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HomeMy WebLinkAbout11-06-23 JDAJoint Development Authority Worksession Monday, November 6, 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 Tom Fabel, Commissioner Tena Monson Also present: Dave Perrault (Arden Hills); Jessica Jagoe (Arden Hills); Kari Collins (Ramsey County), Jenny Boulton (Kennedy & Graven) Roll call taken. Public Input Linda Swanson, 1124 Ingerson Road, stated at the last Arden Hills Council meeting she presented a number of questions that she would like to see answered. She presented these same questions in hopes of receiving answers. She explained she understood TCAAP would be developed, but she did not agree on how it was being developed. She feared residents were misinterpreting the term “affordability” as it pertains to TCAAP housing. She understood residents wanted housing available and affordable for the next generation. She anticipated the TCAAP development would only have affordable units for those that qualify per AMI requirements. However, the non-qualifying residents would not have subsidized financing and would be forced to pay market value. She believed it was misleading for the JDA to speak about affordability without defining what they mean. She recommended the JDA begin talking about market rate costs. She then reviewed the estimated home values for the JDA members. She commented on how Arden Hills was not affordable for first time homebuyers. She explained the rental rates for the New Perspective 55+ has a one bedroom renting for $2,510 and a two- bedroom was renting for $5,014. She reviewed further rental rates for apartments in Arden Hills and Shoreview and noted these numbers were not affordable for first time homebuyers. Lynn Diaz, 1143 Ingerson Road, asked that the JDA will ensure there is a large chunk of purchased affordable housing in order to allow the future residents to build equity. She indicated this will make for a stronger community. She hoped these units would be required to be owner occupied with covenants in place in order to maintain affordability levels. She recommended the apartment buildings have an adequate amount of greenspace. She also hoped there would be more gathering and social infrastructure spaces built into TCAAP. Kathy Sukke, 1286 Karth Lake Circle, stated she has lived in her home for 38 years. She explained the City now a stacked body making decisions on density, which Tom Fabel has stated is a moral imperative. She stated density was not a moral imperative, but rather it was a mandate from an authoritative government that pretends it knows what is livable and wanted for the long term. She reported housing is important, but should not be gained in a manner that denies the voices of Arden Hills residents. She believed the process being followed by the JDA was lacking civic virtue which was immoral. She explained Jon Wicklund serves on the Planning Commission and serves on the JDA, but the Mayor and Councilmember Brenda Holmes were denied access to the JDA, which was a group they formed. She feared this was unethical. She urged those serving on the JDA to be wise, honest and fair. She anticipated the public would continue to not be able to trust the actions of the JDA so long as secret meetings were being held. She commented on how she believed Councilmember Fabel was blocking information regarding TCAAP from getting to the public. She understood the JDA has already made up their mind about the density for TCAAP, suggesting this project would be more dense per square mile than any other project in Ramsey County or Hennepin County. She reported this property only had two entrance/exit points. She feared how traffic from this development would adversely impact Highway 96. She hoped that the JDA members could find its ethical compass and would restore civic virtue in order to create a project that compliments the community rather than blights Arden Hills. Community Open House Debrief John Slack, Perkins & Will, explained his firm was hired to assist with defining a strategy for the open house, which was held last Wednesday. He provided the JDA with a summary of the event noting there were seven information stations. He estimated 165+ people attended and 56 surveys were completed. He reviewed the results from the surveys that were completed, noting there was support for parks and open space, sustainability, the development plan and densities as well as the housing types. He noted there were also negative responses for development plan and densities, the proposed housing types and concerns regarding traffic/congestion. He provided further comment on the themes received from the survey stating there should be a diversity of housing types and sizes, job opportunities and new businesses. He then reviewed several of the positive and negative comments that were received at the event. The media coverage that was provided for this event was further discussed. Commissioner Fabel asked if Mr. Slack had links for the media coverage. Director Collins explained she could provide these links to the JDA members. Commissioner Monson questioned why only 56 surveys were completed. Mr. Slack stated this could be because there may not have been enough space to sit down and complete the survey. He believed those tending to the check in table did a great job handing out the surveys at the door. Commissioner Reinhardt stated she was thrilled to see the number of people that attended the open house. She explained she stayed until the last 15 minutes of the event and that was when she was finally able to view the seven stations. She thanked staff and Mr. Slack for all of their efforts. She recommended more signage be posted at future events. She believed one of the highlights of the event was when Bob Lux spoke about density. She commented on how affordability does not mean cheap or poor quality, but rather comes from the work that would be done with other funding sources. She stated she enjoyed speaking with people at the event and hearing their comments, both positive and negative. She indicated she felt really good about where this project was at this time. She supported the JDA hosting additional open houses in the future. She suggested in the future that surveys be available online in order to allow residents to fill out the survey at a later time. Commissioner Fabel stated the presentations made by Mr. Lux and staff were effective and useful. He explained this project would not happen next year, but rather would take 10+ years to complete. He commented on how the housing market would change in that time. He indicated he heard repeatedly at the event that there was a need for affordable senior housing. He stated one of the harder questions he received was if taxes would increase for Arden Hills residents in order to complete this development. He noted he was troubled by the residents who spoke to him on how affordable housing would bring riff-raff into the community. He indicated these comments were troublesome. Commissioner Frethem reported she appreciated the level of engagement from the community. She explained she supported the JDA holding additional open house events in the future. She suggested future events have a more formal presentation for those members of the public that were seeking general information. She commented on the potential timeline for this project based on the proposed density. She reported the proposed density was not chiseled in stone, but rather was required in order to complete the traffic study and fiscal analysis. She suggested the JDA presentations be summarized and be placed on the website. She recommended that at future meetings the JDA directly address traffic concerns, affordability, and other issues that have been voiced by the public. She suggested multiple methods of feedback be considered for future open houses. Commissioner Reinhardt commented on how expanding the tax base through this development will benefit all residents in Ramsey County. Commissioner Monson stated it was clear the JDA needs a more clear definition around affordability and costs. She understood the JDA has been discussing housing diversity, but she had questions on how the JDA would determine how many housing units would be 30%, 40%, 50%, 60%, etc. of AMI. She believed the JDA needed a stronger clean energy presence. She stated people were very interested on what this looks like for the entire development. She agreed a formal presentation should be given by the developer at all future open houses as well as at the December Planning Commission meeting. She feared the messaging surrounding the JDA needed clarification in that the JDA was not the developer. She would have preferred for more information regarding the amount of greenspace within the development to have been discussed with the public. She proposed future open houses be held in a gym. She noted she was open to future open houses, so long as a formal presentation is given by the developer. She appreciated the number of people that attended the open house, as well as the questions that were asked by the public. Commissioner Frethem suggested a future open house be held just on green energy in order to gain further public engagement regarding this topic. Chair Wicklund stated he believed the open house was a great idea. He thanked the JDA for driving this idea forward noting he believed this was a great event. He questioned if staff had collected emails from the individuals that attended this event. Director Collins reported this was done and stated a follow up email would be sent to these individuals with a link to the survey. Chair Wicklund suggested additional information be gathered regarding density, affordability and traffic and that this information be included in the email. Commissioner Frethem supported this recommendation. Commissioner Reinhardt suggested updates be given on each of the seven stations that were covered at the open house. Chair Wicklund stated there was consensus to send a follow up email to those who attended the open house as well as those individuals who have requested information regarding Rice Creek Commons. Commissioner Fabel indicated he could support this being done, but noted a very specific proposal for Rice Creek Commons was going to come before the Planning Commission in December. Chair Wicklund questioned who would be drafting the email. Director Collins reported the Goff team and Ramsey County would be drafting the email. Chair Wicklund suggested additional information regarding affordable housing be placed on the Rice Creek Commons FAQ webpage. He then thanked Mr. Slack for all of his efforts on the open house. Term Sheet Discussion Direct Collins explained staff was working on a draft term sheet noting she hoped to have a document for the JDA to review in December. Commissioner Reinhardt asked that staff consider having language within the term sheet stating the JDA will seek City, County and federal funding for affordable housing. She thanked staff for their efforts on this document. Commissioner Fabel questioned what level of detail would be provided within the term sheet. He looked forward to seeing some real numbers in order to assist the JDA in making meaningful decisions going forward. Chair Wicklund anticipated this document would include clear, high level starting points. Commissioner Frethem asked if the JDA Attorney had any comments regarding what should or should not be included in the term sheet. Attorney Boulton stated she believed this was a good starting point for the key elements and noted this project would continue to evolve, but this list would help the JDA to focus their attention. Commissioner Frethem indicated it would be good for the JDA to have the term sheet completed by January in order to align with the bonding request timeline. Commissioner Monson asked if covenants have been thought about versus a development agreement. She stated it may benefit the JDA to have covenants in place in order to protect affordability, sustainability and green energy goals. She supported the JDA exploring this option versus a development agreement. Director Collins reported there was an existing environmental covenant on the California site for remediation aspects. Commissioner Monson explained the developer was looking at creating a stormwater district within the development. She anticipated the City would have to find a funding source if this were to proceed. She commented on the proposed water feature and stated she would love to see this completed. She recommended a timeline be written into the term sheet in order to set expectations. She asked if the Advisory Committee would be reviewing the term sheet prior to this document coming before the JDA. Director Perrault anticipated staff would have some language for each of the items in the term sheet for the Advisory Committee to review and this document would then come to the JDA in December. Chair Wicklund asked who would be attending the November Advisory Committee meeting. Director Perrault stated Commissioner Fabel, Commissioner Frethem, city and county staff members and consultants would be attending this meeting. Director Collins commented on how financial assumptions would also be discussed at this meeting. Commissioner Reinhardt recommended the expected tax base growth information for the Rice Creek Commons development be gathered by staff. Administrative Director’s Report Director Collins reviewed the road map with the JDA. She explained the JDA would be reviewing the term sheet and looking ahead to 2024 at the December meeting. Commissioner Monson asked if a consultant has been decided for the Energy Advisory Committee. Larina DeWalt explained staff had reviewed a list of consultants but staff has now been determined that it would be better to go through an RFP process. Chair Wicklund questioned if the November 30 JDA Advisory Committee meeting would be held. Director Collins stated this was a potential meeting date. Chair Wicklund explained he would not be available for JDA worksession meetings on January 1, January 8, April 1 or July 1. He asked that staff put an annual report on the road map. Commissioner Reinhardt asked where staff was at with the preliminary development agreement. Director Collins stated staff continues to negotiate the preliminary agreement with the developer (Alatus). She explained the JDA Attorney has been working with staff through this process. Commissioner Monson supported the JDA putting a deadline on the preliminary development agreement. She suggested this deadline be set as December 4. JDA Attorney Boulton explained the concept of a preliminary development agreement was simple. She noted the document was short and one had been presented to Alatus. She indicated a counter proposal had been presented to her and there were some risks that the governmental entities were concerned about. She reported another counter proposal was being drafted with language that mitigates those risks to the governmental entities. Commissioner Monson asked if staff would be able to bring a preliminary development agreement to the JDA for consideration on December 4. Director Perrault suggested the JDA enter into a closed session on December 4 in order to discuss these documents. JDA Attorney Bolton reported she would have to complete some research to see if this could be done. Commissioner Monson commented she would like the JDA to have this done and for the JDA to provide very specific direction to the developer. She also wanted to understand what the path was to pursue an alternative developer. She indicated she was not anti-developer. She wanted to see this project move forward, but she wanted to see movement on the preliminary development agreement. Development Director’s Report Director Perrault explained the JDA Advisory Committee has not met in the last month and a half. He indicated the Advisory Committee would meet next on Thursday, November 16 and would be discussing the term sheet. He reported the Arden Hills City Council directed staff to consider the 1,960 density scenario as well as considering what changes would be needed to the TCAAP Redevelopment Code. He noted this matter would be going forward at the December Planning Commission meeting. It was noted Alatus would be making a public presentation at this meeting. Commissioner Monson requested staff review the set of questions that were received from the public in order to provide answers where possible. She reported on November 2 the City Council held a special worksession meeting and discussed the open house. She noted the Council also discussed criteria that should be considered for affordable housing and indicated Commissioner Reinhardt commented one of the most important things for JDA and staff members to have is respect. She indicated she was disturbed by the comments made during Public lnput. She stated the JDA members were doing their best and encouraged the public to remember that not all parties would agree on everything. She indicated she did not appreciate before referred to as the ladies, stating the women on this committee were highly educated individuals. She hoped that the public and the JDA would be able to work together respectfully going forward in order to make the best decisions possible for the Rice Creek Commons development. Commissioner Fabel stated a local election would be held on Tuesday, November 7. He commented on the election that was held last November and how that election helped move the redevelopment of Rice Creek Commons forward and away from the density of 1,460. Commissioner Frethem explained she would be hosting a property tax zoom meeting. She discussed how development the Rice Creek Commons would assist in increasing the tax base for the entire County. Meeting adjourned at 7:25 pm. Approved J".^rIL--9.0,:il^3 '.le lzq Date there was a strong push for ownership options. She stated the City Council wanted the JDA to further dive into transportation options for the Rice Creek Commons. 5he asked if staff had any information regarding the traffic study. Larina DeWalt explained the baseline traffic numbers have been received, the counts were completed and the draft report was being worked on. She clarified that a third party consultant was hired to complete this study. Commissioner Uodates Adiournment Jon Wicklund, Chair