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9.d) Staff Report-Broadband GrantSCANDIA Staff RepoVt Date of Meeting: October 21, 2014 To: City Council From: Kristina Handt, City Administrator Re: Broadband Grant Resolution of Support Background: On May 20, 2014, Governor Mark Dayton signed into law the new Border -to -Border Broadband Development Grant Program. This $20 million grant program will be used to fund the build out of infrastructure to promote the expansion of broadband service to areas of the state that are unserved or underserved. The Department of Employment and Economic Development (DEED) opened the application process in September. Applications are due October 28, 2014. Eligible applicants include incorporated businesses and partnerships, political subdivisions, Indian tribes, Minnesota nonprofits organized under Minnesota Statutes Chapter 317A, cooperative associations organized under Chapter 308A or 308B, and limited liability corporations organized under Chapter 322B for the purpose of expanding broadband access. While priority will be given to areas that are unserved, priority may also be given to projects covering underserved locations (those areas that do not have access to a wireline broadband service at Minnesota's speed goals of at least 10 Mbps download and 5 Mbps upload); offer new or substantially upgraded service to community anchor institutions like schools, libraries, hospitals, and public safety facilities; facilitate the use of telemedicine and electronic health records; serve economically distressed areas of the state; provide technical support and train users in the community served by the project; include a component to actively promote broadband adoption; provide strong evidence of community support; and leverage greater amounts of funding from other public and private sources. The grant is capped at $5 million per project. Applicants must document at least a 50% match, with additional points awarded for matching funds above 50%. Issue: Should the City pass a Resolution Supporting Midcontinent's application to the border to border broadband grant program? Proposal Details: Midcontinent is preparing an application to include projects in Scandia, Forest Lake, and Columbus. They have asked each city council to pass a resolution of support. A copy of the resolution is in your packet. The project areas they are including for Scandia are included in your packet as maps but generally include the areas of Wyldewood Acres, Natures Walk, Pomroy to 220th to Parrish. Also included in your packet is a letter of support from the Eric Tryon, President of the Wyldewood Acres HOA. This letter has been forwarded to Midcontinent to be included in their grant application. Fiscal Impact: The cost for the Natures Walk and Pomroy loop is approximately $223,779. Cost estimates for Wyldewood Acres have not yet been shared with the City. Midcontinent is working on securing a $265 million letter of credit which should more than cover their costs of the projects. Options: 1) Approve Resolution 10-21-14-04 2) Amend and then Approve Resolution 10-21-14-04 3) Do not approve Resolution 10-21-14-04 Recommendation: Option 1