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Mounds View City Council October 24, 2005 Regular Meeting Page 15 the Predesign Stage and pay all of the costs related thereto.” 1 2 Economic Development Coordinator Backman explained the City has an understanding with 3 Ramsey County that they will be the lead entity. The process is usually reversed but in this case 4 the City has received the funds. Ramsey County is the lead agency because of the number of 5 entities involved. 6 7 Councilmember Thomas stated the other stipulation is that the grant agreement had to be 8 between DEED and the City of Mounds View due to restrictions in the legislation. Economic 9 Development Coordinator Backman stated that is correct. 10 11 Mayor Marty referenced Pages 14-15, Article 4, Events of Default and Remedies, Subsection C, 12 indicating: “If the Public Entity fails to comply with any provision, term, condition, covenant or 13 warranty contained in the G.O. Compliance Legislation, or the Commissioner’s Order, as such 14 apply to the Real Property, and if applicable, the Facility.” He then read Section 402, Remedies, 15 Subsections A-C, indicating: “A. The State Entity may refrain from disbursing the Grant; 16 provided, however, the State Entity may make such a disbursement after the occurrence of an 17 Event of Default without thereby waiving its rights and remedies hereunder. B. The 18 Commissioner of Finance, as a third party beneficiary of this Agreement, may demand that the 19 portion of the Grant already disbursed to the Public Entity be returned to it, and upon such 20 demand the Public Entity shall return such portions to the Commissioner of Finance. C. Either 21 the State Entity or the Commissioner of Finance, as a third party beneficiary of this Agreement, 22 may enforce any additional remedies they may have in law or equity.” Mayor Marty stated some 23 of this may be basic language but it sounds quite stern. 24 25 Councilmember Thomas stated this may be standard bonding boilerplate language. 26 27 Attorney Riggs agreed with Councilmember Thomas, noting the footer reference indicating this 28 document is the “Generic GO Grant Agreement for Pre-Design or Design Grants.” 29 30 Economic Development Coordinator Backman stated the City does not intend to own the road. 31 The default would be if the City received monies and did not make the reimbursement to Ramsey 32 County. 33 34 Councilmember Thomas stated this agreement is binding on both sides so the language is also 35 binding to DEED. She explained it will assure the bonds receive a good rate, when sold. 36 37 Attorney Riggs stated that is correct and this documentation will also keep the bonds tax exempt. 38 39 MOTION/SECOND: Gun/Thomas. To waive the reading and adopt Resolution 6664 40 Approving a Grant Agreement of $1,635,500 with the Minnesota Department of Employment 41 and Economic Development (DEED) as part of a Cooperative Agreement with Ramsey County 42 for County Road J Reconstruction and other Public Improvements necessary for the Medtronic 43 Project in Mounds View. 44 45