CR2003-055 subrecipient agreement alliant tech buld renov
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CITY OF
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March 27, 2003
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HOPKINS
Council Report 2003-055
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SUB-RECIPIENT AGREEMENT, HOPKINS MAINSTREET II, LLC
ALLIANT TECH BUILDING RENOVATION
Proposed Action
Staff recommends approval of the following motion: authorize the mayor and city manager to
enter into a sub-recipient grant agreement with Hopkins Mainstreet II, LLC, as relates to
Metropolitan Livable Communities Grant.
Overview
Hopkins Mainstreet II, LLC, is the ownership entity renovating the former Alliant Tech building.
As part of this process they found that there was substantially more asbestos abatement required
than originally projected. As a result the City, on their behalf, made application to the
Metropolitan Council and was subsequently approved for a Livable Communities Grant in the
amount of$579,528.
The agreement under consideration details various responsibilities and requirements of the sub-
grant recipient, Mainstreet II, LLC, to the grant recipient, City of Hopkins. The document was
prepared by Bob Deike of Bradley & Deike and reviewed by the City Attorney. The agreement
ensures that Hopkins Mainstreet II, LLC, complies with the various terms of the grant agreement
. executed between the City and the Metropolitan Council.
Alternatives
The City Council has the following alternatives regarding this action:
1) Approve the action as recommended by staff.
2) Continue the item for additional information. It should be noted that staffwill have to
withhold any funding to the sub-recipient until such time as the agreement is approved.
Supportin2 Documents
· Grant agreement between Metropolitan Council and City
· Sub-recipient Agreement
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ic Development Director
Financial Impact: $ 0 N/ A _ Budgeted: Y IN _ Source:
Related Documents (CIP, ERP, etc.):
Notes:
SUB-RECIPIENT AGREEMENT
THIS AGREEMENT, made on or as of the day of ,2003, by and
between the City of Hopkins, a home rule charter city under the laws of the State of Minnesota
(hereinafter referred to as the "City"), having its principal office at 1010 First Street South,
Hopkins, Minnesota 55343, and Hopkins Mainstreet II, LLC, a Minnesota limited liability
company (hereinafter referred to as the "Redeveloper"), having its principal office at 10 - 11 th
Avenue South Hopkins, MN 55343.
WITNESSETH:
WHEREAS, the Redeveloper is in the process of redeveloping certain real property
located within the City (which real property is referred to herein as the "Redevelopment
Property"); and
WHEREAS, the redevelopment of the Redevelopment Property involves the renovation
of an industrial facility that contains substantial asbestos which must be abated as a part of the
redevelopment; and
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WHEREAS, at the request of the Redeveloper, the City applied for grant funds from the
Metropolitan Council's ("Met Council") Livable Communities Fund to provide funding for
asbestos abatement on the Redevelopment Property (which remediation activities are referred to
herein as the "Work") and .
WHEREAS, pursuant to an application to Met Council (the "Application"), the City was
awarded a Livable Communities Grant (the "Grant") in the amount of $579,528.00, which Grant
will be disbursed by Met Council to the City pursuant to the terms and conditions of the
Metropolitan Livable Communities Act Tax Base Revitalization Account Grant Agreement
attached hereto as Exhibit A (the" Grant Agreement"); and
WHEREAS, the Redeveloper has agreed to pay any amount by which the cost of the
Work exceeds the Grant; and
WHEREAS, the parties desire to set forth in writing their agreement as to the
disbursement of the Grant from the City to Redeveloper.
NOW, THEREFORE, in consideration of the' foregoing premises and the mutual
representations, warranties, covenants and agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows;
Hopkins beard excelsior grant agreement
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1.
Accuracy of Recitals. The parties agree that the recitals are true and accurate.
2. Disbursement of Grant Funds. If and to the extent that the City receives funds
pursuant to the Grant, the City shall, timely, disburse them to the Redeveloper or any contractor
performing the Work, as designated by Redeveloper, subject to the terms and conditions of this
Agreement and the Grant Agreement. The City makes no representation or warranty concerning
the availability or sufficiency of the Grant.
3. Use of Funds. Redeveloper shall use any and all funds disbursed to it hereunder
solely to pay, or to reimburse itself for paying, the costs and expenses incurred by Redeveloper
in connection with the Work and otherwise in accordance with and subject to the conditions
imposed upon the City in the Grant Agreement. Redeveloper shall take all steps necessary to
assure such use of funds through its contracts with its contractors.
4. Redeveloper Obligations. Redeveloper does hereby assume and agree to perform
and observe all of the covenants, obligations, agreements and conditions to be performed or
observed by the City under the Grant Agreement. Without limiting the generality of the
foregoing, the Redeveloper specifically agrees as follows:
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A. Redeveloper is the owner of the Redevelopment Property and has the legal
right to perform the Work on the Redevelopment Property. The Redeveloper shall
expeditiously and diligently commence and pursue the Work so that the Work is
completed in accordance with the budget approved by Met Council (the "Budget") and
within the timeframes specified in the application and Grant Agreement. Redeveloper
shall immediately notify the City in the event of any change in the prospects for the
timely and satisfactory completion of the Work within the Budget.
B. Redeveloper shall perform the Work, and shall include in any contract for
performance of any part of the Work provisions requiring the contractor to perform such
part of the Work in a good and workmanlike manner and in accordance with applicable
state and federal laws and regulations, including, without limitation, MPCA guidelines
and requirements and applicable OSHA regulations including the federal Hazardous
Waste Operations and Emergency Response Standards (29 CFR 1910.120 and 29 CFR
1926.65).
C. In the event that Met Council, pursuant to the "Termination Clause" in the
Grant Agreement, demands return of Grant funds already disbursed, Redeveloper
forthwith shall within thirty (30) days of demand by the City pay the City the amount
demanded by Met Council. '
D. Redeveloper shall maintain accurate and complete books, accounts and
records pertaining to the Work (including without limitation any independent audits of
Redeveloper required by the Grant Agreement) and permit City and Met Council
representatives and other parties designated in the Grant Agreement to have free access to
and to inspect and copy all books, accounts, records and contracts relating to the Work
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and to discuss the same, as well as the progress and findings of the Work, with
Redeveloper's project managers at reasonable times and intervals.
E. Redeveloper shall prepare and timely submit to the City and Met Council
the annual reports on grant fund distribution and Work progress as required by the Grant
Agreement.
F. The City's authorization of the submission of the applications under the
Met Council Program was predicated on the understanding that the City would not incur
any financial obligations and that the Redeveloper would be responsible for the payment
of all cost of the Work in excess of the Grant, including, without limitation, any required
local contribution or local match required under the Programs. If the City is required to
actually pay any amount in connection with the Grant, the Redeveloper shall within ten
(10) days after request by the City, payor reimburse the City for such amounts.
G. The Redeveloper shall provide all certifications at the times the same are
required to be provided under the Grant Agreement.
5. Disbursement Procedures. A. Redeveloper shall prepare and submit to the City
periodic payment requests for the costs and expenses of the Work in the form required by Met
Council and the City, and the City shall forward the same to Met Council. At a minimum, each
payment request shall state the cleanup activity for which payment is requested, the
contractor(s)/vendor(s) to be paid, the time period within which the subject activity was
performed, evidence of proper application and payment of funds paid to Redeveloper pursuant to
prior payment requests, the curr~nt balance remaining to be paid for each construction line item
and the remaining balance of such line item after the requested payment is made. Each payment
request shall be signed by a representative of the Redeveloper, and the Redeveloper's
construction manager. Each payment request shall be accompanied by invoices from contractors
and, if the payment is requested for reimbursement of costs paid by the Redeveloper, cancelled
checks showing payments made. During the course of constructing the Work the Redeveloper
shall maintain and submit with each payment request a document showing the sources and uses
of construction funds updated as of each payment request. The Redeveloper shall submit such
other documentation as the City may require relative to costs of the Work.
B. Payment requests may be submitted no more than monthly and shall be submitted
on or before the first day ofthe month.
C. Upon the City's receipt of funds from Met Council, the City shall pay the
Redeveloper or the contractor designated by Redeveloper all amounts due under any payment
request(s) that have been submitted to the City, provided (i) Redeveloper is not in default
hereunder and (ii) there has not occurred any change which, in the reasonable judgment of the
City, materially adversely affects the prospects for the timely and satisfactory completion of the
Work within the Budget.
6. Indemnitv: Repayment to City Redeveloper hereby releases and agrees to
indemnify, defend and hold harmless the City, the Authority, their directors, officers, employees
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and agents, and their respective heirs, successors and assigns (collectively, the "Indemnified
Parties") from and against any and all claims, demands, judgments, penalties, liabilities, costs,
damages and expenses ("Liabilities"), directly or indirectly incurred by any of the Indemnified
Parties, arising from the subject matter of this Agreement, Redeveloper's default under this
Agreement and/or the performance or nonperformance of the Work. Redeveloper specifically
agrees that the Indemnified Parties shall have no responsibility for, and the foregoing indemnity
shall cover, Liabilities arising under environmental laws and regulations.
7. Costs and Expenses Redeveloper agrees to reimburse the City within fourteen
(14) days of demand by the City for all reasonable out-of-pocket expenses paid or/incurred by
thc City (including costs and fees and expenses of attorneys for the City) in connection with the
negotiation, preparation, approval, review, execution, delivery, amendment, modification,
interpretation, collection and enforcement of this Agreement. The obligation of Redeveloper
under this paragraph shall survive any termination of this Agreement.
8. Default; Remedies. If Redeveloper should default under this Agreement, then in
addition to any and all other rights and remedies available to the City under law, the City may
suspend or terminate its obligation to forward funds received pursuant to the Grant Agreement to
Redeveloper.
9. Notices All notices, requests and other communications hereunder shall be in
writing and shall be sent by manual delivery, telegram, telex, facsimile transmission, overnight
courier or United State's mail (postage prepaid) addressed to the recipient at the below address,
or at such other address as such party shall have specified to the other party hereto in writing. All
periods of notice shall be measured from the date of delivery thereof if manually delivered, from
the day of sending thereof if sent by telegram, telex or facsimile transmission, from the first
business day after the date of sending if sent by overnight courier, or from four days after the
date of mailing if mailed.
If to the City:
City of Hopkins
1010 First Street South
Hopkins, Minnesota 55343
If to Redeveloper:
Hopkins Mainstreet II, LLC
10 - 11 th Avenue South
Hopkins, MN 55343
(952) 930.0631 Fax
(952) 930,0630 Voice
10. Miscellaneous.
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A. Governing Law. All matters relating to the interpretation, construction,
validity and enforcement of this Agreement shall be governed by the laws of the State of
Minnesota.
B. Entire Agreement. This Agreement contains the entire agreement of the
parties relating to the subject matter hereof and supersedes all prior agreements and
understandings with respect to such subject matter, and the parties hereto have made no
agreements, representations or warranties relating to the subject matter of this Agreement
which are not set forth herein.
C. Amendments. No amendment or modification of this Agreement shall be
deemed effective unless made in writing and signed by the parties hereto.
D. No Waiver, No term or condition of this Agreement shall be deemed to
have been waived, nor shall there be any estoppel to enforce any provisions of this
Agreement, except by a statement in writing signed by the party against whom
enforcement of the waiver or estoppel is sought. Any written waiver shall not be deemed
a continuing waiver unless specifically stated, shall operate only as to the specific term or
condition waived and shall not constitute a waiver of such term or condition for the future
or as to any act other than that specifically waived.
E. Assignment. This Agreement shall not be assignable, in whole or in part,
by either party without the prior written consent of the other party.
F. Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, and such counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.
G. Severability. To the extent any provision of this Agreement shall be
invalid or unenforceable, it shall be considered deleted herefrom and the remainder of
such provision and of this Agreement shall be unaffected and shall continue in full force
and effect.
H, Exhibits; Captions and Headlines; Interpretation. Exhibit A hereto is
incorporated herein by reference. The captions and paragraph headings herein are for
convenience of reference only and shall not affect the construction or interpretation of
this Agreement. Should any provision of this Agreement require judicial interpretation, it
is agreed that the court interpreting or construing the same shall not apply a presumption
that the terms hereof shall be more strictly construed against one party by reason of the
rule of construction that a document is to be construed more strictly against thc party who
itself or through its agent prepared the same, it being agreed that the agents of both
parties have participated in the preparation hereof.
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1. Binding Effect. This Agreement shall be binding on and inure to the
benefit ofthe parties hereto and their respective successors and permitted assigns.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.
CITY OF HOPKINS, MINNESOTA
By:
By:
HOPKINS MAINSTREET II, LLC
By:
William H. Beard, Chief Manager & President
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EXHIBIT A
Grant Agreement
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EXHIBIT A
Grant Agreement
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Grant No. SG-02-174
METROPOLITAN LIVABLE COMMUNITIES ACT
TAX BASE REVITALIZATION ACCOUNT
GRANT AGREEMENT
THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Council")
and the city of Hopkins ("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 473.252 establish within the Metropolitan
Livable Communities Fund a Tax Base Revitalization Account and require the Council to use the
funds in the account to make grants to municipalities or development authorities for the cleanup of
polluted land in the seven-county metropolitan area; and
WHEREAS, the Grantee is a "municipality" as defined in Minnesota Statutes section 473.252,
subdivision 1 or a "development authority" as defined in Minnesota Statutes section 473.252,
subdivision 1 a and submitted an application for Tax Base Revitalization Account funds in response
to the Council's notice of availability of grant funds for the Fall 2002 grant cycle; and
WHEREAS, at its December 18, 2002 regular meeting, the Council awarded Tax Base
Revitalization Account grant funds to certain municipalities or development authorities which
submitted grant applications to the Council during the Fall 2002 grant cycle, including the Grantee.
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) "Cleanup Costs" or "Costs" mean:
(1) for hazardous waste contamination, the cost of implementing a Response Action Plan
approved by the Minnesota Pollution Control Agency under Minnesota Statutes section
115B.175, subdivision 3; or
(2) for asbestos contamination, the cost of implementing an Asbestos Abatement Plan for the
Site which is carried out by contractors or subcontractors licensed or certified by the
Commissioner of Health under the Minnesota Asbestos Abatement Act, Minnesota
Statutes sections 326.70 to 326.81, in accordance with rules prescribed by the
Commissioner of Health related to asbestos abatement and asbestos management
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activity, and meeting the federal Asbestos Hazard Emergency Response Act ("AHERA")
standards for asbestos; or
(3) for petroleum contamination, the cost of implementing a Corrective Action Plan for the
Site approved by the Minnesota Pollution Control Agency under Minnesota Statutes,
chapter 115C.
(b) "Development Authority" means a statutory or home rule charter city, housing and
redevelopment authority, economic development authority, or a port authority in. the
Metropolitan Area.
(c) "Metropolitan Area" means the seven-county metropolitan area as defined by Minnesota
Statutes section 473.121, subdivision 2.
(d) "Municipality" means a statutory or home rule charter city or town participating in the Local
Housing Incentives Program under Minnesota Statutes section 473.254, or a county in the
Metropolitan Area.
(e) "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.
(t) "Project Costs" means all costs as defined in Minnesota Statutes section 116J .552, subdivision 7.
(g) "Site" means the land proposed by the Grantee to be cleaned up and located both within the
Metropolitan Area and within the jurisdiction of the Grantee.
II. GRANT FUNDS
2.01 Total Grant Amount. The Council will grant to the Grantee a total sum of $579,528.00
which shall be funds from the Tax Base Revitalization 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 Tax Base Revitalization 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 Cleanup Costs for the cleanup of polluted land in the
Metropolitan Area as described in the Grantee's application for Tax Base Revitalization Account
grant funds (the Site). A summary of the project described in the Grantee's application is attached
to and incorporated into this agreement as Attachment A. Grant funds must be used for cleanup of
the Site which must be located in a Participating Municipality. If consistent with its application, the
Grantee may use the grant funds to provide a portion of the local match requirement for Project
Costs that qualify for a grant under Minnesota Statutes sections 116J.551 to 116J.557. 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; and any interest earnings
described in paragraph 2.04 which are not used for the purposes of implementing the project
activities described in Attachment A. The Grantee agrees to comply with any "business subsidy"
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requirements of Minnesota Statutes sections 1161.993 to 116J.995 that apply to the Grantee's
expenditures or uses of the grant funds.
2.03 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. The written disbursement request must include a statement indicating the Grantee's
expectation to complete the cleanup and redevelopment consistent with the Council's approved
project description or, if applicable, any amended project description approved by the Council's
authorized agent.
2.04 Interest Earnings. 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.
2.05 Effect of Grant. Issuance of this grant neither implies any Council responsibility for the
contamination at the Site nor imposes any obligation on the Council to participate in the cleanup of
the Site contamination or in the Cleanup Costs beyond the amount of this grant.
III. ACCOUNTING, AUDIT AND REPORT REQUIREMENTS
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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 5.01
and 5.02, 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
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. The Grantee must
report to the Council any significant changes in redevelopment plans that occur either prior to the
termination of this grant agreement or during the reporting period identified in Attachment C.
3.04 Certification of Completion. Upon completion of Site cleanup, the Grantee will provide to
the Council:
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(a) for hazardous waste contamination, a copy of a Certificate of Completion for the Site issued
by the Minnesota Pollution Control Agency pursuant to Minnesota Statutes, section 115B.175;
or
(b) for asbestos contamination, a copy of a statement from the Grantee's licensed Asbestos
Abatement Contractor that the Asbestos Abatement Plan for the Site has been completed in
accordance with the rules of the Minnesota Department of Health; or
(c) for petroleum contamination, a copy of a Site Closure Letter issued by the Minnesota
Pollution Control Agency pursuant to Minnesota Statutes chapter 115C.
IV. RECOVERY AND REPAYMENT
4.01 Recovery of Funds. If" the Grantee recovers funds pursuant to an action under Minnesota
Statutes section 115B.04, or other law, to recover the reasonable and necessary Project Costs
incurred to cleanup the Site, the Grantee shall repay to the Council that portion of the grant as
provided in paragraph 4.04.
4.02 Assignment of Rights. Upon request of the Council, the Grantee shall assign its right to
recover the funds described in paragraph 4.01 to the Council, shall prepare and submit a
certification of the Project Costs incurred, and shall cooperate in any cost recovery action brought
by the Council.
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4.03 Expenses of Recovery. The reasonable litigation expenses or other costs of legal or technical
assistance incurred by the Grantee, the Council, or both, may be deducted from recovery obtained in
accordance with paragraphs 4.01 or 4.02 and reimbursed to the entity incurring such costs before
proceeds of the recovery are distributed in accordance with paragraph 4.04.
4.04 Reimbursement. Subject to the deduction provided in paragraph 4.03, amounts recovered
either by the Grantee or the Council from responsible persons and all other amounts otherwise
received by the Grantee or the Council for cleanup of the Site shall be used to reimburse the
Grantee, the Council, or any other non-responsible party who contributed funds for cleanup of the
Site in proportion to their respective payments for response costs.
4.05 Survival of Section. The provisions of Section N (RECOVERY AND REPAYMENT) shall
survive the expiration or termination of this agreement.
V. AGREEMENT TERM
5.01 Term. This agreement is effective upon execution of the agreement by the Council. Unless
terminated pursuant to paragraph 5.02 or extended by written request and confirmation pursuant to
this paragraph, this agreement will terminate December 31, 2005. The term of this agreement may
be extended for a reasonable amount of time if, at least thirty (30) days prior to the termination date,
the Grantee's authorized agent or representative submits a written extension request which states the
purpose of the extension, identifies a new completion date and describes in reasonable detail any
proposed changes to the project activities and budget. An extension shall be effective only upon
receipt of a written confirmation from the Council's authorized agent. Upon termination of this
agreement, the Grantee must submit the annual written reports described in Attachment C.
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5.02 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, and includes failure to make reasonable and
timely progress in performing and completing the project activities described in Attachment A. The
Grantee shall have the right to cure any and all defaults during the fourteen-day notice period
without incurring penalty. 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, to the extent such grant funds were
not used in accordance with this agreement.
5.03 Amendments. The Council and the Grantee may amend this agreement by mutual agreement.
Except for a term extension pursuant to paragraph 5.01, 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.
VI. GENERAL PROVISIONS
6.01 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.
6.02 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.
6.03 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 cleanup work funded in part 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
D.S.C. sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976
(RCRA) as amended, 42 D.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 .
6.04 Acknowledgments. The Grantee shall acknowledge the financial assistance provided by the
Council in promotional materials, press releases, reports and publications relating to the project
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activities described in Attachment A which are fundedjn 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 alternative language approved by the Council's authorized
agent, is included on all signs located at project or construction sites that identify project sponsors
or entities providing financial support for the project.
6.05 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.
6.06 Contractors and Subcontractors. The Grantee shall include in any contract or subcontract
for project activities related to the cleanup of polluted land 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, especially the federal Hazardous Waste Operations and Emergency Response standards
under title 29, Code of Federal Regulations, sections 1910.120 and 1926.65.
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6.07 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.
6.08 Attachments. The following are attached to this agreement and are incorporated into and
made a part of this agreement:
(a) Attachment A - A summary of the project activity and budget provisions of the Grantee's
application for Tax Base Revitalization Account grant funds
(b) Attachment B - Grant Fund Disbursement Schedule
(c) Attachment C - Written Report Submission Schedule
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6.09 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.
Page 6 of 7 Pages
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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.
A~:
Assistant eral Co~nse]
METROPOLITAN COUNCIL
By
Date ~. \"3 -c:>
By
Mayor
Date ~-l 8'"--0:3
SG02BO
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09/02
By
Steven C. Mielke, City Manager
Date ~-I g- - (j:3
Page 7 of 7 Pages
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ATTACHMENT A
APPLICATION FOR TAX BASE REVITALIZATION ACCOUNT GRANT FUNDS
This attachment comprises this page and page A -1 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 for the Fall 2002 grant cycle, The summary reflects the
Grantee's proposed project as approved by the Council on December 18, 2002, 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 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 terms, descriptions and dollar amounts contained this grant agreement and
the project summary contained on page A-1 shall prevail.
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Hopkins - Excelsior Tech Center
Increase in net tax capacity
Acres cleaned
New jobs
Average hourly wage
Private redevelopment leverage
Eligible funding request
$ 306,648
18
228
$ 16.50
$12,105,000
TBRA $ 579,528
Hopkins seeks a TBRA grant to remove asbestos and hazardous materials from the fonner 18-acre Alliant
Techsystems property with addresses at 600 2nd St., 139 and 149 Jackson Ave. N., and 215 and 208 VanBuren
Ave. N. Honeywell purchased a sugar beet warehouse here in the mid-1950's and converted it into a defense
plant. Alliant used it for defense production, research and a corporate office until vacating it in 2001. The
AlIiant sale price includes indemnification from liability for site contamination. Asbestos is present in walls and
floor coverings as well as on pipes throughout the complex.
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The city and the Beard Group designed a Smart Growth redevelopment strategy for the site consistent with the
"East End Study Area" project the Metropolitan Council provided partial funding for as a comprehensive
planning grant. A Planned Unit Development permitting higher residential density than previously planned in
conjunction with a mixed use business center was approved without TIP financing. The redevelopment includes
66 single-family homes and townhomes at an average price of about $255,000 plus 320,000 square feet of class
"B" office space for mixed-use office, warehouse/production, and climate controlled storage. The Alliant
building will be scaled down from 550,000 square feet for the business center. The building fayade will be
redone along with landscaping improvements at the street comers. More than 40% of the space has been leased.
The residential area will feature homes by Ryland Homes with front porches, alley garage access and bike trail
convenience. Ryland has purchased this land and has sale commitments for and has begun constructing a third
of the planned homes. Cleanup cost at 5 percent of the anticipated private redevelopment expense is a
significant barrier to the reuse of this site.
Eligible project budget:
Asbestos survey & environmental overview
Demo pipe & fittings in open spaces and ceilings
Expose/remove/dispose asbestos carpet/tile/mastic
Remove/dispose transite paneling
Remove/dispose pipe and fitting insulation
Remove/dispose from interstitial spaces (within walls)
Total
$ 9,500
$ 110,561
$ 319,382
$ 2,530
$ 112,254
$ 25.301
$ 579,528
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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 Site cleanup activity funded by this
agreement, the contractor(s)/vendor(s) to be paid, and the time period within which
the cleanup work was or will be performed. Disbursements prior to the performance
of cleanup activities will be subject to terms and conditions mutually agreed to by
the Council's authorized agent and the Grantee. Cleanup work performed in
different seasonal or construction activity time periods should be aggregated in
separate disbursement requests. 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 two (2) weeks after receipt of a written
disbursement request.
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ATTACHMENT C
WRITTEN REPORTS AND SUBMISSION SCHEDULE
By March 1 of the year following the termination of this grant agreement and by March 1 of each of
the succeeding four (4) years, the Grantee must submit to the Council an annual written report that:
1. Outlines the redevelopment activities completed on the Site during the previous
calendar year; and
2. Identifies the net tax capacity of the Site as indicated by the city or county assessor
for the current year; and
3. Identifies the part-time and full-time jobs created as a result of redeveloping the
cleaned up Site, including a list of the net jobs as of the end of the previous calendar
year and the percentage of new jobs in the following hourly rate categories:
Less than $8.49
Between $8.50 and $10.49
Between $10.50 and $12.50
More than $12.50
These reporting requirements shall survive the expiration or termination of this grant 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