HomeMy WebLinkAbout07-23-2024 Special JDA Agenda Packet
Joint Development Authority
TCAAP Redevelopment Project
Joint Development Authority
TCAAP Redevelopment Project
SPECIAL JDA WORK SESSION AGENDA
Tuesday, July 23, 5:30 p.m. at Arden Hills City Hall
1. Roll Call
2. Public Input
3. Rice Creek Commons Project Status Update
4. Administrative Director’s Report
5. Development Director’s Report
6. Commissioner Updates
7. Adjournment
Joint Development Authority
TCAAP Redevelopment Project
Joint Development Authority
TCAAP Redevelopment Project
AGENDA ITEM 3
MEMORANDUM
DATE: July 23, 2024
TO: Joint Development Authority Board of Commissioners
FROM: Directors Collins and Perrault
SUBJECT: Rice Creek Commons Project Status Update
Establishing the scope of work
After the approval of the Preliminary Development Agreement between Alatus and the JDA in December
2023, a group consisting of City/County staff, Alatus, and consultants have been meeting regularly to
discuss the development of the California parcel of Rice Creek Commons. The focus has been how to
finance the horizonal development (mass grading, infrastructure, and other improvements) to prepare
the site for vertical development (housing, commercial buildings, and other amenities). Further
discussion will be needed on any public financing or partnerships of vertical development
improvements.
Through a series of discussions, the group narrowed its focus to a subset of the horizontal work that is
critical for vertical development to begin, with a cost estimate of approximately $94.6 million (see
table). These numbers are conceptual and for discussion purposes only, as the cost estimates continue
to be refined as more information becomes available and different financing approaches are considered.
There is additional site infrastructure not in this scope of work, including but not limited to structured
parking, public parks, and other public realm enhancements.
Determining available funding
The Joint Powers Agreement (JPA) outlines obligations on the part of the City and County to pay for
certain pieces of site infrastructure. The City and County individually determine what respective funding
sources are used to cover these obligations.
Ramsey County obligations are estimated at $25.4 million. This work consists of the Spine
Road, natural resources corridor, regional trail, TCAAP Groundwater Remediation System
(TGRS) modifications, and other related infrastructure work. They plan to cover this partially
with proceeds from the sale of Outlot A. The County also pursued funding from the state
Joint Development Authority
TCAAP Redevelopment Project
Joint Development Authority
TCAAP Redevelopment Project
through the 2024 legislative session to contribute toward this work. In the absence of a
bonding bill, the County is working to determine other sources to fulfill this obligation.
The City of Arden Hills is obligated to fund City public improvements, estimated at $15.8
million. These improvements consist of the wastewater and watermain for the Spine Road
and the water tower. The City intends to fund its obligations via fees, charges, or
assessments as outlined in the JPA or as mutually agreed upon by the parties.
Both the County and City are committed to a project that does not exceed their respective risk
tolerances and is fiscally responsible for each entity.
Alatus has committed to exploring options with private partners to provide up to $15 million in equity
toward these costs.
Assuming these investments of $25.4 million from Ramsey County, $15.8 million from the City of Arden
Hills, and $15 million from Alatus, there are approximately $38.4 million in unfunded costs in this scope
of work.
Exploring additional financial tools
Ehlers has assisted the City and County in exploring various options for closing this funding gap. Some of
the tools investigated over the past several months include County bonds repaid with tax increment
and/or abatement financing and future land sale proceeds. The financing options explored so far have
not been shown to be sufficient to closing the gap or present a financial risk that is too large for
consideration.
Alatus has told the City and County that they will provide a new proposal for financing the horizontal
development. While no parties have seen this proposal as of the date of this memo, this approach could
potentially provide a way to balance each party’s risk and reward appropriately to achieve the shared
goal of completing the horizontal development to prepare the land for vertical development.
Rice Creek Commons Horizontal Development
Uses Sources
County Project Costs $ 25,400,000 County Thumb Parcel Proceeds $ 12,750,000
City Project Costs $ 15,800,000 County Sources TBD $ 12,650,000
Town Center Infrastructure $ 8,000,000 City Assessments/Charges $ 15,800,000
Mass Grading & Soil Correction $ 41,800,000 Developer Equity $ 15,000,000
Developer Soft Costs $ 3,600,000 State of Minnesota $ -
Funding Gap $ 38,400,000
Total Uses of Funds $ 94,600,000 Total Sources of Funds $ 94,600,000