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HomeMy WebLinkAbout6.m. Metropolitan Council Livable Communities Act Subgrant #SG007-116 DEMONSTRATION ACCOUNT DEVELOPMENT C..A T PROGRAM GRANTEE: City of Rosemount GRANT NO. SG007 -116 PROJECT: Stonebridge Core Block East GRANT AMOUNT: $1,587,500.00 FUNDING CYCLE: Fall 2007 COUNCIL ACTION: December 12, 2007 EXPIRATION DATE: December 31, 2009 METROPOLITAN LIVABLE COMMUNITIES ACT GRANT AGREEMENT THIS GRANT AGREEMENT "Agreement is made and entered into by the Metropolitan Council "Council and the Municipality, County or Development Authority identified above as "Grantee." WHEREAS, Minnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livable Communities Act "LCA and the policies of the Council's Metropolitan Development Guide; and WHEREAS, Minnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan Livable Communities Fund a Livable Communities Demonstration Account and require the Council to use the funds in the account to make grants or loans to municipalities participating in the Local Housing Incentives Program under Minnesota Statutes section 473.254 or to Counties or Development Authorities to fund the initiatives specified in Minnesota Statutes section 473.25(b) in Participating Municipalities; and WHEREAS, the Grantee is a Municipality participating in the Local Housing Incentives Account program under Minnesota Statutes section 473.254, a County or a Development Authority; and WHEREAS, the Grantee seeks funding in connection with an application for Livable Communities Demonstration Account grant program funds submitted in response to the Council's notice of availability of grant funds for the "Funding Cycle" identified above and will use the grant funds made available under this Agreement to help fund the "Project" identified in the application; and WHEREAS, the Council awarded Livable Communities Demonstration Account grant program funds to the Grantee subject to the Council's eminent domain policy and any terms, conditions and clarifications stated in its Council Action, and with the understanding that the Project identified in the application will proceed to completion in a timely manner and all grant funds will be expended prior to the "Expiration Date" identified above. NOW THEREFORE, in reliance on the above statements and in consideration of the mutual promises and covenants contained in this Agreement, the Grantee and the Council agree as follows: Page 1 of 9 Pages DEMONSTRATION TIO C T DEv P.t' E I' R A N T PROGRAM I. DEFINITIONS 1.01 Definition of Terms. The terms defined in this paragraph have the meanings given them in this paragraph unless otherwise provided or indicated by the context. (a) Council Action. "Council Action" means the action or decision of the governing body of the Metropolitan Council, on the meeting date identified at Page 1 of this Agreement, by which the Grantee was awarded Livable Communities Demonstration Account funds. (b) County. "County" means Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties. (c) Development Authority. "Development Authority" means a statutory or home rule charter city, a housing and redevelopment authority, an economic development authority, or a port authority in the Metropolitan Area. (d) Metropolitan Area. "Metropolitan Area" means the seven county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. (e) Municipality. "Municipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254. (f) Participating Municipality. "Participating Municipality" means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account program and negotiated affordable and life -cycle housing goals for the Municipality pursuant to Minnesota Statutes section 473.254. (g) Project Unless clearly indicated otherwise by the context of a specific provision in this Agreement, "Project" means the development or redevelopment project identified in the application for Demonstration Account funds for which grant funds were requested. Grant funded activities typically are components of the Project. II. GRANT FUNDS 2.01 Total Grant Amount. The Council will grant to the Grantee the "Grant Amount" identified at Page 1 of this Agreement which shall be funds from the Livable Communities Demonstration Account of the Metropolitan Livable Communities Fund. Notwithstanding any other provision of this Agreement, the Grantee understands and agrees that any reduction or termination of Livable Communities Demonstration Account grant funds made available to the Council may result in a like reduction in the Grant Amount made available to the Grantee. 2.02 Authorized Use of Grant Funds. The Grant Amount made available to the Grantee under this Agreement shall be used only for the purposes and activities described in the application for Livable Communities Demonstration Account grant funds. A Project summary that describes eligible uses of the grant funds as approved by the Council is attached to and incorporated into this Agreement as Attachment A. Grant funds must be used to fund the initiatives specified in Minnesota Statutes Page 2 of 9 Pages r�71 DEMONSTRATION ACCOUNT DEVELOPMENT (;RA T PROGRAM A; i section 473.25(b), in a Participating Municipality. Grant funds must be used for costs directly associated with the specific proposed Project activities and shall not be used for "soft costs" such as: administrative overhead; travel expenses; legal fees; insurance; bonds; permits, licenses or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. Grant funds may not be used for costs of Project activities that occurred prior to the grant award. Grant funds also shall not be used by the Grantee or others to supplant or replace grant or loan funds obtained for the Project from other sources. The Council shall bear no responsibility for cost overruns which may be incurred by the Grantee or others in the implementation or performance of the Project activities. The Grantee agrees to comply with any "business subsidy" requirements of Minnesota Statutes sections 1163.993 to 116J.995 that apply to the Grantee's expenditures or uses of the grant funds. 2.03 Project Changes. The Grantee must promptly inform the Council in writing of any significant changes to the Project for which the grant funds were awarded, as well as any potential changes to the grant- funded activities described in Attachment A. Failure to inform the Council of any significant changes to the Project or significant changes to grant- funded components of the Project, and use of grant funds for ineligible or unauthorized purposes, will jeopardize the Grantee's eligibility for future LCA awards. Grant funds will not be disbursed prior to Council approval of significant changes to either the Project or grant- funded activities described in Attachment A. 2.04 Budget Variance. A variance of twenty percent (20 in the budget amounts for grant- funded activities identified in Attachment A shall be considered acceptable without Council approval, provided no budget amount for any individual grant- funded activity may be increased or decreased by more than twenty percent (20 from the budget amount identified in Attachment A. The Grantee must inform the Council of any budget variances. Budget variances for any individual grant- funded activity identified in Attachment A exceeding twenty percent (20 will require approval of the governing body of the Metropolitan Council. Notwithstanding the aggregate or net effect of any variances, the Council's obligation to provide grant funds under this Agreement shall not exceed the Grant Amount identified at Page 1 of this Agreement. 2.05 Eminent Domain Restrictions. On January 25, 2006 he Council adopted a policy that restricted the use of LCA grant funds on projects when eminent domain authority was used to acquire private property for "economic development" purposes in connection with the projects. The Council's policy defined the term "economic development" for LCA program purposes and covers the time period from January 25, 2006 to June 28, 2006. On June 28, 2006 the Council adopted a revised eminent domain policy that is consistent with the statutory definitions and restrictions contained in Minnesota Statutes chapter 117 as amended (effective May 20, 2006) during the 2006 legislative session. The revised policy applies to LCA grant awards and grant agreements made on or after June 28, 2006. The Council's January 25, 2006 and June 28, 2006 eminent domain policies are available online at: http: /www.metrocouncil.org/ services/ Iivcomm /EminentDomainPolicy.htm. (a) If a notice of petition was served between January 25, 2006 and May 20, 2006 in connection with the Grantee's Project (or any component of the Project) for which grant funds were awarded, the grant funds may not be used to fund or support the Project unless the Project: (1) would have been eligible under the Council's January 25, 2006 policy; or (2) qualifies for an exemption Page 3 of 9 Pages DEMONSTRATION ACT OE NT DEVELOPMEN'I GRAN P R O G R A M under Minnesota Statutes section 117.012, subdivision 3 or 2006 Minnesota Laws chapter 214, section 22, clauses (b) through (e). (b) If a notice of petition was served on or after May 20, 2006 in connection with the Grantee's Project (or any component of the Project) for which grant funds were awarded, the grant funds may not be used to fund or support the Project unless the Project qualifies for an exemption under Minnesota Statutes section 117.012, subdivision 3 or 2006 Minnesota Laws chapter 214, section 22, clauses (b) through (e). 2.06 Loss of Grant Funds. The Grantee agrees to remit to the Council in a prompt manner: any unspent grant funds, including any grant funds that are not expended prior to the Expiration Date identified at Page 1 of this Agreement; any grant funds that are not used for the authorized purposes; and any interest earnings described in Paragraph 2.08 that are not used for the purposes of implementing the Project activities described in Attachment A. For the purposes of this Agreement, grant funds are "expended" prior to the Expiration Date if the Grantee pays or is obligated to pay for expenses of eligible Project activities that occurred prior to the Expiration Date and the eligible expenses were incurred prior to the Expiration Date. Unspent or unused grant funds and other funds remitted to the Council shall revert to the Council's Livable Communities Demonstration Account for distribution through application processes in future Funding Cycles. 2.07 Payment Request Forms and Disbursements. The Council will disburse grant funds in response to written payment requests submitted by the Grantee and reviewed and approved by the Council's authorized agent. Written payment requests shall be made using payment request forms, the form and content of which will be determined by the Council. Payment request and other reporting forms are available online at: http: /www.metrocouncil.org/ services /Iivcomm /LCAresources.htm. The Council will disburse grant funds on a reimbursement basis or a "cost incurred" basis. The Grantee must provide with its written payment requests documentation that shows grant- funded Project activities actually have been completed. Disbursements prior to the performance of a grant funded Project activity will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Grantee. Subject to verification of each payment request form (and its documentation) and approval for consistency with this Agreement, the Council will disburse a requested amount to the Grantee within two (2) weeks after receipt of a properly completed payment request form. 2.08 Interest Earnings. If the Grantee earns any interest or other income from the grant funds received from the Council under this Agreement, the Grantee will use the interest earnings or income only for the purposes of implementing the Project activities described in Attachment A. 2.09 Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the Project site nor imposes any obligation on the Council to participate in any pollution cleanup of the Project site if such cleanup is undertaken or required. III. ACCOUNTING, AUDIT AND REPORT REQUIREMENTS 3.01 Accounting and Records. The Grantee agrees to establish and maintain accurate and complete accounts and records relating to the receipt and expenditure of all grant funds received Page 4 of 9 Pages DEMONSTRATiON ACCOUNT DEVELOPMENT ENT GGl T PROGRAM GRA from the Council. Notwithstanding the expiration and termination provisions of Paragraphs 4.01 and 4.02, such accounts and records shall be kept and maintained by the Grantee for a period of six (6) years following the completion of the Project activities described in Attachment A or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Accounting methods shall be in accordance with generally accepted accounting principles. 3.02 Audits. The above accounts and records of the Grantee shall be audited in the same manner as all other accounts and records of the Grantee are audited and may be audited or inspected on the Grantee's premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Grantee, for a period of six (6) years following the completion of the Project activities or six (6) years following the expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes section 16C.05, subdivision 5, the books, records, documents and accounting procedures and practices of the Grantee that are relevant to this Agreement are subject to examination by the Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of six (6) years. 3.03 Report Requirements. The Grantee will report to the Council on the status of the Project activities described in Attachment A and the expenditures of the grant funds. Submission of properly completed payment request forms (with proper documentation) required under Paragraph 2.07 will constitute periodic status reports. The Grantee also must complete and submit to the Council a grant activity closeout report. The closeout report form must be submitted with the final payment request form or within 120 days after the expiration or termination of this Agreement, whichever occurs earlier. Within 120 days after the Expiration Date, the Grantee must complete and submit to the Council a certification of expenditures of funds form signed by the Grantee's chief financial officer or finance director. The form and content of the closeout report and the certification form will be determined by the Council. These reporting requirements shall survive the expiration or termination of this Agreement. 3.04 Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be carried out, if such environmental assessment or review is appropriate for the scope and nature of the Project activities funded by this grant, and that any environmental issues have been or will be adequately addressed. IV. AGREEMENT TERM 4.01 Term. This Agreement is effective upon execution of the Agreement by the Council. Unless terminated pursuant to Paragraph 4.02, this Agreement expires on the "Expiration Date" identified at Page 1 of this Agreement and ALL GRANT FUNDS NOT EXPENDED BY THE GRANTEE PRIOR TO THE EXPIRATION DATE SHALL REVERT TO THE COUNCIL. 4.02 Termination. This Agreement may be terminated by the Council for cause at any time upon fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of this Agreement and any amendments of this Agreement. If this Agreement is terminated prior to the Expiration Date, the Grantee shall receive payment on a pro rata basis for eligible Project activities described in Attachment A that have been completed prior to the termination. Termination of this Agreement does not alter the Council's authority to recover grant funds on the basis of a later audit Page 5 of 9 Pages DEMONSTRATION :T nEvE1,0PNiEvi R 1" l l (_lG l 1 or other review, and does not alter the Grantee's obligation to return any grant funds due to the Council as a result of later audits or corrections. If the Council determines the Grantee has failed to comply with the terms and conditions of this Agreement and the applicable provisions of the Metropolitan Livable Communities Act, the Council may take any action to protect the Council's interests and may refuse to disburse additional grant funds and may require the Grantee to return all or part of the grant funds already disbursed. 4.03 Amendments and Extensions. The Council and the Grantee may amend this Agreement by mutual agreement. Amendments or extensions of this Agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. The Expiration Date may be extended beyond the original Expiration Date identified at Page 1 of this Agreement if, AT LEAST THIRTY (30) CALENDAR DAYS PRIOR TO THE EXPIRATION DATE, the Grantee's authorized representative submits a written extension request that: (a) states the reason for the extension request; (b) identifies a new completion date, which shall not exceed one year beyond the original Expiration Date; and (c) describes in reasonable detail any proposed changes to the Project activities and budget. THE EXPIRATION DATE MAY BE EXTENDED ONLY ONCE. THE PERIOD OF THE ONE -TIME EXTENSION SHALL NOT EXCEED ONE (1) YEAR BEYOND THE ORIGINAL EXPIRATION DATE IDENTIFIED AT PAGE 1 OF THIS AGREEMENT. Any additional extension requests from the Grantee must be approved by the governing body of the Metropolitan Council. V. GENERAL PROVISIONS 5.01 Equal Opportunity. The Grantee agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability, sexual orientation or age and will take affirmative action to insure applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.02 Conflict of Interest. The members, officers and employees of the Grantee shall comply with all applicable state statutory and regulatory conflict of interest laws and provisions. 5.03 Liability. Subject to the limitations provided in Minnesota Statutes chapter 466, to the fullest extent permitted by law, the Grantee shall defend, indemnify and hold harmless the Council and its members, employees and agents from and against all claims, damages, losses and expenses, including but not limited to attorneys' fees, arising out of or resulting from the conduct or implementation of the Project activities funded by this grant, except to the extent the claims, damages, losses and expenses arise from the Council's own negligence. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) as amended, United States Code, title 42, sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code, title 42, sections 6901 et seq. This obligation shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which otherwise would exist between the Council and the Grantee. The provisions of this paragraph shall Page 6 of 9 Pages DEMONSTRATION CC U DEVELOPMENT ENT t.GR T PROGRAM survive the expiration or termination of this Agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 466, or other applicable state or federal law. 5.04 Acknowledgments. The Grantee shall acknowledge the financial assistance provided by the Council in promotional materials, press releases, reports and publications relating to the Project activities described in Attachment A that are funded in whole or in part with the grant funds. The acknowledgment should contain the following language: Financing for this project was provided by the Metropolitan Council Metropolitan Livable Communities Fund. Until the Project activities funded by this Agreement are completed, the Grantee shall ensure the above acknowledgment language, or alternative language approved by the Council's authorized agent, is included on all signs located at Project or construction sites that identify Project funding partners or entities providing financial support for the Project. 5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state or federal licenses, permits, bonds, authorizations or approvals necessary to perform or complete the Project activities described in Attachment A. 5.06 Subgrantees, Contractors and Subcontractors. The Grantee shall include in any subgrant, contract or subcontract for Project activities appropriate provisions to ensure subgrantee, contractor and subcontractor compliance with all applicable state and federal laws and this Agreement. Along with such provisions, the Grantee shall require that contractors and subcontractors performing work covered by this grant comply with all applicable state and federal Occupational Safety and Health Act regulations. 5.07 Stormwater Discharge and Water Management Plan Requirements. If any grant funds are used for urban site redevelopment, the Grantee shall at such redevelopment site meet or require to be met all applicable requirements of: (a) Federal and state laws relating to stormwater discharges including, without limitation, any applicable requirements of Code of Federal Regulations, title 40, parts 122 and 123; and (b) The Council's 2030 Water Resources Management Policy Plan and the local water management plan for the jurisdiction within which the redevelopment site is located. 5.08 Authorized Agent. Payment request forms, written reports and correspondence submitted to the Council pursuant to this Agreement shall be directed to: Metropolitan Council Attn: LCA Grants Administration 390 Robert Street North Saint Paul, Minnesota 55101 -1805 Page 7 of 9 Pages DEMONSTI4ATION ACCOUN DEVELOPMENT t: NT (RA P OG A: i 5.09 Warranty of Legal Capacity. The individuals signing this Agreement on behalf of the Grantee and on behalf of the Council represent and warrant on the Grantee's and the Council's behalf respectively that the individuals are duly authorized to execute this Agreement on the Grantee's and the Council's behalf respectively and that this Agreement constitutes the Grantee's and the Council's valid, binding and enforceable agreements. IN WITNESS WHEREOF, the Grantee and the Council have caused this Agreement to be executed by their duly authorized representatives. This Agreement is effective on the date of final execution by the Council. GRANTEE METROPOLITAN COUNCIL By By Guy Peterson, Director Title Community Development Division Date Date By Title Date S0007116DEMO 03/08 Page 8 of 9 Pages g lr DEMONSTRATiON ACCOUNT l E E.I. (.I P I E l' (;RANT PROCRANI ATTACHMENT A APPLICATION FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDS This attachment comprises this page and the succeeding page(s) which contain(s) a summary of the Project identified in the application for Livable Communities Demonstration Account grant funds submitted in response to the Council's notice of availability of Demonstration Account grant funds for the Funding Cycle identified at Page 1 of this Agreement. The summary reflects the proposed Project for which the Grantee was awarded grant funds by the Council Action, and may reflect changes in Project funding sources, changes in funding amounts, or minor changes in the proposed Project that occurred subsequent to application submission. The application is incorporated into this Agreement by reference and is made a part of this Agreement as follows. If the application or any provision of the application conflicts with or is inconsistent with the Council Action, other provisions of this Agreement, or the Project summary contained in this Attachment A, the terms, descriptions and dollar amounts reflected in the Council Action or contained in this Agreement and the Project summary shall prevail. For the purposes of resolving conflicts or inconsistencies, the order of precedence is: (1) the Council Action; (2) this Agreement; (3) the Project summary; and (4) the grant application. Page 9 of 9 Pages ror Applicant: Rosemount Recommended Funding Amount: Sl,587,500 Project Nome: Stonebridge Core Block East Site bounded by Highway 3, Burnley Avenue. 146th Street and Lower 147tz, Street Project Description: The City of Rosemount has partnered with Stoncbrid�re Development Acquisition LLC to create a mixed -use project at the center of Rosemotmt"s downtown. The project at a site designated as "Core Block East" includes 103 apartment units above street level, of which 20 percent will be affordable. On the first level will be 12,000 square feet of commercial space for either retail or office users. The building reaches three stories along. TH 3/South Robert Trail and rises to four stories on the north and east sides, away from TH 3. Residents oldie development will be served by underground parking. and surface and on- street parking will be added for visitors, employees. and commercial patrons. The project will provide a more pedestrian friendly circulation system through the use of sidewalks, appropriate lighting, and modification of the curbline'ofexisting local roads. The land use and building massing, are consistent with the Development Framework forpowntown Rosemount that was created through a citizen driven process and adopted by the Rosemount Port Authority and the City Council. The building's design and architecture are consistent with design guidelines developed by the citizen task force on dow nhOw rt. The concept indicates installation of rain gardens and Low impact Development strategies that will assist in infiltration and water quality. Alternative stormwater solutions will be employed in recognition of the fact that Rosernount's historic downtown is compact and ponding space limited. with a regional active storm water management treatment system to be constructed immediately upstream of Erickson Pond. Other open spaces, both private and public. and tiie site's formal landscaping will improve the property compared to the existing condition. The City is working with the developer to include more efficient mechanical systems and potential reuse of stormwater. The project as a \•hole, given its more compact footprint, is consistent with the goals of greening by using less property for a truly mixed use project. Overall, the development ofa compact. mixed use, multi story' project with minimal setbacks. street orientation and sustainable development concepts is consistent with the goals of the City Council, community and adopted Framework Advisory Committee Comments on Demonstration, Innovation, Catalyst Elements of this Project: The project demonstrates a good mix of uses and appropriate density for this downtown site, helping to transition from an agricultural to a more urban area. The land acquisition is a key catalyst to the city's ongoing efforts to redevelop its downtown. and all of the requested elements are integral to catalyzing the development. Funding Requested /Funding Recommended: Total Requested: SI,587,500 Total Recommended: 51,587,500 Amount Amount Use of Funds Requested Recommended 5325.000 5325.000 Land acquisition two parcels S400.000 S400,000 Street realisTnment and reconstruction of 14& Street and Burma realign curbing and install new curb cuts 525.000 525.000 Installation of sidewalks on south side of 146th Street and west of Burma Avenue 5250.000 S250,000 Street lighting, benches, permanent bike 'racks 5500,000 5500.000 Regional pond expansion S87.500 587.500 Construct underground stormwater retention/infiltration system t /rJ Previous LCDA Grants Received For This Or Related Project: None. Development Timeline: Task Start. Date End Date Land acquisition 2 parcels January 2008 February 2008 Street realignment and reconstruction of 146th Street and Burma realign May 2008 June 2008 curbing and install new curb cuts Installation of sidewalks on south side of 1461, Street and west of Burma September September Avenue 2008 2008 Street lighting, benches. permanent bike racks September September 2008 2008 Regional pond expansion May 2008 June 2008 Construct underground stonnwater retention /infiltration system June 2008 June 2008 l tlt