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HomeMy WebLinkAbout06-02-2025 JDA Agenda Packet Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project JDA MEETING AGENDA Monday, June 2, 2025, 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. Approve Support Letter for Xcel Thermal Energy Network Demonstration Project b. Review Outlot A Lessons Learned Memo c. Review Term Sheet d. Review Road Map e. Receive Alatus Presentation 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: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Jagoe and Mitchell SUBJECT: Approval of Agenda The agenda for the June 2, 2025, JDA Meeting is presented for approval. Action Requested: Approve the agenda for June 2, 2025. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 3 MEMORANDUM DATE: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Jagoe and Mitchell SUBJECT: Approval of Minutes The minutes for the previous JDA Meeting are presented for approval. Action Requested: Approve the minutes from May 5, 2025. Joint Development Authority Monday, May 5, 2025 Arden Hills City Council Chambers Minutes 5:30 pm Roll Call Joint Development Authority: Commissioner Tara Jebens-Singh, Commissioner Kurt Weber, Commissioner Mary Jo McGuire, Commissioner Tena Monson Chair Jon Wicklund, was absent. Also present: Jessica Jagoe (Arden Hills); Ella Mitchell (Ramsey County) Roll call taken. Approval of Agenda Motion by Commissioner McGuire seconded by Commissioner Weber to approve the agenda as presented. Motion carried. Approval of Minutes Motion by Commissioner Monson seconded by Commissioner McGuire to approve the April 7, 2025 JDA meeting minutes as presented. Motion carried. Public Input None. Consent Agenda None. Old Business None. Public Hearings None. New Business a. Review Communications Report Director Mitchell reviewed the Communication Report with the JDA. She explained Goff Public worked with Ramsey County, the City of Arden Hills, JDA and Ryan Companies on a media relations strategy to support and celebrate the April 30 groundbreaking of Outlot A phase one. The strategy included: • Issuing a media advisory on April 28 to provide notice of the event. • Targeted pitching to reporters with previous and/or current interest in Rice Creek Commons. • Issuing a post-event press release with photos on April 30. Director Mitchell reported total media exposure: 37 placements. As of Friday, May 2, there have been 37 total earned media placements specific to the groundbreaking event. All four Twin Cities regional TV affiliates attended the event (WCCO, KARE, KSTP and KMSP) along with Nine North TV. Star Tribune reporter Matt McKinney also attended the groundbreaking and is currently conducting follow-up interviews; the timeline for a resulting article is still pending. Coverage in the Shoreview Press is also pending. Commissioner Jebens-Singh, Councilmember Monson and project staff did interviews with the Star Tribune, Finance & Commerce and Fox 9’s online streaming show outside of the groundbreaking event. Commissioner Jebens-Singh asked that the media events and the links for the videos be posted on the Rice Creek Commons website. Commissioner Monson requested staff speak further to the groundbreaking event that was held for Outlot A. Director Mitchell stated last Wednesday, April 30, a groundbreaking ceremony was held for Phase 1 of Outlot A. She explained this event was cohosted by the County, City of Arden Hills and Ryan Companies. She indicated this event was not open to the public because it was an active construction site. She reported the event was attended by City and County staff along with elected officials and representatives from Micro Control Company. Commissioner Weber thanked Commissioner McGuire and Commissioner Jebens-Singh for their comments at this event. He appreciated the positive outlook staff had for this development. b. Approve 2025 Budget Amendment Director Mitchell stated an amended JDA budget is presented for approval. This amendment includes additional scope for green energy and sustainability work and also reflects a grant awarded to the project. The JDA developed a 2025 JDA budget in accordance with the procedures outlined in the JPA. The budget for the Green Energy Consultant was $92,750 for support on the pre-certification process for LEED for Communities. The JDA approved this as part of the 2025 JDA budget at the November 2024 meeting. Director Mitchell reported at this same November meeting, the JDA requested further analysis on the Sustainability Design Guidelines and in particular the waiver process. JDA staff worked with consultant LHB to develop a scope of work that included refinement of the Sustainability Design Guidelines, support on implementation of these guidelines with developers, and community engagement. This new scope of work was $118,000 over two years. As fiscal agent of the JDA, Ramsey County holds the contracts for green energy and sustainability work on behalf of the JDA, so JDA staff worked with Ramsey County procurement to execute an agreement with LHB for this scope of work. Director Mitchell explained in 2024, the Minnesota Legislature established the Geothermal Planning Grant Program to provide financial assistance to examine the technical and economic feasibility of installing geothermal energy systems. Ramsey County applied to the Minnesota Department of Commerce for this grant on behalf of Rice Creek Commons and in April 2025 was awarded $72,479 in grant funds. JDA staff are working on a scope of work for the use of these funds. Commissioner Jebens-Singh asked if the budget reflects an accurate amount of coaching/ assistance or would additional funding be required. Director Mitchell stated the hope would be that Ryan Companies understands the guidelines going forward and will not this level of coaching for the next phase of this project. In addition, if they are not asking for waivers, less work is involved. Commissioner Jebens-Singh recommended the dollars invested in this process be utilized going forward. Commissioner McGuire stated she supported the JDA continuing work with this consultant going forward. Commissioner Weber requested staff provide the JDA with a lessons learned summary from Ryan Companies. Motion by Commissioner Weber seconded by Commissioner McGuire to approve 2025 Budget Amendment. Motion carried. c. Review Road Map Director Mitchell reviewed the 2025 Road Map with the JDA. Commissioner Weber asked if the Wednesday, May 7, JDA Advisory Committee meeting would be held. Director Mitchell stated she was waiting to hear back from the developer on this. Administrative Director’s Report Director Mitchell stated the Energy Advisory Committee met on Thursday, April 17 where the new members were onboarded. She indicated the Energy Advisory Committee would meet next on Friday, May 16. Development Director’s Report Director Jagoe provided the JDA with an update from the JDA Advisory Committee. She noted this group met on Wednesday, April 9 where the phasing plan for mass grading was discussed along with the timing of the spine road construction. She indicated the JDA Advisory Committee was scheduled to meet again on Wednesday, April 23 where phasing, housing and amendments to the TRC would be discussed, however there was a scheduling conflict with JDA members. She indicated this could have still been held between the Alatus team and staff members. She commented Alatus provided some information on but not to the level of detail needed to address the questions that were raised during the April 9 JDA Advisory Committee meeting. For this reason, the meeting scheduled for April 23 was postponed to Wednesday, May 7 and was subject to cancellation pending receipt of the information requested from Alatus. Commissioner Monson stated it was disappointing Alatus had not provided staff with the requested information on April 23. It was her hope Alatus could provide this information in order for the May 7 meeting to go forward. Director Mitchell stated the prevailing wage information was one of the topics Alatus has not addressed, along with the sustainability requirements. Commissioner Weber questioned when the prevailing wage topic has brought to Alatus. Director Mitchell explained this was in the Term Sheet that was agreed to in December of 2023. Commissioner Monson commented on how Alatus was stating they could not meet the sustainability guidelines, but indicated this could not be done wholesale, but rather Alatus would have to prove why the guidelines could not be met. It was her hope that Alatus could come to the meet on Wednesday with the requested information. Commissioner Updates Commissioner McGuire indicated she was receiving positive comments regarding the groundbreaking that occurred on Outlot A and they were excited to see the remainder of the project moving forward. Commissioner Weber thanked Mayor Grant for his comments at the recent groundbreaking ceremony. Commissioner Jebens-Singh explained she appreciated the partnership the County has with the City of Arden Hills and Ryan Companies. In addition, she appreciated the thoughtful forward progress that was being made on the Rice Creek Commons development. Commissioner Monson stated she appreciated the great energy that was created from the groundbreaking ceremony. She indicated she had a great conversation with representatives from Micro Control and she believed they would be a great neighbor to the community. Adjournment Meeting adjourned at 5:57 pm. Approved _____________________________________ _______________________ Tara Jebens-Singh, Acting Chair Date Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 4 MEMORANDUM DATE: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Jagoe and Mitchell 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: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Mitchell and Jagoe SUBJECT: Approve Support Letter for Xcel Thermal Energy Network Demonstration Project In February 2025, the Minnesota Public Utilities Commission approved Xcel Energy’s Natural Gas Innovation Plan, in response to Minnesota’s 2021 Natural Gas Innovation Act. The plan is intended to reduce greenhouse gas emissions, explore innovative technologies, and support the state’s transition to a lower-carbon energy future. Xcel Energy's plan includes several pilot programs and research and development projects. One of them is a Thermal Energy Network demonstration project for a roughly 500-ton community ground-source heat pump system owned and operated by Xcel that will provide building heating and cooling as an archetype project. Xcel requests interested communities submit a letter of support for the pilot project saying they would help identify an appropriate site for the project and promote and facilitate the project if selected. By submitting this letter, Xcel will consider our community for participation in this demonstration project, but there is no obligation to participate. Attachments: 1. Xcel Energy Utility Thermal Energy Network Information Sheet 2. Xcel Thermal Energy Network Support Letter Template Action Requested: Approve support letter for Xcel Thermal Energy Network demonstration project for JDA Chair signature and direct staff to bring to respective elected bodies for consideration of support Word Document Title UTILITY THERMAL ENERGY NETWORK INFORMATION SHEET XCEL ENERGY WORD DOCUMENT TITLE 2 © 2024 Xcel Energy Inc. Xcel Energy, a leading provider of clean electricity and natural gas in Minnesota, is committed to delivering advanced and innovative energy solutions to its customers. One of the technologies we are exploring is Thermal Energy Networks (TEN) – also known as Utility Thermal Energy Networks (UTEN), Community Ground Source Heat Pumps (CGSHPs), networked geothermal, or geogrids – which use the earth's constant temperature to heat and cool buildings. TENs are a type of district energy system – a system that provides heating and cooling to multiple buildings from a central source. TENs are a clean energy technology and serve customers with less energy while maintaining comfort and reliability of the electric and natural gas grid. The Natural Gas Innovation Act encourages the development of Thermal Energy Networks in the state. Xcel Energy is proposing a demonstration project in partnership with a community and/or large customer that will connect multiple buildings to a shared geothermal loop and evaluate its technical, economic, and environmental benefits. Networked Geothermal General FAQs, by HEET, 2023. This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. XCEL ENERGY WORD DOCUMENT TITLE 3 © 2024 Xcel Energy Inc. WHAT’S INCLUDED IN THE PARTNERSHIP OPPORTUNITY? Xcel Energy is dedicated to supporting the development of Thermal Energy Networks in Minnesota. We are actively looking for interested businesses who want to partner with us and discover the potential of this technology for their facilities. We are seeking partners who will join us on this demonstration project. Partner businesses can expect to collaborate by: 1. Retrofitting one or more facilities to utilize a thermal energy network. 2. Providing assistance with permitting and application processes. 3. Providing assistance with lease agreements for land under parking lots, lawn, or other suitable areas for borehole arrays, if applicable. 4. Participating in events to promote the demonstration and engage with the community. 5. Engaging with city council/Board of Selectmen/other elected officials. 6. Engaging with relevant local boards or committees (environmental/energy/sustainability commission). 7. Assisting in creating a joint story-telling partnership to promote and advance this technology for future availability to all customers. WHAT ARE THERMAL ENERGY NETWOKS (TEN)? A TEN system is a type of heating and cooling system that uses the natural heat in the ground to provide thermal energy for buildings. It connects multiple ground-source heat pumps together to form a shared loop network, which allows heat exchange between different buildings with different thermal needs. A networked geothermal system will reduce greenhouse gas emissions and improve energy efficiency for customers compared to conventional systems. XCEL ENERGY WORD DOCUMENT TITLE 4 © 2024 Xcel Energy Inc. WHAT ARE THE COMPONENTS OF A TEN SYSTEM? There are two primary components of a TEN system: customer-sited heating and cooling equipment (consisting of water source heat pumps), and a central geothermal loop. WATER SOURCE HEAT PUMPS A heat pump uses electricity to move heat from one place to another. It can heat or cool a space by absorbing heat from the air, ground, or water. It typically has a compressor, refrigerant, and a fan or pump as its main parts. It works on the principle that when a gas is expanded, it gets colder; and, when a gas is compressed, it gets hotter. By expanding and compressing gas (the refrigerant) at different locations, it’s able to move heat from one location to another. Heat pumps are more efficient and environmentally friendly than traditional heating and cooling systems because they do not burn fuel to create heat. They are also more versatile because they provide both heating and cooling with one system. There are different types of heat pumps, such as air-source and water-source. They vary in how they collect and release heat from different sources. Air-source heat pumps extract energy from ambient air and are the most common for residential use. Ground - source heat pumps are a type of water-source heat pump that also includes buried pipes or other equipment to extract energy from the ground. Ground-source heat pumps are more expensive but more efficient than air-source heat pumps. The systems used in this demonstration will be water source heat pumps and will move heat from a central water loop to each individual building. Because heat pumps move heat, as each building is heated, the central water loop will get colder. The opposite is also true – as each building is cooled, the central water loop will get hotter. The second component of the system – the central geothermal loop – has the sole job of keeping the central water loop a mild enough temperature so each customer’s heat pump has enough thermal energy available to heat and cool their building. CENTRAL GEOTHERMAL LOOP The central loop component in a TEN system is a shared underground loop of pipes that circulates water and antifreeze. It keeps the temperature of the water loop mild enough to allow each building to extract enough thermal energy to heat or cool the facility. Ideally, the temperature of the central water loop will stay as close to the ground temperature as possible. XCEL ENERGY WORD DOCUMENT TITLE 5 © 2024 Xcel Energy Inc. To maintain an adequate working temperature, the central geothermal loop must absorb thermal energy from the ground at the same rate as each connected building extracts thermal energy from the loop to heat or cool the facility. The geothermal loop relies o n boreholes to absorb energy from the ground. Boreholes are vertical holes drilled into the ground to access heat stored in the rock. They are used to transfer heat between the ground and the central water loop. The central loop component is key to the efficiency and performance of networked geothermal systems. It allows connected heat pumps to operate at optimal conditions, regardless of the outdoor air temperature. It also enables the system to balance heating and cooling loads among different buildings, reducing the overall energy consumption and costs. WHY IS XCEL ENERGY PURSUING NETWORKED GEOTHERMAL SYSTEMS? THE SHORT ANSWER The Natural Gas Innovation Act (NGIA) in Minnesota establishes a framework for natural gas utilities to meet the state's greenhouse gas reduction and renewable energy goals through innovative resources. These resources include biogas, renewable natural gas, power-to-hydrogen, power-to-ammonia, carbon capture, strategic electrification, district energy, and energy efficiency. The NGIA allows utilities to pilot these technologies to reduce emissions and transition away from conventional natural gas. The act aims to help Minnesota achieve economy-wide carbon neutrality by 2050. As a leader in clean energy innovation, Xcel Energy is dedicated to supporting the development of Thermal Energy Networks in our service area. THE LONG ANSWER Xcel Energy has a vision to provide 100% carbon-free electricity and net-zero greenhouse gas emissions from its natural gas business by 2050. Thermal Energy Networks (TENs) can offer a new clean energy option for customers. (1) TENs electrify customers’ space heating and cooling needs while protecting customers from high heating costs. On the coldest days of the year, TENs pull heat out of the ground which is 2.4x more efficient than pulling heat out of air. This saves customers’ money on their heating bills and also mitigates a massive amount of electric infrastructure that would be required to serve air source heat pumps. XCEL ENERGY WORD DOCUMENT TITLE 6 © 2024 Xcel Energy Inc. (2) TENs are the most efficient heating and cooling technology currently available. Besides the efficiency gain of pulling heat out the ground instead of the ambient air, these systems share a significant amount of heating and cooling energy between different building types connected to the loop. Because facilities connected to the loop are both consumers and producers of thermal energy, different building types help fill the energy need of another. The larger and more diverse the connected building stock is, the more efficient the system becomes. (3) TENs may save customers money on fuel costs while also protecting them from a volatile natural gas market. A typical residential natural gas bill is comprised of roughly 40% infrastructure costs (i.e. pipes), and 60% natural gas fuel costs (market commodity costs). By investing in infrastructure that offsets the need to burn fuel, the utility can increase one p ortion of the bill while simultaneously decreasing another, ideally resulting in a net neutral or decrease in costs. And while infrastructure costs have a lasting impact, fuel costs do not. Fuel is required year-over-year, season-over-season. (4) TENs take advantage of the natural gas utility, which may keep future natural gas rates lower for everyone. In our current state, infrastructure costs associated with the natural gas utility (i.e. pipes) are recovered through natural gas rates – the less natural gas our customers consume, the less infrastructure costs are recovered. As throughput of the natural gas system decreases over time, natural gas rates would need to increase to recover infrastructure costs. TENs utilize a separate network of pipes than our natural gas network, but they share the same core competencies (location in right of ways, installation, operation, and maintenance). In the future, these systems may be installed as an alternative option within our natural gas utility. Because TENs don’t rely on fuel, 100% of the fees associated with the service will be used to recover infrastructure costs. As TEN system(s) grow, installation costs and infrastructure recovery can be spread over the entire gas utility, leveraging economies of scale, and potentially keeping future rates lower for everyone. Additionally, TENs supply energy for cooling as well as heating, so infrastructure recovery will occur all year long, instead of only during the heating season. Dear Xcel Energy, We, the [Community Name], are writing to express our interest in partnering with Xcel Energy on the Thermal Energy Network demonstration project. We are excited about the potential of this technology to provide clean, efficient, and reliable heating and cooling for our homes and businesses. As a potential partner community, we are interested in collaborating with Xcel Energy by providing assistance in identifying and selecting an appropriate site, potentially utilizing municipal buildings in the pilot site, providing access to buildings for energy audits and feasibility studies, providing approval for the installation of piping in public Rights of Way, easements on municipally owned property, and assistance with permitting and application processes. Additionally, we would be prepared to assist with lease agreements for land under parking lots, lawn, or other suitable areas for borehole arrays. We understand that partner communities will be responsible for participating in outreach efforts and events to promote the demonstration and engage with the community, facilitating engagement with the city council, the Board of Selectmen, or other elected officials, and partnering with relevant local boards or committees. We would also be willing to lead outreach to residents and business owners to promote the demonstration and answer questions, and to create a joint story-telling partnership to promote and advance this technology for future availability to all customers. We believe that our community is an ideal candidate for this demonstration project, and we are eager to work with Xcel Energy to explore the potential of Thermal Energy Networks. By submitting this letter, we understand that Xcel Energy will consider our community for participation in this demonstration project. We understand that the purpose of this letter is to express our interest only and does not create or constitute any legally binding obligations. Thank you for considering our community as a potential partner for this demonstration project. Sincerely, [Your Name] [Your Title] [Community Name] Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8b MEMORANDUM DATE: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Jagoe and Mitchell SUBJECT: Review Outlot A Lessons Learned Memo At the request of the JDA, Ryan Companies prepared a memo describing lessons learned from the approval process of the first phase of development at Outlot A. This memo is for discussion purposes only. Attachment: Outlot A Lessons Learned Action Requested: None May 7, 2025 Outlot A Lessons Learned The following is a list of lessons learned that Ryan Companies experienced on the Micro Control Company pursuit which has the potential to impact future development at RCC. (These lessons were viewed through the lens of industrial/advanced technology/manufacturing asset type. We did not evaluate the potential challenges if we had been proposing office, retail, etc.): 1. TCAAP Redevelopment Code a. Industrial development is not explicitly contemplated within the TRC i. This creates challenges as mixed use and multi-family code overarches into industrial which is not always applicable b. Maximum allowable adjustment to the TRC requirements can only deviate up to 10% c. Table 5-2 definition of Industrial Uses requiring 30% office i. We understand and appreciate that the likely rationale for this is to deter pure distribution users. However, lab/assembly/production/manufacturing spaces are often times full HVAC with important jobs. ii. We would like the JDA to consider redefining this 30% office requirement to include space that is fully HVAC’d and occupied by employees vs. pure non- HVAC’d or sparsely occupied storage/warehouse spaces. 2. Maximum building height a. Code contradicts itself = states 15 stories building height maximum, but 24’ clear maximum if there is a loading dock i. Any 15 story building would require a loading dock ii. Code currently notes clear height definition as two different things: 1. Top of finished floor to bottom of the finished ceiling 2. Finished floor to bottom of the structural members of the ceiling iii. Consider modification to state 32’ clear from top of finished floor to bottom of structural steel member for simplicity and flexibility with potential tenant pool 1. For reference: 28’-32’ clear height for industrial/advanced tech is market standard a. Industry standard for clear height measurement location: the second bay into the building following the speed bay at the loading dock wall. 3. Shading requirements a. Shading from buildings and other project components are not viewed as methods to meet shading requirements. b. The ability to demonstrate compliance by means of a shade study should be considered 4. Parking ratios a. Much higher standards than a typical user would require b. Contradicts what this development is trying to achieve from a “green” perspective c. Proof of parking is not allowed in the TRC but is allowed in the AHC 5. Sustainability Guidelines a. The combination of achieving a 100% electric building with a 50% efficiency improvement above current MN Energy Code (ASHRAE 90.1-2019), without including any renewable energy in the equation, is a high bar to achieve. For most commercial projects, this will only be possible through the inclusion of an on-site ground-source heat exchange (colloquially called “geothermal”) system until the District Energy system is brought online. The District Energy system will help significantly lower cost and schedule barriers towards projects achieving these two Sustainable Design Guideline goals. b. Additionally, the County should clarify how efficiency calculations are to be conducted for two conditions: i. For all projects, clear language should be added to the Sustainable Design Guidelines on which compliance path under MN Energy Code should be used for the efficiency calculations. Our recommendation is to use the Appendix G (Performance Rating Method) instead of the Energy Cost Budget Method, which excludes the ability to count savings from fan energy, plug loads, and exterior lighting towards the 50% goal. ii. For projects on the district energy system once built, the JDA and Consultant should review how district energy system efficiency is factored into energy modeling guidelines. Most energy modeling guidelines (including those reference within LEED) do not allow the district plant to count towards a project’s measured efficiency reduction; if this something projects should be able to count in the JDA and Consultant’s expectations, explicit guidance will be needed on how those calculations are to be performed. c. Achieving 120% onsite renewable energy will be very dependent on building massing and use type. While this is a very feasible goal for low energy intensity spaces and possibly low-density residential, multi-story and higher energy intensity use types (such as manufacturing) may struggle to achieve this goal due to the relationship of their increased EUI to available roof/site area. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8c MEMORANDUM DATE: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Jagoe and Mitchell SUBJECT: Review Term Sheet The Term Sheet with Alatus has been updated to reflect the current status of terms for a Development Agreement. Attachments: Term Sheet Action Requested: None Rice Creek Commons Terms for Final Development Agreement May 2025 Working Draft 1 Term Sheet – December 2023 Parties: Alatus LLC and the Joint Development Authority (JDA) Current Status – 5/28/2025 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 Final Development Agreement shall be consistent with the Joint Powers Agreement. 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. Ramsey County will pay for the spine road and its related infrastructure. Information is needed from Developer about timing of trunk utilities and neighborhood infrastructure and the relationship between timing of special assessments and development to be able to evaluate risk to City of failure to pay assessments and risk to County of re- acquiring property under right of re-entry. Rice Creek Commons Terms for Final Development Agreement May 2025 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. The main source of the funding gap for the project has been the cost of mass grading the site. On 5/14/25, Developer proposed privately financing both the mass grading and fine grading of the site. Prior to this, Ramsey County had been analyzing a previous proposal by Developer for public bond financing the mass grading of the site. JDA staff have requested more details from Developer on this proposal, including the cost of the scope of work, evidence of private funding to cover this cost, and details on remedies for lack of performance. Information is needed from Developer regarding timing and financing structure for public parks, civic property conveyance, water tower, public parking, natural resources corridor. 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. TRC has been updated. Developer recently provided some information on the numbers of single-family houses, townhouses, apartments, and other housing types are planned, but there hasn’t yet been the opportunity to evaluate and discuss it. Rice Creek Commons Terms for Final Development Agreement May 2025 Working Draft 3 E. Housing Affordability The parties share a goal of providing affordable housing on the site. A minimum of 20% of the total housing unit count (392 units based on the maximum buildout of 1,960 total units) will consist of affordable rental housing units 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. The parties will additionally work toward constructing 10% 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). Additional information is needed to determine whether the additional affordable housing units beyond the minimum required are achievable and whether there will be affordable units at rents lower than 60% AMI. Information is needed to assure affordable housing goals will not be deferred. Input will need to be provided from affordable housing providers. Developer recently proposed a number of affordable for-sale housing units, but there hasn’t yet been the opportunity to evaluate and discuss it. 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. Developer recently proposed numbers of housing units that will be for-rent and for-sale, but there hasn’t yet been the opportunity to evaluate and discuss it. 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. Business subsidy law and policy requirements will need to be addressed and have not yet been discussed. Rice Creek Commons Terms for Final Development Agreement May 2025 Working Draft 4 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 and Developer agree that the Sustainability Design Guidelines will apply. The JDA Energy Advisory Committee has expressed support for geothermal district energy as part of the carbon-free energy solution for the site, based on the Clean Energy Analysis Report accepted at the November 2024 JDA meeting. Developer has expressed concern about connecting to district energy as well as the ability to find single-family developers to build all-electric homes. 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. JDA and Developer agree that a final decision on the future of Building 116 is out of the parties’ control and will take time, so the current legal documents under negotiation cannot rely on a specific outcome. Information is needed from Developer regarding ability to proceed with acquisition, grading and development in the absence of a resolution to the Building 116 relocation. 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. The financial responsibilities of all parties for long-term maintenance and operating costs of the development have not yet been discussed in detail because other core items need to be decided first. Rice Creek Commons Terms for Final Development Agreement May 2025 Working Draft 5 K. Ordinances and Policy Applicability The developer will comply with all applicable federal, state, and local ordinances. Affirmed that federal, state, and local ordinances apply. Developer has requested an exemption to Ramsey County Prevailing Wage Ordinance No. 2013-329 for all residential development on site. An exemption would require an amendment to the ordinance, and it is not clear if there would be political support for an amendment. 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. Developer has alternated between proposing that the property be conveyed in tranches or in one piece. As of 5/14/25, they have returned to a proposal where the property is conveyed in one piece. Measuring performance is fundamentally different if the property is conveyed in one piece versus in tranches. Given the current proposal is to convey the property in one piece, the main issues are the right of re-entry, definition of default, assurance of development in accordance with policy goals for development, developer financial capacity to sustain real estate debt and carrying costs through full build-out, and timing of development and revenues to pay city financing costs. 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. Negotiations ongoing. Elements of the Development Agreement are interconnected. Negotiation and evaluation of one element can impact the negotiation and analysis of several other elements. Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8d MEMORANDUM DATE: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Jagoe and Mitchell SUBJECT: Review Road Map The Road Map has been updated to reflect future meetings. Attachments: 2025 JDA Road Map Action Requested: None Month Date Meeting/Action or Deadline Topics or Notes JDA Commissioner Onboarding City/County onboarding of respective new commissioners 21 JDA Meeting Organizational Items, Sustainability Design Guidelines, Outlot A Concept Review 3 JDA Work Session 2024 JDA Annual Report, Legislative and Communications Update 15 17 JDA Meeting Outlot A Entitlements Review, Committee Assignments 27 JDA Advisory Committee Meeting Discuss Development Agreement 7 JDA Meeting Outlot A Development Agreement, Budget Review 9 JDA Advisory Committee Meeting Discuss Development Plans 16 Energy Advisory Committee Meeting Onboarding 1 5 JDA Meeting Budget Amendment 7 JDA Advisory Committee Meeting Discuss Development Agreement 14 JDA Advisory Committee Meeting Discuss Development Agreement 16 Energy Advisory Committee Meeting District Energy 30 JDA Advisory Committee Meeting Discuss Development Agreement 2 JDA Meeting 4 JDA Advisory Committee Meeting Discuss Development Agreement 18 JDA Advisory Committee Meeting Discuss Development Agreement 30 Jul 7 JDA Meeting Aug 4 JDA Work Session Jun Expiration: Preliminary Development Agreement with Alatus Jan Rice Creek Commons 2025 Roadmap Feb Deadline: JDA Annual Report due to City and County Deadline: Draft 2026 JDA Budget Mar Apr May 1 Deadline: Coordinate JDA Budget with City and County budget processes 9 JDA Meeting Potential Community Education Event 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 Key JDA Meeting JDA Work Session Advisory Committee Meeting Deadline Other Meeting Nov Sept Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 8e MEMORANDUM DATE: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Directors Jagoe and Mitchell SUBJECT: Receive Alatus Presentation Alatus has requested to present to the JDA on the following topics: •Reasoning behind Alatus proposal to privately fund the mass grading for site and how they see it coming together. •Review the value creation and timing worksheet provided to the advisory group. •Housing affordability and current discussions with Habitat for Humanity. •Alatus’s desire to get to a definitive development agreement and purchase agreement for the property so they can start the mass grading in 2025. Attachments: None Action Requested: None Joint Development Authority TCAAP Redevelopment Project Joint Development Authority TCAAP Redevelopment Project AGENDA ITEM 9 MEMORANDUM DATE: June 2, 2025 TO: Joint Development Authority Board of Commissioners FROM: Director Mitchell 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: June 2, 2025 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