Agenda - Economic Development Authority - 07/10/2025

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4. 2. Economic Development Authority (EDA) Meeting Date: 07/10/2025 Primary Strategic Plan Initiative: Promote economic growth and development. Title: Right of Way Acquisition Loan Program (RALF) Property Sales / Process (INFORMATION ITEM) Purpose/Background: The purpose of this case is to inform the EDA of the current status and process of selling Right Away Acquisition Loan Program (RALF) properties held by the City. Background: The City of Ramsey has acquired many properties from 2004-2017 on the North Side of Highway 10 utilizing RALF. These properties were acquired for the future Hwy 10 Right -of -Way and have been held by the City until they are needed for the project. As the EDA is aware, the location of the Highway 10 expansion project shifted south and many of the properties acquired via the RALF Program are no longer needed for the project. Some of these parcels have already been deeded to Anoka County for the highway and interchange projects completed and under construction. Currently, the City still owns 13 RALF properties that will be sold when the Hwy 10 project has been completed. Process of Sale: Per the loan agreement with the Met Council on each RALF parcel the City has acquired, the process is to sell the properties at "Fair Market Value". Met Council has determined fair market value to be the appraised value by an independent appraiser, which is consistent with the loan agreements. Met Council would prefer all the parcels to be put on the open market for sale, but they have been open to giving adjacent property owners and leasers the opportunity to purchase for the appraised value. All proceeds from the sale of City -owned RALF properties are paid to the Met Council to replenish the RALF Loan program for future projects. To date, appraisals have been completed for Parcel 13 (RM Golf Carts $550,000) and Parcel 7A (Oak Terrace Acquisition - $43,460) and the City has sold both properties. More appraisals have been ordered for Parcels 1-11. Staff anticipate all appraisals to be completed this year and the properties to be listed on MNCAR utilizing the relationship with ACRED. Notification: N/A Time Frame/Observations/Alternatives: Staff will provide a brief overview of each of the RALF properties held by the City. Maps have been provided to this case for review of each parcel as well. Each parcel will be brought to the City Council for consideration for a sales resolution once offers are made on listed parcels. The City Council adopted Ordinance #24-11 which authorizes the sale of all of the RALF Parcels as required by City Charter. It should be noted that many parcels have already received interest for acquisition. All leases (Power Lodge, God's Kingdom) are set to terminate on January 31, 2026. God's Kingdom has a lease that ends on January 31, 2026. This lease has already been extended one full year to give the tenant time to find a new home. The City Council reviewed this request at work session and provided direction to Staff to not to extend the lease. Staff has been helping the church find alternative locations and has connected them with a commercial realtor.