Sponsor: Community & Economic Development
Title
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Third Preliminary Development Agreement with AECOM for Ramsey County Riverfront Properties
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Recommendation
recommendation
1. Approve the Third Preliminary Development Agreement with AECOM for the development of Ramsey County Riverfront Properties for the period of October 21, 2020 through December 31, 2020.
2. Authorize the County Manager to execute the agreement.
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Background
background
Ramsey County is in a unique position to redevelop the riverfront property, formerly the Ramsey County West and Adult Detention Center, into an unparalleled development opportunity and create a significant public amenity along the Mississippi River.
Development of the property is the next step in achieving the County Board vision for the Riverfront Properties site. In 2017, the County Board approved the release of a Request for Development Interest to identify development interest in this site and outlined an iterative, multiphase process to select a preferred buyer and developer for the site. AECOM was identified as the recommended developer.
On January 22, 2019, the County Board approved a six-month exclusive agreement with AECOM to perform due diligence on its proposal to construct a phased mixed-use development known as Riversedge and report regularly to the Board.
On July 23, 2019, AECOM provided summary of its due diligence activities, including its determination of Riversedge’s market feasibility, regulatory feasibility, and financial feasibility. At the conclusion of the workshop, the County Board supported staff’s recommendation to draft a second preliminary development agreement with AECOM focused on implementation activities.
On August 25, 2020, the Ramsey County Board met in a closed meeting to discuss terms of the sale of riverfront properties property.
The Third Preliminary Development Agreement continues the exclusive relationship with AECOM and requires AECOM and the development to continue to meet multiple benchmarks, including meeting with project stakeholders and further refinement of matters such as project market feasibility, phasing, financing, height variances and other City approvals, and cooperation with the affected railroads and utilities. The agreement is for additional 3 months. A short extension of the PDA would allow the purchase and development agreements to continue to advance. A final Purchase and Redevelopment Contract will come to the Board for approval.
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County Goals (Check those advanced by Action)
☐ Well-being ☒ Prosperity ☒ Opportunity ☐ Accountability
Racial Equity Impact
This action has limited impact on racial equity in service delivery. A future development agreement for Ramsey County Riverfront Properties will impact wages, contracting and workforce inclusion goals and access to affordable housing. Construction projects resulting from a future development agreement will include goals for 32% minority and 20% women in conformance with the County’s adoption of the State of Minnesota’s Workforce Inclusion and Contracting Goals.
Community Participation Level and Impact
Representatives from various downtown stakeholder groups participated in interviews of the shortlisted developer teams. The input from these downtown interests was gathered and helped to inform the recommendation of AECOM as master developer to the County Board.
☒ Inform ☒ Consult ☒ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Sufficient funding for out-of-pocket costs are available within the approved Riverfront Properties Project Budget. An escrow funded by AECOM was established during the original preliminary development agreement to reimburse the County for extraordinary costs.
Initial project financial information was made available through the due diligence process and will continue to be refined. Through continued refinement a project scope and schedule, the County Board will determine whether the County and AECOM will enter into a formal development agreement for the project and the level of public financing commitment.
County Manager Comments
County board approval is requested to enter into this agreement.
Additional project information can be found at <https://www.ramseycounty.us/your-government/projects-initiatives/riverfront-properties>.
Last Previous Action
On August 25, 2020, the Ramsey County Board met in a closed meeting to discuss terms of the sale of riverfront properties property.
On October 22, 2019, the County Board approved a second Preliminary Development Agreement with AECOM for the development of Ramsey County Riverfront Properties for October 22, 2019 to October 22, 2020.
On January 22, 2019, the County Board approved a six-month exclusive preliminary development agreement with AECOM for due diligence activities in the development of Ramsey County Riverfront Properties (Resolution B2019-027).
Attachments
1. AECOM Third Preliminary Development Agreement