Adopt Resolution #14-06-108 Authorizing the Mayor and City Administrator to Execute a Contract Amendment for an Extension to the Community Forest Bonding Grant that was Utilized to Landscape North Commons

In 2012, City Council authorized Staff to apply for a Community Forest Bonding Grant through the MN DNR to purchase and install native trees in North Commons. One of the requirements of utilizing the grant monies was to execute a Declaration of Bond-Financed Property, which essentially requires that the property remain as public land for its useful life (defined as thirty [30] years) as outlined in the Declaration as follows: "...is subject to the encumbrance created and requirements imposed by such statute, and cannot be sold, mortgaged, encumbered or otherwise disposed of without the approval of the Commissioner of Minnesota Management and Budget, which approval must be evidenced by a written statement signed by said commissioner and attached to the deed, mortgage, encumbrance or instrument used to sell or otherwise dispose of the Restricted Property."

The Declaration of Bond-Financed Property was executed in August of 2012, but was not immediately submitted for recording due to the pending COR THREE plat and potential sale of lots. When Resolution #12-06-088, along with the executed Declaration of Bond-Financed Property, was eventually submitted to Anoka County for recording, it was rejected because it did not specifically state that the Mayor was authorized to execute the document on behalf of the City.

On May 13, 2014, the City Council adopted Resolution #14-05-085, which corrected all deficiencies identified by Anoka County's Division of Property Records and Taxation when the documents were initially submitted for recording.  Staff submitted this updated resolution and the Declaration to Anoka County on June 3, 2014 for recording and is awaiting word of whether it was successfully recorded.  Anoka County staff did indicate that this may also require an adopted resolution of the Ramsey Housing and Redevelopment Authority (HRA), which is the owner of Outlot A COR Three, commonly referred to as North Commons.

The deadline for project completion is June 30, 2014, including submittal of all required components (which includes evidence of the recorded declaration) and a compliance inspection by the DNR.  All site improvements have been completed and all that remains is successful recording of the declaration and a compliance check by the DNR.  Staff has contacted the DNR about an extension to ensure that all required components can be completed and submitted and do not jeopardized the reimbursement funds for the completed landscape work.  An extension to December 1, 2014 is permissible, but requires an executed Contract Amendment, signed by both the City Administrator and the Mayor.

Alternative 1: Adopt Resolution #14-06-108 authorizing the Mayor and City Administrator to execute a Contract Amendment for an extension until December 1, 2014 to complete the required components of the Community Forest Bonding Grant.   This will ensure that the required components can be completed and would not jeopardize receiving the reimbursement funds for the completed landscaping work. If Staff receives direction from the Examiner of Titles that a resolution executed by the HRA is needed, Staff will add that item to a future HRA meeting.  Staff supports this alternative.

Alternative 2: Do not adopt Resolution #14-06-108. If the Resolution is not adopted, evidence of completion of all required components of the grant likely would not be completed by June 30, 2014 (grant deadline).  If that does not occur, the City will not be eligible for reimbursement for expenditures related to the purchase and installation of native trees in North Commons (final reimbursement request totals $10,498.34). Staff does not support this action.

 

Staff recommends adopting Resolution #14-06-108.

Motion to adopt Resolution #14-06-108 authorizing the Mayor and City Administrator to execute a Contract Amendment for an extension till December 1, 2014 to complete all required components related to the Community Forest Bonding Grant that was utilized to landscape North Commons.