Agenda - Council - 01/10/2023 - Laserfiche WebLink

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Figure 1: City of Ramsey's Highway 10 Gateway Project ■ ■ uethodoi;aw 0 0 Table 1 identifies the five RALF loans that are proposed to be partially repaid at this time. Parcels purchased with these RALF Loans are partially needed for the upcoming Highway 10 improvements in the City of Ramsey. Proposed repayments are in proportion to the part of the parcel needed for the highway improvements. Partial repayment requires Council action due to only the part being repaid being used for the intended highway improvements. The Council's loan agreement requires a recipient of a RALF loan to place a restrictive covenant on the land that protects the future highway interest from any encumbrances. In reviewing the file, the Council discovered that no restrictive covenant had been placed on the properties associated with the RALF loans granted to the City of Ramsey. To bring the transaction back into compliance with the RALF loan program and upon receipt of the expected partial payments, the Council shall require that the City of Ramsey file restrictive covenants per our loan agreements excluding the portions of property identified as being used for road or highway purposes, reserving further action until the disposal of the remainder parcels are concluded by the City. Table 1: Proposed Partial RALF Loan Repayments RALF Loan Value Proposed Property Repayment Loan Repayment Purchase % % L0801* $1,260,686.00 $56,852.18 4.5 4.5 L0705 $551,934.00 $28,796.96 5.2 5.2 L0404 $372,647.00 $22,023.12 5.9 5.9 L0503 $263,334.00 $27,749.00 10.5 10.5 L0602 $384,868.00 $100,940.01 13.1 13.1 sum $2,833,469.00 $236,361.27 *None of the parcel purchased with L0801 is being purchased for the highway improvement but a railroad easement is necessary that will cover 4.5% of the parcel. Due to the intrusive nature of this easement, repayment at 100% of the proportional value is appropriate.