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HomeMy WebLinkAbout05-17-17 JDA Agenda Packet AGENDA Wednesday, May 17, 2017 5:30 p.m. Arden Hills City Hall—Council Chambers 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes a. None. 4. Public Inquiries/Informational a. The intent of the Public Inquiries/Informational part of the agenda is to provide interested parties with an opportunity to speak to the JDA about an issue or concern about a past or future agenda item. The current agenda for tonight's meeting is structured to ensure that the JDA accomplishes their business within that agenda. If there is a public hearing scheduled as an agenda item, the public will be invited to speak to that agenda item. In addressing the JDA, please state your name and address for the record, and a brief summary of the specific matter being addressed. To allow adequate time for each person wishing to address the JDA, individuals should limit their comments to three (3) minutes. Written documents may be distributed to the JDA prior to the meeting, or as bench copies, to allow a more timely presentation. 5. Consent Agenda 6. Old Business 7. Public Hearing a. None 8. New Business a. 2017-18 Budget b. Master Developer Agreement Update c. Amendment to the Preliminary Development Agreement 9. Communications – See attached memo. 10. Development Director Update – None. Joint Development Authority TCAAP Redevelopment Project 11. Administrative Director’s Report – Verbal. 12. Commissioner Updates 13. Adjournment Page 1 of 2 Joint Development Authority TCAAP Redevelopment Project DATE: May 12, 2017 TO: Joint Development Authority Board of Commissioners FROM: Josh Olson, JDA Administrative Director SUBJECT: 2017-18 Joint Development Authority Budget Budgeted Amount: Actual Amount: Funding Source: n/a n/a n/a Requested Action Approve the 2017-18 Joint Development Authority Budget. Background The attached budget spans 2017 and 2018. During this period, the JDA will negotiate a development agreement with a Master Developer, which may require changes to this budget over that two-year period. At this time, this is an estimate of ongoing costs related to professional services contracts for Legal and Public Finance, as well as any meeting expenses, insurance and conference expenses. Finally, a small contingency amount is included to cover any unforeseen costs. The attached Request for Board Action item entitled “Rice Creek Commons Annual Financial Report and Combined Project Budget” was submitted to the County Board in adherence to the JPA between Ramsey County and Arden Hills. This document is included for background purposes, and shows the project costs related to the clean up of the former TCAAP site. This information includes the JDA budget, but the JDA is not being asked to approve this document. At this point, prior to land sales and any potential grant monies, the JDA’s operations are funded through the TCAAP Project Account established by the County Board in 2012. Balance is $268K. Staff anticipates that land sale and fee revenue will support future JDA budgets. Per the Joint Powers Agreement, Ramsey County provides financial services to the JDA. Per the JPA, the Joint Development Authority must submit this budget to the City and County upon approval. AGENDA ITEM 8A MEMORANDUM Page 2 of 2 Proposed JDA Budget 2017-2018 2016 2017 2018 Public Finance Consultant 120,000 120,000 120,000 Legal 40,000 40,000 40,000 Economic Development Services Communications 50,000 Insurance 3,675 3,675 3,675 Meeting Expense 1,200 1,200 1,200 Conferences and Training 7,000 7,000 7,000 Contingency 3,000 3,000 3,000 Total 224,875 174,875 174,875 Attachment A. Rice Creek Commons Annual Financial Report and Combined Project Budget 1 REQUEST FOR ACTION RAMSEY COUNTY BOARD OF COMMISSIONERS Requesting Department: Economic Growth and Community Investment Service Team B2017-41 Committee: Board of Commissioners Meeting Date: 3/7/2017 SUBJECT : Rice Creek Commons Annual Financial Report and Combined Project Budget REQUESTED ACTION 1. Accept the 2016 Rice Creek Commons Annual Financial Report. 2. Approve the 2017 Rice Creek Commons Combined Project Budget. 3. Authorize the County Manager to make all necessary budget adjustments includ ing increasing estimated revenues and appropriations for the Rice Creek Commons Combined Project. EXECUTIVE SUMMARY On November 27, 2012, by Resolution 2012-342, the Ramsey County Board of Commissioners approved the Joint Powers Agreement with the City of Arden Hills for redevelopment of the Twin Cities Army Ammunition Plant (TCAAP) site and authorized the establishment of the Joint Development Agency (JDA). Under the Joint Powers Agreement, the JDA is required to present to the County an annual financial report and budget. This Request for Board Action is to submit the 2016 Annual Financial Report (Attachment 2) for revenues and expenditures related to the redevelopment of the Rice Creek Commons or “RCC” site (formerly known as TCAAP) and to submit the 2017 RCC Combined Project Budget (Attachment 3) that is accounted for in three projects budgets: RCC Development account, RCC Land Acquisition and Remediation account, and RCC Pre-development account. FISCAL IMPACT This Request for Board Action is to present the 2016 Annual Financial Report and 2017 Combined Project Budget. No new or additional project funding is requested at this time. COUNTY MANAGER COMMENTS Under the Joint Powers Agreement, the Ramsey County Board is required to receive an ann ual financial report and budget for the RCC project. PREVIOUS ACTION On March 1, 2016, the County Boar d accepted the 2015 RCC Annual Report and approved the 2016 RCC Combined Project Budget. On September 8, 2015, the County Board amended the RCC Combined Project Budget to complete the County Road H improvements; authorized the amendment of the Capital Improvement Plan Budget; authorized the transfer of Solid Waste Funds to the RCC Land and Acquisition and Remediation Account; and authorized a transfer of Boys Totem Town Bond proceeds to the RCC Pre-Development Project Budget (Resolution B2015-285). Rice Creek Commons Annual Financial Report and Combined Project Budget 2 On April 7, 2015, the County Board accepted the 2014 TCAAP Annual Report; approved the TCAAP Combined Project Budget; and authorized the transfer of County General Fund to the TCAAP Pre-Development Project Budget (Resolution B2015-117). On February 11, 2014, the County Board accepted the TCAAP Annual Report, Budget and Contingent Account Request (Resolution 2014-053). On February 4, 2014, the County Board approved the Joint Powers Agreement with Saint Paul Port Authority (Resolution 2014-047). On December 17, 2013, the County Board approved the 2014-2015 Capital Improvement Program Budget (Resolution 2013-358). On July 16, 2013, the County Board accepted the Public Involvement Plan for the TCAAP Master Plan (Resolution 2013-195). On November 27, 2012, the County Board approved the Land Acquisition, Remediation, and Financing Plan for TCAAP Project (Resolution 2012-343), and the Joint Powers Agreement with Ar den Hills (Resolution 2012-342). On September 25, 2012, the County Board approved the Carl Bolander & Sons Agreement Amendment (Resolution 2012-277). On June 19, 2012, the County Board approved the TCAAP Land Acquisition (Resolution 2012 -189). On February 7, 2012, the County Board approved the Carl Bolander & Sons Agreement (Resolution 2012-048). On November 15, 2011, the County Board approved the offer to Purchase 430 Acres of TCAAP Property (Resolution 2011-330). On February 15, 2011, the County Board approved the transfer of funds for redevelopment of the TCAAP site from 2011 Contingent Account (Resolution 2011-075). ATTACHMENTS 1. Draft Resolution 2. Rice Creek Commons 2016 Annual Financial Report 3. Rice Creek Commons 2017 Combined Project Budget Draft Resolution 1 2 WHEREAS, The Ramsey County Board approved the Joint Powers Agreement 3 with City of Arden Hills for the redevelopment of the Twin Cities Army Ammunition Plant, 4 now known as Rice Creek Commons site; and 5 6 WHEREAS, The Ramsey County Board is to be provided with an annual financial 7 report and adopt an annual budget for the Rice Creek Commons site; and 8 9 WHEREAS, The Ramsey County Board approved the Rice Creek Commons 10 Annual Report, the Rice Creek Commons Combined Project on March 1, 2016; Now, 11 Therefore, Be It 12 13 RESOLVED, The Ramsey County Board of Commissioners accepts the 2016 14 Rice Creek Commons Annual Financial Report; and Be It Further 15 16 RESOLVED, The Ramsey County Board of Commissioners approves the 2017 17 Rice Creek Commons Combined Project Budget; and Be It Further 18 19 RESOLVED, The Ramsey County Board of Commissioners authorizes the 20 County Manager to make all necessary budget adjustments including increasing 21 estimated revenues and appropriations for the Rice Creek Commons Combined Pr oject. 22 23 Page 1 of 1 Joint Development Authority TCAAP Redevelopment Project DATE: May 12, 2017 TO: Joint Development Authority Board of Commissioners FROM: Administrators Olson and Joynes SUBJECT: Master Development Agreement Update TCAAP Joint Development Authority Staff will provide an update on the Master Development Agreement with Alatus Arden Hills LLC. AGENDA ITEM 8b MEMORANDUM Page 1 of 1 Joint Development Authority TCAAP Redevelopment Project DATE: May 12, 2017 TO: Joint Development Authority Board of Commissioners FROM: Administrators Olson and Joynes SUBJECT: Master Developer Preliminary Development Agreement – Amendment No. 2 Background: The Preliminary Development Agreement (PDA) is a document that serves to outline the responsibilities of the Joint Development Authority (JDA) and Alatus Arden Hills LLC during negotiations for a Master Development Agreement (MDA). The JDA approved a Preliminary Development Agreement (PDA) with Alatus Arden Hills LLC on June 6, 2016. The PDA was amended on December 21, 2016, extending the agreement for five months (May 31, 2017) and included revised milestones dates. The current PDA is set to expire May 31, 2017. The proposed second amendment to the PDA continues to guarantee Alatus that the JDA will negotiate only with them during this period, and revises a benchmark for delivering good faith efforts in the development of a MDA. This proposed amendment identifies certain respective design and civil engineering responsibilities prior to execution of a MDA by the JDA. Staff from the JDA and representatives from Alatus Arden Hills LLC have agreed to this form. Attachment a. Amendment No. 1 Preliminary Development Agreement with Alatus Arden Hills LLC JDA Action Requested: Approve the Amendment No.2 to Preliminary Development Agreement with Alatus Arden Hills LLC AGENDA ITEM 8c MEMORANDUM 1 AMENDMENT NO. 2 TO PRELIMINARY DEVELOPMENT AGREEMENT THIS AMENDMENT NO. 2 TO PRELIMINARY DEVELOPMENT AGREEMENT (“Amendment No. 2”) is made as of the ___ day of May, 2017, by and between the TCAAP JOINT DEVELOPMENT AUTHORITY, a Minnesota joint powers entity (“JDA”) and ALATUS ARDEN HILLS LLC a Minnesota limited liability company (“Developer”). RECITALS: A. The JDA and the Developer are the Parties to that certain Preliminary Development Agreement dated June 6, 2016, as amended by Amendment No. 1 dated October 31, 2016 (the “Agreement”). B. The JDA and the Developer wish to further amend the Agreement to, among other things, reflect changes in certain dates set forth in the Agreement and to agree to certain respective design and civil engineering responsibilities prior to execution by the Parties of the Contract (as defined in the Agreement). NOW THEREFORE, in consideration of the premises and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as set forth below. AGREEMENT: 1. Definitions. Unless otherwise specifically stated herein, all capitalized terms used in this Amendment No. 2 will have the meanings ascribed to them in the Agreement. 2. Amendments. (a) In each and every place in the Agreement where the date “February 28, 2017” appears, said date is hereby deleted and the phrase “July 31, 2017, or 75 days following execution by the Governor of Minnesota of the Governor’s concurrence with the Finding of Suitability for Early Transfer regarding an approximately 30 acre portion of the TCAAP Site (“FOSET”) (whichever is later),” substituted therefor. (b) In each and every place in the Agreement where the date “May 31, 2017” appears, said date is hereby deleted and the phrase “December 31, 2017, or 225 days following execution by the Governor of Minnesota of the Governor’s concurrence with the FOSET (whichever is later),” substituted therefor. 2 (c) A new Section 8 to the Agreement is agreed to as follows: 8. Certain Design and Engineering. (a) As set forth below, certain of the obligations of the Parties to perform under this Section 8 are conditioned upon the execution by the Governor of Minnesota of the Governor’s concurrence with the FOSET (“Governor’s Concurrence”). (b) This Section 8 is agreed to by the Parties (and acknowledged and agreed to by the County) for the purposes of undertaking certain design and civil engineering activities related to the Project on portions of the TCAAP Site as depicted on Exhibit A. The terms “East” and “West” means the areas so described and identified on Exhibit A. (c) Upon execution of Amendment No. 2, the County (as a member of the JDA and as a party acknowledging this Agreement), will direct the County’s consulting engineer, Kimley-Horn and Associates, Inc., (“KH”) to share information consistent with the County’s rights and obligations under this Agreement and coordinate with the Developer’s consulting engineer, Alliant Engineering Incorporated, (“Alliant”) to ensure that Alliant’s efforts within the East are coordinated with KH’s design on the West. (d) Upon execution of Amendment No. 2, the Developer will direct Alliant to share information consistent with the Developer’s rights and obligations under this Agreement and coordinate with KH to ensure that Alliant’s efforts within the East are coordinated with KH’s design on the West. (e) Within two (2) business days after the Governor’s Concurrence, the County will engage KH to complete the civil engineering design and prepare construction plans and specifications necessary for the County to issue a public bid package by the later of January 31, 2018 or 255 days after the Governor’s Concurrence (with planned bid opening in March, 2018 or 315 days after the Governor’s Concurrence, whichever is later) related to grading within the West. (f) Within two (2) business days after the Governor’s Concurrence, the Developer will: i. enter into a contract with Alliant (or another consulting engineer (“Developer’s Engineer”) selected by Developer if Developer agrees to reimburse the County for the County’s reasonable costs necessary to have KH share information and coordinate with Developer’s Engineer) to complete by January 31, 2018 or 255 days after the Governor’s Concurrence (whichever is later) the engineering design and prepare construction plans and specifications related to the grading within the East based on the Developer’s required schedule for development within the East; provided that the Developer will be responsible for only rough grading design, plans and specifications of the natural resource corridor in the East (i.e. the areas labeled as #35 and #36 in Exhibit A); and ii. authorize Alliant or Developer’s Engineer to participate in and review the civil engineering work being done by KH within the West. 3 (g) With regard to those portions of the “TCAAP Groundwater Remediation System” (“TGRS”), owned and operated by the United States Army (“Army”), and located within the TCAAP Site, the Parties and the County are anticipating delivery from the Army in July 2017 of a study to optimize the remedies of the contamination in the groundwater of the TCAAP Site (the “Study”). The Study may result in changes to the TGRS. The Parties recognize and agree that if the Study is not released by July 15, 2017, the schedule under this Agreement may be impacted and the Parties will negotiate in good faith to revise the schedule as required. Upon release of the Study and agreement between the Parties on a revised schedule: i. The County will authorize KH to make required revisions, based on the Study, to the civil engineering design and plans and specifications described in (e) above; and ii. the Developer will authorize Alliant or Developer’s Engineer to make required revisions, based on the Study, to the civil engineering design and plans and specifications described in (f) above. 3. Acknowledgement. The County and the Developer desire and intend to enter into this Amendment No. 2 to engage design and civil engineering services to enable the pre-development process to proceed timely, recognizing, however, that this Agreement, as amended, and the performance of its terms and conditions and the covenants and agreements shall not be interpreted or construed as establishing any obligation or expectations on either the County or the Developer with respect to the TCAAP Site, the Contract or the Purchase Agreement, except as expressly stated in this Agreement. 4. Reference to and Effect on the Agreement. (a) Upon the effectiveness of this Amendment No. 2, each reference in the Agreement to the “Agreement,” “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import referring to the Agreement shall mean, and be a reference to the Agreement as amended hereby. (b) Except as specifically set forth herein, the Agreement remains in full force and effect and is hereby ratified and confirmed. (c) Wherever there exists a conflict between this Amendment No. 2 and the Agreement, the provisions of this Amendment No. 2 shall control. 5. Governing Law. This Amendment No. 2 shall be governed by and construed in accordance with the laws of the State of Minnesota. 6. Headings. Section headings in this Amendment No. 2 are included herein for convenience of reference only and shall not constitute a part of this Amendment No. 2 for any other purpose. 4 7. Counterparts. This Amendment No. 2 may be executed in counterparts, all of which, when taken together, shall constitute one and the same original. 5 IN WITNESS WHEREOF, the Parties have executed this Amendment No. 2 as of the date first written above. ALATUS ARDEN HILLS LLC By _____________________________ Its ______________________________ 6 TCAAP JOINT DEVELOPMENT AUTHORITY By _____________________________ Its Chair By _____________________________ Its JDA Administrator 7 AGREED AND ACKNOWLEDGED: COUNTY OF RAMSEY, MINNESOTA By _____________________________ Its Deputy County Manager 01 02 03 04 05 06 33 32 0708 09 31 11 12 30 10 27 35 34 36 18 22 21 26 20 23 25 16 15 17 19 14 28 29 13 38 37 24 EXHIBIT A MASS GRADING AREAS - DRAFT 2017.05.10 “WEST” VS “EAST” “WEST” AREA “EAST” AREA Page 1 of 1 Joint Development Authority TCAAP Redevelopment Project DATE: April 27, 2017 TO: Joint Development Authority Board of Commissioners FROM: Sara Thatcher, Goff Public SUBJECT: Rice Creek Commons Communications We continue to work closely with the City and Alatus’s communications teams. We jointly responded to a request from the Star Tribune regarding affordable housing on the site. We are still awaiting the publication of this story. Over the past several months, we have received dozens of inquiries about residential housing through the website and are working with Alatus to maintain a list of people who have expressed interest in purchasing property at Rice Creek Commons. AGENDA ITEM 9 MEMORANDUM