5.1. SR 03-22-1993
ITEM 5. 1.
SUBJECT:
MAYOR AND CITY COUNCIL
WILLIAM RUBIN, ED COORDINATO~~
MARCH 16, 1993
RESOLUTION SUPPORTING TWIN CITIES
MSA DESIGNATION
TO:
FROM:
DATE:
INTRODUCTION
At its March 22, 1993, meeting, the Elk River City Council will
be asked to approve a resolution supporting the designation of
Sherburne County as part of the Twin Cities Metropolitan
Statistical Area (MSA). This resolution expands upon issues
that emerged from the March 8 meeting during which time the
City Council authorized a letter to the Department of Housing
and Urban Development. The City requested an expeditious
adjustment to Sherburne County's single family mortgage
insurance limits to reflect those limits found in the balance
of the Twin Cities metro area. A copy of this letter is
attached to the memo.
BACKGROUND
.
A broader issue that emerged from the March 8 discussion deals
with Sherburne County's designation as part of the Twin Cities
MSA. That is, efforts to adjust the mortgage insurance limits
upward are fruitless if Sherburne County's designation into the
Twin Cities MSA is disputed. Based on discussions with realtor
associations, lenders, and colleagues, etc, staff believes that
there is movement afoot to appeal this metropolitan designation.
Specifically, staff has learned that residents from the 7th
Congressional District dispute the designation of Sherburne
County into the Twin Cities MSA and Representative Collin
Peterson, on behalf of those residents, seeks to restore
Sherburne County's qlignment with the St. Cloud MSA. The
federal Office of Management and Budget (OMB) allows for a
review period for its MSA designations. It is reasonable to
believe that Sherburne County will be among the MSA
designations OMB will reevaluate.
.
Therefore, it may be appropriate to adopt a resolution
supporting Sherburne County's designation in the Twin Cities
MSA. This is done recognizing that Elk River has much more to
lose than gain if QMB determines that the St. Cloud MSA should
retain Sherburne County within its limits. Specifically,
mortgage insurance limits and medicare paYments are higher for
areas in the Twin Cities MSA rather than the St. Cloud MSA.
ACTION REQUESTED
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420
.
.
.
The Council is asked to adopt the attached resolution. If
adopted, Elk River will have gone on record in support of the
expansion of the Twin Cities MSA to include Sherburne County.
-l/
March 4, 1993
Mr. Thomas T. Feeney
U.S. Department of Housing
and Urban Development
220 2nd Street South
Minneapolis, MN 55401-2195
Dear Mr. Feeney:
On the basis of 1990 census information, the federal Office of
Management and Budget has determined that Sherburne County is
now part of the Twin City Metropolitan Statistical Area (MSA).
The City of Elk River sees some advantages and disadvantages to
this designation. It is clear, however, that the Twin Cities
has an influence on the rapid growth experienced in Elk River
over the past decade.
. One advantage to the MSA designation relates to FHA mortgage
insurance limits. The City of Elk River is hopeful that FHA
will act expeditiously to adjust its single-family mortgage
insurance program upward to reflect the higher limits enjoyed
by other home buyers in the Twin Cities. As we move from
winter to spring, home builders and realtors are enthusiastic
about the upcoming construction and home buying season. An
adjustment of FHA's metro limits into Elk River and Sherburne
County will contribute significantly to this enthusiasm.
Thank you for your prompt attention to this matter.
event of questions or comments, please feel free
staff Patrick Klaers or William Rubin at 441-7420.
contacted during normal business hours at 540-3520.
In the
to call my
I can be
1SinCerelY YJLrs~
1"1j- a /J _aJ..~
Hen.jy A. Du.i tsman
Mayor
City of Elk River, Minnesota
.
bee: Sherburne County Board
Honorable James Oberstar
Honorable David Durenberger
Honorable Paul Wells tone
720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420
.
.
.
RESOLUTION 93 -
RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION SUPPORTING THE DESIGNATION OF SHERBURNE COUNTY
AS PART OF THE TWIN CITIES METROPOLITAN STATISTICAL AREA
WHEREAS, the City of Elk River, Minnesota, has experienced
rapid population growth during the 1980's and 1990's,
and;
WHEREAS, a factor which has influenced this growth is Elk
River's close proximity to the Twin Cities of
Minneapolis and St. Paul, and;
WHEREAS, because of this proximity, the population growth in
Elk River is projected to increase, and;
WHEREAS, the Office of Management and Budget recently
designated Sherburne County as part of the Twin Cities
Metropolitan Statistical Area (MSA), and;
WHEREAS, because of this designation, Sherburne County and its
municipalities and townships will realize many
positive benefits, including higher mortgage insurance
limits through the Federal Housing Administration
(FHA), and increased Medicare paYments.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City of Elk River, Minnesota supports
Sherburne County's designation into the Twin
Cities MSA.
2. The City of Elk River, Minnesota further supports
the positive benefits that will be derived in
Sherburne County as a result of this designation.
Passed and adopted by the City Council of the City of Elk River
this ___ day of March, 1993.
Henry A. Duitsman, Mayor
ATTEST:
Sandra A. Thackeray, City Clerk