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November 6, 2018

Mr. Perrault:

Thank you for making time to meet with me to discuss the current state of the Rice Creek Commons project and
steps forward involving Ramsey County, Arden Hills and Alatus, LLC. We have reached a point during which I will
be moving staff resources away from the Rice Creek Commons prorect and toward other development
opportunities that at this point appear better aligned with the County's vision to build a community in which all
are valued and thrive. ldo not make this reallocation without careful thought and consideration, but to be
responsive to the community's input and ensure we are always considering stewardship of public resources,
change is necessary at this point in time. The information below outlines the rationale lverbally shared with you
during today's d iscussion.

. Negotiations with Arden Hills on the Master Developer Agreement with Alatus, LLC at Rice Creek
Commons have become increasingly unproductive due to significant differences between all parties. The
perception Ramsey County is Betting from the City of Arden Hills is that they view the project as an
inconvenience rather than as a benefit.

. Arden Hills has presented Ramsey County with what appears to be a 'final' offer of sorts, without a
realistic indication of being willing to make any substantial changes.

. Although Arden Hills continues to demand that the county contribute more than a fair share of what has
been outlined from the outset in our collective a8reements. For instance: the original proposal assumed
a city contribution of S10 million, but the current offer from Arden Hills is substantially less than that
amount. Arden Hills is also requesting that any and allfuture operating and project costs and risks are
transferred to Ramsey County. While the need to change course is embedded in far more than specific
points of negotiation, these are significant issues in which resolution currently appears unlikely.

. The past two months of negotiation on a Master Development Agreement (MDA) underscores that
Ramsey County and Arden Hills do not currently share the same vision for Rice Creek Commons to build
an inclusive community in which all types of people are able to live, work and recreate. After listening to
public testimony from residents throughout the county and receiving letters relterating similar
positions, Ramsey County does not feel that broader community interests and voices are being fully
incoroorated.

. Density and affordable housing are core issues in building a sustainable community at Rice Creek
Commons, but Arden Hills does not appear open to negotiating these issues further.

. Additionaldensity will improve the project's financialfundamentals and increase affordable housing, tax
revenues, and transit connection opportunities. Without additional density it appears impossible to
achieve the vision for the site that Ramsey County and Arden Hills originally outlined when the project
oegan.

. Ultimately, in the context of advancing Ramsey County's vision of a community where all are valued and
thrive, the organization cannot continue spending its resources on a project in which no progress is
being made.

250 Courrhouse
15 West Kellogg tSlvd
Sa nt Paul, MN 55 102
Phone (651) 266 800C
wwrrv co ranlsey mn us
 . In emerging economic development projects throughout the community and when considering how to
allocate limited resources, Ramsey County seeks to work with development partners and cities that
share an inclusive vision for the future. And it is committed to making difficult reallocation decisions, if
necessary, to align with its vlsion and values.

. Ramsey County will be significantly reducing staff resources and project investments at Rice Creek
Commons for the time being as we await indications from Arden Hills that there is a shared willingness
to build a more inclusive vision for the community and a willingness to make significant progress on
soecific issues that further that vision.

. Ramsey County will be focusing its economic development efforts over the coming six months on
proiects such as the Riverfront Properties project where the City of Saint Paul is committed to advancing
a project and shared vision to build a community in which all are valued and thrive.

Iappreciate you allowing me the opportunity to lay out the points above as it ls only through openness and
continued work that we will be able to chart a productive and collaborative course for the future. I hope that
this moment in time is later seen as an opportunity that allowed all sides to refocus, reprioritize and re-cement a
commitment to a shared vision for Rice Creek Commons.

Sincerely,
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Ryan T. O'Connor
County Manager
Ramsey County
15 West Kellogg Bouleva rd
Saint Paul, MN 55102
651-256-8009
www.ra msevcountv. us