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HomeMy WebLinkAbout09-05-23 JDASpecial Joint Development Authority Work Session Tuesday , September 5, 2023 Arden Hills City Council Chambers Minutes 5:30 pm Roll Call Joint Development Authority: Chair Jon Wicklund, Commissioner Nicole Frethem, Commissioner Victoria Reinhardt, Commissioner Tena Monson JDA Members Absent: Commissioner Tom Fabel Also present: Dave Perrault (Arden Hills); Kari Collins (Ramsey County) Roll call taken. Approval of Agenda The agenda was approved as presented. Public Input None. Review Road Map Director Collins reviewed the road map for the months of September and October with the JDA. She stated the theme for this fall was Outlot A along with a community outreach event. Director Perrault reported the JDA would be holding a special meeting with the developer on September 27 to review density scenarios. Schedule Community Engagement Meeting Director Collins stated staff was working to execute a contract with a community engagement consultant who will help plan and facilitate a community open house. An evening or weekend day in mid to late October has been discussed as a potential time. Ella Mitchell reviewed potential meeting dates for the community engagement meeting as being October 25, October 26, November 1, November 2 or November 6. Commissioner Monson reported it would be important for the JDA to have a developer onboard with an MOU signed before planning this event. She stated until an MOU was signed, she did not believe a date could be set. Director Collins commented as of last Friday, the developer was seeking some form of compensation in the event this body cannot get to a development agreement. She explained she discussed this further with the developer and was proposing to bring the old preliminary development agreement before the JDA for consideration. She reported this agreement would between the JDA and the developer. She explained another agreement would be drafted (and run parallel with the MDA) between the County and the developer to address a scope of deliverables. Commissioner Monson encouraged the developer to bring renderings to the September 27 JDA meeting. Commissioner Frethem supported the JDA selecting a date for the community engagement event to ensure the event happens. She did not want to delay the process and noted she has faith in Alatus. She explained she preferred to hold the community engagement event on October 26. Commissioner Monson suggested the community engagement event be held on November 1 or 2. Commissioner Reinhardt supported holding the community engagement event on November 1. She anticipated the County Board would like to learn more about the compensation/scope of deliverables that were being pursued with Alatus. Director Collins reported she made it clear to Mr. Lux that the County Board would have to approve a compensation/scope of deliverables agreement and he understood this. She explained the trajectory of this project was unique and she understood the risks Alatus would be assuming in order to move this project forward. Commissioner Monson encouraged the board to be sensitive to the timeline and to have an alternative in mind for this project. She recommended the JDA have a date in mind on when an alternative will be pursued. Chair Wicklund recommended staff reach out to Commissioner Fabel to see if he would be able to attend a community engagement event on November 1, with the alternative date being November 2. Real Estate Market Presentations Director Collins stated experts on the local real estate market have been invited to present to the JDA. She explained there will be four presentations, followed by a time for questions and discussion. Amanda Taylor, GREATER MSP Partnership, introduced herself to the JDA commented on the public and private sectors that support GREATER MSP. She provided a presentation on the current growth opportunities and industrial market needs in the Minneapolis/St. Paul metro area. She discussed how the Rice Creek Commons project was an economic opportunity for all. She explained the vision for GREATER MSP was to lead the world in inclusive economic growth by welcoming all, empowering talent and igniting innovation. She discussed how Ramsey County has both an inflow and outflow of workers. She stated Arden Hills was already a major employment center in the metro area. She reported there was a growing need to manufacture while the need for office space was declining. She commented further on the emerging technologies and industries that were growing in the region. She encouraged the JDA to consider sustainability within the Rice Creek Commons development while having flexible uses that will accommodate multi-tenant spaces and to target industries while also connecting to housing. Bruce Nustad, Minnesota Retailers Association, introduced himself to the JDA and explained he works with retailers across the State. He discussed what makes retail successful in a community. He noted there were 52,636 retailers in Minnesota and made up 20% of the State’s economy. He reported Minnesota has long been a hub of innovation in retail from the creation of the first modern mall to the largest retail shopping mall (Mall of America). He explained consumer spending continues to grow going forward. He then reviewed the number of retailers located in Blaine and Roseville. He discussed how retail was destination-centric in Minnesota. He commented on how retail needed a healthy eco-system with a mix of retailers. He noted balanced communities have a strong retail backbone and reported infrastructure was important to Minnesotans in order to continue support in store shopping and delivery/pickup. Anne Mavity, Minnesota Housing Partnership, introduced herself to the JDA and commented on the housing market in Ramsey County. She reported all housing types were in need in Minnesota at this time. She described how the cost to build homes was now higher than some people could afford. She discussed how the housing supply was disrupted when the housing bubble that burst in 2007 and 2008. She explained the State was currently 106,000 units short on low income housing, which was a system failure for workers. She commented further on how the housing system in Minnesota was broken and how there were ownership disparities for minorities. She discussed how housing insecurity was impacting homeowners in Ramsey County and reported full-time jobs still can’t pay for an average home. She reported there was a rising need for housing within reach for families and indicated the City would have to be intentional in order to bring more of these units to fruition. She stated housing was a fundamental need and noted the State legislature put $2 billion towards housing in 2023. Professor Thomas Fisher, University of Minnesota, introduced himself to the JDA and noted he runs a research center that focuses on urban design and transportation. He explained he recently wrote a book on living through the pandemic and reported pandemics bring about permanent changes to communities that take decades to unfold. He stated density is economically essential and it comes in a variety of forms. He encouraged the JDA to consider housing options for the two biggest demographics which are the boomers and millennials. He urged the JDA to work with building code officials and lenders to encourage more “missing middle” housing while also allowing for flexibility in how people live and work with mixed-use buildings and neighborhoods. He commented on how neighborhood clubhouses, spaces where people may work and also provide amenities, were emerging in the post-pandemic world. He discussed how the JDA should recognize the demand for parking will change dramatically over the coming decade because of autonomous vehicle technology, while also recognizing how the digital environment should interact with and complement the physical one. Chair Wicklund thanked the guests for their detailed presentations. Commissioner Monson explained she was not planning for today in this development, but rather was thinking, three, five or ten years down the road. She questioned how timelines were forecasted and how does density play into what was presented. Ms. Mavity indicated she was always thinking in the future as well. She anticipated the legislature would be rethinking zoning in 2024. Professor Fisher discussed how the world has permanently changed since the pandemic and technology was accelerated. He reported cities would have to ensure their policies were also accelerated to match this change. Ms. Taylor agreed the pace with which technology was changing was key and should be taken into consideration for research and development (R&D) or industrial spaces. Mr. Nustad stated being flexible with tiered development would be crucial going forward along with considering how buyers needs were changing. Commissioner Frethem commented the most exciting prospect for her with this development was taking one of the most polluted sites in the country and making it a leader in energy and redevelopment. She questioned if a sustainable green community were pursued would the market support this. Ms. Taylor reported this would attract interest from companies who care about this from all industries. She believed this type of a development would be highly marketable. Professor Fisher agreed this would be an incredible opportunity. Ms. Mavity commented on how sustainable housing would provide housing options with lower utility costs for those who were most cost burdened, which was a win. Commissioner Reinhardt explained when the energy goals and guiding principles for this development are considered, she believed they should be bold. She stated having a development that was net zero was the goal. She anticipated trying to find developers that would work towards this goal may be challenging. She supported the JDA working on the perception of affordable housing. She stated she believed in mixed income housing and further addressing equity issues when it comes to housing. She believed if this development was done right, it would become a destination. She looked forward to hearing from the community as to what they would like to see on this site. She explained she wanted to see this development walkable, forward-thinking and sustainable. Ella Mitchell read several questions from Commissioner Fabel and asked the guest speakers to speak to the current price ranges for housing and if the ongoing water remediation would cause any problems for homeowner financing. Ms. Mavity stated the average home in the MSP area was north of $400,000. She explained the greatest gap in need for home ownership was for first time homebuyers and the lack of homes within the $250,000 to $300,000 range. Commissioner Monson asked what the appetite was for different types of housing styles. Ms. Mavity discussed how the greatest gap that needs to be considered is with the lower end housing, for both owner-occupied and rental. She reported two- and three-bedroom townhomes or cottage homes were not available and there was a demand for boomers trying to downsize. Professor Fisher explained in Europe they were just building space with considerable flexibility and were not considering the zoning. He stated that by not putting space into categories, the market was then dictating how the space could be used. Ms. Mavity commented further on how the water remediation could be a win as this would demonstrate water safety within the development. Commissioner Monson stated she preferred mixed-use within Rice Creek Commons and hoped the development would have mixed-use potential. She questioned what type of housing would support small business and sustainability of authenticity. Ms. Mavity commented on how communities feel vibrant when there are more people milling about. She stated the more walkability and connected a community was the safer and more vibrant it would be. Chair Wicklund summarized the themes from the comments that were made. He believed these themes centered on the need for flexibility, affordable units/meeting the low-end gap, racial gaps, connectivity for transportation and walkability, and the need for strong partnerships throughout the development process. He anticipated further discussions would have to be held regarding future zoning decisions that would have to be made by the City. Commissioner Monson stated one of her biggest concerns was the fact that the developer was not in attendance. She explained if he was in attendance, he would be able to understand how the JDA’s thoughts could or could not be applied. She commented on how the JDA can learn from other sustainable communities or developments. She hoped the JDA could set certain metrics and goals with the developer to see how to bring about its vision for a sustainable community. Further discussion ensued regarding the timeline and challenges of approving potential zoning code changes that may be required from the City of Arden Hills. Commissioner Frethem explained this development would take time. She encouraged the JDA to focus on the vision and goals along with the range of housing for the project. She believed with these goals set a term sheet could then be established. Commissioner Reinhardt thanked the guest speakers for their presentations. She appreciated them sharing with the JDA what is possible. She reported this property was ready for development and she looked forward to the long-lasting sustainable possibilities for this site. Approve Energy Advisory Committee Goals and Guiding Principles Director Perrault stated the Energy Advisory Committee drafted a goal statement and guiding principles for the JDA’s review and approval. He explained these goals would be brought back to the JDA in October for approval. Commissioner Reinhardt discussed how these goals and guiding principles would provide the developer with valuable information on how unique this project would be. Commissioner Monson explained the Energy Advisory Committee hopes to work with a consultant to assist with guiding the goals and metrics for the developer, which would also assist in guiding Xcel Energy. She hoped that a budget would be created yet in 2023. She commented on how the white paper that was previously drafted were updates and reconsidered to include sustainable benefits for the greater community. Commissioner Frethem stated she believed the consultant was necessary. She recommended the goals and guiding principles be concise and tightened up. She supported the statements for this development being bold and innovative. In addition, she wanted the development to be forward-facing, while being sustainable, resilient and self-sufficient. Commissioner Reinhardt discussed how the committee was trying to stay true to the community input and the amount of time that went into it. Commissioner Monson explained the goal was not to bring in a consultant that would overlap the scope of the previous consultant. She reported she could support minor edits to the language. However, she would be hesitant straying too far from the original white paper. Commissioner Frethem recommended language be added to ensure this project was bold, innovative and unique. Chair Wicklund requested Commissioner Monson revise the goals and guiding principles and have these ready for the JDA to review in October. Director collins stated public works was looking to secure an engineering firm to complete the traffic analysis. She explained she would be working to complete a one pager in preparation for the upcominB legislative session. Director Perrault explained he spoke with the Mounds View School District regarding increased density scenarios. He reported the school district believes they have the capacity to handle the density over the proposed buildout schedule. He indicated the County was reviewing the necessary documents with Alatus as the master developer. He commented staff and the developer has been reviewing different density scenarios and noted the highest density level that could be considered is 1,960. He stated the developer would be speaking further to the density scenarios on September 27. He explained the Energy Advisory Committee met on August 3l where the group discussed goals and guiding principles. He indicated this group would meet next on September 28. None. Meeting adjourned at 7:44 pm. Approved t?-6 7- Jon Wicklund, Chair Date Ad m in istrative Director's Report Develooment Director's Reoort Commissioner Uodates Adiournment IdLF0dA-"r