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DEMONSTRATION ACCOUNT
DEVELOPMENTGRANTPROG~
GRANTEE: City of Columbia Heights
GRANT NO. SG006-045
PROJECT: Huset Parkway
GRANT AMOUNT: $580,147.00
FUNDING CYCLE: Fa1l2005
COUNCIL ACTION: January 25, 2006
END DATE: December 31, 2007
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 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 Develop-
ment Authorities to fund the initiatives specified in Minnesota Statutes section 473.25(b) in
Participating Municipalities; and
WHEREAS, the Grantee is a MUl1icipality participating in the Local Housing Incentives Account
program under Minnesota Statutes section 473.254, a County or a Development AuthoIity; 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 any terms, conditions and claIifications stated in its Council Action,
and with the understanding that the project identified in the application will proceed to completion
in a timely mmmer and all grant funds will be expended pIior to the "End 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:
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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" 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" means Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties.
( c) "Development Authority" means a statutory or home rule charter city, a housing and redevelop-
ment authority, an economic development authority, or a port authority in the Metropolitan Area.
(d) "Metropolitan Area" means the seven-county metropolitan area as defined by Minnesota Statutes
section 473.121, subdivision 2.
( e) "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" 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.
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 grfult 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 Mimlesota
Statutes section 473.25(b), in a Participating Municipality. Grant funds must be used for costs
directly associated with the specific proposed activities and shall not be used for "soft costs" such
as: administrative overhead; activities plior to the date of the grant award; travel expenses; legal
fees; 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. The Council shall bear no responsibility for cost overruns which may be incuned by
the Grantee or others in the implementation or perfonnance of the project activities.
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2.03 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 End 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 2.05 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 End Date if the Grantee pays or is obligated to pay for expenses of eligible
project activities that occUlTed prior to the End Date and the eligible expenses were incurred prior to
the End 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. 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 ofthe grant funds.
2.04 Payment Request Forms and Disbursements. The Council will disburse grant funds in
response to written disbursement requests submitted by the Grantee and reviewed and approved by
the Council's authorized agent. Written disbursement 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/livcomm/LCAresources.htm.
Disbursements prior to the performance of a 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 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.
2.05 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.
2.06 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
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
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following the completion of the project activities or six (6) years following the expenditure of the
grant funds, whichever occurs earlier. Pursuant to MiImesota Statutes sectionl6C.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 Sate Auditor, as approp11ate, 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 required under Paragraph 2.04 will constitute periodic
status reports. The Grantee also must complete and submit to the Council within sixty (60) days
after the termiIlation or expiration of this Agreement a final monitoring and evaluation report, the
form and content of which report will be determined by the Council. This reporting requirement
shall survive the termination or expiration 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 terminates on the "End Date" identified at
Page 1 of this Agreement and ALL GRANT FUNDS NOT EXPENDED BY THE GRANTEE PRIOR
TOTHEENDDATESHALLREVERTTOTHECOUNC~.
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
End 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
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 Conmmnities 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 End Date may be extended beyond the original End Date identified at Page 1 of this
Agreement if, AT LEAST THIRTY (30) CALENDAR DAYS PRIOR TO THE END DATE, the
Grantee's auth0l1zed 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
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the original End Date; and (c) describes in reasonable detail any proposed changes to the project
activities and budget. THE END DATE MAY BE EXTENDED ONLY ONCE. THE PERIOD OF
THE ONE-TIME EXTENSION SHALL NOT EXCEED ONE (1) YEAR BEYOND THE ORIGINAL
END 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 survive the termination of this Agreement. This indenmification 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 Aclmowledgments. The Grantee shall acknowledge the financial assistance provided by the
Council in promotional materials, press releases, repOlis 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.
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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 sub grant,
contract or subcontract for project activities appropriate provisions to ensure sub grantee, 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 Play 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
Mears Park Centre
230 East Fifth Street
Saint Paul, Minnesota 55101-1634
or such other address as may be designated by the Council.
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.
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GRANTEE:? f )
'.I /,u
j'l i "of'
By~,_ C2r/L"iLj Ll(~te:"hm_,,""",, ,
Gary L. Peterson
Title Mayor
By
y :?-( 0 h
By t/47/i12r
Walter R. Fehst t I
Title Ci ty Manager
Date
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Date
Date
3/2/0 \a
SG006045LCDA
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DEMONSTRATION ACCOUNT
DEVELOPMENT GRANT PROGRAM
ATTACHMENT A
APPLICATION FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDS
This attachment comprises this page and the succeeding page(s) which contain(s) a sUlmnary of the
proposed 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 COUllcil 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 SUl111llary contained in this Attachment
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 SUl111llary; and
(4) the grant application.
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Applicant: Columbia Heights
$580,147
Project Name: Huset Parkway
Recommended Funding Amount:
Project Description in Application:
The City of Columbia Heights is redeveloping a very blighted 30-acre industrial area. The entire area
will be completely razed and cleaned of contamination, and in its place there will be 548 new for-sale
homes constructed along with approximately 12,000 square feet of commercial space. Construction will
occur in three phases beginning in 2005 and ending in 2010. This redevelopment site is adjacent to the
City's 30-acre Huset Park. Important components of this redevelopment project are the parkway and
pond improvements. These components will integrate and connect the new homes to Huset Park, as well
as act as an amenity to help maintain and preserve the $125,000,000 of new residential and commercial
market value.
$75,000
$25,000
$228,560
$251,587
$225,000
$75,000 Walkin trails
$25,000 Sidewalk
$228,560 Landsca ing
$251,587 Pedestrian lighting
-0- Per ola
Development Timeline:
Walking trails, sidewalk, landsca ing and pedestrian lighting
0(