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Right-of-way Acquisition Loan Fund (RALF) program

Because MnDOT is unable to purchase highway right-of-way until a road is programmed for construction, many acres which will be needed for future road right-of-way have been lost to development. To address this, the 1982 Minnesota legislature established a revolving loan fund program to acquire undeveloped property threatened by development that is located within an officially-mapped metropolitan highway right-of-way.

The Council decides annually-based on expected loan requests from various cities-how much to levy for the program. Typically, a full annual levy raises about $3.3 million. The Council lends money to cities to purchase the right-of-way from willing sellers. The cities are responsible for having the property appraised and negotiating a price with the seller. MnDOT reviews and certifies the appraisals. The cities are also reimbursed for costs they incur to acquire the property. Any income derived from the property while under city ownership is returned to the RALF account.

When MnDOT is ready to purchase the land for highway construction, it buys the property from the city at the price paid for the property and the loan is repaid to the RALF account. The long-term savings occur because development of the land and its appreciated costs have been preempted. Over the last 20 years loans have been made to acquire right of way parcels for TH 10, TH 52, TH 169, TH 212, TH 610, I-494 and I-35.

For more information about the RALF program contact ann.braden@metc.state.mn.us.

See also Minnesota Statute 473.167, Subdivision 2.