VII.3. Subordinate Funding Agreement 06 - Southwest LRT; Elverum (CR2017-006) December 27, 2016 Council Report 2017-006
SUBORDINATE FUNDING AGREEMENT 06– SOUTHWEST LRT
Proposed Action
Staff recommends adoption of the following motion: Move to approve Subordinate
Funding Agreement (SFA 06) between the City of Hopkins and the Metropolitan
Council.
With this motion the Subordinate Funding Agreement will be executed.
Overview
As a city with three SW LRT stations, Hopkins is an interested party in assuring that the
project is realized. During the course of project development, cost estimates increased
and additional funding was necessary for it to move forward. Hopkins, as well as the
other SW LRT cities, pledged a total of $7 million towards the overall project cost.
Hopkins portion of that is $500,000.
In July 2015, the City of Hopkins passed Resolution 2015-053, committing $500,000 in
local funding to support the project. The Subordinate Funding Agreement (SFA) legally
binds the City of Hopkins to pay $500,000 towards the overall project cost. Staff is
recommending the City’s Economic Development Fund as the source.
Primary Issues to Consider
The pledge of $500,000 has already been made through previous action. This
agreement, which has been reviewed by the City Attorney, specifies the payment
schedule for the funds in three annual payments beginning March 2018.
Supporting Information
• Subordinate Funding Agreement (SFA 06)
___________________________
Kersten Elverum
Director of Planning & Development
Financial Impact: $500,000 Budgeted: Y/N __Y___ Source: Economic Dev Fund
Related Documents (CIP, ERP, etc.): _______________________________________
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Reference Numbers:
SWLRT Project: 61001
Metropolitan Council: 14I059F
City of Hopkins: _____________
PROJECT: SOUTHWEST LIGHT RAIL TRANSIT PROJECT
MASTER AGREEMENT: Master Funding Agreement – City of Hopkins
PARTIES TO AGREEMENT: Metropolitan Council (“Council”)
City of Hopkins (“City”)
SUBORDINATE FUNDING AGREEMENT
City of Hopkins – 06 (Local Funding Contribution)
This Subordinate Funding Agreement (“SFA”) with the City of Hopkins is entered into by and
between the above named Parties.
WHEREAS:
1. The Parties entered into a Southwest Light Rail Transit Project (“Project”) Master Funding
Agreement (“MFA”) effective on April 1, 2015.
2. The Parties provided in the MFA that certain aspects of funding for the Project would be
determined in subsequent SFAs.
3. On July 7, 2015, the City passed Resolution 2015-053, Resolution Committing $500,000 in
Local Funds to the Southwest Light Rail Transit Project (Green Line Extension) (Exhibit A),
committing funding in an amount not to exceed $500,000 toward the Project.
4. The Parties desire to enter into this SFA in order to provide funding toward the Project.
NOW, THEREFORE, in reliance on the statements in these recitals, the Parties hereby agree as
follows:
1. Amount of Authorized Funding. The total City funding commitment for the Project shall be
in the amount of $500,000.
2. Payment. The funds shall be payable to the Council in accordance with the payment schedule
set forth in Exhibit B.
3. Project Budget. City funds provided for this SFA may only be used to fund the Council’s
costs for activities to be directly incurred within the described Specific Description of Funding
Authorization and as detailed in the MFA.
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4. Specific Description of Funding Authorization. Activities to be performed by the Council’s
contractor and funded by the City include activities directly attributable to the Project.
5. Project Activity Periods. The project activity period for the purposes of this SFA shall be
effective upon execution and shall terminate on the date all costs under this SFA have been
paid, unless terminated earlier consistent with the terms of the MFA.
6. Incorporation. The terms, conditions, and definitions of the MFA are expressly incorporated
into this SFA.
CITY OF HOPKINS METROPOLITAN COUNCIL
By: By:
Its:
Its:
Date: Date:
By:
Its:
Date:
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EXHIBIT A – City of Hopkins Resolution 2015-053
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EXHIBIT B – Payment Schedule for Funding Contribution
Payment
# Payable on or before: Contribution Amount
1 March 1, 2018 $166,666.67
2 March 1, 2019 $166,666.67
3 March 1, 2020 $166,666.66
Funding Contribution Total: $500,000