Loading...
HomeMy WebLinkAbout02-05-24 JDAJoint 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 April 1, 2024 _______________________ Date