the funding source is the City's Internal Services Building fund, I
recommend the Council approve the concept, and authorize funding.
Budget Impact
Repayment of the $500,000 (less proceeds from any sales) would come from a levy over the next 10 years.
Relationship to Vision
B. Positively manage the challenges and opportunities presented by growth development and change.
D. Maintain improve and create strong partnerships with other public and private sector entities.
Requested Action
Council should authorize the transfer of $500,000 from the Internal Services Building Cash Fund Position for the
creation of an EDA Property Acquisition Fund.