Adopt Resolution #23-018 Approving Purchase Agreement and Sale of Multiple RALF Parcels for Ramsey Gateway Project

Purpose:
The purpose of this case is to approve the Purchase Agreement and authorize the sale of multiple parcels for Ramsey Gateway Hwy 10 Project.

Background:
From 2004-2017, The City of Ramsey acquired many parcels north of the existing Highway 10 to obtain future right of way for improvements to Highway 10.  The City continues to receive requests from Anoka County for the acquisition of full and partial parcels needed to complete the Hwy 10 project.  This group of parcels identified on the Settlement Agreement are partial acquisitions for Right of Way for Hwy 10 and/or the Frontage Road System north of Hwy 10 and south of the railroad tracks.  Revenue received from Anoka County by the City for these acquisitions will be used to pay off a portion of RALF Loans L-08-01, L-07-05, L04-04, L05-03 and L-06-02 summarized below:
 

RALF Loan	Loan Value	Proposed Repayment	Property Purchase %	Repayment %
L0801*	$1,260,686.00	$56,852.18	4.5	4.5
L0705	$551,934.00	$28,796.96	5.2	5.2
L0404	$372,647.00	$22,023.12	5.9	5.9
L0503	$263,334.00	$27,749.00	10.5	10.5
L0602	$384,868.00	$100,940.01	13.1	13.1
sum	$2,833,469.00	$236,361.27

As mentioned above, these transactions are partial acquisitions which is the reason that a Settlement Agreement rather than the typical 
Purchase Agreement is being used here. 

Restrictive Covenants:
Restrictive Covenants, prohibiting the sale or installation of improvements on the remnant parcels not needed for the Hwy 10 project is required by the Met Council. This item will be addressed in a separate Council Case and Resolution.
 

None required

Property acquisition along Hwy 10 for the Ramsey Gateway project has commenced by Anoka County.  Anoka County has presented a Settlement Agreement to acquire Parcels 60, 62, 65, 68 and 69, Anoka County ROW Plat No 103  and Parcel 7PE, Anoka County ROW Play No 102 from the City of Ramsey.  The partial payment amounts for the partial acquisitions is highlighted above.  Future sales of remnant parcels that the city holds are based on "Fair Market Value" in the event that they are not needed for the highway project.  Staff supports the sale of the parcels identified above.  

Alternatives:
1) Adopt Resolution #23-018 Approving Settlement Agreement and Sale of Multiple RALF Parcels for Ramsey Gateway Project(as presented); subject to City Attorney review.
2) Adopt Resolution #23-018 Approving Settlement Agreement and Sale of Multiple RALF Parcels for Ramsey Gateway Project (with changes); subject to City Attorney review.
3) Something else

There is no cost to the city for this transaction.  The proceeds from the sale will be used to pay off portions of RALF Loans L-08-01, L-07-05, L04-04, L05-03 and L-06-02.  The County of Anoka will be responsible for all the closing costs of these sales transactions.

Staff recommends adoption of Resolution #23-018 Approving Settlement Agreement and Sale of Multiple RALF Parcels for Ramsey Gateway Project(as presented); subject to City Attorney review.

Motion to Adopt Resolution #23-018 Approving Settlement Agreement and Sale of Multiple RALF Parcels for Ramsey Gateway Project(as presented); subject to City Attorney review.