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Finance Officer Lund replied the City cannot be certain that the RALF monies will be available. City Administrator Norman explained the NAU building and Anchor's Away building are two of the best buildings along Highway #10. The buildings are very leasable, which could provide more than enough annual revenues to pay the annual debt service for bonding. Staff would like the Council to consider authorizing the procedure with the bonding process. On a dual track staff would also like to pursue RALF funds for one of the buildings, as these funds would be available within a three-week period. Commissioner Cook noted it has been questioned whether the City can be reimbursed with RALF funds after purchasing a property, and that the purchase may be considered the City's contribution to the highway improvement project. City Administrator Norman indicated he has sent a letter to the Metropolitan Council requesting clarification on this issue. The County has learned about the City's concerns and will offer their support that the property should be able to pass through the City. He advised the action tonight does not lock the City into anything. Staff hopes to have an answer regarding this issue within a couple of weeks. He advised these two buildings were owned by Jim Deal and there was a land swap with Ramsey Town Center, LLC. The purchase agreements on the properties were in the amount of$I.7 million and $1.8 million. Commissioner Cook suggested the City take these parcels as sureties for work on Town Center, rather than going out for bonding. Chairperson Strommen questioned why this process is going through the HRA versus the EDA, as it seems to be more of an economic development issue. City Administrator Norman replied the whole project is the redevelopment of Highway #10, rather than trying to create new business or expand existing business. Eventually the City will acquire these properties to remove them for a highway redevelopment project. These are complicated, complex projects that are more appropriately completed through the HRA. Chairperson Strommen noted the need for a prioritization policy regarding the properties to be acquired on Highway # 10. One of these priorities would be the possibility to lease a parcel to pay the debt service. Commissioner Elvig inquired about a fiscal analysis regarding the buyouts of these properties. City Administrator Norman replied this process is just beginning. A schedule can be prepared regarding the annual bond payments and the income to cover those payments. Staff has identified building tenants and a lease management company to manage these buildings until they are sold as part of the RALF Program. Commissioner Elvig requested the HRA receive information regarding the parameters that would be put forward with this redevelopment plan. He commented the HRA would be entering into a landlord type position and he cannot imagine doing something like this on a year-to-year basis. Housing and Redevelopment Authority / September 13, 2005 Page 3 of 6