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Home My WebLink About[06b] Redevelopment Grant Program • CITY OF ST. JOSEPH www.cityofstjoseph.com DATE: October 19, 2011 MEMO TO: Economic Development Authority Administrator Judy Weyrens FROM: Cynthia Smith - Strack Municipal Development Group Mayor RE: Redevelopment Grant Program Rick Schultz Councilors Background: Steve Frank The Minnesota Department of Employment and Economic Development (DEED) has released a Bob Loso solicitation for the 2012 Redevelopment Grant Program. The Program has $1 million available Renee Symanietz to qualifying projects in greater Minnesota. Dale Wick Unlike years past, the 2012 program is available to assist projects owned by private entities. EDA Carolyn Yaggie- Eligible activities include: Heinen • Infrastructure Improvements Chad Davey • Soil Stabilization Tom Skahen • Demolition (including asbestos abatement) Steve Frank • Ponding or other Environmental Infrastructure Dale Wick • Interior Remediation for Re -use Ineligible activities include: • Appraisal or other application costs • Development Costs • Environmental Remediation • Contingencies • Streetscape This is a competitive application process, scoring criteria include: • Contamination remediation need (15 points) Note this is not an eligible expense but can enhance application. • Qualifies for and uses TIF (25 points) Does the project qualifies as Redevelopment TIF district? Is project using TIF? Is project using TIF to the max. Many of same activities eligible for both Redevelopment Grants and TIF, legislature wanted to make sure Redevelopment didn't replace TIF. • Redevelopment potential (85 points) New jobs, use of existing infrastructure, multi -use development, crime reduction, blight reduction, increase property taxes. • Proximity to public transit (5 points) In metro area only • Multi- jurisdictional projects that take into account affordable housing, transportation and environmental impact (10 points) • Bioscience /green economy (10 points) ACTION: Consideration of program, potential project identification. 1 (0 10/19/2011 ,� g 0 b �, October 2011 • ssyy ' �ENt • Level the playing field by removing or assisting with extra costs of development • Cities on previously used sites • Counties • HRAs • Create jobs, increase taxes • EDAs • Port Authorities 4, 91,2 Atitiotesort-POWat, 1 10/19/2011 s • Previously been developed Acquisition Project/Grant Administration • End use which will create jobs, taxes, or other public benefits Infrastructure Improvements Appraisal or other application costs • Resolution from applicant body and municipality (if different) Soil Stabilization Development Costs Demolition Environmental Remediation • Bond- Financed Projects must have public component Ponding or other Environmental Contingencies Infrastructure Interior Remediation for Re-use Streetscape - Landscaping, benches, planters, etc. • Eligible costs are those incurred after • Up to 50% of eligible redevelopment costs grant award date • Match can be from any available source • Eligible costs incurred up to 12 months prior to application due date can be eligible as match .�. • 2 116 10/19/2011 January 2012: • Grants are competitive $2,000,000 GENERAL FUND!!! • Compete against other applications (no thresholds) Also may have additional Bond Funds 50% to Greater Minnesota 50% to Metro Area Ap ir Atop • Contamination remediation need (15 points) • Qualifies for and uses TIF (25 points) • Total points available = 150 • Redevelopment potential (85 points) • Proximity to public transit (5 points) • Multi - jurisdictional projects that take into account affordable housing, transportation and • Applications must score at least 50 points environmental impact (10 points) to be eligible for funding • Bioscience/green economy (10 points) totroom t 3 1 9 10/19/2011 • Apply when project is ready • Publicly - Owned • Projects must begin by date listed in grant • Public Purpose agreement — generally within 9 months of . award 9 i • Public Project • Grant terms are extremely difficult to — Public infrastructure I a- n extend • Public funds are subject to numerous Grantee must be the owner of the requirements. Please contact your city public property and the infrastructure attorney for assistance with specific or public facility. requirements. • Bond funds are complicated and are not a good fit for every project. am-ma, Arzieseawfs, 4 10/19/2011 • Can use both General Fund and Bond Applications are due on funds for the same project January 3, 2012 — General fund on activities on a private site • / — Bond funds on public infrastructure by 4:00 pm to DEED offices (Electronic copies of application are not accepted) Applications and instructions may be found on • Complete applications thoroughly by due date: the DEED website: - All questions answered www.positivelyminnesota.com - All attachments submitted (appraisals, Resolutions, etc.) — Closed Process FOR LOCAL GOVERNMENT L . Financial Assistance • Only Assessor or Appraiser can determine value L Site Cleanup and Redevelopment Funding • Use Updated Application form RedevelopmentGrant Program Att.44/emeit PfYJrdPIY 5 a j 10/19/2011 • Grants are generally awarded approximately 6 -8 Please review the Program weeks after submittal. Requirements and Criteria • Funds awarded must be spent within grant term t � � ° r R:d YEEY • 1,136 acres redeveloped • First grant awarded in 1998 • 18,884 new Lobs created or jobs retained • Over $56.6 million in 129 Redevelopment grants • 3,903 housing units developed • $22.8 million in tax base increases Producing • $1.4 billion in non -state funds Ieveraaed 6 10/19/2011 *Int r. ,wza j .; , -' ' i Brownfields and ° Redevelopment " staff: Project Managers: ,* _: Meredith Udoibok, Director Terry Dalbec, �� 651-259-7451 651- 259 -7448 r@,,...x:.,ran.. €' Kristin Lukes, Roy Murphy, �= Assistant Director 651- 259 -7452 11 fit 651- 259 -7451 Kristin Prososki, IreneDassier 651 -259 -7453 -,. AdminisVative Support e 1 ' 651-259-7449 jfp For more information on DEED Funding Programs, see DEED on the Web www.positivelvminnesota.com 7 a )