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Page 2 of 5 Developer Proposal Attached to this memo (see Attachment B) is a proposal by Alatus that outlines some of the outstanding MDA issues and potential solutions to these issues. This proposal by the developer represents one set of options, however, the developer is open to other ideas and/or changes to their proposal. The developer’s proposals are: • The City establish a TIF district to pay for the construction of a Community Center on the site. The City would then not charge an amount equivalent to the Met Council SAC fee; • The City charge a fee to recover its planning costs equal to the third party costs incurred by the City; • The County is requesting 161 additional units of Owner-Occupied homes to satisfy long- term planning goals. Metropolitan Council Sewer Availability Charge (SAC) Due to the former ammunition plant, the City currently has approximately 4,600 SAC credits on the site, and it is estimated the site will use approximately 2,400 SAC units at full buildout. This means the City would not be required to remit any Met Council SAC fee to the Met Council, and any associated fee, if charged, would be retained by the City as revenue for the City’s sewer fund (estimated at $5.8 million). The developer has questioned the legal basis for the fee, and has stated that this fee is too cumbersome on the development. To avoid any legal challenge, the City could size the City’s SAC fee to an equivalent amount. Larger issue: Does the City intend to charge this fee or can its goals be accomplished by utilizing another financing mechanism? Potential direction: -The City Council could charge the whole fee; -The City Council could charge a portion of the fee; -The City Council could not charge the fee in favor of another financing mechanism to accomplish City goals. Civic Space on TCAAP There is currently a 1.6 acre site on the TCAAP property that has been zoned for Civic Use, which is defined as Civic and Community Use. The City and developer have long discussed the potential for a community oriented building on that space, which has yet to be determined. Currently, there is language in the draft MDA that would allow the City the right to purchase the land for one dollar within two years of the MDA being signed, with the caveat that the City would need to construct an approved facility on the site within a given timeframe. The City would retain this right for up to seven years after the signing of the MDA, however, the cost to purchase the land increases as the years progress. The Council could give direction to retain this language in the MDA, alter the language, or remove the language all together.