Adopt Resolution #19-131 Acknowledging Receptivity to Livable Communities Funding for Greenway Terrace 2nd Addition; Case of Aeon

The purpose of this case is to indicate the City's receptivity to Aeon obtaining grant funding from the Metropolitan Council for their second phase of the Greenway Terrace project in The COR along Center Street. Aeon successful completed the first phase of this multifamily project in 2018. This project is fully occupied. The Developer is now attempting to secure funding for their second phase. The Developer has an active Purchase Agreement with the City. The two phases would work in tandem. 

The Developer is seeking grant funding through the Minnesota Housing Finance Agency and Metropolitan Council. At this time, there is not a request for financial assistance from the City. Specific to the Metropolitan Council Livable Communities Grant, the grant itself is awarded to the City, not the Developer. The City passes the grant to the Developer. 

Notification is not required. 

When approving the first phase of this project, a second phase was always contemplated. Unfortunately, the second phases initial funding request was not approved. The Developer is making another request for funding to the Minnesota Housing Finance Agency as a primary funding source. As part of the funding package, the Developer is requesting a grant from the Metropolitan Council, requiring City support. 

Alternatives

Support the grant application. This does not obligate the City to accept the grant, which will come forward at a later date if awarded. There are no City dollars required at this time. This would allow the project to move forward. 

Do not support the grant application. The project will likely not move forward without this grant as part of the funding package, unless a comparable amount came from a different funding source. 

Do not support the grant application, but agree to provide this funding through City sources ($100,000). Staff would prefer utilizing available grant sources in lieu of City dollars, if the Council wishes to advance this project. 

This case is being handled as part of normal Staff duties. The site is currently owned by the City, and will be sold to the Developer. There is not a request for financial assistance from the City at this point. 

Staff recommends authorization to submit receptivity to the Metropolitan Livable Communities Grant on behalf of Aeon for Greenway Terrace 2nd Addition. Although indirectly related and not specifically requested for recommendation on the grant itself, the EDA did recommend approval of the Purchase Agreement related to this project. Additionally, the Planning Commission previously recommended approval of the overall concept plan for both phases of Greenway Terrace. 

Motion to adopt Resolution #19-131 acknowledging receptivity to Livable Communities Grant.