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programs that may be available through the state and elsewhere, for businesses,but the way this <br /> was set up initially it was designed to assist the cities with certain types of improvements within <br /> their own communities. The underlying philosophy is that raw land is generally going to be <br /> developed to find businesses that want to come in and build things. When you are talking about <br /> redevelopment quite often especially in cases where the property is blight in some fashion, or <br /> there are environmental problems you need a little more financial incentive to encourage <br /> businesses to redevelop those sites. This is set up for cities, counties, and other governmental <br /> agencies to apply. <br /> Mr. Marty asked about sources and amounts of the local "match,"what does match mean, we are <br /> matching the funds? <br /> Kevin stated the City would have to "match"the funds. One of the requirements of grant is that <br /> the City or government entity pay for at least one half of the development costs or at least an <br /> amount comparable to what the State of Minnesota will award, and if, in fact, tax increment <br /> financing assistance is provided for this project in an amount, for example, in excess of <br /> $500,000, that would be the City's contribution in tax increment financing assistance. <br /> Mr. Marty asks if this is approved, are we automatically obligated to match the funds. <br /> i� <br /> Kevin stated the City is obligated to match the funds, if you want to get the funds. <br /> Ms. Thomason requests what figure is being proposed. <br /> Kevin stated he was going to take a closer look at the figures at the first time around. We were <br /> looking at both land acquisition costs and also the cost constructing the holding pond and cost of <br /> routing surface water runoff into the pond. That is how we came up with the number. We could <br /> potentially acquire property and then the City would have to own that property for the pond to be <br /> located on it. One of the requirements of this particular grant is that you can't use these grant <br /> funds to acquire property that would end up going to a private company or private individual. <br /> You could do that, but if you do it, then you have to refund a portion of the grant equivalent to <br /> market value property. The City is asking for$350,000 to $400,000. That would make our <br /> application more competitive. <br /> Motion/Second: Thomason/Stigney. Motion to approve Resolution 5323, authorizing <br /> application for DTED redevelopment grant. <br /> Ayes - 4. Nays-0. <br /> 9E. Resolution 5324, Children's Home agreement. <br /> Cari Schmidt stated you have before you resolution 5324 authorizing the City to enter into a new <br /> lease agreement with the Children's Home Society. This item was actually before you and was <br /> 18 U:\CARIS\COUNCIL\MINUTES\MVCC22.MAR 'i� <br />