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ARDEN HILLS SPECIAL CITY COTINCIL WORK SESSION _ NOVEMBER7,2024 Interim City Administrator Jagoe asked Stacie Kvilvang to highlight information regarding the redlined Term Sheet or any conversations with Alatus. Stacie Kvilvang said there were no significant changes. She said it's been updated with today's terms based on other actions that the JDA and Council have made. The changes are in the number of total units and the number of affordable units. There isn't a lot of difference between this and what was agreed to in2022. One of the clarifiers is how we will pay for public improvernents. Under the JPA the City is required to pay for the utilities under the spine road and the water tower. The JPA stated we have the option to special assess those improvements. The county was concerned about that before because they were holding the land and didn't want to have to pay those assessments if the land didn't sell. Now the County is looking to have Alatus buy the land outright. Alatus put in a clarification that they are requesting the City to issue 429 Assessment Bonds for those improvements and they would sign a waiver of petition for those. They would pay 100% of the debt service on those with special assessments. That is the prefened method of payment because it is the least risk to the City. Stacie Kvilvang said the only clarifier that they don't have is to potentially request the City issue 429 Assessment Bonds for the private roads and utilities in the single-family neighborhoods and possibly town center. This is not an atypical request. It is 100% assessed and there is no risk to the City. The developer would like to revisit the Parks MOU and the civic space. Things may have changed for parks and they want to make sure the best plan for the City is created. The developer is required to pay for the improvements up front and they get reimbursed through the Park Dedication Fees as they are paid at the time of the building permit. They also want to check in on the option for the civic space. The agreement states the City will retain it. Recent discussions indicate the same. They just want to revisit it to make sure the terms still stand and make sense. The TIF request didn't change. Councilmember Holden said the Public Works facility isn't on there. That's over $2 million. Some maintenance items aren't on there and she wants to make sure the City won't be on the hook for those things. She said just because a 429 bond is assessed on a property, doesn't mean it will be paid for. Stacie Kvilvang said Alatus had previously agreed to pay for the Public Works facility. That was a different financing time. What they put in there is that they are open to paying for that but want to have discussion depending on what the structure is for their deal with the County. So, it's still on the table. Councilmember Holden said the City is last. She wanted clarification that because the developer made a deal with the County they will just say too bad to the City and that they aren't going to pay for it. Stacie Kvilvang said the old deal with the County was that the County was going to hold the land and Alatus would take it down in chunks. With the new agreement Alatus will have to purchase the site for $40-$50 million. That changes their financing parameters for everything. Additionally, the interest rate environment has changed since 2022. They aren't saying yes or no, they are saying they want to see how everything comes together and figure it out. Stacie Kvilvang said once the 429 Assessments are issued in the waiver of petition, the assessments go to the County and they are assessed to the property. That will happen when Alatus