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HomeMy WebLinkAbout01-21-25 SJDAJoint Development Authority Tuesday, January 21, 2025 Arden Hills City Council Chambers Special Meeting Minutes 5:30 pm Roll Call Joint Development Authority: Chair Jon Wicklund, Commissioner Tara Jebens-Singh, Commissioner Kurt Weber, Commissioner Mary Jo McGuire, Commissioner Tena Monson Also present: Jessica Jagoe (Arden Hills); Ella Mitchell (Ramsey County), Rachel Tierney (Kennedy & Graven) Roll call taken. Approval of Agenda Motion by Commissioner Monson seconded by Commissioner McGuire to approve the agenda as presented. Motion carried. Approval of Minutes Motion by Commissioner Monson seconded by Commissioner Weber to approve the December 2, 2024 JDA meeting minutes as presented. Motion carried. Public Input Lyle Salmela, 1480 Arden Vista Court, stated he supported the sustainability guidelines, noting they were well written. He appreciated the all electric LEED design standards stating this would be a strong asset for this community. He indicated he did have concerns with the Ever-Green report and commented further on the various types of heat pumps. He recommended there be a way to waive the rooftop solar requirements by using grid solar. Consent Agenda None. Old Business None. Public Hearings None. New Business a. Approve Chair and Vice Chair Ms. Mitchell stated per the Bylaws of the JDA, the JDA Board shall have a Chair and a Vice Chair. The Chair presides over the meetings of the JDA Board, and in the absence of a Chair, the Vice Chair shall assume the Chair's duties. The Chair and Vice Chair must be elected annually by the JDA Board. The Chair shall be a non-elected official member appointed by the City; the Vice Chair shall be appointed by the Ramsey County Board from its members on the JDA Board. Arden Hill City Council appointed Jonathan Wicklund for a two-year term (2025-2026) as Chair at the December 9, 2024, council meeting. Ramsey County Board appointed Tara Jebens-Singh as Vice Chair for a one-year term (2025) at the January 7, 2025, County Board meeting. Motion by Commissioner McGuire seconded by Commissioner Weber to confirm the appointment of Jonathan Wicklund as JDA Chair and Tara Jebens-Singh as Vice Chair of the TCAAP Joint Development Authority for 2025. Motion carried. b. Review Road Map Ms. Mitchell reviewed the scheduled meetings for 2025 and TCAAP Road Map with the JDA. She reported a special worksession meeting was scheduled for Monday, February 3. She asked that the March JDA meeting be rescheduled. Commissioner Monson recommended the deadline for the preliminary development agreement be placed in the Road Map. Ms. Mitchell stated she would put the June 30, 2025, deadline into the Road Map. Chair Wicklund requested staff discuss how communications are managed for the JDA. Ms. Mitchell explained the County works with Goff Public on the PR strategy and communication efforts for Rice Creek Commons. Chair Wicklund questioned what date should be selected for the March JDA meeting. Director Jagoe reported the Arden Hills City Councilmembers would be available March 17 or March 24. The JDA supported holding the March JDA meeting on March 17. c. Review JDA Budget Ms. Mitchell reviewed the budget for 2025 with the JDA noting this was approved by the JDA on November 4, 2024. Commissioner Monson asked how the JDA did at the end of 2024. Ms. Mitchell reported she could provide this information to the JDA at the February meeting. Commissioner Monson questioned if there was an increase or decrease in funding from the County in 2024. Ms. Mitchell stated she believed the County had provided a similar amount of funding in 2024 and 2023. d. Approve Sustainability Design Guidelines Ms. Mitchell stated in late 2023, the JDA engaged Ever-Green Energy and LHB to analyze implementation strategies for the JDA’s Green Energy Vision. This analysis consisted of a comprehensive energy analysis to understand the energy demands of the planned development, a description of strategies to reduce that energy demand (primarily through high- performance building design), and analysis of renewable energy technologies to meet the remaining energy demand. As a part of this process, consultants and staff met with project developers to discuss sustainable development and clean energy strategies. Ever-Green Energy and LHB presented their initial findings at the October 2024 JDA work session and their final report, the Clean Energy Analysis Report, was accepted by the JDA at the November 2024 meeting. At the November meeting, the JDA approved a Clean Energy Policy: Rice Creek Commons seeks to be an all-electric, carbon-free community. Ms. Mitchell commented that included in the Clean Energy Analysis Report was a draft of Sustainability Design Guidelines (SDG) (Appendix I), which describes feasible development standards that tangibly support the Green Energy Vision and Clean Energy Policy. These include standards for LEED certification, building energy efficiency, all-electric buildings, photovoltaic (PV) system installation, electric vehicle charging infrastructure, and reporting. At the November 2024 meeting, the JDA expressed a desire to understand the waiver process and implications of SDG standards for the development prior to approval. Staff subsequently worked with the consultants at LHB and the JDA attorneys to address these items, and the SDG have been updated to describe implementation and compliance (Section 3), including the waiver approval process. Ms. Mitchell reported as described in Section 3 of the Sustainability Design Guidelines, the compliance process would run concurrently with other JDA review processes and be supported by the consultant team at LHB. LHB would help developers align with the SDG (identifying alternative technologies, strategies, and financing tools), manage the waiver process (including JDA review and approval), and provide a memo describing the development’s SDG compliance measures. The JDA staff would incorporate these measures into the development agreement for JDA approval. Rick Carter, LHB, provided the JDA with a high-level overview of the sustainability design guidelines noting they support the development being all electric, carbon free and certified LEED for communities. He suggested each building within the development receive the LEED silver certification. He explained the development would have all electric buildings, and commented on how exceptions would be considered. Ms. Mitchell further discussed the implementation and compliance section in the guidelines document. She noted the guidelines would provide clear expectations for developers and a starting point for negotiations for sustainability items for a development agreement. She reported by approving the sustainability guidelines this would further the green energy vision for this development while also providing staff direction on acceptable sustainability terms. Commissioner McGuire requested comment on the air source heat pumps that were not in the report, as was noted by Mr. Salmela. Mr. Carter stated he had spoken to Mr. Salmela and noted the district energy analysis options portion of the report was completed by Ever-Green. He explained Ever-Green was not excluding the use of air source heat pumps but noted the funding sources were less favorable. He commented at The Heights, there were three different types of heat sources. He anticipated this development would also have a variety of heat sources, including air source heat pumps. Commissioner Weber stated if this development was as successful as predicted there be an accumulation of energy credits. He questioned who would benefit from the energy credits. Mr. Carter stated he was not an expert in this area. He noted if credits were created, they would be owned by the building owners, unless there was some sort of arrangement in place. Commissioner Weber discussed how affordable housing units would be created within this development and he hoped lower energy costs would be possible for these units. Commissioner Monson commented typically excess energy from solar typically goes back to Xcel Energy. In addition, renewable energy credits typically went back to Xcel as well. Commissioner Weber discussed the waiver process and asked what standards would be applied to the waivers. Ms. Mitchell indicated this still had to be worked out. She explained the direction from the JDA has been to pursue a carbon free community, which was a very high standard. She explained staff would have to consider the impact waiver requests would on carbon emissions. She noted the County was pursuing LEED for Communities, which had a scoring system the JDA and staff would have to take in consideration. Commissioner Weber inquired of the development would be carbon free or carbon neutral. Mr. Carter stated the development would be carbon free per the LEED for Communities guidelines. Commissioner Jebens-Singh questioned which guidelines would be the most difficult to achieve. Mr. Carter discussed the components of exceptions that had been considered within The Heights development. Commissioner Jebens-Singh asked how often the guidelines would have to be revisited given the changing environment. Mr. Carter anticipated the guidelines may have to be revisited, but noted The Heights guidelines have not been changed over the past four years. Commissioner Monson discussed how the electrification requirements would eliminate emissions within this development. She commented on how tax credits may be able to be pursued individually but not as an overall district. She explained a $10 million funding opportunity would be pursued by the JDA to assist with the footprint of the district heating system. She requested further information on what it would look like to bring gas into the development. Mr. Carter stated the plan was to consider allowing gas on the perimeter, but otherwise gas would not be available within the development. He reported hydrogen fuel cells may be another option for users in the future. Commissioner Monson commented on how important it would be for Ryan Companies to move fast with an organized plan for their project. Chair Wicklund stated staff was asking the JDA to adopt the Sustainability Design Guidelines. He indicated the JDA would have to have the understanding adjustments or modifications may be necessary in the future. He suggested the waiver section be placed on the Road Map in order to allow the JDA to discuss this matter in further detail at a future meeting. Commissioner McGuire supported this recommendation noting she did not want precedent to be set with the waivers and wanted a more clear understanding on how or when waivers would be considered. Commissioner Weber supported moving the guidelines forward with the understanding there would be further discussions regarding the waiver process. Commissioner Jebens-Singh indicated she supported the guidelines moving forward as well with the understanding the JDA wanted a very good project that was not downgraded to fair through concessions or waivers. Commissioner Monson stated she was comfortable with moving the guidelines forward. Chair Wicklund asked that the Energy Advisory Committee meet and provide the JDA with recommendations on how the waivers should be considered. Commissioner Monson noted she was only member on the Energy Advisory Committee at this time, but explained she would be willing to make recommendations for the JDA to consider in February. Chair Wicklund requested a representative from the County consider serving on the Energy Advisory Committee. Motion by Commissioner Monson seconded by Commissioner Jebens-Singh to approve the Sustainability Design Guidelines for Rice Creek Commons. Motion carried. e. Outlot A Phase 1 Concept Review Director Jagoe stated the Joint Development Authority (JDA) should consider a request for a Concept Plan Review for a proposed office and manufacturing use development on the north side of the existing Outlot A located off of Old Highway 8. Ryan Companies US, Inc (Applicant), is seeking feedback from the JDA on the concept plan in advance of the full submittal which would include a land use application for items such as Subdivision Plan Review, Site Plan Review, Permitted Adjustment Requests, and Building Permit Review. The Concept Plan Review process is an opportunity for the JDA to provide comments and questions regarding proposed developments and permitted adjustment requests. A concept review is considered advisory and is nonbinding to the JDA and Applicant. No formal action can be taken regarding the application, aside from determining if the application meets the regular process or must be referred to the City TCAAP Redevelopment Code (TRC) Amendment Request process. A formal application will be subject to the full review process, including a public hearing. She provided further comment on the proposed plans for Outlot A noting the applicant would have to revise their plans in order to comply with the TRC or seek a TRC amendment based on deviations with respect to off street parking, storage area, ceiling height requirements, building façade and shading requirements. She explained the applicant is seeking feedback from the JDA on their approach to sustainability for this project. Eddy Wolf, Ryan Companies, thanked the JDA for considering his concept plan. He explained he had a targeted groundbreaking date of April 1, 2025 noting time is of the essence for Ryan Companies and his future tenants. He indicated this project would create a 157,000 square foot newly constructed build to corporate headquarters for Micro Control Company, which was currently housed in Fridley. He noted this business would provide over 240 jobs and anticipates 20% growth over the next five years and offers strong wages/benefits. He indicated 90% of the proposed building would be comprised of office, R&D and manufacturing spaces. He stated Ryan Companies believes this was the type of project the JDA has been waiting for on Outlot A and was consistent with the stated goals within the TRC. Chad Lockwood, Associate Director of Engineering for Ryan Companies, spoke to the site plan further. He described how the building would be oriented on the parcel noting shared access would be provided to the south. He reviewed how the building would be broken down into office, storage, R&D and manufacturing space. It was noted the building would be accessed from Old Highway 8. He indicated the site would have 300 parking spaces and outdoor amenities were being proposed on the south side of the building. Kaitlin Veenstra, Ryan Companies (joined the meeting remotely), commented on the sustainability vision for this project. She discussed the parameters for Outlot A noting cost and feasibility are being taken into consideration for the tenants operation and must also work within the tenants schedule requirements. She indicated a hybrid geothermal approach may have to be considered for this site given the size of the land area and due to the fact Darcy may not be available to drill the needed wells. She reported she had a great solar company she was working with noting a roof structure would be installed. She stated she looked forward to working with the City and County to assist with making this dream a reality. Commissioner Weber thanked Ms. Veenstra for her presentation and for showing how Ryan Companies was working to meet the JDA’s sustainability design guidelines. Chair Wicklund asked for further comments or questions from the JDA. Commissioner McGuire thanked Ryan Companies for finding a good tenant for this site. She asked if the proposed sustainability efforts would be new for this tenant. Mr. Wolf reported this would be very new to the proposed tenant. He indicated it was his goal to reach these standards, but commented on how difficult it would be to meet all eight requirements. Commissioner McGuire stated she wanted to see the development on Outlot A being a good example for the remainder of the Rice Creek Commons development. She thanked Ryan Companies for the information that was presented to the JDA. Mr. Wolf thanked both City and County staff for being great to work with. Commissioner Weber thanked Ryan Companies for all of their efforts to bring a corporate headquarters to this site. He appreciated how this development would show that Rice Creek Commons was open for business. He supported this project adhering to the sustainability design guidelines as closely as possible. He commented on how this project would be a feather in the cap of the future tenant, especially as this business grows. Commissioner Jebens-Singh thanked Ryan Companies for meeting the JDA’s short meeting deadline. She appreciated how Ryan Companies was working to meet the sustainability design guidelines. She questioned what would prohibit a project from hitting the guidelines, asking if this would be cost, technical feasibility, availability of materials or the expedited timeline. She inquired if a project goal was set for the number of jobs on Outlot A. Ms. Mitchell stated a number had not been targeted, but stated a corporate campus was anticipated for this site. She discussed how the office market had changed over the past five years and noted the focus now has been on high quality jobs. Commissioner Monson requested further comment on the division of meeting these goals for Ryan Companies versus the tenant. Mr. Wolf explained Ryan Companies was the developer and the third party contractor for the site and shell of the building. He noted the tenant has hired their own contractor for the inside of the building. Ms. Veenstra commented her intention was that there would be a joint effort to meet the sustainability design guidelines. Commissioner Monson inquired how much time was a factor in not being able to meet the goals. Mr. Wolf reported time was very critical for this deal. He stated he was working on executing a lease with the tenant that should be finalized in the next few weeks. He explained breaking ground on April 1 was critical for them. Commissioner Monson requested further information regarding the process that would have to be followed by Ryan Companies in order to amend the TRC. Director Jagoe explained if the applicant chooses to seek a TRC amendment, this would be a 60 day process. She indicated a TRC amendment would also have to be approved by the County, which will add a couple more weeks to the process. She stated a final approval would also be needed from the JDA, which may add another 30 days to the process. She reported final plans would be needed in order to consider a TRC amendment. She explained a public hearing would have to be held by the City and JDA. Chair Wicklund asked if there were any project stopping comments from the JDA. Chair Wicklund requested an example of a TRC code that the JDA could modify within a certain percentage. Director Jagoe discussed the TRC parking requirements and noted the JDA could approve a deviation of 10%, otherwise a TRC amendment would have to be considered by the City. Chair Wicklund commented on how the TRC deviations were built into the code in 2016 in order to allow for minor variances without having to go back to the City for consideration. Commissioner Monson reported she supported the proposed variances in Attachment C. She suggested Ryan Companies provide staff with feedback on potential development hurdles. Commissioner McGuire stated she would welcome any feedback Ryan Companies had regarding any difficulties they were having with the TRC. She commented she was more concerned with the sustainability goals than the requested variances. Commissioner Weber indicated he did not have any issues with the proposed variance requests. He was of the opinion the EV parking information was very short within Ryan’s proposal and asked that this be further investigated in order to meet the sustainability guidelines. Commissioner Jebens-Singh questioned if the TRC was too stringent in order to meet the practical application for building materials. She stated it would be helpful to understand how much of this project was deviating from traditional building codes and sustainability standards. Mr. Wolf stated he would try and quantify this for the JDA. Commissioner Weber suggested Ryan Companies attend a future JDA worksession meeting in order to provide an update on the plans. Administrative Director’s Report Ms. Mitchell noted the County was working on an amendment for the purchase and sale agreement for the first ten acres of Outlot A and the remaining portion would be closed on later. She then provided the JDA with a legislative update noting Ramsey County would be requesting $25 million in grant funding for the spine road within Rice Creek Commons. She stated the final design of the spine road was on schedule and the County hopes to have a community engagement event this spring to display the plans. She explained the County was working with Sustainable Investment Group (SIG) on the LEED for Communities precertification process. She reported Kari Collins has been appointed as the Deputy County Manager for Economic Growth and Community Investment. Development Director’s Report None. Commissioner Updates Commissioner Jebens-Singh stated it was great to see movement in this development. Commissioner Monson welcomed the new members to the JDA. Adjournment Meeting adjourned at 7:29 pm. Approved _____________________________________ _______________________ Jon Wicklund, Chair Date 3/17/25