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IV.2. Resolution Identifying the Need for Livable Communities Demonstration Account Funding and Authorizing Application for Grant Funds for Footprint Development; Needham CITY OF HOPKINS City Council Report 2025-048 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Revée Needham, Community Development Manager Date: April 1, 2025 Subject: Resolution of Support for LCDA Grant Application for Footprint Development _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve Resolution 2025-020 supporting an application for Footprint Development LLC to the Metropolitan Council’s Pre-Development grant program. OVERVIEW To apply to the Metropolitan Council’s Pre-Development grant program, the City Council needs to approve a resolution of support. Pre-Development Grant Program Pre-development grants are for teams who are defining or redefining a project that will support Livable Communities and Imagine 2050 goals. Eligible costs are for early-stage activities like design workshops, financial studies, project impact analyses, and community engagement. Pre-Development Goals: • Add new housing types and create affordable housing. Priority for projects with deep affordability and/or serving populations who have barriers to finding housing • Create or preserve long-term living wage jobs or support economic opportunity for people experiencing the most economic hardships • Increase density on the site and make it easier for people to travel between housing, jobs, services, and amenities • Minimize climate impact by reducing greenhouse gas emissions and conserving natural resources • Further equity outcomes by fostering regional connections, mitigating climate impacts and implicit bias, removing barriers to access affordable housing, creating living wage jobs, and supporting the creation of small businesses owned and operated by a historically marginalized population Approximately $2,000,000 is available in funding for 2025 across two rounds, with a limit of $300,000 per City each round. A resolution of support is required to submit an application. Developers cannot apply directly to the Metropolitan Council for funding, the City must apply on behalf of developers. The Metropolitan Council awards grant funds to cities, who then administer the funds to the subrecipient. Planning & Economic Development City of Hopkins Application Footprint Development has proposed a development project on City-owned property on Mainstreet. As part of the Pre-Development Agreement, the City agreed to support an application to the Metropolitan Council’s Pre-Development grant program. If the grant were awarded to the City of Hopkins, the City would enter into a subrecipient grant agreement with Footprint Development. Supporting the application to the Pre-Development grant program does not commit the City to grant land use approvals nor to sell the property. SUPPORTING INFORMATION • Resolution 2025-020 • Hyperlink to Met Council Pre-Development Grant Webpage CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2025-020 RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS FOR FOOTPRINT DEVELOPMENT WHEREAS, the City of Hopkins is a participant in the Livable Communities Act’s Local Housing Incentives Account Program for 2025 as determined by the Metropolitan Council, and is therefore eligible to apply for Livable Communities Demonstration Account funds; and WHEREAS, the City has identified a proposed project within the City that meets the Demonstration Account’s purposes and criteria and is consistent with and promotes the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Council’s adopted metropolitan development guide; and WHEREAS, the City has the institutional, managerial and financial capability to ensure adequate project administration; and, WHEREAS, Footprint Development LLC has requested that the City sponsor an application for Livable Communities Demonstration Account for its Sustainable Missing Middle Housing project in the City of Hopkins; and, WHEREAS, the City certifies that it will comply with all applicable laws and regulations as stated in the grant agreement; and, WHEREAS, the City agrees to act as a legal sponsor the project contained in the grant application submitted on or before April 21, 2025; and, WHEREAS, the City acknowledges Livable Communities Demonstration Account grants are intended to fund projects or project components that can serve as models, examples or prototypes for development or redevelopment projects elsewhere in the region, and therefore represents that the proposed project or key components of the proposed project can be replicated in other metropolitan-area communities; and, WHEREAS, only a limited amount of grant funding is available through the Metropolitan Council’s Livable Communities Demonstration Account during each funding cycle and the Metropolitan Council has determined it is appropriate to allocate those scarce grant funds only to eligible projects that would not occur without the availability of Demonstration Account grant funding; and, NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins after appropriate examination and due consideration, hereby: 1. Finds that it is in the best interests of the City’s development goals and priorities for the proposed project to occur at this particular site and at this particular time. 2. Finds that the project components for which Livable Communities Demonstration Account funding is sought: a. Will not occur solely through private or other public investment within the reasonably foreseeable future; and b. Will occur within three years after a grand award only if Livable Communities Demonstration Account funding is made available for this project at this time. 3. Represents that Footprint Development LLC has undertaken reasonable and good faith efforts to procure funding for the project components for which Livable Communities Demonstration Account funding is sought but was not able to find or secure from other sources funding that is necessary for project component completion within three years. 4. Authorizes its City Manager or designee to submit on behalf of the City and Footprint Development LLC an application for Metropolitan Council Livable Communities Demonstration Account grant funds for the project component(s) identified in the application, and authorizes the Mayor and City Manager to execute such agreements as may be necessary to implement the project on behalf of the City. Adopted by the City Council of the City of Hopkins this 1st day of April, 2025. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk