Agenda Packets - 2000/02/14 - Laserfiche WebLink

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Mounds View City Council March 22, 1999 Regular Meeting Page 31 He explained that if they sought a grant from DTED in the amount of $400,000, as long as the City provided at least $400,000 of Tax Increment Financing assistance, this would be considered the local match. He advised that the City would not be required to contribute any money, over and above the amount of Tax Increment Financing assistance that was provided. Council Member Marty inquired if the City would automatically be obligated to match the funds, if this grant is approved. Economic Development Coordinator Carroll stated the City would be obligated to match the funds, if they would like to receive the funds. He explained that if DTED grants the City $400,000, and the Mermaid Project progresses, and the City Council decides not to provide any financial assistance of any kind, there would be no funds to match the DTED grant, and the City would lose the grant. Council Member Marty inquired if the City would not be obligated in this case. Economic Development Coordinator Carroll stated this was correct. Council Member Thomason inquired what amount was being proposed for application. Economic Development Coordinator Carroll stated he would research the original calculations. He advised that staff was considering both the land acquisition costs, and the cost of constructing a holding pond, and routing surface water runoff into the pond. He indicated this was the formula utilized to determine the original amount. He pointed out that the City could potentially acquire property, and then would be required to own that property in perpetuity, in order for the pond to be located upon it. He stated one of the requirements of the DTED grant is that you could not utilize the grant funds to acquire property that would ultimately go to a private company or a private individual. He stated the City could do this, however, if the did so, they would have to refund a portion of the grant equivalent to the market value of the property. He indicated staff was considering a grant amount in the range of $350,000 to $400,000, which would make the application slightly more competitive, and would not appear to be overreaching. Economic Development Coordinator Carroll pointed out that of the two million dollars that is available in this grant cycle, only 1.5 million is available for Metropolitan area communities. He advised that by law, 25 percent of the funds is required to go to communities in the greater Minnesota area, therefore, the total amount of available DTED funds was 1.5 million, and if the City requested a third of that amount, it might undermine the chances of receiving it. Council Member Marty inquired if the City would basically be utilizing this grant to purchase property upon which to place the holding pond, and the City would own that pond. Economic Development Coordinator stated this was correct. He stated the City would own the property on which the pond is located, as well. He pointed out that the City might wish to own the property for purposes of maintenance and maintaining control over the pond, as they would likely not desire to delegate that responsibility to a private property owner. Council Member Marty commented that the City might be liable to undertake this project, regardless of the grant funds.