Agenda - Council - 09/25/2001 - Laserfiche WebLink

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I I I I I I I I ! I I I I I I I I I '1 AUTHORIZATION TO ACCEPT AND EXECUTE METROPOLITAN LIVABLE COMMUNITIES GRANT By: Community Development Director Sylvia Frolik Background: In 1999, when the City and Anoka County Community Action Program (ACCAP) were negotiating an affordable housing project, Metropolitan Council offered a Livable Communities Grant to ACCAP. ACCAP's proposed project met the goals and objectives of Livable Communities and Life Cycle Housing. The grants are awarded to the cities in which the selected projects are located and ACCAP's project in Ramsey is one of the grant recipients. Observations: Upon execution of the enclosed grant, Metropolitan Council will award the funds to the City of Ramsey. Ramsey in turn will make an interest free loan in the amount of $135,000.00 to ACCAP that is to be paid back to the City in one balloon payment in 30 years. At that time the funds can be rolled over into another qualifying project in the community or returned to Metro Council for use on other eligible projects. Additionally, on July 10, 2001, the City Council entered into a litigation settlement agreement with ACCAP for the sale of the property. A copy of the summary of that agreement is enclosed. One of the terms of the settlement agreement obligates the City to go forward with the Livable Communities Grant as part of the funding package for the development. Recommendation: City Staff recommends acceptance of the grant. Council Action: Motion to authorize the Mayor and the City Administrator to enter into a grant agreement with Metropolitan Council for the ACCAP livable communities project. Review Checklist: City Administrator City Attorney CC: 09/25/01