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HRA Regular Session 5. 1. Meeting Date: 07/22/2014 By: Chris Anderson, Community Development Information Title: Consider Resolution #HRA 14-07-143 Authorizing Execution of a Declaration of Bond -Financed Property Related to a Community Forest Bonding Grant Awarded in 2012 for Landscape Improvements in North Commons Purpose/Background: In 2012, City Council authorized Staff to apply for a Community Forest Bonding Grant through the MN DNR to purchase and install native trees in North Commons. One of the requirements of utilizing the grant monies was to execute a Declaration of Bond -Financed Property, which essentially requires that the property remain as public land for its useful life (defined as thirty [30] years) as outlined in the Declaration as follows: "...is subject to the encumbrance created and requirements imposed by such statute, and cannot be sold, mortgaged, encumbered or otherwise disposed of without the approval of the Commissioner of Minnesota Management and Budget, which approval must be evidenced by a written statement signed by said commissioner and attached to the deed, mortgage, encumbrance or instrument used to sell or otherwise dispose of the Restricted Property. " Observations/Alternatives: The City Council authorized executing a Declaration of Bond -Financed Property in June of 2012, but it was not immediately submitted for recording due to the pending COR THREE plat and potential sale of lots. When Resolution #12-06-088, along with the executed Declaration of Bond -Financed Property, was eventually submitted to Anoka County for recording (November, 2013), it was rejected because it did not specifically state that the Mayor was authorized to execute the document on behalf of the City. Subsequently, the City Council approved Resolution #14-05-085, which intended to correct that deficiency by rescinding Resolution # 12-06-088 and replacing it with language clearly stating that the Mayor and City Clerk are authorized to executed the Declaration of Bond -Financed Property. The Examiner of Titles has rejected this resolution and updated Declaration of Bond -Financed Property because it did not include a legal description for North Commons (OUTLOT A COR THREE) nor was authorized by the fee title owner, which is the Housing and Redevelopment Authority (HRA). The grant related activities in North Commons have been completed and all other required components of the grant program have been submitted and accepted/approved by the MN DNR. Upon evidence of recording of the Declaration of Bond -Financed Property, the DNR will reimburse the City for the eligible expenses related to the project ($10,498.34). Alternatives/Options Alternative 1: Adopt Resolution #HRA 14-07-143 authorizing the Chairperson and HRA Executive Director to execute the Declaration of Bond -Financed Property. This is the final required component of the Community Forest Bonding Grant awarded in 2012, which provided funding to purchase 101 trees in North Commons, the City's newest park. The City Council has twice authorized executing the Declaration of Bond -Financed Property for this project but both times, the documents were rejected by Anoka County. This is the final step required before the City can be reimbursed for the now completed planting project in North Commons. Staff supports this alternative. Alternative 2: Do not adopt Resolution #HRA 14-07-143. If the resolution is not adopted, the Declaration of Bond -Financed Property cannot be recorded against the property. If that does not occur, the City will not be eligible