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Posted on: May 10, 2022

City and Alatus Agree on Terms for the Rice Creek Commons (TCAAP) Project

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At the May 9, 2022 meeting, the City Council approved an agreement between the City and Alatus to move the TCAAP project, or Rice Creek Commons, forward. The agreement on Rice Creek Commons is the culmination of months of discussions and planning between City representatives and Alatus.  The agreement follows a court ruling in Arden Hills' favor in the litigation that was brought by Ramsey County against the City. The terms, which significantly reduce risk to the City, will be incorporated into a future Master Development Agreement, and will move forward when Ramsey County sells the land to Alatus to begin development.   

 The agreement includes:

  • Substantial risk reduction for the City, $17 million in Tax Increment Financing (TIF) for the project, and affordable housing on the site.
  • This agreement reduces risk to the City by having Alatus privately finance the construction of a water tower (estimated at $5 million), and water and sewer utilities (estimated  at $3.5 million), and other necessary infrastructure improvements.
  • This financing structure alleviates the City and its residents of a debt burden should the project stall due to unforeseen circumstances.
  • Alatus has also agreed to fund City deficits on the project during the first five years should revenues not be sufficient to cover expenses.
  • The Developer will reimburse the City for previously incurred planning costs of $1 million. The Developer has also agreed, at their cost, to construct three new City parks, previously estimated at $14.5 million and turn them over to the City. The $17 million in TIF provided to Alatus will offset costs to provide parking.  

The Rice Creek Commons project will include 326 units of affordable housing, of which 20 percent will be owner-occupied. Furthermore, of the 326 units, 180 units are planned to be affordable at 50 percent and 60 percent of the Area Median Income (AMI) for Ramsey County.

Other previously established criteria of the development will remain part of the agreement. For example, the overall density on the site will be 1,460 housing units.  When fully developed the project will also create an estimated 4,000 additional jobs and new commercial, retail, and industrial development.  

The City hopes that Ramsey County will soon reach an agreement and sell the property to the Developer to move this almost $1 billion development forward.

May 10, 2022 Press Release on Rice Creek Commons Agreement

Term Sheet Approved by the City Council and Alatus

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