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• • • AGENDA ITEM 6B STAFF ORIGINATOR: Mary Alice Divine DATE: 12/18/06 TOPIC: Resolution No. 06 -214, Approving Extension of Metropolitan Council Grant Agreement and Loan to LLAH Limited Partnership Vote Required: Simple Majority BACKGROUND: The City of Lino Lakes obtained a $225,000 grant under the Livable Communities Act Local Housing Incentives Account on December 16, 2004 for the purpose of helping to finance Lakewood Apartments in the Legacy at Woods Edge project. The grant agreement has an expiration of December 31, 2006. Hartford Group and LLAH Limited Partnership are expected to close on the financing of the property in late December and begin construction shortly thereafter. Due to delay in the start of construction, the Metropolitan Council has agreed to extend the grant for one year upon approval by the city council. Additionally, the developer has requested, in order to facilitate their financing, that the grant be provided in the form of a 30 -year interest free loan. The grant agreement authorizes the city to use grant funds to make deferred loans. Because the EDA is the administrator of Development District No. 1 in which this project will occur, legal counsel has advised that the EDA is the appropriate authority to provide this ban. Two actions will need to be undertaken by the city. The council will need to approve extension of the grant agreement and assign the loan to the EDA. RECOMMENDATION: Staff is recommending approval of Resolution No. 06 -214, Accepting the Metropolitan Council Grant and Approving a Loan to LLAH Limited Partnership, ATTACHMENTS 1. Resolution No. 06 -214