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CR 2012-082 MN Dept of Employment and Economic Devel. Redevelop. Grant Program-4m City of Hopkim August 6, 2012 Council Report 2012-082 MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) REDEVELOPMENT GRANT PROGRAM Proposed Action Staff recommends adoption of the following motion: Approve Resolution 2012-051, authorizing an application to DEED for redevelopment grant program funds for the 8th Avenue ramp rp oject. Overview The Redevelopment Grant Program was established by the 1998 legislature to assist with complex and costly redevelopment projects that might not occur without public financial assistance. The Redevelopment Grant Program applies only to sites where there was a past use and the need to "recycle" the land for a more productive use exists. The Redevelopment Grant Program can pay for the cost of land acquisition, stabilizing unstable soils when infill is required, demolition, infrastructure improvement, ponding or other environmental infrastructure. Currently the program is funded with $3 million of State Bond funds. State Bond Funds can only be used for eligible costs on publicly owned sites and the subsequent development must be publicly owned and serve a public purpose. This makes the program a good fit for the 8th Avenue ramp project, a proposed public parking structure that will concentrate downtown parking away from TOD priority sites. It is required that the applicant pay for at least one-half of the redevelopment costs as a local match to obtain a redevelopment grant. The match can come from any money available to the applicant. This requirement will be met by the use of $1,000,000 in Metropolitan Council and Hennepin County funds toward site acquisition. Primary Issues to Consider • What does the application consist of? • Why should Hopkins apply for DEED redevelopment grant project funding? Supporting Information • Resolution 2012-051 • 2012 DEED Redevelopment Grant Program application Tara Beard Community Development Coordinator Financial Impact: $ 0 Budgeted: Y/N Source: _PIR fund (501) Related Documents (CIP, ERP, etc.): Notes: Council Report 2012-082 Page 2 Analysis of Issues What does the application consist of? The application was due on August 1, 2012, and therefore has already been submitted (see attached). However, the grant application can be rescinded if decided by the City Council. The application focuses on the site's history and value, as well as existing conditions. The current and future uses of the site and a cost analysis of the proposed project are also requested. The public benefit of the project is described in the application as well. The focus is put on the need for a structured ramp to benefit the existing and future TOD planned for 8th Avenue South between the future LRT station and Mainstreet. There is also attention given to the existing parking stresses in downtown Hopkins and the need for additional parking options to increase the attractiveness of vacant commercial space downtown. Why should Hopkins apply for DEED redevelopment grant program funding? DEED redevelopment funds cannot be used for construction, but they can provide a significant source of funds for preliminary redevelopment activities such as demolition and infrastructure. Because the program is funded by state bond sales, any parking provided by the project must be available to the public on a regular basis. Staff has verified that this would mean that no monthly leases could be sold in the ramp. However, the funding is significant enough to warrant looking at alternative locations to meet that need. Construction funds for the project are being sought from the 2012 round of LCDA for TOD grant funds from Metropolitan Council and Supplemental TOD grant funds from Hennepin County. Additional funds may be sought from Hennepin County in the 2013 round of TOD grant applications. Alternatives The Council has the following alternatives: • Approve resolution 2012-051 as is • Deny resolution 2012-051 and rescind the application -4m CiCy of Hopkins CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2012-051 RESOLUTION AUTHORIZING AN APPLICATION FOR MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) REDEVELOPMENT FUNDS FOR 8TH AVENUE PARKING RAMP BE IT RESOLVED that City Council of the City of Hopkins, Minnesota act as the legal sponsor for the project contained in the Redevelopment Grant Program that was submitted on August 1, 2012; and that the City Manager is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Hopkins. BE IT FURTHER RESOLVED that the City of Hopkins has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED that the City of Hopkins has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, the City of Hopkins may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the City of Hopkins certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Mayor and the Clerk are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. I CERTIFY THAT the above resolution was adopted by the City Council Of Hopkins, Minnesota on August 6, 2012. SIGNED: WITNESSED: Eugene Maxwell Kristine A. Luedke Mayor Date: City Clerk Date: