08-05-2024 JDA Agenda Packet - Laserfiche WebLink

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Mr. Kimmel reported this was the case. He explained if the County were to issue $40 million in bonds, this would be unsecured and would be backed by the levy. This funding would be hinged on when the developer would buy the land. If the deal were to go sideways, the County would be stuck with the $40 million in bonds. He discussed how assessment bonds were a first lien that would go above a mortgage if there was a default. He explained there would still be a risk, but there was some security over the GO Bonds. He commented the County needs to understand when the developer would purchase the land and how much up front escrow would be put down as collateral to buy the land. Also, the County needs to understand how cost overruns will be addressed. He stated if a point could be reached where the City is taking part of the load and the County is taking part of the load, hopefully this enables the developer to put more on the table in terms of risk mitigation and a place can be reached to move the project forward. Commissioner Reinhardt stated a verbal agreement or proposal has been offered by the developer. She understood that has to be put in writing. Ms. Mitchell explained what was discussed in June was a conceptual framework. Commissioner Monson asked if Alatus could come forward to speak to the JDA. Bob Lux, Alatus, stated the reason an offer has not been presented is because he was waiting on a contract from Kimley Horn that the County signed a week ago. He reported he needs this because it informs the work that has to be done. He indicated he could not put a number on the table until he has this document. He explained the RFP was written very wisely because it includes the spine road and as well as addressing the geotechnical soil corrections within the development. He commented on how soil would need to be exported and remixed because it was structurally unsuitable. He stated the proposal was in the form of a letter of intent to purchase the property. He explained he was enthused about where this project was at and the equal amount of risk that was being placed on each party. He indicated Alatus would be putting up a significant amount of money, the County would be putting up funding for a three year period and he would have to work out with the City the 429 bonds that would be needed for infrastructure. He discussed how Carla Dunham and Tony Kuechle had been brought in to the project. He indicated he had reshaped his firm in order to be prepared for this development. He described how the TGRS water treatment system has to be moved from the property. He explained the next JDA meeting was scheduled for Monday, August 5 and he should be able to review the contract at that time. Acting Chair Frethem stated she had good discussions with federal representations about moving the TGRS water system and explained there was good support. Mr. Lux commented further on what would have to be done in order to begin the mass grading. He stated the large excavation companies were looking for work. He estimated it would take 12 to 15 months to complete the mass grading work. He was of the opinion this project was further along than all of the parties may realize.