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ARDEN HILLS CITY COUNCIL — JUNE 10, 2024 2 Please note, they are still significant financial and development agreement items to be worked through regardless of the sports complex. Lastly, the next JDA meeting is slated for July I st, it is still being decided whether or not to hold that meeting, cancel it, or reschedule, watch the City's website for updates on the meeting. Councilmember Monson thanked City Administrator Perrault for all of his efforts with County staff. She explained the JDA has not met recently. She noted there was a $40 million gap in funding for this project for soil correction and mass grading. She indicated this cost is typically assumed by the landowner and developer and this was agreed to by the County in the past. However, now that the County was in a different financial situation, the JDA was seeking other options for covering this expense. She explained the County was uncomfortable with bonding for this expense in the event the development does not move forward. She stated the JDA was seeking solutions to find financing. She indicated a TIF bond that was administered by the City was considered. She reported as the JDA representative, she did not believe this would be a wise decision for the City. She commented that a tax abatement structure was also considered and has not gotten traction given the up -front costs. She indicated alternate financial solutions were still being considered. Councilmember Fabel stated all discussions regarding finances have been held between City and County staff and the JDA has not been a part of the discussions. He explained there has been tremendous increases in infrastructure costs and interest rates have skyrocketed. He reported the County has come up with other objectives for their funding which means the JDA has not seen a manner in which to address the $40 million funding gap. It was his hope that a solution would be brought forward from the County or the developer. Until a solution comes forward, the project was at an impasse. He commented on how in the last year, it was determined some of the soil needs remediation, which would require additional funding. Councilmember Holden asked if the City was overbudget with Ehlers. City Administrator Perrault reported this was the case. Councilmember Holden questioned if staff had any other reports from Ehlers. City Administrator Perrault stated the Council has all reports that have been distributed from Ehlers. Councilmember Holden stated she understood one of the proposals from the County would have the County putting $10 million into infrastructure and the City would put in $10 million. She questioned if the County saw a problem with this given the different sizes of budgets for each entity. City Administrator Perrault explained this was just an idea that was spit balled. He reported the County wanted to have both the developer and the City to have skin in the game to help fill the gap. Councilmember Holden indicated the County has expressed concern with funding the $40 million given the fact the project could stall. She stated this was the same reason the City was asking for utility protection.