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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — JANUARY 3, 2023 10 Councilmember Fabel asked who drafted this agreement. City Attorney Jamnik explained the base document was drafted by Jenny Boulton from Kennedy & Graven but noted the red lines were from Jay Lindgren, Alatus' attorney. He stated in November of 2018, the County stated their circumstances had changed and they were not willing to move forward and litigation commenced in March of 2019. Mayor Grant reported when the City put together the May 2022 proposal, Jay Lindgren took part in these discussions. City Attorney Jamnik commented further on how the developer was proposing to finance and complete some of the infrastructure. Councilmember Monson asked why the City was unable to finance the infrastructure. City Attorney Jamnik reported the main issue was the financial risk exposure of putting in infrastructure if the development stagnates. He stated if the City were to bond to complete the infrastructure, the property would have to develop in a timely manner in order to generate revenues to pay off the bonds. He explained the County, at one point, was working on a mechanism to guarantee the fiscal position of the City, but the details had not been worked out in 2018. He indicated this has always been an acknowledged concern of the City in negotiations. He reported the Bob Lux/Alatus proposal and term sheet addresses this stability concern. Councilmember Holden stated it was common where developments are started, Cities get stuck paying for infrastructure and the development fails. She noted the City of Ramsey had to be bailed out by the State of Minnesota. City Attorney Jamnik commented on several residential developments that stagnated in 2007 and 2008 after the market crashed. Councilmember Fabel inquired if the County or the City had ever been on board with the draft master development agreement. City Administrator Perrault explained the City agreed with most of the execution ready master development agreement from Alatus. Mayor Grant stated the Council wanted to see the development move forward. Councilmember Holden agreed, noting the City had its part of the agreement done. Councilmember Monson asked what other financial offerings the County made to the City. City Administrator Perrault stated the only other financial offerings were through the 429 assessment process. He explained the issue was the County did not want to be assessed for any of the infrastructure improvements even though they were the property owner. He reported the County did agree to the 429 process in the summer of 2018.