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solicited from property owners located adjacent to the area regarding the potential vacation of a portion of Greenfield Avenue as shown on the attached site map. Discussion: Grant Application The DEED Redevelopment Grant Program was established by the 1998 Minnesota State Legislature to assist with complex and costly redevelopment projects that might not occur without public financial assistance. Pursuant to Minnesota Statutes 116J.561 - 116J.565, DEED has the authority to award grants to assist development authorities with eligible redevelopment costs. The Premium Stop redevelopment project contains eligible costs to receive these funds. Therefore, staff has prepared the attached grant application for the EDA’s consideration. The attached grant application assumes that the EDA will utilize the funds to purchase 2400 County Road H2. There are two main reasons why staff is recommending this approach: 1. If the EDA gained control of the property, it would better ensure that the City’s redevelopment goals and vision for the area are met. 2. Developer interest in the redevelopment area may increase due to a larger project footprint. The EDA would be required to provide a 50% match to any grant funds received. Since DEED allows the match to be generated by any funds available to the EDA; the EDA may use funds provided by a developer to complete the match requirement. Next Steps If the EDA authorizes the grant application, the next step would be to submit a purchase offer to the landowners of 2400 Country Road H2. The offer would be contingent upon grant funds received and would require the EDA’s expenditure of approximately $25,000 of unobligated pooled Tax Increment funds to be used as earnest money. The EDA would then consider a purchase agreement at a future EDA meeting. Summary It is often the case with redevelopment endeavors, such as the Premium Stop project, that up-front financing is needed to fill the financial “gap” due to acquisition costs, demolition, site clearance, environmental remediation, soil infill, etc. Utilizing subsidies such as TIF or grant funds are not used to unnecessarily profit private developers but rather to facilitate redevelopment that would not otherwise occur but for the assistance. It is staff’s opinion that grant funds are needed to narrow the financial “gap” for the Premium Stop Redevelopment Area project.