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HomeMy WebLinkAbout6.m. Submittal of the former Genz Ryan site for the Minnesota Department of Employment and Economic Development Redevelopment Grant4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Meeting: January 19, 2010 AGENDA ITEM: Submittal of the former Genz Ryan site for the Minnesota Department of AGENDA SECTION: Employment and Economic Development Consent Redevelopment Grant PREPARED BY: Eric Zweber; Senior Planner AGENDA NO. ATTACHMENTS: Resolution; DEED Redevelopment Grant I Application Introduction APPROVED BY: RECOMMENDED ACTION: Motion to adopt the Resolution authorizing the submittal of the former Genz Ryan site for the Minnesota Department of Employment and Economic Development Redevelopment Grant. ISSUE The Minnesota Department of Employment and Economic Development (DEED) has $1.7 million available for redevelopment grants to redevelop old industrial, residential or commercial property into developable sites using public assistance. The grant application is due February 1 and requires a resolution authorizing the submittal of the grant application by the City Council. The grant application will be similar to the Metropolitan Council Livable Communities Demonstration Account grant that the City submitted in September of 2009 which asked for funds to demolish the three existing buildings and to construct a new sanitary sewer line on -site. The DEED grant allows funds to be used for demolition, interior abatement, and infrastructure improvements, but cannot be used for construction, environmental remediation, streetscape or other soft costs. The grant requires a 50% local match and only City redevelopment costs that have occurred during the last 12 months are eligible as the local match. Staff believes the acquisition of the excess right -of -way from Minnesota Department of Transportation could count toward the local match because it occurred within the last 12 months; however the funds used to purchase the site originally cannot. Staff will prepare the grant application to request funds for demolition of the buildings, perform the hazardous waste abatement before the buildings are demolished, and replace the public sewer line on the west side of the property. Staff will ensure that the grant request does not exceed the local match already expended by acquiring the excess right of way. RECOMMENDATION Staff recommends that the City Council adopt a resolution authorizing the submittal of the former Genz Ryan site for the DEED redevelopment grant. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 2010 - A RESOLUTION AUTHORIZING THE SUBMITTAL OF THE FORMER GENZ RYAN SITE FOR THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT REDEVELOPMENT GRANT WHEREAS, the City Council of the City of Rosemount acts as the legal sponsor for project contained in the Redevelopment Grant Program to be submitted on February 1, 2010 and that Dwight Johnson, City Administrator, is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Rosemount; and WHEREAS, the City of Rosemount has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration; and WHEREAS, the sources and amounts of the local match identified in the application are committed to the project identified; and WHEREAS, that City of Rosemount has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice; and WHEREAS, that upon approval of its application by the state, the City of Rosemount may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the City of Rosemount certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE, BE IT RESOLVED, that Dwight Johnson, City Administrator, is hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. ADOPTED this 196' day of January, 2010, by the City Council of the City of Rosemount. William H. Droste, Mayor ATTEST: Amy Domeier, City Clerk Motion by: Voted in favor: Voted against: Member absent: Second by: Resolution 2010- FY 10 MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT First National Bank Building 332 Minnesota Street, Suite E200 St. Paul, Minnesota 55101 Brownfields & Redevelopment Unit 651- 259 -7449 1- 800 - 657 -3858 REDEVELOPMENT GRANT APPLICATION * * *YOUMUST READ THE FOLLOWING NARRATIVE TO FULLY UNDERSTAND THE APPLICATION PROCESS" * INTRODUCTION PURPOSE/BACKGROUND: Because there is often no incentive for the private sector to redevelop old industrial, residential or commercial property when undeveloped parcels of land are available, public sector investment is required to induce private development of these difficult sites. Therefore, the Redevelopment Grant Program was established by the 1998 legislature to assist with complex and costly redevelopment projects that might not occur without public financial assistance. Pursuant to Minnesota Statutes §§ 116J.571 - 116J.575, the Minnesota Department of Employment and Economic Development (DEED) has the authority to award grants to assist development authorities with eligible redevelopment costs as defined below. The Redevelopment Grant Program applies only to sites where there was a past use and the need to "recycle" the land for a more productive use exists. FUNDING AVAILABILITY: Funding available for grants is approximately $1.7 million. The next grant round will be in February 2010. If enough eligible applications are received, 50 percent of the grant money will be awarded to projects outside of the seven county metropolitan area and 50 percent will be awarded to projects within the seven county metropolitan area. Funds will be awarded to projects which display readiness and the ability to draw funds quickly. DEADLINES/REQUIREMENTS: The Redevelopment Grant Program operates on a semi - annual grant cycle. The Redevelopment Grant application deadline is February 1, 2010 for the coming year. Completed applications and supporting documentation (3 copies) must be received by the Department of Employment and Economic Development by 4:00 p.m. on the due date to be considered for funding. NOTE: An applicant may apply for more than one project, but an individual (separate) application must be completed for each site. Please fill out the entire application. All applications must be complete upon submission in order to qualify for a grant. ELIGIBLE SITES: Redevelopment projects where there was previous development and the need to recycle the land for a more productive use exists. Sites are only eligible where there is a change from one developed use to another. ELIGIBLE APPLICANTS: Eligible applicants for this program are statutory or home rule charter cities, economic development authorities, housing and redevelopment authorities, counties, or port authorities. ii FY 10 ELIGIBLE PROGRAM COSTS: The Redevelopment Grant Program can pay up to 50 percent of the redevelopment costs for a qualifying site. "Redevelopment costs" or "costs" means the cost of land acquisition, stabilizing unstable soils when infill is required, demolition, infrastructure improvement, ponding or other environmental infrastructure and costs necessary for adaptive re -use of buildings including remedial activities. Costs incurred before the grant award date are not eligible for payment. Some examples of eligible and ineligible costs are below. Eligible Costs Acquisition Demolition Interior abatement Infrastructure Improvements (i.e., water and sewer, standard sidewalks, lights, roads, etc) Ponding Environmental Infrastructure Ineligible Costs Construction Contingencies Building Rehabilitation Environmental Remediation (soil and ground water) Administration Streetscape Soft costs ELIGIBLE BONDING COSTS: All current funds are allocated from State Bonds. State Bond Funds can only be used for eligible costs on publicly owned sites and the subsequent development must be publicly owned and serve a public purpose. Public infrastructure costs for private development can be paid with bond proceeds. Eligible costs on private land can be used as local matching costs. LOCAL MATCH REQUIREMENT: It is required that the applicant pay for at least one -half of the redevelopment costs as a local match to obtain a redevelopment grant. The match can come from any money available to the applicant. Redevelopment costs incurred up to 12 months prior to the application due date can only be included as part of the local match. These costs must meet the redevelopment costs definition (see "Eligible Program Costs" above) and must be proven to be associated with and necessary for the redevelopment. These prior costs should be identified in the Cost Analysis budget section of the application. The applicant must complete and approve the attached resolution authorizing this application and committing the local match from the applicant (see Page 13). REQUIRED APPRAISALS OR ASSESSMENTS: Land appraisals of the current (as -is) and expected (pre- construction) value of the site are required so that DEED can determine the fair market value and any business subsidy. Both appraisals must be done by an independent appraiser using accepted appraisal methodology. In lieu of an appraisal, the applicant may use the current and projected assessed values as determined by the local assessor. Values cannot be determined in any other manner. The value of the property after the proposed development is completed is also requested. This estimate is generally based on similar development projects in the city. iii FY 10 AWARDING GRANTS: DEED will award grants to projects that provide the highest return in public benefits for the public costs incurred and meet all of the statutory requirements. In order to evaluate the applications for public benefits with respect to the costs incurred, the law specifies priorities that DEED must consider. To fulfill this requirement of reviewing applications in an objective and fair manner, the following criteria have been assigned maximum point values in order to systematically award grants. All assigned scores will be relative to scores awarded to other applications. Please note, an application must receive a minimum of 50 points in order to be eligible for funding. 1. The need for redevelopment in conjunction with contamination remediation needs. Maximum = 15 points. 2. The redevelopment project meets current tax increment financing requirements for a redevelopment district and tax increments will contribute to the project. Maximum = 25 points. 3. The redevelopment potential within the municipality. Maximum = 90 points. 4. The proximity to public transit if located in the metropolitan area. Maximum = 5 points. 5. Multi jurisdictional projects that take into account the need for affordable housing, transportation, and environmental impact. Maximum = 15 points (5 points each). iv