(1) consider the attached concept application for the Metropolitan Council Right-Of-Way Acquisition Loan Fund (RALF).  NOTE: once all documentation can be obtained (appraisals, ESAs, etc.), staff will bring back this case/ application for formal adoption/ authorization.

(2) consider authorizing staff to complete the attached work order, not-to-exceed $54,500.

RALF Program
Land needed for future Highway 10 right-of-way can be lost to development (or redevelopment) because MnDOT is unable to purchase highway right-of-way until the time a road is programmed for actual construction.  To address this, the 1982 Minnesota legislature established a revolving loan fund program to acquire undeveloped (or underdeveloped) property located within an officially-mapped metropolitan highway right-of-way that is threatened by development (or redevelopment).  

In 2010 the Metropolitan Council suspended its 30-year old RALF program to assess its financial effectiveness, ensure that loans being made are consistent with the TPP, and determine what changes, if any, should be made to the program.  The Metropolitan Council reinstated the program in 2014 with stricter eligibility requirements. Since then, however, the Metropolitan Council has not made any loans to the City of Ramsey (or any other city).  The current balance of RALF is $14.3M.

The Metropolitan Council recently reconsidered their new program criteria, and made an adjustment.  As of August 12, 2016 the Metropolitan Council will now allow for "commercial hardships" applications.  In summary, this means the City of Ramsey can now use the RALF program again--hence, the reason this case is now in-front of the City Council.
 

City of Ramsey use of RALF (old plan)
In the early to mid-2000's the City of Ramsey purchased several properties located along U.S. Highway 10 via the Metropolitan Council Right-Of-Way Acquisition Loan Fund (RALF).  These properties were purchased based on the "old" US Highway 10 plan that called for the highway to be completely shifted north, adjacent to the BNSF tracks, throughout the entire city.  The City adopted the MnDOT/ Metropolitan required "Official Map" in 2004 to reflect our intention to purchase properties for future Highway 10 improvements. 

Highway 10 Access Planning Study (new plan)
In 2014, MnDOT and Anoka County, in cooperation with the Cities of Ramsey and Anoka, conducted the Hwy 10 Access Planning Study to re-examine and identify the ultimate amount of access, types of access, and locations of access to Hwy 10 between the Anoka/Sherburne County line and the Rum River.  This study was completed so that high-benefit improvements that are fiscally responsible could be identified so that improvements can be funded, programmed and implemented incrementally to improve the corridor’s mobility and safety, for motorists and pedestrians, in a timely manner.

In summary, the new Highway 10 Access Planning Study (Highway 10 plan) does not require Highway 10 to be shifted north to the BNSF rail line throughout Ramsey, and results in a much lower demand for "full" property acquisition (in comparison to the former Highway 10 plan).  Subsequently, the new Highway 10 plan reduces the demand on the RALF program.  Please see attached maps for visuals/ details.
 

6401 Highway 10
Property was formerly a Shell gas station, which included two sub-lease tenants (Cousins Subs and Taco Johns).  All businesses closed in early 2015.  Owner listed property with Calhoun Companies previously, and is now listing with Colliers.  Due to various local forces (changed access to site, and a low absorption of retail space) the next user for this site will need to convert from a gas station to another use (i.e. office or a different form of retail).  The property owner has indicated his priority is to have 6401 Highway 10 sold by the end of 2016, regardless of the buyer. 

The property owner is "willing seller" and is willing to sell this property below market value.  This property is officially mapped, and is needed for full accusation in the old and new Highway 10 plans.  Outside of helping accomplish the US Highway plans, by purchasing this property (and demolishing/ cleaning-up), the City would be able to clean up a blighted property, and improve the visibility of a struggling retail node.

RALF Application, 6401 Highway 10
Please see attached draft application.  Staff would like to know if the Council would like to see any changes to this application, or if any concerns with staff's approach exists.  Staff indents to complete the attached "work-order" to complete a full/ final application (obtain appraisals, ESAs, pre-demo surveys, etc.).
 

NOTE: once all documentation can be obtained (appraisals, ESAs, pre-demo survey, etc.), staff will bring back this case/ application for formal adoption/ authorization by the Council.

NOTE: once all documentation can be obtained (appraisals, ESAs, pre-demo survey, etc.), staff will bring back this case/ application for formal adoption/ authorization by the Council.