08-05-2024 JDA Agenda Packet - Laserfiche WebLink

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Mr. Kimmel stated this was not the case. He reported when the accumulated interest is added in, the payments would be higher. Another issue is that the land value estimates assumed that the developer would pay for the neighborhood infrastructure. Using city special assessment bonds instead could help increase the land values to help the overall deal economics. It is a multifaceted deal where we are trying to see what combination of things might work. Commissioner Reinhardt explained she did not believe the land would be sold down in six years. She indicated the land would not be ready for sale until 2027 when the grading was complete. She commented this was not an ordinary development. Rather, this was 400+ acres of development so the timing would be different. Mr. Kimmel stated the extended timeframes for this development were making the finances difficult. He indicated Alatus has been working on a front loading take down of the land that could benefit the economics that would reduce the risks for the public parties involved. He stated he was waiting to see the details of this plan. Commissioner Reinhardt asked if there was a risk to the City to do the special assessment bonds. Mr. Kimmel explained there was a bit of a risk to the City to issue 429 special assessment bonds. He indicated they could be structured in a manner so that there would be some flexibility and the repayment was in sync with the planned development and sale of residential parcels. He commented the developer would be paying the assessments for some amount of time, but it would be better to have the payments to be spread out among multiple property owners. He reported this still has to be worked out and investigated further. He stated the City was already looking to do special assessments for the trunk water and sewer in the amount of approximately $15 million. Commissioner Reinhardt stated she looked forward to learning more about the new plan from Alatus. Director Perrault reported for both parties it comes down to risk tolerance. He explained the County was not willing to bond for $40 million, and neither is the City. He understood Alatus was talking to a private equity partner at this time. Acting Chair Frethem stated the risk reward balance has been a major topic between the three parties, especially given how costs and interest rates have increased. She reported the County’s financial position has changed a great deal. She understood the horizontal infrastructure has to be solved before any other federal and state bonding dollars can be assumed for affordable housing. She discussed how this project would take many years to build out and would come with a price tag of over $100 million. She stated she appreciated all of the work that was being done by the City, County, Alatus and Ehlers.