The purpose of this case is to review a proposed revised Financing Structure and Schedule to provide financial assistance (loan) to Anoka Ramsey Athletic Association (ARAA) for construction of a 100,000 square foot athletic facility and to direct staff to start this process.

ARAA Project History / Finance
In February 2023, the Anoka Ramsey Athletic Association (ARAA) received site plan and plat approval to construct a sports dome structure at 14600 Ferret St. NW. ARAA eventually withdrew their landuse application, and therefore, never constructed the dome. Since that time, Ramsey staff have continued to work with representatives from ARAA as they sought out a new solution for an indoor sports facility to serve their organization. ARAA has progressed through new plans to construct a facility at a different location within Ramsey. The City Council met with ARAA at the January 13, 2026 work session and reached a consensus to provide up to 2.3M in financial assistance, primarily in the form of a low interest loan.

The City subsequently met at a Council Work Session on March 10th and reviewed a revised financing proposal that included a 75%/25% Debt Structure without the need for a financial guaranty with a proposed City Loan of approximately $1.43M. 2 days after the March 10 CC Work Session formal bank approval was obtained but included a requirement for a 5M financial guaranty. This guaranty was a deal killer for parties involved. ARAA has worked with 3 other banks to obtain additional financing options and received 3 proposals. The option proposed for Council consideration is included as an attachment to this case. In short, the 75/25 shifted to a 70/30 LTV ratio and the City loan and loans by other was considered equity for ARAA. The proposed City participation under the proposed financing structure would be an HRA loan of approximately $1.877M, which is still well below the initial consensus of the Council supporting up to $2.3M of total assistance In January 2026. Understanding project costs could fluctuate, Staff is asking the Council to provide consensus supporting the proposed financing structure and to give staff flexibility to go up to 2M for an HRA loan.

The City has explored the use of its Ramsey HRA dollars levied in Ramsey by Anoka County in the form of a loan. In order to use the HRA funds the City must create a Redevelopment Plan for a designated area which allows the fund to be expended for eligible costs. Taft Law has put together a revised schedule showing what this process and timing would look like. The County process to access the HRA funds is separate and will be worked into the schedule. This process involves a simple resolution requesting the funds and an explanation of what the funds will be used for. Although ARAA does not have financing approval at this time (shouldn't take longer than 2 weeks), staff is asking the City Council to consider starting the City process to obtain the HRA funds and to start the creation of the Redevelopment Plan. ARAA has committed to deposit 10K in escrow to start this process off. Once they receive formal bank approval the City will also utilize HRA funds to fund the balance of Legal work by TAFT. Staff is working with Taft Law on the boundaries of the Redevelopment Plan Area and hopes to include areas in addition to the ARAA project area such as the 167th Commercial and residential node. The purpose of extending this area to include more area is to be able to reallocate the payments of the loan to additional HRA eligible expenses in the future. Attached is a draft Map of the Redevelopment Project Area.

N/A at this time. However, the Redevelopment Plan/business subsidy process will require public hearings.

Staff is looking for council consensus to start the process to create a Redevelopment Plan, adopt a resolution to request HRA funds from the County and to give Staff flexibility in the amount (up to 2M), interest rate indexed to 10 year treasury, 5 yr. term, 25 yr amortization . All terms and conditions of the loan will ultimately need to be formally approved by City Council Action at a later date.

10K Escrow Account by ARAA to start TAFT Law Redevelopment Area process.
Balance of Legal work by City of Ramsey (HRA/EDA).
Staff has reviewed City financing options and has recommended an HRA Loan (up to 2M) from Ramsey HRA funds held by Anoka County.

Council consensus to start the process to create a Redevelopment Plan, adopt a resolution to request HRA funds from the County and to give Staff flexibility in the amount (up to 2M), interest rate indexed to 10 year treasury, 5 yr. term, 25 yr amortization and to fund the remaining legal work once the Bank has formally approved financing . All terms and conditions of the loan will ultimately need to be formally approved by City Council Action at a later date.