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Item No. 9b Staff Report No. Meeting Date: March 22, 1999 Type of Business: Council Business WK: Work Session;PH:Public Hearing; CA: Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Mayor and City Council From: Kevin Carroll,Economic Development Coordinator Item Title/Subject: Authorization to Submit Application for DTED Redevelopment Grant Date of Report: March 17, 1999 Summary: Last year the Minnesota legislature established and funded a Redevelopment Grant Program to assist with complex and costly redevelopment projects that might not occur without public financial assistance. As you have learned, all indications are that redeveloping the Mermaid site by acquiring nearby parcels to add a hotel and a banquet facility would be both complex and costly. The Developers have consistently indicated that public financial assistance will be required to make the project feasible. City staff is seeking authorization to pursue state grant funds that could be used to help finance a portion of the projected redevelopment costs. Background: On September 28, 1998, the Mounds View City Council passed a Resolution(#5271) authorizing City staff to seek financial assistance for the Mermaid project by submitting an application for funding in the first"cycle" of the Redevelopment Grant Program referred to above. In November of last year, DTED awarded a total of $2 million for six redevelopment projects in the metro area and in Greater Minnesota. The amounts of the grants ranged from$80,000 to $689,000. Our grant application received a score of 62, and was ranked 10th. The 6th-ranked application(the last to receive funding) received a score of 67. The second "cycle"of the Redevelopment Grant Program is about to begin. Another$2 million will be awarded in late April or early May of this year. The application deadline for the second cycle is April 1, 1999. As was the case with the first cycle,the application guidelines require that every application be accompanied by a copy of a resolution authorizing application for the grant(in a format specified by DTED). The attached Resolution has been prepared in accordance with those specifications, and is virtually identical to the Resolution passed by the Mounds View City Council in connection with our initial grant application. A substantial amount of work was required in connection with the first application, but this time around the work would consist of merely updating some of the text and collating new copies of some of the Exhibits that accompanied the original application. Sufficient time remains to complete that work before the application deadline. The final product would be very similar to the original application, so if you'd like to examine a copy of that document,please let me know. I should emphasize that neither adopting the proposed Resolution nor submitting the grant application to DTED automatically obligates the City to do anything in connection with the