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HomeMy WebLinkAboutContract 1975DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM GRANTEE: City of Columbia Heights GRANT NO. SG006-166 PROJECT: Grant Central Lofts GRANT AMOUNT: $974,369.00 FUNDING CYCLE: Fail 2006 COUNCIL ACTION: December 13, 2006 END DATE: December 31, 2008 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, Mirn~esota 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 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 "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: Page 1 ~ f 8 Pages 1975 DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM I. DEFINITIONS 1.01 Definition of Terms. The tei-~ns defined in this para~aph have the meanings given them in this paragraph unless otherwise provided or indicated by the context. (a) "Cani~zcil Action" means the action or decision of the govel~ling 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) "De~~elopment 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) "Mete^opolitan 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 shal] 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. L.OL Authorized Use of Grant li'unds. '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 iil Minnesota 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 prior 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 cast overruns which may be incurred by the Grantee or others in the implementation or performance of the project activities. 2.03 Eminent Domain Restrictions. On January 25, 2006 the Council adopted a policy that restricted the use of LCA grant funds on projects when eminent domain authority was used to Page 2 a f 8 Pages -, DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM acquire private property for "economic development" purposes in connection with the projects. The Council's policy defined the teen "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/livcomm/EminentDomainPolicy.htm. (a) If a notice of petition was served between January 25, 2006 and May 20, 2006 in com~ection 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: (I) would have been eligible under the Council's January 25, 2006 policy; or (2) qualifies for an exemption 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 Mimnesota Statutes section 1 17.012, subdivision 3 or 2006 Minnesota Laws chapter 214, section 22, clauses (b) through (e). 2.04 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 2.06 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 occurred 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 of the grant funds. 2.05 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 farms are available online at: http://www.metrocounciLorg/services/livcomm/LCAresources.htm. Disbursements prior to the performance of a project activity will be subject to terns and conditions mutually agreed to by the Council's authorized agent and the Grantee. Subject to verification of each pa}nnent 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 fore. Page 3 of 8 Pages DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM 2.06 Interest Earnings. If the Grantee earls any interest or other income from the grant funds received from the Council under this Agreement, the Grantee will use the interest earrings or income oily for the purposes of implementing the project activities described in Attachment A. 2.07 Effect of Grant. Issuance of this meant 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 tune, 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 160.05, 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 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 required under Paragraph 2.05 will constitute periodic status reports. The Grantee also must complete and submit to the Council within sixty (60) days after the termination or expiration of this Agreement a final monitoring and evaluation report, the fore 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 enviromnental assessment or review is appropriate for the scope and nature of the project activities funded by this grant, and that any enviromnental 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 TO THE END DATE SHALL REVERT TO THE COUNCIL. Page 4 o f 8 Pages DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM 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 Agz°eement and any amendments of this Agreement. If this Agreement is terminated prior to the End Date, the Grantee shall receive pa}nnent 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 returl 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 terns and coi~lditions of this Agreement and the applicable provisions of the Metropolitan Livable Conununities 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 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 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 emplo}nnent 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 coiTUmission, 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 amd 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, Page 5 o f ~ 8 Pages DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM 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 teriiination 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 Attaclunent A that are funded in whole or in part with the grant funds. The acknowledgment should contain the following language: Financing for° this pi°oject was pr•ovidecl by the Mete°opolitan Coz~tncil Metropolitan Li~~anle Comr7~unities Fiend. Until the project activities funded by this Agreement are completed, the Grantee shall ensure the above acknowledgment language, or alterative 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 Play and the local water management plan for the jurisdiction within which the redevelopment site is located. 5.08 Authorized Agent. Pa}nnent request forns, 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 6 o f 8 Pages DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM 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 executed by their duly authorized representatives execution by the Council. ,-~--~ GRANTEE B r Title ''~ ,~~-~ /"~` ~ ;~° . `~ 50006166DEM0 the Council have caused this Agreement to be This A~u-eement is effective on the date of final y '.` METROPQIJIT`~N COUNCIL .W_____ ~ -, Director, Housing and Livable Communities Date ~ ~ - ~' 1 ovo~ Page 7 o f ` 8 Pa des DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAM ATTACHMENT A APPLICATION FOR LIVABLE COMMIINITIES DEMONSTRATION ACCOUNT FUNllS This attachment comprises this page and the succeeding page(s) which contain(s) a summary of the proposed project identified in the application for Livable Communities Demonstration Account grant fluids 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 A~eement, or the project summary contained in this Attachment A, the teens, 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: (I) the Council Action; (2) this Agreement; (3) the project summary; and (4) the grant application. Page 8 o f 8 Pages Applicant: Columbia Heights Recommended Funding Amount: $974,369 Project Name: Grand Central Lofts Project Description in Application: This 15-acre redevelopment of a vacant Klnart store site includes: 1. Provide a diversity housing choices and. new commercial. development to promote job creation. 2. Support urban housing densities along with performance standards to create long-term value to support neighborhood services and. business. 3. Promote an attractive urban neighborhood that includes housing amenities such as decks, open spaces, gathering, recreational amenities, pedestrian ways landscaping and green spaces. 4. Successfully integrate the new neighborhood into the surrounding older established neighborhoods. 5. Require high quality community design standards. 6. Implement strategies to reduce parking requirements, including reducing parking ratios, shared parking, mass transit, structured parking, and. trails/sidewalks. The first phase, began construction in 2004, and includes 21 townhomes, and three 70-unit four-story condominium buildings for a total of 231 new for-sale housing unites. Eighteen of the condominium units will be affordable. The second phase, for which LCDA funding was requested, is expected to begin in 2007, and includes the construction of 47,698 square feet of new retail, office and restaurant space in two buildings. The second phase of the redevelopment also includes 280 stalls of parking. Fifty (50) stalls will be constructed at-grade. Two hundred and thirty (230) stalls will be constructed as a publicly- owned, two-story parking ramp. Advisory Committee Comments on Demonstration, Innovation, Catalyst Elements of this Project: This project demonstrates redevelopment of an aging corridor to maximize commercial development in a small community and connect commercial uses with housing. The funding request is the right catalyst to move the project forward. Funding Requested/Funding Recommended: 't'otal Recucstcd: $97,359 ~i vial Ra:~vaia'-Ti'aE'uda.d: .ei~97~,359 Amount Re nested Amount.. Recommended Use of Funds $974,369 $974,369 Construction of public parking ramp - 230 stalls Previous LCDA Grants Received Far This Or Related Project: Development Timeline: None. Task Start Date;.. End Date '' Construction of ublic arkin ram January 2007 June 2008 Grant Na. SG006-266 AMENDMENT AND EXTENSION OF METROPOLITAN LIVABLE COMMUNITIES ACT LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT DEVELOPMENT GRANT PROGRAIVi GRANT AGREEMENT THIS AGREEMENT is made and entered into by the Metropolitan Council ("Council") and the City of Columbia Heights ("Grantee"). WHEREAS, on February 9, 2007 the Council and the Grantee entered into a grant agreement identified as Council Grant No. SG006-166 under which the Council provided $974,369.40 in Demonstration Account grant program funds to the Grantee to support the Grantee's Grand Central Lofts project; and WHEREAS, pursuant to Paragraph 4.01 of Grant No. SG006-166 the grant agreement will terminate on its "End Date" of December 31, 2008; and WHEREAS, pursuant to Paragraph 4.03 of Grant No. SG006-166 the End Date may be extended only once and the one-time extension may not exceed one year beyond the original End Date identified at Page 1 of the grant agreement; and ~"~HEREAS, by letter dated August 25, 2008, the Grantee requested a one-year extension of the grant agreement to allow more time for the project to be completed; and WHEREAS, the parties mutually agree that the grant agreement should be continued and extended beyond its December 31, 2008 End Date so the grant funds can be used for their intended purposes. NOW, THEREFORE, pursuant to Paragraph 4.03 of Grant No. SG006-166 and in consideration of the promises and covenants contained in this agreement, the Council and the Grantee agree to amend and extend Grant No. SG006-166 as follows: The "END DATE" identified at Page 1 of the Agreement and referenced in Paragraph 4.01, Term, is changed from December 31, 2008 to December 31, 2009. Page 1 of 2 Pages Except for this modification, the provisions of Grant No. SG006-166 shall remain in force and effect without change and Grant No. SG006-166 shall be extended as provided in this agreement. IN WITNESS WHEREOF, the Grantee and the Council have caused this agreement to be executed by their duly authorized representatives. This agreement is effective on the date of final execution by the Council. Approved as to Form: ~# .rte'- -_' Associate general Counsel METROPOLIT By: Guy Peterson, Director Community Development Division Date: ~" ., CITY OF COLUMBIAE`HEIGI~TS .$, Gary Peterson, Mayor Date. a- Page 2 of 2 Pages