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ARDEN HILLS CITY COUNCIL — APRIL 8, 2024 2 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Perrault stated the Joint Development Authority last met on April 1st, at that meeting the JDA received updates on communications, the County's Bonding request, the energy committee, and the status of ongoing discussions. As far as development discussions go, City and County Staff, Alatus and Ehlers have been working on funding for the horizontal infrastructure. Latest estimates have put the cost of the horizontal infrastructure somewhere between $86 million and $100 million. We won't know what the exact gap in funding is until we know how much, if any, of the County's request for State Funding is decided at the legislature. Once we know how much the State is going to fund, we'll know what still needs to be solved for and work on identifying additional funding sources. Other development news, the Met Council officially approved the Comp Plan amendments, which allow for a maximum density of 1,960 housing units and later on tonight's agenda the Council will be reviewing a TRC amendment that is cleaning up language regarding the process development approvals. The energy committee recently heard a presentation by Xcel Energy on residential and commercial programs they offer to assist in making projects more sustainable, these programs will be open to RCC and Alatus is already very familiar with them. The advisory committee has not met since the last JDA meeting. Councilmember Holden stated at the last JDA meeting a comment was made about the developer already having $13 million in debt with this project. City Administrator Perrault explained the County had asked the developer if or what they could invest in regarding the horizontal infrastructure in order to get the project moving and Alatus has identified somewhere between $10 and $15 million for the horizontal infrastructure. Councilmember Holden requested further information regarding who would be responsible for the City's portion of the water utilities if the development were to halt. She then read a portion of the minutes from the Council's last meeting, noting the City's position was that if the development halts, the assessments would fall on the property owner, which was Ramsey County, and meaning the City would not be stuck holding debt for these improvements. She asked how the City would get debt service money from the County. City Administrator Perrault stated the County would have to agree to an assessment agreement like any other entity. He reported it was his understanding the County could be assessed like a private entity. He indicated this was Ehlers understanding as well and was memorialized and approved in the JPA from 2012 or 2013. He explained the development agreement would have to affirm this language. Councilmember Holden questioned if the JPA was a real agreement. City Administrator Perrault stated the JPA was a legally enforceable agreement. He indicated the JPA states the City will recover costs through its special assessment process or the 429 process. Councilmember Holden expressed concern that the City would be responsible for costs if the project halts unless another agreement is put in place with the County. City Administrator Perrault explained this would be approved by the developing parties (City, County and developer) when the financing mechanisms are determined.