7.6.C. SR 06-06-2005
Item 7.6.C.
MEMORANDUM
TO:
Mayor and City Council
FROM:
Heidi Steinmetz, Assistant Director of Economic Development
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DATE: June 6, 2005
SUBJECT: Consider Business Development Public Infrastructure Grant
Program Resolution
Attachments
. Greater Minnesota Business Development Infrastructure Grant Program Concept
. Business Development Public Infrastructure Grant Program Resolution
Background
On April 4, 2005 the City Council adopted a resolution ordering a preliminary feasibility
study for the development of Northstar Business Park (EDA-owned property). The current
development concept for the park includes two large lots (8.75 acres & 12 acres) and seven
smaller lots (1.78 to 3.4 acres). At it's May 9, 2005 meeting, the EDA reviewed the study
and made a recommendation to the City Council to consider platting, staking and
constructing half of the fIrst phase infrastructure improvements for the park. These
improvements would cost approximately $250,000. Completion of the entire fust phase
would cost approximately $720,000.
Issue
There is funding available through the Department of Employment and Economic
Development (DEED) to assist with these improvements through the Greater Minnesota
Business Development Infrastructure Grant Program. The purpose of the program is to
assist cities outside of the seven county metro area with complex and cosrly public
infrastructure projects for industrial parks that would not otherwise occur without public
assistance. Program details include:
. Cities may receive no more than $1,000,000 over a 2-year period.
. Grant applications are accepted on a year-round basis and are awarded on a
fust-come, fust-serve basis.
. Cities must provide a match of at least 50% of the project capital costs.
Consider Business Development Public Infrastructure Grant Progtam Resolution
June 6, 2005 City Council Meeting
Page 2 of 2
Recommendation
Staff recommends that the City Council consider adopting the attached resolution
authorizing an application to the Business Development Public Infrastructure Grant
Program and certifying that the required local match of 50% is available for the project. The
City's 50% local match would be provided by special assessments.
Greater Minnesota Business Development Public Infrastructure Grant Pro am
Program oncept
PROGRAM GOAL: The Greater MN Business Devel~pment Public Infrastructure (BDPI) Grant
Program Goal is to keep or enhance jobs in a particular frea, to increase a city's tax base, or to create or
expand new economic development within a city. I
BACKGROUND/PURPOSE: The Greater MinnesotalBusiness Development Public Infrastructure
Grant Program was established by the 2002 legislature ~ assist with complex and costly public
in~rastructur~ develo~ment ~rojects for industrial ~evel pment parks and businesses .that might not occur
wIthout publIc financial assIstance. Pursuant to Mmnes ta Statutes 116J.431, the MInnesota Department
of Employment and Economic Development (DEED) h~s the authority to award grants to assist cities
with development of eligible public infrastructure costs ~s defined below.
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FUNDING AVAILABILITY: The current legislative ~ppropriation for this program is $10,000,000.
The appropriation can be spent over a five-year period a~ the discretion of DEED for qualifying projects
in Cities outside of the seven county metropolitan area. IBased on the number of eligible applications,
funding availability will be determined solely by DEED)
Within the first two years of the Program, the following Ibreakdown of funding has been mandated by the
Legislature: !
. $2,000,000 must be made available to cities wit~ populations of less than 5,000.
. 20% of the amount available - $2,000,000 - must be made available for industrial park
developments. i
. $6,000,000 available for remaining eligible proj1cts.
Eligible Applicants:
Eligible Activities:
Ineligible Activities:
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Cities outside of the seve~ county metropolitan area.
(Hennepin, Ramsey, Dakqta, Anoka, Washington, Scott, Carver)
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DEED may provide up to ~O% of the total capital costs to address the need
for publicly owned infrastructure including, but not limited to, wastewater
collection and treatment, t'rinking water, storm sewers, utility extensions
and streets which support conomic development projects including
manufacturing, techno log , warehousing and distribution, research and
development, and agricultpral processing, which is defined as transforming,
packaging, sorting, or gra~ing livestock or livestock products into goods
that are used for intermed~ate or final consumption, including goods for
nonfood use, or; I
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Industrial Park Developm~nt that would be used by any business previously
listed. .
Retail development and office space development other than incidental
office space. Retail devel~pments are projects whose customers are the end
users of a product or servibe.
Greater Minnesota Business Development Public Infrastructure Grant Prog am
Type of Funds Available:
Matching Requirement:
Maximum Award:
DEED will provide grants to Cities, on an open application basis, up to 50%
of the total capital costs ofl public infrastructure necessary for an eligible
economic development prtject.
Cities must provide match~ng funds equal to or exceeding 50% of the total
project capital costs. I
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The City receiving the grapt must provide for the remainder of the capital
costs of the project, either lin cash or in kind. In kind contributions may
include the value of the capital costs of site preparation other than the public
infrastructure needed for t~e project.
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Maximum award cannot exceed $1,000,000 within a two-year period for
one or more projects.
Application Requirements: Applications will be acce~ted and awards made until all funds are
committed. DEED will p~ovide notice on their website when all funds are
committed.
Please submit one originall and two copies of your application. In addition,
the city must include a resblution of the city council certifying that the
required local match is av4ilable and documentation that the project is not
substantially relocating th~ same operation from another location inthe
State when applicable;
Timetable For Completion: Projects must be completer within 2 years upon execution of the Funding
Agreement. If the project Ihas not proceeded in a timely manner DEED
reserves the right to cancel the award.
Minnesota Department of ~mployment and Economic Development
Approving Authority:
Program Contacts:
Contact the Business Representative that has been assigned to your region for additional Program
information if necessary.
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RESOLUTIO~ 05-_
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A RESOLUTION FOR THI$ CITY OF ELK RIVER
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A RESOLUTION AUTHORIZING AN ~PPLlCATION TO THE BUSINESS
DEVELOPMENT PUBLIC INFRASTRUCTUR GRANT PROGRAM AND CERTIFYING
THE AVAILABILITY OF FUNDING F R 50% OF THE PROJECT COSTS
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WHEREAS, that the City of Elk River act as theJegal sponsor for project(s) contained in the Business
Development Public Infrastructure Grant Application to be submitted on June 22, 2005 and that the Mayor is
hereby authorized to apply to the Department of Emplo ment and Economic Development for funding of
this project on behalf of the City of Elk River; and
WHEREAS, that the City of Elk River has the legal authority to apply for financial assistance, and the
institutional, managerial, and financial capability to ensur4 adequate construction, operation, maintenance and
replacement of the proposed project for its design life; a~d
WHEREAS, that the City of Elk River has not vi~lated any Federal, State, or local laws pertaining to
fraud, bribery, kickbacks, collusion, conflict of interest orl other unlawful or corrupt practice; and
WHEREAS, that upon approval of its applicatio~ by the state, the City of Elk River may enter into an
agreement with the State of Minnesota for the above-ref~renced project(s), and that the City of Elk River
certifies that it will comply with all applicable laws and retulations as stated in all contract agreements and
described in the Compliance Section of the Greater Min~esota Business Development Public Infrastructure
Grant.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that the
Mayor and City Administrator are hereby authorized to e~ecute such agreements, and amendments thereto, as
are necessary to implement the project(s) on behalf of th~ applicant.
Passed and adopted this 6th day of June 2006.
SttjPhanie A. Klinzing, Mayor
ATTEST:
Joan M. Schmidt, City Clerk