Agenda - Council - 02/16/2010 - Special

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y, a ~ CASE # CONSIDER PRIORITIZATION OF PROPERTY ACQUISITION RELATING TO THE HIGHWAY 10 CORRIDOR RALF PROGRAM By: Sean M. Sullivan, Economic Development Coordinator Background: The Right of Way Acquisition Loan Fund (RALF) has been the mechanism used to purchase properties from willing sellers in the Officially Mapped Highway 10 Corridor. To date, the program has purchased fourteen properties with two currently in the fmal stage (Bailon and ICO). Previous Council direction had prioritized the property next to ICO in the gateway area as the next property for acquisition with RALF funds. Dollars allocated to this program come from the State of Minnesota and communities that are eligible compete for these funds. Funding levels for the RALF program are dynamic and projects need to be identified and prioritized so that requests for funds can be timely. Attached is a summary of the status of properties within the corridor and current priorities. 6043 Hwy 10 is currently listed as the property with the highest priority in the corridor to focus on acquisitions on the east entry point of the city. Other factors considered for the prioritization include: vacant land (V), minimal structure removal (M), poor aesthetics (A), low cost (C), inexpensive relocation (R), minimal tax implications (L), and public purpose (P) and proximity to Town Center (T). Wells Catering is a well respected business within the City of Ramsey. In 2007 the Ramsey EDA awarded them as Business of the Year and they have continued to be an active member of the business community. Wells Catering is based out of the Wells Event center located at 6141 Highway 10 but Mr. Wells also operates the Fountains of Ramsey located in Town Center. Economies of scale are difficult to achieve with these two operations and consolidation would be a more effective business model. In order for this to be possible there are a number of fmancial and contractual obligations that need to be addressed before a move into the Fountains of Ramsey facility could be possible. Entrepreneurship is the life blood of the business cycle. George Wells has collaborated with Jim Deal, of PSD, LLC to create a restaurant concept for the first floor of Ramsey Office Plaza adjacent to the Fountains of Ramsey. This concept was presented to the Ramsey EDA on February 11, 2010 and was well received. The EDA made a formal recommendation to the City Council to move the acquisition of 6141 Hwy 10 up in RALF priority to help facilitate this Town Center growth opportunity. This shift in priority would move the 6141 Hwy 10 property ahead of the gateway property next to ICO. This recommendation does not consider the factors of prioritization listed above but puts value on the creation of a new restaurant and increasing activity within the Town Center. The recommendation is contingent on the restaurant project moving forward. Staff is looking for council direction on RALF priorities moving forward into the future. Recommendation: Staff recommends moving 6141 Hwy 10 NW to the highest priority for RALF funding contingent on the Wells restaurant project moving forward in Town Center. Council Action: Motion to move 6141 Hwy 10 NW to the hi 'ority for RALF funding contingent on the Wells restaurant project moving forward in Town Center. Reviewed by: City Administrator Enclosures: Site Location Map RALF Guidelines RALF Acquisition Status Log RALF Hwy 10 Status Map CC: 02/16/10