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Grant No. SG006-166 - :~
SECOND AMENDMENT OF
METROPOLITAN LIVABLE COMMUNITIES ACT
LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT
DEVELOPMENT GRANT PROGRAM
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. SG006-1.66 under which the Council provided $974,369.00 in
Livable Communities Demonstration Account grant program funds to the Grantee to help support
the Grantee's Grand Central Lofts project; and
WHEREAS, the Grantee's project was described as a 15-acre redevelopment of a vacant Kmart
store site that was planned to occur in two phases, the second of which phases was expected to
begin in 2007 and include the construction of 47,698 square feet of new retail, office and restaurant
space and a publicly owned two-story 230-stall. parking ramp; and
WHEREAS, the grant agreement identified the construction of the 230-stall public parking ramp
as the purpose for which the grant funds could be used; and
WHEREAS, in August 2008, the Grantee requested aone-year extension. of the grant agreement
to allow more time for the project to be completed; and
WHEREAS, on October 24, 2008 the Grantee and Grand Central Commons LLC entered into an
Easement and Maintenance Agreement for the construction, maintenance and use of the parking
ramp which granted a public parking easement in favor of the Grantee regarding tl~e parking
ramp; and
WHEREAS, on December 5, 2008, the Grantee and the Council executed an amendment to
Grant No. SG006-166 which changed the December 31, 2008 "End Date" of the grant agreement
to December 31, 2009; and
WHEREAS, on January 29, 2009 the Grantee requested a change to the end use of the
redevelopment project for which the grant funds were awarded indicating that the proposed
commercial, retail, restaurant and office space would be reduced from 47,698 square feet to 35,000
square feet (a 27 percent reduction) and the 230-stall parking ramp would be reduced to a 180-
stall parking ramp (a 22 percent reduction); and
Page 1 of 3 Page s
WHEREAS, at its March 11, 2009 meeting, the Metropolitan Council's governing body authorized
an amendment to the project description contained in Attachment A of Grant No. SG006-166 to
reflect a reduction of the size of the project's commercial space, a reduction in the size of the parking
ramp associated with the project, and a reduction in the amount of the grant from $974,369.00 to
$760,008.00; and
WHEREAS, the Metropolitan Council's governing body noted in its March 11, 2009 action that
the Grantee could, if it chose to do so, continue to proceed under the terms of the original grant
agreement; and
WHEREAS, the Grantee has chosen to accept a reduced grant amount and proceed with the project
as currently proposed which includes the construction of a 180-stall parking ramp.
NOW THEREFORE, pursuant to Paragraph 4.03 of Grant No. SG006-166, as amended on
December 5, 2008, and in consideration of the promises and covenants contained in this agreement,
the Council and the Grantee agree to further amend Grant No. SG006-166 as follows:
The "Grant Amount" identified at Page 1 of the grant agreement and referenced
in Paragraph 2.01 is reduced from $974,369.00 to $760,008.00.
2. An amended project summary that describes eligible uses of the grant funds as
approved by the Council is attached to this agreement and is incorporated into the
grant agreement as Attachment A. The amended project summary replaces the
project summary contained in the original grant agreement.
The Council and the Grantee further agree that: (1) the Grantee will ensure the October 24, 2008
Easement and Maintenance Agreement for the construction, maintenance and use of the parking
ramp continues to grant a public parking easement in favor of the Grantee regarding the 180-stall
parking ramp; and (2) the December 31, 2009 "End Date" of the grant agreement is not changed.
Except for these modifications, the provisions of Grant No. SG006-166, as amended on December 5,
2008, shall remain in force and effect without change.
IN WITNESS WHEREOF, the Grantee and the Council have caused this agreement to be
executed by their duly authorized representatives. This agreement is ffectve on the date of final
execution by the Council. -, (~
Approved as to form: METROPfOLI~'A~1 COJdNCIL
,~` ,
° _ _ BY
Associate General Counsel
Date
Guy`Peter~on, Director
Community Development Division
_~~~
Page 2 of 3 Pages
CITY OF CO MBIA~HEI(~HTS
By
Mary retersoniviayor
Date a. ~ ' ~ h '~{ 'f
_ ~'
..
By m _
Walter R. Fehst, 4:ity Manager
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Date ~¢' r
SG006166LCDAAA 03/19/09
Page 3 of 3 Pages
AMENDED PROJECT SUMMARY
Grantee: City of Columbia Heights SG006-166
Project Name: Grand Central Lofts
Project Location: 49`h and Central Avenue, Columbia Heights
Council District: 2
Project Description:
LCDA funds have been awarded for the second phase of the 15-acre redevelopment of the vacant K-Mart site
located at the intersection of 47th Avenue N.E. and Central Avenue in Columbia Heights. The second phase,
expected to begin in 2009, includes construction of 35,000 square feet of new retail, office and restaurant space in
two buildings. LCDA funds are designated for construction of a two-story 1.80-stall parking ramp, which is
privately owned but for which public access is guaranteed through an easement and maintenance agreement
between the City of Columbia Heights and the property owner.
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.
Fundin
Amount
Re nested - __ _
Amount Awarded
12/]3/2006
Amended Award
Amount ---
Use .of Funds
Contribute to the construction of a two-
level, 180-stall privately-owned parking
$974,369 $974,369 $760,008 ramp with public access guaranteed through
an easement agreement between the City of
Columbia Heights and the property owner.
Previous LCA Grants Received For This Or Related Project: None.
Development Timeline:
Task Start Date End Date
Parking ramp construction Spring 2009 12/31/2009