TCAAP redevelopment moves forward but key sticking points remain

A major redo of the Twin Cities Army Ammunition Plant site in the Ramsey county suburb of Arden Hills is moving forward. Public officials overseeing the project Tuesday signed off on a summary master development agreement. But Arden Hills city leaders remain concerned that taxpayers would have to pay a big share of the development costs.

The TCAAP site — now called Rice Creek Commons — is a prime piece of real estate in the north Twin Cities metro. The 427-acre plot of land sits right beside Interstate 35W, about a dozen miles from either downtown.

The military quit making ammunition there the year America celebrated its bicentennial, but economic uncertainty and contaminated soil vexed policymakers for decades. Ramsey County bought the site in 2013 and paid to clean it up. Now planners say homes, businesses and parks will sprout there in a few years.

Arden Hills city leaders are eager to see that happen. But Mayor David Grant says Ramsey County officials are glossing over key details that could put a financial burden on the suburb of around 10,000.

The biggest sticking point is that the county wants Arden Hills to pay for new water and sewer lines. The development agreement calls for the city to use credits on sewer availability charges, consisting of fees previously paid to the Metropolitan Council for sewer and water hookups.

Grant insisted that's not something Arden Hills should have to do.

"SAC credits are owned by the city of Arden Hills, and they are a city asset. And I am shocked that the documents before us are asking this body to give away a city asset," Grant said at the Tuesday meeting of the joint development authority set up to oversee Rice Creek Commons. He sits on the panel along with an Arden Hills council member.

Their two votes weren't enough to stop approval of the summary master development agreement. The panel signed off on the plan with the sewer and water issue still in dispute.

Louis Jambois, Ramsey County's lead negotiator on the Rice Creek Commons project, said sorting out the SAC credits worth $5.8 million could make or break the deal.

"Projects can rise or fall, sink or swim, on $5.8 million. I think that's what we're seeing here tonight," Jambois said.

Ramsey County Commissioner Blake Huffman voted in favor of the agreement, and said it's important to keep the project on track. He's confident the issues can be resolved.

"There's three parties involved: the city, the county, and the developer," Huffman said. "And the three of us have to sit down and earnestly have these conversations. Because as you heard, the city is very excited about the project, about moving forward. But they have some issues that they need to have further discussed."

Last week the Ramsey County Board approved selling the site to the developer Alatus LLC for nearly $63 million.

Arden Hills City Council Member Brenda Holden supports redeveloping the old Army ammunition plant site, but worries about what the project could cost her city, which, she points out, has an annual budget of just $5 million.

"The minute any of the property leaves county ownership, the city must now take on the responsibility of city duties," Holden said, adding those duties could include more police and emergency management. She said Arden Hills needs to be reimbursed for money already spent on its own planners and consultants.

The project timeline calls for final approval of the master development agreement by Oct. 1. Workers would start grading the land and laying sewer and water lines next spring, and construction on buildings is scheduled to start in 2021.