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7.1 HRSR 11-03-2014 El REQUEST FOR ACTION River To ITEM NUMBER Housing and Redevelopment Authority 7.1 AGENDA SECTION MEETING DATE PREPARED BY General Business November 3, 2014 Jeremy Barnhart,Deputy Director, Community Operations and Development Director ITEM DESCRIPTION REVIEWED By Small Cities Development Program preliminary application authorization REVIEWED BY ACTION REQUESTED Authorize,by motion, the following items related to the Small Cities Development Program (SCDP) CMHP to make a pre-application for the grant in the amount of$635,000, HRA to pledge $100,000 toward the program. BACKGROUND/DISCUSSION Last year, the City completed a pre-application for a $575,000 Small Cities Development Program (SCDP) grant, to facilitate forgivable loans for rehabilitation of owner-occupied homes in the older part of the community. This grant program was to be administered by Central Minnesota Housing Partnership (CMHP) and the HRA's financial contribution was to be $50,000. This program is different from the $50,000 HRA rehabilitation loan program currently underway, also administered by CMHP. The grant funds a program that offers low interest and forgivable loans to owner occupied residential dwellings, and commercial properties. Potential grant Max Owner Grant Notes parameters loan contribution funds Owner occupied 20,000 10% 90% Forgivable after 7 years 50%of grant funds is forgivable after 10 years. 50%grant funds is 1%for 15 Commercial 37,500 30% 70% years The City did not receive that grant. Based on the information gained from the previous request, staff seeks authorization to reapply for 2015. Some of the comments received from last year's application are being addressed,including the suggestion to add commercial properties, and to reduce the study area. The suggested study area is generally the eastern half of the HRA loan program, and includes downtown development on both sides of US 10 and the railroad. Staff suggests an HRA contribution of$100,000. This is intended to demonstrate the City's importance in redevelopment and reinvestment, and supports the costlier commercial projects. In general, commercial projects are more visible, and often supply POWERED BY NATURE added interest in the program. Staff suggests that the final agreement includes a provision that 5 of the commercial projects come from the north side, and 5 from the south side, at least initially, to better distribute the benefit, and to compensate for the north side perhaps not being as organized as the south. This could be used to facilitate the assistance based on income desired by the HRA in last year's application. With authorization, CMHP will begin the grant writing process to meet the pre-application deadline of November 14, 2014. If the pre-application is approved, then the next step would be to complete a full application in early 2015. CMHP requires $600.00 for preparation and submission of the preliminary proposal. CMHP will be present to explain the grant process, typical structure, and guidelines of the grant. Financial Impact $100,000 from budgeted funds and cash reserves $600 for the application Attachments Target area Agreement dated October 29, 2014 ,.. Haan yr s Y *, _ �. ag: q L/ONST,P,ARK DRS r �� rr s r_ I El f --wi II ' +1i .". (/(rt�CiJ 7A4A/ slt 1 -'�• s i r *, c ' "" ..: `° . -1 a, ' :t x Elk °< � 7TTHSTNW k x River t LIONS PARK/LIONS PARK CENTER C ii.' • a • t n " �s 1 d' ,,.1715".r .. ., Legend• �' �� - , %p. `+ City Limits »� -� � ,, • ' 'v- .., m ❑ Urban Service Area iixt -, :� - C Parcels(8-20-2014) t ti ao Park Areas &y t1 p Fi �r0 a E'i' y"'d pi is'e4T.., : It I i ' egt1,-1 tt, "'. It:„4".,, aimpidL' t"' :GT.7 1. PO ., mod..: "a.. s i.. ■ r` _ rr N � >f w " . I -e- - 4TH ST NW 1, I, i 7 -t i j. 1 . .4414, :. :*':'''''''''k4iii:%?' . s ' •-.�" ! 7r fit,%'.^�il�kA� 1 y C1AL'l�{A/A/ • ~X 'T' .ilig K. - r _ ' ., I „-- , S _ i ,.. w O ' 5 r f ' +�wY ■ `�11p` • ►� "* 11/SS/Nt (0) `-sMO — — — Cr 1:41: ''I4 r‘' v % 141,111"110111a' MI 1 ' I 4 6 97W' �'� \' 's'=—19 SCDP focus area • �•0 �, ♦id ''' Disclaimer. Thsu drawing is neither a legally recorded map nor a rvey and is not intended to be used as one.This drawing is a rompci city,c of records,iatermacie,and data 0 544 Feet located in various city,county,and state offices,and other sources affecting the area shown,and is to be used for reference purposes only.The City of Elk River is not ©Bolton&Menk,Inc-Web GIS 10/30/2014 2:43 PM recnnnnihle fnr anv inarnvacbc herein rnntained. CONTRACT FOR GRANT WRITING SERVICES FOR PRELIMINARY PROPOSAL TO DEPARTMENT OF EMPLOYMENT& ECONOMIC DEVELOPMENT SMALL CITIES DEVELOPMENT PROGRAM THIS CONTRACT for Small Cities Development Program Grant Writing Services is entered into on Qci o 1e„ acl 6 Iy by and between the City of Elk River, a municipal corporation under the laws of the State of Minnesota,hereinafter referred to as"Applicant",and Central Minnesota Housing Partnership,Inc., a non-profit corporation under the laws of the State of Minnesota,hereinafter referred to as"CMHP". WHEREAS,The Applicant has requested that CMHP write and submit a Preliminary Proposal to the Minnesota Department of Employment and Economic Development Small Cities Development Program for owner-occupied and commercial rehabilitation activities. WITNESSED: In consideration of the mutual covenants and agreements containing herein,the Applicant and CMHP agrees as follows: CMHP Responsibilities: 1. CMHP will work with the applicant to create initial program parameters pertaining to proposed rehabilitation activities,target areas and funding parameters. 2. CMHP will conduct windshield surveys to determine target areas and to determine the condition of properties within target areas. 3. CMHP will perform research to collect demographic data required in the Preliminary Proposal. 4. CMHP will provide outreach to generate interest in the program and document the need for the proposed rehabilitation activities. 5. CMHP will incorporate all information and data into the designated Preliminary Proposal format and provide to Applicant for final review. 6. CMHP will prepare and submit Preliminary Proposal to the Minnesota Department of Employment and Economic Development Small Cities Development Program by the proposal deadline of Thursday,November 13`11,2014 at 4:30 p.m. Applicant Responsibilities: 1. Applicant will submit to CMHP a payment of$600.00 for the preparation and submission of the Preliminary Proposal to the Minnesota Department of Employment and Economic Development Small Cities Development Program upon execution of this contract. 1 2. Applicant will provide to CMHP any data or information to be used in the Preliminary Proposal. 3. Applicant will review the Preliminary Proposal and provide signature of approval before CMHP's submission to the Minnesota Department of Employment and Economic Development Small Cities Development Program City of Elk River,Applicant Authorized Official Signature John J. Dietz,Mayor Printed Name&Title Date Central Minnesota Housing Partnership,Inc. Authorized Official Signature Deanna Hemmesch,Executive Director Printed Name&Title Date 2