HomeMy WebLinkAboutSeptember 23, 2026 City Council Regular Meeting Agenda PacketCITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
207 7 W est Larpenteur Avenue
AGENDA -AMENDED
September 23,2026 at 7:00 P.M.
A. CALLTOORDER:7)E tn ,'4
MAYB. ROLLCALL: GUST
-- -/'-to"r* /
/r/ r/MIELKE -WASSENBERG -
C. AppRovALoFAGENDA \ass,en\..3 5-O
STAFF PRESENT:
D. PRESENTATION
E APPROVAL OF MINUTES:
1. September 9,2026 City Council Workshop Meeting Minutes
2. September 9,2026 City Council Meeting Minutes
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5-O
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G.
F.PUBLIC HEARINGS
CONSENT AGENDA:
1.. General Disbursements tfuough 9/1,6/26: W6,95536 a A E A
Payroll through 9/10/26: $33,563.51 G.-5\aqSO\ f - U
Wire Payments through 9/18/26: $17,952.252. Approval of City Licenses
3. Approval of Contract with Ramsey County to Provide Election Services from2027 \o
2032
4. Approval of Resolution26-77 Authorizing the Acceptance of a Grant Agreement
with the Metropolitan Council for $100,000 for a Small Area Plan for the Les Bolstad
Golf Course Redevelopment
5. Approval of Resolution26-78 Authorizing the Acceptance of the2026 Livable
Communities Act (LCA) Development Grant from the Metropolitan Council for
Fairway Commons
6. Approval of Resolution26-79 Accepting the Resignation of Sarah Caflisch from
the Community Engagement Commission
POLICY ITEMS:
1. AdoptionandCertificationof +he2L27Preliminary Levy Y\Oqe\ 5- O
2. Approval of Setting Truth in Taxation (TNT) Hearing Date of Wednesday, December
9th,2026 at 7:00 p.m. \\i e_\Yre_ 5 - O3. Approval of Resolution26& 82 Authorizing the Approval of the Loan Agreement
for the Fairway Commons Project
\n\assesbex- cr 5- OJ
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4. Approval of Resolution26& 83 Authorizing the Approval of the Master
Disbursement and Master Subordination Agreement for the Fairway Commons
Project
Y\o3.n 5-o
I: INFORMATION / ANNOUNCEMENTS:
I: COMMUNITY FORUM:
Please limit comments to 3 minutes per person. Items brought before tLa Council will be referred for
consideration. Council may ask questions for clarifcation, but no council action or discussion will be
held on these items.
K: ADJOURNMENT:t^. \2 ?\\Y\\e-\\\e 5-O
Amendrnents to the agenda are noted in bolil for additions and striJethrarylt for remouals
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C.
CITY OF FALCON HEIGHTS
City Council Workshop
City Hall
2077 West Larpenteur Avenue
MINUTES
September 9,2026
6:00 P.M.
A. CALL TO ORDER: 6:01 P.M.
B. ROLLCALL:GUSTAFSON-X- MAY-X-
MIELKE X MOGEN X WASSENBERG X
STAFF PRESENT: LINEHAN X
POLICY ITEMS:
1,. Update from the Les Bolstad Golf Course Redevelopment Community Advisory
Committee (CAC) (6:00 p.m.)
City Adminishator Linehan introduced meeting attendees: Andrew Dresdner (Senior Urban
Designer, Bolton & Menk), Karl Keel (engineering, Bolton & Menk), CAC Chair Jake Anderson
(Planning Commission representative), and CAC Vice Chair Colleen Wilson (University Grove
representative).
Dresdner provided an overview of the updated project timeline, noting the CAC is currently on
pace within the master plan concept phase. Key milestones include the AUAR scoping process
begirrrring in winter 2026-2027, a Comprehensive Plan amendment starting ln2027, final pre-
plat plans advancing through 2028, and full land purchase anticipated at the end of 2028. The
developer, Rachel Developmenf projected that site remediation would begin tnearly 2029.
Anderson described the past several months as a foundation-building phase, covering site
history, the Larpenteur/Snelling visioning document CAC roles and responsibilities,
infrastructure and nafural resources analysis, and community engagement strategy. CAC
members have been engaging residents informally - including attending community events
while wearing city-issued buttons - and have begun dispelling misinformation circulating in
the community.
Wilson added that CAC members have been actively educating residents and preparing them to
meaningfully participate in upcoming formal engagement opportunities. She noted the city's
FAQ page has been a helpful tool, and that CAC members contributed additional questions
based on what they were hearing from constituents. Wilson also highlighted her role
distributing a monttrly newsletter to University Grove residents as a key outreach mechanism,
while acknowledgingthat similar communication infrastructure did not exist for all
neighborhoods.
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Anderson and Wilson described a recent site tour that proved particularly valuable. Anderson
noted that the topography of the Les Bolstad site - its undulating terrain and skyline views -
was something that could not be fully appreciated from a two-dimensional map, and expressed
strong concern about any design approach thatwould simply flatten the land.
Wilson echoed this, observing that the site's varying elevations present an opportunity to
achieve greater building density while minimizing perceived height by sitting taller structures
in lower-lying areas. She also recounted a vivid demonstration by an arborist on the tour, where
stepping under the tree canopy revealed a temperafure difference of at least 10 degrees -
illustrating in tangible terms the ecological value of preserving the existing tree cover.
Dresdner noted that Barr Engineering had conducted a natural resources inventory prior to the
tour, providing a planning-level overview of the site's ecological assets, while Rachel
Development separately commissioned a tree survey and wetlands delineation.
Wilson raised a significant concem about how community feedback is being capfured and
synthesized. She noted that at the most recent CAC meeting, members reported out on what
they were hearing from their respective constituencies, but that information was not formally
recorded or reflected back to the community. She questioned whose responsibility it was to
close that feedback loop and asked whether the city or CAC could more proactively push
regular updates out to residents.
Wilson also raised the example of Coffman Commons - a nearby S5-plus community whose
residents, many of them former University Grove homeowners, had requested a dedicated
informational presentation about the project. She expressed uncertainty about whether
facilitating such a presentation was within her role as a CAC member or the CAC's collective
mandate.
Council Member May strongly seconded these concerns, emphasizing the need for more robust
communication infrastructure and noting that the city's highly engaged and educated
community would respond well to accessible, concept-level information presented in plain
language - not technical jargon. She stressed the importance of breaking information into
digestible pieces and providing meaningful opportunities for residents to ask questions, rather
than relying on occasional open houses alone.
Council Member Wassenberg suggested three concrete actions:formally capturing resident
feedback in a retrievable forma! communicating back to residents what the city is hearing from
them; and incorporating more detailed, regular CAC updates into the city's weekly newsletter.
Council Member Mogen pressed the CAC, city administrator and consultants directly on
whether the committee had adequate structure, resources, and support to fulfill its charge. He
noted that he was prepared to invest in additional capacity to ensure the project is done right
and asked for candid feedback on any gaps.
Anderson acknowledged that the consultant team had been responsive and helpful, but
observed that this is an enormous project and that the volunteer workload is substantial.
Mogen raised the possibility of bringing in an intern or a dedicated administrative support
person to handle notetaking, email managemenf and feedback synthesis - tasks currently
falling to volunteers or consultants.
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Linehan noted that Goff Public Relations, already under contract to assist with communications,
could potentially be engaged more extensively on community engagement.
Council Member Mielke cautioned that any pop-up meetings or informal outreach must include
consisten! city-vetted talking points to ensure messaging control, citing a recent instance where
a county official held a meeting about the project without city representation.
Council Member Mogen raised a broader concern about the city's posture in the development
process. He argued that unlike typical development scenarios - where either the city first
master plans a site and then selects a developer, or a developer purchases private land and
approaches the city for entitlements - the Les Bolstad situation falls in an uncomfortable
middle ground. The city did not pre-plan the site or establish design standards before Rachel
Development was selected by the University of Minnesota,yet the city retains zoning authority
Mogen emphasized that it would be unfair both to the community and to Rachel Development
to allow the process to proceed without the city playing a more assertive, proactive role in
shaping what an acceptable outcome looks like.
Dresdner and Linehan explained that the process is intentionally structured as a hybrid: the
city's consultant team and the CAC work to define community priorities, and then Rachel
Development and their design team are expected to respond to those priorities through an
iterative design process - anticipated to include multiple alternative concept plans - rather
than the city simply reacting to a single developer-driven proposal.
Dresdner noted that Rachel Development has been attending CAC meetings and is in listening
mode, and that the upcoming design phase would be explicitly exploratory, with the developer
expected to present several broad altematives for CAC review before advancing a preferred
plan.
Anderson, however, affirmed Mogen's underlying concem: the project timeline is genuinely
constrained, and the typical pace of govemment-led community engagement may not fit within
the window available. He indicated he was not personally treating the timeline as fixed if
additional information or community input requires more time.
Wilson proposed that the CAC tour "The Heights" development a former golf course, as an
illustrative reference point.
Dresdner cautioned that The Heights is not a true comparable because its land use (roughly
80% industrial) required a level of grading that would not be appropriate or necessary for the
Les Bolstad site. He noted that the Highland Bridge development in Saint Paul is also a
reference, but similarly imperfect as a comparison. Both sites offer lessons, including The
Heights' geothermal energy system, but neither should be cited as a template for what would
happen at Les Bolstad.
Mogen noted what appeared to be a tension between the iterative, exploratory design process
described by Dresdner and the timeline shown in the project schedule, which indicated the
AUAR scoping process beginning as early as February 2027.Dresdner clarified that the scoping
phase of the AUAR does not require a finalized development plan - only a reasonable range of
densities and uses - which provides some flexibility. He also acknowledged sharing
Anderson's concem about schedule compression and suggested it may be worth reopening a
6
conversation with Rachel Development about whether any additional time can be built into the
process.
Keel offered helpful framing for the overall three-phase structure: the current analysis phase is
focused on understanding the site's major systems - natural resources/ stormwater,
topography, and others - which will in turn shape what alternatives are feasible. The
alternatives phase will then allow the CAC and community to evaluate tradeoffs between those
systems. The plan development phase follows from those decisions.
May urged that a public information session be held as early as possible - potentially October
- to present the process framework and major site findings to the community, allow residents
to ask questions, and begin building informed public understanding i^ advance of the
alternatives phase. She emphasized that the session should not attempt to unload all available
information at once, but rather provide a clear map of the process and an opporfunity for
meaningful dialogue.
2. 2027 Budget Workshop #3 (7:30 p.m. or at the end of the Regular Council Meeting)
a. 2027 Prcliminary Levy Discussion & General Fund Update
3. 2026PostState Fair Survey (8:00 p.m. or at the end of the Regular Council Meeting)
These two agenda items were not reached during the
workshop portion of the meeting and were resumed at the
conclusion of the regular meeting.
D. ADJOURNMENT: 7:15 P.M
Councilmember Mogen motioned to adjourn the workshop;
Approved 5-0
DISCLAIMER: City CouncilWorkshops areheldmonthly as an opportunity for Council Members to
discuss policy topics in greater detail pior to a formal meeting where a public hearing may be held and/or
action may be taken. Members of the public thst wouldlike to make a comment or ask questions about an
item on the agenda for an upcoming workshop should send them to mail@fnlconheights.org prior to the
meeting. Alternatiaely, time is regularly allotted for public comment during Regular City Council
Meetings (typtcally 2nd and thWednesdays) during the Community Forum.
Dated this 23.a day of September, 2026
Mayor
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C.
City Administrator
BLANK PAGE
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A
B.
CITY OF FALCON HEIGHTS
Regular Meeting of the City Council
City Hall
207 7 W est Larpenteur Avenue
MINUTES
September 9,2026 at 7:00 P.M.
CALL TO ORDER: 7:23P.M.
ROLL CALL: GUSTAFSON X MAY X MOGEN X
MIELKE -X- WASSENBERG-X-
STAFF PRESENT: LINEHAN X LANDBERG X
C. APPROVALOFAGENDA
Council Member Wassenberg motioned to approve the
agenda as amended;
Approved 5-0
D. PRESENTATION
There were no presentations.
APPROVAL OF MINUTES:
1. August 26,2026 City Council Workshop Meeting Minutes
2. August 26,2026 City Council Meeting Minutes
Linehan noted that a header correction related to Policy H-2for continuation of council schedule had
been made to the minutes, consistent with action taken at the prior meeting.
Mayor Gustafson motioned to approve the minutes;
Approved 5-0
F. PUBLIC HEARINGS:
CONSENT AGENDA:
1. General Disbursements tfuough 9/a/26: $289,L30.25
Payroll ttuough 8/27 /26: $21,808.54
E.
o
G.
There were no public hearings.
Wire Payments through 9 / a/ 26: $15,496.482. City Licenses
3. Approval of Resolution26-76 Reappointing Mike Tracy to the Planning Commission
Council Member May motioned to approve the consent
agenda; Approved 5-0
H: POLICY ITEMS:
There were no policy items.
I: INFORMATION / ANNOUNCEMENTSJ
Mogen reported that the Planning Commission did not meet and had no additional
announcements, beyond noting that the State Fair had again concluded successfully
Mielke reported that the Community Engagement Commission would meet the following
Monday, and that she had been invited to represent the northern portion of Snelling Avenue in
the newly formed Snelling Coalition, organized by the Hamline Midway Coalition to examine
safety and aesthetic improvements along the corridor.
Wassenberg congratulated families on the start of the school year and reported attending a
League of Minnesota Cities webinar on community engagement and land use planning. Key
takeaways included the importance of engaging residents early and often, and meeting
residents where they are rather than requiring them to come to City Hall.
May reported that the Environment Commission had not met recentl/, and commended staff
and parking ambassadors for their management of the State Fair parking program.
Gustafson noted that the Parks and Recreation Commission held a special meeting the prior
week to begin forming ideas for park development within the Les Bolstad property, which he
was unable to attend due to travel. He expressed enthusiasm for the work being done and
echoed appreciation for staff's efforts during and after the State Fair.
Linehan provided a staff update on several items. Regarding the State Fair parking program/
staff was in the process of reconciling data, gathering ambassador feedback, and analyzing
outcomes. The preliminary figure showed a 25 percent increase in parking numbers compared
to the prior year. A fuller summary was planned for a future workshop. Regarding Community
Park, concrete footings for the new playground were poured that day, with equipment
installation expected to proceed quickly thereafter. The pour-in-place rubber surfacing was
weather-dependent and required overnight temperatures above 50 degrees for five consecutive
days, making timing into October a concem. Staff anticipated a grand opening event in spring,
with the building's reservation policies still being developed through the Parks Commission. A
soft opening of the playground area is to be planned once fencing is complete, similar to the
approach taken with the splash pad.
10
J: COMMUNITY FORUM:
Please limit comments to 3 minutes per person. Items brought before the Council will be referred for
consideration, Council may ask questions for clarifcation, but no council action or discussion will be
held on thtse items.
No members of the public came forward.
The Community Forum was closed.
K:CONTINUATION OF WORKSHOP ITEMS
1. 2027 Budget Workshop #3
a. 2l27Prclirninary Levy & General Fund Update
Linehan introduced the budget discussion, framing it as a return to the general fund and
preliminary levy following the capital-focused second workshop. He reminded the Council that
the City is required by statute to adopt a preliminary levy by September 30, which is then
submitted to Ramsey County for inclusion in Truth in Taxation notices. The preliminary levy
may be reduced before final adoption but cannot be increased.
Linehan reported that since the first budget workshop, where al2.2percent levy increase had
been initially proposed, staff had made several revisions to bring the figure down. These
included: adding a $50,000 transfer from the parking management special revenue fund;
increasing the projected investment interest revenue from $30,000 to $80,000; reducing the
budgeted commissioner salary line to a more realistic $15,000 based on historical participation;
and incorporating updated TIF valuation estimates from Ramsey County reflecting the
Larpenteur senior property coming off the TIF rolls. New expenditures were also incorporated,
including engineering cost adjustrnents. As a result of these changes, staff's current proposal
stood at approximately a9.5 percent levy increase, corresponding to a city tax rate of
approximately 40 percent.
Linehan noted that Ramsey County had communicated that commercial property valuations
had increased for 2027 while residential valuations had generally decreased, meaning a greater
share of the tax burden would shift to commercial properties. This was expected to moderate
the impact on the average homeowner.
Linehan also presented information on a proposed 3 percent cost-of-living adjustment (COLA)
for staff , noting that implementing it would result in the 9.5 percent levy, while foregoing it
entirely would bring the levy down to approximately 8.6 percent. He provided comparative
levy data from neighboring cities, noting that surrounding communities were projecting
increases ranging from approximately 6 to'J..4 percen! and that Falcon Heights had held the
lowest levy increase among comparable cities for the prior two years.
Wassenberg expressed support for the 3 percent COLA, characterizing it as below the CPI and
noting that staff had been performing at a high level, including securing grants and improving
city operations. He did not view the personnel line as a place to reduce.
11
May agreed, noting the Twin Cities cost-of-living increase was approximately 3.2 percent
making the 3 percent figure reasonable. She expressed a desire to bring the levy below 10
percent and suggested that realistic revenue projections and prudent use of reserves could help
accomplish that. She indicated that residents would appreciate an increase as low as possible,
particularly given rising energy costs, and asked how the Council should frame what an
acceptable levy increase looks like.
Wassenberg introduced a reserve fund management concept he had been developing, which he
shared in a handout with staff analysis. The proposal centered on establishing a policy for
systematically drawing down the general fund balance toward a target of 100 percent of annual
expenditures, with guardrails to prevent destabilizing the budget. The guardrails included:
never spending more than 50 percent of the amount above 100 percent reserve in a single year;
never using reserves to reduce the levy increase by more than 5 percent in any one year; and not
using reserves to push the levy below 2 percent of an increase; utilizing whatever was the least
amount of the three options. His rationale was that holding reserves significanfly above what is
needed for fiscal stability and bond rating purposes represents excess taxpayer funds that could
be retumed through levy relief in an orderly, predictable manner.
Linehan explained the mechanics of the general fund reserve, noting it functions as a rainy-day
savings account that accumulates year-over-year surpluses. The City's financial policy requires
reserves of no less than 45 percent of the annual budget. The City currently holds a Triple-A
bond rating-one of only approximately 30 cities in Minnesota-and Standard & Poor's has
indicated a preference for reserves at or above 75 percent of the annual budget. The audited
end-of-2025 general fund balance stood at approximately $4.194 million, representingaboutllT
percent of the prior year's budget. Given the purchase of Get Pressed, software and other
factors, the projected end-of-2026 fund balance was approximately $4.174million, representing
around 102 percent of projected 2026 expenditures - the first year in eight that the City would
not be adding to reserves.
Mogen expressed general support for the thoughffulness of Wassenberg's proposal but
cautioned against implementing it at this time, citing the heightened financial uncertainty
associated with the Les Bolstad Golf Course development. He argued that a city facing an
elevated risk profile in the near term should maintain a larger reserve than a stable city would
need, and suggested the Council revisit the framework once the development picture is clearer
Gustafson noted that the City had historically transferred general fund surpluses to the parks
capital fund, which had enabled cash purchases and debt reduction for capital projects. He
acknowledged the potential flexibility the reserve provides but also pointed to upcoming
development-related costs as a consideration.
The discussion then furned to investment interest revenue. Landberg reported that actual
interest earned in the general fund had ranged from approximately $145,000 to $156,000 in
recent years, while the current budget had conservatively projected only $80,000-an amount
that had itself been an increase from the longstanding figure of $30,000.
Mogen and Wassenberg both noted the disconnect between the conservative budget figure and
the historical actuals, and suggested increasing the projected revenue to a more realistic level.
The Council reached general consensus that revising the investment interest estimate upward to
$140,000-representing a three-year rolling average and a modest reduction from recent peak
years to account for declining rates-was both defensible and accurate. This revision would
produce an approximately $60,000 reduction in the levy requirement bringing the projected
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levy increase from 9.5 percent to approximately 7.42 percenf with a corresponding city tax rate
of approximately 39.13 percent.
Landberg confirmed that at a median estimated market value of $407,050 for a Falcon Heights
home n2027 (a 1.1 percent decrease frorn2026), the resulting increase in the city portion of
property taxes would be approximately $41 per year, or roughly $4 per month.
The Council expressed broad support for the revised approactr, with Linehan noting that staff
would run the numbers past the City's auditors as a precaution and would prepare a
preliminary levy resolution for adoption at the September 23 meeting. The resolution will also
set the date for the Truth in Taxation hearing. The 3 percent COLA for staff was affirmed as
included in the budget.
2. 2026Post-State Fair Survey
Linehan introduced the question of whether to conduct a post-State Fair resident survey again
in2026, noting the prior year's survey had been run digitally and that feedback from two years
of the program would provide useful trend data. He presented the prior year's survey questions
for Council review and direction.
The Council agreed unanimously to conduct the survey again. Discussion focused on which
questions to retain, modify, or eliminate in the interest of shortening the survey and improving
the quality of data collected.
The Council reached consensus on the following changes: eliminate question 8 (feelings of
personal safety in the neighborhood during the fair), as responses lacked a useful baseline and
had not provided actionable data; eliminate question 13 (whether respondents had contacted
the City or the State Fair), as members did not see clear utility in the data; and modify question
17 to remove the "other issues" prompt, leaving only an optional open-ended comment field
regarding the State Fair experience.
Council members also agreed to modify the traffic question (question 9) to remove confusing
double-negative framing, with May volunteering to provide revised wording. The Council
retained questions 10 and 11 (regarding litter and personal property) over some members'
objections, with Mogen arguing that litter, noise, and property impacts represent the core issues
the task force was created to monitor. Questions 14 and 15, regarding use of parking passes and
clings, were retained as the data cannot be captured from back-end scanner records alone.
May asked whether survey responses could be cross-referenced by neighborhood of the
respondent. Linehan confirmed that the raw data from SurveyMonkey could be exported and
analyzed manually, noting that this would require staff or volunteer time to complete. May
offered to assist with the data analysis.
Linehan summarized the final direction: a modified 1S-question survey would be distributed
through the City newsletter by the following week and run for approximately 30 days. Results
were tentatively planned for a workshop discussion in late October.
Council Member Wassenberg motioned to adjourn the
meeting;
Approved 5-0
L: ADJOURNMENT: 9:15 P.M.
13
Amendrnents to tle agenda are notedinboldfor additions and strtletJv+qltfor remoaals.
Dated this 23'a day of September, 2026
Randall C.Mayor
Administrator
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9/LL/2O26 LI:22 At"I
PACKET: 03597 Septdnber 11 Payables
vsNDoR SET: 01 City of Falcon Heights
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O1-OO2O9 ADVANTAGE SIGNS AND GRAPHICS
t-vo926-86
9/rr/2026 APBNK
Stale Fair Sigms
DtlE: 9/tL/2O26 DIsc: 9/LL/2O26
state Fair signs
=: VENDOR TOTALS =:
6s. 00
6s.00
1099: N
2LT 42L!-73OOO-OOO ADDITIONAI SIGNAGE 6s.00
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r-o76-O920268
9/LL/2O26 APBNK
Tobacco Corpliance Checks
DUE: 9/rI/2026 Dtsc: 9/LL/2O26
Tobacco Cotr[)liance checks
=: VENDOR TOTAI,S =:
258.00
268.00
1099: N
101 4122-81000-000 POLTCE SERVTCES 258.00
O1-O3OO1 CAI',IPBEI,L KNUTSON
I-346 August Legal Matters
9/LL/2026 APBNK DUE: 9/7L/2026 DTSCr 9/rr/2026
Auguat Legal Matters
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101 4114-80200-000
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266
285
01-03110 CENTURY LINK
I-202609LL9465
9/LL/2O26 APET{K
Lift Stati.on Auto Dialer Aug
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=: VENDOR TOTALS =:
80.67
80.67
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601 4601-85011-OOO TEI,EPHONE - IAND',INE 80.67
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9/LL/2026 APBNK
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DUE: 9/IL/2O26 DIsc
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: VENDOR TOTALS =:
9/Lr/2026
162.53
162.s3
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01-05171 FRA DOR INC
r-2608218
9/L1/2O26 APBNK
Black Dirt
DIjE: 9/fL/2026 DISC:
B1ack Dirt
9/7r/2026
109. 00
109. 00
1099: N
101 4132-87010-000 BOULEVARD !4.rNTENAr{CE 109. 00
=: VENDOR TOIATS =:
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=: VEMOR TOTAIS :
9/LL/2026
4 ,O37 .49
4,O37 .49
1099: N
601 21?15-000 LEVY PAYABLE 4 ,037 . 49
01-05235 .JA}I-PRO CLEANING SYSTEMS
I-146928 ,Janitorial SeFice Sept
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.tanitorial seryice sept
=: VENDOR TOTALS =:
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sso.00
sso.00
550.00
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r-202609LL94679/Lr/2O26 APBNK
Tae Kwon Do Instructor to 9/1
DUE: 9/LL/2026 DIsc: g/LL/2026
Tae Kwon Do Ingtructor Eo 9/77
595.20
595.20
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August ProsecutionE
DUE: 9/Lt/2026 DIsc: 9/LL/2o26
August Prosecutiong
=== VENDOR TOTAIS =:
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2 ,500 . 00
2 ,500 . 00
2, s00 . 00
01-05993 KERN LA!{DSCAPE RESOURCES
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9/LL/2026 APBNK
Comunity Park Brush Disposal
DU8: 9/L7/2O26 DIsc: 9/7L/2O26
Comunity Park Brush Diaposal
=: VEMoR TOTAIS =:
350.00
3s0.00
1099: N
101 4141-87120-000 FACTLTTTES & GROUND l.tArN 350.00
01-05856 ,fACK TTMHAN
r-202609LL94689/LL/2O26 APBNK
Phone Reinbursmnt Sept
DIJE: 9/7L/2026 DIsc: 9/LL/2025
Phone Reinbursmnt Sept
: VENDOR TOTAJ,S =:
60.00
60.00
1099: N
501 4601-85015-000 CELL PSONE 60.00
17
9/L7/2O26 LLt22 lut
PACKET: 0359? Septqnlcer 11 Payablea
VEMOR SET: 01 City of Fa].con Heights
SEQI,ENCE : AJ,PHABETIC
DUI TOIFROM ACCOI'NTS SUPPRESSED
A/P Regu].ar q)en It4 Register PAGE: 3
------AccoUNT NAI.TE------ DISTRIBUTION
--------rD--------
POST DATE BANK CODE ---------DESCRIPTION---------
GROSS
DISCOUNT
P.O. *
G/L ACCOUNT
O1-O5O5O }4ACOI'EEN E9UIPMENT INC
I-INV23597
9/rr/2026 APBNK
Street sweeper Maintenance
DIrE: 9/LL/2O26 DIsc: 9/LL/2O26
Street Sweepe! Maintenance
=: VENDOR TOTALS =:
667 .64
667.64
1099: N
602 A5O2-A3O25-OOO SWEEPER PARTS/SUPPLIES 667.64
01-05273 MN PUBLIC EMPIOYEES INSI'RANCE
r-1 56518 1
9/LL/2026 APBNK
oct Health & Dental Insurance
DUE: 9/LI/2O26 DIsc: 9/LL/2026
Oct Health & Dental Insurance
=: VENDOR TOTAI,S =:
1099: N
101 4112-89000-000 MTSCELLANEOUS
15, 940 . 46
1s,940.46
15,940.46
01.O6002 NINENORTS
I-2O26-L34 webstreiling/Cablecast Auglst
9/tL/2O26 APBNK DUE: 9/LL/2Q26 DISC: 9/LL/2O26
webstreaing/cablecaat Augus t
=: VEIIDOR TOTAIS =:
1099: N
101 4115-85050-000 CABLE r\I
865. 08
865 . 08
866. 08
01-05053 O'REILLY AUTO PARTS
r-3243-L329929/L!/2O25 APBNK
F-450 0i1DUE; 9/LL/2O26 Dlscr 9/LL/2O26
'F-450 0i1
35. 99
1099: N
LOL 4L32-74OOO-OOO MOTOR EIJEL E IUBRICA! TS 3s.99
T-3243-t33(rs
9/LL/2O25 APBNK
Z-Turn Baltery
DUE: 9/LL/2025 DISC: 9/7r/2026
Z-Turn Battery
: vEl{DoR TOTAIS =:
=: PACKET TOTAIS =:
114 . 83
150.82
26,9s3.e9
1099: N
101 4141-?0100-000 SUPPLTES 114 . 83
18
9/L8/2026 11:OO A4
PACKETT 03599 Septemlce! 18 Payables
vENDoR sET: 01 City of Falcon Heights
SEQI,ENCE : AJ,PHABETIC
DUE TOIEROM ACCOUNTS SUPPRESSED
A/P Regular q)en ft4 Register PAGE: 1
------ACCOIJNT NAME------ DISTRIBUTION
--------rD--------
POST DATE BA}IK CODE ---------DESCRIPTION-----.---
GROSS
DISCOI'NT
P.O. #
G/L ACCOIJNT
01-03110 CENTT'RY LINK
r-2026Q9Le9469
9/L8/2026 APBbtK
Landline svc Sept
DUE: 9/LA/2O26 DISC
Landline Svc Sept
=: VENDOR TOTAIS =:
9/L8/2026
73.86
73.46
1099: N
101 4141-85011-000 TELEPHOM - I,AI{D],INE 73.86
O1-O5OO4 ELECTRO I{ATCH}4AN INC
r-4,67 640
9/L8/2O26 APBI.TK
El.eclric stlike RepairDI,E: 9/ta/2O26 D]sc: 9/L8/2O26
Electlic Strike Repair
: VENDOR TOTAIS =:
689.24
689.24
1099: N
101 4131-87010-000 CrrY HALL IAINTENATiICE 649.24
01-05032 FOREST I,AKE CONTRACTING INC
r-7513
9/78/2026 APBNIK
Com Park Bui-lding E].ectrical
DUE: 9/LA/2O26 DTsc: 9/78/2026
Com Park Building EJ-ectrical
=: VENDOR TOTALS =:
s ,055. 11
5,055 . 11
1099: N
403 4403-91500-000 COMMUNITY PARK I,AND/BUIL 5, 055 . 11
01-05166 GRATNGER, W. W., rNC
r - 907 581 1 695
9/!8/2026 APBNK
shop Supplies
DUE: 9/LA/2O26 DIsc: 9/L8/2O26
Shop supplies
=: VENDOR TOTAIS =:
268.L4
26A -14
1099: N
101 4131-70110-000 SUPPLTES 268.14
01-05993 KERN I,AT.IDSCAPE RTSOI'RCES
r-5911536
9/L8/2026
Brush Disposal
DUE: 9/LA/2O26 Drsc: 9/L8/2O26
Bruah Disposal
1099: N
101 4134-84010-000 TREE TRIMMING
260.OO
APBNK
260 _ 00
r -s91 155 9
9/LE/2O26 APBNK
Brush Disposal
DUE: 9/L8/2026 DLsc: 9/L8/2O26
Brush Disposal
=: VENDOR TOTAIS =:
3s.00
295. 00
1099: N
101 4134-84010-000 TREE TRIMMING 35.00
19
9/I8/2026 11:00 Al'1
PACKET: 03599 septenloe! 18 Payables
VENDOR SET: 01 City of Fa]'con Heights
SEQITENCE : ALPHABETIC
DUE TOIFROM ACCOI'NTS SUPPRESSED
A/P Regu]-ar Open lts Register PAGE: 2
------ACCOUNT I{AME------ DISTRIBUTION
- -- - ----rD- -------
POST DATE BANK CODE ----.----DESCRIPTION---------
GROSS
DISCOIJNT
P.o. #
G/I, ACCOI'NT
01-05440 ToFFLER COMPAIITES, rNC
I-42938155 Mail systs charge
9/L8/2O26 APBNK DUE: 9/7a/2026 DIsc: 9/L8/2O26
Mail systs Charge
=: VENDOR TOTAIS =:
1s9 . s0
1s9 . 50
1099: N
101 4112-87OOO-OOO REPAIR OFFICE EQUIPMENT 159.50
01-05060 }ACQI'EEN EQUIPMENT INC
I-IW25164 Street Sweeper Supplies
9/L8/2O26 APBNK DUE: 9/La/2O26 DIsct 9/L8/2026
street sweeper Supplieg
=: VENDOR TOTAIS =:
7L.75
7L.75
1099: N
602 4602-A3025-000 SWEEPER PARTS/SUPPLTES 7L.75
01-05843 MN NCPERS J,I!'E INSURANCE
r-458800102026
9/L8/2026 APBNK
InEurance October
9/L8/2026 DIsc: 9/Le/2O26
Insurance October
Insurance Octobe!
Insurance October
Insurance October
=: VENDOR TOTALS =:
Life
DUE:
Li-fe
Life
Life
Life
1099: N
101 21709-000
204 2r709-OOO
601 21709-000
602 21709-OOO
OTEER PAYABLE
OTSER PAYABLE
OTIIER PAYAALE
OTHER PAYABLE
63.84
1.60
22.56
8.00
96 .00
95.00
01-05925 SECURIAN LIFE INSURANCE COMPAI.I
r-57 65927L-O0
9/L8/2O26 APBNK
october Life fnsurance
DUE: 9/L8/2O26 DISC:
October Life Insurance
=: VENDOR TOTALS =:
9/L8/2026
215.96
2rs,96
1099: N
101 4112-89000-000 MrscELraNEous 21s.96
01-05870 XCE], ENERGY
r-993058081 Electricity
9/L8/2026 APBNK DUE: 9/18/2026 DIsc: 9/!8/2026
Electricity
1099: N
209 4209-85020-OOO STREET LTGHTTNG POI{ER
13.83
13.83
r - 9930 63430
9/L8/2O26 APBNK
Electricj-tyDIrE: 9/18/2026 DISC: 9/L8/2026
Electricity
12.20
1099: N
209 4209-85020-000 STREET LIGHTING POWER L2.20
r-993076986
9/L8/2026
Electricity
DUE: 9/r8/2026 DIsc: 9/L8/2O26
El-ectricity
54.11
APBNK 1099: N
101 4141-85020-000 ELECTRTC/GAS 54.11
20
9/L8/2026 11:00 AM
PACKET: 03599 septqnber 18 Payables
VENDOR sET: 01 city of Falcon Heights
SEQTTENCE : ALPHABETIC
DUE TOIFRo'{ ACCOUIiI:TS SUPPRESSED
A,/P Requ].ar Open Itq Register PAGE: 3
------AccoUNT NAI'{E------ DISTRIBUTION
--------rD--------
POST DATE BANK CODE ---.-.---DESCRIPTION---------
GROSS
DISCOUNT
P.O. #
G/L ACCOI'NT
01-05870 XCEL ENERGY ( ** CoNTINUED ** )
r- 9931434 85
9/LS/2O26 APBNK
E].ectricity
DUE: 9/L8/2026 DISC: 9/L8/2O26
Electricity
52 .60
1099: N
209 4209-85020-OOO STREET LIGHTING POI{ER 62.60
r- 9 931 71 945
9/L8/2026
Electricity
DUE: 9/L8/2O26 DIsc
E].ectri-city
35.42
APBNK 9/L8/2026 1099: N
209 4209-85020-OOO STREET LIGHTING POI{ER 35.42
T]-993259027
9/L8/2026
Electricity
DUE: 9/78/2026 Dtsc: 9/L8/2O25
Electricity
1099: N
209 4209.85020-000 STREET T,IGHTING POI{ER
L4.34
APBNK
14.34
r - 9 93333414
9/78/2026 APBNK
Electricity
DUE: 9/18/2026 DLsc: 9/tA/2026
E]-ectricity
65.22
1099: N
209 4209-85020-OOO STREET IIGHTING POI{ER 65.22
r-9 93338 63 7
9/L8/2026
Electricity
DIrE: 9/L8/2O26 DIsc: 9/L8/2026Electricity 1099: N
209 4209-85020-OOO STREET LIGHTING POI{ER
70.12
APEI.TK 10.r2
r-9934296LL
9/L8/2026
E].ectricity
DIrE: 9/L8/2O26 DIsc: 9/Lg/2O26
E].ectri.city
1099: N
209 4209-85020-OOO STREET LIGHTING POI{ER
82.08
APBNIK
a2.oa
r- 99348734 8
9/L8/2O26 APBNK
Gas
DI!E: 9/La/2O26 DIsc:
Gas
7L.57
9/Le/2026 1099: N
101 4131-85030-000 NATTTRAL GAS 7L .5'1
r- 9 9351084 6
9/L8/2026
EJ"ectricity
DUE: 9/75/2026 DISC
E].ectricity
31.14
APBNK 9/!8/2026 1099: N
101 4141-85020-000 ET,ECTRTC/GAS 31.14
r- 9 93s8 9291
9/18/2026
Electricity
DUE: 9/t8/2O26 DIsc: 9/L8/2O26
Electrici!y
1099: N
101 4121-85020-000 ELECTRTC
31.04
APBNK
31.04
a-99367 6256
9/7e/2026 APBNK
Electricity
DUE: 9/L8/2O26 DLsc: 9/Le/2026
Elect!ici!y
2 ,49O .40
1099: N
209 4209-85020-000 STREET LIGHTING POI{ER 2 ,49O .40
r-99450129L9/re/2o26 APBNK
Electricity
DUE: 9/L8/2026 Dr.sc: 9/te/2026Electrici!y
=: VEMOR TOTAIS =:
=: PACKET TOTAIS =:
42.84
3 ,076. 91
L0 ,ooL .47
1099: N
101 4141-85020-000 EtECTRTC/GAS 42.84
21
BLANK PAGE
22
FnLC0il ItEtEltTg
THE CITY THAT SOARS
REQUEST FOR COUNCIL ACTION
Meeting Date September 23,2026
Agenda Item Consent G2
Attachment N/A
Submitted By Kelly Nelson
Administrative Services Director/
Deputy Clerk
Item Approval of City License(s)
Description The following individuals/entities have applied for a Municipal Business
License for 2026. Staff have received the necessary documents for licensure.
1". Oasis Spa
The following individuals/entities have applied for a Massage Therapy
License for 2026. Staff have received the necessary documents for licensure
1. Sailian Zhu; Oasis Spa
2. Yan Li; Oasis Spa
The following individuals/entities have applied for a Tree Contractors License
for 2026. Staff have received the necessary documents for licensure.
1. The Davey Tree Expert Company
Budget Impact N/A
Attachment(s)N/A
Action(s)
Requested
Staff recommends approval of the City license applications contingent on
background checks and fire inspections as required.
City of Falcon Heights, Minnesota
23
BLANK PAGE
24
FELColl HEtEllTg
THE CTTYTHATSOANS
REQUEST FOR COUNCIL ACTION
Meeting Date September 23,2026
Agenda Item Consent G3
Attachment 2027-2032 Ramsey County Elections
Services Contract
Submitted By Kelly Nelson, Administrative Services
Director/Deputy Clerk
Item Adoption of the 2027-2032 Ramsey County Elections Services Contract
Description The City of Falcon Heights has contracted with the Ramsey County Elections
Department for more than a decade to operate the annual primary and general
elections. It is Staff's opinion that the City receives a good service from the County in
this regard and that resources are saved by not having to continually train a staff
member(s) in election rules,laws and procedures. The Ramsey County Elections
Department provides this service at a reasonable cost.
The cost of election services for Regular Elections for the 2027-2028 calendar years will
be $54,303.38. The County will provide the cost for the 2029-2030 calendar years to
the City no later than April 'I..,2028, and the cost for the 203'L-2032 budget period by
April \,2030.
With the current contract for elections services ending on December 31,2026, staff
recommends that the City Council approve the2027-2032 Ramsey County Elections
Services Contract and authorize the Mayor and City Administrator to sign any and all
paperwork associated with the Elections Services Contract.
Budget Impact N/A
Attachment(s)2027 -2032 Ramsey County Elec tions Services Contracta
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approvethe202T-2032
Ramsey County Elections Services Contract and authorize the Mayor and City
Administrator to sign any and all paperwork associated with the Elections Services
Contract.
City of Falcon Heights, Minnesota
25
Agreement Between Ramsey County
And the City of Falcon Heights for Election Services
This is an agreement between the County of Ramsey, through the Ramsey County Elections Office, 90
West Plato Boulevard, St. Paul, MN ("County"), and the City of Falcon Heights ("City") for the provision
of election services by the County ("Agreement").
1. Term
This Agreement will be in effect for the period from January L,2027, through December 3L,2032
("lnitial Term"), unless earlier terminated pursuant to the provisions of this Agreement.
2. Termination
This Agreement may be terminated by either party by written notice to the other party no later than
June L of any year, effective January L of the following year. Upon termination of this Agreement,
City-owned voting equipment and election materials in the County's possession will be returned to
the City. lf termination occurs during an active election cycle, the County will complete all election
activities underway, and the City will remain responsible for associated actual costs incurred
through completion of those activities.
3. General Agreements
This Agreement only applies to precincts located solely within Ramsey County. The County will not
perform any election related duties or services for precincts located in another county unless an
agreement authorizing such services has been executed.
a) This Agreement only applies to regularly scheduled elections.
b) The County will conduct all special elections required by law during the term of this Agreement
on behalf of City. The costs of all special elections that are not held concurrently with a regularly
scheduled State, County or City election will be billed to the City for the actual costs incurred to
conduct the specialelection. The City will pay actualcosts associated with any state special
elections that are not conducted on the date of a regularly scheduled City or state election.
c) lf a City primary is required, the City will pay all costs applicable to the primary. The County shall
invoice the City separately for the costs of the primary at actual cost.
d) The costs for recounts for City elections will be billed separately from this agreement for the
actual costs incurred.
e) The costs to administer absentee voting locations beyond the locations set by the County will be
billed separately from this agreement for the actual costs incurred. lf the County agrees to
establish an additional absentee voting location at the City's request, the City will be responsible
for the actual costs incurred. The County retains sole discretion to determine whether any
additional absentee voting location will be established and the dates and times the location will
be open to the public. Absentee voting locations administered by the County will serve all voters
1.
26
in the County
f) Costs related to changes in election laws during the duration of this contract will be billed
separately from this agreement for the actual costs incurred. Costs may be adjusted based on
voter turnout, labor contract changes approved by the Ramsey County Board, or other changes
in legal requirements. "Actual costs" means documented and reasonably incurred personnel
costs, materials, contracted services, equipment rental, and overhead directly related to the
administration of the election for which the City is billed.
g) The costs for ranked choice voting tabulation, ballot reallocation, or related election
administration for the City will be billed separately from this agreement for the actual costs
i ncu rred.
4. County Responsibilities
Except as otherwise provided in this Agreement, the County will provide all services, equipment, and
supplies as required to perform on behalf of the City and allelection-related duties of the City
specified in this Agreement. These duties will include:
a) Recruit, train, and supervise staffto carry outthe duties specified in this Agreement
b) Conduct annual inspections of the polling places established by the City to verify compliance
with allstate and federalaccessibility requirements; make suggestions about polling locations to
City based on feedback from voters, election judges, the polling location's administration, and
annual surveys,
c) Payallrentalcosts of the Election Day, absentee, and earlyvoting polling places.
d) Recruit, train, assign, and payment of the election judges. Compensation to election judges will
be in an amount as determined by the Ramsey County Board of Commissioners.
e) Selection and administration of an election judge management system.
f) The County will provide interpreters and written translation of voter information materials
when required by federal, state, or County language-access policies applicable to election
administration. Additional translation services requested by the City will be billed at actual cost,
g) Carry out the duties of the city clerk described in Minnesota Election Law regarding the
administration of the voting system and the requirements set-forth in the Joint Powers
Agreement among the County and the municipalities in Ramsey County to administer the
Cou nty's voting systems.
h) Programming, layout, legal review, and printing of ballots for City
2
27
i) Prepare and transport all election materials to and from each Election Day, absentee, and early
voting polling place. Provide election forms, supplies, voting equipment, and other related
materials for each Election Day polling place.
j) Provide on-street parking and metered parking for early voting, absentee, and Election Day
polling places.
k) Compilation, auditing, and reporting of election results and election statistics for dissemination
to the appropriate canvassing boards, the public, and the media. Provide copy of election
abstract to be used by City for their canvass.
l) Provide election-related information on the County web site relating to City elections
m) Conduct recounts for City offices and ballot questions
n) Prepare, post, and publish notices of filing and the sample ballots
o The County will publish required notices using the County's authorized newspaper.
o The County will prepare and post required notices of temporary or permanent polling place
changes as required by applicable law, including exterior posting at former polling place
locations when required.
o) Administer all aspects of absentee voting carried out by the city clerk including all in-person
absentee voting activities at absentee voting locations determined by the Ramsey County Auditor.
p) Administer campaign financial reporting and economic disclosure activities designated to the
city clerk.
q) Perform all duties of the candidate filing officer, including acceptance of affidavits of candidacy
and petitions.
r) Maintain a database and prepare maps of election districts and precinct boundaries. Provide
maps in digital and print formats, available to the public.
s) Retain all election records in accordance with applicable Minnesota election record retention
requirements.
5. City Responsibilities
The City will perform the following election-related responsibilities:
a ) Provide the Cou nty with a n inventory list of voting equ ipment a nd election related materia ls,
owned by City in the County's possession, to be returned by the County upon termination of
Agreement.
b) The City may elect to serve as the candidate filing officer for the City offices. lf the City elects to
do so, the City remains responsible for allstatutory duties associated with candidate filing and
3
28
timely transmission of candidate information to the County
c) Conduct official canvass of election results following every City election
d) lssue Certificates of Election
e) Attend annual pre-election meetings held by the County
f) Send required mailed notice of levy referendum.
g) Provide recruitment information about serving as an election judge within City
h ) Provide notice of ca nd idates to be elected a nd notice of specia I elections as req u ired by
applicable law.
i) As needed, the City will identify new locations that it prefers to use as precinct polling places on
Election Day. Provide resolution of approved polling locations to the County.
j) Designate a person who will be the principal contact for the City.
6. Office Space and Equipment Storage
The County will provide suitable office and warehouse space to conduct all election-related activities
and for storage of election equipment and supplies. Storage costs are included in the payments
described in Section 7 unless otherwise separately identified in this Agreement.
7. Costs and Payment
Payments to cover the costs incurred by the County in performing the provisions of this Agreement
for regularly scheduled elections will be made by the City in eight equal quarterly amounts for each
two-year budget period, for a total of 24 quarterly payments during the lnitial Term of the
Agreement. Payments are due on March 31, June 30, September 30, and December 3L of each year.
The cost of election services for regular elections for 2027-2028 will be SS+,309.38. The County will
provide the cost for 2029-2030 to the City no later than April L, 2028, and the cost for 2O3L-2032 no
later than April 1, 2030.
8. Voting Systems
The cost of the operation and maintenance of the voting system is not included in this Agreement
and is the subject of a separate agreement.
9. lnsurance
Each party shall maintain such insurance as will protect such party from claims which may arise out
of,orresultfrom,theparty'sactionsunderthisAgreement. DuringthetermofthisAgreement,the
County and City will maintain, through commercially available insurance or on a self-insurance basis,
t.
4
29
property insurance coverage on the voting equipment owned by each party, for the repair or
replacement of the voting equipment if damaged or stolen, Each party shall be responsible for any
deductible under its respective policy. Each party hereby waives and releases the other party, their
employees, agents, officials, and officers from all claims, liability, and causes of action for loss,
damage to or destruction of the waiving party's property resulting from fire or other perils covered in
the standard property insurance coverage maintained by the parties. Furthermore, each party agrees
that it will look to its own property insurance for reimbursement for any loss and shall have no rights
of subrogation against the other parties.
10. lndemnification
Each party to this Agreement will be responsible for its own acts and omissions, and the acts and
omissions of its officials, employees, and agents, and the resulting liabilities, to the extent authorized
by law and shall not be responsible forthe acts of the other party, its officials, employees, and
agents, and the results thereof. Liability shall be governed by applicable law. Without limiting the
foregoing, liability of the parties shall be governed by the provisions of Minnesota Statutes Chapter
466 (Tort Liability, Political Subdivisions) or other applicable law. This provision shall not be construed
nor operate as a waiver of any applicable limits of or exceptions to liability set by law. This provision
will survive the termination of this Agreement.
11. Data Practices
All data created, collected, received, maintained, or disseminated for any purpose in the course of
this Agreement is governed by the Minnesota Government Data Practices Act, any other applicable
statute, or any rules adopted to implement the Act or statute, as well as federal statutes and
regulations on data privacy. The parties shall maintain records in accordance with applicable records
retention requirements under Minnesota law.
12. Alteration
Any alteration, variation, modification, or waiver of the provisions of this Agreement shall be valid
only after it has been reduced to writing and duly signed by all parties. Any amendment intended to
apply to an upcoming cycle should be approved no later than June L of the preceding year unless
otherwise agreed by the parties.
13. Election Emergencies lForce Majeure
Neither party shall be deemed in breach of this Agreement for delays or failures in performance
caused by circumstances beyond its reasonable control, including natural disasters, cyber incidents,
public health emergencies, civil disturbances, utility failures, acts of government, or other
emergencies materially affecting election administration, The parties shall cooperate in good faith to
implement legally compliant alternative procedures when feasible.
5
14. Dispute Resolution
30
The Agreement shall be interpreted and construed according to the laws of the'State of Minnesota.
All litigation regarding this Agreement shall be venued in the appropriate State or Federal District
Court in Ramsey County, Minnesota.
15. Severability
The provisions of this Agreement are severable. lf any part of this Agreement is rendered void, invalid
or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of
this Agreement.
16. lndependent Contractor
It is agreed that nothing in this contract is intended or should be construed as creating the
relationship of agents, partners, joint ventures, or associates between the parties hereto or as
constituting the County as the employee of the City for any purpose or in any manner whatsoever.
The County is an independent contractor and neither it, its employees, agents, nor its representatives
are employees of the City.
17. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and shall supersede all
prior oral and written negotiations.
18. Conflicting Agreements
ln the event of a conflict between this Agreement and any separate voting systems agreement, Joint
Powers Agreement, or other election-related agreement between the parties, the agreement
governing the more specific subject matter shall control.
Signatures on next poge
6
31
lN WITNESS THEREOI the parties have subscribed their names as of the date written below
RAMSEYCOUNry CITYOF FALCON H
Rafael E. Ortega (District 5, Cheir)
Ramsey County Board of Commissioners
Date:_
Jason Yang, Chief Cterk
Ramsey County Board of Commissioners
c.
Mayor
Date
Jack Li n
City Ad
DateDate:_)0
Approvat recommended:
B*,,:_
David Triptett
Deputy Director, Property Tax, Records and
ELection Services
Approved as to form
Assistant County Attorney
7
32
BLANK PAGE
33
FNLCAil HEIEIITS
THE CITY THAT SOARS
REQUEST FOR COUNCIL ACTION
Meeting Date September 23,2026
Agenda Item Consent G4
Attachment See below
Submitted By Tack Linehan, City Administrator
Item Acceptance of Metropolitan Council Livable Communities Act Small Area
Planning Grant (Les Bolstad Golf Course Master Plan)
Description The City of Falcon Heights has been awarded a Livable Communities Act
(LCA) Small Area Planning Grant from the Metropolitan Council in the
amount of $100,000 for development of the Les Bolstad Golf Course Master
Plan (Grant # SG-26L-08-01). The Metropolitan Council approved the grant
award on August 12,2026.
The project will produce a small area plan (master plan / concept plan) to
guide potential redevelopment of the former Les Bolstad Golf Course site,
including analysis of land use, infrastrucfure, environmental stewardship,
housing, multimodal transportation, and public realm considerations.
Consultant work will be undertaken by Bolton & Menk.
This grant supports the City's long-range planning goals and will result in a
small area plan presented to the City Council for consideration and, if
approved, submitted as an amendment or attachment to the City's
Comprehensive Plan.
Acceptance of this grant is required before consultant contracting and
Metropolitan Council reimbursement can begin. Project activities must occur
during the grant period of August 13,2026 through |une30,2029
Budget Impact The grant award totals $100,000, all of which will be passed through to
professional planning services related to development of the small area plan.
The grant does not have a direct impact on the City's general operating budget.
Attachment(s)Resolution 26-77 Authorizing Metropolitan Council Livable
Communities Act Grant Agreement for the Les Bolstad Golf Course
Master Plan
Livable Communities Act Small Area Planning Grant Agreement
(sG-26L-08-01)
a
a
Action(s)
Requested
Staff recommends a motion to approve Resolution 26-77 accepting the
Metropolitan Council Livable Communities Act Small Area Planning Grant
award and authorizing the City Administrator to sign all documents related to
execution of the grant agreement.
City of Falcon Heights, Minnesota
34
LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
Metropolitan Council Grant Agreement
METROPOLITAN LIVABLE COiVIMUNITIES ACT
GRANT AGREEMENT
THIS GRANT AGREEMENT ("Agreement") is made and entered into by the Metropolitan
Council ("Council") and the Municipality, County, or Development Authority identified above as
"Grantee."
RECITALS
l. Minnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund,
the uses of which fund must be consistent with and promote the purposes of the
Metropolitan Livable Communities Act ("LCA") and the policies of the Council's
Metropolitan Development Guide.
Program: Livable Communities / LCA Small Area Plan
Grant #: SG-26L-08-01 Grantee: Falcon Heights
Project Title: Les Bolstad Golf Course Master Plan
Project Activity Period: August 13,2026 - June 30,2029
Total Grant Amount:$ 100,000.00
2026 LCDA $100,000.00
Council Approval:Business ltem # 2026-130 (August 12,2026)
Authorized Council Representative: Erin Brueggemann,
Erin. Brueggemann@metc. state.mn. us
Authorized Grantee Representative: Hannah Myhren, hannah.myhren@falconheights.org
OGC Revisedz 814/26
sG-26L-08-01 Page I of 14
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AI\D SMALL AREA PLANNING GRANT PROGRAMS
2. Minnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan
Livable Communities Fund a Livable Communities Demonstration Account and require
the Council to use the funds in the account to make grants or loans to municipalities
participating in the Local Housing Incentives Program under Minnesota Statutes
section 473.254 or to Counties or Development Authorities to fund the initiatives specified
in Minnesota Statutes section 473.25(b) in Participating Municipalities.
3. The Grantee is a Municipality participating in the Local Housing Incentives Account
program under Minnesota Statutes section 473.254, a County, or a Development Authority.
4. The Grantee seeks funding in connection with an application for Livable Communities
Policy and Affordable Housing Program Development Grant Program or the Small Area
Planning Grant Program funds submitted in response to the Council's notice of availability
of grant funds for the "Funding Cycle" identified above and will use the grant funds made
available under this Agreement to help fund the ooProject" identified in the application and
described in Attachments A and B.
5. The Councilallocated a portion of its Livable Communities Demonstration Account funds
to a Livable Communities Policy Development Grant Program and Small Area Planning
Grant Program to help Municipalities create locally adopted, enforceable policies that have
an impact on physical development or create small area plans that are incorporated into
comprehensive plans, and further the goals of the Livable Communities Act and the
Council's Imagine 2050 goals.
6. The Council awarded Livable Communities Act grant funds to the Grantee with the
understanding that the Policy Development or Small Area Planning Project described in
the application will proceed to completion in a timely manner, the Grantee will present
policies or plans for consideration to its governing body that emphasize equitable
development within the Grantee's designated "Project Area," and all grant funds will be
expended prior to the "Expiration Date" identified above.
NOW THEREFORE, in reliance on the above statements and in consideration of the mutual
promises and covenants contained in this Agreement, the Grantee and the Council agree as follows:
I. DEFINITIONS
1.01. Definition of Terms. The terms defined in this section have the meanings given them in
this section unless otherwise provided or indicated by the context.
(a) Commenced. For the purposes of Sections 2.06 and 4.03, "commenced" means that the
Grantee has initiated one or more grant-eligible activities in furtherance of the Project, as
described in the grant application.
(b)Council Action. "Council Action" means the action or decision of the governing body of
the Metropolitan Council, on the meeting date identified at Page I of this Agreement, by
sG-26L-08-01 Page 2 of l4
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
which the Grantee was awarded Livable Communities Policy Development or SmallArea
Planning Grant Program funds.
(c)County. "County" means Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington Counties.
(d) Development Authority. "Development Authority" means a statutory or home rule charter
city, a housing and redevelopment authority, an economic development authority, or a port
authority in the Metropolitan Area.
(e)Metropolitan Ares. "Metropolitan Area" means the seven-county metropolitan area as
defined by Minnesota Statutes section 473.121, subdivision 2.
(0 Participating Municipality. "Participating Municipality" means a statutory or home rule
charter city or town which has elected to participate in the Local Housing Incentive
Account program and negotiated affordable and life-cycle housing goals for the
Municipality pursuant to Minnesota Statutes section 473.254.
(g) Project. "Project" means the grant-funded policy development or small area planning
activities for which funding is requested in the Grantee's application for Livable
Communities Policy Development or Small Area Planning Grant Program funds.
(h) Project Area. "Project Area" means: (1) the Participating Municipality to which a policy
will apply; or (2) if the Project's policy or plan will not apply to physical development
projects on a city-wide basis, the specific geographic boundary of the area(s) to which the
Project will apply. The Project Area is as described in the Grantee's application and
described in Attachment B. The Project Area cannot include regional park lands. The
Project Area may include regional trails that cross through or are located adjacent to the
Project Area, but the policy, plan, or its application may not alter or eliminate any regional
park lands or trails.
II. GRANT FUNDS
2.01. Source of Funds. The grant funds made available to the Grantee under this Agreement
are from the Livable Communities Demonstration Account of the Metropolitan Livable
Communities Fund. The grant funds are derived from the property tax authorized by Minnesota
Statutes section 473.253, subdivision l, and are not from State or federal sources.
2.02. Grant Amount. The Council will grant to the Grantee the "Grant Amount" identified at
Page 1 of this Agreement. The Council's obligation to reimburse the Grantee for eligible grant-
funded expenditures shall not exceed the Grant Amount. Notwithstanding any other provision of
this Agreement, the Grantee understands and agrees that any reduction or termination of Livable
Communities Demonstration Account funds made available to the Council may result in a like
reduction in the Grant Amount made available to the Grantee.
sG-26L-08-01 Page 3 of 14
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
2.03. Authorized Use of Grant Funds. The Grant Amount made available to the Grantee under
this Agreement shall be us'ed only for the purposes and Project activities described in the
application for Livable Communities Grant Program funds. A Project summary that describes
eligible uses of the grant funds as approved by the Council is attached to and incorporated into this
Agreement as Attachment A. Aerial photography or drawings that identify the specific
locations(s) within the Project boundaries or the Site(s) for which grant funds must be used is
attached to and incorporated into this Agreement as Attachment B. Grant funds must be used to
fund the initiatives specified in Minnesota Statutes section 473.25(b), in a Participating
Municipality.
2.04. Ineligible Uses. Grant funds must be used for eligible costs directly associated with the
Project activities for which the Council awarded grant funds. A detailed list of ineligible and
eligible costs is available in the program guidance. Grant funds also shall not be used by the
Grantee or others to supplant or replace: (a) grant or loan funds obtained for the Project from other
sources; or (b) Grantee contributions to the Project, including financial assistance or other
resources of the Grantee; or (c) funding or budgetary commitments made by the Grantee or others
prior to the Council Action, unless specifically authorized 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. The Grantee agrees to comply with any
"business subsidy" requirements of Minnesota Statutes sections 116J.993 to 116J.995 that apply
to the Grantee's expenditures or uses of the grant funds.
2.05. Restrictions on Loans. The Grantee shall not use the grant funds to make loans to any
subgrantee, subrecipient, or contractor and the Grantee shall not permit any subgrantee,
subrecipient, or contractor to use the grant funds for loans to any subrecipient at any tier. The
requirements of this Section2.05 shall be included in all subgrant and subrecipient agreements,
and contracts.
2.06. Project Commencement and Changes. The Project for which grant funds were requested
must be 'oCommenced" prior to the Expiration Date. The Grantee must promptly inform the
Council in writing of any significant changes to the Project for which the grant funds were awarded,
as well as any potential changes to the grant-funded activities described or identified in
Attachments A and B. Failure to inform the Council of any significant changes to the Project or
significant changes to grant-funded components of the Project, and use of grant funds for ineligible
or unauthorized purposes, will jeopardize the Grantee's eligibility for future Livable Communities
awards. Grant funds will not be disbursed prior to Council approval of significant changes to
either the Project or to grant-funded activities described or identified in Attachments A and B.
2.07. Budget Variance. The Grantee may reallocate up to twenty percent (20%) of the Grant
Amount among the grant-funded activities, provided: (a) the grant funds may be used only for
Project activities for which the Council awarded the grant funds; (b) the reallocation does not
significantly change the Project deliverables; and (c) the Grantee receives written permission from
Council staff prior to reallocating any grant funds. Council staff may administratively approve
budget reallocation requests that exceed twenty percent (20%) of the Grant Amount only if the
reallocation does not significantly change the Project deliverables. Notwithstanding the aggregate
38
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LIVABLE COMMUNITIES ACT
POLICY AIID AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLAIINING GRANT PROGRAMS
or net effect of any variances, the Council's obligation to provide grant funds under this Agreement
shall not exceed the Grant Amount identified at Page 1 of this Agreement.
2.08. Loss of Grant Funds. The Grantee agrees to remit to the Council in a prompt manner:
any unspent grant funds, including any grant funds that are not expended prior to the Expiration
Date identified at Page I of this Agreement; any grant funds that are not used for the authorized
purposes; and any interest earnings described in Section 2.10 that are not used for the purposes of
implementing the grant-funded Project activities described or identified in Attachments A and B.
For the purposes of this Agreement, grant funds are "expended" prior to the Expiration Date if the
Grantee pays or is obligated to pay for expenses of eligible grant-funded Project activities that
occurred prior to the Expiration Date. Unspent or unused grant funds and other funds remitted to
the Council shall revert to the Council's Livable Communities Demonstration Account for
distribution through application processes in future Funding Cycles or as otherwise permitted by
law.
2.09. Payment Requests and Disbursements. The Council will disburse grant funds in
response to payment requests submitted by the Grantee through the Council's online grants
management system and reviewed and approved by the Council's authorized agent. The Council
will make the final determination whether the expenditures are eligible for reimbursement under
this Agreement and verify the total amount requested from the Council. Reimbursement of any
cost does not constitute a waiver by the Council of any Grantee noncompliance with this
Agreement.
The Council shall disburse grant funds for grant-eligible expenditures within thirty-five (35) days
of the receipt of satisfactory documentation from the Grantee. Notwithstanding the provisions of
this Section 2.09,the Council will not disburse any grant funds to the Grantee unless the governing
body of the Grantee (or the goveming body of the Participating Municipality within which the
Project is located) has adopted a Fair Housing Policy as required by Section 5.12.
The Council will reimburse up to 90 percent of the awarded grant funds. The remaining l0 percent
may be withheld before a final payment is issued until the Grantee: (a) completes the Project or
grant deliverables identified in the project summary; and (b) submits a final request for payment
and the Final Report as required under Section 3.03. If the required deliverables are not submitted
within the term and closeout period specified in Section 4.01, the Council shall have no obligation
to disburse the remaining l0 percent. [n such cases, the remaining funds shall revert to the
Council's Livable Communities Demonstration Account for redistribution through future funding
cycles or as otherwise permitted by law.
2.10 Interest Earnings. 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 implementing the Project activities described or identified in Attachments A and
B.
sG-26L-08-01 Page 5 of 14
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
ilI. 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 Sections 4.01
and4.02, 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 or identified in
Attachments A and B or six (6) years following the expenditure of the grant funds, whichever
occurs earlier. Accounting methods shall be in accordance with generally accepted accounting
principles.
3.02. Audits. The above accounts and records ofthe 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 authorizedby
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 or six (6) years following the
expenditure of the grant funds, whichever occurs earlier. Pursuant to Minnesota Statutes
section 16C.05, subdivision 5, the books, records, documents and accounting procedures and
practices of the Grantee that are relevant to this Agreement are subject to examination by the
Council and either the Legislative Auditor or the State Auditor, as appropriate, for a minimum of
six (6) years.
3.03. Report Requirements. The Grantee will report to the Council on a semi-annual basis by
January 3l (for the period July I through December 3l) and July 31 (for the period January 1
through June 30) of each calendar year during the term of this Agreement. The Grantee reports
shall describe the status of the Project activities described or identified in AttachmentsA and B.
The reports shall also describe the project spending for the current reporting period and projected
spending for future reporting periods. The Grantee must complete and submit to the Council a
Final Report before the final disbursement of grant funds will be approved. The form and content
of the Final Report will be determined by the Council. These reporting requirements shall survive
the expiration or termination of this Agreement.
IV. AGREEMENT TERM
4.01. Term and Closeout. This Agreement is effective (the "Effective Date") upon execution
of this Agreement by the Council. Unless terminated pursuant to Section 4.02, this Agreement
expires on the "Expiration Date" identified at Page I of this Agreement. Failure of the Grantee to
timely execute this Agreement does not extend the Expiration Date. The Grantee has 90 calendar
days after the Expiration Date to provide documentation and information necessary to close out
this Agreement and receive disbursements for eligible grant-funded Project activities as prescribed
in Section 2.03. If the Grantee fails to provide necessary documentation and information during
this 90-day closeout period, the Grantee shall not be eligible to receive any unpaid grant funds and
the Council will not disburse any unpaid grant funds to the Grantee. This 90-day closeout period
does not extend any Grantee reporting deadlines established in this Agreement or authorize the
Grantee to expend or commit any grant funds after the Expiration Date. All grant funds not
sG-26L-08-01 Page 6 of 14
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
expended by the Grantee prior to the Expiration Date and requested for reimbursement prior to the
end of the closeout period may revert to the Council.
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
prior to the Expiration Date, the Grantee shall receive payment on a pro rata basis for eligible
Project activities described or identified in Attachments A and B that have been completed prior
to the termination. Termination of this Agreement does not alter the Council's authority to recover
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 ofthe 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 and Extension. The Council and the Grantee may amend this Agreement
by mutual agreement. Amendments or an extension of this Agreement shall be effective only on
the execution of written amendments signed by authorized representatives of the Council and the
Grantee. If the Grantee needs a change to the Project, additional time within which to complete the
grant-funded activities and Commence the Project, a change in the budget, or a change in grant-
funded activities, the Grantee must submit to the Council at least ninety (90) calendar days prior to
the Expiration Date, a complete, written amendment request. All requirements must be met for a
request to be considered complete. The Expiration Date may be extended, but the period of any
extension(s) shallnot exceed one (1) year beyond the original Expiration Date identified at page I
of this agreement.
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, gender
identity, marital status, status with regard to public assistance, familial status, membership or
activity in a 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 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, indemnifo, 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
sG-26L-08-01 Page 7 of 14
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LIVABLE COMMUNITIES ACT
POLICY AI\D AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter I 158, the
federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980
(CERCLA) as amended, United States Code, title 42, sections 9601 et seq., and the federal
Resource Conservation and Recovery Act of 1976 (RCRA) as amended, United States Code,
title 42, sections 6901 et seq. This obligation shall 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 section shall survive the expiration or
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 and Signage. The Grantee will acknowledge the financial assistance
provided by the Council in promotional materials, signage, press releases, reports, and publications
relating to the Project. The acknowledgment will contain the following or similar language:
Funding support for this project was provided by the
Me tropo I i t an C ounc i I Me trop o I it an L iv ab le C o mmunit i e s Fund.
The acknowledgment should refer to the "Metropolitan Council" (not "Met Council" orooMetro
Council").
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 any Project activities described or identified in Attachments A and B.
5.06. Subgrantees, Contractors and Subcontractors. The Grantee shall include in any
subgrant, contract or subcontract for Project activities appropriate provisions to ensure subgrantee,
contractor, and subcontractor compliance with all applicable state and federal laws and this
Agreement. Along with such provisions, the Grantee shall 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 and Water Management Plan Requirements. To the extent
appropriate, the Project should include consideration of stormwater discharge and water
management plan requirements in federal and state laws, the Council's 2050 Water Policy Plan,
and the local water management plan(s) for the jurisdiction(s) within which the Project Area is
located.
5.08. Authorized Agent. Payment requests, written progress reports, and correspondence
submitted to the Council pursuant to this Agreement shall be directed to the Authorized Agent
named below or their successor through the Council's online grants administration portal or to the
below contact information:
Attn: Erin Brueggemann
Metropolitan Council
CD & MTS Finance and Administration
sG-26L-08-01 Page 8 of I4
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
390 Robert Street North
Saint Paul, Minnesota 55101-1805
eli n. brue g geman nirD rr etc. state. lr rl. u s
5.09. Non-Assignment. Minnesota Statutes section 473.253, subdivision 2, requires the
Council to distribute grant funds to eligible "municipalities," metropolitan-area counties, or
"development authorities" for projects in municipalities participating in the Local Housing
Incentives Account program. Accordingly, this Agreement is not assignable and shall not be
assigned by the Grantee.
5.10. Authorization to Reproduce Images. The Grantee certifies that the Grantee: (a) is the
owner of any renderings, images, perspectives, sections, diagrams, photographs or other
copyrightable materials (collectively, "copyrightable materials") that are in the Grantee's
application or are submitted to the Council as part of the grant application review process or after
grant award, or that the Grantee is fully authorized to grant permissions regarding the
copyrightable materials; and (b) the copyrightable materials do not infringe upon the copyrights
of others. The Grantee agrees the Council has a nonexclusive royalty-free license and all necessary
permissions to reproduce and publish the copyrightable materials for noncommercial purposes,
including but not limited to press releases, presentations, reports, and on the internet. The Grantee
also agrees the Grantee will not hold the Council responsible for the unauthorized use of the
copyrightable materials by third parties.
5.11. 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.
5.12. tr'air Housing Policy. The governing body of the Grantee (or the Participating
Municipality within which the Project is located) must have adopted a Fair Housing Policy. For
the purposes of this section, the term "Fair Housing Policy" means a written statement regarding
the Grantee's (or Participating Municipality's) commitment to fair housing that substantively
includes at least the following elements: a purpose statement; procedures for responding to fair
housing concerns and complaints; and a designated individual or staff position responsible for fair
housing issues. A best practices guide, as well as a copy of a model local fair housing policy is
available on the Council's website.
5.13. Counterparts. This Agreement may be executed in counterpart, each of which counterpart
constitutes an original, but both of which together constitute one instrument.
5.14. Electronic Signatures. The electronic signatures of the Council's and the Grantee's
authorized representatives shall be valid as the original signatures ofthe authorized representatives
and shall be effective to bind the Council and the Grantee under this Agreement. This Agreement
sG-26L-08-01 Page 9 of l4
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LIVABLE COMMUNITIES ACT
POLICY AIID AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
containing, or to which there is affixed, an electronic signature shall be deemed to (a) be "written"
or "in writing"; (b) have been signed; and (c) constitute a record established and maintained in the
ordinary course of business and an original written record when printed from electronic files.
"Electronic signature" also means a manually signed original signature that is then transmitted by
any electronic means, including without limitation a faxed version of an original signature or an
electronically scanned and transmiffed version (e.9., via PDF) of an original signature. The
Council's or the Grantee's failure to produce the original signature of any electronically
transmitted signature shall not affect the enforceability of this Agreement.
This space intentionally left blank. Signature page follows.
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
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 of
final execution by the Council.
GRANTEE METROPOLITAN COUNCIL
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LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRANT PROGRAMS
ATTACHMENT A
POLICY DEVELOPMENT OR SMALL AREA PLANNING PROJECT SUMMARY
This attachment comprises this page and the succeeding page(s) which contain(s) a summary of
the Project described in the application for Livable Communities Act Policy Development or Small
Area Planning Grant Program grant funds submitted in response to the Council's notice of
availability of Livable Communities Act Policy Development or Small Area Planning Grant
Program funds for the Funding Cycle identified at Page I of this Agreement. The summary reflects
the Project activities for which the Grantee was awarded grant funds by the Council Action, 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 Agreement by reference and is made a part of this Agreement as follows. If
the application or any provision of the application conflicts with or is inconsistent with the Council
Action, other provisions of this Agreement, or the Project Summary contained in this Attachments
A and B, the terms, descriptions, and dollar amounts reflected in the Council Action or contained
in this Agreement and the Project Summary shall prevail. For the purposes of resolving conflicts
or inconsistencies, the order of precedence is: (1) the Council Action; (2) this Agreement; (3) the
Project Summary and Location(s); and (4) the grant application.
sG-26L-08-01 Page 12 of 14
46
Program:Livable Communities / Small Area Planning
Grant #:sG-26L-08-01
Project Title:Les Bolstad Golf Course Master Plan
Grantee:Falcon Heights
Project Location:2077 Larpenteur Ave W
City or County:Falcon Heights
Council District:District l0 - Peter Lindstrom
LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLAIINING GRANT PROGRAMS
ATTACHMENT A - PROJECT SUMMARY
Project Description
Project Budget
Total Metropolitan Council Budget:$1o0,0oo.oo
Consultant Time $ 100,000.00
Project Scope:Develop a small area plan to serve as the strategic roadmap to guide
redevelopment of the former golf course into a connected, sustainable,
and vibrant neighborhood. It will align land use, infrastructure, and
investment decisions with the City's goals for livability, equity,
environmental stewardship, and economic vitality, ensuring this
redevelopment opportunity delivers lasting benefits for both current
and future residents of Falcon Heights.
Grant Outcomes Small area plan presented to council for approval and, if approved,
submitted as an amendment or attachment to the city's comprehensive
plan. The small area plan must include elements which:
c Situate affordable housing near transportation options.e Plan for mixed-use land uses.r Create or improve small-scale commercial spaces andlor
commercial corridors.. Establish or improve multi-modal transportation options to
connect housing, jobs, and transit.o Establish a cultural corridor.r Protect areas ofecological significance and/or incorporate
strategies to promote public and ecosystem health.o Include public gathering space or incorporate green
infrastructure elements.
Grant Activity Description :Consultant Time
Subcontractor:Bolton & Menk
sG-26L-08-01 Page l3of 14
47
LIVABLE COMMUNITIES ACT
POLICY AND AFFORDABLE HOUSING PROGRAM DEVELOPMENT
AND SMALL AREA PLANNING GRAIIT PROGRAMS
ATTACHMENT B
PROJECT LOCATTON(S)
SMALL AREA PLANNING GRANT
This attachment comprises this page and the succeeding page(s) which contain aerial photography
or drawings that identify the specific boundaries of the Small Area for which the Grantee will be
developing a Small Area Plan.
48
LCA Agfial Prcjed'l-itle: Les Bolstad Golf Coue Master Plan I Gnnt ID: G-2026-00115
ca l:"Jm"
C.eaidr &1&2026
0.2 0.3 Asl'spu$ri@o' o.os 0.1
sG-26L-08-01 Page 14 of I4
CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
September 23,2026
No.26-77
A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A SMALL AREA
PLANNING GRANT AGREEMENT WITH THE METROPOLITAN COUNCIL FOR
$IOO,OOO FOR DEVELOPMENT OF THE LES BOLSTAD GOLF COURSE MASTER
PLAN
WHEREAS, the City of Falcon Heights has been awarded a Livable Communities Act (LCA)
Small Area Planning Grant from the Metropolitan Council in the amount of $100,000 for
development of the Les Bolstad Golf Course Master Plan, Grant # SG-26L-08-01; and
WHEREAS, the Metropolitan Council approved the grant award on August 12,2026 under
Business ltem 2026-130; and
WHEREAS, the Small Area Plan project will guide potential redevelopment of the Les Bolstad
site, including analysis of land use, infrastructure, environmental stewardship, housing,
multimodal transportation, and public realm considerations; and
WHEREAS, the project will be undertaken by Bolton & Menk as the selected consultant, and
grant-funded activities must occur during the project period of August 13,2026 through June 30,
2029; and
WHEREAS, the resulting small area plan will be presented to the City Council for consideration
and, if approved, submitted as an amendment or attachment to the City's Comprehensive Plan;
and
WHEREAS, acceptance of the grant agreement is required before consultant contracting and
reimbursement under the Metropolitan Council's Livable Communities program can begin.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights,
Minnesota:
l. That the City of Falcon Heights hereby accepts the2026 Livable Communities Act Small
Area Planning Grant award in the amount of $100,000 for the Les Bolstad Golf Course
Master Plan.
2. That the City Administrator is authorized to execute all documents necessary to accept,
administer, and implement the grant agreement SG-26L-08-01, and to carry out all
49
responsibilities as required under the Metropolitan Council's Livable Communities Act
program.
Moved by: G.tsl-SSo\ Approved
Mayor
C.
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
In Favor Attested by:5
_o Against
J
City Administrator
50
BLANK PAGE
51
FNLCOil IIEIEIIT,
THE CITY THAT SOARS
REQUEST FOR COUNCIL ACTION
Meeting Date September 23,2026
Agenda Item Consent G5
Attachment See below
Submitted By Iack Linehan, City Administrator
Item Acceptance of 2026 Metropolitan Council Livable Communities Act (LCA)
Development Grant Program Award for Fairway Commons
Description The City of Falcon Heights has been awarded a2026 Livable Communities
Demonstration Account (LCDA) Development Grant from the Metropolitan
Council for the Fairway Commons redevelopment project at'1,670 Larpenteur
Avenue W. The 2026 award totals $631,100, including fi542,600 in LCDA funds
and $88,500 in TBRA environmental cleanup funds. Only the LCDA portion of
the grant requires acceptance by City Council at this time.
City Council previously approved Resolution25-75 on July 23,2025,
authorizing staff to apply for Livable Communities funding for this project.
The Metropolitan Council approved the2026 award on August 12,2026.
Fairway Commons will deliver 110 senior housing units, including 70
affordable units and 40 market-rate units, developed by Velair Development
Company. As with past LCA project structures, the City intends to administer
the LCA portion of the grant as a pass-through loan to allow the developer to
utilize federal and state Low-Income Housing Tax Credits. The City Attorney
and developer will finalize the loan documents following Council acceptance
of the grant agreement.
Budget Impact The LCDA grant amount is$542,600. The grant is a pass-through and will not
have a direct impact on the City's budget. Funds will be disbursed on a
reimbursement basis through the Metropolitan Councils online grant system
and passed through to Velair Development Company for eligible development
activities at Fairway Commons
Attachment(s). Resolutton26-78 Authorizing Metropolitan Council Livable
Communities Act Grant Agreement for Fairway Commons
. Livable Communities Demonstration Account Development Grant
Pro gram Agreemen t (SG-26L-34-01 )
Action(s)
Requested
Staff recommends a motion to approve Resolution 26-78, accepting the2026
Livable Communities Act Development Grant from the Metropolitan Council
and authorizingthe City Administrator to sign all documents related to
accepting and administering the grant.
City of Falcon Heights, Minnesota
52
Program: Livable Communities / LCA Development
Grant #: SG-26L-34-01 Grantee: Falcon Heights
Project Title: Fairway Commons
Project Activity Period: August 13,2026 - June 30,2029
Total Grant Amount:s63 1,100.00
2026 TBRA $88,500.00
2026 LCDA $542,600.00
Council Approval:Business Item # 2026-130 (August 12,2026)
Authorized Council Representative: Kelly Nezworski, Kelly.Nezworski@metc.state.mn.us
Authorized Grantee Representative: Hannah Myhren, hannah.myhren@falconheights.org
OGC Revised:8110/26
LIVABLE COMMUNITIES ACT
CONSTRUCTION STAGE DEVELOPMENT GRANT
METROPOLITAN LIVABLE COMMUNITIES ACT
GRANT AGREEMENT
THIS GRANT AGREEMENT ("Agreement") is made and entered into by the Metropolitan Council
("Council") and the Municipality, County, or Development Authority identified above as "Grantee."
RECITALS
1. 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 ("LCA") and the policies of the Council's Metropolitan
Development Guide.
2. Minnesota Statutes sections 473 .251, 473 .252, and 473 .253 establish within the Metropolitan
Livable Communities Fund a Livable Communities Demonstration Account and Tax Base
Revitalization Account and require the Council to use the funds in the account to make grants
or loans to municipalities participating in the Local Housing Incentives Account Program
under Minnesota Statutes section 473.254 or to Counties or Development Authorities to fund
the initiatives specified in Minnesota Statutes section 473.25(b) in Participating
Municipalities.
53
3. The Grantee is a Municipality participating in the Local Housing Incentives Account program
under Minnesota Statutes section 473.254, a County, or a Development Authority.
4. The Grantee seeks funding in connection with an application for Livable Communities Act
Construction Stage Development Grant funds submitted in response to the Council's notice
of availability of grant funds for the "Funding Cycle" identified above and will use the grant
funds made available under this Agreement to help fund the "Project" identified in the
application.
5. The Council awarded Livable Communities Act Construction Stage Development grant funds
to the Grantee subject to any terms, conditions, and clarifications stated in its Council Action,
and with the understanding that the Project identified in the application will proceed to
completion in a timely manner, all grant funds will be expended prior to the "Expiration Date"
identified above and Project construction will have o'commenced" before the Expiration Date.
NOW THEREFORE, in reliance on the above statements and in consideration of the mutual
promises and covenants contained in this Agreement, the Grantee and the Council agree as follows:
I. DEFINITIONS
1.01. Definition of Terms. The terms defined in this Section have the meanings given in this
section unless otherwise provided or indicated by the context.
(a) Cleanup Costs or Costs. "Cleanup Costs" or o'Costs" means:
(l) For hazardous waste or substance contamination, the cost of implementing a voluntary
response action plan approved by the Minnesota Pollution Control Agency under Minnesota
Statutes section I 158.175. subdivision 3.
(2) For asbestos contamination, the cost of implementing a project-specific asbestos project
plan for the Site and performing asbestos-related work which is carried out by contractors
or subcontractors licensed or certified by the Commissioner of Health under the Minnesota
Asbestos Abatement Act, Minnesota Statutes sections 326.70 to326.81, in accordance
with rules prescribed by the Commissioner of Health related to asbestos abatement and
asbestos management activity, and meeting the federal Asbestos Hazard Emergency
Response Act ("AHERA") standards for asbestos.
(3) For petroleum contamination, the cost of implementing a corrective action plan for the
Site approved by the Minnesota Pollution Control Agency under Minnesota Statutes
chapter 1 15C.
(4) For lead abatement, the cost of lead abatement work performed by certified contractors
consistent with all applicable federal and state laws, rules and standards governing lead
abatement or regulated lead work on residential or commercial properties.
Commenced. For the purposes of Sections 2.08 and 6.03, "commenced" means significant
physical improvements have occurred in furtherance of the Project (e.9., a foundation is being
(b)
54
constructed or other tangible work on a structure has been initiated). In the absence of
significant physical improvements, visible staking, engineering, land surveying, soil testing,
cleanup site investigation, or pollution cleanup activities are not evidence of Project
commencement for the purposes of this Agreement.
(c)Council Action. "Council Action" means the action or decision of the governing body of the
Metropolitan Council, on the meeting date identified at Page I of this Agreement, by which
the Grantee was awarded Livable Communities Demonstration Account and Tax Base
Revitalization Account funds.
(d)County. "County" means Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington
Counties.
(e)Development Authority. "Development Authority" means a statutory or home rule charter
city, a housing and redevelopment authority, an economic development authority, or a port
authority in the Metropolitan Area.
(0 Development Project. "Development Project" means the development project described in
Attachment A and in the Grantee's application for Livable Communities Act Construction
Stage Development Grant funds that through its design and execution will deliver benefits
such as housing, connections, and/or jobs to the region. The Development Project for which
the grant funds were awarded must be undertaken within the Project Area. The Development
Project may recognize or acknowledge regional park lands and regional trails that cross
through or are located adjacent to the Project Area, but the Construction Stage Development
Project may not include regional park lands.
(g) Metropolitan Areu. "Metropolitan Area" means the seven-county metropolitan area as defined
by Minnesota Statutes section 473.121, subdivision 2.
(h) Participating Municipality. "Participating Municipality" means a statutory or home rule
charter city or town which has elected to participate in the Local Housing Incentive Account
program and negotiated affordable and life-cycle housing goals for the Municipality pursuant
to Minnesota Statutes section 473.254.
(i)Project. Unless clearly indicated otherwise by the context of a specific provision in this
Agreement, "Project" means the development or redevelopment project identified in the
application for Livable Communities Demonstration Account or Tax Base Revitalization
Account funds for which grant funds were requested that through its design and execution will
deliver benefits such as housing, connections, and jobs to the region. Grant-funded activities
typically are components of the Project.
Project Area. "Project Area" means the specific geographic area (or areas) within which the
Future Development Project must be undertaken and within which the Project will be
conducted as described in the Grantee's application. The Project Area cannot include regional
park lands. The Project Area may include regional trails that cross through or are located
adjacent to the Project Area, but neither the Future Development Project nor the Project may
provide for the alteration or elimination of any regional park lands or trails.
(i)
55
(k) Project Costs. "Project Costs" includes cleanup costs for the site and the cost of related site
acquisition, construction, demolition of existing improvements, and installation of public
improvements necessary for the Grantee to implement the Development Project and those
costs identified in Section2.04 as eligible costs.
(l)Redeployment of Repaid Grant Funds. "Redeployment of Repaid Grant Funds" means
Grantee redeployment of Repaid Grant Funds to continue supporting affordable housing
components of the Project or implement or support projects that will help the Grantee (or the
Participating Municipality within which the Project is located) meet its affordable and life-
cycle housing goals.
(m) Repaid Grant Funds. "Repaid Grant Funds" means repaid loan principal and interest grant
funds made available to the Grantee and disbursed to the Project Owner as defined in Section
2.05 (d) in the form of a loan pursuant to Sections 2.05 and 2.06 of this Agreement.
II. GRANT FUNDS
2.01. Source of Funds. The grant funds made available to the Grantee under this Agreement are
from the Livable Communities Demonstration Account and Tax Base Revitalization Account of the
Metropolitan Livable Communities Fund. The grant funds are derived from the property tax
authorized by Minnesota Statutes section 473.253, subdivision I and 473.252, subdivision 2 are not
from State or federal sources.
2.02 Grant Amount. The Councilwill grant to the Grantee the "Grant Amount" identified at Page I
of this Agreement. The Council's obligation to reimburse the Grantee for eligible grant-funded
expenditures shall not exceed the Grant Amount. Notwithstanding any other provision of this Agreement,
the Grantee understands and agrees that any reduction or termination of Livable Communities
Demonstration Account or Tax Base Revitalization Account grant funds made available to the Council
may result in a like reduction in the Grant Amount made available to the Grantee.
2.03. Authorized Use of Grant Funds. The Grant Amount made available to the Grantee under
this Agreement shall be used only for the purposes and activities described in the application for
Livable Communities Construction Stage Development Grant funds. A Project summary that describes
eligible uses of the grant funds as approved by the Council is attached to and incorporated into this
Agreement as Attachment A. Aerial photography or drawings that identifr the specific location(s)
within the Project boundaries for which grant funds must be used is attached to and incorporated into
this Agreem.nt ur Attachment B. Grant funds must be used to fund the initiatives specified in
Minnesota Statutes section 473.25(b), in a Participating Municipality.
2.04. Ineligible Uses. Grant funds must be used for eligible costs directly associated with the Project
activities for which the Council awarded grant funds. A detailed list of ineligible and eligible costs is
available in the program guidance. Grant funds shall not be used by the Grantee or others to supplant
or replace: (a) grant or loan funds obtained for the Project from other sources; or (b) Grantee
contributions to the Project, including financial assistance, real property or other resources of the
Grantee; or (c) funding or budgetary commitments made by the Grantee or others prior to the Council
Action, unless specifically authorized 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. The Grantee agrees to comply with any "business subsidy" requirements of
56
Minnesota Statutes sections 116J.993 to 116J.995 that apply to the Grantee's expenditures or uses of
the grant funds.
2.05. Loans for Low-Income Housing Tax Credit Projects. If consistent with the Grantee's
application and proposed Project activities described or identified in Attachments A and B, or if
requested in writing by the Grantee, the Grantee may structure the grant assistance to the Project as a
loan to allow the Project Owner to leverage other federal and state low-income housing tax credit
programs. The Council will approve any such requests when applicable. The Grantee may use the grant
funds as a loan for a low-income housing tax credit project, subject to the terms and conditions stated
in Sections 2.03 and2.04 and the following additionalterms and conditions:
(a) The Grantee covenants and represents to the Council that the Project is a rental housing project
that received or will receive an award of low-income housing tax credits under Section42 of
the Internal Revenue Code of 1986, as amended, and the low-income housing tax credit program
administered by the Minnesota Housing Finance Agency or a program administered by the
Minneapolis/Saint Paul Housing Finance Board or another designated housing credit agency
that suballocates low- income- housing tax credits in the Metropolitan Area.
The Grantee will execute a loan agreement with the Project Owner. Prior to disbursing any
grant funds for the Project, the Grantee will provide to the Council a copy ofthe loan agreement
between the Grantee and the Project Owner.
(b)
(c)Notwithstanding the Expiration Date identified at Page I of this Agreement and referenced in
Section 6.01, when the Grantee receives Repaid Grant Funds and elects Redeployment of
Repaid Grant Funds the Grantee shall report Redeployment of Repaid Grant Funds in the next
annual Housing Policy and Production Survey.
(d) The grant funds made available to the Grantee and disbursed to the Project Owner by the
Grantee in the form of a loan may be used only for the grant-eligible activities and Project
components for which the Grantee was awarded the grant funds. For the purposes of this
Agreement, the term "Project Owner" means the current Project Owner and any Project Owner
successor(s).
(e)
(0
Pursuant to Section 2.04, the grant funds made available to the Grantee and disbursed to the
Project Owner in the form of a loan shall not be used by the Grantee, the Project Owner, or
others to supplant or replace: (l ) grant or loan funds obtained for the Project from other sources;
or (2) Grantee contributions to the Project, including financial assistance, real property, or other
resources of the Grantee; or (3) funding or budgetary commitments made by the Grantee or
others prior to the Council Action, unless specifically authorized in Attachment A.
The Council will not make the grant funds available to the Grantee in a lump sum payment but
will disburse the grant funds to the Grantee on a reimbursement basis pursuant to Section2.ll.
By executing this Agreement, the Grantee: (1) acknowledges that the Council expects the loan
will be repaid so the grant funds may be used to help fund other activities consistent with the
requirements of the Metropolitan Livable Communities Act; (2) covenants, represents, and
warrants to the Council that the Grantee's loan to the Project Owner will meet all applicable
f ow-income housing tax credit program requirements under Section 42 of the Internal Revenue
Code of 1986, as amended (the "Code"), and the low-income housing tax credit program
(e)
57
administered by the Minnesota Housing Finance Agency or a program administered by the
Minneapolis/Saint Paul Housing Finance Board or another designated housing credit agency
that suballocates low- income- housing tax credits in the Metropolitan Area; and (3) agrees to
administer its loan to the Project Owner consistent with federal and state low-income housing
tax credit program requirements.
(h) The Grantee will, at its own expense, use all reasonable efforts to recover loan
proceeds: (l) whenever the Project Owner becomes obligated to repay the Grantee's loan or
defaults on the Grantee's loan (2) when the initial loan term expires, unless the Council
agrees in writing that the Grantee may make the grant funds available as a loan to the Project
Owner for an "extended use period"; and (3) if noncompliance with low-income housing tax
credit program requirements or some other event triggers the Project Owner's repayment
obligations under its loan agreement with the Grantee. Except as otherwise provided in this
Paragraph (g), the Grantee must repay to the Council all loan repayment amounts the Grantee
receives from the Project Owner. The Grantee shall not be obligated to repay the grant funds
to the Council except to the extent the Project Owner repays its loan to the Grantee, provided
the Grantee has exercised the reasonable degree of diligence and used administrative and legal
remedies a reasonable and prudent housing finance agency would use to obtain payment on a
loan, taking into consideration (if applicable) the subordinated nature of the loan.
As an alternative to such loan proceeds recovery, the Grantee may elect Redeployment of
Repaid Grant Funds. If the Grantee elects Redeployment of Repaid Grant Funds, the Grantee
shall report such Redeployment of Repaid Grant Funds in its next annual Housing Policy and
Production Survey. Upon the Council's review of any Redeployment of Repaid Grant Funds
identified in the Grantee's Housing Policy or Production Survey or otherwise, the Council
reserves the right to request return of such funds if, after review, the Council determines such
Redeployment of Repaid Grants Funds does not comply with the Livable Communities Act
program requirements, or affordable and life-cycle housing goals. Upon the Council's request,
the Grantee shall promptly return the Repaid Grant Funds. If the grantee fails to report the
Redeployment of Repaid Grant funds in its next annual Housing Policy and Production Survey,
the Council may encumber or suspend all other active Livable Communities grants awarded to
the Grantee and will not accept new applications from the Grantee to the Livable Communities
program untilthe Survey is completed.
(i)If the Grantee earns any interest or other income from its loan agreement with the Project Owner,
the Grantee must repay to the Council all interest or other income the Grantee receives from
the Project Owner. Alternatively, the Grantee may elect redeployment of interest or other
income received from the Project Owner. If the Grantee elects redeployment of such interest
or other income so received, the Grantee shall report such redeployment in its next annual
Housing Policy and Production Survey. Upon the Council's review of any such redeployment
identified in the Grantee's Housing Policy or Production Survey or otherwise, the Council
reserves the right to request return of such interest or other funds if, after review, the Council
determines such redeployment of does not comply with the Livable Communities Act program
requirements, or affordable and life-cycle housing goals. Upon the Council's request, the
Grantee shall promptly return the interest or other income received from the Project Owner.
The Grantee is not obligated to eam any interest or other income from its loan agreement with
the Project Owner, except to the extent required by any applicable law.
58
2.06. Revolving or Deferred Loans. If consistent with the application and the Project summary or
if requested in writing by the Grantee, 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), otherwise make the grant funds available on a "revolving" basis for the purposes
of implementing the Project activities described or identified in Attachments A and B.
As an alternative to such loan proceeds recovery for revolving loans, the Grantee may elect
Redeployment of Repaid Grant Funds. If the Grantee elects Redeployment of Repaid Grant Funds,
the Grantee shall report such Redeployment of Repaid Grant Funds in its next annual Housing Policy
and Production Survey. Upon the Council's review of any Redeployment of Repaid Grant Funds
identified in the Grantee's Housing Policy or Production Survey or otherwise, the Council reserves
the right to request return of such funds if, after review, the Council determines such Redeployment
of Repaid Grants Funds does not comply with the Livable Communities Act program requirements,
or affordable and life-cycle housing goals. Upon the Council's request, the Grantee shall promptly
return the Repaid Grant Funds.
2.07. Restrictions on Loans or Grants to Subrecipients. The Grantee shall not permit any
subgrantee, subrecipient, or contractor to use the grant funds for loans or grants to any subrecipient
at any tier unless the Grantee obtains the prior written consent of the Council. The requirements of
this Section 2.07 shall be included in all subgrants, subrecipient agreements, and contracts.
2.08. Project Commencement and Changes. The Project for which grant funds were requested
must be "commenced" prior to the Expiration Date. If the grant funds will be used only for land
acquisition and holding costs as authorized by Section 2.03 and will not be used for any other
grant-eligible activities, the property acquired for the Project must be purchased prior to the
Expiration Date. The Grantee must promptly inform the Council in writing of any significant changes
to the Project for which the grant funds were awarded, as well as any potential changes to the grant-
funded activities described or identified in Attachments A and B. Failure to inform the Council of
any significant changes to the Project or significant changes to grant-funded components of the
Project, and use of grant funds for ineligible or unauthorized purposes, will jeopardize the Grantee's
eligibility for future LCA awards. Grant funds will not be disbursed prior to Council approval of
significant changes to either the Project or to grant-funded activities described or identified in
Attachments A and B.
2.09. Budget Variance. The Grantee may reallocate up to twenty percent (2Uo/o)of the Grant
Amount among the grant-funded activities provided: (a) the reallocation does not reallocate Tax
Based Revitalization Account fund to activities not eligible for that fund source (b) the grant funds
may be used only for Project activities for which the Council awarded the grant funds; (c) the
reallocation does not significantly change the Project deliverables; and (d) the Grantee receives
written permission from Council staff prior to reallocating any grant funds. Council staff may
administratively approve budget reallocation requests that exceed twenty percent (20%) of the Grant
Amount only if the reallocation does not significantly change the Project deliverables.
Notwithstanding the aggregate or net effect of any variances, the Council's obligation to provide grant
funds under this Agreement shall not exceed the Grant Amount identified at Page I of this Agreement.
2.10. Loss of Grant Funds. The Grantee agrees to remit to the Council in a prompt manner: any
unspent grant funds, including any grant funds that are not expended prior to the Expiration Date
identified at Page 1 of this Agreement; any grant funds that are not used for the authorized purposes;
and any interest earnings described in Section 2.12 that are not used for the purposes of implementing
59
the grant-funded Project activities described or identified in Attachments A and B. For the purposes
of this Agreement, grant funds are "expended" prior to the Expiration Date if the Grantee pays or is
obligated to pay for expenses of eligible grant-funded Project activities that occurred prior to the
Expiration Date and the eligible expenses were incurred prior to the Expiration Date. Unspent or
unused grant funds and other funds remitted to the Council shall revert to the Council's Livable
Communities Demonstration Account or Tax Base Revitalization Account for distribution through
application processes in future Funding Cycles or as otherwise permitted by law.
2.11. Payment Requests, Documentation, and Disbursements. The Council will disburse grant
funds in response to payment requests submitted by the Grantee through the Council's online grant
management system and reviewed and approved by the Council's authorized agent. The Councilwill
make the final determination whether the expenditures are eligible for reimbursement under this
Agreement, and verify the total amount requested from the Council. Reimbursement of any costs does
not constitute a waiver by the Council of any Grantee noncompliance with this Agreement.
The Council shall disburse grant funds for all grant-eligible expenditures within thirty-five (35) days of
the receipt of satisfactory documentation from the Grantee. Notwithstanding the provision of this
section 2.11, the Council will not disburse any grant funds to the grantee unless the grantee (or
Participating Municipality within which the project is located) has adopted a Fair Housing Policy as
required by section 3.04.
The Councilwill reimburse up to 90 percent of the awarded grant funds. The remaining l0 percent
may be withheld before a final payment is issued untilthe Grantee: (a) completes the Project or grant
deliverables identified in the project summary; and (b) submits a final request for payment and the
Final Report as required under Section 4.03. If the required deliverables are not submitted within the
term and closeout period specified in Section 6.01, the Council shall have no obligation to disburse
the remaining 10 percent. In such cases, the remaining funds shall revert to the Council's Livable
Communities Demonstration Account or Tax Base Revitalization Account for redistribution through
future Funding Cycles or as otherwise permitted by law.
2.12. Interest Earnings. 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 or identified in Attachments A
and B.
2.13. 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.
2.14. Resale Limitations. The Grantee must impose resale limitations regarding the disposition of
any equity realized by the purchasers of "affordable" units if grant funds received from the Council
under this Agreement are used for homeownership development gap financing in the Project
described or identified 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 development gap provided by the public
investment in the form of grant funds received from the Council is maintained for reuse in conjunction
with other affordable housing efforts and does not become a windfall for any purchaser who might
sell the home prior to expiration of a predetermined resale limitation period. If a purchaser sells the
"affordable" homs prior to expiration of the resale limitation time period, an equitable proportion of
the development gap filled by grant funds received from the Council under this Agreement must be
60
recaptured by the Grantee within twenty-four (24) months of the triggering resale event and applied
to a similar affordable housing project within the Participating Municipality or returned to the
Council. Unless otherwise agreed to by the Council and the Grantee, the length ofthe resale limitation
time period and the proportion of the affordability gap to be recovered will be consistent with resale
limitation time periods and repayment schedules stated in the Project application. The Grantee will
provide the Council with a copy of the resale limitations the Grantee imposed on the grant-assisted
affordable units, which may include copies of declarations or restrictive covenants recorded against
the property.
III. AFFORDABILITY; AFFIRMATIVE FAIR HOUSING
3.01. Affordability Term. If the Project for which the grant funds were awarded includes
affordable housing units, the Grantee shall, through written instruments or otherwise, ensure the
affordable units will remain affordable for a minimum period of fifteen (15)years. The Grantee's
obligation under this Section may be satisfied if other Project funding sources (e.g.,the Minnesota
Housing Finance Agency or the U.S. Department of Housing and Urban Development ("HUD")) or
state or federal laws (e.g., low-income housing tax credit programs) require an affordability term of
at least fifteen (15) years. For the purposes of this Section, "affordable housing unit" means a rental
unit that is affordable to households living at sixty percent (60%) or less of the Area Median Income
("AMI") or an ownership unit that is affordable.to households living at 80%o AMI or less, as
established by HUD, unless the Grantee's application stated a lower affordability standard, in which
case the Grantee's lower affordability standard shall apply. The affordability requirements of this
section shall survive the expiration or termination of this Agreement. If the affordable housing units
are made available for homeownership then they are subject to the resale limitations specified in
Section 2.14.
The Grantee shall make all commercially reasonable efforts to ensure that the affordable units remain
affordable for at least l5 years. However, if Grantee reasonably determines that, at any point during
the l5-year term, the Project owner cannot meet the affordability requirement defined above, the City
shall provide the Council with written notice describing the factual basis for its determination. The
parties shall meet and confer within thirty (30) days after the date of such written notice with the
objective of attempting to arrive at a mutually acceptable solution. If no mutually acceptable solution
can be reached, either party may take such action as may be permitted under law or equity.
3.02. Affirmative Fair Housing Marketing Plans. If the Project for which the grant funds were
awarded is a housing project or includes housing units (whether market rate or affordable), the
Grantee shall, through written instruments or otherwise, ensure the Project owner (and any subsequent
owner(s)) adopts and implements an affirmative fair housing marketing plan for Project housing units.
For the purposes of this section, "affirmative fair housing marketing plan" means an affirmative fair
housing marketing plan that substantially conforms to affirmative fair housing marketing plans
published by HUD, or sample affirmative fair housing marketing plans published by the Minnesota
Housing Finance Agency. The affirmative fair housing marketing plan requirement under this section
shall continue for the minimum affordability term specified in Section3.0l and shall survive the
expiration or termination of this Agreement.
3.03. Section 8 Housing Choice Vouchers. If the Project is a rental housing project or includes
housing units (whether market rate or affordable), the Project must participate in the federal Housing
Choice Voucher program and offer some rents that do not exceed local voucher payment standards,
unless the entire Project seryes only households living on less than50oh of the AMI, and the entire
61
property is incompatible with the Housing Choice Voucher program. The Grantee shall, through
written instruments or otherwise, ensure the Project owner (and any subsequent owner(s)) adopts and
implements a policy under which the Project owner will not refuse to lease Project units to households
or individuals participating in the Housing Choice Voucher program because those households or
individuals are Housing Choice Voucher program participants. The Housing Choice Voucher
requirement under this section shall continue for the minimum affordability term specified in
Section 3.01 and shall survive the expiration or termination of this Agreement.
3.04. Fair Housing Policy. The Grantee (or Participating Municipality in which the Project is
located) must have adopted a Fair Housing Policy. For the purposes of this section, the term "Fair
Housing Policy" means a written statement regarding the Grantee's (or Participating Municipality's)
commitment to fair housing that substantively includes at least the following elements: a purpose
statem'ent; procedures for responding to fair housing concerns and complaints; and a designated
individual or staff position responsible for fair housing issues. A best practices guide, as well as a
copy of a model local fair housing policy is available on the Council's website.
IV. ACCOUNTING, AUDIT, AND REPORT REQUIREMENTS
4.01. 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 Sections 6.01 and 6.02,
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 or,identified in Attachments A and B or
six (6) years following the expenditure of the grant funds, whichever occurs later, accounting methods
shall be in accordance with generally accepted accounting principles.
4.02. 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 or six (6)years following the expenditure of the
grant funds, whichever occurs later. Pursuant to Minnesota Statutes section 16C.05, subdivision 5,
the books, records, documents, and accounting procedures and practices of the Grantee that are
relevant to this Agreement are subject to examination by the Council and either the Legislative
Auditor or the State Auditor, as appropfiate, for a minimum of six (6) years.
4.03. Report Requirements. The Grantee will report to the Council on a semi-annual basis by
January 3l (for the period of July I through December 3l) and July 3l (for the period January I
through June 30) of each calendar year during the term of this Agreement. The Grantee reports shall
describe the status ofthe Project activities described or identified in Attachments A and B. The report
shall also describe the Project spending for the current reporting period and projected spending for
the future reporting periods. The Grantee also must complete and submit to the Council a Final Report
before the final disbursement of grant funds will be approved. The form and content of the semi-
annual progress reports and the Final Report will be determined by the Council.
In addition to the required progress reports and the Final Report, if the Project received funding for
environmental cleanup activities, the Grantee must submit to the Council by April l5 of the year
following the expiration of this Agreement and by April l5 of each of the succeeding three (3) years,
an annual written report that includes information about redevelopment activities, net tax capacity of
62
the Site, and jobs resulting from site environment cleanup. The form and content ofthe annual written
report will be determined by the Council. These reporting requirements and the reporting
requirements of Sections 2.05 and2.06 shall survive the expiration or termination of this Agreement.
4.04. Certificate(s) of Completion. Upon completion of the environment cleanup, the Grantee will
provide to the Council all relevant certificate(s) of completion that pertain to the grant funded
activities, as identified in program guidance.
(a) For hazardous waste or substance contamination, a copy of a certificate of completion for the
Site issued by the Minnesota Pollution Control Agency pursuant to Minnesota Statutes
section I158.175, or a letter from the Agency indicating that the approved voluntary response
action plan for the Site has been implemented to the satisfaction of the Agency and that the
Agency is issuing a determination that no further action is required under Minnesota Statutes
sections I 1 5B.01 to I 15B.08 to address the identified release; or
(b) For asbestos contamination, either: (l) a copy of a statement from the Grantee's licensed asbestos
abatement contractor that the project-specific asbestos project plan and asbestos-related work for
the Site have been completed in accordance with the rules ofthe Minnesota Department of Health;
or (2) a final asbestos abatement implementation report that shows the project-specific asbestos
project plan and asbestos-related work for the Site have been completed in accordance with the
rules of the Minnesota Department of Health; or
(c) For petroleum contamination, a copy of a site closure letter issued by the Minnesota Pollution
Control Agency pursuant to Minnesota Statutes chapter I l5C; or
(d) For lead abatement or regulated lead work: (1) a copy of the contractor firm certification to
conduct lead-based paint activities in residential or child-occupied facilities per Code of Federal
Regulations, title 40, section 745.89 and Minnesota Statutes section 144.9505; and (2) a statement
or other documentation from the certified contractor that the lead abatement or regulated work at
the Site has been completed in accordance with applicable provisions of Code of Federal
Regulations, title 40, part745 and state laws, rules and standards governing lead abatement
according to the Lead Poisoning Prevention Act, Minnesota Statutes sections 144.9501
to 144.9512 and Minnesota Rules parts 4761.2000 to 4761.2700.
4.05. 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 forthe scope and nature of the Project activities funded by this
Grant, and that any environmental issues have been or will be adequately addressed.
V. RECOVERY AND REPAYMENT
5.01. Recovery of Funds. If the Grantee recovers funds pursuant to an action under Minnesota
Statutes section I158.04, or other law, to recoverthe reasonable and necessary Project Costs incurred
to clean up the Site, the Grantee shall repay to the Council that portion of the grant as provided in
Section 5.04.
5.02. Assignment of Rights. Upon request of the Council, the Grantee shall assign to the Council
the Grantee's right to recover the funds described in Section5.Ol, shall prepare and submit a
63
certification ofthe Project Costs incurred, and shall cooperate in any cost recovery action brought by
the Council.
5.03. Expenses of Recovery. The reasonable litigation expenses or other costs of legal or technical
assistance incurred by the Grantee, the Council, or both, may be deducted from recovery obtained in
accordance with Sections 5.01 or 5.02 and reimbursed to the entity incurring such costs before
proceeds of the recovery are distributed in accordance with Section 5.04.
5.04. Reimbursement. Subject to the deduction provided in Section 5.03, amounts recovered either
by the Grantee or the Council from responsible persons and all other amounts otherwise received by the
Grantee or the Council for cleanup of the Site shall be used to reimburse the Grantee, the Council, or
any other no responsible party who contributed funds for cleanup of the Site in proportion to their
respective payments for response costs.
5.05. Survival of Recovery and Repayment Provisions. The provisions of Sections 5.01 through
5.04 shall survive the expiration or termination of this Agreement.
VI. AGREEMENT TERM
6.01 Term and Close Out. This Agreement is effective upon execution of this Agreement by the
Council. Unless terminated pursuant to Section 6.02, this Agreement expires on the Expiration Date
identified at Page I of this Agreement. Failure of the Grantee to timely execute this Agreement does
not extend the Expiration Date. The Grantee has 90 calendar days after the Expiration Date to provide
documentation and information necessary to close out this Agreement and receive disbursements for
eligible grant-funded Project activities as prescribed in Section 2.03. If the Grantee fails to provide
necessary documentation and information during this 90 day close out period, the Grantee shall not
be eligible to receive any unpaid grant funds and the Council will not disburse any unpaid grant funds
to the Grantee. This 90 day close out period does not extend any Grantee reporting deadlines
established in this Agreement or authorize the Grantee to expend or commit any grant funds after the
Expiration Date. All grant funds not expended by the grantee prior to the expiration date and requested
for reimbursement prior to the end of the closeout period shall revert to the Council.
6.02. 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 to this Agreement. If this Agreement is terminated prior to the
Expiration Date, the Grantee shall receive payment on a pro rata basis for eligible Project activities
described or identified in Attachments A and B that have been completed prior to the termination.
Termination of this Agreement does not alter the Council's authority to recover 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.
6.03. Amendments and Extension. The Council and the Grantee may amend this Agreement by
mutual agreement. Amendments or an extension of this Agreement shall be effective only on the
execution of written amendments signed by authorized representatives of the Council and the Grantee.
If the Grantee needs a change to the Project, additional time within which to complete the grant-funded
64
activities and Commence the Project, a change in the budget, or a change in grant-funded activities the
Grantee must submit to the Council at least ninety (90) calendar days prior to the expiration date, a
complete, written amendment request. All requirements must be met for a request to be considered
complete. The expiration date may be extended, but the period of any extension(s) shall not exceed two
(2) years beyond the original expiration date identified at Page I of this agreement.
VII. GENERALPROVISIONS
7.01. 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, gender identity,
marital status, status with regard to public assistance, familial status, membership or activity in a 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 all aspects of employment, rates of pay
and other forms of compensation, and selection for training.
7.02. 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.
7.03. Liability. Subject to the limitations provided in Minnesota Statutes chapter 466,to the fullest
extent permitted by law, the Grantee shall defend, indemnifr, 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 I 158, the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (CERCLA) as amended, United States Code,
TitIe42, sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976
(RCRA) as amended, United States Code, title 42, sections 6901 et seq. This obligation shall 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 Section shall
survive the expiration or 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.
7.04. Acknowledgments and Signage. The Grantee will acknowledge the financial assistance
provided by the Council in promotional materials, press releases, reports, and publications relating to
the Project. The acknowledgmerit will contain the following or comparable language:
Financingfor this project was provided by the Metropolitan Council
Metropolitan Livable Communities Fund
Until the Project is completed, the Grantee shall ensure the above acknowledgment language, or
alternative language approved by the Council's authorized agent, is included on all signs (if any)
located at Project or construction sites that identify Project funding partners or entities providing
financial support for the Project. The acknowledgment and signage should refer to the "Metropolitan
Council" (not "Met Council" or "Metro Council").
65
7.05. 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 or identified in Attachments A and B. The Grantee and its
developer(s), if any, must comply with all applicable licensing, permitting, bonding, authorization, and
approval requirements of federal, state, local governmental, and regulatory agencies, including
conservation districts.
7.06, Subgrantees, Contractors, and Subcontractors. The Grantee shall include in any subgrant,
contract, or subcontract for Project activities appropriate provisions to ensure subgrantee, contractor,
and subcontractor compliance with all applicable state and federal laws and this Agreement. Along
with such provisions, the Grantee shall require that contractors and subcontractors performing work
covered by this Grant obtain all required permits, licenses and certifications, and comply with all
applicable state and federal Occupational Safety and Health Act regulations. If the Project for which
the grant funds were awarded includes affordable units, the Grantee's subgrant agreement(s) shall
expressly include the affordability and affirmative fair housing marketing plan requirements of
Sections 3.01 and 3.02.
7.07 Stormwater Discharge and Water Management Plan Requirements. If any grant funds
are used for urban site redevelopment, the Grantee shall at such redevelopment site meet or require
to be met all applicable requirements of:
(a) Federal and state laws relating to stormwater discharges including, without limitation, any
applicable requirements of Code of Federal Regulations , title 40, parts 122 and 123; and
(b) The Council's 2050 Water Resources Policy Plan and the local water management plan for the
jurisdiction within which the redevelopment site is located.
7.08. Authorized Agent. Payment requests, written reports, and correspondence submitted to the
Council pursuant to this Agreement shall be directed to the Authorized Agent named below or their
successor through the Council's online grants administration portal or to the below contact
information:
Attn: Kelly Nezworski
Metropolitan Council
CD & MTS Finance and Administration
390 Robert Street North
Saint Paul, Minnesota 55101-1805
ke I llz. nezworski @rnetc. state. m n. us
7.09. Non-Assignment. Minnesota Statutes section 473.253, subdivision 2 requires the Councilto
distribute grant funds to eligible "municipalities," metropolitan-area counties, or "development
authorities" for projects in municipalities participating in the Local Housing Incentives Account
program. Accordingly, this Agreement is not assignable and shall not be assigned by the Grantee.
7.10. Authorization to Reproduce Images. The Grantee certifies that the Grantee: (a) is the
owner of any renderings, images, perspectives, sections, diagrams, photographs, or other
copyrightable materials (collectively, "copyrightable materials") that are in the Grantee's application
or are submitted to the Council as part of the grant application review process or after grant award, or
that the Grantee is fully authorized to grant permissions regarding the copyrightable materials; and
66
(b) the copyrightable materials do not infringe upon the copyrights of others. The Grantee agrees the
Council has a nonexclusive royalty-free license and all necessary permissions to reproduce and
publish the copyrightable materials for noncommercial purposes, including but not limited to press
releases, presentations, reports, and on the internet. The Grantee also agrees the Grantee will not hold
the Council responsible for the unauthorized use of the copyrightable materials by third parties.
7.11. 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.
7.12. Counterparts. This Agreement may be executed in counterpart, each of which counterpart
constitutes an original, but both of which together constitute one instrument.
7.13. Electronic Signatures. The electronic signatures of the Council's and the Grantee's
authorized representatives shall be valid as an original signature ofthe authorized representatives and
shall be effective to bind the Council and the Grantee under this Agreement. This Agreement
containing, or to which there is affixed, an electronic signature shall be deemed to: (a) be oowritten"
or "in writing"; (b) have been signed; and (c) constitute a record established and maintained in the
ordinary course of business and an original written record when printed from electronic files.
"Electronic signature" also means a manually signed original signature that is then transmitted by any
electronic means, including without limitation a faxed version of an original signature or an
electronically scanned and transmitted version (e.g.,via PDF) of an original signature. The Council's
orthe Grantee's failure to produce the original signature of any electronically transmitted signature
shall not affect the enforceability of this Agreement.
This space intentionally left blank. Signature page follows.
67
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 of final execution
by the Council.
GRANTEE METROPOLITAN COUNCIL
68
ATTACHMENT A
PROJECT SUMMARY
This attachment comprises this page and the succeeding page(s) which contain(s) a summary of the
Project identified in the application for Livable Communities Act Construction Stage Development
Grant funds submitted in response to the Council's notice of availability of Livable Communities
Act Construction Stage Development Grant funds for the Funding Cycle identified at Page I of this
Agreement. The summary reflects the proposed Project for which the Grantee was awarded grant
funds by the Council Action, 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 Agreement by reference and is made a part of this Agreement
as follows. If the application or any provision of the applicatiorr conflicts with or is inconsistent with
the Council Action, other provisions of this Agreement, or the Project summary contained in this
Attachment A, the terms, descriptions and dollar amounts reflected in the Council Action or contained
in this Agreement and the Project summary shall prevail. For the purposes of resolving conflicts or
inconsistencies, the order of precedence is: (1) the Council Action; (2) this Agreement; (3) the
Project summary; and (4) the grant application.
69
ATTACHMENT A - PROJECT SUMMARY
Grant Number: SG-26L-34-01
Grantee Name: Falcon Heights
Project Title: Fairway Commons
Project Location: 1670 Larpenteur Ave West
City or County: Falcon Heights
Council District: District l0 - Peter Lindstrom
Project Description/
Work Scope:
Construct 70 affordable senior apartments and 40 market-rate senior
units.
Outcomes:Units Bedrooms Affordability Tenure Housing
Type
Construction
Type
4 Studio/Efficiency Affordable
at 3l-50%o of
Area Median
Income
Rental Apartment New Units
Affordable at3l-50%o of Area Median Income subtotal 4
54 One BR Affordable
at 5l-60%;o of
Area Median
Income
Rental Apartment New Units
Affordable at 5l-60Yo of Area Median Income subtotal 54
22 One BR Affordable
at 6l-80% of
Area Median
Income
Rental Apartment New Units
l8 Two BR Affordable
at 6l-800/o of
Area Median
Income
Rental Apartment New Units
Affordable at 6l-80o/o of Area Median Income subtotal 40
t2 Studio/Efficiency Affordable
at or below
30o/o of Area
Median
Income
Rental Apartment New Units
Affordable at or below 30% of Area Median Income
subtotal
12
Grand Total ll0
70
3+ BR Total 0
Includes:. Net Tax Capacity: Current: S20,960.00, Projected: $58,862.15. energy-saving activities, beyond in-unit fixtures and furnishings. designs beyond minimum Americans with Disabilities Act
requirements through universal design or similar strategies
Project Activity
Description:
Environmental Cleanup, General Construction
Project Deliverables See LCA Grant Administration Guide for list of required deliverables for
each budget activity.
Developer/subcontractor:MWF Properties, LLC (dlbla Velair Development Company) 2 Meridian
Crossings, Suite 250 Minneapolis, MN 55423
Project Budget
Total Metropolitan Council Budget:$631,too.oo
TBRA Environmental Cleanup Budget can only be used for eligible clean up expenses. Funds
cannot be transferred between TBRA and LCDA budget lines.
Total TBRA $88,500.00
Environmental Cleanup $88,500.00
The costs for the investigation work incurred within 180 days (October 17,2025) before the
application submission deadline are eligible for reimbursement.
Total LCDA $542,600.00
General Construction $542,600.00
71
ATTACHMENT B
PROJECT LOCATTON(S)
This attachment comprises this page and the succeeding page(s) which contain aerial photography or
drawings that identiff the specific location(s) within the Project boundaries for which the Grantee must
use the grant funds. The attached photography or drawings also may identify the types of eligible
activities for which the grant funds must be used at specific locations within the Project boundaries.
72
LCA Agfial Pnfed Title: Fainvay ,hmmons I Gnnt ID: G-2016'00119
tlBEl fl,ltu118 hffaha*lilel.sE 4rt{rblH:r:tlrshf r iarl r!l. t! !qrr*ld!.'ts
o.040.03 4
F{IV,rgLr$,,160 D.01 0.01
erff,ffi:*
73
CITY OF F'ALCON HEIGHTS
COUNCIL RT,SOLUTION
September 23,2026
No.26-78
A RESOLUTION AUTHORIZING THE ACCEPTANCE OF THE 2026 LIVABLE
COMMUNTTTES ACT (LCA) DEVELOPMENT GRANT FROM THE
METROPOLITAN COUNCIL FOR FAIRWAY COMMONS
WHEREAS, the City of Falcon Heights applied for Livable Communities Act (LCA)
Development Grant Program funding for the Fairway Commons redevelopment project at 1670
Larpenteur Avenue West, consisting of I l0 senior housing units including 70 affordable units;
and
WHEREAS, the Metropolitan Council, through its Livable Communities Demonstration
Account (LCDA), has awarded the City a2026 Development Grant totaling $631,100, of which
5542,600 in LCDA funds require City acceptance; and
WHEREAS, the Metropolitan Council approved the2026 LCA award on August 12,2026
under Business ltem2026-130; and
WHEREAS, the Fairway Commons development, led by Velair Development Company, will
deliver affordable senior housing serving households across multiple Area Median Income
affordability levels as described in the grant agreement; and
WHEREAS, the City previously approved Resolution 25-75 on July 23,2025 authorizing staff
to apply for Livable Communities funding for this project; and
WHEREAS, the City intends to administer the LCDA portion of the grant as a passthrough loan
to support the project's low-income housing tax credit financing structure and will finalize all
necessary documents with the developer following acceptance of the grant agreement.
NOW THEREFORE BE IT RESOLVED by the City Councilof the City of Falcon Heights,
Minnesota:
1. That the City of Falcon Heights hereby accepts the 2026 Livable Communities Act
Development Grant award in the amount of $542,600 in LCDA funds for the Fairway
Commons project.
2. That the City Administrator is authorized to execute all documents necessary to accept,
administer, and implement the grant agreernent SG-26L-34-01, and to carry out all
associated responsibilities as required under the Metropolitan Council's Livable
Communities Act program.
74
Movedby: G"-t3'\3'P5s's.,Approved
5 InFavor Attested by:
Against
C.
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
C Administrator
75
BLANK PAGE
76
FNLEOII IIEIEIITS
THE CITY THAT SOARS
REQUEST FOR COUNCIL ACTION
Meeting Date September 23,2026
Agenda Item Consent G6
Attachment See below
Submitted By Megan Siddons, Administrative and
Communications Coordinator
Item Resignation of Sarah Caflisch from the Community Engagement Commission
and Vacancy Declared
Description Sarah Caflisch was appointed to the Community Engagement Commission on
May 28,2025, was currently serving as Secretary, and has been a valuable
member of the commission since her appointment.
Staff appreciates Sarah's contributions and for the time they have spent on the
Community Engagement Commission.
A vacancy will now be declared on September 24,2026, and posted for at least
30 days, allowing applications to be received and considered for this one (1)
open Community Engagement Commissioner vacancy.
(An existing vacancy on the CEC will close on September 27,2026; this is
separate from it).
Budget Impact N/A
Attachment(s). Resignation of Sarah Caflisch
. Resolutton26-79 Accepting Resignation of Sarah Caflisch from the
CommuniW Engagement Commission
Action(s)
Requested
Staff recommends approval of the attached resolution, accepting the
resignation of Sarah Caflisch from the Community Engagement Commission
and declaring a vacancy.
City of Falcon Heights, Minnesota
77
From: Sarah Caftisch
Sent: Monday, September 21,20261 1 :00 AM
To: Megan Sid dons <mega n.siddons@fa tcon heightsmn.gov>
Subject: My participation on the Community Engagement Commission
Hi Megan, I hope you had a great weekend and thanks for your great communication and
coordination of the commission.
I am writing to let you know that I cannot make tonight's meeting and wil,l, need to resign
from the commission due to increased commitments that have arisen in both work and
famity.
I have enjoyed my time getting to know city staff and neighbors and feel sad to step down
Please let me know if there is a process I need to fottow to resign
Thank you, Sarah Caftisch
78
CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
September 23,2026
No.26-79
RESOLUTION ACCEPTING THE RESIGNATION OF SARAH CAF'LISCH FROM
THE FALCON HEIGHTS COMMUNITY ENGAGEMENT COMMISSION
WHEREAS, the City appointed Sarah Caflisch as a member of the City of Falcon Heights
Community Engagement Commission on May 28,2025; and
WHEREAS, Sarah Caflisch has submitted her resignation from the Community Engagement
Commission effective immediately.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights,
Minnesota:
l. That the resignation of Sarah Caflisch from the Falcon Heights Community Engagement
Commission is accepted by the City Council of the City of Falcon Heights.
Moved by:Go:\^\:os Approved
lc.
Mayor
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
In Favor Attested by
Against C Administrator
5
J
79
BLANK PAGE
80
ITEM FOR DISCUSSION
FNLCOH IIEIEIITS
rHE CITY THAT SOARS
Meeting Date September 23,2026
Agenda Item Policy H1
Attachment Resolution 26-80
Submifted By Jack Linehan, City Administrator
Item Adoption and Certification of the 2027 Preliminary Levy
Description Each year, the City must set and certify to Ramsey County a preliminary
levy by September 30th.
Details for the preliminary 2027 General Fund Budget:
1) The amount of LGA state aid was increased by an amount of $618 by
the Legislature for budget year 2027. LGA will increase from $863,846
tn 2026 to $864,464 n 2027 .
2) Fiscal Disparity distribution dollars for 2027 increased by $39,344
from the2026level.
3) Increase of $182,606 expense for police services with St. Anthony
Village.
4) An increase in the cost-of-living-adjustment for all employees of 3%.
5) An annual step adjustment for all employees following the grade and
step system.
6) A transfer of $50,000 from Special Revenue Fund 211 - Parking
Management. This is the surplus from the pay-by-mobile program.
This brought the levy increase down almost two percentage points.
Im to the Overall TaxJPET L
2023 2024 2025 2026 Proposed
2027
Change
General
Fund
Lew
2,2U,612 2,510,396 2,626,701.2,712,78'L 2,925,466 212,685
Debt
Service
Levy
189,686 189,686 148,058 1.69,627 170,680 1.,053
TOTAL
LEVY
2,474,298 2,700,072 2,774,759 2,882,408 3,096,146 213,738
City of Falcon Heights, Minnesota
81
Impacts on d Median Value Home in Falcon Heights:
2023 2024 2025 2026 Proposed
2027
Change
2026 to
2027
Median
Value
Home
$362,150 fi373,950 $40't,750 $4\'t,750 $4ozoso -fi4,700
Taxable
Median
Value
fi357,504 $370,366 $391,358 $402,258 $397,135 -$5,123
Tax $3,575 $3,704 $3,9't4 w,023 $3,972 -$sr
City Tax
Rate
35.174%36.979%35Xes%37.614%39.130o/o 1.516%
City
Taxes
fi1.,257 fi'1.,370 '1,401 $1,513 $1,554 $+r
Net $e6 $113 $gr fi112 $+r
The proposed2027 increase on a median value home is estimated to he $41
per year or $3.42per month.
Budget Impact Dependent upon adoption of the 2027 General Fund Budget.
Attachment(s). Resolution 26-80 Certification of the Preliminary Levy for 2027. Documents for Total Proposed Levy Certification with Ramsey
County
. Documents for Debt Levy Certification with Ramsey County
Action(s)
Requested
Staff recommends that the Falcon Heights City Council approve the attached
resolution setting the Preliminary 2027 Tax Levy at fi3,096,1.46, an increase of
7.42%.
82
CITY OF FALCON HEIGHTS
COUNCIL RESOLUTION
September 23,2026
No.26-80
RESOLUTION ADOPTING THE 2027 TAX LEVY FOR THE CITY OF FALCON
HEIGHTS, COUNTY OF RAMSEY, STATE OF MINNESOTA
BE IT RESOLVED by the Mayor and City Council of the City of Falcon Heights, County
of Ramsey, State of Minnesota, that the following sums of money be levied for the taxes
payable 2027,upon the taxable property in the City of Falcon Heights, for the following
purposes:
CERTIFIED LEVY
GENERAT FUND $2,925,466
DEBT SERVICE $91,122
OTHER - TAX ABATEMENT PORTION $79,559
TOTAL LEVY $3,096,146
BE IT FURTHER RESOLVED that the City Administrator is hereby directed to transmit
a certified copy of this Resolution to the County Auditor and should extend the tax levy
in the amount of $3,096,'1.46 tobe collected for the year 2027.
Moved by: .A Oj t"Approved by
Mayor
C.
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
In Favor Attested by€
o J
Against Administrator
83
RAMSEY COUNTY
Property Tax Services
COUNTY, CITY AND SPECIAL TAXING DISTRICT LEVY CERTIFICATION
FOR PROPOSED TAXES PAYABLE IN 2027
of Falcon
MARKET VALUE BASED LEVIES
e)
10)
11) Total Market Value Based Referendum Levies
(Total 9 & 10)$$
TOTAL LEVIES
IrI
12) Total Certified Levy
(Total8&11)$2,SS2,4OSl 0 3,096,t46
S i g n atu r#"of7fu thorized Represen tative
{
651-792-7611
I, the authorized representative of the above-mentioned Governmental Agency, certify that the foregoing information is accurate to the
best of myfiIlwledge.
A U city Administrator st23/2026
Title Date
Phone Number of Authorized Representative
Please return this form to AskPropertvTax@ramsevcountvmn.qov no later than September 30, 2026
LEVY PURPOSE 2026 CERT|F|EO
FINALLE'VY
2O2TCERTIFIED
PROPOSED LEVY
NET TAX CAPACITY BASED LEVIES
1 General Revenue 2,712,781$$2,925,466
2,712,781$$2,925,4ffi'l ) Total General
169,627$91J22$2) Debt
$$79,5583) Other- GO Bonds 20254- TaxAbatement Revenue
4)
5)
6)
7)
8) Total Net Tax Capacity Based Levies
(Total 1 through 7)$2,gg2,4og 3,096,t46$
84
CITY OF FALCON HEIGHTS
BOND ISSUES
ORIGINAL
PRINCIPAL
DATE
ISSUED
LEVY YEAR 2026 ADDITIONS OR
PAYABLE 2027 REDUCTIONS BY
DEBT LEVY RESOLUTION
CERTIFIED
DEBT
LEVY
GO Tax Abatement & lmprovement Bonds, Series 2025A
I hereby certiry that the above schedule of
bond levies to be spread on the payable 2027
tax rolls agrees with the City and is
true and correct.of
which increase or are
attached.
Sign:
Date:)[
1,88s,000 7t24t2025 91,121.72 $91,121 .72
$91,121 .72 $0.00 $91,121 .72
it
h
85
BLANK PAGE
86
ITEM FOR DISCUSSION
FNLCAN HHEI]TS
rHE CITY THAT SOARS
Meeting Date September 23,2026
Agenda Item Policy H2
Attachment Resolution 26-81
Submitted By Alyssa Landberg, Finance Director
Item Setting Truth-in-Taxation (TNT) Hearing
Description Minnesota State Statute mandates the Truth-in-Taxation (TNT) process for
local governments. The TNT process is designed to improve transparency and
public participation in the budget process.
By September 30 of each year, the city council needs to adopt a preliminary
levy. This acts as a maximum limit, as the final levy adopted later cannot be
higher than the prelirninary levy amount.
The City is then required to conduct a Truth-in-Taxation Hearing in December
where the annual budget and levy willbe discussed, and the public is invited
to speak.
It is recommended that the City Council approve the meeting date of
December 9,2026, for the Truth-in-Taxation meeting to discuss the 2027 budget
and levy.
Budget Impact N/A
Attachment(s). Resolution26-81" Setting the Truth-in-Taxation Hearing Date
o Documents to Certify TNT Hearing to Ramsey County
Action(s)
Requested
Staff recommend that City Council set the Truth-in-Taxation hearing during
the regular meeting of City Council at7:00 p.m. on December 9,2026.
City of Falcon Heights, Minnesota
87
CITY OF FALCON HEIGHTS
COUNCIL RESOTUTION
September 23,2026
No.26-81
RESOLUTION SETTING PUBLIC HEARING DATE FOR THE 2027 BUDGET AND
PROPERTY TAX LEVY
WHEREAS, the City of Falcon Heights is required by State law to set a date and time for their
annual budget adoption public hearing, known as a "Truth-in-Taxation" hearing; and
WHEREAS, Minnesota Statutes require approval of a preliminary property tax levy and
preliminary budget on or before September 30th of each year; and
WHEREAS, the City Council has received the proposed budget document;
NOW THEREFORE BE IT RESOLVED that the Truth-in-Taxation Public Hearing will
be held on December 9,2026, at 7:00 PM.
nl rltrMoved by
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
In Favor
Against
Approved
Attested by
Mayor
City Administrator
C.
g
c
88
If RAMSEY COUNTY
Propertlr Tax Servicer
Truth in Taxation (TNT) Public Hearing lnformation for Taxes Payable 2027
Please retu rn th is form to AskPropertvTax@ramsevcou ntvmn.qov
no later than September 30, 2026.
2077 Larpentew Avenue W, Falcon Heighs, MN 55113Taxing Authority Mailing Address
Taxpayer Inquiry Phone Number
Fv'/rtil) l)1-J567 651-792-7600
Taxing Authority Website
Ft. PT|KFY COI/www. falconheightsmn. gov
TNT Public Hearing Date and Time
Fr Novemher )5 2n26 6'00 PM December 9, 20267:00PM
TNT Hearing Location Name Falcon Heights City Hall
TNT Hearing Location Address
Et: I)lStreet St Paul MN55l0l 2077 Larpenteur Avenue W, Falcon Heights, MN 55113
89
BLANK PAGE
90
FNLCOII HEIEHTS
THE CI|Y THAT SOAPS
REQUEST FOR COUNCIL ACTION
Meeting Date September 23,2026
Agenda Item Policy H3
Attachment See below
Submitted By Jack Linehan, City Administrator
Item Financial Agreements with Fairway Commons, Limited Partnership for Livable
Communities Grant
Description Ryan Schwickert of Velair Development Company, on behalf of Fairway Commons,
Limited Partnership, has submitted several documents related to the Livable
Communities Grant that the Metropolitan Council recently awarded to the Fairway
Commons housing development.
At the September 23,2026, City Council meeting, the Council is asked to consider and
approve a resolution authorizing the approval of a loan agreement for the Fairway
Commons housing development.
Project Background
Fairway Commons is a proposed 110-unit age-restricted multifamily rental housing
development located at1,670 Larpenteur Avenue West. The project will serve low-
and moderate-income households, consistent with the City's comprehensive plan and
regional housing goals.
Fairway Commons, Limited Partnership (affiliated with M\ fF Properties /Yelair
Development Company) ("Borrower"), requested that the City ("Lender") submit for
a Livable Communities/LCA Development granf which was awarded on Augtstl2,
2026,by the Metropolitan Council. A total of $631,100 was awarded with $88,500 for
environmental cleanup and fi542,600 for general construction. As part of the grant, the
City is required to enter into Grant Agreement with the Metropolitan Council for the
funds from the Livable Communities Demonstration Account to be provided to the
City. The Grant Agreement is expected to be provided by the Metropolitan Council in
the near future.
In order to distribute the grant to Fairway Commons, aLoant Agreement is necessary.
The loan is evidencedby a Promissory Note (Exhibit B). Additionally, Fairway
Commons is required to provide a mortgage (Exhibit C) to the City as a condition of
the disbursement of the proceeds of the loan, along with other conditions.
The Council is asked to approve a resolution, which would:
.Authorize the execution of related financing documents.
City of Falcon Heights, Minnesota
91
.Permit completion of final documents prior to closing so long as revision does not
materially adversely affect the City.
The acceptance of the Loan Agreement:
.Limits the loan to the grant proceeds, so disbursement is capped at the lesser of the
loan amount or the amount disbursed by the Metropolitan Council.
.Requires the City to disburse the loan, once conditions established in the Loan
Agreement are met.
.Gives the city the right, but not the obligation to inspect and audit the Borrowers'
records related to the loan proceeds, enforce the agreement and attached documents,
declare default remedies, recover enforcement costs, and require reimbursements for
costs related to the agreement.
.The CitI is required to perform some obligations under the Loan Agreement such as
coordinating with the Metropolitan Council, submitting required documentation to
the Metropolitan Council, formal municipal actions, and administering the Grant
Agreement.
The project will be subject to long-term income and rent restrictions:
.At least 40% of units must be occupied by households at or below 60% of AMI.
.Additional affordability requirements will apply under an extended use agreement
related to federal low-income housing tax credits.
Budget Impact The agreements will have no impact on the City's budget
Attachment(s)r Loan Agreement
o Promissory Note
o Mortgage
e Resolution26-82
Action(s)
Requested
Staff recommends that Council approve Resolution 26-82, Authorizing the Approval
of the Loan Agreement for the Fairway Commons Project.
92
LOANAGREEMENT
(LCDALoan)
This Loan Agreement ("Agreement") is made this 3Oth day of September, 2026,between
FAIRWAY COMMONS, LIMITED PARTNERSHIP, a Minnesota limited partnership
("Borrower") and the CITY OF FALCON HEIGHTS, a Minnesota municipal corporation
("Lender").
RECITALS
A. The Lender and the Metropolitan Council (the "Council") have entered in a
Metropolitan Livable Communities Act Grant Agreement approved by the Council on September
23, 2026 (the "Grant Agreement"), committing grant funds from the Council's Livable
Communities Demonstration Account (the "Grant") to the Lender, to be used by the Lender to
assist the Borrower with the costs of general construction of ll0 units of mixed-income senior
housing (the "Project Costs") on certain property located in the City of Falcon Heights described
in Exhibit A (the "Property").
B. In order to facilitate the use of low-income housing tax credits for an affordable
mixed-income senior housing on the Property (the "Affordable Housing"), the Borrower has
requested that the Grant by the Lender to the Borrower be structured as a loan.
C. Lender agrees to loan to Borrower the proceeds of the Grant to finance a portion of
the Project Costs on the Property, pursuant to the terms and conditions of this Agreement.
D. In consideration for the loan contemplated by this Agreement, Borrower is
executing and delivering to Lender this Agreement.
NOW THEREFORE, to induce Lender to make the Loan (as defined hereinafter) to
Borrower, and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
l. The Loan Amount. Subject to and upon the terms and conditions of this Agreement
and the Grant Agreement, Lender agrees to loan to Borrower the sum of Six Hundred Thirty-One
Thousand One Hundred and no/100 Dollars ($631,100.00), or so much thereof as may have been
advanced to Borrower (the "Loan"). The Loan shall be evidenced by a promissory note ("Note")
payable by Borrower to Lender and substantially in the form of Exhibit B attached to this
Agreement, which shall be dated as of the date of closing on the Loan (the "Loan Closing Date").
Proceeds of the Loan shall be disbursed in accordance with Section 3 hereof.
2. Repayment of Loan. The Loan shall be repaid without interest as follows:
239656v1
a. No interest shall accrue on the Note.
93
b. The entire amount of principal of the Loan shall be due and payable on
September 30,2056. The Borrower may prepay the Loan, in whole or in part,
on any date, subject to the terms provided in the Note.
3. Disbursement of Loan Proceeds
a The proceeds of the Loan shall be disbursed by the Lender to the Borrower in
accordance with the terms and conditions of the Grant Agreement and the terms
of this Agreement. Notwithstanding anything to the contrary contained herein,
the Lender shall only be obligated to make the disbursements hereunder to pay
proceeds of the Loan in an amount up to or equal to the lesser of the amount of
the Loan or the amount actually disbursed by the Council to the Lender under
the Grant Agreement. Notwithstanding anything to the contrary herein, any
excess of the Project Costs over the principal amount of the Loan shall be the
sole responsibility of the Borrower.
b. Disbursement of the proceeds of the Loan will be made subject to the conditions
precedent that on or prior to the Loan Closing Date:
The Lender has received from Borrower, without expense to Lender,
executed copies of this Agreement and the Note, and Borrower further
having caused to be executed and delivered to Lender a mortgage in
substantially the form set forth in Exhibit C (the "Mortgage");
ii. The Borrower has presented the Lender with evidence that the Loan
funds are being allocated solely to the Affordable Housing on the
Property;
iii. The Borrower has provided evidence that covenants have been recorded
against the Property ensuring that the affordable units will remain
affordable for a minimum period of fifteen (15) years; and
iv. No Event of Default under this Agreement or the Grant Agreement shall
have occurred and be continuing.
4. No Business Subsidy. The parties agree and acknowledge that the Loan is not a
business subsidy as defined in Minnesota Statutes, Section 116J.993, because the assistance is for
housing.
5. Covenants. Representations. Warranties. andAgreements.Borrower covenants,
represents, and warrants to Lender, and agrees that
a. Borrower is duly authorized and empowered to execute, deliver, and perform
this Agreement and to borrow money from Lender.
239656v1
94
b. The execution and delivery of this Agreement, and the performance by
Borrower of its obligations hereunder, do not and will not violate or conflict
with any provision of law and do not and will not violate or conflict with, or
cause any default or event of default to occur under, any agreement binding
upon Borrower.
The execution and delivery of this Agreement has been duly approved by all
necessary action of Borrower, and this Agreement has in fact been duly
executed and delivered by Borrower and constitutes its lawful and binding
obligation, legally enforceable against it.
d. Borrower warrants that it shall keep and maintain books, records, and other
documents relating directly to the receipt and disbursements of Loan proceeds
and that any duly authorized representative ofLender shall, at all reasonable
times, have access to and the right to inspect, copy, audit, and examine all such
books, records, and other documents of Borrower pertaining to the Loan
disbursements until the completion of all closeout procedures and the final
settlement and conclusion of all issues arising out of this Loan.
e. Borrower warrants that it has fully complied with all applicable state and federal
laws pertaining to its business and will continue to comply throughout the terms
of this Agreement. tf at any time Borrower receives notice of noncompliance
from any governmental entity, Borrower agrees to take any necessary action to
comply with the state or federal law in question.
f. Borrower warrants that it will use the proceeds of the Loan made by Lender
solely for the Project Costs.
g. Borrower warrants that it will not create, permit to be created, or allow to exist
any liens, charges, or encumbrances prior to the obligation created by this Loan
Agreement, except as otherwise authorized in writing by Lender and except as
may be allowed pursuant to the Mortgage.
h. Borrower shall obey and comply with all federal, state and local laws, rules and
regulations in connection with the Project.
i. Borrower is bound by all the terms and conditions of the Grant Agreement to
the same extent as the Lender, subject to Section l0 hereof.
j. Borrower shall comply with all the requirements of the Grant Agreement
applicable to the Lender, subject to Section l0 hereof.
6.Event of DefauIt hv Borrower.The following shall be Events of Default under this
Agreement, subject to any cure or grace periods contained in the Loan Documents
c
239656v1
95
c
a. Failure to pay any principal or interest on the Loan when due;
b. Any material misrepresentation or warranty made by Borrower herein or in any
document, instrument, or certificate given in connection with this Agreement,
the Note, or the Mortgage (the "Loan Documents") which is materially false
when made;
Borrower fails to pay its debts as they become due, makes an assignment for
the benefit of its creditors, admits in writing its inability to pay its debts as they
become due, files a petition under any chapter of the Federal Bankruptcy Code
or any similar law, state or federal, now or hereafter existing, becomesooinsolvent" as that term is generally defined under the Federal Bankruptcy
Code, files an answer admitting insolvency or inability to pay its debts as they
become due in any involuntary bankruptcy case commenced against it, or fails
to obtain a dismissal of such case within thirty (30) days after its
commencement or convert the case from one chapter of the Federal Bankruptcy
Code to another chapter, or be the subject of an order for relief in such
bankruptcy case, or be adjudged a bankrupt or insolvent, or has a custodian,
trustee, or receiver appointed for, or has any court take jurisdiction of its
property, or any part thereof, in any proceeding for the purpose of
reorganization, arrangement, dissolution, or liquidation, and such custodian,
trustee, or receiver is not discharged, or such jurisdiction is not relinquished,
vacated, or stayed within thirty (30) days of the appointment;
d. A garnishment summons or writ of attachment is issued against or served upon
Lender for the attachment of any property of Borrower in Lender's possession
or any indebtedness owing to Borrower, unless appropriate papers are filed by
Borrower contesting the same within thirty (30) days after the date of such
service or such shorter period of time as may be reasonable in the
circumstances;
Borrower breaches or fails to perform any other term or condition of this
Agreement not specifically described as an Event of Default in this Agreement
and such breach or failure continued for a period of thirty (30) days after the
Lender has given written notice to Borrower specifying such default or breach,
however, if the failure stated in the notice cannot be corrected within the
applicable period, Lender will not unreasonably withhold its consent to an
extension of such time if corrective action is instituted by Borrower within the
applicable period and is being diligently pursued until the Default is corected,
but no such extension shall be given for an Event of Default that can be cured
by the payment of money (i.e., payment of taxes, insurance premiums, or other
amounts required to be paid hereunder);
f. Borrower is in violation of affordability covenants recorded against the
Property; or
e
239656v1
96
g. Any breach by Borrower of any other agreement between Borrower and Lender
The Borrower's investor limited partner, U.S. Bancorp Community Development Corporation, a
Minnesota corporation (together with its permitted successors and/or assigns, the "lnvestor
Limited Partner"), shall have an opportunity, but not an obligation, to cure any Events of Default
or defaults under this Agreement and under any of the other Loan Documents, and any such cure
shall be accepted by the Lender as if cured by the Borrower itself.
7. Lender's Remedies upon Borrower's Default.Upon an Event of Default by
Borrower and after provision by Lender of written notice, and subject to any cure or grace periods
contained in the Loan Documents, Lender shall have the right to exercise any or all of the following
remedies (and any other rights and remedies available to it):
a. declare the principal amount of the Loan to be immediately due and payable
upon providing written notice to Borrower;
b. suspend its performance under this Loan Agreement;
c. take any action provided for at law or in equity to enforce compliance by
Borrower with the terms of this Agreement and the Note or to seek repayment
or reimbursement of the Loan funds disbursed to Borrower, or otherwise
compensate the Lender for any damages on account of such Event of Default;
d. exercise its rights under the Mortgage;
e. terminate this Agreement.
In addition to any other amounts due on the Loan, and without waiving any other right of Lender
under this Agreement or any other instrument securing the Loan, Borrower shall pay to Lender a
late feo of $250 for any payment not received in full by Lender within 30 calendar days of the date
on which it is due.
No delay or omission to exercise any right or power accruing upon an Event of Default shall impair
any such right and power provided herein, nor shall it be construed to be a waiver thereof, but any
such right and power may be exercised from time to time and as often as may be deemed expedient.
8. Lender's Costs of Enforcement ofA$eament. If an Event of Default has occurred
as provided herein, then upon demand by Lender, Borrower shall pay or reimburse Lender for all
expenses, including all reasonable attorneys' fees and expenses incurred by Lender in connection
with the enforcement of this Agreement and the Note, or in connection with the protection or
enforcement of the interests and collateral security of Lender in any litigation or bankruptcy or
insolvency proceeding or in any action or proceeding relating in any way to the transactions
contemplated by this Agreement.
239656v1
97
9. Indemnification.
a. Except for any claims, lawsuits, or damages arising or related to the gross
negligence or willful misconduct of the Lender, Borrower shall and does hereby
agree to indemnify against and to hold Lender, and its officers, agents, and
employees, harmless of and from any and all liability, loss, or damage that it
may incur under or by reason of this Agreement, and of and from any and all
claims and demands whatsoever that may be asserted against Lender by reason
of any alleged obligations or undertakings on its part to perform or discharge
any of the terms, covenants, or agreements contained herein.
b. Should Lender, or its officers, agents, or employees incur any such liability or
be required to defend against any claims or demands pursuant to this Section,
or should a judgment be entered against Lender, the amount thereof, including
costs, expenses, and attorneys'fees, shall bear interest thereon at the rate then
in effect on the Note, shall be secured hereby, shall be added to the Loan, and
Borrower shall reimburse Lender for the same immediately upon demand, and
upon the failure of Borrower to do so, Lender may declare the Loan
immediately due and payable.
c. This indemnification and hold harmless provision shall survive the execution,
delivery and performance of this Agreement and the creation and payment of
any indebtedness to Lender. Borrower waives notice of the acceptance of this
Agreement by Lender.
d. Nothing in this Agreement shall constitute a waiver of or limitation on any
immunity from or limitation on liability to which Borrower is entitled under
law.
10. Incorporation of Grant Asreement. Borrower acknowledges and agrees that all
terms, conditions and obligations in the Grant Agreement are incorporated herein, and made a part
of this Agreement. In addition to the terms, conditions and obligations described herein, the
Borrower further acknowledges, accepts and assumes all of the Lender's obligations described in
the Grant Agreement, unless such obligation can only be reasonably performed by the Lender.
1 1. Costs. Borrower shall be responsible for payment of all costs and expenses incurred
by Lender in connection with the Grant Agreement, Loan Agreement and all related documents,
including consultant costs. Borrower will reimburse the Lender for such costs within 30 days of
invoicing by the Lender.
239656v1
98
12. Miscellaneous.
a. Waiver. The performance or observance of any promise or condition set forth
in this Agreement may be waived, amended, or modified only by a writing
signed by Borrower and Lender. No delay in the exercise of any power, right,
or remedy operates as a waiver thereof, nor shall any single or partial exercise
of any other poweq right, or remedy.
b. Assignment. This Agreement shall be binding upon Borrower and its
successors and assigns and shall inure to the benefit ofLender and its successors
and assigrrs. All rights and powers specifically conferred upon Lender may be
delegated by Lender to any of its successors and assigns. Borrower's rights and
obligations under this Agreement may be assigned only when such assignment
is approved in writing by Lender, except as provided in Section 6 hereof.
Nothing in the Loan Documents shall limit or restrict the ability of Investor
Limited Partner, its successors and assigns to trinsfer, sell or assign its
ownership interest in Borrower, from time to time, without consent of Lender.
In particular, Lender hereby consents to any transfers, sales or assignments of
limited partnership interests in Borrower to any affiliate of the lnvestor Limited
Partner or any entity in which the Investor Limited Partner, or an affiliate, is the
manager or managing general partner and agrees that such transfers shall not
constitute defaults under the Loan Documents. Further, the withdrawal,
removal, transfer and/or replacement of the general partner andlor special
limited partner of Borrower pursuant to the terms of the Borrower's Partnership
Agreement shall not constitute a default under any of the Loan Documents, and
any such actions shall not accelerate the maturity of the Loan; provided that
Borrower agrees to notify the Lender of any proposed replacement general
partner and/or special limited partner prior to replacement, and, upon
replacement, shall notify the Lender of the name and contact information of the
replacement general partner and/or special limited partner with reasonable
promptness.
c. Goveming Law. This Agreement is made and shall be governed in all respects
by the laws of the state of Minnesota. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the state or federal courts of
Minnesota, and all parties to this Agreement waive any objection to the
jurisdiction of these courts, whether based on convenience or otherwise.
d. Severability. If any provision or application of this Agreement is held unlawful
or unenforceable in any respect, such illegality or unenforceability shall not
affect other provisions or applications that can be given effect, and this
239656v1
99
e
Agreement shall be construed as if the unlawful or unenforceable provision or
application had never been contained herein or prescribed hereby.
Notice. All notices required hereunder shall be given by depositing in the U.S.
mail, postage prepaid, certified mail, return receipt requested, to the following
addresses (or such other addresses as either party may notify the other):
To Lender City of Falcon Heights, Minnesota
Attention : City Administrator
207 7 Larpenteur Avenue West
Falcon Heights, MN 551 l3
To Borrower:Fairway Commons, Limited Partnership
2 Meridian Crossings, Suite 250
Minneapolis, Minnesota 5 5423
Attention: Christopher Stokka
With a copy to:Winthrop & Weinstine, P.A.
Capella Tower, Suite 3500
225 South Sixth Street
Minneapolis, Minnesot a 5 5402
Affn: Shawn Alexander, Esq.
And with a copy to:U.S. Bancorp Community Development
Corporation
505 North Seventh Street, lOth Floor
MailCode: SL-MO-TI0F
St. Louis, MO 63101
USB Project No: 36269
Attn.: Director of Asset Management
And with a copy to Bennett P. Applegate, Esq.
Applegate & Thorne-Thomsen, P.C.
425 S. Financial Place, Suite 1900
Chicago, IL 60605
f. Termination. Subject to extensions agreed to by the Lender and Borrower and
approved by the Council, if the Loan is not disbursed pursuant to this
Agreement and the Grant Agreement by December 31, 2028, this Agreement
shall terminate and neither party shall have any further obligation to the other,
239656v1
100
except that if the Loan is not disbursed because Borower has failed to use its
best efforts to comply with the conditions set forth in Section 3 of this
Agreement then Borrower shall pay to Lender all reasonable attorneys' fees,
costs, and expenses incurred by Lender in connection with this Agreement and
the Note.
g. Entire Asreement. This Agreement, together with the Exhibits hereto, which
are incorporated by reference, constitutes the complete and exclusive statement
of all mutual understandings between the parties with respect to this Agreement,
superseding all prior or contemporaneous proposals, communications, and
understandings, whether oral or written, concerning the Loan.
h. Headines. The headings appearing at the beginning of the several sections
contained in this Agreement have been inserted for identification and reference
purposes only and shall not be used in the construction and interpretation of this
Agreement.
Survival of Asreements. Representations and Warranties. All agreements,
representations and warranties made in this Agreement by the Borrower shall
survive termination.
j. Joint Venture. The relationship between the Borrower and Lender is solely that
of grantor and grantee and the relationship by and between the Borrower and
Lender is not, nor shall it be deemed to create a partnership or joint venture in
the Project.
k. Land Use Restriction. Notwithstanding any provision to the contrary in the
Loan Documents, Lender acknowledges and agrees that (a) the Property is or
will be subject to a Land Use Restriction Agreement (as defined below); (b) the
recordation of the Land Use Restriction Agreement against the Property is
permitted under the terms of the Loan Documents; and (c) the lien of any Loan
Documents, and the terms and provision thereof, shall be subordinate to the
Land Use Restriction Agreement, regardless of the order of recording of either
document. "Land Use Restriction Agreement" means the extended low-income
housing commitment, regulatory agreement or restrictive covenants executed
or to be executed by Borrower, as may be amended, setting forth certain terms
and conditions'under which the Property is to be operated and which shall meet
the requirements of Section 42(hX6XB) of the Internal Revenue Code of 1986,
as amended.
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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the proper
officers thereunto duly authorized on the day and year first written above.
CITY OF FALCON HEIGHTS, MINNESOTA
ts Mayor
By
239656v1
JSIGNATURE PAGE TO LCDA LOAN AGREEMENT - FAIRWAY COMMONS, LIMITED PARTNERSHIPI
102
FAIRWAY COMMONS, LIMITED
PARTNERSHIP, a Minnesota limited partnership
By
By
Falcon Heights Group LLC, a Minnesota
limited liability company, its General
Partner
Name:Tvler Mannins
Title: Vice President and Secretary
239656v1
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EXHIBIT A
PROPERTY
Real Property in the City of Falcon Heights, County of Ramsey, State of Minnesota, described as
follows:
Parcel l:
The East 250 feet of the North 500 feet except the West 150 feet of the East 160 feet of the North
283 feet of the Northwest Quarter of the Northeast Quarter of the Northeast Quarter of Section 21,
Township 29,Range23.
Parcel2
The West 150 feet of the East 160 feet of the North 283 feet of the Northwest Quarter of the
Northeast Quarter of the Northeast Quarter of Section 21, Township 29, Range 23, West of the
Fourth Principal Meridian.
(AllTonens Property, Certificate of Title No. 640336)
239656v1
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EXHIBIT B
PROMISSORY NOTE
(Attached.)
239656v1
105
EXHIBIT C
MORTGAGE
(Attached.)
239656v1
106
$631,100.00
PROMISSORY NOTE
given by
FAIRWAY COMMONS, LIMITED PARTNERSHIP
a Minnesota limited partnership to
THE CITY OF FALCON HEIGHTS
a municipal corporation under
the laws of the State of Minnesota
Dated: September 30,2026 At: Falcon Heights, Minnesota
FOR VALUE RECEIVED, the undersigned, FAIRWAY COMMONS, LIMITED
PARTNERSHIP, a Minnesota limited partnership (the "Borrower"), hereby promises to pay to the
order of THE CITY OF FALCON HEIGHTS, a municipal corporation under the laws of the
State of Minnesota ("Holder") at the offices of the Holder or such other place as the Holder may,
from time to time, designate in writing, the principal sum of Six Hundred Thirty-One Thousand
One Hundred and No/100 Dollars ($631,100.00), or so much thereof as may be advanced to
Borrower (the "Loan"). This Note shall not bear interest.
The entire principal balance of this Note is due and payable on the earlier of: (a) September
30, 2056, (b) upon the sale of fee title to any portion of the Property identified in the Loan
Agreement without the Holder's prior consent, or (c) upon the Borrower's default under the Loan
Agreement or Mortgage, subject to all applicable notice and cure periods. The Borrower may
prepay the Loan, in whole or in part, on any date, subject to the terms provided in the Note.
This Note is issued pursuant to that certain LCDA Grant Agreement between the Metropolitan
Council and Holder and defined in the Loan Agreement between Holder and Borrower dated as of
the date hereof (the "Loan Agreement") and a Mortgage dated the date hereof from Borrower, as
Borrower, to the Holder, as Holder (the "Mortgog€"), on property owned by Borrower (the
"Project"). All of the agreements, conditions, covenants, provisions and stipulations contained in
the Loan Agreement and Mortgage are hereby made a part of this Note to the same extent and with
the same force and effect as if they were fully set forth herein. Time is of the essence hereof. In
the event of any default in the payment of any principal or other indebtedness due hereunder,
Holder shall provide written notice thereof to Borrower and Borrower shall have thirty (30) days
from receipt of such notice to cure such default. In the event Borrower defaults on any of its other
non-monetary obligations under this Note, the Loan Agreement, or the Mortgage, Holder shall
provide written notice thereof to Borrower and Borrower shall have sixty (60) days from receipt
ofsuch notice to cure such default; provided, however, that ifsuch default cannot reasonably be
cured within such sixty (60) day period, Borrower shall have such additional time as may be
reasonably necessary to cure such default so long as Borrower commences such cure within such
sixty (60) day period and diligently pursues such cure to completion and provided that a default
related to completion of construction of the Project must be cured by the expiration date provided
under the LCDA Grant Agreement and Loan Agreement. If any such default remains uncured after
the expiration of the applicable cure period, the Holder may, at its right and option, declare
immediately due and payable the principal balance of this Note, together with any attorneys' fees
239657v1
107
incurred by the Holder in collecting or enforcing payment thereof, whether suit be brought or not,
and all other sums due hereunder and payment thereof may be enforced and recovered in whole or
in part at any time by one or more of the remedies provided in any document securing this Note,
including any Mortgage. The Holder may extend the time of payment of principal of this Note
without notice to or consent of any party liable hereon and without releasing such party.
The Borrower hereby waives demand, presentment, notice of nonpayment, protest, notice of
protest, notice of dishonor and diligence in collection and agrees that without any notice the Holder
hereof may take and/or release additional security herefor or the Holder hereof may, from time to
time, release any part or parts of security interests from Borrower in favor of Holder with or
without consideration and that in any such case the Borrower and any guarantor, surety or endorser
shall remain liable to pay the unpaid balance of the indebtedness evidenced hereby as so
additionally secured, extended, renewed or modified and notwithstanding any such release.
The remedies of the Holder, as provided herein and in any document securing this Note
shall be cumulative and concurrent and may be pursued singly, successively or together, at the sole
discretion ofthe Holder, and may be exercised as often as occasion therefor shall occur. The Holder
may, in its discretion, waive any default hereunder and its consequences and rescind any
declaration of acceleration of principal; provided, however, that no action or inaction by the Holder
shall be deemed a waiver of any of the Holder's rights or remedies unless the Holder specifically
agrees in writing that such action or inaction shall constitute a waiver of its rights or remedies.
Any waiver shall only apply to the particular instance for which it was agreed. No delay in
exercising and no failure in exercising any right or remedy hereunder or afforded by law shall be
a waiver of or preclude the exercise of any right or remedy hereunder or provided by law, whether
on such occasion or any future occasion, nor shall such delay be construed as a waiver of any
default or acquiescence therein. The exercise or the beginning of the exercise of one right or
remedy shall not be deemed a waiver of the right to exercise at the same time or thereafter any
other right or remedy.
In the event of any default hereunder the Borrower agrees to pay the costs of collection
including reasonable attomeys' fees. If this Note is reduced to judgment, such judgment shall bear
the fawful interest rate pertaining to judgments, but not to exceed 6%;o per annum.
This Note may be prepaid in whole or in part without penalty.
The obligations of the Borrower hereunder are unconditional except as otherwise stated
herein, irrespective of any defense or any rights of setoff, recoupment or counterclaim it might
otherwise have against the Holder or any governmental body or other person.
The Loan is a non-recourse obligation of the Borrower. Neither the Borrower nor any of
its partners or officers, nor any other party, shall have any personal liability for repayment of the
Loan. The sole recourse of Holder for repayment of the Loan shall be the exercise of its rights
against the Project and related security thereunder.
This Note may not be sold, transferred, assigned or pledged without the prior written approval of
the Borrower.
This Note shall be governed by and construed in accordance with the laws of the State of
Minnesota.
If any of the terms of this Note, or the application thereof to any person or circumstances
shall, to any extent, be invalid or unenforceable, the remainder of this Note, or the application of
23965-/vl
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108
such terrns to persons or circumstances other than those to which it is invalid or unenforceable, shall
not be affected thereby, and each of the terms of this Note shall be valid and enforceable to the
fullest extent permiffed by law.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts and things
required to exist, to happen and to be performed precedentto or in the issuance of this Note do
exist, have happened and have been performed in regular and due form as required by law.
[Signature Page FollowsJ
J
239657v1
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IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed by
its authorized representative, all on the date and year first above written.
BORROWER:
FAIRWAY COMMONS, LrMrrED
PARTNERSHIP, a Minnesota limited partnership
By: Falcon Heights Group LLC, a Minnesota limited
liability company, its General Partner
By
Name: Tvler Manning
Title: Vice President and Secretary
4
239657v1
110
MORTGAGE
($631,100 LCDA Loan)
THIS MORTGAGE IS EXEMPT F'ROM MORTGAGE RBGISTRATION TAX
PURSUANT TO MrNN STAT SECTTON 287.04 (f) BECAUSE THrS MORTGAGE WAS
MADE UNDER THE MORTGAGEE'S LOW AND MODERATE INCOME OR OTHER
AFF'ORDABLE HOUSING PROGRAM THAT PROVIDES FOR LOANS THAT MEET
THE INCOME LIMITS AND SALES PRICE LIMITS AS DETERMINED UNDER
FEDERAL AND STATE LAW.
THIS MORTGAGE is made this 30th day of September, 2026 by and between
FAIRWAY COMMONS, LIMITED PARTNERSHIP, a Minnesota limited partnership (the
"Mortgagor") in favor of THE CITY OF FALCON HEIGHTS, a municipal corporation under
the laws of the state of Minnesota (the "Mortgagee").
WHEREAS, pursuant to that Loan Agreement between the Mortgagor and Mortgagee
dated as of September 30, 2026 (the "Loan Agreement"), Mortgagor executed that certain
Promissory Note of even date herewith (the "Note") in the amount of Six Hundred Thirty-One
Thousand One Hundred Dollars and No/100 ($631,100.00) evidencing the loan described in the
Loan Agreement (the "Loan"); and
WHEREAS, pursuant to the Loan Agreement and the Note, the entire indebtedness of
Mortgagor to Mortgagee of the Loan is due and payable in full on September 30, 2056; and
WHEREAS, this Mortgage is given to secure repayment of all amounts due by
Mortgagor to Mortgagee under the Loan Agreement and the Note, as well as other amounts due
by Mortgagor to Mortgagee under the terms of this Mortgage.
NOW, THEREFORE, in consideration ofthe foregoing, and for other good and valuable
consideration, Mortgagor hereby grants, bargains, sells and conveys to Mortgagee the following
real property in Ramsey County, Minnesota (the "Premises") legally described on Exhibit A
attached hereto and incorporated herein to have and to hold the same, together with all the
hereditaments and appurtenances thereto belonging or in anywhere appertaining, forever.
PROVIDED NEVERTHELESS that if Mortgagor, or Mortgagor's successors or
permitted assigns, shall (i) pay, or cause to be paid, to Mortgagee the principal amount of the
Loan heretofore and hereafter advanced by Mortgagee to Mortgagor under the Note; (ii) pay all
taxes and special assessments that are now or may be hereafter levied and assessed on and against
the Premises as they shall be due and before they become delinquent; (iii) keep the improvements
on the Premises continuously insured as hereinafter provided; (iv) pay the principal and interest
installments on any prior mortgage or mortgages as the same or any part thereof become due; and
(v) keep and perform each and every covenant herein, then this Mortgage shall be null and void;
239658v1
111
otherwise it shall be and remain in full force and effect.
MORTGAGOR WARRANTS AND COVENANTS to and with Mortgagee as follows:
l. Mortgagor is lawfully seized of a fee simple interest in the Premises and has good right
to sell and convey the same. The Premises are free from all liens and encumbrances, except
any prior mortgage or mortgages of record and other matters listed in the Mortgagor's title
policy. Mortgagor shall warrant and defend the title of the Premises against all lawful claims
except such prior mortgage or mortgages of record and encumbrances of record. The foregoing
covenants and warranties shall survive foreclosure of this Mortgage and shall run with the land.
2. Mortgagor shall pay the principal and interest (if any) as the same become due on any
prior mortgage or mortgages on the Premises.
3. Mortgagor shall procure at Mortgagor's own expense fire and extended coverage
insurance on the improvements on the Premises, payable in case of loss to Mortgagee, its
successors and assigns, as its interest may appear, such insurance to be written by a reliable
insurance company approved by Mortgagee in an amount at least equal to the full insurable
value of such improvements. In the event of any fire or other casualty to the Premises or
eminent domain proceedings resulting in condemnation of the Premises or any part hereof, the
Mortgagor shall have the right to rebuild the Premises, and to use all available insurance or
condemnation proceeds therefor, provided that no material default then exists under the Loan
Documents. If the casualty or condemnation affects only part of the Premises and total
rebuilding is infeasible, then proceeds may be used for partial rebuilding and partial repayment
of the Loan in a manner that provides adequate security to the Mortgagee for repayment of the
remaining balance of the Loan.
4. Mortgagor shall pay all taxes and special assessments now and hereafter levied and
assessed on the Premises before the same become delinquent, provided, however, that
Mortgagor is permitted to contest the same in good faith.
5. Mortgagor shall keep the Premises in good repair, shall not remove the improvements
from the Premises, unless promptly replaced with substantially similar improvements, and shall
not commit waste or permit impairment or deterioration of the Premises.
6. Mortgagor shall comply with and perform all of the Mortgagor's obligations under the
Loan Agreement, this Mortgage and the Note.
7 . In the case of failure of Mortgagor to pay such taxes or special assessments or to keep
said improvements insured as provided herein, or to pay the principal or interest (if any) on the
prior mortgage or mortgages on the Premises, Mortgagee may at its option, after ten (10) days'
written notice to Mortgagor, pay and discharge such taxes and assessments, effect such
insurance on said improvements and pay the premiums thereon and pay the principal and
interest (if any) that become due and remain unpaid on the prior mortgage or mortgages on the
Premises, and the sum or sums that may be so paid by Mortgagee shall bear interest from the
time of such payment at the rate of 8% per annum orthe highest rate allowed by law, whichever
is lower, and shallbe deemed and is hereby declared to be an additional lien upon the Premises
239658v1
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in the amount that shall be so paid, with interest thereon, as aforesaid, and shall be added to
and be collectable as part of and in the same manner as the original debt which this Mortgage
is given to secure.
8. Reserved
9. The following shall be Events of Default by Mortgagor; provided, however, that
Mortgagee shall have given the Mortgagor notice of such Event of Default hereunder and at
least thirty (30) days within which to cure such Event of Default, and that if such Event of
Default cannot reasonably be cured within such thirty (30) days, Mortgagor shall have such
additional time as may be reasonably necessary if Mortgagor commences to cure such Event
of Default within such thirty (30) day period and thereafter diligently prosecutes such cure to
completion:
a) The failure to pay the indebtedness hereby secured, as it becomes due;
b) The failure to pay, when due, the taxes or special assessments on the Premises;
c) The failure to keep the improvements on the Premises insured as herein provided;
d)The failure to keep and perform any of the covenants and agreements herein
contained to be kept and performed by Mortgagor;
e)Except as otherwise permitted in the Loan Agreement, the sale, assignment,
conveyance or other transfer (whether by deed, contract for deed, lease or
otherwise) of the Premises, except for leases for one year or less, not approved
in advance by Mortgagee; or
The failure to comply with and perform all of the requirements of the LCDA
Grant Agreement (as defined below) related to the Premises, which failure
results in the Mortgagee being obligated to indemnify or repay all or any portion
of the LCDA grant funds to the Metropolitan Council.
Upon the occurrence of any Event of Default, Mortgagor hereby authorizes and
empowers Mortgagee to declare the entire indebtedness hereby secured to be
immediately due and payable, at Mortgagee's option, and to enforce the payment
thereof and to foreclose this Mortgage by judicial proceedings or by sale of the
Premises at public auction and convey the same to the purchaser in fee simple, pursuant
to the statutes of the State of Minnesota, and out of the monies arising from said sale
to retain (i) the principal which shall then be due on the indebtedness secured hereby,
and interest, if any, accrued thereon, (ii) an amount equal to all taxes and special
assessments paid by Mortgagee upon the Premises, or then levied and unpaid, (iii) any
sum paid by Mortgagee for principal or interest on any prior mortgage or mortgages
on the Premises, (iv) an amount equal to any insurance premiums paid by Mortgagee
upon the Premises, (v) any other amounts payable by the Mortgagee to the
Metropolitan Council as a result of the failure of the Mortgagor to comply with and
0
239658v1
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perform all of the requirements of the LCDA Grant Agreement related to the Premises,
and (vi) costs and disbursements of such foreclosure, including statutory attorney's
fees; and to pay the surplus, if any, to Mortgagor. In the event of any default hereunder
the Mortgagor agrees to pay the costs of collection including reasonable attomeys' fees.
10. So long as this Mortgage and the Note evidencing the indebtedness secured hereby are
held by Mortgagee, Mortgagor will not execute or file for record any instrument which imposes
a restriction upon the sale or occupancy of the Premises on the basis of race, color, religion, or
SEX.
1 l. No delay by Mortgagee in exercising any right or remedy provided herein or otherwise
afforded by law or equity shall be deemed a waiver of or preclude the exercise of such right or
remedy. All such rights and remedies shall be distinct and cumulative and may be exercised
singularly or serially (in any order) or concuffently, and as often as the occasion therefore
arises.
12. Mortgagee may at any time and from time to time, without notice, release any person
liable for the payment of any indebtedness under the Note, extend the time or agree to alter the
terms of payment of any indebtedness, release any property securing any indebtedness, consent
to the creation of any easement on the Premises, or agree to alter or amend the terms of this
Mortgage in any way, all without in any way affecting the liability of any person (other than
the person so released, if any) orthe validity orpriority of this Mortgage (except as it covers
property so released, ifany).
13. The covenants and agreements contained in this Mortgage shall bind, and the rights
conferred hereby shall inure to, the respective, legal representatives, successors and assigns of
Mortgagor and Mortgagee. Wherever used, the singular number shall include the plural, and
the plural the singular. All covenants and agreements of Mortgagor shall be joint and several.
14. Mortgagee shall furnish to Mortgagor a conformed and fully completed copy of the
Note and this Mortgage at the time that this Mortgage is executed or at a reasonable time after
this Mortgage is recorded.
15. The Mortgagee, for itself and its successors and assigns, covenants and agrees that it
will not commence procedures to foreclose on this Mortgage without the prior written consent
of any of the senior lenders orthe Minnesota Housing Finance Agency, or its successors and
assigns ("MHFA") if there is a mortgage held by MHFA on the Project.
16. The Loan is a non-recourse obligation of the Mortgagor. Neither Mortgagor nor any of
its members or officers, nor any other party, shall have any personal liability for repayment of
the Loan. The sole recourse of Mortgagee for repayment of the Loan shall be the exercise of
its rights against the Premises and related security thereunder.
17. Except for willful misrepresentation, misconduct or negligence of the Indemnified
Parties (as hereafterdefined), and except forany breach by any of the Indemnified Parties of
their obligations under the Loan Agreement, this Mortgage or the Note, the Mortgagor agrees
239658v1
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to protect and defend the Mortgagee and the governing body members, officers, agents,
servants and employees thereof (the "lndemnified Parties"), now or forever, and further agrees
to hold the Indemnified Parties harmless from any claim, demand, suit, action or other
proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from
the Loan Agreement, this Mortgage, the Note, or the transactions contemplated hereby or the
acquisition, construction, improvement, ownership, and operation of the Premises.
18. Mortgagee has been awarded a $631,100 LCDA grant from the Metropolitan Council
pursuant to the Metropolitan Livable Communities Act Grant Agreement approved by the
Council on September 23, 2026, committing grant funds from the Council's Livable
Communities Demonstration Account to the Mortgagee (the "LCDA Grant Agreement"), and
has agreed to loan such funds to finance certain costs of the Mortgagor's development of the
Premises. Mortgagee is loaning the funds to Mortgagor pursuant to the Loan Agreement, this
Mortgage and the Note subject to the following conditions:
(a) Loan funds can be used to finance only the costs of general construction of I l0
units of mixed-income senior housing on the Premises, as more fully described in the LCDA
Grant Agreement, and
(b) Loan funds may only be drawn down upon the Mortgagee's receipt of
documentation demonstrating that the work for which the funds are being requested has been
completed.
The Mortgagor shall comply with the foregoing and all other requirements of theLCDA Grant
Agreement related to the Premises and if it fails to do so and the Mortgagee is obligated to repay
all or any portion of the LCDA grant funds to the Metropolitan Council, the Mortgagor shall be
liable to and shall pay to the Mortgagee the amount required to be repaid. The Mortgagor shall
provide the Mortgagee all reports, certificates, information and documents which are necessary for
the Mortgagee to comply with its obligations under the LCDA Grant Agreement.
19. Mortgagor will permit Mortgagee and its agents, upon not less than five (5) days' prior
written notice, to enter and to authorize others to enter upon any or all of the Premises, or
inspect Mortgagor's records regarding the Premises at reasonable times during normal business
hours, to perform or observe any covenants, conditions, or terms which Mortgagor shall fail to
perform, meet or comply with and which Mortgagee is authorized to perform under the terms
of this Mortgage, or for any other purpose in connection with the protection or preservation of
Mortgagee's security, without thereby becoming liable to Mortgagor or any person in
possession under Mortgagor.
20. Mortgagee acknowledges that Mortgagor has entered into and delivered or intends to
enter into and deliver concurrently with the execution and delivery of this Mortgage, a first lien
Mortgage, Security Agreement, and Fixture Financing Statement ("Senior Mortgage") in favor
of Merchants Bank, National Association, its successors and assigns ("Senior Lender")
securing indebtedness evidenced by that certain Promissory Note Secured by Mortgage
("Senior Note") payable to Senior Lender. Mortgagee agrees to subordinate the lien of this
Mortgage to the Senior Mortgage and Senior Mortgage loan documents, and that this Mortgage
239658v1
115
is and shall be subject and subordinate in all respects to the liens, termso covenants and
conditions of the Senior Mortgage as more fully set forth in that certain Master Subordination
Agreement and Estoppel Certificate of even date herewith between the Mortgagor, Senior
Lender, the Ramsey County Housing and Redevelopment Authority, MHFA, and the
Mortgagee.
(Execution page follows.)
239658v1
116
IN WITNESS WHEREOF, Mortgagor has executed this Mortgage the day and year
first above written.
MORTGAGOR
FATRWAY COMMONS, LTMITED
PARTNERSHIP, a Minnesota limited partnership
By: Falcon Heights Ghoup LLC, a Minnesota
limited liability company, its General
Partner
Name: Tyler Manning
Title: Vice President and Secretary
STATE OF MINNESOTA
COUNTY OF
)
)SS
)
The foregoing instrument was acknowledged before me this day of
2026, by Tyler Manning, the Vice President and Secretary of Falcon Heights
Group LLC, a Minnesota limited liability company, as general partner of Fairway Commons,
Limited Partnership, on behalf of the limited partnership.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Campbell Knutson,
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Ste.290
Eagan, MN 55121
Phone: (651) 452-4000
239658v1
117
EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Falcon Heights, County of Ramseyo State of Minnesota, described as follows:
Parcel l:
The East 250 feet of the North 500 feet except the West 150 feet ofthe East 160 feet of the North 283 feet
of the Northwest Quarter of the Northeast Quarter of the Northeast Quarter of Section 2l , Township 29,
Range 23.
Parcel2:
The West 150 feet of the East 160 feet of the North 283 feet of the Northwest Quarter of the Northeast
Quarter of the Northeast Quarter of Section 21, Township 29, Range 23, West of the Fourth Principal
Meridian.
(All Tonens Property, Certificate of Title No. 640336)
43009967v3
239658v1
A-1
118
CITY OF' F'ALCON HEIGHTS
COUNCIL RESOLUTION
September 23,2026
No.26-82
RESOLUTION AUTHORIZING THE APPROVAL OF THE LOAN AGREEMENT FOR
THE F'AIRWAY COMMONS PROJECT
WHEREAS, Fairway Commons is a proposed I l0-unit age-restricted multifamily rental
housing development located at 1670 Larpenteur Avenue West, intended to serve low- and
moderate-income households in alignment with the City's comprehensive plan and regional
housing goals; and
WHEREAS, Fairway Commons, Limited Partnership ("Borrower")-affiliated with MWF
Properties/Velair Development Company, requested that the City ("Lender") submit for a
Livable Communities/LCA Development Grant, which the Metropolitan Council awarded on
August 12,2026 in the amount of $63 l, 100, including $88,500 for environmental cleanup and
$542,600 for general construction; and
WHEREAS, Fairway Commons has requested that the City enter into a Master Disbursement
Agreement ("MDA") and Master Subordination Agreement ("MSA") to structure access to
funding sources and to establish loan priority among various lenders involved in the
development; and
WHEREAS, the City is required to enter into a Grant Agreement with the Metropolitan Council
to receive and administer these Livable Communities Demonstration Account funds, with the
Grant Agreement expected to be provided to the City in the near future; and
WHEREAS' in order to distribute the grant funds to Fairway Commons, a Loan Agreement-
evidenced by a Promissory Note and secured by a Mortgage-is necessary, with Fairway
Commons required to provide a mortgage to the City as a condition of disbursement along with
additional required documentation; and
WHEREAS, the Loan Agreement limits the loan amount to the grant proceeds received, capping
disbursement at the lesser of the loan amount or the amount disbursed by the Metropolitan
Council;and
WHEREAS, the Loan Agreement requires the City to disburse the loan once all conditions
established in the Loan Agreement are met; and
WHEREAS, the Loan Agreement gives the City the right, but not the obligation, to inspect and
audit the Borrower's records related to the loan proceeds, enforce the Loan Agreement and
119
attached documents, declare default remedies, recover enforcement costs, and require
reimbursement for costs related to the Agreement; and
WHEREAS, the City is required to perform certain obligations under the Loan Agreement,
including coordinating with the Metropolitan Council, submitting required documentation,
completing formal municipal actions, and administering the Grant Agreement; and
WHEREAS' the Fairway Commons development will be subject to long-term income and rent
restrictions, including requirements that at least 40%o of units be occupied by households at or
below 60% of AMI, along with additional affordability requirements under an extended-use
agreement related to federal low-income housing tax credits; and
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights,
Minnesota:
1. The City Council hereby approves the Loan Agreement for the Fairway Commons
development and authorizes the Mayor and City Administrator to execute said agreement
and all related financing documents on behalf of the City, including completion of final
documents prior to closing so long as revisions do not materially adversely affect the
City.
Moved by: \i aSS-",.\:--3 Approved
In Favor Attested by:
lc.
Mayor
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
5
Against Administrator
120
FnLCofl HECHTS
THE CIfY THAT SOAPS
REQUEST FOR COUNCIL ACTION
Meeting Date September 23,2026
Agenda Item Policy H4
Attachment See below
Submitted By Jack Lineharu City Administrator
Item Master Agreements with Fairway Commons, Limited Partnership for Livable
Communities Grant
Description Ryan Schwickert of Velair Development Company/ on behalf of Fairway Commons,
Limited Partnership, has submitted several documents related to the Livable
Communities Grant that the Metropolitan Council recently awarded to the Fairway
Commons housing development.
At the September 23,2026, City Council meeting, the Council is asked to consider and
approve a resolution authorizing the approval of a loan agreement for the Fairway
Commons housing development.
Proiect Background
Fairway Commons is a proposed 110-unit age-restricted multifamily rental housing
development located at1.670 Larpenteur Avenue West. The project will serve low-
and moderate-income households, consistent with the City's comprehensive plan and
regional housing goals. Ln2025, the Fairway Commons, Limited Partnership
(affiliated with MWF Properties /Yelair Development Company) ("Borrower") was
awarded a Livable Communitie's Grant of $432,500. In Augustof 2026, a total of
$631,100 was awarded with $88,500 for environmental cleanup and $542,600 for
general construction.
Fairway Commons is requesting that the City enter into a Master Disbursement
Agreement (MDA) and Master Subordination Agreement (MSA). The MDA
structures how Fairway Commons will access the various funding sources to which
they have access. Key considerations of the MDA are:
. The City LCDA loans are fifth and sixth in the order.
. The amounts stated for City LCDA Loan2 are incorrect. The MDA states 90%
is $488,340.00 and 10% is $54,260.00. The correct amounts would be
fi567,990.00 (90%) and $63,110.00 (10%).
City of Falcon Heights, Minnesota
121
The MSA establishes loan priority, including priority of loan documents,lines, and
encumbrances, consent to other financing, interpretations, default notices, and
bankruptcy limitations, amongst the various lenders for the Fairway Commons. Key
considerations of the MSA are:
City loans are listed as fourth and fifth priority.
Section 6 requires the Borrower to comply with the most restrictive rent
income, or occupancy requirements which helps preserve affordable housing
Section 8 establishes notice of default but does not establish any liability for
failure to notify.
Section 9 details that proceeds are first used to repair or reinstate the
development.
Section 10 restricts an individual party to commence or join a bankruptcy
proceeding without other parties' consent.
The Council is asked to approve a resolution, which would:
r Authorize the execution of the MDA and MSA.
a
a
a
a
a
Budget Impact The agreements will have no impact on the Crty's budget
Attachment(s)o Master Disbursement Agreement
o Master Subordination Agreement
o Resolution 26-83
Action(s)
Requested
Staff recommends that Council approve Resolution 26-83, Authorizing the
Approval of the Master Disbursement and Master Subordination Agreement for the
Fairway Commons Proiect.
122
MASTER DISBURSEMENT AGREEMENT
THIS MASTER DISBURSEMENT AGREEMENT (this "Agreement") has an effective
date of September 30, 2026, and is entered into among FAIRWAY COMMONS, LIMITED
PARTNERSHIP, a Minnesota limited partnership, with its offices located at 2 Meridian Crossings,
Suite 250, Minneapolis, MN 55423 ("Borrower"), MERCHANTS BANK, NATIONAL
ASSOCIATION, a national banking association, with its offices located at 3586 55th Street NW,
Rochester, MN 55901 ("Merchants"), U.S. BANK, NATIONAL ASSOCIATION, a national
banking association, with its offices located at 505 North Seventh Street, St. Louis, MO 63191
("U.S. Bank"), RAMSEY COUNTY HOUSING AND REDEVELOPMENT AUTHORITY, a
political subdivision of the State of Minnesota, with its offices located at 250 Ramsey County
Courthouse, 15 West Kellogg Boulevard, St. Paul, MN 55102 (the '.HRA"), MINNESOTA
HOUSING FINANCE AGENCY, a public body corporate and politic of the State of Minnesota,
with its offices located at 400 Wabasha Street North, Suite 400, St. Paul, MN 55102-1109
("MHFA"), and the CITY OF FALCON HEIGHTS, MINNESOTA, a municipal corporation
organized under the laws of the State of Minnesota with its offices located at 2077 Larpenteur
Avenue West, Falcon Heights, MN 55113 (the "City"), and FIRST AMERICAN TITLE
INSURANCE COMPANY, a Nebraska corporation, with its offices located at 801 Nicollet Mall,
Suite 1900, Minneapolis, MN 55402 ("Title Company").
RECITALS
A. Borrower has applied to and obtained loans from certain other parties to this
Agreement and will use the proceeds of such loans and additional equity to fund the acquisition,
and construction of a senior multifamily housing development identified as MHFA Development
No. D8956, known or to be known as Fairway Commons (the "Development"), which will be
situated on real property located in the City of Falcon Heights, County of Ramsey, State of
Minnesota, and legally described in Exhibit A attached to this Agreement.
B. The following is a listing and description of the loans that Borrower has obtained
(collectively, the "Loans") and the Equity (as defined in this Agreement) that Borrower will use
to fund the acquisition and construction of the Development (collectively, the "Project Funds"):
Description of Project Funds Amount
A construction to perm tax-exempt loan from Merchants,
52J99,214.00 of which has been disbursed as of the effective date
of this Agreement.
$16,375,000.00
A construction to perm tax exempt loan from Merchants, none of
which has been disbursed as of the effective date of this
Agreement.
s 1,625,000.00
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A construction bridge tax-exempt loan from U.S. Bank, none of
which has been disbursed as of the effective date of this
Agreement.
$3,992,139.00
A construction bridge taxable loan from U.S. Bank, none of which
has been disbursed as of the effective date of this Agreement.
97,401,672.00
A loan from HRA through the HRA Levy Program, none of which
has been disbursed as of the effective date of this Agreement.
$2,431,215.00
A loan from HRA through the Critical Corridors Development and
Infrastructure Program, none of which has been disbursed as of the
effective date of this Agreement.
$500,000.00
A loan from MHFA through the State Housing Tax Credit
f;rogram, none of which has been disbursed as of the effective date
of this Agreement.
$1,500,000.00
A loan from the City of the grant proceeds received from the
Metropolitan Council through the Metropolitan Livable
Communities Act Grant, none of which has been disbursed as of
the effective date of this Agreement.
$432,500.00
A loan from the City of the grant proceeds received from the
Metropolitan Council through the Metropolitan Livable
Communities Act Grant, none of which has been disbursed as of
the effective date of this Agreement.
$63 1,100.00
Funds to be supplied by Borrower, as further described in Section
1(d) of this Agreement, $2,000.00 of which has been disbursed as
of the effective date of this Agreement.
$2,980,763.00
C. Merchants, U.S. Bank, HRA, MHFA and the City have entered into agreements
with Bonower andlor Title Company regarding the disbursement of the Project Funds.
D.
of priority
The parties have agreed that the Project Funds are to be disbursed in a certain order
E. The parties wish to establish how the Project Funds are to be disbursed and the
order of priority for the disbursement.
NOW, THEREFORE, the parties agree as follows:
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l. Definitions. The definitions set forth above are incorporated into this Section 1 by
reference. The following terms have the meanings set out respectively after each such term, and
such meaning are equally applicable to both the singular and plural forms of the term defined:
(a) "City Disbursement Agreement" - An agreement, whether verbal or
written, between the City, Borrower, and, if applicable, Title Company, which provides for
the disbursement of the City LCDA Loan I or City LCDA Loan2.
(b) "City LCDA Loan l" - A loan from the City, through a Metropolitan
council Metropolitan Livable Communities Act Grant to Borrower in an original principal
amount of $432,500.00.
(c) "City LCDA Loan 2" - A loan from the City, through a Metropolitan
council Metropolitan Livable Communities Act Grant to Borrower in an original principal
amount of $631,100.00.
(d) "Equity" - Cash monies in an amount of $2,980,763 to be supplied to Title
Company by Borrower.
(e) '.HRA Disbursement Agreement" - An agreement between the HRA,
Borrower, and, if applicable, Title Company, whether verbal or written, which provides for
the disbursement of the HRA Levy Loan and the HRA CCDI Loan.
(f) '.HRA CCDI Loan" - A loan from the HRA through its Critical Corridors
Development and Infrastructure (CCDI) Loan Program to Borrower in an original principal
amount of $500,000.00.
(g) "HRA Levy Loan" - A loan from the HRA through its Levy Loan Program
to Borrower in an original principal amount of 52,431,215.00.
(h) "Merchants Disbursement Agreement" - An agreement between Merchants,
Borrower, and Title Company, whether verbal or written, which provides for the
disbursement of the Merchants A-l Loan and the Merchants A-2Loan.
(i) "Merchants A-1 Loan" - A loan from the Merchants to Borrower in an
original principal amount of $16,375,000.00.
C) o'Merchants A-2 Loan" - A loan from the Merchants to Borrower in an
original principal amount of $1,625,000.00.
(k) "MHFA Disbursement Agreement" - An agreement between MHFA,
Borrower, and Title Company, whether verbal or written, which provides for the
disbursement of the MHFA SHTC Loan.
0) "MHFA SHTC Loan" - A loan from MHFA through its State Housing Tax
Credit Program to Borrower in an original principal amount of $1,500,000.00.
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(m) "U.S. Bank Disbursement Agreement" - An agreement between the U.S.
Bank, Borrower, and Title Company, whether verbal or written, which provides for the
disbursement of the U.S. Bank B Loan and the U.S. Bank Taxable Loan.
(n) "U.S. Bank B Loan" - A loan from U.S. Bank to Borrower in an original
principal amount of $3,992, I 39.00.
(o) "U.S. Bank Taxable Loan" - A loan from U.S. Bank to Borrower in an
original principal amount of $7,401,672.00.
2. Order of Priority for Disbursement of Project Funds. Each party agrees that
the Title Company has already been, or will be from time to time, supplied with the Project Funds
and must disburse the Project Funds in the following order:
Source of Project Funds
$2,000 of Equity
$2,199,214 of Merchants A-l Loan
HRA Levy Loan
HRA CCDI Loan
City LCDA Loan I
City LCDA Loan2
$750,000.00 of MHFA SHTC Loan
$2,978,763 of Equity
Remainder of Merchants A-l Loan
$375,000.00 of the MHFA SHTC
Loan at 50% Completion
Merchants A-2Loan
U.S. Bank B Loan
U.S. Bank Taxable Loan
$375,000.00 ofMHFA SHTC Loan
completion
Order of Disbursement
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
Thirteenth
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The parties agree that the Project Funds must be disbursed in the order indicated and that
none of the proceeds of a source of funds will be disbursed until all of the proceeds of funds that
are to be disbursed prior to such source have been disbursed. The parties further direct Title
Company to disburse the Project Funds in the order indicated, and Title Company agrees to comply
with such direction.
Notwithstanding the above order of disbursement, the parties agree that if funds from one
funding source (the "Original Funding Source") are unavailable due to (a) the requirements of
the documents governing the eligible uses of such funding source and/or (b) certain conditions for
disbursement of such funds that have not yet been met, subject to the terms of such funding party's
documents, funds from the next funding source in the order above will be made available for
disbursement, but only to the extent the Original Funding Source is unavailable.
3. Disbursement of Individual Loan Proceeds. When Borrower desires the
disbursement of any or all of the Project Funds referred to in Section 2, it will submit a draw
request to the appropriate entity that is supplying such funds. If the draw request meets the
provisions contained in the applicable document that Borrower has entered into with the entity
supplying the requested funds and all other requirements imposed by the applicable document have
been satisfied, then the approving entity will approve the draw request and forward it to Merchants
for authorization for the disbursement of the draw. Merchants' authorization will be solely to
confirm that the Development is being constructed in conformance with all applicable plans and
specifications and will not in any way relate to Borrower's compliance with any provision imposed
by an entity for the disbursement of that entity's funds. Upon authorization by Merchants,
Merchants will forward the draw request to Title Company for disbursement of the applicable
funds.
With respect to the City LCDA Loan l, the parties acknowledge and agree that an amount
equal to ninety percent (90%) of the City LCDA Loan 1 ($389,250.00) will be disbursed at the
closing of the Loans and in accordance with the order of priority set forth in this Section 2, and an
amount equal to ten percent (10%) of the City LCDA Loan I ($43,250.00), will be held back by
the City and disbursed upon completion of construction of the Development, as determined by the
City in accordance with the requirements of the Metropolitan Council Livable Communities Act
Grant.
With respect to the City LCDA Loan2, the parties acknowledge and agree that an amount
equal to ninety percent (90%) of the City LCDA Loan 2 ($567,990.00) will be disbursed at the
closing of the Loans and in accordance with the order of priority set forth in this Section 2, and an
amount equal to ten percent (10%) of the City LCDA Loan 2 ($63,1 10.00), will be held back by
the City and disbursed upon completion of construction of the Development, as determined by the
City in accordance with the requirements of the Metropolitan Council Livable Communities Act
Grant.
Title Company will not disburse any monies without first receiving a draw request
approved by both the entity whose monies are to be disbursed and Merchants, and upon receipt of
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an approved draw request, Title Company will disburse the applicable monies in accordance with
the provisions contained in the following documents:
Source of Project tr'unds Entity Supplying Disbursement Document
to be Disbursed the Source of Project
Funds
Equity Borrower Master Disbursement Agreement
Merchants A-l Loan Merchants Merchants Disbursement Agreement
Merchants A-2Loan Merchants Merchants Disbursement Agreement
U.S. Bank B Loan U.S. Bank U.S. Bank Disbursement Agreement
U.S. Bank Taxable Loan U.S. Bank U.S. Bank Disbursement Agreement
HRA Levy Loan HRA HRA Disbursement Agreement
HRA CCDI Loan HRA HRA Disbursement Agreement
City LCDA Loan I City City Disbursement Agreement
City LCDA Loan2 City City Disbursement Agreement
MHFA SHTC Loan MHFA MHFA Disbursement Agreement
4. Binding Effect. This Agreement is binding upon and inures to the benefit of the
parties to this Agreement and their respective successors and assigns.
5. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which is an original but all of which will constitute one instrument.
(THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK)
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IN WITNESS WHEREOF, the parties have executed this Master Disbursement
Agreement as of the date first written above.
BORROWER:
FAIRWAY COMMONS, LTMITEn
PARTNERSHIP,
a Minnesota limited partnership
By: FALCON HEIGHTS GROUP LLC,
a Minnesota limited liability company
Its: General Partner
By:
Tyler Manning
lts: Vice President and Secretary
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MERCHANTS:
MERCHANTS BANK, NATIONAL
ASSOCIATION,
a national banking association
By
Jarett Jones
Its: Market President
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U.S. BANK:
u.s. BANK, NATTONAL ASSOCTATTON,
a national banking association
By
Its:
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IIRA
RAMSEY COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Ling Becker
Its: Ramsey County Manager
Approval Recommended.
Community and Economic Development
Approved as to Form.
Assistant Ramsey County Attomey
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132
B
Its
CITY OF',FALCON HETGHTS, MTNNESOTA
By
J L
Its:Administrator
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MINNESOTA HOUSING FINANCE AGENCY
James Lehnhoff
Assistant Commissioner, Multifamily
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By
Its:
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TITLE COMPANY:
FIRST AMERICAN TITLE INSURANCE
coMPANY,
a Nebraska corporation
MHFA Dev. #8956
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By:
Its:
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Exhibit A
LEGAL DESCRIPTION
Realproperty in the City of Falcon Heights, County of Ramsey, State of Minnesota, described as
follows:
Parcel l:
The East 250 feet of the North 500 feet except the West 150 feet of the East 160 feet of the North
283 feet of the Northwest Quarter of the Northeast Quarter of the Northeast Quarter of Section 21,
Township 29,Range23.
Parcel2:
The West 150 feet of the East 160 feet of the North 283 feet of the Northwest Quarter of the
Northeast Quarter of the Northeast Quarter of Section 21, Township 29, Range 23, West of the
Fourth Principal Meridian.
(All Tonens Property, Certificate of Title No. 640336)
43140299v10
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FOR USE BY FILING OFFICER ONLY
MASTER SUBORDINATION AGREEMENT
AND
ESTOPPEL CERTIFICATE
THIS MASTER SUBORDINATION AGREEMENT AND ESTOPPEL
CERTIFICATE (this "Agreement") is effective as of the 30th day of September, 2026, and
entered into among FAIRWAY COMMONS, LIMITED PARTNERSHIP, a Minnesota limited
partnership ("Borrower"), MERCHANTS BANK, NATIONAL ASSOCIATION, a national
banking association ("Merchants"), MINNESOTA HOUSING FINANCE AGENCY, a public
body corporate and politic of the State of Minnesota ("MHFA"), the RAMSEY COLINTY
HOUSING AND REDEVELOPMENT AUTHORITY, a political subdivision of the State of
Minnesota (the "HRA"), and the CITY OF FALCON HEIGHTS, MINNESOTA, a municipal
corporation organized under the laws of the State of Minnesota (the "City").
RECITALS
A. Borrower has applied to and obtained certain loans from the other parties to this
Agreement and will use the proceeds of the ioans and additional equity to fund the acquisition,
construction and/or rehabilitation of a multifamily housing development identified as MHFA
Development No. D8956 (the "Development"), which will be situated on real property located in
the City of Falcon Heights, County of Ramsey, State of Minnesota, and legally described in
Exhibit A attached to this Agreement (the "Property").
B. The following is a listing and description of the loans that Borrower has obtained
from the other parties to this Agreement (collectively, the "Loans"), and the repayment of the
Loans will be secured by liens on the Property, and a listing of the documents that evidence and
secure the repayment of the Loans (collectively, the "Loan Documents"):
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Description of Loan
A loan from Merchants through its
purchase ofrevenue notes issued
by the City to finance the
Merchants A-1 Loan.
A loan from Merchants through its
purchase ofrevenue notes issued
by the City to finance the
Merchants A-2Loan.
A loan from MHFA through its
State Housing Tax Credit (SHTC)
Program.
A loan from the HRA through its
Levy Loan Program.
A loan from the HRA through its
Critical Corridors Development and
Infrastructure Program.
A loan from the City through a
Metropolitan Council Metropolitan
Livable Communities Act Grant for
the year 2025.
A loan from the City through a
Metropolitan Council Metropolitan
Livable Communities Act Grant for
the year 2026.
Amount of
Loan
$16,375,000.00
$ 1,625,000.00
$1,500,000.00
$2,431,215.00
$500,000.00
$432,500.00
$631,100.00
Loan Documents Evidencing
and Securing Repayment
Those documents set forth in
Exhibit F attached to this
Agreement.
Those documents set forth in
Exhibit F attached to this
Agreement.
Those documents set forth in
Exhibit B attached to this
Agreement.
Those documents set forth in
Exhibit C attached to this
Agreement.
Those documents set forth in
Exhibit D attached to this
Agreement.
Those documents set forth in
Exhibit E attached to this
Agreement.
Those documents set forth in
Exhibit G attached to this
Agreement.
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C. The parties intend that the Loans, the corresponding Loan Documents, and other
documents referred to in this Agreement and the liens created by the Loan Documents and other
documents referred to in this Agreement have a certain order of priority.
D. The parties wish to specify how the terms and conditions contained in the Loan
Documents will be interpreted in the event of a conflict or inconsistency.
NOW, THEREFORE, in consideration of good and valuable consideration, and in further
consideration of the parties making and entering into the Loans, the parties to this Agreement agree
as follows:
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l. Definitions. For the purposes of this Agreement, the definitions set forth above are
incorporated into this Section I by reference. The following terms have the meanings set out
respectively after each term, and its meaning is equally applicable to both the singular and plural
forms of the term defined:
(a) "Bankruptcy Proceeding" means any bankruptcy, reorganization,
insolvency, composition, restructuring, dissolution, liquidation, receivership, assignment
for the benefit ofcreditors, or custodianship action or proceeding under any federal or state
law with respect to Borrower, any guarantor of any of the Loan Documents, any of their
respective properties, or any of their respective partners, members, officers, directors, or
shareholders.
(b) "City LCDA Loan l" means a loan from the City of grant proceeds received
from the Metropolitan Council through the Metropolitan Livable Communities Act Grant
to Borrower, in an original principal amount of $432,500.00, pursuant to the Metropolitan
Livable Communities Act Grant Agreement approved by the City Council of the City on
November 12,2025.
(c) "City LDCA Loan I Documents" means those documents listed in Exhibit
E attached to this Agreement which evidence and secure the repayment of City LCDA
Loan l.
(b) "City LCDA Loan2" means a loan from the City of grant proceeds received
from the Metropolitan Council through the Metropolitan Livable Communities Act Grant
to Borrower, in an original principal amount of $631,100.00, pursuant to the Metropolitan
Livable Communities Act Grant Agreement approved by the City Council of the City on
August 12,2026.
(c) "City LCDA Loan2 Documents" means those documents listed in Exhibit
G attached to this Agreement which evidence and secure the repayment of City LCDA
Loan2.
(d) "HRA CCDI Loan" means a loan from the HRA through its Critical
Corridors Development and Infrastructure ("CCDI") Loan Program to Borrower in an
original principal amount of $500,000.00.
(e) "HRA CCDI Loan Documents" means those documents listed in Exhibit D
attached to this Agreement which evidence and secure the repayment of the HRA CCDI
Loan.
(0 "HRA Levy Loan" means a loan from the HRA through its Levy Loan
Program to Borrower in an original principal amount of $2,431,215.00.
(g) ooHRA Levy Loan Documents" means those documents listed in Exhibit C
attached to this Agreement which evidence and secure the repayment of the HRA Levy
Loan.
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(h) "MHFA SHTC Loan" means a loan from MHFA through its State Housing
Tax Credit (SHTC) Program to Borrower in an original principal amount of $1,500,000.00.
(i) "MHFA SHTC Loan Documents" means those documents listed in Exhibit
B attached to this Agreement which evidence and secure the repayment of the MHFA
SHTC Loan.
(j) "Merchants A-l Loan" means a loan from Merchants in the principal
amount of $16,375,000.00, the proceeds of which were derived from the sale of the
Multifamily Housing Revenue Note (Fairway Commons Project) Series 2026A-l in the
principalamount of $16,375,000.00, executed by the City forthe benefit of Merchants.
0) "Merchants A-2 Loan" means a loan from Merchants in the principal
amount of $1,625,000.00, the proceeds of which were derived from the sale of the
Multifamily Housing Revenue Note (Fairway Commons Project) Series 2026A-2 in the
principal amount of $ 1,625,000.00, executed by the City for the benefit of Merchants.
(k) "Merchants Loan Documents" means those documents listed in Exhibit F
attached to this Agreement which evidence and secure the repayment of Merchants A-l
Loan and Merchants A-2 Loan.
2. Consent to Loans, Liens and Encumbrances. The parties agree and consent to all
of the Loans and agree that all of the liens and encumbrances created by the Loan Documents are
deemed to be permitted encumbrances under their respective Loan Documents. The parties further
agree to execute any and all documents that any party to this Agreement may reasonably request
in order to document that the liens and encumbrances are permitted encumbrances under their
respective Loan Documents.
3. Use of Loan Documents. The parties agree and consent to the use of the Loan
Documents set forth in the attached exhibits in conjunction with the Loan referenced in each
exhibit. In addition, each party, as to the Loan Documents that correspond to one of its Loans,
does hereby covenant, warrant, consent and agree that (i) the described Loan Documents are all of
the documents that the party has entered into regarding the corresponding Loan, (ii) there are no
documents relating to its Loan other than the described Loan Documents for its Loan, (iii) it will
not enter into any other document for its Loan that would adversely impact any other party or
parties to this Agreement without the prior written consent of the party or parties (excluding
documentation of amounts having been advanced by a party for the protection of its security interest
or lien priority pursuant to the Loan Documents), (iv) any existing document or documents that may
come into existence in the future to which a party is or becomes a party or from which a party
obtains a benefit that is different from the benefits that the other parties have received or will
receive, and that is not listed in the Loan Documents set forth in this Agreement for the Loan, will
be of no force or effect until approved and consented to in writing by all of the parties to this
Agreement upon which the document has, or will have, an adverse effect (excluding documentation
of amounts having been advanced by a party for the protection of its security interest or lien priority
pursuant to the Loan Documents), and upon written approval, the documents will automatically be
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considered to be included in the exhibit to this Agreement setting forth the Loan Documents for
the Loan. The other parties to this Agreement will execute any document that may reasonably be
requested in order to include the document in the exhibit.
4. Subordination of Loans and Loan Documents.
(a) Loan Priority. Except as specifically provided below, each party agrees to
the following priority of the Loan Documents and any and all the liens and encumbrances
created by the Loan Documents and subordinates its respective Loan Documents and the
liens and encumbrances created by its respective Loan Documents to those Loan
Documents and liens and encumbrances created by the Loan Documents that are listed as
having a priority over its Loan Documents and the liens and encumbrances created by its
respective Loan Documents:
Loan Documents and
Liens and Encumbrances
Created by the Loan Documents
Merchants Loan Documents
HRA Levy Loan Documents
HRA CCDI Loan Documents
City LCDA Loan I Documents
City LCDA Loan2 Documents
MHFA SHTC Loan Documents
Party to the Loan Documents
and Holder of Liens and
Encumbrances Created by the
Loan Documents
Order of
Priorify
Merchants
HRA
HRA
City
City
MHFA
First
Second
Third
Fourth
Fifth
Sixth
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(b) Tax Credit Declaration. The parties acknowledge that the Development is
intended to receive the benefits of Low Income Housing Tax Credits (the "Credits")
pursuant to Section 42 of the Internal Revenue Code ("Section 42") and that it is a condition
of the receipt of the Credits that Borrower file a Declaration of Land Use Restrictive
Covenants for Low-Income Housing Credits (the "Tax Credit Declaration") substantially
in the form attached to this Agreement as Exhibit H. The parties consent to the terms of
the Tax Credit Declaration as required by Section 2(c) of the Tax Credit Declaration and
agree that the Tax Credit Declaration is subordinate to each of their Loans and the related
Loan Documents, except to the extent required by Section 9(d) of the Tax Credit
Declaration (relating to the three-year vacancy control during the extended use period).
5. Interpretation. The parties are entering into and executing this Agreement in order
to establish the subordination and priority of the Loan Documents and any liens and encumbrances
created by the Loan Documents, and, accordingly, the parties agree, understand, and acknowledge
that the enforceability of this Agreement is not, and will not be, restricted, limited, or impaired by
the fact that not all of the parties to this Agreement are signatories to each or any of the Loan
Documents.
6. Most Restrictive Requirements. Notwithstanding the order of priority and
subordinations granted in this Agreement, the Borrower will comply not only with the Loan
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Documents having first priority but with all Loan Documents. For example, if a party's Loan
Documents contain rent, income or occupancy requirements that are more restrictive than Loan
Documents that are more senior in priority, then the Borrower will comply with the more restrictive
Loan Documents for as long as they remain in effect.
7. Absence of Events of Default and Compliance with Closing Requirements. Each
party states, represents, and warrants that as to each of its individual Loans, (i) its Loans have been
duly closed, (ii) there are no events of default, or events that with the passage of time could
constitute an event of default, currently existing with respect to any of its Loans, and (iii) allof its
Loans are in good standing.
8. Notice of Default and Cure Rights. Each party will deliver to the other parties a
default notice within five business days in each case where a parry has given a default notice to
Borrower (provided that each party will have no liability to any party for failure to timely give notice).
Failure of the notifying parfy to send a default notice to the other parties will not prevent the exercise
of the notifoing party's rights and remedies under the Loan Documents, subject to the provisions of
this Agreement. The other parties will have the opportunity, but not the obligation, to cure any default
within 60 days following the date of the notice; provided, however that the notifring parly will be
entitled, during the 60-day period, to continue to pursue its rights and remedies under the Loan
Documents.
9. Use of Insurance and Condemnation Proceeds. Notwithstanding any provisions to
the contrary contained in this Agreement,or in any of the Loan Documents, the parties agree that any
and all insurance and/or condemnation proceeds will be used first to repair or reinstate the
Development. If there are any remaining proceeds, or if the amounts are insufficient to repair or
reinstate the Development, or if the Development cannot be repaired or reinstated, then the proceeds
will be used to pay off the Loans in order of the priority of the Loan Documents specified in this
Agreement.
10. Agreement Not to Commence Bankruptcy Proceeding. The parties agree that during
the term of this Agreement they will not commence, or join with any other creditor in commencing,
any Bankuptcy Proceeding with respect to Borrower, without the other parties' prior written
consents.
ll. Survival of Termination. The terms of this Agreement will continue, and will
survive the termination of this Agreement, if any payment under the Loan Documents (whether by
or on behalf of Borrower, as proceeds of security or enforcement of any right of set-off or
otherwise) is for any reason repaid or returned to Borrower or its insolvent estate, or avoided, set
aside or required to be paid to Borrower, a trustee, receiver or other similar party under any
bankruptcy, insolvency, receivership or similar law. In the event, any or all ofthe Loans originally
intended to be satisfied will be deemed to be reinstated and outstanding to the extent of any
repayment, return, or other action, as if the payment had not been made.
12. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which will be an original but all of which willconstitute one instrument.
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IN WITNESS WHEREOF, the parties have executed this Master Subordination
Agreement and Estoppel Certificate as of the date first written above.
BORROWER:
FAIRWAY COMMONS, LIMITED
PARTNERSHIP
a Minnesota limited partnership
By: FALCON HEIGHTS GROUP LLC
a Minnesota limited liability company
General Partner
By:
Tyler Manning, Vice President and
Secretary
STATE OF MINNESOTA
COUNTY OF
The foregoing instrument was acknowledged before me this _ day of
2026, by Tyler Manning, the Vice President and Secretary of Falcon Heights
Group LLC, a Minnesota limited liability company and the General Partner of Fairway Commons,
Limited Partnership, a Minnesota limited partnership, on behalf of the limited liability company
and the limited partnership.
Notary Public
THIS DOCUMENT WAS DRAFTED BY
Minnesota Housing Finance Agency
400 Wabasha Street North, Suite 400
St. Paul, MN 55102-1109
)
)
)
SS
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MHF'A:
MINNESOTA HOUSING FINANCE AGENCY
James Lehnhoff
Assistant Commissioner, Multifamily
STATE OF MTNNESOTA
COUNTY OF RAMSEY
The foregoing instrument was acknowledged before me this day of
20--, by James Lehnhoft Assistant Commissioner, Multifamily of the Minnesota Housing
Finance Agency, on behalf ofthe agency.
Notary Public
SS
)
)
)
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MERCHANTS:
MERCHANTS BANK, NATIONAL
ASSOCIATION,
a national banking association
Its
Jarett Jones
Market President
STATE OF MINNESOTA
COUNTY OF
Theforegoinginstrumentwasacknowledgedbeforemethisdayof-,
2026,by Jarett Jones, the Market President of Merchants Bank, National Association, a national
banking association.
Notary Public
ss.
)
)
)
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HRA:
RAMSEY COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Ling Becker
Ramsey County Manager
Approval Recommended.
Community and Economic Development
Approved as to Form:
Assistant Ramsey County Attorney
STATE OF MINNESOTA
COI-INTY OF RAMSEY
The foregoing instrument was acknowledged before me this _ day of
2026, by Ling Becker, as Ramsey County Manager of the Ramsey County Housing and
Redevelopment Authority, on behalf of the public body.
Notary Public
ss.
)
)
)
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CITY:
CITY OF FALCON HEIGHTS, MINNESOTA
Gu
Its Mayor
By
Jack
Its City istrator
STATE OF MINNESOTA
COUNTY OF RAMSEY
The foregoing instrument was acknowledged before me this ?3 auy ofss\eq.\:ec,
2026, by Randy Gustafson, the Mayor of the City of Falcon Heights, Minnesota, h municipal
corporation and political subdivision organized and existing under the Constitution and laws of
the State of Minnesota, on behalfofthe Assignor.
)
)
)
SS
ilfu*,4, /\rlo^....
Notary Ruy'lic /
STATE OF MINNESOTA )
) SS.
COUNTY OF RAMSEY )
The foregoing instrument was acknowledged before me this ?3 auy of Sa\r"Fennbe-c;
2026,by Jack Linehan, the City Administrator ofthe City of Falcon Heights, Minnesota, a municipal
corporation and political subdivision organized and existing under the Constitution and laws of
the State of Minnesota, on behalf of the Assignor.
4 lL,!/r'-
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ExhibitA
LEGAL DESCRIPTION
Real property in the City of Falcon Heights, County of Ramsey, State of Minnesota, described as
follows:
Parcel l:
The East 250 feet of the North 500 feet except the West 150 feet of the East 160 feet of the North
283 feet of the Northwest Quarter of the Northeast Quarter of the Northeast Quarter of Section 21,
Township 29,Range23.
Parcel2;
The West 150 feet of the East 160 feet of the North 283 feet of the Northwest Quarter of the
Northeast Quarter of the Northeast Quarter of Section 21, Township 29, Range 23, West of the
Fourth Principal Meridian.
(All Tonens Property, Certificate of Title No. 640336)
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Exhibit B
MHFA SHTC LOAN DOCUMENTS
Minnesota Housing Finance Agency State Housing Tax Credit Program Combination
Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Financing
Statement, made by Borrower in favor of MHFA, of even date with the document to which
this exhibit is attached, securing the repayment of a loan in an original principal amount of
$ 1,500,000.00, which will be recorded in the Office of the Registrar of Titles for Ramsey
County, Minnesota.
2. Minnesota Housing Finance Agency State Housing Tax Credit Program Declaration of
Covenants, Conditions and Restrictions, made by Borrower in favor of MHFA, of even
date with the document to which this exhibit is attached, which will be recorded in the
Office of the Registrar of Titles for Ramsey County, Minnesota.
3. The following additionalMHFA SHTC Loan Documents:
(a) Minnesota Housing Finance Agency State Housing Tax Credit Program Loan
Agreement;(b) MasterDisbursementAgreement;(c) Minnesota Housing Finance Agency State Housing Tax Credit Program Mortgage
Note in an original principal amount of $1,500,000.00; and(d) Request for Notice of Foreclosure.
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Exhibit C
HRA LEVY LOAN DOCUMENTS
l. Loan Agreement of even date herewith by and between Borrower and the HRA.
2. Promissory Note of even date herewith executed by Borrower in favor of the HRA in the
principal amount of $2,43 l,2I 5.00.
3. Statutory Mortgage, Assignment of Leases and Rents, and Fixture Financing Statement of
even date herewith made by Borrower to and in favor of the HRA.
4. Declaration of Covenants, Conditionso and Restrictions (HRA Levy), of even date
herewith, made by Borrower to and in favor of the HRA.
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Exhibit D
HRA CCDI LOAN DOCUMENTS
l. Critical Corridors Development and Infrastructure Loan Agreement of even date herewith
by and between Borrower and the HRA.
2. Promissory Note of even date herewith executed by Borrower in favor of the HRA in the
principal amount of $500,000.00.
3. Statutory Mortgage, Assignment of Leases and Rents, and Fixture Financing Statement of
even date herewith made by Borrower to and in favor of the HRA.
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Exhibit E
CITY LCDA LOAN 1 DOCUMENTS
1. Loan Agreement of even date herewith by and between Borrower and the City.
2. Promissory Note of even date herewith executed by Borrower in favor of the City in the
principal amount of $432,500.00.
3. Mortgage of even date herewith made by Borrower to and in favor of the City.
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Exhibit F
MERCHANTS LOAN DOCUMENTS
l. Loan Purchase Agreement executed by the Borrower and Lender.
2. Multifamily Housing Revenue Note (Fairway Commons Project) Series 2026A-l
from the Issuer to Merchants in the principal amount of $16,375,000.00.
3. Multifamily Housing Revenue Note (Fairway Commons Project) Series 2026A-2
from the lssuer to Merchants in the principal amount of $1,625,000.00.
4. Combination Mortgage, Security Agreement, Fixture Filing and Assignment of
Leases and Rents executed by the Borrower, as Mortgagor, in favor of the Issuer, as Mortgagee,
as assigned by the Issuer in favor of the Lender pursuant to an Assignment of Mortgage.
5. Guaranties executed by Erik Weis and Jay Weis (the "Guarantors") in favor of
Lender
6. Security Agreement executed by the Borrower in favor of the Lender
7. Indemnification Agreement-Environmental/ ADA executed by the Borrower and
Guarantors in favor of Lender.
8. Collateral Assignment of Interest in Agreements Affecting Real Estate for the
Project, executed by the Borrower in favor of Lender, together with such acknowledgments thereof
by the contracting parties as the Lender shall require.
9. Collateral Assignment of the Property Management Agreement for the Project,
executed by Borrower in favor of Lender, together with an acknowledgment from the property
manager.
10 Assignment of Capital Contributions executed by the Borrower in favor of Lender.
Collateral Assignment of Contract Rights executed by the Borrower in favor of the
Lender
12. Pledge Agreement - Partnership Interest executed by Falcon Heights Group LLC,
a Minnesota limited liability company, the General Partner of Borrower (the "General Partner") in
favor ofLender.
13. Pledge Agreement - Partnership Interest executed by Falcon Heights SLP LLC, a
Minnesota limited liability company, the Special Limited Partner of Borrower (the "Special
Limited Partner") in favor of Lender.
14. Assignment of Development Fee executed by Falcon Heights Group Development
LLC, a Minnesota limited liability company (the "Developer"), in favor of Lender.
ll
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15.
secured party.
UCC-I Financing Statement identifting Borrower as debtor and Merchants as
16. UCC-I Financing Statement identifying General Partner as debtor and Merchants
as secured party.
17. UCC-I Financing Statement identifying Special Limited Partner as debtor and
Merchants as secured party.
18. UCC-I Financing Statement identifing Developer as debtor and Merchants as
secured party.
19. Loan Disbursement Agreement executed by the Borrowero Lender and Title
Company, as disbursing agent.
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' Exhibit G
CITY LCDA LOAN 2 DOCUMENTS
l. Loan Agreement of even date herewith by and between g;ro*., and the City.
2. Promissory Note of even date herewith executed by Borrower in favor of the City in the
principal amount of $631,100.00.
3. Mortgage of even date herewith made by Borrower to and in favor of the City.
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43 165584v6
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TAX CREDIT DECLARATION
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CITY OF'FALCON HEIGHTS
COUNCIL RESOLUTION
September 23,2026
No.26-83
RESOLUTION AUTHORIZING THE APPROVAL OF THE MASTER
DISBURSEMENT AND MASTER SUBORDINATION AGREEMENT FOR THE
F'AIRWAY COMMONS PROJECT
WHEREAS, Fairway Commons is a proposed I lO-unit age-restricted multifamily rental
housing development located at 1670 Larpenteur Avenue West, intended to serve low- and
moderate-income households in alignment with the City's comprehensive plan and regional
housing goals;AND
WHEREAS,in2025, Fairway Commons, Limited Partnership ("Borrower"Faffiliated with
MWF Properties/Velair Development Company-was awarded a Livable Communities Grant of
$432,500, and in August 2026 was further awarded $63 1,100, consisting of $88,500 for
environmental cleanup and $542,600 for general construction; and
WHEREAS, Fairway Commons has requested that the City enter into a Master Disbursement
Agreement ("MDA") and Master Subordination Agreement ("MSA") to structure access to
funding sources and to establish loan priority among various lenders involved in the
development; and
WHEREAS, the MDA structures how Fairway Commons will access the various funding
sources and identifies the City's LCDA loans as fifth and sixth in the order of funding
distribution; and
WHEREAS, City staff have identified corrections needed in the MDA to accurately reflect the
90Yo and l\Yo allocations of City LCDA Loan2, adjusting the stated amounts to $567,990.00
(90%) and $63,110.00 (10%); and
WHEREAS, the MSA establishes loan priority, interpretation of documents, consent
requirements for financing, default notices, and bankruptcy limitations among the various
lenders and identifies City loans as fourth and fifth priority; and
WHEREAS, Section 6 of the MSA requires the Borrower to comply with the most restrictive
rent, income, or occupancy requirements, thereby helping preserve affordable housing; and
WHEREAS, Section 8 of the MSA establishes default notice procedures, and Section 9 requires
that proceeds be used first to repair or reinstate the development, while Section l0 restricts any
individual lender from initiating or joining a bankruptcy proceeding without consent of the other
parties; and
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NOW THEREFORE BE IT RESOLVED by the City Council of the City of Falcon Heights,
Minnesota:
The City Council approves the Master Disbursement Agreement and Master
Subordination Agreement for the Fairway Commons development and authorizes the
Mayor and City Administrator to execute said agreements on behalf of the City and carry
out the City's obligations thereunder.
Moved by: V\o 3€-c)
GUSTAFSON
MAY
MIELKE
MOGEN
WASSENBERG
Approved
In Favor Attested by
Against C Administrator
C.
5L J
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