Title
Accepting grant funds, authorizing execution of a grant agreement (with indemnity obligations and other documents related thereto), and amending the operating budget with respect to the City's sponsorship of a Metropolitan Council Livable Communities Act Pre-Development Grant Program for the benefit of a project at 576 Lexington Parkway N. (The Lexington Deluxe) (Dist. 7, Ward 1).
Body
WHEREAS, in RES 25-904, the Saint Paul City Council resolved that the City of Saint Paul (the “City”) may act as the legal sponsor in connection with a Pre-Development Grant application for the benefit of The Lexington Deluxe project proposed by ARRA Properties, LLC (or its affiliated entity) and, thereby, authorized an application to the Metropolitan Council related to Pre-Development Planning activities related to such redevelopment project located at 576 Lexington Parkway N. (“Application”); and
WHEREAS, the Metropolitan Council accepted the Application and awarded the City a $300,000 Pre-Development grant for the benefit of The Lexington Deluxe site (the “Grant Funds”); and
WHEREAS, the Metropolitan Council Livable Communities Act Pre-Development Grant contract (the “Grant Agreement”) requires the City to indemnify Metropolitan Council; and
WHEREAS, by this Resolution, the Council authorizes acceptance of the LCDA Pre-Development Grant, amends the 2025 budget, authorizes execution of a grant agreement with the Metropolitan Council, and authorizes execution of a subgrant (or loan) agreement with the project developer; and
WHEREAS, the Mayor, pursuant to Section 10.07.1 of the Saint Paul City Charter, does certify that there are available for appropriation funds of $300,000 in excess of those estimated in the operating budget; now, therefore, be it
RESOLVED by the City Council of the City of Saint Paul:
1. that upon the recommendation of the Mayor that $300,000 is available for appropriation in the Operating Budget, the City Council hereby authorizes and approves said budget, as heretofore adopted by the City Council, to be amended as outlined in the attached financial analysis.
2. that the City Council hereby authorizes and approves entering into the Grant Agreement with the Metropolitan Council, which includes an indemnification clause, to accept and implement the Grant Funds consistent with the Application and applicable compliance requirements.
3. that the City Council hereby authorizes and approves the City entering into a subgrant agreement(s) or loan documents with the developer of The Lexington Deluxe, ARRA Properties, LLC (or another entity owned and controlled by it that has an interest in the subject property), for the disbursement of the Grant Funds consistent with the Application, the Grant Agreement, and applicable compliance requirements.
4. that the City Council hereby authorizes and approves City staff to take all actions necessary to carry out the activities authorized by this Resolution, including finalizing all documents and agreements necessary to effectuate the activities to be undertaken by this Resolution, subject to approval by the City Attorney’s Office.
5. that the proper City officials are hereby authorized and approved to execute any and all documents in connection with this Resolution, subject to approval by the City Attorney’s Office.
6. that this Resolution does not constitute a binding legal agreement; rather, the action taken herein shall not be effective until said documents are executed by the appropriate official(s) of the City.
Financial Analysis
See Attachment