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STAFF REPORT j*To: Michael Mornson, City Manager From: Kim Moore-Sykes, Management Assistant / Date: May 17, 1999 Subject: Grants I spoke with both Geraline Barone, Assistant City Manager and Ron Rankin, Director of Community Development for the City of Minnetonka about the pilot project that was funded partly by monies from the Livable Communities Funds (as part of Affordable and Life-cycle Housing Opportunities,ALHOA). This granting mechanism was set up as part of the Livable Communities Act (LCA) as established by Minnesota Statutes Section 473.121 Ms. Barone indicated that the City of Minnetonka qualified for the Livable Communities Demonstration Account funds because at the time the City did not meet the livable communities affordability benchmarks that were established by the Metropolitan Council as part of the Livable Communities Act. She also indicated that it was her understanding that in order to receive the money,the City had to agree to a low to moderate income housing • component as part of this project. Ms. Barone advised that I speak with Mr. Rankin as he was directly involved with the pilot project. I then called Mr. Rankin. He had indicated that he had spoken to Ms.Roadf eldt last Tuesday, May 11`x' about Minnetonka's pilot project. He also reported that he had gotten the impression that Ms. Roadfeldt was a councilmember. Mr.Rankin confirmed that the City of Minnetonka received $770,000 from the Livable Communities Demonstration funds to redevelop a mixed use area at 394 and Co.Rd. 37, but as a requirement of that grant,the City had to also agree to a housing component. The final Plans of the project included 400 affordable housing units, a low-income senior apartment building, six Holman units, mixed income townhomes, a retail area, a park and landscaping. In researching eligibility requirements for LCA Funds, I found and copied a portion of the Affordable and Life-Cycle Housing Goals for 1996,which showed benchmarks for Metro- area cities. As you can see St. Anthony met and continues to maintain benchmarks established in 1996 when LCA was first implemented. Minnetonka, on the other hand, does not come close to meeting its affordability benchmarks or goals. As a result, the City of Minnetonka became eligible for LCA and ALHOA funds. I have also contacted the League of Minnesota Cities and asked them to send me whatever information they have regarding grants that cities can avail themselves of. Lynn Stafford indicated that most granting information is on the InterNet (copies of which are attached). a