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City Manager's Recommendations Regarding City Use of the Proceeds from the Arena Project and the Amount of an HRA Tax Leery valuation but less actual revenue, in part because of the size and p a of projects. This mismatch between current operating expenses and current operat- ing p ng revenues in the Community Development D epa ment probably needs attention. It rs beyond the scope of this particular memo to try to resolve that issue here. Suffice it to say here that I don't thinly anyone wants to see 1 million of the Arona land sale proceeds be used simply to cover future operating deficits in the Community Development Department. If building permit revenue picks up, or the Community Development De- partment reduces its staffing, or the City Council chooses to fund the Community Development Department in whole or in part from the City's General Fund, then the Community Development Department would not need the 1 million from the sale of the Aroma ro er to support the p � pp Department #s operating hosts. The 1 million could be used instead for the type of special economic development programs touched on above - Le., Tin Lakes incentives. Housing Redevelopment Authority? Some past of the $1.3 million in Aroma land sale proceeds could be transferred to the Roseville Housing and Redevelopment Authority (HRA). That could hel p offset H Brat - RA o p ing costs, could help fund HRA program initiatives (such as affordable housing), or could lessen. the HRA's potential tax levy. But, the HRA is just starting its work. They are developing their first , p g budget, their first strategic plan, and their first work plan. The are in- . p in- experienced. I suggest the Council not transfer any more City funds to the IRA -- such as a portion of the Arona land sale p roceeds -- until the HRA has a fair opportunity to develop more of a track record Remember, this Spring you transferred the entire i Housin g Fund to the IRA. The transfer of the city's Dousing Fund to the HRA included about $500,000 in loan assets and $160 000 in cash. Those resources s, and perhaps a first HRA levy of $200,000 (seep . -7 of this memo), ) a ought to be sufficient to support the HRA's progress at this P oint. As for economic development projects Within the Community Develop- ment p ment Depairtment, these are certainly worthy pu oses. However on con- struction and operation of a ommunity Center is, in my judgment, a higher priority and higher need for the community n' g ht now for the fol- lowing reasons. 5