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HomeMy WebLinkAbout04-01-2024 JDA Agenda Packet Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project JDA MEETING AGENDA Monday, April 1, 2024, 5:30 p.m. at Arden Hills City Hall 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes 4. Public Input 5. Consent Agenda 6. Old Business 7. Public Hearings 8. New Business a. Update on Communications b. Update from the State Legislative Session c. Update from Energy Advisory Committee d. Update from Development Agreement Discussions e. Review Road Map 9. Administrative Director’s Report 10. Development Director’s Report 11. Commissioner Updates 12. Adjournment Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 2 MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Collins and Perrault SUBJECT: Approval of Agenda The agenda for the April 1, 2024, JDA Meeting must be approved. Action Requested: Approve the agenda for April 1, 2024. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 3 MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Collins and Perrault SUBJECT: Approval of Minutes The meeting minutes from the February 5, 2024, JDA Meeting must be approved. Attachment: 2/5/24 JDA Minutes. Action Requested: Approve the meeting minutes from February 5, 2024. Joint Development Authority Monday, February 5, 2024 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); Ella Mitchell (Ramsey County) Roll call taken. Approval of Agenda Motion by Commissioner Fabel seconded by Commissioner Frethem to approve the agenda as presented. Motion carried. Approval of Minutes Motion by Commissioner Monson seconded by Commissioner Frethem to approve the January 2, 2024 JDA meeting minutes as presented. Motion carried. Public Input Donna Weiman, 1406 Arden View Drive, explained the TCAAP terms sheet that was approved in December of 2023 includes that at least 20% of the 1,960 units will be affordable rental at or below 60% AMI. She asked if this percentage increases, who will decide and questioned what factors will determine the percentage increase. She inquired if there will be any citizen involvement in the decision to make changes. She reported since 2019, the County has stated they need 15,000 units of affordable housing units to very low-income households. She questioned what this means for the County’s affordable housing plans and their intentions for the TCAAP property. She understood affordable housing was needed, but asked that the County and JDA keep the City informed of changes that are made to the percentages that are being considered and to keep the public involved. Lynn Diaz, 1143 Ingerson Road, indicated she recently read that the Surgeon General states loneliness is as bad for our well-being as smoking 15 cigarettes a day. She commented on how people who are socially isolated feel the effects of stress more and are more likely to be in poor health. She encouraged the JDA to have public gathering spaces and rooms available for seniors. She hoped a library or a community center could be included in the development because Arden Hills currently has no gathering space for the public. She suggested that all senior buildings constructed be required to have a van. Consent Agenda None. Old Business None. Public Hearings None. New Business a. Update on JDA Annual Report Ella Mitchell reviewed the JDA Annual Report for 2023 in detail with the Commissioners. Commissioner Monson questioned what the balance of the budget was at this time. Ms. Mitchell explained all JDA expenses were currently funded by a County project account. She stated the communications balance would be used to pay for the energy consultant. Commissioner Monson recommended energy and large accomplishments be reflected within the annual report along with risks. Chair Wicklund stated in 2023, the JDA spent $62,000. He requested expenses in previous years be further detailed. He suggested staff also provide further information regarding the 2024 budget. The JDA supported the financials and four additional bullet points being a part of the annual report going forward. b. Update on Outlot A Ella Mitchell stated on April 24, 2023, a Request for Development Interest (RDI) for Rice Creek Commons/TCAAP Outlot A (also known as the Thumb Parcel) was released on DemandStar. The response deadline was July 28, 2023, and six proposals for commercial/industrial development concepts were received. An evaluation team made up of County staff, City of Arden Hills staff, and a financial consultant reviewed and evaluated all proposals based on the criteria listed in the RDI. Through this evaluation process, the pool of proposals was narrowed to the three top scoring proposals for consideration. Ms. Mitchell reported on August 22, 2023, an overview of all proposals was given in a closed session of the Ramsey County Board. On October 2, 2023, the TCAAP Joint Development Authority (JDA) received a presentation on the top three proposals and recommended a proposal from Ryan Companies, labeled in the presentation as Proposal A, to the Ramsey County Board for consideration. Ms. Mitchell explained on October 10, 2023, the Ramsey County Board met in closed session to review the JDA‘s recommendation and directed staff to move forward with negotiations with Ryan Companies. Staff worked with Ryan Companies to negotiate a Letter of Intent (LOI), signed on November 6, 2023, and then began drafting a Purchase and Sale Agreement (PSA). Ms. Mitchell indicated a Purchase and Sale Agreement was negotiated based on Ryan Companies’ concept plan for build-to-suit light-industrial/office and retail development that includes placemaking aspects and pedestrian access to the adjacent Rice Creek Regional Park trails and open space. The Purchase and Sale Agreement provides for an inspection period up to 15 months, during which Ryan Companies will complete their due diligence on the property. The sale transaction is anticipated to close in early 2025, with site development work to begin thereafter. A closed session of the Ramsey County Board was held on January 9, 2024, where the Ramsey County Board reviewed the terms of the PSA and the timeline associated with the proposed Outlot A site development. Ms. Mitchell stated on January 16, 2024, the Ramsey County Board voted unanimously to approve and execute the PSA with Ryan Companies, and the PSA was fully executed on January 17, 2024. Ryan Companies thus commenced the due diligence period and began working directly with City and County staff on predevelopment activities such as entitlement process and document review. Media coverage of Outlot A is described in agenda Item 8c, Update on Communications. The disposition of Outlot A to Ryan Companies will result in land sale proceeds of $12,751,319, which will be deposited into the County Rice Creek Commons Project account for future reinvestment into the Rice Creek Commons development. Commissioner Reinhardt appreciated how Ryan Companies was working to meet the JDA’s energy goals. Commissioner Fabel agreed the energy goals were terrific. He indicated he was troubled by the 15-month due diligence period and asked if Ryan Companies could walk away from the project. Ms. Mitchell explained earnest money has been paid by Ryan Companies towards the closing price. She indicated Ryan Companies sees a great deal of value in the site and offered the County $12.75 million for the property. In addition, they have end users that were interested in the site. She stated she could not speak to what would happen if Ryan Companies were to walk away in 15 months. She reported she could speak to legal counsel to get further information regarding this matter. She commented on how the County has made Ryan Companies aware of the fact two JDA members, the County Commissioners, would not be running for re-election and that it would be beneficial to move this project along sooner rather than later. Commissioner Frethem reported Ryan Companies was very excited about this project and noted there were legal hoops in place. She indicated she did not have any concerns with the proposed project timeline. She hoped the project timeline would create momentum to move the entire project forward. Commissioner Monson explained the $12.7 million would be paid to the County in February to May of 2025. She asked when the bonding money would be made available to the County. Ms. Mitchell reported decisions on this funding would be made in the next six months. Commissioner Monson stated it appears the County won’t have a problem getting the bonding because the County would have a match. She requested further information regarding the development agreement. Ms. Mitchell reported the JDA would have to approve a development agreement for Outlot A. Commissioner Monson questioned if there had been interest in Outlot A. Ms. Mitchell stated it was her understanding there has been interest, noting the location was a great selling point. She indicated the key would be to hold out for a high-quality tenant. Chair Wicklund inquired what the energy goals were for this parcel. Ms. Mitchell explained the JDA is was just starting work with the energy consultant and noted Ryan Companies has been made aware of the all-electric goal. She indicated the JDA could consider a carbon neutral goal as well. c. Update on Communications Ms. Mitchell stated Goff Public worked with Ramsey County, Arden Hills and Ryan Companies to announce the purchase and sale agreement for Outlot A, approved by the Ramsey County Board of Commissioners on January 16. Communications tactics included a media advisory, press release, county and city social media channels, the Rice Creek Commons e-newsletter, and updates to the Rice Creek Commons microsite, including a revised Outlot A webpage. Goff Public also worked with Ramsey County and the Joint Development Authority on reactive messaging for the updated Alatus term sheet approved in December. Nine people submitted inquiries through the microsite contact portal, which Ramsey County staff responded to directly. Topics included trails, commercial use, schools, safety, traffic and multiple people interested in future housing units. d. Review Road Map Ms. Mitchell reviewed the road map in detail with the Commission. She reported no changes had been made since last month. Chair Wicklund stated there were five meetings on the calendar for the JDA for 2024. He noted the end goal for 2024 was to have a development agreement in place. Commissioner Reinhardt believed the proposed timeline was reasonable. Commissioner Fabel commented the main project of concern for him was having the financial resources in place by March 31. He understood Commissioner Frethem would be going to Washington, he requested the JDA receive a report or update on the progress that was being made regarding project financials. He suggested the JDA receive an update from federal government representatives as well. Commissioner Frethem indicated she would continue to work to build federal awareness for the project and to build partnerships in order to secure funding and investors. She commented on how developing Outlot A with specific energy goals would assist in identifying future partners. Commissioner Monson requested further information on what the financial gap is at this time. Ms. Mitchell reported there are a lot of costs to putting in the infrastructure for the site and preparing the site for vertical development. She stated the horizontal work included grading the site, roads, stormwater, parks, water tower, trails, and sidewalks. She explained the estimated cost for the horizontal work was $180 million. She indicated the County has some sources that would be invested in the project, along with requested State funding, but noted the County would continue to seek funding to assist with funding these expenditures. She reported the County may not have all funding in place when the project begins, but would continue to seek funding. Commissioner Monson stated one of the biggest gaps is significant potential for subsurface risk, given the soils. She reported subsurface risk was a real risk. She commented on how important it was to properly manage soils for stability purposes. She stated because this land would cost more to prepare, it may outweigh the value of the land, which was creating the real financial gap. She recommended funding updates be given to the JDA going forward but questioned how this should be completed by staff. Chair Wicklund suggested the portions of the development agreement that are complete be reviewed by the JDA. He recommended the financials for TCAAP be reviewed on a monthly basis. Commissioner Monson supported the JDA reviewing the financials on a monthly basis as well. Commissioner Reinhardt indicated there were a lot of moving parts when it comes to this project. She appreciated how diligently staff was working on this project, in addition to selling Outlot A. She supported the City and County pursuing grants through the federal government for this project. Commissioner Frethem explained she worried about getting too into the weeds when it came to the financials, noting cost projections can generally be good, but things may also change. She discussed how costs may need to be adjusted over time as the County and City pursue grants for this project. She recommended the level of depth within the term sheet check in be both useful and necessary. Commissioner Fabel commented on the soil concerns before the Town Center area could be developed. He stated communications suggest the possibility that this area is not developable. He indicated this was an enormous concern to him. He questioned if the design of the project had to be reimagined. Chair Wicklund recommended staff or experts speak to the JDA regarding soil conditions at the next workshop meeting. Ms. Mitchell clarified that there is a difference between soil remediation and soil corrections. She said that soil remediation has already been completed, but soil corrections in order to make the soil structurally sound for building is the issue at hand. Ms. Mitchell reported soil corrections was a topic staff could address in further detail with the JDA in March. Commissioner Monson questioned if the County had spoken to Met Council regarding transit. Ms. Mitchell explained the County met with Met Council a couple of weeks ago and requested transit be brought to this site. Commissioner Monson suggested Met Council be invited to attend a future JDA meeting. Ms. Mitchell stated she could invite the Met Council to attend a meeting. Commissioner Reinhardt recommended the Met Council not be invited to attend a JDA meeting until after the legislative session. She commented on how the Met Council has been underfunded and how things could change going forward. Commissioner Frethem encouraged the JDA members to reach out to Peter Lindstrom, who is the Met Council rep for this area. e. Update from Energy Advisory Committee Ms. Mitchell provided the JDA with an update from the Energy Advisory Committee. She explained Ever-Green Energy and LHB have been brought on board as the green energy consulting team. She stated she was excited to work with both of these organizations for the green energy goals within this project. She reported a project kickoff would be held with Ever- Green Energy and LHB on Friday, February 9. She commented further on the grants staff would be pursuing for this project. Commission Monson explained the Energy Advisory Committee last met in January. She commented on the Red Bull tour that was conducted and noted she would be exploring a partnership with the AHATS energy team. She reported she was beginning to explore what it would take to do geothermal on the site. She stated the Energy Advisory Committee would be meeting next on Wednesday, February 14. Commissioner Reinhardt explained she spoke with the Department of Health to learn if there were health or pollution concerns. She spoke to the JDA further about the health concerns from a superfund site, noting there were no major concerns at this time. She commented further on the three different types of geothermal systems that were allowed in Minnesota. She understood there would be a lot of hurtles for geothermal, but she appreciated the fact the Energy Advisory Committee had more information. Commissioner Frethem asked if Xcel Energy would be part of the advisory committee going forward. Commissioner Monson reported Xcel Energy would have a representative attending meetings going forward. Chair Wicklund questioned if the Energy Advisory Committee meetings should be added to the road map. Commissioner Monson stated in theory these meetings should be added to the road map, but noted the group does not have a standing meeting date. Rather the group meets as needed. Chair Wicklund commented at this time, the Energy Advisory Committee meetings will not be added to the road map. He inquired if there was any reason for the JDA to meet with the energy consultants. Commissioner Monson stated the project kickoff would be held later this week and a summary of this meeting could be provided to the JDA in March. Commissioner Frethem suggested the consultants be invited to a meeting later this year in order to allow the public to engage on this topic. Administrative Director’s Report Ms. Mitchell reported she had no further update for the JDA. Development Director’s Report Director Perrault explained the JDA requested an increase in the density allowed at the Rice Creek Commons site, which required City approval. The City approval consisted of a comprehensive plan amendment and TRC amendment. He reported the Council considered this in January and was approved. He stated the Met Council has yet to review and approve this matter. He indicated the City Council requested a conversation with commercial developers to discuss the commercial zoning on the west side of the spine road at the Rice Creek Commons site. This discussion will be held during a special City Council work session meeting on Monday, February 12 at 5:00 p.m. He noted at least two commercial developers would be attending this meeting. Lastly, he thanked staff for all of their efforts on Rice Creek Commons. Commissioner Updates Commissioner Frethem reported she would not be able to attend the March JDA meeting. Commissioner Monson responded to a couple of the comments made during Public Input. She noted this board would decide on the affordable housing mix. She explained she understood the importance of social and gathering spaces noting they were vital for human relationships. Adjournment Meeting adjourned at 6:46 pm. Approved _____________________________________ _______________________ Jon Wicklund, Chair Date Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 4 MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Collins and Perrault SUBJECT: Public Input The public is invited to provide input. Comments will be limited to three minutes per person. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8a MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Allison Winters and Sara Swenson, Goff Public SUBJECT: Update on Communications Goff Public worked with Ramsey County to prepare messaging for the Rice Creek Commons public infrastructure development and design request for proposals (RFP). Messaging tools included talking points, website copy and a reactive media statement. There have been no media inquiries or coverage regarding the infrastructure RFP to date. Student journalists with the Mounds View High School student newspaper, The Viewer, wrote an article about the Outlot A purchase and sale agreement and history of Rice Creek Commons in late February: TCAAP land development changes. Goff Public worked with Ramsey County and Arden Hills to coordinate information, clarifications and an interview with Councilmember Monson. Goff Public also worked with Ramsey County and Arden Hills on edits to the Joint Development Authority annual report. One person submitted an inquiry through the microsite contact portal regarding parks and trails, which Ramsey County staff responded to directly. Attachment: None Action Requested: None Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8b MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Jennifer O’Rourke, Director of Government Relations, Ramsey County SUBJECT: Update from the State Legislative Session Will there be an Omnibus Bonding Bill? According to the legislative schedule, 2024 is traditionally a bonding year. Speaker Hortman has been consistent with her messaging—the only thing left she wants to accomplish this year is passing a bonding bill. Some speculate that there won’t be a bonding bill and they don’t have the necessary Republican votes to pass a bonding bill as they need a supermajority. Others remain hopeful that they will pass a bonding bill—Senate Capitol Investment chair Senator Pappas (Saint Paul) has certainly expressed a desire to pass one. Going into an election year, conventional wisdom would say most legislators should be motivated to pass the bill so they can talk about projects they’ve been able to deliver on. Bill Information: On the House side, HF3510 was introduced on 2/12/24, with Representative Moller as the chief author and Ramsey / Anoka county area Representatives Hussein, Curran, and Fischer, Norris, Feist, Kraft, Newton who have signed on as co-authors. On the Senate side, SF3990 as introduced on 2/20/24, with Senator Marty as the chief author and Senators Xiong, Gustafson, and Oumou Verbeten as co-authors. Lobbying: Ramsey County commissioners and Government Relations staff have been consistent with all legislators, our Ramsey County delegation, and the Governor’s office that bonding for Rice Creek Commons is our number one issue and we need the full $25 million. Rice Creek Commons has been popular with members and everyone seems to understand the need for investment in this project and that the timing is right. We have been collecting letters of support for the project. Hearings: While the House and Senate Capital Investment committees have been meeting, they have not been hearing individual bills. They have been taking presentations from the various agencies, essentially the Governor’s recommendations which did not contain any local projects. They have also spent committee time taking up lots of technical and clarifying changes related to the 2023 bonding/cash bills. The general thought this year is that if you received a tour stop on the bonding tours, which Rice Creek Commons did on both the Senate and House side, then you do not get a bill Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project hearing. We do not expect a hearing in either body, which again is expected. It makes the need for individual conversations all the more important. Attachment: Rice Creek Commons Fact Sheet Action Requested: None ricecreekcommons.com Rice Creek Commons Ramsey County is working together with the City of Arden Hills and Alatus LLC to revitalize the former Twin Cities Army Ammunition Plant (TCAAP) site into a vibrant, sustainable community including housing that is accessible to the diverse needs of new and existing residents, commercial development with high-quality jobs and public parks and trails. The site is now known as Rice Creek Commons, in reference to Rice Creek which meanders through the development and will provide the setting for walking, bike paths and a natural resource corridor. Public investment request In 2023, Ramsey County requested $25 million of state funding to build stormwater infrastructure and a public roadway (known as the Spine Road) that will connect County Road H and Highway 96 through the Rice Creek Commons development. The construction of this public infrastructure is the key to unlocking the development potential of the 427-acre site to deliver the site vision which is to create economic prosperity, build an inclusive economy and develop an energy-forward community by providing much-needed housing at a variety of price points – including deeply affordable housing – and creating well-paying jobs. Mass grading at the Rice Creek Commons redevelopment site and the construction of “Spine Road” could begin as early as 2026, upon project funding determination. Additional information By the numbers Size of development site 427 acres Cost of public infrastructure including Spine Road $89 million Housing units up to 1,960 County investment to-date $43.7M Estimated value of future development $1 billion *All figures 2023 estimates Rice Creek Commons will provide Housing opportunities for thousands of Minnesotans. Commercial development providing high-quality jobs. Public park and amenity space. Rice Creek North Regional Trail Corridor pedestrian and cycling facilities. Natural resources corridor and regional stormwater treatment system. Significant tax base expansion. A model for sustainable development Project partners are committed to a bold vision for clean energy and sustainable development. Xcel Energy and Ever-Green Energy are actively partnering with the JDA Energy Advisory Committee to plan for Rice Creek Commons to become a model for energy resilience and sustainable development. A natural resource corridor The site will have abundant public space, including over 200 acres of public land for trails, parks, amenities, and open space. A 50-acre natural resources corridor winds through the proposed site, providing a natural amenity and regional stormwater treatment. Rice Creek provides access to area lakes and the Mississippi River by canoe and kayak. A model for equitable development This public-private partnership is committed to building an inclusive economy that offers high quality jobs and affordable housing infrastructure. Ramsey County’s Equitable Development Framework and Economic Competitiveness & Inclusion Plan are guiding documents which will advance the County’s commitment for this development toward an equitable outcomes vision. Rice Creek Commons will have: • Rental and ownership opportunities. • Apartments, townhomes and single- family homes. • Housing available at all income levels, including deeply affordable homes. Joint Powers Agreement (JPA) is established between the City of Arden Hills and Ramsey County for the redevelopment of TCAAP, creating the TCAAP Joint Development Authority (JDA). Ramsey County purchases a 427-acre parcel of the TCAAP property from the U.S. Government and began its environmental remediation of the site. Cleanup of the site to unrestricted land use standards is complete. Environmental Protection Agency (EPA) and Minnesota Pollution Control Agency (MPCA) remove the site’s soil and surface water from the state and federal Superfund lists. TCAAP Redevelopment Code, outlining the land use for the site, adopted by the JDA. The JDA is working with public and private partners to move forward with the development of the site. 2012 2013 2015 2016 Ongoing Did you know? The U.S. Army constructed TCAAP to manufacture munitions during World War II. At its peak, the plant employed 26,000 people – more than half were women. JENNIFER O’ROURKE Director of Government Relations 651-724-3461 . jennifer.orourke@ramseycounty.us KARI COLLINS Director of Community & Economic Development 651-302-4455 . kari.collins@ramseycounty.us LEARN MORE: ricecreekcommons.com Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8c MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Commissioner Monson SUBJECT: Update from Energy Advisory Committee Commissioner Monson and staff will provide updates from the Energy Advisory Committee. Attachment: None Action Requested: None Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8d MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Perrault and Collins SUBJECT: Update on Development Agreement Discussions Staff will provide a verbal update on the Development Agreement discussions including a review of the Term Sheet. Attachment: Term Sheet – working draft Action Requested: None Rice Creek Commons Terms for Final Development Agreement 4/1/2024 Working Draft 1 Term Sheet Parties: Alatus LLC and the Joint Development Authority (JDA) Current Status To Be Determined A. Assumptions This Term Sheet is intended to set forth the general terms that the developer and the JDA may be willing to enter into in a definitive final Development Agreement to be negotiated. Neither this Term Sheet nor approval thereof shall constitute an offer or agreement and no agreement with respect to the matters set forth herein shall be effective until the date of execution of a definitive final Development Agreement in writing by all parties thereto. The terms below are predicated on the County receiving funding from the State for site infrastructure ($25M request). If this funding is not allocated, there will be implications both for timing and financing of the project. The Final Development Agreement shall be consistent with the Joint Powers Agreement. State funding request submitted. Legislature currently in session. B. Infrastructure Financing The parties understand that the infrastructure funding for the project is critical to its advancement and will work collaboratively to ensure the infrastructure financing is achieved in a manner mutually agreeable to the parties. The City’s goal is to have their respective infrastructure financed and paid for by the development and not burden existing residents. Request for Proposal for County infrastructure released 3/14/24. Infrastructure financing analysis underway. • Financial commitments of all parties to infrastructure • Who will be responsible for managing infrastructure project(s) Rice Creek Commons Terms for Final Development Agreement 4/1/2024 Working Draft 2 C. Public/Private Financing The parties understand from financial analysis that there are funding gaps in the project. The parties will actively pursue both public and private sources of funding with the goal of identifying a path to filling these gaps by the end of 1Q 2024. The parties understand that beyond infrastructure financing, there may be opportunities to leverage financing tools available to the site, which may include City, County, State, Federal, and/or private funds. The parties will work collaboratively to explore funding opportunities and find mutually agreeable solutions. The County expects to invest money in affordable housing on the site through its funding sources, such as the Housing and Redevelopment Authority levy, CDBG, and HOME. Financial analysis underway. • Financial commitments of all parties to other parts of the development D. Housing Density The parties will work toward developing a maximum of 1,960 housing units on the site, pending final approval of the necessary regulatory changes. Lesser densities may be considered upon mutual agreement. Housing will include a range of types, including but not limited to single-family houses, townhouses, and apartments. Regulatory approvals complete. TRC update underway. • Number of units of each housing type planned (single-family, townhomes, multifamily, co-ops, etc.) E. Housing Affordability The parties share a goal of providing affordable housing on the site and will work toward a minimum of twenty percent of the total housing unit count (392 units at a maximum of 1,960 total units) to consist of affordable rentals at 60% AMI or below. The developer will pursue opportunities for funding and submit applications to make these rental units more deeply affordable, from sources such as Minnesota Housing (low-income housing tax credits (LIHTC)), CDBG-HOME, County HRA levy funds, Local Affordable Housing Aid (metro area sales tax funding), etc. and with partners such as Habitat for Humanity. Goal affirmed. Terms and funding to be discussed. • Financial commitments for housing affordability – will be part of future discussions at the individual development level • Number of units of affordable rental housing planned and affordability/AMI level • Number of units of affordable for-sale housing planned (i.e. eligible for down payment assistance) • Affordability terms • Rental policies (e.g. projects must accept Section 8 vouchers) Rice Creek Commons Terms for Final Development Agreement 4/1/2024 Working Draft 3 The parties will additionally work toward constructing ten percent of the owner-occupied units to accommodate Ramsey County down payment assistance, which is accessible to households who make less than 115% of area median income (AMI) (in 2023, that equates to a for-sale price of less than $372,000). F. Housing Ownership versus Rental The parties share a goal of providing opportunities for homeownership opportunities in the development, and as part of the final development agreement will come to a mutually agreeable ratio of owner-occupied units to rental units. To be discussed. • Number of homeownership and rental units planned • Mechanism for ensuring this balance comes to fruition G. Commercial/Industrial Development and Job Creation The parties understand that new employment at well-paying jobs is an important objective for Rice Creek Commons, for which reason certain areas have been zoned for commercial or industrial usage. Accordingly, the parties agree to pursue appropriate buyers or tenants for such areas as will maximize the opportunities for such employment. Affirmed. • Details about job creation goals H. Green Energy Goals and Infrastructure The parties share the goal of building an ambitious, sustainable development. The parties endorse the Rice Creek Common Energy Vision, as adopted by the JDA on 10/2/23, and will collaborate in alignment with the guiding principles therein. As part of working toward this vision, the parties will explore the feasibility of an all-electric development and work with the selected energy consultant to create metrics to be included in the final development agreement to achieve these goals. Green energy consultant under contract. Analysis underway. • Specifics to be determined through energy consultant contract: o Goal for the development (i.e. net zero or all-electric or carbon neutral or other) o Energy technologies to be used to achieve that goal o Metrics • Financing for green energy work • Other sustainability requirements beyond energy Rice Creek Commons Terms for Final Development Agreement 4/1/2024 Working Draft 4 I. Building 116 The JDA will support the developer’s exploration of the feasibility of moving Building 116 off the site, including identifying a way to pay for the relocation. Strategy underway. • Financial resources to pay for potential relocation • Regulatory process and permissions necessary J. Maintenance and Operating Costs/Responsibilities The parties understand that ongoing maintenance and associated costs will need to be addressed in the final development agreement. Furthermore, each party may have its own goals in the short and long term. The parties will work collaboratively to address these in the final development agreement. For example, it is important to the City to ensure the Rice Creek Commons does not put undue financial risk or burden on the entire City and will seek to have short-term and long-term funding gaps addressed. Analysis underway. • Financial responsibilities of all parties for long-term maintenance and operating costs of the development K. Ordinances and Policy Applicability The developer will comply with all applicable federal, state, and local ordinances. To be discussed. • Other construction standards including green building standards, quality of construction, etc. • Applicability of ordinances including Ramsey County Prevailing Wage Ordinance No. 2013-329 L. Conveyance of Property The property will be conveyed to the developer in tranches. The parties will establish performance metrics, and the JDA will assess performance on these metrics prior to the conveyance of the next tranche. Analysis underway. • What exactly each tranche comprises • Order in which tranches will be conveyed M. Timeline The parties will work together in earnest to negotiate and sign a Final Development Agreement by the August JDA meeting, scheduled for 8/7/2024. Negotiations underway. • The PDA extends through June 2025 so this timeline is not set in stone but is a goal. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8e MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Perrault and Collins SUBJECT: Review Road Map Staff will provide an update on project updates since the last JDA meeting and a review of scheduled JDA meetings and work sessions. Attachment: 2024 JDA Road Map Action Requested: None Month Date Meeting/Action or Deadline Topics or Notes Jan 2 JDA Meeting JDA Schedule, Development Agreement Schedule, Infrastructure and Traffic Updates 2 JDA Advisory Committee Prep for February JDA 5 JDA Meeting 2023 JDA Annual Report, Development Agreement Progress Report 15 Mar 31 Term Sheet Goal: Financial Sources Identified 1 JDA Meeting Development Agreement Progress Report 25 JDA Advisory Committee 1 6 JDA Work Session Development Agreement Progress Report 23 JDA Advisory Committee 3 JDA Meeting Development Agreement Progress Report 20 JDA Advisory Committee 1 JDA Work Session [Tentative] Green Energy Work Session, Development Agreement Progress Report 25 JDA Advisory Committee 5 JDA Meeting Review and Approve Development Agreement, JDA 6-month Expense Report 22 JDA Advisory Committee Rice Creek Commons 2024 Roadmap Apr Jun Feb Deadline: JDA Annual Report due to City and County Deadline: Draft 2025 JDA Budget May Jul Aug 1 Deadline: Coordinate JDA Budget with City and County budget processes Potential Community Engagement Green Energy and Sustainability 10 JDA Work Session 19 JDA Advisory Committee Potential Community Engagement Spine Road Infrastructure 7 JDA Meeting 31 JDA Advisory Committee 4 JDA Work Session 14 JDA Advisory Committee 15 Deadline: Report back on City/County approval of JDA budget 2 JDA Meeting Adopt 2025 JDA budget 19 JDA Advisory Committee Key JDA Meeting JDA Work Session Advisory Committee Meeting Deadline Other Meeting Oct Dec Nov Sept Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 9 MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Ella Mitchell, Redevelopment Manager, Ramsey County SUBJECT: Administrative Director’s Report A verbal update will be provided by staff. Attachments: None Action Requested: None Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 10 MEMORANDUM DATE: April 1, 2024 TO: Joint Development Authority Board of Commissioners FROM: Director Perrault SUBJECT: Development Director’s Report A verbal update will be provided by Director Perrault. Attachments: None Action Requested: None