CR2002-010 Livable communities transit grant agreement
CITY Or:
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January 8,2002 HOPKINS Council Report 2002-10
. AUTHORIZE EXECUTION OF LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT
AND SUPPLEMENTAL TRANSIT FUNDING GRANT AGREEMENT
Proposed Action
Staff recommends adoption of the following motion: Move to authorize the Director of
Planninq and Economic Development to execute the Metropolitan Livable Communities Act
Livable Communities Demonstration Account and Supplemental Transit Fundinq qrant
aqreement.
With this motion the agreement will be executed and forwarded to the Metropolitan Council
for their signature.
Overview
In May the City of Hopkins applied for $825,000 in grant funds through the Livable
Communities Demonstration Account for the East Central Business District (CBD)
redevelopment project. The application detailed a number of activities for which the City
sought funding.
The Metropolitan Council awarded the City of Hopkins $600,000 in Livable Communities
Demonstration Account grant funds and $21,250 in supplemental transit grant funds for the
project. The funds are to be used for the following activities:
. $200,000 Land Acquisition
$300,000 Structured Parking
$100,000 Architectural Detailing
$ 21,250 Improved Bus Stop
The funds will be used to offset the costs of the project
Primary Issues to Consider
The City of Hopkins must complete all major components of the grant project to be eligible for
the grant funds, however, the funds may be drawn down at any time for a completed activity.
The agreement requires the City to acknowledge the financial assistance in promotional
materials, signage, press releases, etc... and does have provisions for continued reporting
regarding the use of funds.
The agreement expires on December 31, 2004, unless amended.
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Budgeted: Y/N Source:
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Grant No. SG-01-128
. METROPOLITAN LIVABLE COMMUNITIES ACT
LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT
AND SUPPLEMENTAL TRANSIT FUNDING
GRANT AGREEMENT
THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Council")
and the City of Hopkins ("Grantee").
WHEREAS, Min11esota Statutes section 473.251 creates the Metropolitan Livable Conununities
Fund, the Llses 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 Of loans to municipalities participating in the Local
Housing Incentives Program under MilUlcsota Statutes section 473.254 or to metropolitan-area
counties to fund the initiatives specified in MilUlesota Statutes section 473.25, paragraph (b), in
participating municipalities; and
. WHEREAS, the Council makes Livable Conununities Demonstration Account funds available to
heIp fuud local initiatives to develop project-specific and site-specific plans according to Smart
Growth principles; 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 5, 2001 regular meeting, the Council awarded the Grantee $600,000
in Livable Communities Demonstration Account grant funds and $21,250 in supplemental transit
funding for the East Central Business District Redevelopment project described in the Grantee's
application for Livable Communities Demonstration Account funds.
NOW THEREFORE, in consideration of the mutual promises and covenants contained in this
agreement, the Grantee and the Council agree as follows:
l. 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.
Pa~e 1 of 6 Pages JY
(a) "Metropolitafl Area" means the seven-county metropolitan area as defined by Minnesota
. Statutes section 473.121, subdivision 2.
(b) "Municipality" means a statutory or home rule chmier 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 $621,250.00
which shall comprise $600,000.00 Livable Communities Demonstration Account grant funds from
the Metropo Etan Livable Communities Fund and $21,250.00 in supplemental transit funding.
Notwithstanding any other provision of this agreement, the Grantee understands and agrees that any
reduction or termination of Livable Conununities 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. A summary of the
Grantee's application which identifies eligible uses of the grant funds is attached to and
incorporated into this agreement as Attachment A. If the provisions of the Grantee's application are
inconsistent with other provisions of this agreement, the other provisions of this agreement shall
take precedence over the provisions of the application. Grant funds must be used to fund the
initiatives specjfied 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
activjties and are intended to be used for "hard costs" rather than "soft costs." Lneligible uses
include: administrative overhead; activities prior to the date 0f 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 perfonnance of the project activities described in Attachment A. The Grantee
agrees to remit to the COlmcil 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 Attac1unent 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 and perfot1n the special conditions stated in Attachment A,
Page 2 of 6 Pages
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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 m Attachment A shall be considered acceptable without further
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.
I 2.05 Interest Earnings and Revolved Funds. If the Grantee cams any interest or other income
from the grant funds received fi-oI11 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 lIses 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 Mirmesota Statutes sections 473.25,
473.254 and 473.253; or (b) retu01 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 EtTect 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
Page 3 of 6 Pages
05
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
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
tenninated pursuant to paragraph 4.02, this agreement expires December 31,2004.
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 retum any grant funds due to the Council as a result of later audits or corrections. If the Council
detennines 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 retum 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 affimlative 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 hmmless the Council and its members, employees and agents from and against all claims,
Page 4 of 6 Pages r)(
damages, losses and expenses, including but not limited to attohleys' 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
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.e. sections 9601 et scq., 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 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 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 altemative language approved by the Council's authorized
. agent, is included on all signs located at project or constmction sites that identifY project sponsors
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 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 Mimlcsota Pollution Control Agency's urban best management
practices entitled Protecting Water Quality in Urban Areas; and (2) the requirement that all
stonnwater must be pretreated by facilities designed to provide pollutant removal efficiencies
Page 5 of 6 Pages IJ1
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:
(a) Attachment A - Summary of the Grantee's application for Livable Communities
Demonstration Account grant funds, as approved by the Council
(b) Attacllll1eni B - Grant Fund Disbursement Schedule
(c) Attachment C - Written RepOlt Submission Schedule
5.09 Warranty of Legal Capacity. The individual signing this agreement on behalf of the Grantee
represents and warrants on the Grantee's behalf that the individual is 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
By
Associate General Counsel Elizabeth J. Ryan, Director
Housing and Livable Communities
Date
CITY OF HOPKINS
By
James KelTigan, Director
Plamling and Economic Development
Date
SG0112B
.
Page 6 of 6 Pages ry
. ATTACHMENT A
APPLlCA TION FOR LlV ABLE COMMUNITIES DEMONSTRATION ACCOUNT GRANT FUNDS
This attaclunent comprises this page and page A - J and contains a summary of the proposed project
identified in the Grantee's grant application which was submitted in response to the Council's
notice of availability of grant funds. The summary reflects the Grantee's proposed project as
approved by the Council on December 5,2001, and may reflect changes in project funding sources,
changes in funding amounts, or minor changes in the proposed proj ect that occurred subsequent to
the application submission. The Grantee's grant application is incorporated into this grant
agreement by reference and is made a part of this grant agreement except as follows. If the
Grantee's application or any provision in the grant application conflicts with or is inconsistent with
other provisions of this agreement or the project summary contained in this Attachment A, the
tenns, descriptions and dollar amounts contained in this grant agreement and the project summary
contained on page A -1 shall prevail.
.
.
/7P
. Applicant: Hopkins Recommended Funding Amount: $621,250
Project Name: East Central Business District Redevelopment
Project Description
. Acquire six commercial structures and four surface parking lots on Mainstreet and 7'11 Avenue South;
located one block from Southwest Regional LRT Trail.
. Add 10,000 square feet of retail Ires tau rant use along Main Street
. Add 60 to 100 rental and ownership housing units along 7th A venue
. Upgrading a heavily used bus stop shelter on Mainstreet
. Add public courtyard to improve access to public spaces
Model Type: lnfill of a downtown site on a transit corridor
Advisory Committee Comments
. Parking structure is a good use in this type of model
. Located along numerous transit routes with high frequency service; will add more riders to the
regional system and support policy to infilJ development along transit corridors.
. Located along a future Southwest Transitway corridor; the site is highly likely to be directly adjacent
to a future station.
. Funding RequestedlFunding Recommended
Total Requested: $825,000 Total Recommended: $621,250
Amount Requested ... ^inount Recommended . Use 6fFuilds- h.
$200,000 $200,000 Land acquisition
$300,000 $300,000 Stnlcturedparking
$25,000 $21,250 Improve bus stop
(supple. transit funds)
$200,000 $100,000 Architectural detailing -
$100,000 -0- Stonn sewer relocation
Previous LCDA Grants Received For This Or Related Project
No previous LCDA grants requested or awarded.
Development Timeline
. Land acquisition - October-December 2001
. Project design - October 200 I-Febmary 2002
. Demolition - May-April 2002
. Prcsales & Leasing - February-May 2002
. Construction - June 2002-0ctober 2003
.
A -1
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. 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 tem1S and conditions mutually agreed to by the
Council's authorized agent and the Grantee. Individual disbursement requests should
specity 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.
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. ATTACHMENT C
WRITTEN REPORTS AND SUBMISSION SCHEDIILE
Begimling three (3) months after the Grantee initially receives grant funds, the Grantee shall submit
to the Council wlitten quarterly reports which shall contain at least the following elements:
. A sununary 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 detemlined by the Council. This reporting requirement
and the reporting requirement of paragraph 2.05 shall survive the termination or expiration of this
agreement.
I
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 ofthe Council's authorized agent at the following address:
Metropolitan Council
Mears Park Centre
230 East Fifth Street
Saint Paul, Minnesota 55101-1634
.
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