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HomeMy WebLinkAbout10-18-17 JDA Agenda PacketAGENDA Wednesday, October 18, 2017 5:30 p.m. Arden Hills City Hall—Council Chambers 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes a. 9/20/2017 JDA Meeting 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 a. Master Developer Agreement Update b. Amazon HQ2 submission c. Optimization Study 7. Public Hearing a. None 8. New Business a. Green infrastructure study opportunity with Rice Creek Watershed District 9. Communications – See attached memo. 10. Development Director Update – Verbal. 11. Administrative Director’s Report – Verbal. 12. Commissioner Updates 13. Adjournment Joint Development Authority TCAAP Redevelopment Project Joint Development Authority Monday, September 20, 2017 Arden Hills City Council Chambers Minutes 5:30 pm Present: Joint Development Authority: Chair Jonathan Wicklund, Commissioner Blake Huffman, Commissioner Dave McClung, Commissioner David Grant, Commissioner Rafael Ortega Also present: Bill Joynes, (Arden Hills); Josh Olson, (Ramsey County), Louis Jambois (Ramsey County); Lee Mehrkens (Ramsey County); Bruce Kimmel (Ehlers); Jenny Boulton (Kennedy & Graven); David Perrault (Arden Hills) Roll call taken. Approval of Agenda Chair Wicklund added two items to the agenda, Item 8B - 2018 Meeting Schedule and Item 8C – JDA Income Statement Report. Motion by Commissioner Ortega seconded by Commissioner Grant to approve the agenda as amended. Motion carried. Approval of August 7, 2017 Minutes Motion by Commissioner Huffman seconded by Commissioner Grant to approve the minutes as presented. Motion carried. Public Inquiries/Informational None Consent Agenda None Old Business Master Development Agreement Update Director Olson provided the JDA with an update on the Master Development Agreement. He explained the County has had some personnel changes and described the roles of Lee Mehrkens and Louis Jambois with the County. Commissioner Grant requested further information on the optimization study. Director Olson provided the JDA with an update on the optimization study noting a summary report would be released in early October. Commissioner Grant questioned if the land transfer was being drafted by the County. Director Olson explained in late July the impending approval of an early transfer was discussed. This FOSET was approved by all entities on July 31st which will allow the County to close on the final 30 acres. He reported the County was working on this final transfer and the closing date had yet to be scheduled. Commissioner McClung asked when the JDA and City would be briefed on the preliminary findings within the optimization study. Director Olson stated he could draft a memo. Public Hearing None New Business Amazon HQ2 Director Olson stated the County was working to prep itself for an Amazon HQ2. He commented on the RFP and noted this was a sizeable North American call. Louis Jambois introduced himself to the JDA and noted he was consulting with the County at this time. He described how the Amazon proposal was causing the County to rethink the timing of this project. He explained the County intends to pursue Amazon as one of the entrants to the Rice Creek Commons site. It was noted the Amazon RFP was due on Friday, September 22nd. He believed the size of Rice Creek Commons fit the proposal well, as well as the freeway and A-line access to the property. It was anticipated a decision would be made by Amazon in early 2018. Chair Wicklund understood that Greater MSP and DEED was putting together a response to the RFP. He asked who was supportive or driving the desire for TCAAP to be the chosen location for Amazon. Mr. Jambois explained there would be numerous sites from the Twin Cities metropolitan area chosen for Amazon. From this, Amazon would then have to choose a site. Commissioner Huffman reported the County Commissioners were speaking with Greater MSP and DEED in order to draw their attention to the Rice Creek Commons site. Commissioner Huffman requested Alatus to speak to this potential project. Bob Lux, Alatus, believed the Amazon opportunity was rare and exciting. He understood that the City and JDA had created a well thought out plan for the site, but believed it would be extraordinary to accommodate a corporate campus for Amazon. He explained that Minnesota had a well trained workforce that was willing and able to make this happen. Tom Shaver, Alatus, reported he and his staff was working 24/7 with Mr. Jambois and the County in order to meet the RFP deadlines. Commissioner McClung was glad the County was playing to win for this opportunity. However, he understood other parts of the country would also be working to secure Amazon. He asked how going through this process would enhance the site if Amazon did not opt to locate in Arden Hills. Mr. Lux stated this activity has prepped Alatus and the County to address another national scale corporate campus effort. Chair Wicklund asked if Alatus was willing to keep this project on hold until a decision was reached by Amazon. Mr. Lux stated this would be an elongated process and he was willing to put plans on hold as the County and Alatus work through the RFP qualifying process. 2018 Meeting Schedule The 2018 JDA meeting schedule was provided to the members. JDA Income Statement Report The JDA income statement report through July was reviewed in detail. Development Director’s Report None Administrative Director’s Report None Commissioner Updates Commissioner Grant explained he supported the Amazon HQ2 proposal moving forward. Chair Wicklund agreed and stated he looked forward to hearing more from the County and Alatus on this endeavor. Future Meeting Schedule The next meeting will be Monday, October 2, 2017, at Arden Hills City Hall. Meeting adjourned at 6:09 pm. Approved _____________________________________ _______________________ Jonathan Wicklund, Chair Date Page 1 of 1 Joint Development Authority TCAAP Redevelopment Project DATE: October 11, 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 6a MEMORANDUM Page 1 of 1 Joint Development Authority TCAAP Redevelopment Project DATE: October 11, 2017 TO: Joint Development Authority Board of Commissioners FROM: Administrators Olson and Joynes SUBJECT: Amazon HQ2 TCAAP Joint Development Authority Staff will provide an update on the Amazon HQ2. Attachments: Rice Creek Commons Submittal to GreaterMSP/DEED AGENDA ITEM 6b MEMORANDUM Proposed Location RICE CREEK COMMONS Premier property in a thriving suburban community that can easily and immediately accommodate Amazon’s needs. Well-educated workforce High visibility and connectivity Sustainable design Shovel-ready ricecreekcommons.com Proposed Location RICE CREEK COMMONS 2 September 22, 2017 Shawntera Hardy Michael Langley Minnesota Department of Employment Greater MSP Partnership and Economic Development 400 Robert Street North, Suite 1600 332 Minnesota Street, Suite E100 Saint Paul, Minnesota 55101 Saint Paul, Minnesota 55101 Ladies and Gentlemen: We are pleased to present Rice Creek Commons as a potential site for Amazon’s Second Headquarters (HQ2). With an educated labor force, existing infrastructure, vibrant culture, welcoming and diverse community, an excellent quality of life, affordability, diversity of housing, and a stable business environment, Minnesota and specifically Rice Creek Commons is the logical choice for Amazon’s HQ2. The Rice Creek Commons site is a well-located, premier 427-acre property with extraordinary potential to immediately execute a well-planned development from the ground up. Considerable time, energy and funding has already been invested in preparation for an opportunity such as this, and the timing is perfect. As a shovel-ready site, Rice Creek Commons is currently in a unique position (both locally and nationally) to have immediate and future capacity to meet all of the building and site needs identified in Amazon’s HQ2 RFP. In addition, the selection of Rice Creek Commons for Amazon’s HQ2 and long-term benefit of adding 50,000 jobs has greater potential significance for the northeastern MSA than anywhere else in the Minneapolis/Saint Paul metropolitan area. Furthermore, a public-private partnership between Ramsey County, the City of Arden Hills, the Joint Development Authority, and Alatus, which make up the development team, has been established to maximize the value of this investment and deliver a world-class destination that is dynamic, economically strong, well- designed, well-integrated, and appropriately dense and diverse for long term growth and stability. Amazon is a bold, forward-thinking organization, and its aspirations for HQ2 perfectly align with our shared vision for Rice Creek Commons: an endeavor to redefine suburban living for the 21st Century by embracing the best aspects of both suburban and urban design. As you review the enclosed submission, please note that we have responded to Amazon’s RFP primarily with respect to those requirements/preferences that can be addressed by Rice Creek Commons. We have deliberately not addressed matters pertaining to the Minneapolis/Saint Paul metropolitan area generally, such as quality of life, culture/diversity and financial incentives, assuming that those matters will be addressed by you and us, working together, in the final submission to Amazon. The Minneapolis/Saint Paul metropolitan region is well-positioned to compete on a national scale for this unparalleled development opportunity, and we welcome the opportunity to be a part of Minnesota’s larger submission to Amazon. Victoria Reinhardt Robert C. Lux David Grant Chair, Board of Commissioners President Mayor Ramsey County Alatus LLC City of Arden Hills Proposed Location RICE CREEK COMMONS 3 EXECUTIVE SUMMARY Amazon’s Site Requirements and Preferences A development-prepped, 100-acre site • 427-acre, shovel-ready site in a first-ring suburb. • Publicly owned site with high visibility from I-35W. • Alternative Urban Areawide Review (AUAR) has been approved to allow additional density on the site. • Unique zoning and regulatory body exists solely to oversee and streamline the development process. • Master plan is flexible and may be adapted to reflect market conditions and development opportunities, such as this. Site must be 30 miles from population center • Located 10 freeway miles from the downtowns of both Minneapolis and Saint Paul. Travel logistics • Minutes away from international airports. • 30 minutes from the Minneapolis/Saint Paul International Airport. • 7 minutes from the Anoka County Regional Airport. • 10 minutes from the Saint Paul Downtown Airport. • Adjacent to major highways/arterial roads. • Adjacent to Interstate 35W to the east and immediately north of Interstate 694. • Easily accessible due to nearly $200 million in recent and future investments to nearby highway interchanges and $19 million committed to building a new boulevard through the site. Access to mass transit • Extension of the A-Line bus rapid transit line could be accommodated to connect the site to the regional transit network. Utility infrastructure • Well-connected to the Twin Cities’ utility infrastructure and has the bandwidth to support Amazon’s development. Building Requirements 500,000 square feet in the initial phase I (2019) • 427-acre, shovel-ready site can easily accommodate this initial phase. Up to 8 million square feet in future plans • 427-acre, shovel-ready site can easily accommodate Amazon’s future space needs. Sustainability and energy efficiency • Developer team is committed to environmentally responsible development. • Pursuing the creation of a 40-acre solar installation adjacent to the site. • Envisions net-zero energy office and residential neighborhoods made possible by utilizing the geothermal energy generated from ongoing deep-water treatment at the site. Proposed Location RICE CREEK COMMONS 4 Rice Creek Commons is the premier redevelopment site in the Minneapolis/ Saint Paul metropolitan region. Ramsey County purchased a 427-acre parcel of the former Twin Cities Army Ammunition Plant(TCAAP) in Arden Hills with the goal of revitalizing a long-dormant industrial area into a vibrant residential, commercial and retail area. The site was rebranded Rice Creek Commons, in reference to the section of Rice Creek which flows through the development and will provide the setting for beautiful walking and biking paths to augment other recreation opportunities planned for the site. Rice Creek Commons is located in Arden Hills, Minnesota, a first-tier suburb of Minneapolis and Saint Paul. Development Team The development team consists of Ramsey County, the City of Arden Hills, the TCAAP Joint Development Authority (JDA), and Alatus. Ramsey County purchased the 427-acre site from the U.S. Army and controls 100% of the site for development purposes. While geographically the smallest county in Minnesota, Ramsey County is the most densely populated and second-most populous county, with 510,000 residents. It is comprised of 18 cities and one township in the heart of the Minneapolis/Saint Paul metropolitan area. Saint Paul, the state capital, is the County’s most populous city. Ramsey County is rated “AAA” by Standard & Poor’s and Moody’s. The City of Arden Hills has land-use authority over the site. Arden Hills is a first-tier suburb of both Minneapolis and Saint Paul, and is a vital, attractive community of 9,600 people. Arden Hills serves as home to large corporations, small to medium-sized businesses, and two private universities. The city was chosen as one of the 50 Best Suburbs in America in 2014 by Business Insider. Ramsey County and Arden Hills created the JDA to solely oversee the redevelopment of Rice Creek Commons and streamline the development process. The JDA selected Alatus as master developer in May 2016. Alatus and its team members Inland Development Partners and Tradition Development Corporation are acknowledged leaders in multi-family as well as mixed-use, commercial, and single-family residential real estate developments. Proposed Location RICE CREEK COMMONS 5 Amazon HQ2 RFP Decision Drivers and the Rice Creek Commons Site Rice Creek Commons has the unique ability to fulfill all of the ideal site and building requirements, including future growth needs, as defined by Amazon in its RFP. Site Requirements Proximity to Population Center Rice Creek Commons is conveniently located 10 freeway miles from the downtowns of both Minneapolis and Saint Paul. Proximity to International Airport MSP International airport Rice Creek Commons is located 30 minutes from the Minneapolis/Saint Paul International Airport, one of the top ranked airports nationally. The airport is a Delta hub, thus travelers can reach almost any domestic destination by air within three hours. The airport ranks second per capita in passenger departures nationally. It is considered the fastest airport in the U.S., with the highest rate of on-time departures. Regional airports Rice Creek Commons is located seven minutes from the Anoka County Regional Airport, which has undergone a series of improvements recently, including lengthening and widening its two runways. The airport supports more than 68,000 takeoffs and landings annually, and can accommodate medium-sized corporate jets. The site is also located 10 minutes from the Saint Paul Downtown Airport, which can serve up to the largest corporate jets. The airport has three runways and is the only reliever airport in the Metropolitan Airports Commission system with a runway longer than 5,000 feet. The 6,700-foot runway can accommodate Gulfstream jets that can reach Asia, Europe, and South America on a single tank of fuel, making international corporate travel easy. The airport is adding new amenities, including a restaurant. More than 64,000 takeoffs and landings occur at the airport annually. Proximity to Major Highways and Arterial Roads The site is adjacent to Interstate 35W to the west and immediately north of Interstate 694. It is bordered on the north by County Road I and on the south by U.S. Highway 10 and County Road 96. I-35W connects directly to downtown Minneapolis to the south and U.S. Highway 10 connects through I-694 and I-35E to downtown Saint Paul to the southeast. Rice Creek Commons is connected to the external road network in three locations: County Road I, County Road H, and Highway 96. Within the site, the development team has designed a boulevard that can carry 40,000 cars per day. Local streets within the development have been planned to be pedestrian- and bicycle-friendly. Proposed Location RICE CREEK COMMONS 6 Access to Mass Transit In 2016, Metro Transit opened the A-Line bus rapid transit line, a high-frequency bus line that connects two Twin Cities light rail lines. It is anticipated that the A-Line service will be extended to serve Rice Creek Commons and will connect the site to the regional transit network. Extending the line to Rice Creek Commons would add approximately 10 stations to the line and provide transit opportunities for thousands of residents, students and businesses. The extension would connect the nearby University of Northwestern and Bethel University, as well as major employers, including Land O’Lakes and Boston Scientific, to the broader public transportation system. Building Requirements Phase I Initial Square Footage This site is shovel-ready and can accommodate Amazon’s Phase I building square footage needs immediately. Total Square Footage Because the site is 427 acres, the site has the capacity to support Amazon’s total future square footage needs of more than 8 million square feet. Time to Operations Master Plan The development team has worked together to develop a master plan that seamlessly blends residential and commercial development to maximize the potential of the site. The master plan draws on best practices in international urban and suburban development to create a community for people of all ages to live, work, shop and play. This type of development will ensure that Amazon is able to recruit and retain a quality employment base. The master plan is a series of three documents – the TCAAP Redevelopment Code, the TCAAP Regulating Plan, and an amendment to the Arden Hills 2020 Comprehensive Plan. Additionally, an Alternative Urban Areawide Review (AUAR) was approved by the City of Arden Hills to allow additional density on the site. The site is zoned for office, mixed-use commercial, and residential development. The Development Team recognizes that the site’s master plan is flexible and may be adapted to reflect market conditions and development opportunities, such as this. While we have created an innovative vision for this site, we know that Amazon wants to build the corporate campus of their dreams, not ours. We are committed to being flexible to accommodate Amazon’s needs. Major advantages for the selection of Rice Creek Commons for Amazon’s headquarters are that (1) the entire site is owned by Ramsey County; (2) no parcel assemblage will be required; and (3) the entire site is shovel-ready and can accommodate Amazon’s 100-acre needs immediately. All of these completed actions (particularly the AUAR) expedite the site’s ability to respond to Amazon’s RFP and development timing demands. Watch a video about the current Rice Creek Commons master plan at ricecreekcommons.com NOTE: We would be happy to create an Amazon-specific video in consultation with DEED and GREATER MSP if we are selected as one of the sites for submission on October 19. Proposed Location RICE CREEK COMMONS 7 Additional Key Decision Drivers Sustainability Supporting environmentally responsible development has been a top priority for the development team. The JDA adopted an Energy Integration Resiliency Framework, which sets forth a vision to create the largest net-zero energy redevelopment in the state. Ramsey County has a purchase agreement with the U.S. Army for a 40-acre parcel of land adjacent to Rice Creek Commons and is pursuing the creation of a solar installation that would generate eight megawatts of electricity, enough energy to power all commercial and residential developments at the site. Estimates show the installation has the potential to reduce greenhouse gas emissions by more than 7,500 tons annually, roughly the amount produced by 1,432 cars each year. Additionally, the development team envisions net-zero energy office and residential neighborhoods at Rice Creek Commons, made possible by utilizing the thermal energy generated from ongoing deep water treatment at the site. Instead of a traditional HVAC system, office and multi-family buildings would be heated and cooled by thermal energy captured from groundwater. We expect that this may meet some, if not all, of Amazon’s heating and cooling needs. Ultimately, this project is about transforming a vacant parcel of land into a community asset, and the development team is committed to prioritizing sustainable features in the development, sharing a commitment to the environment and exploring solutions such as solar energy, geothermal heating, and cooling, water conservation, composting, and other demand-side management strategies. Utility Infrastructure (Connectivity) Located in a first-ring suburb, Rice Creek Commons is well connected to the Twin Cities utility infrastructure and has the bandwidth to support Amazon’s development. The Rice Creek Commons site is located at the northwest boundary of CenturyLink’s primary service area, which provides the highest level of fiber service capability. There is a direct fiber optic path to the Rice Creek Commons site from a primary CenturyLink office located 3.4 miles away. Diverse Path Capabilities (e.g., system redundancies) from separate services areas are easily attainable. This system redundancy has been made available for the Wells Fargo data center, which is located one mile north of Rice Creek Commons. Local Labor Pool The following statistics relate to an area within a five-mile radius of RCC and are as of January 19, 2017, from ESRI Business Analyst: • 5,680 business • 94,500 employees • 60,772 households • 153,469 residents • 30% have some college, 42% have bachelors, graduate, or professional degrees • Of those employed (95%), 71% have “white collar” jobs • $70,000 median household income Proposed Location RICE CREEK COMMONS 8 The Rice Creek Commons Site History The Twin Cities Army Ammunition Plant (TCAAP) was constructed in 1941- 1942 to manufacture small arms ammunition for American and Allied forces during World War II, and remained in production until 1945. At its peak, the plant employed 26,000 people – more than half of whom were women. The plant closed after the U.S. declared victory over Japan, but was intermittently reactivated to produce small arms ammunition during the Korean and Vietnam wars. It became inactive in 1976. Ramsey County purchased the Twin Cities Army Ammunition Plant with the intent to clean, redevelop and reestablish the property as the economic engine it once was – this time with homes, businesses and retailers. Ramsey County completed soil remediation in November 2015. The Minnesota Pollution Control Agency issued a Certificate of Completion in July 2016 through its Voluntary Investigation and Cleanup Program to verify that soil had been restored to residential standards – the highest remediation standard attainable. The U.S. Environmental Protection Agency is expected to remove the site from its Superfund list for soil in 2018, which means, with demolition and remediation complete, the largest large-scale redevelopment opportunity in the Twin Cities is shovel-ready. Green Space The entire site design includes an interwoven network of parks and trails that not only provide open space for all types of recreation, but also perform important environmental functions such as stormwater management and natural habitat restoration. A section of Rice Creek flows through the Rice Creek Commons development. In 2016, Ramsey County collaborated with the Rice Creek Watershed District, U.S. Army Corps of Engineers, and Minnesota Department of Natural Resources on an innovative project to transform Rice Creek back to its original, meandering path and stabilize its banks with native plants and trees. The project resulted in nearly 2,000 new feet of stream, a restored floodplain, and the creation of high-quality wetlands. Site plans call for Rice Creek to serve as a premier feature of a 50-acre natural resources corridor that winds through the site, providing both a natural asset and regional stormwater treatment. Additionally, 24 acres of park space is planned internally on the site, and the county is building a bike and pedestrian trail on the eastern edge of the development that connects to the Rice Creek North Regional Trail and the Highway 96 Regional Trail. Future employees and residents will have access to miles of linked trails, making active living an easy choice. Bike and Pedestrian Infrastructure Rice Creek Commons will be a walkable community, featuring a network of trails, green corridors, and pedestrian-friendly streets. More than four miles of bike and pedestrian trails will be built on the site. Additionally, the site is adjacent to a 202-acre Regional Trail Corridor that connects the site to the Twin Cities area network of pedestrian and bicycle trails. The Minneapolis/Saint Paul region has been nationally recognized for being a bicycle-friendly region. Proposed Location RICE CREEK COMMONS 9 Local Market Highlights The following are some of the amenities in the immediate vicinity of Rice Creek Commons which will make this site an attractive and welcoming community for Amazon: • The northeast region of the Twin Cities metropolitan area offers affordable to luxury housing options, both rented and owned. This housing product diversity, ranging from workforce housing to executive-level homes, will be able to support Amazon’s employment needs now and in the future. • There are more Fortune 500 Companies (18) per capita in the Minneapolis/Saint Paul metropolitan area than any other region. Several Fortune 500 corporate headquarters campuses are located within a few miles of Rice Creek commons, including Medtronic, St. Jude Medical, Boston Scientific, and Land O’ Lakes. • Minneapolis/Saint Paul is the 9th most inventive metropolitan area worldwide. It is the birthplace of game changers like the pacemaker and supercomputer. (Organization for Economic Cooperation and Development) • Arden Hills is home to 14 parks and more than 26 miles of trails that connect to a regional trail system with more than 240 miles. • The Mounds View School District, which is consistently rated among the best in Minnesota, is the school district for Rice Creek Commons residents. • With a highly educated population, the northeast metro is uniquely positioned to provide a local employment base for Amazon: • The Twin Cities is a national magnet for young professionals, with the highest employment rate for 19-34 years olds in the country. • 49% of residents within a five-mile radius of the site have a bachelor’s degree or higher. • 70,000 four-year college students study within a 10-mile radius of the site. • 661,000 employees live and 33,000 businesses are located within a 10-mile radius of the site. Proposed Location RICE CREEK COMMONS 10 Public Investments and Incentives Project goals The goals of the Development Team generally include: • Tax base growth • Job creation • Transit and mobility opportunities • Energy and environmental resiliency • Housing diversity • Natural resources protection • Community vitality and interconnection • Enhanced recreational features Previous and committed investments Ramsey County and its partners want to work with the state and GREATER MSP to create a coordinated, coherent and comprehensive local, regional and state incentive package to be offered to Amazon. In order to achieve the orderly and timely redevelopment of Rice Creek Commons, the following investments have already been made or committed to for the project: Invested to date • Ramsey County invested $30 million in the demolition and remediation of the site to residential standards. • Anticipating thousands of people living and working at Rice Creek Commons, $34 Million has been invested at Interstate 35W and Highway 96 and Interstate 35W and Country Road H. A new roundabout was built at the Country Road I entrance to the site. • Since 2013 nearly $200 million has been invested or is planned to be invested in infrastructure improvements near Rice Creek Commons. Committed to future investments • Ramsey County has committed $19 million to build a new county road will serve as the main access point through the site. Proposed Location RICE CREEK COMMONS 11 Appendix: Major Highways and Arterial Roads Proposed Location RICE CREEK COMMONS 12 Appendix: Local Amenities and Infrastructure Proposed Location RICE CREEK COMMONS 13 Appendix: Site Area Page 1 of 3 Joint Development Authority TCAAP Redevelopment Project DATE: October 11, 2017 TO: Joint Development Authority Board of Commissioners FROM: Beth Engum, Ramsey County Project Manager Josh Olson, JDA Administrative Director SUBJECT: TGRS Optimization Study This memorandum has been prepared at the request of the Joint Development Authority at their meeting on September 20, 2017 to update the Authority on the status of the TGRS Optimization Study process. The TCAAP Groundwater Remediation System (TGRS) began operating in 1987, largely within the 427- acre Rice Creek Commons (RCC) redevelopment site, to treat contaminated groundwater resulting from the manufacturing of munitions dating back to the 1940s. The TGRS was installed by and is the operating responsibility of the U.S. Army. The TGRS removes volatile organic compounds (VOCs) primarily trichloroethylene (TCE) from the groundwater. TCE is a chemical compound used as an industrial solvent Groundwater is extracted from the aquifer via 11 active wells and sent to the water treatment plant on the east side of the site via an underground network of pressurized pipes. TCE is removed from the water via an air stripping process and the clean water is pumped underground to a gravel pit located northeast of the site on Arden Hills Army Training Site (AHATS) where treated water infiltrates back into the aquifer. Since it was installed, the TGRS has made significant strides towards cleaning up the groundwater, removing hundreds of pounds of VOCs over the last 20+ years. The level of VOCs in the groundwater, as measured from monitoring wells onsite and downstream, is less than when the system began pumping. Variability exists in the level of VOCs still detected depending on which monitoring well is tested and whether the water is being pumped from the bedrock or overlying sands, among other possible reasons. This raises questions relative to the Army’s obligation to regulators in removing VOC contaminants from the groundwater: • Are the extraction wells located in the correct locations and are they pumping at the correct depth? AGENDA ITEM 6c MEMORANDUM Page 2 of 3 • What modifications would need to be implemented to optimize the removal efficiency of the system? Ramsey County, City and/or a future developer do not have decision making authority over TGRS mitigation actions. This continues to reside in the long-term relationship with the Army and regulators. The Army’s answer and regulators concurrence to these questions could impact the use of the property. In 2015, the emerging contaminant 1,4-dioxane (1,4-DX) was identified in the well network at TCAAP and in neighboring municipal water supply wells. This compound was historically added to TCE as a stabilizer and was not considered a contaminant of concern at TCAAP. In 2013, 1,4-DX became a concern when the Minnesota Department of Health promulgated a Health Risk Limit (HRL) for 1,4-DX of 1 part per billion. This concentration was exceeded in multiple wells on TCAAP and in municipal wells that service the City of New Brighton. Neither the TGRS nor the existing treatment system operating in the City of New Brighton effectively remove 1,4-DX from groundwater. The City of New Brighton is currently modifying their municipal water treatment plant that removes 1,4-DX. This is considered at the point of use as the system does not treat the aquifer itself. The TGRS is a remediation technique at the point-of- source. Analysis of available data and collection of additional data is necessary to answer these questions and assess options with respect to evaluating and managing 1,4-DX. These are the primary goals of the Army’s Optimization Study. In March 2017, the Army, with the help of their consultant Pika-Arcadis, kicked off the Optimization Study. Study steps included: 1. Review existing data (i.e. groundwater flow patterns, depth of bedrock, historical TCE concentrations and mass removed from extraction wells) to form a Conceptual Site Model (CSM) for the deep groundwater. 2. Perform Vertical Aquifer Profiling (VAP) at 7 existing wells (3 on RCC, 4 offsite) 3. Install 3 new wells (on RCC) and perform VAP 4. Update CSM with new data 5. Preparation of a report summarizing the results of the study with recommendations From the beginning, it was made clear by the Army that the study scope included evaluation the existing data, limited collection of new data, and preparation of a summary report with recommendations. Implementation of Optimization Study recommendations is not included under the current Pika-Arcadis contract nor is it currently funded by the Army. The Army formed a workgroup of various stakeholders that included representatives from the MPCA, EPA, Ramsey County, Alatus, the Cities of New Brighton and St. Anthony, and Army consultants. The workgroup was convened four times during the course of the study (October & December 2016, March & August 2017) in order for the Army’s consultant team to apprise workgroup members on their progress and answer any questions. At the August 2017 workgroup meeting, the Army stated that a summary of the study findings would be issued sometime in October. We’ve received updated word from the Army that report will be circulated in November. We will share the report as soon as it is available. Page 3 of 3 Since 1,4-DX was identified on TCAAP and throughout the study the County has sought answers to the following questions: • Will existing extraction or monitoring wells be removed within RCC? • Will new extraction wells or monitoring wells be added within RCC? • Will the existing TGRS piping change in size and/or location? • Will new TGRS piping be added? • Will changes be made to the existing water treatment plant building? • Will new facilities be added to the existing treatment facility or will new treatment facilities be created to address 1,4 dioxane? • What, if any, regulatory steps are required based on Army modifications to the TRGS system? What is the timeline for these regulatory steps? Ultimately the County, JDA, and developer are seeking greater clarity regarding the Army’s long-term obligations to remediate groundwater on the site and how those obligations may impact the final design and implementation of infrastructure as well as timing of development. Copies of the TGRS Optimization Study will be provided to the JDA, when completed, and placed on a meeting agenda for further discussion at that time. Page 1 of 1 Joint Development Authority TCAAP Redevelopment Project DATE: October 11, 2017 TO: Joint Development Authority Board of Commissioners FROM: Administrators Olson and Joynes SUBJECT: Green infrastructure study opportunity with Rice Creek Watershed District County Staff will provide an update on a Rice Creek Commons Green Infrastructure and Stormwater Reuse Feasibility Study AGENDA ITEM 8a MEMORANDUM Page 1 of 2 Joint Development Authority TCAAP Redevelopment Project DATE: October 11, 2017 TO: Joint Development Authority Board of Commissioners FROM: Sara Thatcher, Goff Public SUBJECT: Rice Creek Commons Communications Communications teams for Ramsey County, the City of Arden Hills, and Alatus continue to coordinate media requests. In September, Ramsey County pitched reporters after submitting a proposal to GREATER MSP and the Minnesota Department of Employment and Economic Development to locate Amazon’s second headquarters at Rice Creek Commons. The following articles were published: • Race for new Amazon HQ is altering TCAAP plans in Arden Hills – Star Tribune; September 20, 2017 • Twin Cities Join Forces to Get New Amazon HQ in Minn. – WCCO-TV; September 22, 2017 • Ramsey County's Amazon HQ bid adds St. Paul riverfront parcels to ammo site – Star Tribune; September 22, 2017 • Amazon.com, take a look at St. Paul and Arden Hills for HQ2, county says – Pioneer Press; September 22, 2017 • Ramsey County offering two tricky sites for Amazon HQ: Arden Hills and St. Paul riverfront – Minneapolis/St. Paul Business Journal; September 25, 2017 • Twin Cities leaders submit more than a dozen sites in Amazon sweepstakes – Minneapolis/St. Paul Business Journal; September 26, 2017 • Amazon Sites Submitted, but List Kept Secret – KSTP; September 26, 2017 • Minnesota's pitch for Amazon's second HQ picks up steam – Star Tribune; September 29, 2017 • Ramsey County's bid for new Amazon HQ is more about being noticed – Star Tribune; September 29, 2017 • Arden Hills site submitted as potential Amazon headquarters – Lillie News; October 2, 2017 • Amazon may bring second headquarters to Arden Hills – White Bear Press; October 3, 2017 AGENDA ITEM 9 MEMORANDUM Page 2 of 2 • In the race for Amazon HQ2, Twin Cities has a good start, consultant says – Pioneer Press; October 6, 2017 Over the past several months, we have also received dozens of inquiries about residential housing and commercial properties 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. We will communicate with these people once we have firmer information about the development timeline.