Agenda - Council - 02/24/2004 - Laserfiche WebLink

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2.02 Author~ed Use of Grant Funds. The Grant Amount made available to the Grantee under this Agreement: shall be used only for .the purposes and activities described in the Grantee's application for Predevelopment Grant Program funds. A summary of the project described in the Grantee's appliCation is attached to and incorporated into this Agreement as Attachment A. Ineligible usesI include: activities prior to award of grant; construction costs; master and comprehensive i. planning activities and related design workshops or other public involvement techniques, whi~gh should be complete or nearly complete; local permits, licenses or other fees such as park dedication; and operating expenses, salary costs and developers fees. Funded elements must directly contribute to implementation of an eligible reinvestment project. If consistent with the Grantee's apPliCation, the Grantee may use the grant funds for soft costs and professional services such as legal, t~tle, financial analysis; architectural and engineering design; project management; modeling and ~mapping; tax credit fees; marketing and advertising; survey fees; inspections, appraisals, and environmental testing; and costs associated with securing other funding sources and preparing other;grant proposals, except grant proposals for Metropolitan Council. programs..The Council shall bear no responsibility for cost overruns that may be incurred by the Grantee or others in the implemel~tation or performance of the project activities described in Attachment A. The Grantee agrees to remit to the Council in a prompt manner any unspent grant funds; any grant funds which are not used for the authorized purposes specified in this paragraph; or not used for the purposes of implementing the project activities described in Attachment A. The Grantee must complete all major components of the grant project as proposed and for which the Council made its grant award, or the Grantee must return to the Council the entire Grant Amount. The Grantee agrees to comply withi:any "business subsidy" requirements of Minnesota Statutes sections t16J.993 to 116J.995 that apply to the Grantee's expenditures or uses of the grant funds. 2.03 Disbursetnent Schedule. The Council will disburse grant funds in response to written disbursement re!rluests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the project activity funded by this Agreement, the contractor(s)/vehdor(s) to be paid, and the time period within which the project activity was or will be performed Disbursements prior to the performance of a project activity will be subject to terms and conditions mutually agreed to by the Council and the Grantee. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. Subject to Verification of a written disbursement request and approval for consistency with this Agreement, the ~2ou/~cil will disburse a requested amount to the Grantee within twenty (20) business .._ days after receipt of a written disbursement request. 2.04 Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the project site nor imposes any obligation on the Council to participate in any pollution cleanup of the project site if such cleanup is undertaken or required. 2.05 Resale Limitations. If appropriate for the project, the Grantee must impose resale limitations regarding the diiposition of any equity realized by the purchasers of "affordable" units if grant funds received from tlie Council under this AgreemEnt are used for gap financing in the project described in Attachment ~. The intent of this resale limitation is to protect the public and foundation investment in the project and ensure that a proportion of the affordability gap provided by the public and foundation investment in the form of grant funds is recaptured and does 'not become a windfall for any purchaser who might sell the home within a predetermined and agreed upon time period of ownership. An equitable proportion of the affordability gap filled by grant funds received from the Predevelopmeni~ Grant Program Page 2 of 8 Pages