HomeMy WebLinkAbout10-15-24-SWSMayor:
Address:
David Grant
1245 West Highway 96
Arden Hills MN 55112
Councilmembers:
'It
-AxQEN HILLS
Brenda Holden
Phone:
Emily Rousseau
651.792.7800
Tena Monson
Agenda
Tom Fabel
Website:
October 15, 2024
www.cityofvxdenhills.org
Special City Council Work Session — 5:30 p.m.
City Vision
Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods,
vital business community, well -maintained infrastructure, fiscal soundness, and our long-standing tradition
as a desirable City in which to live, work, and play.
Members of the public may attend a meeting in -person at City Hall or they may view the meeting remotely on the City's
website using the below link. Meetings are also broadcast on Cable Channel 16 for those that live in Arden Hills.
https://ciiyofardenhills.org/320/Watch-City-Meetings
CALL TO ORDER
1. PUBLIC INQUIRIES/INFORMATIONAL
This is an opportunity for citizens to respectfully bring to the Council's attention any items which are relevant to the City. In addressing the
Council, you must first state your name and address for the record. Comments shall be limited to three (3) minutes or less. Written
documents or other materials should be handed to the City Clerk for distribution to the Council prior to or during the meeting. Council will
generally not respond at the same meeting where an issue is initially raised by a member of the public but the Council may refer the issue to
staff for further research and possible report or action at a future Council meeting.
2. RESPONSE TO PUBLIC INQUIRIES
3. AGENDA ITEMS
Staff/Presenters
Time
A. Rice Creek Commons/TCAAP Discussion
Jessica Jagoe
4. COUNCIL/STAFF COMMENTS
ADJOURN
AGENDA ITEM - 3A
-ADEN HILLS
MEMORANDUM
DATE: October 15, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Jessica Jagoe, Interim City Administrator
SUBJECT: Rice Creeks Commons/TCAAP Discussion
Budgeted Amount: Actual Amount
N/A N/A
Council Should Consider
Funding Source:
N/A
Council should discuss its next steps and provide direction on development items towards the
future development of Rice Creek Commons/TCAAP.
Background
The City Council has given direction to schedule a special work session to discuss the term sheet
items related to the future development of Rice Creek Commons (RCC)/TCAAP. Staff has
shared with the Council that Ramsey County and Alatus are currently in negotiations for the sale
of the "California" parcel relative to the future development of the site. In addition, the County
has contracted with Kimley Horn for the completion of design plans for the mass grading and
spine road. These actions are consistent with the Joint Powers Agreement for the redevelopment
of RCC. Given the advancement in these areas, the City Council felt the previously agreed upon
Memorandums of Understanding (MOU) (i.e. Civic Site, Parks), draft agreements (i.e.
Cooperative Agreement), and deal terms should be revisited and reaffirmed.
Discussion
For purposes of tonight's discussion, staff is seeking direction from the City Council on next
steps for the process and review of terms relative to the future development of RCC. Included
with this memo is the 2022 Term Sheet between the City and Alatus, and a draft road map of
agreements that will need to be completed as part of the future development of RCC. Staff
would suggest that the Council assign priority and order for discussion of these items. Future
special work sessions would then be grouped topic specific allowing for staff and others (i.e.
City Attorney and Financial Advisor) to prepare the relevant content (ex. historical background,
draft language, updated cost assumptions, financials, etc.) that will be necessary to aid in more
targeted discussions. Below is an initial list of topics and corresponding agreements to be used
Page 1 of 2
for scheduling of special work sessions (Note: this is not a final list and through ongoing
discussions may include additional items):
• Civic Site
o Option Agreement for the Purchase of Property
• Parks (ex. Park Dedication Fees)
o Memo of Understanding
• Utilities and related infrastructure & Ongoing Maintenance (ex. water tower, PW facility,
single hauler, HOABOA)
o Cooperative Agreement
o City Standard Maintenance Level of Service
• City fees and charges (ex. WAC/SAC, Planning Area Fees)
o Cooperative Agreement
• Financing and assessments
o Cooperative Agreement
• Green Energy
o Energy Resiliency Infrastructure MOU
In consideration of this plan, does the Council want to schedule two or three Special Work
Sessions specific to RCC? Our regular work session agendas on the 2nd and 41h Mondays of the
month are generally full. It may be difficult to carve out time at each meeting dedicated to this
level of RCC discussion. Also, establishing a set date will allow for coordination with the City
Attorney and Financial Advisor to ensure their attendance at these future meetings. To align
with the timing of the purchase and sale agreement and the Joint Development Authority's
preparation of the Development Agreement, the Council should discuss the potential availability
of scheduling work sessions in October or early November.
Secondly, the City Council should provide direction on the process for negotiations with Ramsey
County and Alatus ("Developer") for these deal points and draft agreements. Following
the guidance of the Council from these future RCC special work sessions it is anticipated that
staff, City Attorney, and Financial Advisor along with a Councilmember(s) would then continue
to communicate and negotiate terms on the City's behalf with Alatus. Information from these
"working" meetings would be brought back to the full Council for any additional discussion and
approval. As part of the 2022 term sheet, there were two Councilmembers who were leading that
process with approvals being brought to the full Council. If the Council were to follow this same
approach it may provide for a timelier advancement of discussions in these areas. Staff would
ask the Council to discuss and provide direction on the approach for future negotiations.
Budget Impact
N/A
Attachment
Attachment A: 2022 Term Sheet for RCC
Attachment B — RCC Agreement Landscape
Page 2 of 2
Attachment A
Term Sheet for RCC
Alatus will construct the RCC Project in compliance with City adopted goals and official controls
and the Alatus development proposal related to building types, location, minimum valuation and
construction timing/phasing, Future revisions to the development plans will be subject to review
and approval upon application by Alatus through the JDA process. Alatus and the City will enter
into a development agreement based on the November 18, 2018 draft Master Development
Agreement consistent with the updated Alatus development proposal and this term sheet.
Alatus will construct all required infrastructure (exclusive of County infrastructure
improvements) included within the site, including a new water tower and related infrastructure,
public works maintenance/storage facility consistent with City design specifications to be
completed no later than the end of Phase I, and the first application of seal coating and striping
for city streets within the Project. These costs are currently estimated to be approximately
$13,225 million in principal amount, with final amounts to be agreed to between the City and
Alatus. Alatus will finance and construct the infrastructure at no direct cost to the City. The City
will credit Alatus these principal financing costs against corresponding customary city imposed
fees (including trunk utility or fee in lieu of park dedication) in sufficient amounts to reimburse
Alatus for the full principal and carrying costs or, if additional amounts are required to reimburse
Alatus, by mutual agreement through fees or special assessments imposed against property or
sub -developers,
Alatus will reimburse the City for planning area expenses in the amount of $1.0 million, $500,000
will be paid within 18 months of the initial plat. A fee will be imposed on sub -developers as upon
execution of a secondary development agreement to reimburse up to a maximum of $1.0 million.
4, Alatus will escrow the estimated City expenditures projected to be incurred over the first five
years of development. Upon issuance by the City of an occupancy permit for a building in the
first phase of Town Center, Alatus may escrow the full amount of the anticipated costs or a lesser
amount agreed to by the City in an evergreen escrow account based upon a schedule of costs in
the Development Agreement, and the City will submit documentation to Alatus for the
expenditures, tax receipts and draws against the security.
5. Alatus will abide by the TRC and City goals for housing, constructing 1,460 dwelling units on the
site, with 880 dwelling units in the downtown area. All the affordable units shall be constructed to
the same standard of quality similar to the market rate dwelling units within the Project and area,
and must be affordable for various family need levels in compliance with City adopted goals. A
total of 326 units of the 1,460 units will be affordable, with 180 (125 LIHTC deeply affordable
units, and 55 units at the 4D tax credit level) located in the Town Center area and the other units
dispersed throughout RCC. A minimum of 2.0% of the affordable units shall be owner -occupied.
The City agrees to participate as the "responsible governmental unit" on all grant applications or
similar affordable housing program applications to meet these targets, and will pass'1hrough the
corresponding funding to Alatus.
In order to meet the goal of creating a first-class destination and to eliminate virtually all of the
surface parking within the residential and commercial Town Center, a district parking solution for
the 880 downtown dwelling units and commercial properties will be created and financed through
tax increment financing based on Alatus project commitments related to minimum market value
of improvements. Subject to and consistent with statutory requirements and standard practices,
the City will issue one or more pay-as-you-go TIF Notes in the principal amount of $17 million to
provide funding for district parking. The City will also assist in the creation of a special service
2198 W6
district, as requested by Alatus, to provide funding for extraordinary amenities or services related
to the Town Center area that exceed standard City service standards.
At initial plat approval, Alatus will transfer to the City the City Center site previously identified
in the Memorandum of Understanding without any reversionary interest, but with a restrictive
covenant identifying the types of City uses allowed on the site. Should the City have an approved
use on the .site then Alatus, at no -cost to the City, will construct the utility connections for the
City Center Site and any associated underground pedestrian and vehicular access to the adjacent
building. Alatus and the City may pursue a joint development agreement for that site and will
evaluatethe potential for using additional qualified costs, under the Minnesota Tax Increment
Act, within the Project area to provide tax increment financing for those other qualified costs in
an amount equal to the cost of the portion of any structure, for which Alatus would develop at no
additional cost to the City.
8. In lieu of park dedication fees, Alatus will build Project parks and support facilities in accordance
with the executed Memorandum of Understanding dated 12.12.2016. Alatus will form an HOA
and BOA to pay for amenities, operations and maintenance costs for the Project area, including
natural resource areas owned by Alatus. The HOA and BOA will be responsible for any amenity
or service that exceed City standard amenity, service and maintenance practices. Revenues from
a special service district may be utilized, in accordance with state law, for payment of a portion of
these additional costs.
2198180
These terms are agreed to, subject to a definitive Redevelopment Agreement, as of May 9, 2022 by the
City of Arden Hills and Alatus Arden Hills LLC.
CITY OF ARDEN HILLS, MINNESOTA
By:
Its: Mayor
By:
Its: City Administrator
219818v6
ALATUS ARDEN HILLS LLC
By:
Its: CEO
N
O
0
4-1
Q)
E
a)
a)
bA
O
W N
� N
LL L
� fC
V ua
(n N fC
C
41
c
O
� v
L
O O
^ , O_
a
W O +�
> c
> v
v L
hn -0 �
c
O >.
E7-
E w
U In
• -":� M
4J O O
^, U
W
Q) Q)
U
O
S O
O
4-
-0
4-
u
O L
In
E Q)
Q) } O
Q)
O�
O
U N Q
O O In
N (a) U
= L In
U
> � L N Q) O
_ X Q)
•(wT' Q) L C
Ii
L u �
O � �
U
fB N
C6
a)
� O
lD E
0 m
L O
.N Q
0
Z
I
Attachment B
3
X X X �+ X
Q
'
i
I
I
C
CU
I
I
I
I
a N
I
'
O 2
T
�
I
U
I
i
i
E
X X X M1
p
p� U
I
I
I
i
I
I
bA
c
O O
t
�
N
�
l
n
+J
bA
CT 73
aJ co
C
i
S
L
a
L
O
O
y
U to
vni
C
N
a)U
L
Q1
N
4A
-O
O
h0
L
U }
n
[6
In
O
O
O
L
Q)
Q
C
O
Q1
N
Q)
C
E
O
c6
W
i
In
Ln
bA
(B
co , In
Y
C
O
w
U
v
E
E
=
Q) a
IL
O
D
U
In
L
Q-
�
Ln
to
uA
O
O
CB
In
C
a)
•
i
In
N
In
>
>
U
'— O
O
m
a)
O
O 4-
a
U
0
D
a co O
Q
Q
a
c
41
EL
Q)
p
tw L
Q
to
Q
+
ECL
41
C
QJ
E
ar
N
p
>
Q
Qj
NQ
s
v
—
41
L
Gi
a
O
U
I
a-
I
�
�
v
�
�
E
_0
;
a)
L
20-
L
-
I
�_
>
Q
D
O
I
U
Q
Q1
O
n p
I
O
al
—
In
a)
U
> C
1
4-
a)
•N
-0
Q)
U '0
i
C
>
Z5
C
U
I
Q)
L
Q)
O
O
O
_
Q) �--+
I
�"'�
,
I
—
QIn
a)
I
U
4-
a)
L
L L
V
L
iB
E
I
x
C6
L
n O
j
m
O
O
04.1
N
+�
Q) u
�O
•�
U r
j
UbIJ
N
>
a)
v
m
i
Q)
i
ZC5
ro
0
L
N
t)bE
Q
C)
E
V
O
Q)
N
Q)
O
Q)
—
cB
U
>'
Q
O
I
a)
Q1
�
La1
te�'U
N
Ln
to
QnE
.1U
�4-1
QN)
O�
a)
C
Q)
In
CA
In
Ln
O
E
U-0
i
v
C
Q
Q)
U
Q) Q)
O I
0
U
dA
Q)
a)
-a
s;
I
I
I
0
0
0
m
0
In
I
41
I
I
N
a)
>
I
p
I
E
U
Q)
>
to
I
a)
>
I
Q!
L
(L6
I
L
�
>•
f°
Q
Ql
aJ
LL
a)
H
>
W