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HomeMy WebLinkAbout12-02-2024 JDA Agenda Packet Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project JDA MEETING AGENDA Monday, December 2, 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. Communications Report b. Update on Developer Discussions c. 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: December 2, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Collins and Jagoe SUBJECT: Approval of Agenda The agenda for the December 2, 2024, JDA Meeting must be approved. Action Requested: Approve the agenda for December 2, 2024. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 3 MEMORANDUM DATE: December 2, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Collins and Jagoe SUBJECT: Approval of Minutes The meeting minutes from the October 7 JDA Meeting and November 4 Special JDA Meeting must be approved. Attachment: 10/7/24 JDA Minutes 11/4/24 JDA Minutes Action Requested: Approve the meeting minutes from October 7 and November 4, 2024. Joint Development Authority Monday, October 7, 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: 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 Fabel seconded by Commissioner Monson to approve the August 5, 2024 JDA meeting minutes and September 10, 2024 JDA worksession meeting minutes as presented. Motion carried. Public Input None. Consent Agenda None. Old Business None. Public Hearings None. New Business a. Update on Communications Larina DeWalt stated Goff Public has been working with Ramsey County to develop content for a fall 2024 newsletter to be sent via email to the Rice Creek Commons subscriber list in October. The newsletter will share updates on several topics including infrastructure, as well as green energy and sustainability. Goff Public has also been discussing communications opportunities with County staff to prepare for future development updates. There have been no recent media inquiries, and no media coverage has run since the July update. There have been no recent inquiries through the Rice Creek Commons microsite contact portal. Commissioner Fabel questioned if any communications have been initiated with the US Army regarding Building 116. He stated this building had to be demolished as it was an eyesore. Ms. DeWalt reported this building houses the TGRS that was used by the Army. He indicated this building was on property owned by Ramsey County and reported there have been discussions about the movement of this building. Commissioner Reinhardt commented further discussion will occur regarding this building, especially given the geothermal and solar potentials on this property. She explained this building was not just an eyesore, but rather was necessary for the Army and their water treatment facility. Commissioner Frethem indicated Building 116 was brought to Senator Klobuchar’s attention and the Biden administration. She asked if Goff did any press release regarding the LEED certification direction. She stated she did not want the green efforts to be lost in the agreement negotiations. Ms. Mitchell reported she had not done anything to date, but noted the County was working with Goff on an overall green initiative release and this should be completed in November. Commissioner Frethem requested a separate press release be created to address the green initiatives being pursued for Rice Creek Commons. She believed it was important to maintain the momentum that had been achieved in this area. Ms. Mitchell reported the LEED for Communities would be the focus for the upcoming newsletter. b. Green Energy Presentation Ms. Mitchell stated Ever-Green Energy has analyzed the Rice Creek Commons development plan to understand the energy needs of the site and options for renewable energy sources to meet those needs, in alignment with the JDA Green Energy Vision. Their presentation outlines potential thermal energy solutions for the development. Ryan Johnson, Ever-Green Energy, introduced himself to the JDA and provided the group with a presentation on the potential thermal energy solutions that were being considered for Rice Creek Commons. He reviewed the green energy strategies in further detail noting this included fulfilling the green energy vision on both the demand and supply side, pursuing LEED for Communities, demand side strategies to reduce energy needs, and supply side strategies that would create carbon free energy. He commented on the energy efficiency strategies that would be pursued for buildings. Potential thermal energy solution and decentralized electric options and costs were discussed with the JDA. Commissioner Monson reported the hope would be to have community-wide geothermal available throughout Rice Creek Commons. Mr. Johnson reviewed the 30 year life cycle cost analysis for the different scenarios. He explained it was feasible to have an all-electric, carbon free heating and cooling within Rice Creek Commons. He reported a community district energy system would allow the use of heating and cooling equipment that was familiar to developers, require less in-building equipment, share heating and cooling energy between buildings, improve efficiency, enable higher equipment efficiencies, eliminate cold weather equipment packages, eliminate air source condenser units while freeing up roof space for solar. Mr. Johnson explained the next steps were for the JDA to consider adopting a policy for a carbon free site. Staff and consultants will then coordinate with developers to incorporate in- building costs into life cycle cost analysis. He stated EAC, staff and consultants will discuss sustainability design guidelines with developers. The JDA will determine the preferred organizational structure and financing strategy if pursuing a community district energy system. He noted a LEED for Communities kickoff meeting would be hosted by the EAC. Commissioner Reinhardt commented the Xcel Energy grid was excepted to be carbon free by 2040. She indicated this was 16 years from now. She supported this group making smart decisions in order to be a part of this change because this was an opportunity like no other. She commented on how a geothermal solution would be an economical solution over the years. She believed this was exciting and doable, and she looked forward to seeing what decisions were made by the JDA. Commissioner Fabel questioned if being carbon free would mean all power would be created by solar and wind. Mr. Johnson explained this could be achieved through solar and renewable energy (wind). Commissioner Fabel inquired if any portion of the community system would be utilized by the residential homes. Mr. Johnson reported the full scenario would have the distribution water loop through the residential neighborhoods. Commissioner Frethem asked who would be paying the capital costs for the community system. Michael Ahern from Ever-Green Energy explained there were a number of scenarios that will be discussed with Alatus. He indicated options will be laid out to the JDA and developer for further consideration. Commissioner Frethem stated there would need to be negotiations between public entities and the developer on who pays the capital costs. Mr. Ahern reported this was the case, noting there was value to having this type of system in place to the entire development. Commissioner Frethem commented between scenarios 1 and 2, what does that do to the cost for single family homes that are part of the district wide energy. She questioned if prices would rise for the homes if included in the energy system. Mr. Johnson stated this could have an impact on home prices. Commissioner Frethem discussed how homeowners may pay more up front for their home, but over time, the thermal costs would go down because of the energy system that was in place. Mr. Johnson commented on how the tepid water loop would have a meter along with a meter for the home itself. Commissioner Frethem looked forward to learning more after discussions are held with the developer. She indicated she did not want the energy solutions to make the residential homes cost prohibitive. Commissioner Monson commented on the energy discussions that have been held to date by the EAC. She explained the EAC was trying to remove natural gas for cooling and heating. She stated if the development were to be entirely electric people would still have to heat and cool their homes. She anticipated a geothermal system would be a better option than the electrical resistance system. She explained she would like to see a comparison between all of the costs in order to properly inform decision makers. She reported Xcel Energy has an RFP for a geothermal or community district system that was 500 tons. She noted this would be a $10 million geothermal investment and would be a good opportunity for this project. Commissioner Monson requested further information on the geothermal that was pursued for The Heights development. Mr. Ahern provided further information on the geothermal system that was installed in The Heights development. He discussed how the capital costs for the system had been paid by a third party that would own and operate the system. Commissioner Monson stated she looked forward to hearing how the conversations go with the developer. Chair Wicklund questioned if this was one of the largest projects Ever-Green has worked on. Mr. Ahern stated this project was on the smaller side in comparison to other projects he has worked on. Chair Wicklund asked how long Ever-Green has been working on projects of this type. Mr. Ahern reported he has been working on projects of this type for the past 10 years. Chair Wicklund inquired how many systems Ever-Green has installed in the past 10 years. Mr. Ahern estimated he has developed 10 systems in the past 10 years. Chair Wicklund questioned what the increase cost would be to go entirely electric for a residential home. Mr. Johnson estimated there would be 10% cost increase just for the mechanical equipment. Commissioner Reinhardt stated there would be an increased cost for the equipment, but noted there would also be a quick payback for the investment. Ms. Mitchell reported she would be bringing an action back for the JDA to consider at the November meeting after holding conversations with the developer. c. Update on Development Agreement Discussions Ms. Mitchell provided the JDA with an update on the development agreement discussions. She noted conversations continue surrounding the purchase and sale agreement between Alatus and Ramsey County on the California parcel of Rice Creek Commons. She explained the last conversation was held on Thursday, October 3 and she expects to continue discussions over the coming weeks. d. Review Road Map Ms. Mitchell reviewed the Road Map with the JDA. Commissioner Frethem requested staff reassess the proposed dates for community engagement. Chair Wicklund commented on the proposed JDA budget for 2025 and asked if this would be discussed in November to be approved in December. Ms. Mitchell reported this would be the case. Administrative Director’s Report Ms. Mitchell had no further comments. Development Director’s Report Director Jagoe explained there would be a special City Council workshop on Tuesday, October 15 at 5:30 p.m. to discuss Rice Creek Commons. Commissioner Updates Commissioner Monson if that staff find dates and include Building 116 in the Road Map. Adjournment Meeting adjourned at 6:47 pm. Approved _____________________________________ _______________________ Jon Wicklund, Chair Date Joint Development Authority Monday, November 4, 2024 Arden Hills City Council Chambers Special JDA 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: 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. Public Input Lyle Salmela, 1480 Arden Vista Court, thanked the JDA for adopting a clean energy policy for the Rice Creek Commons development. He explained he has been waiting for this for the past 10 years. He stated the Ever-Green report was well done but could have more depth on the HVAC and heat pump options. He indicated Option 3 was a more likely option for the project. He believed Option 2 was a decision that should be made between Alatus and Xcel Energy. He recommended an opt out option be included in the agreement. He understood the $10 million grant for infrastructure would be beneficial. He was interested in learning more about the solar options for this site, noting residents would have to have one or two days of battery backup. He commented on how there was still a lot to learn about geothermal and refrigerant flow. He encouraged the JDA to work with Xcel or a consultant on the VFR and the cost benefits of a clean energy program. Consent Agenda None. Old Business None. New Business a. Recommendation for Clean Energy Policy Ms. Mitchell stated green energy and sustainability have long been key components of the vision for Rice Creek Commons: • 2014: The JDA established the Environmental Resiliency Advisory Board (ERAB), which defined the original Energy Vision and Guiding Principles for Rice Creek Commons. • 2015: The ERAB presented and the JDA accepted the Energy Integration and Resiliency Framework (EIRF), which set a vision to create the largest net-zero energy redevelopment in the state and outlined plans for on-site renewable energy generation and all-electric residential development. • 2016: Alatus LLC selected as lead developer. • 2023: o Energy Advisory Committee (EAC) convened and refreshed the Green Energy Vision. o Alatus reaffirmed as lead developer for the California Parcel. o Ryan Companies selected as developer for Outlot A. Ms. Mitchell explained changes since the JDA adopted the Energy Integration and Resiliency Framework in 2015 make its ambitious vision even more achievable than when it was originally set. Some key changes include: State clean energy policy: In 2023, the Minnesota state legislature established that electricity in Minnesota must be carbon-free by 2040, meaning that utilities such as Xcel must use only clean sources that do not emit carbon dioxide, including renewable energy like wind and solar. This new reality has shifted the focus of many in the industry from “net-zero energy” to “carbon-free”. Net-zero energy was an important goal when the electric grid was largely powered by carbon-intensive sources. However, now that the entire Minnesota electric grid will be carbon-free by 2040, simply building an all-electric development will achieve most of the greenhouse gas emission goals. Ms. Mitchell reported advances in green energy technologies: Energy-efficient building design, renewable energy technologies, ground-source heat pumps, electric vehicle infrastructure and a high demand for a sustainable built environment have made sustainability strategies the standard for many developers these days. Many of these technologies have advanced so much that they are now the most cost-effective solutions available. New financing sources for green energy: The federal Inflation Reduction Act (IRA) has completely changed the financial feasibility of sustainable development by providing generous incentives for green energy systems and other sustainability measures. Preliminary analysis of the current development plan suggests that large portions of the green energy systems will be eligible for a 40% rebate from the federal government, making a strong financial case for installing these systems, on top of the environmental case. Ms. Mitchell reported in 2023, the JDA engaged Ever-Green Energy and LHB to analyze the feasibility of implementing the Green Energy Vision, taking into account changes to the development plan and technology and financing advances since the EIRF was completed. This analysis comprised three primary components: 1. Comprehensive energy analysis to understand the energy demands of the development, 2. Strategies to reduce that demand, primarily high-performance building design, and 3. Renewable energy technologies to meet the remaining demand. Staff and consultants met with project developers several times to discuss strategies and address questions and concerns. As presented at the October 2024 JDA meeting and described in the Clean Energy Analysis report, Ever-Green and LHB’s analysis demonstrates that switching from a business-as-usual Joint Development Authority TCAAP Redevelopment Project development (current building code, natural gas) to an all-electric development with high-performance buildings would reduce greenhouse gas emissions from the site by over 90%. The remainder of the site’s energy needs could be met by a combination of on-site renewable energy generation (primarily solar photovoltaic) and purchasing carbon-free electricity from Xcel Energy’s Renewable*Connect program, making Rice Creek Commons completely carbon- free. The potential increased costs of high-performance buildings and green energy infrastructure can be offset by a range of rebates and funding sources, including Inflation Reduction Act incentives, Xcel Energy rebates, and the MN Climate Innovation Finance Authority (MNCIFA or Green Bank). Based on this evidence, an all-electric, carbon-free development is technically and financially feasible at Rice Creek Commons. Commissioner Frethem asked if this proposal was for the JDA to adopt an overall policy, but does not dictate the option laid out in the report. Chair Wicklund reported this was the case. He asked that the Energy Advisory Commissioners speak to the clean energy policy. Commissioner Reinhardt explained the idea of having a carbon free development was considered before, but this was the next step. She stated this was doable and she appreciated having research and concrete goals in place. She believed this would be a community of the future, especially for those who want to do what is best for the environment. She thanked Commission Monson for boldly leading the Energy Advisory Committee forward. Commissioner Monson stated this has been something that has been a passion for her given her academic and professional background. She reviewed the proposed guiding principles for Rice Creek Commons, noting this principle focused on creating an economically competitive and attractive environment for developers and businesses to create a vibrant community with multi modal transportation options. She stated she understood this policy was ambitious but she understood the JDA could look to The Heights as an example. She wanted to ensure Rice Creek Commons held firm to its goals of being all electric and carbon free. She commented on the financing options that were available for the district energy system that were third party, which would assist with lessening the burden on the community. She appreciated the fact there was proof this policy could move forward without having material economic impacts. Chair Wicklund asked if the JDA had questions for staff or the consultants at this time. Commissioner Frethem stated she was comfortable voting on the policy, with the understanding there would still be more conversations on how this would be operationalized. She was interested in learning more if carbon offsets would be considered. In addition, she looked forward to learning more about the decentralized geothermal option. Chair Wicklund requested the consultants give a brief presentation on the decentralized geothermal option. Ryan Johnson, Ever-Green Energy, provided the JDA with further information on the decentralized geothermal option for Rice Creek Commons. He explained this option was discussed with Alatus, noting each building would have their own geothermal wellfield to supply heat pumps. He indicated this option was thought to be more economic at this time because of the Inflation Reduction Act (IRA). Commissioner Fabel explained there was a degree of shock from this 50 page report. He applauded the efforts of the Energy Advisory Committee up to this point in time. He stated he had confidence in their work. He commented on how a policy may been seen as a rule and questioned if it was necessary for the JDA to adopt a policy. He stated if a policy were to move forward, some level of flexibility would have to be considered. He recommended the JDA hold a worksession to further discuss the proposed clean energy policy. Commissioner Monson reported the waiver details would be within the design guidelines, laying out what the developer has to do in order to make this development as sustainable and carbon free as possible. She indicated other details could be provided to staff and the consultants as to what the JDA wants, such as all electric, carbon free. Rick Carter, LHB, described how The Heights development was addressing their clean energy goals. He explained why the term waiver was used instead of variance. He stated a zoning code was a policy and the clean energy policy would be viewed in the same manner. He reviewed the different types of waivers that had been considered at The Heights, and discussed the different type of heat sources that would be used within the development. He reported the goal within The Heights was to be carbon free by 2030. Commissioner Fabel thanked Mr. Carter for his comments, but noted as a lawyer, he had a hard time understanding the term policy. He stated he wanted to learn more about what issues would arise as this development moves forward. In addition, he wanted to learn more about what concerns the developer has. He recommended strongly that the JDA hold a worksession meeting to further discuss the clean energy goals for this development. Commissioner Reinhardt stated she did not believe a worksession meeting would get the JDA to the place where a definition of a waiver was found, given the fact the JDA has not chosen which option should move forward. She supported the JDA having a policy in place in order to set the table for this project. She reported the word policy, does not mean the rule of law to her, but she was not an attorney. She indicated the Clean Energy Policy could be renamed the Clean Energy Framework if this was more amenable to the JDA. She reiterated that there was still a lot that had to be decided by the JDA when it comes to clean energy. Commissioner Frethem explained the JDA authorized the Energy Advisory Committee to do this work and to research the feasibility of an all-electric community. She indicated the consultants have discussed the clean energy plan with the developer and there were three feasible pathways forward. She stated she was comfortable with adopting the policy. She feared that delaying action on this policy could delay negotiations on the purchase and sale agreement. Commissioner Fabel stated he could be comfortable with this statement or policy if it was stated as follows: Rice Creek Commons seeks to be an all-electric, carbon free development. Commissioner Monson indicated she supported the language as proposed by Commissioner Frethem and Commissioner Fabel, so long as staff had clear direction on how to move forward. She indicated she could support the name change to the Clean Energy Framework. Mr. Carter stated the language change to “seeks to be” could be a positive change for the policy. He explained he has met with the developer and he understands their concerns. He was of the opinion the developers concerns could be overcome. He discussed how the IRA grant funding would assist with creating a clean energy development. Commissioner Reinhardt supported the seeks to language being added to the policy. She recommended the JDA receive an update from staff at each meeting going forward. Motion by Commissioner Monson seconded by Commissioner Reinhardt to adopt a policy that Rice Creek Commons seeks to be an all-electric, carbon-free development and the JDA directs staff to identify steps to implement this policy and provide updates to the JDA. Motion carried. b. Update on Development Agreement Discussions Ms. Mitchell provided an update on the Development Agreement discussions. She noted the existing term sheet was provided to the JDA within the packet. She commented the county has been negotiating the purchase and sale agreement for the California parcel. Commissioner Monson asked if the design plans for the spine road and grading were moving forward. Ms. Mitchell stated this was the case. She indicated County staff, Kimley Horn and the developer were coordinating on the grading plan in hopes of beginning this work in the spring of 2025. c. Review Road Map Ms. Mitchell reviewed the road map, which included 2025 meeting dates, with the JDA. Commissioner Reinhardt recommended the first meeting of the year for 2025 not be held on January 6. d. Approve 2025 JDA Budget Ms. Mitchell reviewed the proposed budget for 2025 and provided the JDA with a summary of 2024 expenditures through October 31, 2024. Motion by Commissioner Reinhardt seconded by Commissioner Fabel to approve the 2025 JDA Budget. Commissioner Monson requested further information regarding the $90,000 that was budgeted for the green energy and sustainability. Ms. Mitchell explained this expense would cover the first year of LEED for Communities precertification process. Commissioner Monson questioned if legal expenses would increase as negotiations continue with the developer. Ms. Mitchell reported the County’s attorney has been mostly involved in these discussions. She expected this expenditure would come in under $60,000. Motion carried. Administrative Director’s Report Ms. Mitchell had nothing additional to report at this time. Development Director’s Report Director Jagoe reported the Arden Hills City Council held a special worksession meeting on October 15 to discuss Rice Creek Commons and to assign priorities for discussion items relative to topics within the term sheet to be used for scheduling future worksession meetings. Given the advancement of the County towards the completion of the design plans for mass grading and the spine road, as well as the purchase and sale agreement for the California parcel with the developer, the City Council felt the previously agreed upon memorandums of understanding for the civic site and parks, along with the draft cooperative agreement should be reviewed. She indicated these discussion items would be reviewed by the City Council at a special worksession meeting on Thursday, November 7 at 5:30 p.m. Commissioner Reinhardt questioned what would be discussed. Director Jagoe explained the City Council would be discussing the draft cooperative agreement, the parks memorandum of understanding along with the civic site memorandum of understanding. She indicated the Council would like to have Alatus come in to speak to where negotiations are today for these items. Commissioner Monson indicated the City had a term sheet that was negotiated with Alatus in 2022. She stated this was an important document for the City as it addressed the financial impacts. Commissioner Updates Commissioner Reinhardt explained she appreciated how the JDA was seeing fruits of all of their hard work and she was pleased with how well this group has moved this project forward. Commissioner Fabel commented on the report Commissioner Frethem recently posted and stated he was pleased the impasse regarding housing had been settled between the City and the County. He indicated he was very proud of the fact 500 additional housing units had been added to Rice Creek Commons. He thanked everyone for their great work. Commissioner Frethem thanked the JDA members for working to hold difficult conversations in order to reach a consensus. She appreciated the work the JDA was doing to achieve an all- electric, carbon free development. Commissioner Monson explained she appreciated the great functional working partnership the City and County have. She thanked staff for all of their hard work on behalf of the JDA. 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: December 2, 2024 TO: Joint Development Authority Board of Commissioners FROM: Directors Collins and Jagoe 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: TO: FROM: SUBJECT: December 2, 2024 Joint Development Authority Board of Commissioners Allison Winters and Sara Swenson, Goff Public Communications Report Goff Public worked with Ramsey County to develop the fall 2024 Rice Creek Commons newsletter that was distributed to 4,787 subscribers on Tuesday, October 9. Topics included progress toward the green energy vision for Rice Creek Commons, engineering work on the final design of the Spine Road, and development updates on the main parcel, Outlot A and approved Alternative Urban Areawide Review (AUAR). The newsletter had a 2% click rate (about twice the industry average) and a 35% open rate, which are both in line with industry average. Goff Public also worked with county staff to update content on the infrastructure RFP webpage and developed general language highlighting 2024 progress for use on county and partner communications channels. Goff Public continues to discuss communications opportunities with county staff for future development updates. There have been no media inquiries since the October update. Rice Creek Commons was mentioned in media coverage this fall of local government elections, including a Star Tribune article by Greta Kaul on Oct. 16: Arden Hills City Council election could change fate of former Army ammunition site development. There have been no recent inquiries through the Rice Creek Commons microsite contact portal. Attachment: None Action Requested: None Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8b MEMORANDUM DATE: December 2, 2024 TO: Joint Development Authority Board of Commissioners FROM: Director Jagoe and Ella Mitchell, Ramsey County SUBJECT: Update on Developer Discussions Staff will provide a verbal update on the developer discussions. Attachment: Term Sheet Action Requested: None Rice Creek Commons Terms for Final Development Agreement 12/2/2024 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. Bonding bill not passed; no state funding received in 2024 for site infrastructure. Legislative request planned for 2025. Alternate funding options being explored. 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. Contract with Kimley-Horn for final design of spine road and related infrastructure fully approved on 7/11/24. 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 12/2/2024 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. Proposal for public- private financing solution sent by Alatus to Ehlers on 7/31/24. Feasibility and negotiations underway in the form of a draft Purchase and Sale Agreement. • 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. Affirmed. • 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 12/2/2024 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. JDA approved pursuing LEED for Communities certification. Clean energy policy framework adopted at November 2024 JDA. Sustainability Design Guidelines to be finalized in early 2025. • 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 12/2/2024 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. Alatus proposal from 7/31/24 does not include tranche conveyance, but instead contemplates a single transfer of land. Performance metrics and enforcement analysis underway. • What exactly each tranche comprises • Order in which tranches will be conveyed Rice Creek Commons Terms for Final Development Agreement 12/2/2024 Working Draft 5 M. Timeline The parties will work together in earnest to negotiate and sign a Final Development Agreement by the August JDA meeting, scheduled for 8/5/2024. Timeline delayed due to financial constraints. • Preliminary Development Agreement (PDA) between JDA and Alatus expires June 30, 2025. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8c MEMORANDUM DATE: December 2, 2024 TO: Joint Development Authority Board of Commissioners FROM: Ella Mitchell, Ramsey County SUBJECT: Review Road Map Staff will review scheduled JDA meetings and work sessions, including 2025 dates. Attachment: 2024-2025 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 Apr 1 JDA Meeting Development Agreement Progress Report 1 2 Energy Advisory Committee Review initial green energy analysis Jun 3 Energy Advisory Committee Discuss sustainability implementation pathways 23 JDA Work Session Development Agreement Progress Report 24 Energy Advisory Committee Make recommendation for sustainability certification Aug 5 JDA Meeting Development Agreement Progress Report, EAC Sustainability Certification Recommendation, JDA 6-month Expense Report 1 Deadline: Coordinate JDA Budget with City and County budget processes 10 JDA Work Session Development Agreement Progression Report, Legislative Update 19 Energy Advisory Committee Review draft Sustainability Design Guidelines 7 JDA Meeting Green Energy Presentation 24 Energy Advisory Committee Make recommendation for clean energy policy 4 JDA Meeting Clean Energy Policy, Adopt 2025 JDA budget 15 Deadline: Report back on City/County approval of JDA budget Dec 2 JDA Meeting Year-end recap Rice Creek Commons 2024 Roadmap Oct Feb Deadline: JDA Annual Report due to City and County Deadline: Draft 2025 JDA Budget May Jul Nov Sept Month Date Meeting/Action or Deadline Topics or Notes Jan JDA Commissioner Onboarding City/County onboarding of respective new commissioners 3 JDA Meeting Organizational Items, 2024 JDA Annual Report 15 Mar 3 JDA Meeting 7 JDA Work Session Potential Community Engagement 1 5 JDA Meeting Jun 2 JDA Work Session Jul 7 JDA Meeting Aug 4 JDA Work Session 1 Deadline: Coordinate JDA Budget with City and County budget processes 9 JDA Meeting Oct 6 JDA Work Session 3 JDA Meeting 15 Deadline: Report back on City/County approval of JDA budget Dec 1 JDA Meeting Adopt 2026 JDA budget Deadline: Draft 2026 JDA Budget Sept Apr Nov May Rice Creek Commons 2025 Roadmap Feb Deadline: JDA Annual Report due to City and County Key JDA Meeting JDA Work Session Advisory Committee Meeting Deadline Other Meeting Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 9 MEMORANDUM DATE: December 2, 2024 TO: Joint Development Authority Board of Commissioners FROM: Ella Mitchell, 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: December 2, 2024 TO: Joint Development Authority Board of Commissioners FROM: Director Jagoe SUBJECT: Development Director’s Report A verbal update will be provided by Director Jagoe. Attachments: None Action Requested: None