Adopt Resolution #14-05-085 to Rescind Resolution #12-06-088 and Replace with Language Authorizing the Mayor and City Clerk to Execute a Declaration of Bond-Financed Property Related to a Community Forest Bonding Grant Awarded in 2012

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.  Resolution #14-05-085 intends to correct that deficiency by rescinding Resolution #12-06-088 and replacing it with language clearly stating that the Mayor and City Clerk are authorized to executed the Declaration of Bond-Financed Property.

The grant related activities in North Commons have been completed and all other required components of the grant program have been submitted and accepted.  Upon evidence of recording of the Declaration of Bond-Financed Property, the DNR will conduct a compliance inspection of site and then will reimburse the City for the eligible expenses related to the project.

Alternatives/Options

Alternative 1: Adopt Resolution #14-05-085 which clarifies that the Mayor and City Clerk are authorized to execute the Declaration of Bond-Financed Property.  This is one of the final required components of the grant awarded in 2012.  In 2012, the City Council adopted Resolution #12-06-088, which, in part, was to authorize the execution of the Declaration, but it did not specifically identify who was authorized to do so.  This resolution simply clarifies specifically who is authorized to execute this Declaration of Bond-Financed Property so that it can be submitted for recording against the property.  This is one of the final steps required before the City can be reimbursed for the now completed planting project in North Commons.  Staff supports this alternative.

Alternative 2: Do not adopt Resolution #14-05-085.  If the Resolution is not adopted, the Declaration of Bond-Financed Property cannot be recorded against the property.  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).  Thus, Staff does not support this action.

Staff recommends adopting Resolution #14-05-085.

Motion to adopt Resolution #14-05-085 rescinding Resolution #12-06-088 and replacing with language clarifying whom is authorized to execute the Declaration of Bond-Financed Property related to Community Forest Bonding Grant monies used to plant native trees in North Commons.