04-02-18 JDA - Laserfiche WebLink

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be stuck with $8 million worth of infrastructure if no development occurred beyond 2019. Mr. Jamborn did not anticipate this would occur. He explained the details of the City's contribution to the TCAAP project still had to be addressed within the MDA. Commissioner Grant stated for the record the City had $8 million at risk within this project. He requested the JDA direct staff on how to acknowledge this risk. Commissioner Huffman stated staff understands they need to address the City's risk, but have not done it yet. He requested staff report back to the JDA with proposals that would address this risk, whether 429 or others, in order to mitigate the City's risk. Chair Wicklund summarized these comments stating the City of Arden Hills needs to understand the financial package and risks involved in recouping costs and the Commissioners are interested in seeing those packets of information so that the JDA can move forward in an educated fashion. Commissioner Grant commented he wanted the JDA staff to research a way to minimize the risk for the City of Arden Hills. Commissioner Huffman stated this question should be answered more broadly, from the City's perspective and from the JDA. Mr. Jambois stated all parties involved in this project were concerned about risk. He explained the project was being phased in order to mitigate some of the risk and to ensure the development is done in manner that begins creating tax revenue within Phase I. He anticipated it would be difficult to mitigate all risk, but stated the City's risk would be addressed. Commissioner Grant stated he had to look out for the City. He feared how the City would be impacted if Phase I were not to begin as planned. He explained the City would be out $8 million in infrastructure expenses and would have no way to recoup these expenses. He commented he would not leave the City at risk for the next two years for $8 million. He stated he wanted this Board to acknowledge the City's risk and to direct staff to find a way to mitigate this risk. He expressed concern that no one else was recognizing this risk and agreeing that it should be mitigated. Commissioner McClung agreed with Commissioner Grant. He explained there had been talks about using the 429 assessment process in order to mitigate the City's risk. He stated if this was not going to be pursued, the JDA needed to find another option to achieve the same result. He requested the JDA Board direct staff to investigate this matter further and to provide the JDA with options. Commissioner Grant supported the JDA staff looking at this further as well given that this was a significant item for the City to take on. He asked if the JDA could support directing staff to investigate this matter further.