11-03-2025 JDA Agenda Packet - Laserfiche WebLink

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financial contribution. The County insisted the City sign off on this within four days, which occurred over a holiday weekend. The City indicated they would have to take this matter back to the taxpayers but offered the opportunity to negotiate the differences/sticking points. He explained the County agreed to special worksession in early 2017 to hammer out the sticking points but never showed up for the meeting. In fact, the County boycotted all subsequent JDA meetings for the next four years and ultimately sued the City for being an unwilling partner despite the City continuing to show up at all scheduled meetings. He reported the County withdrew its funding and participation in the JDA and focused on other redevelopment projects in the County, one being the Rivers Edge Project in St. Paul. He noted the Rivers Edge Project was completed with zero affordable housing units in downtown St. Paul. Meanwhile, the County sued the City of Arden Hills for being an unwilling partner and sought to have the County nullify the joint powers agreement citing a hopeless impasse. He reported during court ordered mediations, the City offered a higher level of density, which was rejected by the County. After the court rejected the County’s claim that the City was the unwilling partner, the court suggested the City and developer start direct negotiations and this was done. He stated a new term sheet was produced where the developer greatly reduced the financial risk for Arden Hills taxpayers. He indicated the County then rejected that agreement insisting that the City accept higher housing density and affordable levels or else. Chair Wicklund asked that Mr. Scott get to his conclusion. Mr. Scott noted from 2016 to 2022 was considered a golden time to start construction because interest rates were low, construction costs were low and the job market was strong. However, the County squandered this opportunity for reasons that have not been explained. He asked at what point do the taxpayers get an honest and transparent of the projects viability and costs. He noted a current member of the JDA recently vowed to move the project forward but he stated at the edge of a cliff moving forward may not be the most prudent action. He explained Ryan Companies saw this many years ago and now the Arden Hills taxpayers are wondering how much of their funding will be poured into this risky project. Megan Howard, 1323 Watson Avenue in St. Paul, supported this development moving forward because the Twin Cities desperately need more housing. She encouraged the JDA not let perfect become the enemy of good. She recommended the proposed plan move forward in order to provide more housing. Paige Kahle, resident of St. Paul, explained she was with Yes in my Backyard. She questioned if now was the time to talk about the development. Chair Wicklund stated now would be the time to speak. Ms. Kahle thanked Director Mitchell for reaching out to her today regarding this project. She indicated she has been in communications with Bob Lux with Alatus as well as Maplewood Development. She commented she has heard their side of the story and understood the JDA decided to allow the agreement with Alatus to expire back in June. She explained after