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HomeMy WebLinkAboutContract 1761Grant No. SG2003-131 METROPOLITAN LIVABLE COMMUNITIES ACT TAX BASE REVITALIZATION ACCOUNT GRANT AGREEMENT THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Council") and the City of Columbia Heights ("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 and the policies of the Metropolitan Development Guide adopted by the Council; and WHEREAS, Minnesota Statutes sections 473.251 and 473.252 establish within the Metropolitan Livable Communities Fund a Tax Base Revitalization Account and require the Council to use the funds in the account to make grants to municipalities or development authorities for the cleanup of polluted land in the seven-county metropolitan area; and WHEREAS, the Grantee is a "municipality" as defined in Minnesota Statutes section 473.252, subdivision 1 or a "development authority" as defined in Minnesota Statutes section 473.252, subdivision la and submitted an application for Tax Base Revitalization Account funds in response to the Council's notice of availability of grant funds for the Fall 2003 grant cycle; and WHEREAS, at its December 17, 2003 regular meeting, the Council awarded Tax Base Revitalization Account grant funds to certain municipalities or development authorities which submitted grant applications to the Council during the Fall 2003 grant cycle, including the Grantee. NOW THEREFORE, in consideration of the mutual promises and covenants contained in this agreement, the Grantee and the Council agree as follows: I. DEFINITIONS 1.01 Definition of Terms. For the purposes of this agreement, the terms defined in this paragraph have the meanings given them in this paragraph unless otherwise provided or indicated by the context. (a) "Cleanup Costs" or "Costs" mean: (1) for hazardous waste contamination, the cost of implementing a Response Action Plan approved by the Minnesota Pollution Control Agency under Minnesota Statutes section 115B. 175, subdivision 3; or (2) for asbestos contamination, the cost of implementing an Asbestos Abatement Plan for the Site which is carried out by contractors or subcontractors licensed or certified by the Commissioner of Health under the Minnesota Asbestos Abatement Act, Minnesota Statutes sections 326.70 to 326.81, in accordance with rules prescribed by the Page 1 of 7 Pages Commissioner of Health related to asbestos abatement and asbestos management activity, and meeting the federal Asbestos Hazard Emergency Response Act ("AHERA") standards for asbestos; or (3) for petroleum contamination, the cost of implementing a Corrective Action Plan for the Site approved by the Minnesota Pollution Control Agency under Minnesota Statutes, chapter 115C. (b) "Development Authority" means a statutory or home rule charter city, housing and redevelopment authority, economic development authority, or a port authority in the Metropolitan Area. (c) "Metropolitan Area" means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. (d) "Municipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Program under Minnesota Statutes section 473.254, or a county in the Metropolitan Area. (e) "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. (f) "Project Costs" means all costs as defined in Minnesota Statutes section 116J.552, subdivision 7. (g) "Site" means the land proposed by the Grantee to be cleaned up and located both within the Metropolitan Area and within the jurisdiction of the Grantee. II. GRANT FUNDS 2.01 Total Grant Amount. The Council will grant to the Grantee a total sum of $231,731.00 which shall be funds from the Tax Base Revitalization 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 Tax Base Revitalization Account grant funds made available to the Council may result in a like reduction to the Grantee. 2.02 Authorized Use of Grant Funds. The total grant amount made available to the Grantee under this agreement shall be used only for Cleanup Costs for the cleanup of polluted land in the Metropolitan Area as described in the Grantee's application for Tax Base Revitalization Account grant funds (the Site). A summary of the project described in the Grantee's application is attached to and incorporated into this agreement as Attachment A. Grant funds must be used for cleanup of the Site which must be located in a Participating Municipality. If consistent with its application, the Grantee may use the grant funds to provide a portion of the local match requirement for Project Costs that qualify for a grant under Minnesota Statutes sections 116J.551 to 116J.557. 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 described in Attachment A. The Grantee agrees to remit to the Council in a prompt manner: any unspent grant funds; any grant funds which Page 2 of 7 Pages are not used for the authorized purposes specified in this paragraph; and any interest earnings described in paragraph 2.04 which are not used for the purposes of implementing the project activities described in Attachment A. The Grantee agrees to comply with any "business subsidy" requirements of Minnesota Statutes sections 116J.993 to 116J.995 that apply to the Grantee's expenditures or uses of the grant funds. 2.03 Disbursement Schedule. The Council will disburse the grant funds to the Grantee in accordance with the grant fund disbursement schedule contained in Attachment B, which is incorporated into and made a part of this agreement. The Council will make disbursements only upon receipt of a written disbursement request from the Grantee's authorized agent or representative. The written disbursement request must include a statement indicating the Grantee's expectation to complete the cleanup and redevelopment consistent with the Council's approved project description or, if applicable, any amended project description approved by the Council's authorized agent. 2.04 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. 2.05 Effect of Grant. Issuance of this grant neither implies any Council responsibility for the contamination at the Site nor imposes any obligation on the Council to participate in the cleanup of the Site contamination or in the Cleanup Costs beyond the amount of this grant. 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 from the Council. Notwithstanding the expiration and termination provisions of paragraphs 5.01 and 5.02, 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. For all expenditures of grant funds received pursuant to this agreement, the Grantee will keep proper financial records including invoices, contracts, receipts, vouchers and other appropriate documents sufficient to evidence in proper detail the nature and propriety of the expenditure. 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 described in Attachment A or six (6) years following the expenditure of the grant funds, whichever occurs earlier. 3.03 Report Requirements. The Grantee will provide to the Council one or more written reports which report on the status of the project activities described in Attachment A and the expenditures of the grant funds. The reporting schedule and the content of the written report(s) are identified in Attachment C, which is incorporated into and made a part of this agreement. The Grantee must report to the Council any significant changes in redevelopment plans that occur either prior to the termination of this grant agreement or during the reporting period identified in Attachment C. Page 3 of 7 Pages 3.04 Certification of Completion. Upon completion of Site cleanup, the Grantee will provide to the Council: (a) for hazardous waste contamination, a copy of a Certificate of Completion for the Site issued by the Minnesota Pollution Control Agency pursuant to Minnesota Statutes, section 115B. 175; or (b) for asbestos contamination, a copy of a statement from the Grantee's licensed Asbestos Abatement Contractor that the Asbestos Abatement Plan for the Site has been completed in accordance with the roles of the Minnesota Department of Health; or (c) for petroleum contamination, a copy of a Site Closure Letter issued by the Minnesota Pollution Control Agency pursuant to Minnesota Statutes chapter 115C. IV. RECOVERY AND REPAYMENT 4.01 Recovery of Funds. If the Grantee recovers funds pursuant to an action under Minnesota Statutes section 115B.04, or other law, to recover the reasonable and necessary Project Costs incurred to cleanup the Site, the Grantee shall repay to the Council that portion of the grant as provided in paragraph 4.04. 4.02 Assignment of Rights. Upon request of the Council, the Grantee shall assign its right to recover the funds described in paragraph 4.01 to the Council, shall prepare and submit a certification of the Project Costs incurred, and shall cooperate in any cost recovery action brought by the Council. 4.03 Expenses of Recovery. The reasonable litigation expenses or other costs of legal or technical assistance incurred by the Grantee, the Council, or both, may be deducted from recovery obtained in accordance with paragraphs 4.01 or 4.02 and reimbursed to the entity incurring such costs before proceeds of the recovery are distributed in accordance with paragraph 4.04. 4.04 Reimbursement. Subject to the deduction provided in paragraph 4.03, amounts recovered either by the Grantee or the Council from responsible persons and all other amounts otherwise received by the Grantee or the Council for cleanup of the Site shall be used to reimburse the Grantee, the Council, or any other nonresponsible party who contributed funds for cleanup of the Site in proportion to their respective payments for response costs. 4.05 Survival of Section. The provisions of Section IV (RECOVERY AND REPAYMENT) shall survive the expiration or termination of this agreement. V. AGREEMENT TERM 5.01 Term. This agreement is effective upon execution of the agreement by the Council. Unless terminated pursuant to paragraph 5.02 or extended by written request and confirmation pursuant to this paragraph, this agreement will terminate December 31, 2005. The term of this agreement may be extended for a reasonable amount of time if, at least thirty (30) days prior to the termination date, the Grantee's authorized agent or representative submits a written extension request which states the purpose of the extension, identifies a new completion date and describes in reasonable detail any proposed changes to the project activities and budget. An extension shall be effective only upon Page 4 of 7 Pages receipt of a written confirmation from the Council's authorized agent. Upon termination of this agreement, the Grantee must submit the annual written reports described in Attachment C. 5.02 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, and includes failure to make reasonable and timely progress in performing and completing the project activities described in Attachment A. The Grantee shall have the right to cure any and all defaults during the fourteen-day notice period without incurring penalty. If this agreement is terminated, the Grantee shall receive payment on a pro rata basis for project activities described in Attachment A that have been completed. Termination of this agreement does not alter the Council's authority to recover grant funds on the basis of a later audit 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, to the extent such grant funds were not used in accordance with this agreement. 5.03 Amendments. The Council and the Grantee may amend this agreement by mutual agreement. Except for a term extension pursuant to paragraph 5.01, amendments, changes or modifications of this agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. VI. GENERAL PROVISIONS 6.01 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 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. 6.02 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. 6.03 Liability. 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 cleanup work funded in part by this grant. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter l15B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) as amended, 42 U.S.C. sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, 42 U.S.C. 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 survive the termination of this agreement. This indemnification shall not be construed as a waiver on the part Page 5 of 7 Pages 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. 6.04 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 which 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 sponsors or entities providing financial support for the project. 6.05 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. 6.06 Contractors and Subcontractors. The Grantee shall include in any contract or subcontract for project activities related to the cleanup of polluted land appropriate contract provisions to ensure contractor and subcontractor compliance with all applicable state and federal laws. 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, especially the federal Hazardous Waste Operations and Emergency Response standards under title 29, Code of Federal Regulations, sections 1910.120 and 1926.65. 6.07 Stormwater Discharge Requirements. If any grant funds are used for urban site redevelopment, the Grantee shall at such redevelopment site meet or require to be met: (a) all requirements of federal and state law relating to stormwater discharges including, without limitation, any applicable requirements of title 40, Code of Federal Regulations, parts 122 and 123; and (b) any additional requirements of the Council's Interim Strategy to Reduce Nonpoint Source Pollution to All Metropolitan Water Bodies (1992) including, without limitation: (1) the requirement to utilize the Minnesota Pollution Control Agency's urban best management practices entitled Protecting Water Quality in Urban Areas; and (2) the requirement that all stormwater must be pretreated by facilities designed to provide pollutant removal efficiencies equal to or greater than those observed in wet-detention basin facilities designed in accordance with the National Urban Runoff Program (NURP) design criteria. 6.08 Attachments. The following are attached to this agreement and are incorporated into and made a part of this agreement: (a) Attachment A - A summary of the project activity and budget provisions of the Grantee's application for Tax Base Revitalization Account grant funds Page 6 of 7 Pages (b) Attachment B - Grant Fund Disbursement Schedule (c) Attachment C - Written Report Submission Schedule 6.09 Warranty of Legal Capacity. The individual signing this agreement on behalf of the Grantee represents and warrants on the Grantee' s behalf that the individual is duly authorized to execute this agreement on the Grantee's behalf and that this agreement constitutes the Grantee'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. Approved as to form: METROPOLITAN COUNCIL Elizabeth i..R_fan~ Housing and I~i'wa4ole Communities Date CI~ OF COLUMBIA HEIGHTS Dat/ Title ~; Date SG2003131 03/04 Page 7 of 7 Pages ATTACHMENT A APPLICATION FOR TAX BASE REVITALIZATION ACCOUNT GRANT FUNDS This attachment comprises this page and page A-1 and contains a summary of the proposed project identified in the Grantee's grant application which was submitted in response to the Council's notice of availability of grant funds for the Fall 2003 grant cycle. The summary reflects the Grantee's proposed project as approved by the Council on December 17, 2003, 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 Grantee's grant application is incorporated into this grant agreement by reference and is made a part of this grant agreement except as follows. If the Grantee's application or any provision in the grant application conflicts with or is inconsistent with other provisions of this agreement or the project summary contained in this Attachment A, the terms, descriptions and dollar amounts contained this grant agreement and the project summary contained on page A-1 shall prevail. Columbia Heights - Columbia Heights Industrial Park Increase in net tax capacity $ 515,759 Acres cleaned 15.12 New jobs 30 Average hourly wage $10.57 ?rivate redevelopment leverage $ 34,000,000 Funding request - TBRA $ 413,541 Funding request - DEED $1,334,832 Recommended funding - TBRA $ 231,731 Recommended funding - DEED $1,001,640 The city of Columbia Heights seeks TBRA funding as match to a DEED grant to address contamination challenges for 15.12 acres at Columbia Heights Industrial Park. This request is for redevelopment of the first phase of a multi-phase effort. Redevelopment goals of this phase are primarily to support different types of residential development. In addition, 13,000 square feet of commercial space will be constructed with the residential uses. Soil contamination from historic and varied industrial uses includes petroleum, chlorinated solvents, lead and foundry waste materials. In addition, buildings with asbestos containing materials need to be demolished. TBRA funds will be used for investigation,' soil excavation, testing and disposal, backfill, asbestos abatement, ground water remediation and monitoring, and other RAP required activities. Demolition will be a reimbursable expense if DEED determines it is eligible. Total cleanup costs are estimated to be $1,961,947, which is about 5 % of the total redevelopment costs. DTED eligible project budget: Site Investigation $ Impacted Soil Testin, g and Removal $ Foundry Waste Removal $ Pre-demo surveys, Asebestos Abatement $ Bldg. Demolition (Bldg. #31) $ Supplemental Investigation $ Groundwater Remediation, Monitoring $ Other Cleanup and Reporting Costs $ Total $ 52,648 223,923 476,618 142,659 9,103 51,198 22,218 23,273 1,001,640 A-1 ATTACHMENT B GRANT FUND DISBURSEMENT SCHEDULE The total grant amount specified in paragraph 2.01 of this agreement shall be disbursed to the Grantee for uses consistent with this agreement according to the following schedule: The Council will disburse grant funds in response to written disbursement requests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the Site cleanup activity funded by this agreement, the contractor(s)/vendor(s) to be paid, and the time period within which the cleanup work was or will be performed. Disbursements prior to the performance of cleanup activities will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Grantee. Cleanup work performed in different seasonal or construction activity time periods should be aggregated in separate disbursement requests. Subject to verification of a written disbursement request 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 written disbursement request. ATTACHMENT C WRITTEN REPORTS AND SUBMISSION SCHEDULE By March 1 of the year following the termination of this grant agreement and by March 1 of each of the succeeding four (4) years, the Grantee must submit to the Council an annual written report that: 1. Outlines the redevelopment activities completed on the Site during the previous calendar year; and 2. Identifies the net tax capacity of the Site as indicated by the city or county assessor for the current year; and o Identifies the part-time and full-time jobs created as a result of redeveloping the cleaned up Site, including a list of the net jobs as of the end of the previous calendar year and the percentage of new jobs in the following hourly rate categories: Less than $8.49 Between $8.50 and $10.49 Between $10.50 and $12.50 More than $12.50 These reporting requirements shall survive the expiration or termination of this grant agreement. AUTHORIZED AGENT The Council's authorized agent for the purposes of administering this agreement is Janice Gustafson or another designated Council employee. The written report(s) submitted to the Council shall be directed to the attention of the Council's authorized agent at the following address: Metropolitan Council Mears Park Centre 230 East Fifth Street Saint Paul, Minnesota 55101-1634