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<br /> <br /> Staff Report <br /> <br /> <br />To: Mayor Fischer and Members of the Little Canada City Council <br /> <br />From: Ben Harrington, AICP, Community Development Director <br /> <br />Date: January 28, 2026 <br /> <br />Re: Minnesota DEED Grant for Lupe Development <br /> <br />Actions To Be Considered: <br />Motion to approve, table, or deny the following: <br />• Adoption of Resolution 2026-1-10 approving Lupe Development Partners redevelopment grant <br />application to the Minnesota Department of Employment and Economic Development <br /> <br />• Adoption of Resolution 2026-1-11 approving commitment of the local match and authorizing <br />contract execution for the 99 County Road B redevelopment grant application <br /> <br />Background: <br />Lupe Development Partners proposes to construct a 106-unit affordable senior housing apartment <br />development at 99 County Road B. The city has previously reviewed and approved the proposed land <br />use and development entitlements for the project and has coordinated with the developer in connection <br />with state bonding through Minnesota Management and Budget. <br /> <br />State bonds have been formally awarded to the project. Lupe Development Partners now anticipates <br />closing on project financing and beginning construction in June 2026. <br /> <br />Lupe Development Partners has requested the City’s assistance in applying for a final grant <br />opportunity to support eligible redevelopment activities associated with the project. The project site <br />requires public infrastructure improvements and soil correction that qualify as eligible redevelopment <br />costs. To assist with these activities, the city is seeking pass-through funding through the <br />Redevelopment Grant Program administered by the Minnesota Department of Employment and <br />Economic Development. <br /> <br />The Redevelopment Grant Program requires two separate actions by the City Council: <br />1. Approval of the grant application by the governing body of the municipality in which the <br />project is located; and <br />2. Authorization for the City, as the applicant, to commit the required local match and execute <br />grant-related grant agreements. <br /> <br />Accordingly, staff are presenting two resolutions for Council consideration. The first resolution <br />approves the submission of the Redevelopment Grant application. The second resolution approves the