Pact between Ramsey County, Arden Hills, over former munitions site stands

A judge has refused Ramsey County's request to dissolve a power-sharing agreement with the city of Arden Hills governing the future of the old Twin Cities Army Ammunition Plant site, saying that the "remedy for their disagreements lie[s] in the political process."

It's a victory for Arden Hills, which has fought to maintain the joint powers agreement that gives city leaders substantial control over how the 427-acre county-owned site is developed.

The agreement signed in 2012 is valid through Dec. 31, 2038, unless both parties agree to terminate it early, according to a decision issued Thursday by Hennepin County District Judge Edward Wahl, who heard the case to avoid a conflict.

Arden Hills said in a statement that it was pleased with the judge's decision.

"The city welcomes Ramsey County back to the table," the statement reads. The city "will continue to strive for a fair and transparent process, and a high-quality sustainable project for its current and future residents and businesses."

The two sides have battled for years over density and the amount of affordable housing to be built on the site renamed Rice Creek Commons, the largest shovel-ready tract of land in the county and equivalent in size to downtown St. Paul.

Arden Hills, a city of 10,000 and where the property is located, wants no more than 1,460 homes with 10% of them affordable. The county wants as many as 2,500 homes with at least 20% of them affordable.

After years of negotiations ended in gridlock, Ramsey County leaders sued in 2019 asking the court to invalidate the joint powers agreement. The county argued, in part, that the city had failed to negotiate in good faith.

Arden Hills, which fought to keep the agreement intact, countersued, arguing county leaders also had breached their duties and were intentionally skipping meetings. The city asked the court to compel county leaders' attendance.

"The court finds that it cannot grant any of the relief sought by either party," Wahl wrote in a 36-page ruling. "The court cannot tell these governmental entities that their negotiations were unfair or out of bounds. The court cannot make the judgments about the development that the parties must make. The court cannot intervene in that inherently political process."

Wahl also said ending the agreement early would come at a cost to the city.

"The court cannot invalidate the [joint powers agreement]. To do so would amount to a forfeiture by the city of its contributions to the parties' partnership — particularly the money, time and effort," Wahl wrote. "Terminating the [agreement] prematurely would leave the city without the means to recover its investments."

Ramsey County Board Chairwoman Toni Carter said in a statement that the county will explore all options to continue the project. She noted that the order affirmed the county's ability to work independently with the chosen developer, Minneapolis-based Alatus, to advance its vision for Rice Creek Commons.

"Ramsey County remains committed to its vision of Rice Creek Commons as a transformative, inclusive development for its residents, workers and businesses," Carter said. She said the county's $40 million investment in the site positions it "to provide much-needed affordable housing, stimulate economic development and create jobs for our region."

The Army originally owned the site and used it for a munitions factory from World War II through 1976. The site was added to state and federal Superfund lists in the 1980s after decades of pollution tied to the manufacturing was discovered.

Ramsey County bought the site from the federal government in 2012 with Arden Hills' blessing. Soil and surface water on the site have been delisted from those Superfund lists, and property is ready for development.

Shannon Prather • 651-925-5037