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HomeMy WebLinkAbout12-02-24 JDAJoint Development Authority Monday, December 2, 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), Jenny Boulton (Kennedy & Graven) 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 October 7, 2024 and the November 4, 2024 JDA meeting minutes, as presented. Motion carried. Public Input None. Consent Agenda None. Old Business None. Public Hearings None. New Business a. Communications Report Ms. Mitchell stated 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. Commissioner Reinhardt stated she appreciated the communication plan that was in place. Commissioner Monson commented in general the plan was working well and she recommended continued outreach be made to the public through open houses or other formats. She asked if a legislative plan had been considered for 2025. Ms. Mitchell reported Ramsey County Government Relations was taking the lead on this with Goff Public. Commissioner Monson questioned when the JDA would be hearing about this plan. Ms. Mitchell stated she could provide the JDA with an update at the next meeting. Commissioner Reinhardt reported a virtual Ramsey County delegation meeting was held today and noted the top priority for Ramsey County was Rice Creek Commons. She explained the group discussed how it would be difficult to move this project without a bonding bill in 2025, but reported all legislators would be working in order to move this project along. Commissioner Fabel stated Senator Marty and Representative Moller attended a recent City Council meeting and shared strong support for a bonding bill. Chair Wicklund requested a Communication Update be placed on the February JDA agenda. b. Update on Developer Discussion Ms. Mitchell provided the JDA with an update on Outlot A. She explained Ryan Companies continues to advance negotiations with one potential end user for the site. She stated this end user only needs a portion of the site and so Ryan Companies has asked to amend the purchase and sale agreement to close on a smaller portion of the site first and extend the term of the agreement further to allow them to find additional users. She reported the County was feeling positive about this and would be speaking with Ryan Companies about this further next week. Commissioner Fabel reported the Costco bid came in $3 million higher than the Ryan Companies bid and Ryan Companies has not been able to close on this property. He discussed how the suburban office market was off. He asked if the County would be willing to reopen discussions with Costco for the thumb parcel. Ms. Mitchell indicated the County was allowing Ryan Companies to lead the discussions with the end users and the County was reacting to the plans that were brought forward. Commissioner Fabel stated Ryan Companies was asking to push this project back forward and noted the County did not have to allow for this delay. Commissioner Reinhardt believed it was important for the County to stick to the agreement that was in place with Ryan Companies. She indicated Ryan Companies had a plan and she would like to allow for this plan to move forward. Commissioner Frethem stated one of the reasons the County did not go with the Costco plan was because it went against the energy goals for this site. Ms. Mitchell provided an update on the California parcel. She discussed the terms of the preliminary agreement that was in place with Alatus. She reported a purchase and sale agreement with a new structure was recently sent to the County for review. She indicated the County Board would be holding a closed session meeting on Tuesday, December 3 to review this new agreement. Attorney Bolton further discussed the preliminary agreement that was in place with Alatus noting the goal was to reach a full agreement on the development by the end of June of 2025. She commented there were interim goals within this agreement, which included having substantial agreement on the terms of the development agreement by October 31, 2024. She explained there has not been much progress when it comes to the terms of the substantial agreement. She indicated the JDA could conclude that in good faith, that the parties have not reached a substantial agreement as to the terms and give notice to the other party that this goal has not been reached. Within 30 days of giving notice, there is a period to continue negotiations in the hopes of reaching substantial agreement on the terms. If at the end of the 30 day period that hasn’t been achieved, the preliminary agreement would terminate. Chair Wicklund stated the interim goal posts have been moving but they have not been met. He indicated it appears there has been potential delays in accomplishing goals and it sounds like in good faith, the JDA could start to put some things in motion about giving notice. He asked if the JDA had thoughts on this matter. Commissioner Reinhardt stated when considering where this project began to where things are now, the County was in active negotiations. She explained a close meeting would be held by the County tomorrow to consider the revised agreement. She indicated the County board would be meeting again on December 17. While she understood this was frustrating, she also knew how hard everyone was working. She sent a special thanks to Commissioner Frethem for her efforts on this project. She believed this project would continue to move forward and did not believe now was the time to give a 30 day notice. She stated she was hopeful this project would move forward. Commissioner Frethem explained the County had scheduled a closed session with Alatus for November 26 to discuss the purchase and sale agreement, however, this meeting was canceled. She indicated she reached out to staff at Alatus with a reminder the JDA had one more meeting in December and that the County board had only two more meetings. She commented a purchase and sale agreement would have to be reviewed on December 3, in order to be ratified on December 17. She indicated the Board would discuss the final draft that came to the County tomorrow and would determine the next steps forward. She explained based on the conversations she has had over the past few weeks she was less hopeful that the County would get there. She stated what becomes more concerning to her was that the JDA and the County board would have substantial change to their representation. She indicated it would be harder to execute a deal under these new conditions, which could cause additional delays. She thought the group was making progress, but the agreement terms have not gotten there. She stated the JDA could consider whether or not they want to continue to make time, or if the 30 day clock should be started. She stated in good faith all parties believed it was best to stick with the developer that has worked hard on this project, but this hasn’t resulted in a workable deal. She commented if action was not taken today, the JDA should consider calling a special meeting to take action prior to 2025. She reported the term substantial agreement was somewhat ambiguous. She asked if the JDA could state if an approved purchase and sale agreement was reached in the next 30 days the JDA would continue and if not, the group would dissolve. Attorney Bolton stated the language within the agreement is intended to be the party that is making the determination would determine what it believes in good faith was reaching substantial agreement as to the terms. She believed it would be good to have direction from the JDA to say what that means and direct staff to provide notice if this condition were not met. Chair Wicklund reported Ramsey County would have a County Board meeting on December 17 where the public may learn more about the outcome of the discussions with Alatus. He discussed how the makeup of the JDA could change in the new year. Commissioner Frethem anticipated at least three members would be new. Chair Wicklund appreciated the comment that depending what happens during the closed session meeting and County Board meeting on December 17, the JDA should respond, which would require a special meeting to deal with the new reality or facts facing this project. Commissioner Monson reported the JDA received an LOI on July 31 and the last time the County spoke with the developer regarding a purchase agreement was October 17. Ms. Mitchell stated she has emailed back and forth with Alatus and was told the developer did not have anything new after October 17. Commissioner Monson stated since that time the County has communicated via email with the developer and the developer has had no updates. She commented the developer has now provided the County with a new purchase and sale agreement that would be reviewed by the County Board on December 3. She questioned if the County could share any details on the new structure and financing for the mass grading. Ms. Mitchell stated at a high level, the new terms would have Alatus finding private financing for the mass grading. She indicated the County would transfer the land to Alatus and they would finance the mass grading on their own. Commissioner Monson reported there was a lot of discussion surrounding the mass grading financing and the JDA was told there was no way the project could be privately financed. She commented now a new proposal was before the County that states the mass grading could be financed privately. Ms. Mitchell stated she would be doing her due diligence to review the new concept to ensure the vision and goals of the development still happen under the new structure. Commissioner Monson questioned when the new developer began with Alatus. Ms. Mitchell stated Tony Kuechle was brought on board with Alatus this summer. Commissioner Monson commented on the amount of turnover that has occurred within Alatus. She understood the purchase agreement was a County issue, but she appreciated the fact the mass grading was proposed to be financed privately versus publicly. However, this was a change at the 11th hour. She recommended the JDA wait to see what happens after the County board meets. Commissioner Reinhardt noted she deferred to Commissioner Frethem on this matter and noted some of her hope has been dashed. She supported the JDA holding a special meeting sometime after December 17. Commissioner Fabel stated another timing issue to consider was that the City had a term sheet with the developer regarding the City parks, TIF, and the civic space. He indicated these issues would have to be revisited at some point in time before Alatus could conclude its deal with the County. He stated these were important issues to the City and he hoped Alatus would approach the City regarding these matters. Chair Wicklund asked if the JDA would be able to meet on December 23 or January 6. Commissioner Monson supported the JDA holding a special meeting on December 23 instead of January 6. The JDA members were not available to meet on December 23. Commissioner Reinhardt suggested the JDA meet on December 20 at 4:00 p.m. The JDA supported this meeting time. c. Review Road Map Ms. Mitchell reviewed the 2024 and 2025 road map in detail with the JDA. She explained the January JDA meeting has been canceled due to the timing of new members being appointed. She indicated the County and City would use the month of January to get new members onboarded. Administrative Director’s Report Ms. Mitchell stated Kimley Horn continues to work with the County on the spine road. She indicated a LEED for Communities kickoff event would be held on Friday, December 6. Development Director’s Report Director Jagoe provided the JDA noting the City Council has held two worksession meetings to discuss the civic and park sites within Rice Creek Commons. She indicated the Council discussed previous considered uses on the civic site. She noted these discussions would continue on Monday, December 16 at 5:30 p.m. Commissioner Updates Commissioner Reinhardt stated it has been great serving on the JDA. It was her hope this development would continue moving forward and she thanked staff for all of their efforts. Commissioner Fabel commented he has had a positive experience serving on the JDA as well and he appreciated how an additional 500 units of housing had been added to this development. Commissioner Frethem indicated a project like this was extremely complicated and noted this project has a great deal of history in place. She discussed how this group has had to work through this history and she was proud of how this group has worked through these challenges. She appreciated the fact the JDA was willing to hold a special meeting later in December. Commissioner Monson thanked Commissioners Reinhardt, Fabel and Frethem for their service on the JDA. Adjournment Meeting adjourned at 6:20 pm. Approved _____________________________________ _______________________ Jon Wicklund, Chair Date 1/21/25