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February 17, 1977 TO: Thomas F. Lewcock, City Manager FROM: Barry P. Johnson, Executive Director RE: Assessment Abatement - HRA Property Last year the HRA acquired, with Council approval, four parcels of land generally south of 5th St. NW and east of 5th Ave. NW. The HRA is now attempting to have the property placed in a tax exempt status, as publicly owned property normally is classified. Ramsey County cannot process the exemption, however, until the outstanding special assessments on these parcels are either paid or abated. In previous discussions of this question, the HRA indicated it did not wish to pay the assessments at this time because they would be a considerable drain on the HRA's limited funds. At the same time, the HRA,and the Council also I assume, does not wish to have these assessments simply cancelled. If they could be deferred in some manner, they could be paid as part of a redevelopment project cost at the time the properties are sold. The proposed agreement provides that the assessments will be handled in that manner. In return for abatement of the assessments, the HRA agrees that it will pay an amount equal to the outstanding principal of the assessments plus accrued interest. I would also like to note that as of this writing, the HRA has not formally acted to request abatement of these assessments. The HRA will be meeting this evening to consider that question. Based on previous HRA discussion, it appears at least possible that the HRA will request abatement. We are responding to a Ramsey County timetable for filing the appropriate documents with the State and so are asking that the item appear on the preliminary Council agenda in anticipation of HRA action tonight. i� i Barry P. JoKnscV Executive Director Housing & Redevelopment Authority BPJ:bj