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HomeMy WebLinkAbout15.D.4. Metropolitan Livable Communities Act Grant Agreement CITY OF SHAKOPEE /~-. O. <I, Memorandum CONSEr~T CASE NO.: N.A. TO: Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Approval of METRO PO LIT AN LN ABLE COMMUNITIES ACT LOCAL HOU~ING INCENTNES ACCOUNT Grant Agreement MEETING DATE: March 4, 2003 INTRODUCTION: On November 13, 2002, the Metropolitan Council awarded a Housing Incentives Account Grant to the City of Shako pee in the amount of $200,000.00 for the second and final phase of Boulder Ridge Town Homes. Completion of the second phase has been a desired outcome for the surrounding neighborhood, and this funding (along with other) will allow its completion. This is the second such grant the City has received in the last few years; the first was for Evergreen Town Homes on Vierling Drive. While the City is the formal grant recipient, it acts as a "pass-through" for the funds. Attached for the Council's information is a copy of the grant agreement that is to be executed with the Metropolitan Council ALTERNATIVES: 1. Authorize the appropriate officials to execute Grant Agreement No. SC-02-153 with the Metropolitan CounciL 2. Do not authorize the appropriate officials to execute Grant Agreement No. SC-02-153 with the Metropolitan CounciL 3. Table the matter for further information. STAFF RECOMMENDATION. Staff recommends Alternative No. l. ACTIONS REQUESTED: Offer and pass a motion authorizing the appropriate officials to execute Grant Agreement No. SC-02-153 with the Metropolitan Council for Housing Incentive Account funds for the second phase of Boulder Ridge Town Homes. ~d;~~ R. Michael Leek Community Development Director G: \CC\2003 \03 -04\bldrridgegrant.doc Grant No. SG-02-153 METROPOLITAN LIVABLE COMMUNITIES ACT LOCAL HOUSING INCENTIVES ACCOUNT GRANT AGREEMENT THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Council") and the City of Shakopee ("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 473.254 establish within the Metropolitan Livable Communities Fund a Local Housing Incentives Account and require the Council to annually distribute funds in the account to participating municipalities that have not met their affordable and life-cycle housing goals, as determined by the Council, and are actively funding projects designed to help meet the goals, or to development authorities for projects located in eligible municipalities; and WHEREAS, the Grantee is a "municipality" as defined in Minnesota Statutes section 473.254, subdivision 6 which has negotiated affordable and life-cycle housing goals pursuant to Minnesota Statutes section 473.254, subdivision 2 and has elected to participate in the Local Housing Incentives Account program, or is a "development authority" as defined in Minnesota Statutes section 473.254, subdivision 6; and WHEREAS, the municipality within which the project is located has not yet met its affordable and life-cycle housing goals as determined by the Council and is actively funding projects designed to help meet the goals; and WHEREAS, the Grantee agrees to provide the grant funds made available under this agreement to help fund a project identified in an application for affordable housing funds submitted in response to a Request for Proposals issued in July 2002 by the Metropolitan Housing Implementation Group; and WHEREAS, at its November 13, 2002 regular meeting, the Council awarded Local Housing Incentives Account funds to certain municipalities or development authorities that submitted grant applications in response to the July 2002 Request for Proposals, 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: Page 1 of 7 Pages (Jf 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) "Developlnent Authority" means a housing and redevelopment authority, economic development authority, or port authority. (b) "Metropolitan Area" means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. (c) "Municipality" means a statutory or home rule charter city or town in the Metropolitan Area. (d) "Participating Municipality" means a Mu.nicipality electing to participate in the Local Housing Incentives Account program under Minnesota Statutess~ction 473.254. II. GRANT FUNDS 2.01 Total Grant Amount. The Council will grant to the Grantee a total sum of $200,000.00 which shall be funds from the Local Housing Incentives 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 Local Housing Incentives Account funds made available to the Council, or any reduction or termination of the dollar-for-dollar match amount required under paragraph 2.02, may result in a like reduction to the Grantee. 2.02 Match Requirement. Pursuant to Minnesota Statutes section 473.254, subdivision 6, the Grantee shall match on a dollar-for-dollar basis the total grant amount received from the Council under paragraph 2.01. The source and amount of the dollar-for-dollar match shall be identified by the Grantee in the report(s) required under paragraph 3.03. 2.03 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 application for Local Housing Incentives Account funds. A copy of the project summary that identifies eligible uses of the grant funds and was approved by the Council is attached to and incorporated into this agreement as Attachment A. Grant funds must be used for purposes consistent with Minnesota Statutes section 473.25(a), in a Participating Municipality. Grant funds must be used for costs directly associated with the specific proposed activities and are intended to be used for "hard costs" rather than "soft costs" such as: administrative overhead; activities prior to the start of the grant project; travel expenses; legal fees; permits, licenses or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. If consistent with the application and the project summary in Attachment A, 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 performance of the project activities described in Attachment A. The Grantee Page 2 of 7 Pages tV 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; any grant funds that are not matched on a dollar-for-dollar basis as required by paragraph 2.02; any interest earnings described in paragraph 2.06 that are not used for the purposes of implementing the project activities described in Attachment A; and any "revolved" funds described in paragraph 2.06 that are not used by the Grantee to implement affordable and life-cycle housing initiatives pursuant to paragraph 2.06. 2.04 Budget Variance. A variance of ten percent (10%) in the amounts allocated to various eligible uses identified in 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. 2.05 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. 2.06 Interest Earnings and Revolved Funds. 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. If the Grantee uses 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 Minnesota Statutes sections 473.25 and 473.254; or (b) return 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 revol ved funds. 2.07 Effect 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. 2.08 Resale Limitations. The Grantee is required to impose resale limitations regarding the disposition of any equity realized by the purchasers of "affordable" units if Minnesota Housing Finance Agency ("MHFA") funds and grant funds received from the Council under this agreement are used for gap financing in the project described in Attachment A. The intent of this resale limitation is to protect the public investment in the project and ensure that a proportion of the affordability gap provided by the public investment in the form of MHFA funds or grant funds received from the Council under this agreement is recaptured for reuse in conjunction with other affordable housing efforts and does not become a windfall for any purchaser who might sell the home within a predetermined and agreed upon time period of ownership. An equitable proportion of the affordability gap filled by MHFA funds and grant funds received from the Council under this agreement must be returned to the granting agency if a purchaser sells the "affordable" home within a certain time frame. The length of the ownership time period and the proportion of the affordability Page 3 of 7 Pages if gap to be recovered will be agreed upon by the Grantee, the MHFA and the Council so that the MHFA funds and the grant funds received from the Council under this agreement may be recycled to support additional affordable housing opportunities. 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. The Grantee also will keep proper finaftoial records and other appropriate documents sufficient to evidence the nature and expenditure of the dollar-for-dollar match funds required under paragraph 2.02. 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, the expenditures of the grant funds, and the source and expenditure of the dollar-for-dollar match funds required under paragraph 2.02. 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 terminated pursuant to paragraph 4.02, this agreement expires December 31, 2003. 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 Page 4 of 7 Pages rJf 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. 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 civWrights commission, disability, sexual orientation or age and will 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. 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. Subject to the limitations provided in Minnesota Statutes chapter 466, 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 conduct or implementation of the project activities funded by this grant, except to the extent the claims, damages, losses and expenses arise from the Council's own negligence. 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 US.C. sections 6901 et seq. This obligation shan 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. Page 5 of 7 Pages oed 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. 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 shaU 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 Requ.irements. If any grant funds are used for urban. site redevelopment, the Grantee shall at such redevelopment site meet or require to be met: (a) aU 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 aU 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. 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 project activity and budget provisions of the application for Local Housing Incentives Account funds (b) Attachment B - Grant Fund Disbursement Schedule (c) Attachment C - Written Report Submission Schedule 5.09 Warranty of Legal Capacity. The individuals signing this agreement on behalf of the Grantee and on behalf of the Council represent and warrant on the Grantee's and the Council's behalf respectively that the individuals are duly authorized to execute this agreement on the Grantee's and the Council's behalf respectively and that this agreement constitutes the Grantee's and the Council's valid, binding and enforceable agreements. Page 6 of 7 Pages a1d 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 when both parties have finally executed this document. Approved as to form: METROPOLITAN COUNCIL By Associate General Counsel Elizabeth J. Ryan, Director Housing and Livable Communities Date ,~.... CITY OF SHAKOPEE -~ By Mark McNeill, City Administrator Date SG02153 Me 01/03 Page 7017 Pages m ATTACHMENT A APPLICATION FOR LOCAL HOUSING INCENTIVES ACCOUNT FUNDS This attachment comprises this page and page A-I and contains a summary of the project identified in the application for Local Housing Incentives Account grant funds submitted in response to a Request for Proposals issued in July 2002 by the Metropolitan Housing Implementation Group. The summary reflects the Grantee's proposed project as approved by the Council on November l3, 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 application is incorporated into this grant agreement by reference and is made a part of this grant agreement as follows. If the application or any provision in the 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 in this grant agreement and the project summary contained on page A-I shall prevail. (>;0 Shakopee - Boulder Ridge Townhomes Phase II LHIA Award: $200,000 This proposal is for the new construction of 22 townhomes, with one four-bedroom and 21 three-bedroom units, The 2.6 acre site is located on the south end of the city. Scott County and city of Shakopee have seen significant job growth in the area due to the Valley Green Business Park which is the largest planned business park in the metro area. These units will help address the housing needs of the local work force. Phase I ofthis project is fully leased and has a waiting list. Five ofthe units will be project-based Section 8 units through the Scott County BRA, 13 units will be affordable to households at 50 percent of median income, one unit will be affordable to a household at 57 percent of median income, and three will be market rate units. City of Shako pee - Boulder Ridge Townhomes Total Development Cost Recommended Other MHIG Funding Number Proposed LHIA Award Sources This Cvcle of Units Rents $3,330,434 $200,000 $39,022 - MHF A 22 3BR - $996 $4BR - $1,112 U:\\VORD\LCA 'fallhousinglhia.do.c A - 1 I/Jt 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 terms and conditions mutually agreed to by the Council's authorized agent and the Grantee. Individual disbursement requests should specify 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 two (2) weeks after receipt of a written disbursement request. ~ ATTACHMENT C WRITTEN REPORTS AND SUBMISSION SCHEDULE Beginning three (3) months after the Grantee initially receives grant funds, the Grantee shall submit to the Council written quarterly reports which shall contain at least the following elements: . A summary description of the grant funds received and expended to date, including a description of the purposes or uses for which the grant funds were expended, and an itemized list of all project costs and sources of funds used to cover the project costs. . A summary of the required dollar-for-dollar match funds expended to date. The summary must identify the source and amount of the match funds required under paragraph 2.02 of this contract and describe the purposes or uses for which the match funds were expended. . A statement identifying expected grant and match 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 must: include a summary description of the project assisted with the grant funds; contain a certification by the Grantee's chief financial officer that all grant funds and match funds have been expended in accordance with this agreement and the provisions of the Metropolitan Livable Communities Act; identify the final number of households served by the project; identify the final number of unit sizes and rent ranges; and include a statement describing in reasonable detail how the project helped the Participating Municipality within which the project is located meet the negotiated affordable and life-cycle housing goals established with the Council. 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 Local Housing Incentives Account program. The contents, format and completion date of the Monitoring and Evaluation Report will be determined by the Council. This reporting requirement and the reporting requirement of paragraph 2.06 shall survive the termination or expiration of this agreement. AUTHORIZED AGENT The Council's authorized agent for the purposes of administering this agreement is Terry Kayser 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-l634 fJf