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Our Mission. To we,Y together to resposibiy grow aar cammu airy, and to provide quaNry, cost-eUective, and efficient gave rnmem services.
<br />CC Regular Session
<br />Meeting Date: 09/13/2016
<br />Submitted For: Patrick Brama, Administrative Services
<br />By: Patrick Brama, Administrative Services
<br />Information
<br />7. 9.
<br />Title:
<br />Approve Right -Of -Way Acquisition Loan Fund (RALF) Application: Case of 6401 Highway 10
<br />Purpose/Background:
<br />PURPOSE
<br />(1) consider the attached concept application for the Metropolitan Council Right -Of -Way Acquisition Loan Fund (RALF). NOTE: once all documentation
<br />can be obtained (appraisals, ESAs, etc.), staff will bring back this case/ application for formal adoption/ authorization.
<br />(2) consider authorizing staff to complete the attached work order, not -to -exceed $54,500.
<br />BACKGROUND
<br />RALF Program
<br />Land needed for future Highway 10 nght-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
<br />construction To address this, the 1982 Minnesota legislature estabhshed a revolving loan fund program to acgmre undeveloped (or underdeveloped) property located within an officially -mapped
<br />metropolitan highway nght-of-way that is threatened by development (or redevelopment)
<br />In 2010 the Metropolitan Council suspended its 30-year old RALF program to assess its financial effectiveness, ensure that loans being made are
<br />consistent with the TPP, and determine what changes, if any, should be made to the program. The Metropolitan Council reinstated the program in 2014
<br />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
<br />current balance of RALF is $14.3M.
<br />The Metropolitan Council recently reconsidered their new program criteria, and made an adjustment. As of August 12, 2016 the Metropolitan Council will
<br />now allow for "commercial hardships" applications. In summary, this means the City of Ramsey can now use the RALF program again --hence, the reason
<br />this case is now in -front of the City Council.
<br />Link 1:
<br />httn://metrocouncil.org/Transnortation/Planning-2/Transit-P lans.-Studies-Renorts/Highways-Roads/Ri ght-of-Wav-Acquisition-Loan-Fund. asox
<br />Link 2: httn://metrocouncil. org/News-Events/Transnortation/Newsletters/Commercial-nronerty-could-be-eligible-under-change.asox
<br />City of Ramsey use of RALF (old plan)
<br />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
<br />Acquisition Loan Fund (RALF). These properties were purchased based on the "old" US Highway 10 plan that called for the highway to be completely
<br />shifted north, adjacent to the BNSF tracks, throughout the entire city. The City adopted the MnDOT/ Metropolitan required "Official Map" in 2004 to
<br />reflect our intention to purchase properties for future Highway 10 improvements.
<br />Highway 10 Access Planning Study (new plan)
<br />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
<br />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
<br />River. This study was completed so that high -benefit improvements that are fiscally responsible could be identified so that improvements can be funded,
<br />programmed and implemented incrementally to improve the corridor's mobility and safety, for motorists and pedestrians, in a timely manner.
<br />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
<br />throughout Ramsey, and results in a much lower demand for "full" property acquisition (in comparison to the former Highway 10 plan). Subsequently, the
<br />new Highway 10 plan reduces the demand on the RALF program. Please see attached maps for visuals/ details.
<br />Link3: httn://www.dot.state.mn.us/metro/nroiects/hwvlOstudv/
<br />6401 Highway 10
<br />Property was formerly a Shell gas station, which included two sub -lease tenants (Cousins Subs and Taco Johns). All businesses closed in early 2015.
<br />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
<br />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
<br />property owner has indicated his priority is to have 6401 Highway 10 sold by the end of 2016, regardless of the buyer.
<br />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
<br />accusation in the old and new Highway 10 plans. Outside of helping accomplish the US Highway plans, by purchasing this property (and demolishing/
<br />cleaning -up), the City would be able to clean up a blighted property, and improve the visibility of a struggling retail node.
<br />RALF Application, 6401 Highway 10
<br />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
<br />staffs approach exists. Staff indents to complete the attached "work -order" to complete a full/ final application (obtain appraisals, ESAs, pre -demo
<br />surveys, etc.).
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