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5.b CDA predevelopment finance fundWASHINGTON COUNTY CDA PREDEVELOPMENT FINANCE FUND POLICY AND GUIDELINES I. Purpose: To provide predevelopment grants to cities, townships and local government development authorities located in Washington County. These funds are intended to: 1) increase the inventory of developable properties in the county; 2) provide a competitive advantage by reducing barriers to economic development; 3) spur new job opportunities; and 4) increase the market value of commercial and industrial properties in Washington County. II. Maximum Grant Awards and Matching Requirements: a. There will be two levels of grant funding. The small pool will include a lower level of funding of grants totaling less than $10,000. The large pool will include grant amounts between $10,000 and $40,000. b. Grant amounts may not exceed $40,000 per year, per city, and must be a 1 to 1 (CDA funds to local funds) match for grants of $10,000 or more and 1 to .5 (20% local to every $1 of CDA funds) match for grants of less than $10,000. c. Applicants may use private funds as local match. In-kind contributions shall not be considered a match. III. Eligible Applicants Eligible applicants include cities and townships located in Washington County, and/or their duly created economic development organizations or authorities that are enabled under Minnesota Statutes are eligible to apply. IV. General Program Parameters: a. Applicants must consult with Washington County CDA staff prior to the submission of an application. Required application materials will be provided and shall include: i. A proposed budget ii. Sources and uses spreadsheet identifying the source of the matching funds. The matching funds must be used for eligible activities. iii. A detailed project narrative/description of specific activities or project plan for which the grant funds will be utilized iv. A description of why the property is not likely to develop through the normal private sector process and why CDA funding is needed to spur the development v. A project timeline describing when the development is likely to occur and what type of development is anticipated vi. A description of how the development impacts policies and strategies of the local community comprehensive plan vii. A description of the benefits to the county (describe how the development interacts with the local economy, existing businesses and suppliers and the accessibility to local talent) viii. A description of the level of local commitment to the development of the property b. The Washington County CDA reserves the right to award all or a portion of the funds requested. c. Applications will be accepted on a continual pipeline basis until all available funds have been exhausted. d. The general operating costs of an applicant may not be funded through this grant or be used to fulfil matching requirements. e. The small pool: Grants of less than $10,000 may be awarded by the Washington County CDA Economic Development Director on a first- come, first- serve (pipeline) basis for eligible activities as funds are available. f. The large pool: Grants ranging from $10,000 to $40,000 will be reviewed, considered and approved by the Washington County CDA Board of Directors on a first- come, first- served (pipeline) basis at regularly scheduled CDA monthly meetings as funds remain available. Reimbursements for funds already expended on eligible activities may be approved by the CDA Board. Applications for the large pool must demonstrate the nexus between requesting funding and development, and justify why development is not imminent within a year. Any activities that are eligible for Chapter 429 Assessments that will become part of a reimbursement to the city or township must also be considered for reimbursement to the Washington County CDA. V. Eligible Activities (must provide for future increase in commercial and industrial market values): a. Environmental studies (including wetland studies, EAW, EIS and AUAR studies, geotechnical, soil tests and feasibility studies) b. Legal research/title work c. Site planning and design (including land use studies) d. Appraisals e. Survey work f. Architect reports and archeological studies g. Engineering studies including reports, drawings and water, sewer and storm water feasibility studies (these items may be required to be reimbursed through Chapter 429 assessments) h. Market studies i. TIF, Tax Abatement Analysis (i.e. TIF Plan) or other financial incentives planning j. Transportation or traffic studies VI. Grant Distribution and Close Out: a. All budgeted grant activities must be drawn from the grantee’s program account held by the Washington County CDA Predevelopment Finance Fund. Requests for draws must be fully documented and contracts must be executed and invoices or proof of payment submitted to the CDA prior to release of any funds. b. At the end of the grant period the grantee must provide a final report to document: i. All grant activities have been completed; ii. All funds received must have been expended; and iii. The proposed outcome has been achieved. c. The Washington County Predevelopment Finance Fund reserves the right to terminate the grant agreement if the proposed project is not making adequate progress. VII. Funding Priorities & Scoring/Points System If the application meets all threshold criteria, the application will then be reviewed and ranked in the order in which it was received based on the following competitive criteria. a. Economic Benefit. The project should have a defined impact on the local economy. This impact is measurable through growth and/or projected growth in commercial and industrial property taxes and new and/or retained livable wage jobs (@ or above $19.00 per hour). [25 Maximum Points]b. Leverage of CDA Funds. Local matching contributions in excess of the 1:1 for large pool grant requests and 1 to .5 for small grant pool requests requirement (CDA funds to local funds). [25 Maximum Points] c. Increase the Inventory of Commercial and Industrial Developable Properties. Development or redevelopment of a blighted property, underutilized, large acreage industrial/business park, difficult to develop or contaminated site. [25 Maximum Points] d. The applicant demonstrates that the land development is not imminent, and also demonstrates why the grant funds should be provided by the CDA to meet the General Program Parameters above. [25 Maximum Points] Applications must be submitted on the forms provided by the CDA and will be accepted on a pipeline basis beginning March 1, 2018. CDA staff will work with the Applicant and enter into a Grant Agreement. This agreement will detail the terms and conditions of the grant and allow for the release of funds to the grant recipient. The grant agreement will require funds to be spent no later than December 31, 2019. The Grant Agreement must be fully executed by both parties no later than December 31, 2018. Waivers and extensions to any provision in the agreement requested by the grantee will be considered on a case by case basis depending on the merits of the request. Grants will be paid on a reimbursement basis. Grantees will be required to submit quarterly/semi-annual progress reports to the CDA when requested. REQUIRED RESOLUTION PROVISIONS – CITY WHEREAS, the City of has identified a proposed project within the City that meets the Washington County Community Development Agency (CDA) Predevelopment Finance Fund’s purposes and criteria; and WHEREAS, the City has established a Work Plan or Development/Redevelopment Plan of which the proposed project is a high priority of the city; and WHEREAS, the City has the capability and capacity to ensure the proposed project be completed and administered within the Predevelopment Finance Fund program guidelines; and WHEREAS, the City has the legal authority to apply for financial assistance; and WHEREAS, the City is supportive of enhancing economic development opportunities that will serve to create jobs, enhance the tax base and improve the lives of Washington County residents. NOW THEREFORE BE IT RESOLVED that the City of approves the application for funding from the Washington County CDA Predevelopment Finance Fund. BE IT FURTHER RESOLVED that upon approval of its application by the Washington County CDA, [insert authorized official’s name], the [insert authorized official’s title], is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project.