HomeMy WebLinkAbout5.c. Hinz Recycling Grant Agreement � � �� f'O 1�1O?E !ilU
`/+�� U ?t375 14';TI1 :;T W.
,r«�S�j���j�� F�OSEMO��N T. MINtdESt�T'A !i506fl
lJ G !/�, s 12- n23-441 i
TO: MAYOR, CITY COUNCIL, ADMINISTRATOR �TElYI #
� �
FROM: TRACIE L. PECFIONICR, E.D. SPECIALIST
DATE: FEBRUARY 16, 1990
SUBJ: HINZ MET COUNCIL RECYCLING GRANT
As presented to the City Council at their meeting on the evening
of Tuesday, February 6, 1990, Donald and Michael Hinz, acting as
the general partnership of Construction Recovery Systems ("CRS") ,
have requested City spansorship of a recycling grant application
to the Metropolitan Council (see attached grant application) . The
purpose of the grant is to subsidize the acquisition of equipment
necessary for the operation of a construction recycling facility.
As sponsor, the City would act as the actual grantee of the program
and assume ownership of the equipment for a minimum three year
period. The grant program covers 50� of a maximum request of
$300, 000. The local sponspr is required to match the grant from
the Metropolitan Council.
The City has no authority to loan the Hinzes funds for such a
project, however, the City and the Hinzes could enter into an
agreement whereby the Hinzes would provide the required funding and
the City would act as the local sponsor.
Attached is a "Construction Recycling Facility Agreement". between
. the Hinzes and the City of Rasemount. The agreement provides that
the City of Rasemount will sponsor said grant application. If the
grant is approved by the Metropolitan Council, CRS and the City
shall purchase the equipment listed on Table I of the grant
application. Legally the City shall own the equipment. Beginning
. with the equipment purchase, the City shall lease the equipment to
CRS for a three year term at the rate of $1. 00 per year. At the
end of the lease term the City shall convey title to CRS for $1.00.
At this time staff requests that the City Council enter into the
"Construction Recovery Facility Agreement" . In addition, staff
recommends a motion to apprave the recycling grant applicatian and
forward it to the Metropolitan Council.
' The Hinzes and staff will be present at Tuesday's meeting to
�+ respond to any questions and comments you may have. Thank you for
your consideration.
, -
CONSTRUCTION R�COVERY FACILITY AGREEMENT
AGREEMENT made this day of , 19 , by
and between the CITY OF ROSEMOUNT, a Minnesota municipal
corporation ("City") , and CONSTRUCTION RECOVERY SYSTEMS, a
Minnesota general partnership ("CRS") .
1. Background. CRS, a partnership formed by Michael. Hinz of
Gopher Disposal and Donald Hinz of Eagle Sanitation, is a proposed
construction recycling facility to be located within the city of
Rosemount. CRS is seeking a capital assistance grant from the
Metropolitan Council to create said construction recycling
� facility. CRS has requested that the City be the project sponsar
in accordance with the Metropolitan Landfill Abatement Fund Capital
Assistance Grant program guidelines.
2. Grant Application. CRS and the City shall apply for a
qrant from the Metropolitan Council substantially in the form
attached hereto as Exhibit "A" . The City shall be the project
sponsor for the grant.
3. Purchase of Equipment. If the grant is approved, CRS and
the City shall purchase the equipment listed on Table 1 of the
grant application ("equipment") . To the extent that the grant does
not cover the cost of acquisition of all the equipment, CRS sha11
pay the cost. The City shall be the owner of the equipment.
4. Lease. Commencing with the purchase of the equipment, the
City shall lease the equipment to CRS for a three (3) year term.
CRS shall lease the equipment "AS IS" and without any express or
1
In the event of material default by CRS as to any of its
obliqations hereunder, the City may, at its option, rescind the
lease and reclaim the equipment, and thereafter CRS shall not have
the right to purchase the equipment. CRS, however, shall be given
at least thirty (3U) days advance written notice during which
period CRS may cure the default.
5. Purchase. At the end of the lease term, the City shall
convey title to CRS for $1. 00.
6. Hold Harmless. CRS shall hold the City and its officers,
employees, and agents harmless from claims made for damages
sustained or costs incurred resulting from the City entering into
this Agreement and leasing the equipment to CRS. CRS shall
indemnify the City and its officers, emplayees, and agents for a11
costs, damages, ar expenses which the City may pay or incur in
consequence of such claims, including attorney's fees.
7. Continqenay. Before proceeding with construction of the
Construction Recovery Systems Facility, CRS must obtain all
necessary land use approvals and the like from the City and other
permitting agencies.
8. Termination. If the grant contemplated by this Agreement
is not received on or before June 1, 1990, this Agreement shall be
void.
3
.
.�- K .
9. Notioes. Required notices to CRS shall be in writing,
and shall be either hand delivered to CRS, its employees or agents,
or mailed to CRS by registered mail at the following address: P.O.
Box 128, Newport, Minnesota 55055. Notices to the City shall be
in writing and shall be either hand delivered to the, City
Administrator or mailed to the City by registered mail in care of
the City Administrator at the fallowing address: 2875 - 145th
Street West, P.O. Box 510, Rosemount, Minnesota 55068.
4
�._.__.._ _ _ . __ ___ _ . _
. _._