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cityofardenhills.org • Dec. 2024 • 1 <br />The Official City Newsletter for Arden Hills Residents December 2024 <br />Franchise Fees Update <br />On October 28, a Public Hearing was <br />held at City Hall, where staff shared a <br />presentation on the process the City <br />took to implement franchise fees in <br />2025. You can view the presentation <br />online at cityofardenhills.org/ <br />Franchise-Agreements. <br />The City Council adopted two already <br />existing franchise ordinances. One for <br />gas and one for electricity. They were <br />last adopted in 2009 and have a term <br />of 20 years. These ordinances allow <br />Xcel Energy permission to construct, <br />operate, repair, and maintain its gas <br />and electric distribution systems for <br />the purpose of furnishing energy for <br />public and private use within the City. <br />A new ordinance adopted by the <br />Council is for implementing electric <br />franchise fees. This franchise fee was <br />explicitly adopted to <br />help fund the new <br />Lake Johanna Fire <br />Department station, <br />expected to begin <br />construction in the <br />spring of 2025. It <br />will be collected by <br />Xcel Energy as part <br />of your monthly <br />energy statement and <br />remitted to the City. <br />The City will issue <br />bonds in the spring of <br />2025 to cover Arden <br />Hills’ portion of the <br />upfront costs associated with the <br />new fire station. <br />The collection of franchise fees is <br />expected to start in February of 2025 <br />to allow a full year of revenue <br />collection in order to pay back <br />bondholders in February 2026. <br />If you have any questions, please <br />contact Joua Yang, Finance Director, <br />at jyang@cityofardenhills.org or <br />651-792-7800. <br />Rice Creek Commons Clean Energy Analysis <br />At their November 4 meeting, the JDA agenda included a review of the Rice Creek Commons Clean Energy Analysis <br />Report prepared by the consultants Ever-Green and LHB. The report outlines options for clean energy to power the <br />site, including an analysis of geothermal, solar, and community district energy systems. It also reviews strategies for <br />reducing energy use in buildings and implementing other sustainability measures at the development. <br />The JDA discussed the feasibility of the development being all-electric based on the analysis in the report. In response <br />to questions about potential flexibility, LHB provided examples of waivers granted at The Heights redevelopment in St. <br />Paul, which has a similar all-electric policy, such as when an essential piece of equipment for a business did not have <br />an electric equivalent. <br />After discussion, the JDA approved the adoption of a policy stating, “Rice Creek Commons seeks to be an all-electric, <br />carbon-free development, and the JDA directs staff to identify steps to implement this policy and provide updates to <br />the JDA.” The next steps by staff and the Environmental Advisory Committee will be to finalize the draft sustainability <br />design guidelines and determine the JDA approval process for waivers, which will likely include further discussion at <br />the JDA and through community engagement. <br />For the most up-to-date information, please watch the City’s website, JDA meetings, and the project page at <br />ricecreekcommons.com. To view the Energy Analysis Report, visit cityofardenhills.org/agendacenter and download the <br />November 4 JDA meeting minutes. <br />Rates for New Xcel Energy Franchise Fee