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HomeMy WebLinkAboutItem 06.k"P[1WaAkLA'"T April 4, 2014 Item No. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (CDA) REDEVELOPMENT INCENTIVE GRANT AGREEMENT April 7, 2014 Council Meeting Proposed Action Staff recommends adoption of the following motion: Move to approve a grant ant agreement with the Dakota County CDA for a Redevelopment Incentive Grant Program Application in the amount of $188.000 and authorize the City Administrator to approve an Addendum the current Joint Powers Agreement with the CDA to include the Holyoke Avenue Parking Lot Improvements and to prepare plans and specifications. Passage of this motion will result in the City receiving a Dakota County CDA Redevelopment Incentive Grant (RIG) in the amount of $188,000 for improvements to the City -owned public parking lots adjacent to Howland Avenue and Pioneer Plaza and along Holyoke Avenue adjacent to the Art Center. Overview The City Council authorized the submittal of this grant application at the January 6, 2014 meeting. The City Council had previously approved a Joint Powers Agreement for the improvement of the public parking lot adjacent to Pioneer Plaza and Howland Avenue. Staff also discussed with the City Council in 2013 possible streetscape improvements to the City -owned parking lot on Holyoke Avenue adjacent to the Art Center. The estimated construction cost of this project has been reduced to $75,000. The total cost for both projects is $566,830 which includes engineering, legal, property acquisition, construction and contingency. The Downtown Development Guide approved by the City Council in 2006 identified the establishment of a public parking system in Downtown as an action to be pursued by the City. The construction of Market Plaza in 2007 was the first public parking project completed. This project was also funded with CDA TIF funds and a RIG funds. The proposed RIG grant will fund one-third of one or both of the proposed parking improvement projects in the Downtown. This grant funding will free up CDA TIF funds to be used for other eligible projects in the future. Staff recommends approval of the grant agreement. Primary Issues to Consider • What is the breakdown on how CDA TIF funds and CDA RIG funds would be utilized for both parking lot projects. (See Attachment A) Supporting Information • Redev ent In ve Grant Agreement with the Dakota County CDA. David L. Olson Community & Economic Development Director Financial Impact: $ $188.000 Budgeted: Y/N N Source: CDA RIG Grant Attachment A Below is a table that illustrates a breakdown of the proposed allocation of both CDA Tax Increment (TIF) funds as well as CDA Redevelopment Incentive Grant (RIG) funds for the proposed Downtown parking lot improvement projects. As the table illustrates, securing RIG funds would allow the City to leverage CDA TIF funds further for possible future projects. It is the same funding formula that was used to construct Market Plaza five years ago, and allows for all of these projects to be completed without the use City property tax dollars. The RIG program is a competitive grant program administered by the CDA and has only one funding cycle at the beginning of the year. The next opportunity to apply for RIG funds would be January of 2015. 2014 RIG Application RIG (1/3) CDA TIF (2/3) TOTAL Downtown Parking Lot Reconstruction & Sidewalk Property Acquired 92,000 92,000 Legal 10,000 10,000 Engineering/ esin 23,870 23,870 Construction 157,355 193,605 350,960 Total Project Cost $157,355 $319,475 $476,830 Holyoke Ave Parking Lot Streetscape Improvements Construction 25,265 50,535 75,800 Eng./Design/Contingency 4,735 9,475 14,200 Total Project Cost $30,000 $60,000 $90,000 Overall Cost for Both Projects $187,355 $379,475 $566,830 Should the Council elect to only pursue grant funds for one of the parking lot projects, the RIG application can be adjusted accordingly. www.downtownlakeville.com December 2, 2014 Downtown Lakeville Business Association P.O. Box 371 • Lakeville, MN 55044 952-985-0517 Mayor Matt little & Council Members City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Re: Redevelopment Incentive Grant Application Holyoke Avenue Parking Lot Improvements Dear Mayor Little & Council Members: On behalf of the DLBA I am writing to request that you consider approval of the request to apply for a Redevelopment Incentive Grant from the Dakota County CDA. The award of such grant will assist in the funding towards the Downtown Public Parking lot behind the Ben Franklin block and adjacent to Pioneer Plaza. In addition, the grant monies are proposed to be used to partially fund the cost of the Holyoke Avenue Public Parking lot adjacent to the Arts Center. The much needed improvements to this lot will upgrade the entryway for attendees coming to the Arts Center as well as to our summer Farmers' Markets, Pan-O-Prog and other events held at this site. These improvements will enhance the character and feel of our historic main street as well as accomplish goals set out in the 2006 Downtown Development Guide. I respectfully request that you approve both items before you on the January 6t' Council agenda. Thank you for your consideration. Sinter , Haglund, Presid Cc: City Administrator Steve Mielke Community & Economic Development Director David Olson - & Dakota County 1228 Town Centre Drive Eagan, MN 55123 ru Community Development PHONE 651-675-4400 TDD/m711 Agency IN CDA March 27, 2014 Mayor Matt Little City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 RE: Award and Grant Agreement for Dakota County CDA Redevelopment Incentive Grant, Lakeville Downtown Redevelopment Project Dear Mayor Little; On March 18, 2014, the Dakota County Community Development Agency (CDA) Board of Commissioners approved a Redevelopment Incentive Grant award to the City of Lakeville in the amount of $188,000 for the Downtown Redevelopment Project, specifically improvements to two public parking lots. Congratulations! The Redevelopment Incentive Grant (RIG) program assists Dakota County communities with their redevelopment needs. As such, it represents a significant commitment of local CDA resources, with $ 901,674 allocated in 2014 RIG funding. We would appreciate your direct feedback on the value of this program to your community and your honest opinion of its merits. Enclosed please find two Redevelopment Incentive Grant Agreements for the above referenced redevelopment project. Please sign both agreements on behalf of the City and return one original to Lisa Henning. Thank you for your interest in the Redevelopment Incentive Grant program. We look forward to working with you on this project. Sincerely, f� V � U — Mark Ulfers Executive Director cc: Paul J. Krause, Dakota County Commissioner/CDA Commissioner Steve Mielke, Lakeville City Administrator Dave Olson, Lakeville Community and Economic Development Director Lisa Henning, CDA Asst. Director of Community & Economic Development DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REDEVELOPMENT INCENTIVE GRANT PROGRAM GRANT AGREEMENT THIS GRANT AGREEMENT entered into this 27th day of March, 2014, by and between the Dakota County Community Development Agency, a public body corporate and politic (the "Agency"), and the City of Lakeville, a political subdivision of the State of Minnesota (the "Grantee"). WHEREAS, pursuant to Resolution No. 06-4092 the Agency established the Redevelopment Incentive Grant Program (the "Program") to improve the tax base and quality of life in Dakota County by assisting municipal redevelopment efforts and promoting the development of affordable housing; and WHEREAS, the activities to be undertaken under the Program are all activities that the Agency could undertake directly pursuant to Minnesota Statutes, §§469.001 to 469.047 and 469.090 to 469.1082; and WHEREAS, this Agreement shall constitute a cooperation agreement between the parties, as contemplated by Minnesota Statutes, §§469.041, clause (8) and 469.101, subdivisions 5 and 14; and WHEREAS, the Grantee submitted an application for a Redevelopment Incentive Grant (the "Application") in response to a request for proposals issued by the Agency and will use the grant funds made available under this Agreement to help fund the project identified in Attachment A (the "Project"); and WHEREAS, the Agency has concluded that the Grantee has the necessary expertise, skill and ability to successfully complete the Project and that the Project is in the best interests of the Agency and will positively contribute to meeting the goals of the Program; and WHEREAS, the Grantee is a municipality of Dakota County that is supportive of the Agency's mission and of the development of affordable housing; and WHEREAS, the Agency agrees to provide grant funds to the Grantee pursuant to the Program and Resolution No. 14-5352, subject to the terms, conditions, and clarifications hereof. NOW THEREFORE, in consideration of the mutual covenants and agreement contained herein, the Agency and the Grantee agree as follows: 1 ARTICLE 1: TERMS OF GRANT 1.01 Grant Amount: The Agency agrees to provide a grant to the Grantee in the amount of One Hundred Eighty -Eight Thousand Dollars ($188,000.00) (the "Grant") from the Program upon the terms and conditions and for the purposes set forth in this Agreement. 1.02 Match Requirement: The Grantee shall match the total Grant amount received from the Agency based upon the expenditure of two dollars ($2.00) of Grantee funds for each one dollar ($1.00) of Grant funding ("Matching Funds"). Such Matching Funds shall (a) constitute the actual expenditure of Grantee funds on the Project described in Attachment A and not "in kind" contributions and (b) be in balance at the time of each Grant disbursement pursuant to Section 1.06 hereof. The source and amount of Matching Funds shall be identified by the Grantee in each Reimbursement Request, as described in Section 1.06. 1.03 Use of Funds: The Grantee agrees to use the proceeds of the Grant solely for the purposes and activities described in Attachment A. A Project summary that identifies eligible uses of Grant proceeds, as approved by the Agency, is contained in Attachment A ("Eligible Uses"). Grant funds shall not be used for (a) construction costs, (b) soft costs related to the Project, (c) costs not included in the Application, (d) residential rehabilitation or house moving or (e) administration expenses. 1.04 Grant Term: The Project shall be completed in a timely manner and all Grant funds will be expended upon the later of (a) eighteen (18) months of the date of this Agreement or (b) September 30, 2015 (the "End Date"). 1.05 Term Extension: The End Date may be extended beyond the original End Date at the sole discretion of the Executive Director of the Agency. The Grantee must submit any extension request in writing at least thirty (30) calendar days prior to the End Date (a) stating the reason for the extension request, (b) providing a proposed new End Date and (c) describing in reasonable detail proposed changes to the Project activities and budget, if any. The End Date may be extended only once and the extension shall not exceed one (1) year beyond the original End Date. 1.06 Disbursement of Grant Funds: The Agency will disburse Grant funds in response to written reimbursement requests ("Reimbursement Requests") submitted to the Agency by the Grantee upon forms provided by the Agency and accompanied by (a) copies of bills and invoices from third parties for which Grantee seeks reimbursement and (b) proof of expenditure of Matching Funds in an amount at least equal to two times the amount of the Reimbursement Request. Subject to verification of the facts contained each Reimbursement Request and a determination of compliance with the terms of this Agreement, the Agency will . disburse the requested amount to the Grantee within fourteen (14) days after receipt of each Reimbursement Request. 2 1.07 Release of Unused Grant Funds: Upon the earlier of (a) Completion of the Project or (b) the End Date (the "Grant Release Date"), any Grant funds not previously disbursed to the Grantee for any reason shall be automatically released from the terms of this Agreement. ARTICLE 2: ACCOUNTING, AUDIT AND REPORTING REQUIREMENTS 2.01 Accounting and Records: The Grantee agrees to accurately and completely establish and maintain detailed accounts and records relating to the receipt and expenditure of all Grant funds received under this Agreement. Such accounts and records shall be kept and maintained by the Grantee for a period of six (6) years following the Grant Release Date. Such financial records shall sufficiently evidence the nature and expenditure of all Match Funds required. Accounting methods shall be in accordance with generally accepted accounting principles. 2.02 Audits: The accounts and records of the Grantee described in Section 2.01 shall be audited in the same manner as all other accounts and records of the Grantee and may, for a period of six (6) years following the Grant Release Date, be inspected on the Grantee's premises by the Agency or individuals or organizations designated by the Agency, upon reasonable notice thereof to the Grantee. The books, records, documents and accounting procedures relevant to this Agreement are subject to examination by the State Auditor in accordance with State law. 2.03 Report Requirements: The Grantee shall periodically report to the Agency regarding the status of Project activities and the expenditures of the Grant funds. Reports are due on each May 31" and November 301h during the Grant term, as defined in Section 1.04. A final report is due sixty (60) days following the Grant Release Date. This reporting requirement and all others required in this Agreement shall survive the termination or expiration of this Agreement. 2.04 Ap raisal: The Grantee represents that an appraisal has been or will be carried out to determine the fair market value of any real property to be acquired as a part of Project activities and that any purchase offer and price paid was made based on the appraised value. The Grantee further represents that such appraisal conforms to Uniform Standards of Professional Appraisal Practice (USPAP) requirements and was performed by a qualified appraiser licensed in the State of Minnesota. 2.05 Acquisition and Relocation: The Grantee represents that all Project activities comply with all aspects of Minnesota Statutes, § § 117.50 to 117.56 and the United States Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, if applicable. 2.06 Environmental Site Assessment: The Grantee represents that a Phase I Environmental Site Assessment or other environmental reviews have 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 3 have been or will be properly and adequately addressed. Issuance of this Grant neither implies any Agency responsibility for contamination, if any, at the Project site nor imposes any obligation on the Agency to participate in any pollution cleanup of the Project site if such cleanup is undertaken or required. 2.07 Public Bidding: The Grantee, in the expenditure of Grant funds, shall at all times comply with the requirements of Minnesota Statutes, §§469.015 and 471.345. ARTICLE 3: GRANTEE REPRESENTATIONS AND WARRANTIES 3.01 Authori : Grantee warrants that it is duly organized under applicable laws of the State of Minnesota and that it has authority to execute, deliver, and perform its obligations under this Agreement. 3.02 Use of Grant Funds: Grantee warrants that it shall use the proceeds of the Grant solely for Eligible Uses in accordance with Section 1.03 hereof. 3.03 Project Site Acknowledgements: The Grantee shall acknowledge the assistance provided by the Agency and Dakota County in promotional materials, press releases, reports and publications relating to the Project activities that are funded in whole or in part with the Grant funds. The acknowledgement should contain the following language: "Financing for this project was provided by the Dakota County CDA Redevelopment Incentive Grant Program and support from Dakota County". Until the Project is Completed, the Grantee shall ensure the above acknowledgement language, or alternative language approved by the Executive Director of the Agency, is included on all signs located at Project or construction sites that identify Project funding partners or entities providing financial support for the Project. 3.04 Assignment: Grantee shall not cause or permit any voluntary transfer, assignment, or other conveyance of this Agreement without the written consent of the Agency, which said consent may be withheld it the Agency's sole discretion. Any non - approved transfer, assignment or conveyance shall be void. 3.05 Indemnification: Grantee shall defend, hold harmless and indemnify the Agency and its elected and appointed officials, officers, agents and employees from and against all claims, liability, costs expenses, loss or damages of any nature whatsoever, including reasonable attorney's fees, arising out of or in any way connected with its failure to perform its covenants and obligations under this Agreement and any of its operations or activities related thereto, excluding the willful misconduct or the gross negligence of the person or entity seeking to be defended, indemnified, or held harmless. 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 Agency of any immunities or limits on liability provided by applicable State law. 4 ARTICLE IV: DEFAULT AND REMEDIES 4.01 Default Defined: The term "Default" shall mean, whenever it is used in this Agreement (a) any failure by the Grantee to substantially observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed hereunder or (b) any material breach of any representation set forth herein. 4.02 Remedies: Whenever a Default occurs, the Agency may immediately, without notice, suspend its performance under this Agreement. After providing thirty (30) days written notice to Grantee of a Default, but only if the alleged Default has not been cured within said thirty (30) days or, if the alleged Default cannot be cured within said thirty (30) days, within such time as is reasonably determined by the Agency as necessary to cure (assuming Grantee diligently pursues such cure), the Agency may (a) terminate this Agreement by written notice, upon which all non -disbursed Grant Funds shall be released, and/or (b) pursue whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to collect any amounts due under this Agreement or to enforce the performance and observance of any obligation, agreement, or covenant hereof. 4.03 No Remedy Exclusive: No remedy herein conferred upon or reserved to the Agency is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Agency to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as provided in Section 4.02. 4.05 No Additional Waiver Implied by One Waiver: In the event any agreement contained in this Agreement should be breached by the Grantee and thereafter waived by the Agency, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. ARTICLE 5: GENERAL PROVISIONS 5.01 Amendments: The Agency and the Grantee may amend this Agreement by mutual agreement and shall be effective only on the execution of written amendments signed by authorized representatives of the Agency and the Grantee. 5.02 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 local civil rights commission, disability, sexual orientation or age and will take affirmative action to insure applicants and employees are treated equally with respect to 5 all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.03 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. 5.04 Severability: If one or more provisions of this Agreement are found invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions shall not in any way be affected, prejudiced, disturbed or impaired thereby, and all other provisions of this Agreement shall remain in full force. 5.05 Time: Time is of the essence in the performance of the terms and conditions of this Agreement. 5.06 Contacts: Reimbursement Requests, written reports and correspondence submitted to the Agency pursuant to this Agreement shall be directed to: Dakota County CDA Attn: Assistant Director of Community & Economic Development 1228 Town Centre Drive Eagan, MN 55123 Any notice, demand, or other communication under the Agreement to the Grantee shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally to Grantee at: City of Lakeville Attn: Dave Olson, Community and Economic Development Director 20195 Holyoke Avenue Lakeville, MN 55044 or at such other address that Grantee may, from time to time, designate in writing. Mailed notices shall be deemed duly delivered two (2) business days after the date of mailing. 5.07 Warranty of Legal Capacity: The individuals signing this Agreement on behalf of the Grantee and on behalf of the Agency represent and warrant on the Grantee's and the Agency's behalf respectively that the individuals are duly authorized to execute this Agreement on the Grantee's and the Agency's behalf, respectively and that this Agreement constitutes the Grantee's and the Agency's valid, binding and enforceable agreements. 5.08 Counterparts: This Agreement may be executed in multiple counterparts, and all such executed counterparts shall constitute the same Agreement. It shall be necessary to R account for only one (1) such counterpart executed by each party hereto in proving the existence, validity or content of this Agreement. IN WITNESS WHEREOF, the Grantee and the Agency have caused this Agreement to be executed by their duly authorized representatives. This Agreement is effective on the date of final execution by the Agency. Agency: Th ota County Community Development Agency By: l4,JU Mark Ulfers, Executive Director Dated: % •'aS -\'4 7 Grantee: The City of Lakeville Its: Dated: ATTACHMENT A Project Name: Lakeville Downtown Redevelopment Project Location: Two public parking lots. One parking lot located along Howland Ave, south of 207'h St W. One parking lot located along Holyoke avenue and Upper 209'h St W. Redevelopment Project Description: Assist with improvements to two downtown public parking lots, including landscaping, reducing amount of impervious surfaces, and removing unsightly chain -linked fence. Project will also assist with installation of monument type signage to identify parking lots. ------------------ -- --- -------------- Project Activities: Budget: Construction of parking, sidewalks, and landscaping $426,760 improvements for both parking lots Property Acquisition $ 92,000 Eng/Design/Legal/Contingency ( $ 48,070 Funding Sources: ;Amounts: ------------- - - - -- --- --- - CDA TIF j $378,830 - -- - --- --------- - - -- ---- - - - CDA 2014 RIG - - --- - - $188,000 ---� - - G: