2A, TCAAP Stadium Update - Laserfiche WebLink

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obligated to pay the annual debt service payments on the bonds. The Terms budget$58.4 million for on-site infrastructure, $12.4 million for off-site infrastructure (exclusive of regional transportation improvements), and $87.1 million for parking. Staff Comment: MnDOT has resisted paying debt service for off-site improvements. Because on-site infrastructure improvements are not detailed by line item, it is unknown what specifically is and is not included as on-site infrastructure. The Terms divide all development costs between the County, Team, and State. No financial contribution from the City of Arden Hills is contemplated. Citv Concern #2: The site must be addressed as a whole. Letter of March 21,2011: Any stadium development on TCAAP must include a remediation and land use plan that addresses the entire site, including funding mechanisms. The City will not support a stadium project that does not include a plan to remediate and develop the balance of the property. The City supports developing the balance of the property with compatible land uses. The Terms: The TCAAP site (430 acres)will be acquired from the U.S. Army by the County. The Team will immediately acquire from the County 170 acres (the"Private Land") that are not needed for stadium-related development. The Team shall retain development rights for eight years after the stadium opening. If the Team has not commenced private development or - provided the County with a reasonably acceptable development plan within eight years, the County shall have the option to purchase the Private Land from the Team at the current fair market value. The environmental conditions of the entire TCAAP site will be remediated in accordance with the requirements of the U.S. Army. Should the proposed development of the Private Land require that the land be remediated to a higher standard, the Team shall pay for any additional costs associated with such remediation. Staff Comment: The March 21, 2011, letter was written prior to the Terms, and so the letter does not address differences in the City approval processes for the stadium and the Private Land. It is the City's position that the Private Land must go through the standard City approval process. If the County chooses to repurchase the land after eight years, it is required to pay the then- current market value as determined by an appraisal. The 2023 (2015 stadium opening plus eight years)market value will be affected by the proximity of the stadium development. The County would likely need to pay significantly more to purchase the land from the Team in 2023 than the Team will pay to acquire the land from the County in 2011 or 2012. If the market value of the land is high, it becomes unlikely that the County could repurchase the Private Land in order to promote private development. The Team has no penalty for failing to develop the Private Land within eight years other than the risk that the County could repurchase the Private Land. City of Arden Hills City Council Meeting June 1, 2011 Page 2 of 5