ITEM 3.9 DEEDd
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OtkgoF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/ Finance Director
Flaherty
February 12, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent Agenda
Infrastructure Application to Minnesota Department of Employment and Economic Development (DEED).
3.9
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve the corresponding resolution supporting a
Business Development Infrastructure Application to Minnesota Department of Employment and Economic
Development (DEED).
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
On January 8, 2018, the City Council approved a resolution supporting a Business Development
Infrastructure Application to Minnesota Department of Employment and Economic Development (DEED).
City staff submitted the initial application to DEED on January 10, 2018. DEED staff reviewed the initial
application and provided feedback to the City on January 22, 2018. City staff has subsequently been
working on revisions to the application.
If awarded, the grant would require the City to commit financial resources to meet the matching
requirement. The current engineers estimate for the project is $1,782,548. The City's current application is
seeking $704,723 in assistance from DEED. The remaining amount, $1,077,825, equates to 60% of
estimated project costs, and exceeds the 50% matching requirement from DEED.
The City has financial resources available in a capital projects reserve fund that could be committed
towards the local match. During previous discussions, the Council has indicated their support in issuing
bonds to finance this project. The bond proceeds would be used to reimburse the matching funds from the
capital projects reserve fund.
The attached resolution is required as part of the revised application, which is expected to be fully
complete and submitted to DEED in the next week.
SUPPORTING DOCUMENTS ATTACHED:
• Estimated Sources & Uses
• Resolution 2018-15
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Resolution 2018-15; supporting a Business Development Infrastructure Application to
Minnesota Department of Employment and Economic Development (DEED).
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
Uses
Sources
Project Activity
City
DEED
Grant Eligible
Streets
$ 390,875 $
390,875
Water Utilities
33,882
33,882
Sanitary Sewer Utilties
36,510
36,510
Storm Water Utilities
68,395
68,395
Wetland Mitigation
127,392
127,391
Engineering
47,670
47,670
Sub -Total
Not Eligible
Streets
Storm Water Utilities
Engineering
Grand Total
704,724 704,723
$ 781,750
67,764
73,020
136,790
254,783
95,340
1,409,447
233,807 - 233,807
35,360 - 35,360
103,934 - 103,934
$ 1,077,825 $ 704,723 $ 1,782,548
X:\Grants\DEED\Kadler Avenue\Grant Application Tables Sheetl
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2018-15
KADLER AVENUE
BUSINESS DEVELOPMENT INFRASTRUCTURE APPLICATION
WHEREAS, the City of Otsego act as the legal sponsor for project contained in the Business Development
Infrastructure Application to be submitted on or around February 16, 2018 and that the Mayor and City
Administrator are hereby authorized to apply to the Department of Employment and Economic Development
for funding of this project on behalf of the City of Otsego; and
WHEREAS, the City of Otsego has the legal authority to apply for financial assistance, and the
institutional, managerial, and financial capability to ensure matching funds, adequate construction,
operation, maintenance and replacement of the proposed project for its design life; and
WHEREAS, the City of Otsego has not violated any Federal, State, or local laws pertaining to fraud,
bribery, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice; and
WHEREAS, that upon approval of its application by the state, the City of Otsego may enter into an
agreement with the State of Minnesota for the above -referenced project, and that it will comply with all
applicable laws and regulations as stated in all contract agreements; and
WHEREAS, that the non-BDPI sources of funds identified in the sources and uses outline in the
application in the total amount of $1,077,825 are committed and adequate to fully fund the project
identified in the application; and
WHEREAS, that per MN statute 116J.431 Subd 7, the City of Otsego understands the grant may be
cancelled if the project identified in the Application is not proceeding within 18 months of the execution
of a grant agreement, or if not complete after five years of any grant award; and
WHEREAS, the City of Otsego certifies that it will comply with all applicable laws, regulations, and rules
of the Business Development Infrastructure Application.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MIlVNESOTA:
1. That the Mayor and City Administrator, or their successors in office, are hereby authorized to
execute such agreements, and amendments thereto, as are necessary to implement the project on
behalf of the City of Otsego.
ADOPTED by the Otsego City Council this 12th day of February, 2018.
CITY OF OTSEGO
Jessica Stockamp, Mayor
Adam Flaherty, City Administrator
ATTEST
I certify that the above resolution was adopted by the Otsego City Council on February 12, 2018.
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED:
2