Agenda - Council - 10/10/2017 - Laserfiche WebLink

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OW t hi lon: To work together ko respotibiy grow oar community, and to provide quality, cost -affective, and efckent government tet does. CC Regular Session Meeting Date: 01/24/2017 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services Information 7. 13. Title: Right -Of -Way Acquisition Loan Fund (RALF) Program: Case of 6401 Highway 10: Consider Purchase Agreement [CASE MAY BE CLOSED TO PUBLIC] Purpose/Background: PURPOSE (1) Previous Case: on 09/13/2016, the Council approved the attached draft application for the Metropolitan Council Right -Of -Way Acquisition Loan Fund (RALF). The Council also authorized staff to complete the due -diligence work outlined in the attached budget, not -to -exceed $54,500. (2) This Case: the purpose of this case is to consider approving the attached Purchase Agreement. Once approved, staff will enter into an Purchase Agreement with the Seller. Staff will then be in a position to complete the final required due -diligence (i.e. removal of tanks, and Phase II ESA). (3) Future Case: in future case, once the Phase II ESA (i.e., environmental review) is completed, the Council will be ready to submit a final/ formal application to the Metropolitan Council for RALF funding. NOTE: the Metropolitan Council has previously approved Ramsey's pre -application, and encouraged the City to submit a final application, once due -diligence is completed. (4) Close purchase agreement: receive Metropolitan Council funding. (5) Demolish and clean-up site: site will be ready for U.S. Highway 10 improvements. BACKGROUND 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. City of Ramsey use of RALF (old plan)