Agenda Packets - 2000/02/14 - Laserfiche WebLink

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Mounds View City Council March 22, 1999 Regular Meeting Page 30 Economic Development Coordinator Carroll stated these grant funds would be potentially used for environmental improvements in the vicinity of the project site. He advised that there is currently a small holding pond located behind the business known as Music Off-Ten, however, this pond does not take drainage from any area other than some of the parking lots in the Business Park South. He stated all of the surface water drainage coming off of the Mermaid, some of the other businesses nearby, some of the other parking lots, etc. was all running into Rice Creek, along with any contaminants that may be collected along the way. He stated thus far, the Rice Creek Watershed District has not insisted the City take some action to prevent this type of runoff or treat it, however, at some point in time they might in the future. He pointed out that at that time, in the event that the City does not have funds from some other source to deal with this, the City funds would be needed for that purpose. He stated staff sees this proposal as an opportunity to generate funds that could be utilized to everyone’s benefit. Council Member Stigney inquired if the City would be undertaking any type of commitment by requesting the grant. Economic Development Coordinator Carroll advised that if the City finishes first in the application process, with the greatest number of points, and DTED awarded the full amount of the grant, they City could still reject it. He stated that if the project was not been finalized at some point, he believed DTED would be willing to wait for a period of time, however, if it was not completed in time, the City might lose the grant. He explained that DTED would then turn the money over to one of the other applicants. Council Member Marty stated in the resolution authorizing application for the redevelopment grant, the second “BE IT FURTHER RESOLVED” indicates “The Mounds View City Council has the legal authority to apply for financial assistance.” He inquired why the City Council was applying for this grant, and not the Mermaid. Economic Development Coordinator Carroll explained that this grant program is set up in a manner that private entities may not apply for it. He stated this must be done through a governmental agency, and the governmental agency must take responsibility for the administration of the grant funds. He stated there are other types of loan and grant programs available through the State for businesses, however, this program was initially designed to assist cities with certain types of improvements within their own communities. He advised that the underlying premise for this program is that raw land is generally developed quite easily, and there are businesses that would want to build on this land, however, in terms of redevelopment, particularly in cases where the property is blighted in some manner, or there are environmental problems, additional financial incentive is necessary. He stated this program was set up for cities, counties and other governmental agencies. Council Member Marty noted the third “BE IT FURTHER RESOLVED” in the resolution indicates “…the sources and amounts of the local match.” He inquired if this represented that the City would be required to match the grant funds. Economic Development Coordinator Carroll stated this was somewhat correct. He stated one of the requirements of the grant is that the city or governmental entity pay for at least one half of the redevelopment costs, or at minimum, an amount comparable to the amount the State would award. He stated that if in fact, Tax Increment Financing assistance were provided for this project, for example, in an amount in excess of $500,000, this would be the City’s contribution.