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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION – JANUARY 3, 2023 10 <br /> <br />Mayor Grant reported when the City put together the May 2022 proposal, Jay Lindgren took <br />part in these discussions. <br /> <br />City Attorney Jamnik commented further on how the developer was proposing to finance and <br />complete some of the infrastructure. <br /> <br />Councilmember Monson asked why the City was unable to finance the infrastructure. <br /> <br />City Attorney Jamnik reported the main issue was the financial risk exposure of putting in <br />infrastructure if the development stagnates. He stated if the City were to bond to complete the <br />infrastructure, the property would have to develop in a timely manner in order to generate <br />revenues to pay off the bonds. He explained the County, at one point, was working on a <br />mechanism to guarantee the fiscal position of the City, but the details had not been worked out in <br />2018. He indicated this has always been an acknowledged concern of the City in negotiations. He <br />reported the Bob Lux/Alatus proposal and term sheet addresses this stability concern. <br /> <br />Councilmember Holden stated it was common where developments are started, Cities get stuck <br />paying for infrastructure and the development fails. She noted the City of Ramsey had to be <br />bailed out by the State of Minnesota. <br /> <br />City Attorney Jamnik commented on several residential developments that stagnated in 2007 <br />and 2008 after the market crashed. <br /> <br />Councilmember Fabel inquired if the County or the City had ever been on board with the draft <br />master development agreement. <br /> <br />City Administrator Perrault explained the City agreed with most of the execution ready master <br />development agreement from Alatus. <br /> <br />Mayor Grant stated the Council wanted to see the development move forward. <br /> <br />Councilmember Holden agreed, noting the City had its part of the agreement done. <br /> <br />Councilmember Monson asked what other financial offerings the County made to the City. <br /> <br />City Administrator Perrault stated the only other financial offerings were through the 429 <br />assessment process. He explained the issue was the County did not want to be assessed for any of <br />the infrastructure improvements even though they were the property owner. He reported the <br />County did agree to the 429 process in the summer of 2018. <br /> <br />Councilmember Monson believed the next steps were for the new Councilmembers to meet with <br />Stacie Kvilvang. <br /> <br />Mayor Grant agreed. He noted the Council would also have to decide how to move forward <br />with the Civic parcel. He appreciated the information that had been discussed at this meeting for <br />the new Councilmembers in order to understand the history of this project. He was of the opinion <br />Bob Lux would still stand behind the terms sheet. He believed it would be an advantage for the