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Stacy allows financing group to work within cityBy Barbara Brown The Chisago County Economic Development/Housing Redevelopment Authority (EDA/HRA) was allowed to cross the Stacy city limit and offer its help with construction project financing after a brief public hearing on the subject last week. The council voted unanimously after a brief chat session on what the agreement would mean for Stacy. The agreement took several weeks to reach. Lent Township had asked for EDA/HRA assistance with financing the proposed new Stacy-Lent Area Fire Department building. The EDA/HRA said it could offer the township low-interest financing for the fire building, but it would have to ask permission from the city because the fire building is planned for 20 acres within the cityís limits, according to Chris Eng, executive director of the EDA/HRA. Eng approached the city of Stacy at a June meeting and asked permission for the EDA/ HRA to cross over the borders and offer its services. The agreement means that the EDA/HRA would be allowed to work within the city limits, as required by state law, and not that the city is obligated to accept any financing from the EDA/HRA on any project. The city only had to grant permission for the EDA/HRA to work within tits borders one time. Eng said the EDA/HRA will begin working on the project plan for the fire hall soon and present the plan to the council at an upcoming meeting. Even though the EDA/HRA develops and presents a project plan, the council still could reject it. After the public hearing that included citizen concerns about what EDA/HRA financing would mean for ownership of the building, the council unanimously voted to allow the EDA/HRA to work within the city. Bruce Kimmel, financial advisor for the EDA/HRA, told residents and the council that if the council approved EDA/ HRA project plan and if the joint powers of Stacy and Lent agreed to accept EDA/HRA financing of the fire building, the EDA/HRA would own the building for the term of the loan. He said after the approximately 10-year loan term, the city and township would then decide what to do about a proposed 70-30 ownership split with the majority owned by the township. Township supervisors chairman Monica Abress urged the council to accept the resolution that would allow the EDA/HRA to work in the city so the EDA/HRA could move forward in developing a financing plan. She told the council the township hoped to have financing settled so bonds could be sold and the township could break ground on the building soon. ©ECM Post Review |