Agenda - Council - 09/13/2016 - Laserfiche WebLink

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APPENDIX C (continued) Statement of Need & Justification (4) Meet intent of RALF Program The 1982 Minnesota legislature established a revolving loan fund program to acquire property threatened by development and needed for future right of way. The cost of purchasing property can significantly increase over time (i.e. inflation, development, redevelopment, and business relocation costs). Buying property today for a considerably lower price than what would be required in the future saves money and gets more projects completed. Anoka County values 6401 Highway 10 at just over $1.1M. Commonly, private appraisals come in higher than the County appraised value. With that in mind, we have a motivated seller in - hand. The property owner wants to sell in the next six months, and has adjusted pricing accordingly ($695,000). As a result, the City believes an opportunity exists to save tax payer dollars by purchasing now rather than waiting. NOTE: a future purchase would likely also include lease buy-out and business relocation costs; which, can be significant. (5) New Highway 10 Plan-1/3 of the demand for property acauisition The City would like to note, the new 2014 Highway 10 Access Planning Study requires about 1/3 of the full -acquisition costs in comparison to the former Highway 10 corridor improvement plan. Below is a summary. FULL ACQUISITION COST ESTIMATIONS (informal estimations only) New Plan: 13 parcels, 23.77 acres, $6.6M 2016 Anoka County Valuation Former Plan: 33 parcels, 64.97 acres, $21.9M 2016 Anoka County Valuation