04-01-2024 JDA Agenda Packet - Laserfiche WebLink

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Ms. Mitchell reported on August 22, 2023, an overview of all proposals was given in a closed session of the Ramsey County Board. On October 2, 2023, the TCAAP Joint Development Authority (JDA) received a presentation on the top three proposals and recommended a proposal from Ryan Companies, labeled in the presentation as Proposal A, to the Ramsey County Board for consideration. Ms. Mitchell explained on October 10, 2023, the Ramsey County Board met in closed session to review the JDA‘s recommendation and directed staff to move forward with negotiations with Ryan Companies. Staff worked with Ryan Companies to negotiate a Letter of Intent (LOI), signed on November 6, 2023, and then began drafting a Purchase and Sale Agreement (PSA). Ms. Mitchell indicated a Purchase and Sale Agreement was negotiated based on Ryan Companies’ concept plan for build-to-suit light-industrial/office and retail development that includes placemaking aspects and pedestrian access to the adjacent Rice Creek Regional Park trails and open space. The Purchase and Sale Agreement provides for an inspection period up to 15 months, during which Ryan Companies will complete their due diligence on the property. The sale transaction is anticipated to close in early 2025, with site development work to begin thereafter. A closed session of the Ramsey County Board was held on January 9, 2024, where the Ramsey County Board reviewed the terms of the PSA and the timeline associated with the proposed Outlot A site development. Ms. Mitchell stated on January 16, 2024, the Ramsey County Board voted unanimously to approve and execute the PSA with Ryan Companies, and the PSA was fully executed on January 17, 2024. Ryan Companies thus commenced the due diligence period and began working directly with City and County staff on predevelopment activities such as entitlement process and document review. Media coverage of Outlot A is described in agenda Item 8c, Update on Communications. The disposition of Outlot A to Ryan Companies will result in land sale proceeds of $12,751,319, which will be deposited into the County Rice Creek Commons Project account for future reinvestment into the Rice Creek Commons development. Commissioner Reinhardt appreciated how Ryan Companies was working to meet the JDA’s energy goals. Commissioner Fabel agreed the energy goals were terrific. He indicated he was troubled by the 15-month due diligence period and asked if Ryan Companies could walk away from the project. Ms. Mitchell explained earnest money has been paid by Ryan Companies towards the closing price. She indicated Ryan Companies sees a great deal of value in the site and offered the County $12.75 million for the property. In addition, they have end users that were interested in the site. She stated she could not speak to what would happen if Ryan Companies were to walk away in 15 months. She reported she could speak to legal counsel to get further information regarding this matter. She commented on how the County has made Ryan Companies aware of the fact two JDA members, the County Commissioners, would not be running for re-election and that it would be beneficial to move this project along sooner rather than later.