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HomeMy WebLinkAbout10-07-24 JDAJoint 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 12/2/24