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<br /> <br /> <br /> <br />May 29, 2014 <br /> <br />To: TCAAP Joint Development Authority <br /> <br />From: Mark Ruff, Ehlers <br /> <br />RE: Update on Financial Issues <br /> <br />Several items are on the short-term and long-term horizons concerning TCAAP financial <br />issues. A brief description of the current status of these issues and policy options for the <br />respective public bodies is below. No immediate action is necessary. <br /> <br />1. Financial Model. The basics of the financial model have been shared with the City <br />Council and the County Board. Chair Sand was able to hear the discussion as well. <br />The model will change on a continual basis as new information is received <br />concerning infrastructure costs, grant availability, financing requirements, market <br />conditions, and project timing. Generally, the model assumes land sales, fees, and <br />grants will pay for the City and County’s costs, but no surpluses or significant <br />contingency dollars are contemplated. In addition, the model does not reflect the <br />potential for significant economic development projects that may reduce fees or land <br />sale proceeds. <br /> <br />2. Land Sale Process. As the JDA is aware, the County has hired the St. Paul Port <br />Authority to market the commercial land. Even though the majority of the land will <br />not be ready for construction to commence until 2016, the Port is actively talking <br />with developers and builders about the site. For both the commercial and the <br />residential land, there are several procedural and policy considerations for later <br />discussion including: <br />- Platting process <br />- Minimum and maximum sizes of parcels to be marketed <br />- Structure of payments on land sales (how much is paid by the purchaser up-front <br />and how much paid as the property is developed?) <br />- When the first purchase agreements can be entered into <br />- Appropriate balance between larger developers and smaller builders <br />- Requests from land purchasers for environmental indemnification or insurance <br />- Impact of moving or reconstructing piping from wells to treatment facility <br />- Location required for parks, trails, open space, and necessary infrastructure <br /> <br />3. Developer Market Testing. The City has been working on fee structures for utility <br />costs, parks, and for its up-front costs associated with the planning of the project. The <br />County will likely charge some fees for storm water costs as well. We will be <br />working with the Port, with commercial developers, and with residential developers <br />to test our estimates for land prices, maximum utility fees, and the structure of fees