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HomeMy WebLinkAboutContract 1556 63-3 Grant No. SG- 99 -47' METROPOLITAN LIVABLE COMMUNITIES ACT LIVABLE COMMUNITIES DEMONSTRATION 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 473.253 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 metropolitan-area counties to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (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 or a metropolitan-area county and submitted an application for Livable Communities Demonstration Account funds in response to the Council's request for applications; and WHEREAS, at its December 17, 1998 regular meeting, the Council awarded Livable Communities Demonstration Account grant funds to ten projects, including the project described in the Grantee's application for Livable Communities Demonstration Account funds; and WHEREAS, the Grantee's project has been delayed to resolve funding issues and the Grantee now proposes to use the grant funds for downtown master plan preparation and for senior assisted living and tax credit rental housing projects. 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) "Metropolitan Area" means the seven - county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. Page 1 of 6 Pages (b) "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, or a county in the Metropolitan Area. (c) "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 a total sum of $575,000.00 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 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 the purposes and activities described in the Grantee's application for Livable Communities Demonstration Account grant funds, as revised to reflect the grant award made by the Council. A summary of the Grantee's project which identifies eligible uses of the grant funds is attached to and incorporated into this agreement as Attachment A. If the Grantee's project description is inconsistent with other provisions of this agreement, the other provisions of this agreement shall take precedence over the project description. Grant funds must be used to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (b), in a Participating Municipality. Grant funds must be used for costs directly associated with the specific proposed activities and are intended to be used for "hard costs" rather than "soft costs." Ineligible uses include: 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; comprehensive planning costs; and prorated lease and salary costs. If consistent with the application, the Grantee may use the grant funds to make deferred loans (loans made without interest or periodic payments), revolving loans (loans made with interest and periodic payments) or otherwise make the grant funds available on a "revolving" basis for the purposes of implementing the project activities described in Attachment A. 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 are not used for the authorized purposes specified in this paragraph; any interest earnings described in paragraph 2.05 which are not used for the purposes of implementing the project activities described in Attachment A; and any "revolved" funds described in paragraph 2.05 that are not used by the Grantee to implement affordable and life -cycle housing initiatives pursuant to paragraph 2.05. The Grantee must complete all major components of the grant project as proposed and for which the Council made its grant award, or the Grantee must return to the Council the entire grant amount specified in paragraph 2.01 of this agreement. 2.03 Budget Variance. A variance of ten percent (10 %) in the amounts allocated to various eligible uses identified in Attachment A shall be considered acceptable without further Page 2 of 6 Pages • documentation or Council approval. Budget variances exceeding ten percent (10 %) may require approval of the governing body of the Metropolitan Council. Notwithstanding the aggregate or net effect of any variances, the Council's obligation to provide grant funds under this agreement shall not exceed the maximum grant amount specified in paragraph 2.01 of this agreement. 2.04 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. 2.05 Interest Earnings and Revolved Funds. 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. If the Grantee uses the grant funds on a "revolving" basis or otherwise receives revolved funds from the project activities described in Attachment A, the Grantee must: (a) use the revolved funds to implement similar eligible projects that will help the Grantee meet its affordable and life -cycle housing goals and implement the purposes of Minnesota Statutes sections 473.25, 473.254 and 473.253; or (b) return the revolved funds to the Council for use with other eligible projects. The Grantee shall report to the Council any revolved funds received by the Grantee and the Grantee's uses of those revolved funds. 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. 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 Page 3 of 6 Pages 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. 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 expires December 31, 2002. 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, 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. 4.03 Amendments. The Council and the Grantee may amend this agreement by mutual agreement. 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. 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 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. 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. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Page 4 of 6 Pages • Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, 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 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 and the State of Minnesota 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, or similar, language: This project was financed in part with a grant from the Metropolitan Council through the Livable Communities Demonstration Account of the Metropolitan Livable Communities Fund. 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 Contractors and Subcontractors. The Grantee shall include in any contract or subcontract for project activities 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. 5.07 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. 5.08 Attachments. The following are attached to this agreement and are incorporated into and made a part of this agreement: Page 5 of 6 Pages (a) Attachment A - Summary of the Grantee's application for Livable Communities Demonstration Account grant funds, as approved by the Council (b) Attachment B - Grant Fund Disbursement Schedule (c) Attachment C - Written Report Submission Schedule 5.09 Warranty of Legal Capacity. The individuals signing this agreement on behalf of the Grantee represent and warrant on the Grantee's behalf that the individuals are 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 iZ. By � L\ -\‘„, Associat eneral Counsel Elizabeth J. Ryan, Director Housing and Livable Communities Date \ \ — -0 % CITY OF C 1 LUM A TS Gary L. P- erson, Mayor Date /(5 — / 07, By -40 Walter R. Fe st, City Manager Date /0/ a Page 6 of 6 Pages ATTACHMENT A APPLICATION FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT GRANT FUNDS This attachment comprises this page and page A -1, which contains a summary of the Grantee's downtown master plan, tax credit rental housing and senior assisted living projects that will be funded under this Agreement. Community Revitalization, Columbia Heights Location: 41' Avenue Northeast, within the general project area around downtown Columbia Heights (south of 42 " Avenue, north of 37''' Avenue along Central Avenue). Description: Redevelop a block between commercial and single - family uses to include 26 for -sale townhouses ranging in price from $108,000 - $140,000 (12 affordable at $120,000 or less), 18 tax credit rental townhouses for incomes at $30,400 (50 percent of median) or Less, 70 senior rental apartments and a potential transit hub. The larger project area goal is the revitalization of downtown Columbia Heights, to be implemented through a master plan. Regional Implications: Will add infill development and help revitalize an older community, expanding housing choices in an area accessible to transit and services. Anoka County and Metro Transit have been actively seeking Columbia Heights' support in finding a good location for a transit station between 39t and 41 Avenues; this is an opportunity to work with the city to model how a transit station could be integrated into a mixed -use development area, enhance the area's amenities and increase transit ridership. Grant Award: $575,000 Demonstration Account Budget: Prepare Downtown Master Plan $ 30,000 Tax Credit Rental Housing Project $235,000 Senior Assisted Living Project $310,000 Total $575,000 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 project activity funded by this agreement, the contractor(s) /vendor(s) to be paid, and the time period within which the project activity was or will be performed. 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. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. 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 fifteen (15) business days after receipt of a written disbursement request. ATTACHMENT C WRITTEN REPORTS AND SUBMISSION SCHEDULE Beginning three (3) months after the Grantee initially receives grant funds, the Grantee shall submit to the Council written quarterly reports which shall contain at least the following elements: • A summary of grant funds received and expended to date, including a description of the purposes or uses for which the grant funds were expended; and • A statement of expected grant fund expenditures within the next quarter. The Grantee's final written quarterly report shall be submitted within two (2) months following the expenditure of all grant funds by the Grantee and shall contain a certification by the Grantee's chief financial officer that all grant funds have been expended in accordance with this agreement and the provisions of the Metropolitan Livable Communities Act. The Grantee also shall complete and submit to the Council a Monitoring and Evaluation Report which will assist the Council in monitoring and evaluating the implementation of the Livable Communities Demonstration Account program. The contents, format and completion date of the Monitoring and Evaluation Report will be determined by the Council. This reporting requirement may survive the termination or expiration of this agreement. AUTHORIZED AGENT The Council's authorized agent for the purposes of administering this agreement is Wayne Nelson 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