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<br />Joint Development Authority <br />TCAAP Redevelopment Project <br />o Interest rates are still high, despite recent decreases. <br />o Broader economic uncertainty. <br />o Competition with other metro area developments with fewer requirements and less <br />environmental legacy. <br />• Prevailing wage <br />o May be a barrier to developer participation due to increased costs. <br />o May require additional public subsidy. <br />o Concern about workforce availability. <br />o Clarity requested on what components of development it applies to. <br />• Housing <br />o Meeting affordability requirements will require public financing solutions. <br />o Distributing affordable housing around the development is preferable for the <br />community but increases complexity and cost. <br />o Ability to design, position, and price the market-rate for-sale housing as a premium <br />product makes the development more financially feasible. <br />• Sustainability <br />o Potential for increased costs due to sustainability goals to conflict with goals for <br />affordable housing. <br />o District energy system coordination required may increase complexity. <br />o Concerns about natural-gas powered equipment/systems that do not have an electric <br />equivalent. <br />o All-electric buildings may be unappealing to buyers/tenants if they perceive higher <br />operating costs or reduced comfort (due to heating/cooling technologies). <br />• Environmental Risks <br />o Market perception of environmental history. <br />o Risk of additional remediation needed during site preparation stage. <br />o Evolving regulatory requirements from MPCA and EPA. <br />o Developers may want additional assurances due to history of site. <br />“While the site’s sustainability vision (to be all-electric and carbon free) along with <br />affordability goals (20% homes at/below 60% AMI and capped purchase prices on <br />10% of for-sale units) are admirable and important, they may require careful <br />coordination with financing tools—such as TIF, grants, and utility cost participation— <br />to maintain project feasibility.”