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97-475Council File # � � � � Green Sheet # 3�� ('} f°" j r�` ;,_ r�s i : 1�� - � y° . �'�:i�:;.,' � i G Presented By Referred To Committee _ Date WI�EREAS, the City of 5aint Paul has applied for and received a$650,000 grant from the Livable Communiries Demonstration Account of the Metropolitan Livabie Communities Fund for the Phalen Village redevelopment project including reuse of part of the Phalen Center site for restoration of the Ames Lake wetland, creating a public framework fot the Phalen Viilage redevelopment, and a grocery storelcommercial redevelopment project to meet neighborhood shopping and service needs; and 8 WHEREAS, the project is a linchpin for nnplementation of the Phalen Village Plan, which was developed by 9 a neighborhood-based task force and adopted by the City Council in 1995 as part of the Saint Paul 10 Comprehensive Plan; 11 12 BB IT RESOLVED, that proper City officials be authorized to execute and approve, on behalf of the City of 13 Saint Paul, Metropolitan Council Livable Communities Demonstration Account Grant Agreement No. SG- 14 96-59, a copy of said agreement being attached hereto and incorporated herein by reference. Requested by Department of: ■1 Adoption Certi£ied by Council Secretary By: :� Appxoved by yo�� e l l� By: RESOLUTION CITY OF SAINT PAUL, MtNNESOTA a� Approved by AYaypr £or Submi �sion to Councl r By :�`�.__.__.. � �� S � A11an Torstenson ST BE ON COUNCIL AGEN�A BY (DATE) ASAP ��;,�� T J� .\ FOB IGREEN DEPARiMENT DIRE D ' — cmarronNer BUDGET DIRECTOR MAY�R (OR ASSISTANn TOTAL # OF SIGNATUBE PAGES 3 ,(CLIP ALL LOCATIONS POR SIGNATURt7 GRYCAUNqL cm c�aK PIN. & MGi SE wmnwnTe ""°°"'"""" Approval of attached resolution autnorizing proper City o£ficials to e�cecute and appxove Metropolitan Council Livable Communities Demonstration Account GranL Agreement Ito. SG-96-59. Esecution and approval of Metropolitan Council Livable Communities Demonstration Account Grant Agreement No_ SG-96-59 to enable the City to receive a Livable Communities Gr Releet (R) _ PfANNING COMMISSION — CIB COMMfT7EE �_ S7AFF _ DISTFiICTCAURT __ CIVIISERVICEGOMMISSION . SUPPORTS WN1CH COUNGLO&IECTfVE? PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWI�IG QUESTIQNS: t. Has this person/tirm ever worketl under a contract for this tlepartmerlt? F YES NO `". 2. Has this perso�rm ever baen a city employae� �� YES NO 3. Does this persoMirm possess a skill noi normaliy possessed by any?current ciry employee? YES NO Explafn el! yes nnswers on seperafe sheet end attech to green sheet The City has b2en awarded a$650,000 Metropolitan Council Livable Communities Grant for a linchpin project to i.mplement the Phalen Villaqe P1an (developed by a neighborhood task force �nd adopted by the City Council) to use part of the largely vacant Phalen Center site (now a blighting in£luence on the surrounding area) for restoration of the Ames Lake wetland and ROW for a reaiignment of Prosperity Ave., creating a public framework for the Phalen Village redevelopment, and a grocery store/commercial redevelopment project to meet neighborhood shop�ing and service needs. The City would be able to move ahead with a�roject to remove blight and improve property values in the Phalen Village area; to create a neighborhood siqnature open space amenicy; to realign Prosperity Ave. to solve traffic circulation and safety issues, and create a framework £or the Phalen Village commercial area redevelopment; and to restructure the commercial area to better meet the neighborhood market niche and add value to the area, with a grocery storeJcommercial redevelopment project to meet neighborhood needs. �� None i/S#$l�.� @";=�"^':�;'�rin3•. S??9'�E:r7 �ae �'1 4�J�'� IG NOTAPPROVED' R � '-� , �.>� ...�..�...°...�:.,.... �.rl.'}." APR 15 1gg7 �?�YC7P'S <��FfCE The obsolete larqely vacant Phalen Center will continue to be a blighting influence on the area. The e�tisting supermarket in Phalen Center will probably close, meaning loss of a full-service supermarket to 1ow-income residents of the area who don't have good access_to other supermarkets. This opportunity to acquire ROW for realignment o£ Prosperity Ave. at a reasonable cost, and to use it as a catalyst and focus for commerical redevelopment, woul be lost. TOTAL AMOUNT OF TRANSAC710N $ 650 000 COST/REVENUE BUDGE7ED (CIRCLE ONE) FUNUIfdGSOURCE �etYOpolltdri LI.Vd}Jle COIlllttllriltl2S FUn�TIV1TYNUMBER YES NO FINANGIAL INFORMFTION� (EXPtA1N) -. r C ' /JG i� ` �� GrantNo. SG-96-59 METR(?POLITAN LIVABLE COMMI3NT'TIES ACT LIVABLE COMMUNITIES DEMONSTRATTON ACCOUNT GRANT AGREEMENT THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Councii") and the City oF Saint Paut ("Grantee"). WHEREAS, IvTinnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livabte Gommunities Act and the policies of the Metropolitan Development Guide adopted by the Council; and WHEREAS, Ivlinnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan Livable Communities Fund a Livable Communities Demonstration Account and require the Council to use the funds in the account to make grants or loans to municipalities participating in the Local Housing Incentives Program under Minnesota Statutes section 473.254 or to metropolitan-area counties to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (b}, in participating municipalities; and WHEREAS, the Grantee is a"municipality" participating in the Locai Housing Incentives Account program under Minnesota Statutes section 473.254 or a metropolitan-area county and submitted a pilot project application for Livable Communities Demonstration Account funds in response to the Council's request for pilot project applications; and WHEREAS, at its March 14, 1996 regular meeting, the Councii awarded Livable Communities Demonstration Account grant funds to four pilot projects, including the pi3ot project described in the Crrantee's pilot project application for Livable Communities Demonstration Account funds. NOW THEREFOItE, in consideration of the mutual promises and covenants contained in this agreement, the Grantee and the Council agree as foltows: I. DERINITIONS 1.01 Definition of Terms. For the purposes of this agreement, the terms defined in this pazagraph have the meanings given them in this paragraph unless otherwise provided or indicated by the context. (a) 'ibletropolitan Area" means the seven-county metropolitan azea as defined by Minnesota Statutes section 473.121, subdivision 2. (b) "Municipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254, or a county in the Metropolitan Area. Page 1 of 5 Pages t�' 9�-w�ts (c) "Participafing Municipality" means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account progam and negotiated affordable and life-cycte housing goals for the Municipality pursuant to Minnesota Statutes section 473.254. II. GRANT k'I7NA5 2.01 Total Grant Amount �'he Council will gram to the Gramee a total sum of $650,000.00 which shall be funds from the Livable Communities Demonstration Account of the Ivietropolitan Livable Communities Fund. Notwithstanding any other provision of this agreement, the Grantee understands and agrees that any reduction or ternunation of Livable Communities Damonstration Account grant funds made available to the Council may result in a like reduction to the Grantee. 2.02 Authorized Use of Grant Funds. The total grant amount made available to the Grantee under this agreement shall be used only for the purposes and activities described in the Grantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised by the Grantee to reflect the grant awud made by the Council. A copy of the Grantee's revised application which identifies eligible uses of the grant funds is attached to and incorporated into this agreement as Attachment A. If the provisions of the Grantee's application are inconsistent with ather grovisions of this agreement, the other provisions of this agreement shalt take precedence over the provisions of the application. Grant funds must be used to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (b), in a PartScipating Municipality. Grant funds must be used for costs directly associated with the specific proposed activifses and are intended to be used for "hard costs" rather than "soft costs" such as: administrative overhead; activities prior to the start of the grant project; uavel expenses; legal fees; pernuts, licenses or authorizatian fees; costs associated with preparing other grant proposals; operating expenses; planning costs, inciuding comprehensive planning costs; and prorated lease and salary costs. The Council shall beaz no responsibility for cost overruns which may be incutred by the Crantee or others in the implementation or performance o£ the pro}ect activities described in Attachment A. The Grantee agrees to remit to the Council in a prompt manner, any unspent grant funds and any grant funds which are not used for the authorized purposes specified in this paragraph. 2.03 Budget Variance. A variance of ten percent (10%) in the amounts a(located to various eligible uses idemified in Attachment A shall be considered acceptable without further documentation or Council approval. Budget variances exceeding ten percent (10%) may require approval of the governing body of the Metropolitan Council. Notwithstanding the aggregate or net effect of any variances, the CounciPs obligation to provide grant funds under this agreement shall not exceed the ma�cimum grant amount specified in paragraph 2.01 of this agreement. 2.d4 Disbursement Schedule. The Council will disburse the grant funds to the Grantee in accordance with the grant fund disbursement schedule contained in Attachment B, which is incoiporated into and made a part of this agreement. The Council will make disbursements only upon receipt of a written disbursement request from the Grantee's authorized agent or representative. 2.d5 Interest Earnings. If the Grantee earns any interest or other income from the grant funds received from the Council under this agreement, the Grantee will use the interest eamings or income only for the purposes of implementing the project activities described in Attachment A. Page 2 of S Pages �t �'1-�1'1S 2.Q6 Effect of Grant� Issuance of this grant neithet implies any Council responsibility for contaminatioq if any, at the project site nor imposes any obiigation on the Council to participate in any pollution cleanup of the project site if such cleanup is undertaken or required. IIL ACCOTTNTING, AUDTT AND REPO�RT REQiJIREMENTS 3.01 AccounYsng and Records. The Grantee agtees to establish and maintain accurate and complete accounts and recorda relating to the receipt and expenditure of all grant funds received from the Council. Notwithstanding the �piration and termination provisions of paragraphs 4.01 and 4.02, such accounts and records shall be kept and maintained by the Grantee for a period of tiuee (3) years following the completion of the project activities described in Attachment A or three (3) years following the eacpenditure of the grant funds, whichever occurs earlier. For all exgenditures of grant funds received pursuant to this agreement, the Grantee wili keep proper financial records including invoices, contracts, receipts, vouchers and other appropriate documents sufficient to evidence in proper detail the nature and propriety of the expenditure. Accounting methods shall be in accordance with generally accepted accounting principles. 3.02 Audits. The above accounts and records of the Grantee shall be audited in the same manner as ali other accounts and records of the Grantee are audited and may be audited or inspected on the Grantee's premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Crrantee, for a period of three (3) years following the completion of the project actavities described in Attachment A or three (3) years following the expenditure of the grant funds, whichever occurs earlier. 3.03 Report Requirements. The Grantee will provide to the Counci3 one or more written reports which report on the status of the project activities described in Attachment A and the expenditures of the grant funds. The reporting schedule and the content of the written report(s) are identified in Attachment C, which is incorporated into and made a part of this agreement. 3.04 Environmental Site Assessmen� The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be camed out, if such environmental assessment or review is appropriate for the scope and nature of the project activities funded hy this grant, and that any environmentai issues have been or wiii be adequately addressed. IV. AGREEMENT TERM 4A1 Term. This agreement is effective upon execution of the agreement by the Councii. IInless terminated pursuant to paragraph 4.02, this agreement will expire upon compietion of the project activities described in Attachment A or following the expenditure of all grant funds by the Crrantee, whichever occurs earlier. 4.02 Termination. This agreement may be temunated by the Council for cause at any time upon fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of this agreement and any amendments of this agreement. If this agreement is ternunated, the Crrantee shall receive payment on a pro rata basis for project activities described in Attachment A that have been compieted. Temunation of this agreement does not alter the Council's authority to recover grant funds on the basis of a later audit or other review, and does not alter the Crrantee's obIigation to return any grant funds due to the Council as a result of later audits or corrections. If the Council Page 3 of .i Pages „ q1-y'is deternunes the Crrantee has £ailed to compiy with the terms and conditions of this agreement and the applicable provisions of the Metropolitan Livable Communities Act, the Council may take any action to protect the Council's interests and may refuse to disburse addirional grant funds and may require the Crrantee to retum all or part of the grant funds already disbursed. 4.03 Amendments. The Council and the Grantee may amend this agreement by mutual agteement. Amendments, changes ar modifications of this agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. V. GENERAL PROVISIONS 5.01 Equai Opportunity. The Grantee agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, znarital staxus, status with regard to public assistance, membership or acfsvity in a local civil rights commission, disability, se�mal orientation or age and take affirmative action to insure appiicants and employees are treated equaily w'rth respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.02 Con�lict of Interest. The members, officers and employees of the Grantee shall comply with ail applicable state statutary and regulatory conflict of interest laws and provisions. 5.03 LiabiIity. To the fuliest extent pernutted by law, the Grantee shali defend, indemnify and hold harmless the Council and its members, empioyees and agents from and against all claims, damages, losses and expenses, including hut not limited to attorneys' fees, arising out of or resulting from the conduct or impiementation of the project activities funded by this grant. Claims included in this indemnification inciude, without limitation, any claims asserted pursuant to the Minnesota Environmentat Response and Liability Act (2vIERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensataon, and Liability Act of 1980 (CERCLA) as amended, 42 U.S.C. sections 9601 et seq., and tke federal Resource Conseroation and Recovery Act of 1916 (RCRA) as amended, 42 U.S.C. sections 6901 et seq. This obligation shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which othenvise would e�st between the Council and the Grantee. The provisions of this paragraph shail survive the termination ofthis agreement. This indemnification shail not be construed as a waiver on the part of either the Crrantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 4b6, or other applicable state or federal law. 5.04 Acknowledgments. The Grantee shall acknowiedge the financial assistance provided by the Council and the State of Minnesota in promotiona3 materials, press releases, reports and publications relating to the project activities described in Attachment A which are funded in whole or in part with the grant funds. The acknowledgment shouid contain the foilowing, or similar, language: This project was�nanced in part wilh a grant from the Metropolitan Council through ihe Livable Communities Demonstration Account of the Metropolita�a Livable Communities Fund. 5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state or federal licenses, pemuts, bonds, authorizations or approvals necessary to perfonn or complete the ptoject activities described in Attachment A. Page 4 of 5 Pages t� Q'�-y'15 5.06 Contractors and Subcontractors. The Grantee shall include in any cantract or subcontract for pro}ect activities appropriate contract provisions to ensure contractor and subcontractor compliance with all applicable state and federal laws. Along with such provisions, the Gtantee shall require that contractors and subcontractors performing work covered by this grant comply with all applicable state and fedual Occupational Safety and FIealth Act regulations. 5.07 Attachments. The foilowing aze attached to this agreement and are incorporated into and made a part of this agreement: , (a) Attachment A- Crrantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised to reflect the Council's grant award (b) Attachment B- Grant Fund Disbursement Schedule (c) Attac}unent C- Written Report Submission Schedule 5.08 Warranty of Legal Capacity. The individual signing this agreement on behalf of the Grantee represents and warrants on the Grantee's behalf that the individual is duly authorized to execute this agreement on the Grantee's behalf and that this agreement constitutes the Crrantee's valid, binding and enforceable agreements. IN WITNESS WHEREOF, the Crrantee and the Council have caused this agreement to be executed by their duly authorized representatives. This agreement is effective on the date of final execution by the Council. Approved as to form: Assistant General Counsel MEIROPOLTTAN COUNCIL �: 3ames J. Solem, Regional Administrator Date CITY OF SAINT PAIIL � Date : Date LCADEM03 Norm Coleman, Mayor Martha Larson, Director of Finance and Management Services MC i)/95 Page 5 of � Pages � q'1- ��s ATTACffi1�NT A I:)777�77.�iy [�.iaLiS i!f�'1�:17t�J ACCOUNT GRANT F`UNDS This attachment comprises pages A-1 through A-15 and incorporate the Grantee's pilot project application for Livable Communities Demonstration Account gant funds which was submitted in response to the Council's request for Livable Communities Demonstra6on Account pilot project applications, sub}ect to the following revisions which reflect the actual grant amount awazded to the Crrantee: The "LCDA" portion of the "Total Project Cost" identified at page A-13 is $650,000 rather than $800,OQ0. Page A 14 is revised to reflect the following "LCDA Funds" amounts for the following project activities: Shopping center redevelopmenU wetland restoration - Acquisition - Demolition/Site prepazation - Design/ engineering Subtotal Grocery store/ commerciai redevelopment - Site assembiy - Construction Subtotal TOTAL $ 550,000 $ 0 $ 0 $ 550,000 $ 100,000 $ 0 $ 100,000 $ 650,000 �� °► � -4'1S Metropolitan Livable Communities Act DEMONSTRATION ACCOUNT PHALEN VILLAGE PILOT PROJECT APPLICATION Saint Paul February 21, 1996 I. GENERAL INFORMATION Project Contact Persons: Dave Gontarek Address: 1300 City Hall Annex Saint Paul, MN 55102 Phone: FAX: 266-6674 228-3220 II. GENERA.L PROJECT INFORMATION HISTORY Allan Torstenson 1100 City Hall Annex Saint Paul, MN 55102 266-6579 228-3314 Phalen Village is located approximately three miles northeast of downtown Saint Paul, ,}ust southeast of Lake Phalen and east of Johnson Parkway. The principal features of the area are well-maintained, tree-lined residential blocks; Lake Phalen; and Phalen Regional Park. The center of the neighborhood is mazked by large e�anses of empty gavement, superblocks of walk-up apartments and automobile-oriented strip malls. Phalen Village lies along an old river valley of the St. Croix River, which flowed south from Lake Phalen to the Mississippi River. During the last glaciation,'gravels and soils were deposited in the valley, and large chunks of ice were left in low areas, forming Lake Phalen and the Phalen Chain of Lakes to the north. The Glaciers left a landscape of rolling, well-drained land dotted with lakes, ponds, and wetlands that remained on poorly-drained soiis deposited in low areas. This seraes of ponds and wetlands detains and cieans stormwater, provides fish and wildlife habitat, is a major flyway for migrating waterfowl and songbirds, and is a significant urban open space and recreation zesource. Since about 1850 and settlement by Europeans, the Phalen Viilage area has undergone substantial change. Development of the raiiroad just east of Lake Phalen in the later part of the nineteenth century began to cut what is now the center of Phalen Village off from natural amenities, especially when the railroad was put on a berm to create a level grade across the old valley. Most of the residential development in Phalen Village took place in the 1950s. The last remaining large tract of vacant land in the A-1 ,� •� ! • f � Phalen Viliage Pilot Project Application February 21, 1946 Page 2 1886 PT3ALEN VILLAGE AREA PLAT MAP 'r - :. '-fi. • l � -- - -- - -- - - - �- -- --::�\ ", x � � . � -rn,,.. : .,.. ' i � : . -. c.... � j �--T� .'E� i 7a . i] i . •'=��!:.. � '.`: ". 1 . . :f"__'"�" i 14 � � l5 � . ::\i< ` "'r.�ru � n.. ...i_ F' A..�:. x.A.5w8L � �. . : tv. � �.. I 1 -_ ..�:. ; :: . .: >'c' \K� ' . � . 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NSl:drf.,i.J x, a , /( /i /ii:/ r.;- ,... ;�� ; :, � � j _.._.._ ' Ey f_n T n_ ,.-.� ` ` , S ' - H _ l= � w ' __ ^_. �"ut- - - � . . , • - � -- --. � "' °— , �� J ' . ^J � ii(f . � _ �� _ �e : ( i A-2 � � �t�•y�s Phalen Village Pilot Project Application February 21, 1996 Page 3 area, previously undeveloped because it contained Ames Lake, wetlands, and poorly- drained soils, was filled in and paved over for development of Phalen Center and other commercial development around 1960. This created a significant gap in the natural conidor and substantiaily cut off Phalen Village from the area's natural systems and naturai amenities. Phalen Park, Johnson Parkway, and the natural landscapes are important enhancers of property value and communiry stabiliry in the Phalen Village area. The center of the azea, however, has turned its back on these natural amenities. It is designed more for cars than people, and is cut off from these sources of stability and value. Phalen Center was built as a large auto-oriented shopping center in 1960, when Highway 212 was expected to be routed nearby. The highway was never built and the Phalen Village commercial area cannot now compete wiffi nearby commercial areas, such as Sun Ray Shopping Center and Mapiewood Mall, that have major highway access. Because it was designed and built for a larger market than now exists, the Phalen Viliage commercia] area has a significant amount of vacant and underutilized space, large expanses of unused asphalt, and a negative image. Because it is uninviting and appears unsuccessful, the commercial area is not even capturing much of the neighborhood market. Immediately surrounding the Phalen Village commercial area are a couple thousand low-income apamnents in lazge, 2 and 1!2-story walkug complexes, many of which are poor qual3ty, poorly maintained, and have significant vacancies. It is an area currently undergoing substantiai change, and the future is uncertain. Single-family homes in the area are beginning to turn over fairly quickly, partiy due to aging households but also because even long-time residents are losing faith in the aiea. Cut off from natural amenities and without the commercial market anticipated when the area was first developed, the combined value of all commercial and residential property in the Phalen Village area declined 34.8% between 1985 and 1994 (using estimated properry values from the Ramsey County Assessors Office and constant dollars based of the Consumer Price Index for the Minneapolis-Saint Paui region). Within this decline, the value of single-family residentiai property declined 10.1%, and the value of multigie-family residential property declined 41.8%. Commercial property values in the area as a whole declined 33%. Within this, the value of commercial property along Maryland was more stable, deciining by only 18.6%. The value of commercial property without frontage on Maryland declined 39.1%. A-3 �'J Phalen Village Pilot Project Application February 21, 1496 Page 4 PHAI.EN VII,LAGE CONCEPT` PQLICY MAP � ' LAKE ' . . . _ . - PHALEN �� ,' ' INCREASE HOUSING ' QUAItTY AND DNERSITY RESTORE � WETLAND , REMOVE' BERM ' � IMPROVETRANS�TANDPEDESfRIANAMENR{ES FUTURE + lRT AT-GRADE� � f . \ � �r ' � ,� �/ / 4 0 2 4 Z � N Q Z q P � < RESTORE AMES LAKE AND NATURAL AMENITIES TO ENHANCEPROPERTY VAlUESAND CONNECT � WITH PHALEN PARK F1�4 J� �2 �e � N �O Q NEALTH g't - y'15 MARYLAND AVENUE INCREASE HOUSING DiVERS{TY, lMPROVE HOUSING MAlNTENANCE, ANDREDUCECONCENTRA710N OF POOA-QUAL�TY, LOW-INCOME HOUSING �1 Phalen Village Pilot Project Application February 21, 1996 Page 5 �'i - y� 5 A neighborhood task force was established in 1991 at the request of the Disuict 2 Communiry Council to recommend strategies to: 1) unprove the declining commercial area; 2) improve deteriorated apartmenc complexes in the area; 3) improve traffic circulation, safety and access; and 4) address land use, zoning and related issues in the area. The group developed the Phalen Village Small Area Pian, which has been adopted by the Saint Paul Ciry Council as an element of the City Compzehensive Plan, to transform the area from a blighting influence harmfiil to properry values into a safe, stable, attractive communiry center that meets neighborhood needs and is an asset to the overail area. The Phalen Village Plan recommends a package of bold, inteaelated objectives: create an urban village with a mix of housing options and a commerciai market reconstituted both geographically and in terms of market; create a stron;er connection to Lake Phalen and the natural landscape, wiih a wetland park and public open space system that provides neighborhood amenity and identity; unpzove access to transit, jobs and job training; and improve the physical development pattern of the area to facilitate interaction among residents, increase personal safety and help control crime. PROJECT DESGRII'TION, PIJRPOSE AND OBJECTIVES Description. This project is the linchpin of a comprehensive plan for transfoiming an alienating and rapidly declining neighbarhood into a livable community. Phasing of this long-range plan must have a logical sequence and also capitalize on sttategic opportunities. Implementation of the plan to best apply the principles for livable, compact development is at a critical point, and the timing is right to take advantage of strategic opportunities to create the wetland park neighborhood signature amenity and establish the neighborhood supermarket anchor of a more compact, transit- and pedesuian-oriented commercial core. This project is to transform part of an obsolete, largely vacant auto-oriented shopping center parcel (now a blighting influence on the surrounding area) into about 9 acres of quality wetland and a public ogen space system trtat becomes a neighborhood signature amenity. Restoring Ames Lake, a currently buried environmental resource, will link Fhalen Village to its primary asset, Phalen Park. It will enhance the value of surrounding property; create a framework for development of a more compact, mixed-use, pedestrian- and transit-oriented neighborhood commercial core; and help to attract quality private commercial and higher-value residential development into a declining, lower-income area. tl - 5 � e Phalen Village Pilot Project Application February 21, 1996 Page 6 PHALEI'd VILLAGE CONCEFTUAL PLAN a ❑ 1��C3 o;� �� a � ; o ��., �� ,. O ��`�,� o O Q � � � � 6 �� f � •� �o.�� p�:4 0 ° L-' � ° °� I:a. 0 o° �{;� 0 0, �,:� ° . �;� � 1;0� ' 1 � ry �o� 0 pa � C7 ` - �� :�`I/`� nr,00 � � iignolia �e ac r� � Q • I y � ----+ ---� �Q��t p��Q ,�,: ••Q t � q` � 1 l a} � 1 Q ° D 1 �H � P�O�P�At7 H • G. ❑ C � ° a 1 e�. „ a.eri i f � � o o � y ! ° O � a�a'�e 6 j o °�' J..o❑� � .o�a #��' o .i :'s . E�7� l!iJ9 � ° n !�' ' O�o ( o ❑� � [ ❑ Q � p ° �; pa 4 �1�U �� '' � � � 0 O � Q� �7 � Q a i' f ` �� o 0 � �, o � �; ;: � �&a . �Q Q o �� ;. 'oq � O � �❑ ]� Q .�. Q � . � COp ❑}°GSL�. oi : �� -��o � } � O :� � ° I i ��. q �_:•-'a. � � :a�� ♦ � �• • �� R � � � , �,� � ' �` "".� ��'l,` HJ�'/;p{' .l � • ��% �•� '�•' •' � * ��E� ' ',' , � "'' �1 _' � , � � ,� �i�� ✓ d!v • ..f•r .�31 •� �.I. I I�� i� �M � } �,�' � a r �� r � .' ,. ,�..r�' } . ` � • � ♦• .• • � � � � � �. . c�m.bryr � r� �y. w � . .. � A c� �_ � .� � � : , - °°°°°')essamine Av� OC- ..�J" � a � ❑�: �-o: � �� c � on or�`. � �... �� -• 1 a� ; *�� '� `� Y�yv}Ijiifiy�� .� r ' � ' fi� '-%�` � � ' 1 .i4;•,��pt'�;re tl � w �� 1 . • •� � 1 y Phalen Village Pilot Project Application February 21, 1996 Page 7 9�-��l5 This project is also to develop a neighborhood supermarket and related mixed commercial and office uses (about 3d,000 total square feet) near transit stops along Maryland Avenue at Prosperiry and Clarence. A sugermarket is critical to meeting neighborhood shopping needs, and is a key second phase of development of the new transit-oriented neighborhood hub. The existing superntarket in the shopping center, which does not fit this market niche and is poorly located, will soon close. The first phase of the neighborhood hub, which included realignment of a street to create a new commercial corner at Prosperity and Maryland, and development of a corner drug store and a neighborhood family health clinic at the new intersection, will be completed in early 1996. Characteristics of the proposed redevelopment include: Mixed land uses. The new supermarket is essential to the daily life of area residents. Tts location near transit stops along Maryland is especially important to hundreds of nearby residents who live in apartment buildings near Maryland because they depend on bus service. It is near a variety of existing housing and shops, as well as to health and education facilities, and the plan for the area encourages development of additional shops and civic facilities for which this project will be a catalyst. Pedestrian orientation. With vast expanses of asphalt, the project area is currently an alienating and uninviting piace, and is a difficult and dangerous place for pedestrians. Bus stops are a quarter mile or more from most stores, across large parking lots and busy streeis where there are no signalized crosswalks. T'his project will create a compaci neighborhood commercial area with stores within easy walking distance of each other and of transit stops. Streets designed for both people and cars. New and realigned streets will have both sidewaiks and bike lanes. Two new signalized intersections will be added to create a street system that ]s safer and more understandable for both drivers and pedestrians. Shelters wi11 be added for bus stops at the new Prosperity-Maryland intersection. The new supermarket will be oriented to Maryland for convenient pedestrian and transit accessibility, and will also have convenient parking. Pedestrian and bSke paths in the public open space system will interconnect the commercial core, neighborhood housing, transit stops, and Phalen Regional Park. A central place. The Phalen Viliage commercial core, with a neighborhood supermarket, corner drug store, banks, health clinic, and restaurants all clustered together along Maryland Avenue, the area's main street, is designed to function as a neighborhood center and help to create a sense of place. This project will be a catalyst for development of additional education, recreation, health and community A-7 � q'i-4�S Phalen Village Pilot Project Application Febmary 21, 1996 Page 8 services as part of the core. A market plaza will create a central public place in the commercial area, a neighborhood focal point that will be highly visible from Phalen Boulevard and a gathering place for neighborhood activities such as a fanners market (the area is home to many active gardeners and farmers market users, including a large Hmong population). The market plaza will overlook the neighborhood signature amenity wefland park, and provide an active link between the commercial azea and the more passive wetland park. Variety of housing types and jobs. A primary goal of the Phalen Village Plan is to create desirable, well-maantained housing that supports stable, long-term residency wiffi a mix of housing types, price ranges and ownershig options to meet the needs of a wide spectrum of ages, incomes, family types and household sizes. The azea now has a very high concentration of low-income housing. This project will help to atuact higher value residential development that adds to the diversity of housang types, price ranges and ownership options in the area by creating neighborhood signature amenity that links Phalen Village to Phalen Park and enhances the value of surrounding property. It will provide e�cganded opportunities for private sector employment in the area, and be a catalyst far improved access to employment growth areas. Variety of public open spaces. The restored Ames Lake wedand park will be a neighborhood signature amenity that links Phalen Village with Phalen Park; includes pedestrian and bike paths that interconnect the commercial core, neighborhood housina, transit stops, and Phalen Regional Park; and provides for fairly passive uses. The Phalen Viilage market plaza will be a central community gathering place, provide for such uses as a farmers market which wiil bring together people from ail parts of the community, and be a place for neighborhood marketing and community building. Open space for more active uses, possibly in conjunction with an indoor recreation facility, is planned for the area east of the wetland park. Human scale. The area will be transformed from one that is alienating and uninviting, designed more for cars than for peopie, into an area that has a more human, pedestrian-oriented scale. Planning process. Cooperative relationships and support foz the Phalen Village Plan were developed during a comprehensive four year planning process, which was jointly sponsored by the Saint Paui Planning Commission and the District 2 Community Councii. The plan was developed by a task force made up of area residents, commercial and residential property owners, businesspersons, and two members of the Saint Paul Planning Commission. ��3 r� � � °!�-y�is Phalen Village pilot Project Application February 21, 1996 Page 9 The task force began its work by identifying desirable characteristics they wished to achieve in the area; these character9stics became "Community Goals for an Urban Viliage" and are very much in keeping with the Principles for Livable, Compact Aevelopment. They conducted a design workshop to develop alternatives for turning their goals into physical reallry, and worked with City and University of Minnesota design professionais to develop plans and drawings of their proposals. The Phalen Village Plan, which has been adopted by the City Council as an element of the City Comprehensive Plan, calls for crea6on of a special design district to ensure impiementation of the plan's design goals. Saint Paul legislators, who have been a key partners and supporters of the planning process, have responded by passing enabling legislation for City creation of special design disuicts. These relationships and concepts, developed during tkae planning process, are now paying off in initial implementation phases. INTEGRATION OF LAND USES AND SYSTEMS Land use, transit and public infrastructure integration. The project will develop a neighborhood supermarket as the anchor of a mixed-use neighborhood commercial core along ffie neighborhood bus route and planned routes for LRT and express bus service. This mixed-use core akeady includes two neighborhood banks, a new neighborhood health clinic (just being completed), several smalier stores, and a number of apartrnent buildings. New/realigned streets and a wetiand pazklpublic open space system wiil provide the framework for development of the Phalen Village mixed-use commercial core, and a signature amenity that links Phalen Village with Phalen Park, enhances sunounding property values and helps attract quality commercial and residential development. Innovativelprototypical. The project is an innovative way of addressing the problem of a sprawling, obsolete auto-oriented commercial center for which a market does not now exist. It wili create a more compact neighborhood commercial area along existing and proposed public transit investments. It will transform vast eapanses of unused asphalt and the largely vacant shopping center from a blighting influence on the area into a neighborhood signature naturai amenity. It wiil demonstrate how such a public infrastructure investment can reverse declining tax base and heip attract higher value housing and private sector investments. Model for repiication. The project is a model for addressing the problem of an obsolete auto-oriented commercial center for which a market does not now exist, and F ' r�1 °I7-y�15 Phalen Village Pilot Project Application February 21, 1996 Page 10 for collaborative development of a compact, mixed-use, more pedestrian- and transit- oriented neighborhood commercial area, in size and offeririg services commensurate with market demand. It is also a model for restoring an environmental resource as a signature amenity to enhance ffie vaIue of sunounding properiy, create a framework for new development, and to help attract quality private commercial and higher-value residential development into a lower-income area. Linkages to employment. This project is part of a comprehensive master plan for the azea that is designed to improve access to transit in the azea, encourage/accommodate public investments in transit to connect the area (which is an urban neighborhood wiffi a very high concentration of low-income housing) with suburban communities and employment growth areas, and to encourage private commercial development along uansit and other private development along a new road that provides project area residents expanded oppornmities for grivate sector employment. III. PROJECT TEAM AND PARTNERSHII'S Participants. The acquisition of the shopping center site will be done by the Ciry of Saint Paul, with the Department of Public Works taking major responsibility for parcels designated for wetland constructiori and sueet realignments. Developable parcels wiil either be tro private developers immediately or held by the HRA for to developers. The commercial development will be caried out by a priv possibly with participation by North East Neighborhoods Development Corporation. Type and nature of partnerships. The Phalen Village planning process, the first phase of the new neighborhood commercial core, and the first phase of the Phalen Wetland Restoration Project have already created new partnerships among the City, the State, the watershed district, neighborhood residents, neighborhood businesses, the University of Minnesota, developers, and environmental groups. They have Ied to new community-building social infrastructure. New organizations, the Phalen Village Business Association and the North East Neighborhoods Development Corporation, are now key partners in implementing the plan. Phase one of the new commercial core, the new corner drug store and new health clinic, are privately funded developments done as a direct result of neighborhood- based pianning and support, and the City's ability to respond quickly with the street realignment project to provide needed access. The first phase of the Phalen Wetland Restoration Project (in the area between Maryland and the south end of Lake Phalen) is a cooperative effort by the City, state agencies, the Ramsey-Washington Metro A- 10 iY i Phalen Village Pilot Project Application February 21, 1996 Page 11 � • �� S Watershed District, neighborhood groups, and the University of Minnesota. It has funding from the City, the State (LCMR and RIM), and the Minnesota Waterfowl Association. This project will strengthen and build on these partnerships, and will leverage a number of public and private funding sources. � FINANCIAL SIJMmARIES See Attachments A and B. v CONTRIBUTION OF FUNDING TO A LNABLE COMMUNITY There are several features which Demonsuation Account funding would provide which would not otherwise occur. FirsC, timing is critical for the Phalen Village plan to be successfuliy implemented. Ttus funding would enable the city to begin actions to acquire the'shopping center site this summer, when its receivership period terminates, and before some other disposition of the property can occur. This is a unique opportunity to move the redevelopment forward which wiil not come again. Second, Demonstration Account funding will enable the city to quickly leverage other private and public resources to enable the activities described in this progosal to be fully funded. The other funds described will follow a significant initial commitment of funds, and may in some cases be contingent on receiving the Demonstration Account funding. In addition, because ttus funding may be used for acquisit'ion, it also will help to ensure that environmental, transportation, and housing resources become available for construction in subsequent phases of the redevelopment. Third, these resources will enable the city to pursue both the shopping center acquisition and the grocery store relocation concunently. Absent this funding, the city wiil continue to pursue both, but one or the other comgonent would have to be deferred, and it is di�cult to defer either. The shopping center's availability in the future is unlikely, and failure to promptly replace the grocery store when it closes decreases the likelihood that it will be replaced as shoppers develop other patterns. Finally, Demonstration Account funding will make a significant contribution to reviving neighborhood confidence and pride. These attitudes have tangible economic consequences: willingness to shop in the neighborhood, wiilingness to buy a home nearby (or invest in improvements, or not sell), willingness to locate a business in the A- 11 ,�� 9't -4'! 5 Phalen Village Pilot Project Application February 21, 1996 Page I2 area. Prompt, large scale successful redevelopment efforts in the azea will produce marked changes in the economy of the area, and these spinoff effects may not occure to a significant extent but for an investment like this in Phalen Village. VI. CURRENT ACTIVITIES, PROPOSED PROCESS Phase one of the of the commercial core is nearing completion. Projects included in this phase include: - The new Walgreens drugstore at the comez of Maryland and Prosperity opened in November, and is wildly successful, doing a great deal more business than the developer anticipated. - The new HealthEast clinic is nearing completion, with occupancy projected for April. - The realignment of Prosperity Avenue between Maryland and Itose is expected to be completed in March. The timing is right for a neighborhood supermarket to build on these success. The exisdng supermarket in the shopping center, which does not fit this market niche, wiil soon close. A smaller supezmarket which fits this niche is of critical importance to the neighborhood, and particulazly to low-income residents who dan't have good access to other supermarkets. Phalen Shopping Center is now in receivership, and will be on the market in June, 1996. The timing is right to acquire the center and begin development of ihe wetland parkJpublic open space system that will be a framework for Phalen Village redevelogment and a linchpin for integrated activity to create a livable community. VII. PROJECT SCHEDULE See Attachment C. VIII. LOCAL GOVERNMEI�TT SUPPORT See attached letter of support from the Mayor. A-12 � g'l • �,'1 S Llvabie Communities Demonstratior+ Account {LCDA} Pilot Praject Application ATTACHMENT A SUMMARY FINANClAL 1MFORMATION 1. Tote! Pfojec! Cost Tata! Soft Cost -Tota[ Harc1 Cos! Pubiic 2,soo,aoo :� �� ' 2,520,000 Private • 2,080,000 208,000 1,872,000 . :�� :� »� 720,000 2 What uso(s) are you propoaing for Demonstration Aacou[rt funds? Site assembly and preparation for Phalen Village wetland restoration project, phase 2; and Phalen V ill ag e c redevelopment projecc, phase 2. 3. Are you requeating a laen or a grant7 Grant d. Whst2 is tho ¢tatus a� finanaisl oommittmerrta for this pro}ect? Funding foz phase 1 of both the wedand restoratioa and commercial redevelopment projects is in place. Funding for phase Z of both components is pending or will be submitted in the near furure. �. 1Mhen w81 you neea Demonstration Accourn ivnds7 Iune, 1996 LCCJAApP! ATA � i _ _� __...._ . ____.� r�3 � , � � < � r+� �� CO a � M U a � � _ ;� �� <� G � �.r', " � u u y � V S S oQ 0 0 0 0 �f N Vi O n `ti W a � � �C u a�'� � O C U ��in'ic.>w� o g $o g ° o $ c � h �V r' � N � O O � q O O � � a , 4 � � L � � C "C ^ ca � C a �� o � 0 . •- = � y u 'G v G�� r. :A C A n, > n cr ^ a' �� N v y G t..1' aQ u A-14 L d N � � u . > R� O � G� a. a? 000 N � � ^ N 0 0 0 0 � T � C � C � .� a u u a }, � O L U N y � � u � U ° � ° o 0 ° o � o 0 o W N � O t- � , . ., •� �9�-y�5 � .� � � � E u Z p( � w � � � � � � � 8 � .� � .r � � , M L �� P s � �� N� 4 ^ � �' B : Q� ��! , n lA1.t31'1CC11 �, ; � P OJECT SCHEDULE � � . 199 149 Shopping center redevelopmend wetland restoraCion - Acquisition - Dearolition! site preparation - Designl engineering - Wetland restoration Grocery store! commercial redevelopment - Site assembly - Construction IS A - 15. _._ / P�} �! � 9? - �1'15 ATTACHIV�NT B Ce17� `�Y �i�U�13rJ�7it�3�`►M�':+L r�171�� The total grant amount specified in paragraph 2.01 of ttns agreement shall be disbursed to the Grantee for uses consistent with this agreement acr,ording to the following schedule: The Council will disburse grant funds in response to written disbursement requests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the developmem activity funded by this agreement, the contractor(s)Ivendor(s) to be paid, and the time period within which the development activity was or will be performed. Disbursements prior to the perfonnance of a development activity will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Gramee. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. Subject to verification of a written disbursement request and approval for consistency with this agreement, the Council will disburse a requested amoum to the Grantee within two (2) weeks after receipt of a written disbursement request. � C'—y'�e ��_�� Grant No. SG-96-59 METROPOLITAN LIVABLE COMI4IITNl[TIES ACT LIVABLE COMMU1�iITIES DEMONSTRATION ACC(3UNT GRANT AGREEMENT 1'HIS GRt1NT AGREEMEPiT is made and entered into by the Metrogolitan Councii ("Council") and the Ciry of Saint Paul ("Crrantee"). WHERF.AS, Ivfinnesota Statutes section 473.251 creates the Metropolitan Livable Communiries Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Development Guide adopted by the Council; and � WHEREAS, Minnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan Livable Communities Fund a Livabie Communities Demonstration Account and require the Council to use the funds in the account to make grants or loans to municipalities padicigating in the Local Housing Incentives Program under Minnesota Statutes section 473.254 or to metropolitan-area counties to fund the initiatives specified in Minnesota Statutes section 473.25, paragaph (b), in participating municipalities; and WHEREAS, the Grantee is a"municipality" participating in the Local Fiousing Incentives Account program under Minnesota Statutes section 473.254 or a metropolitan-area county and submitted a pilot project application for Livable Communities Demonstration Account funds in response to the Council's request for pilot project applications; and WHEREAS, at its March 14, 1946 regulaz meeting, the Council awazded Livable Communities Demonstration Account grant funds to fow pilot projects, including the pilot project described in the Grantee's pilot project appiication for Livabie Communities Demonstration Account £unds. NOW THEREFORE, in consideration of the mutuai promises and covenants contained in this agreement, the Crrantee and the Council agree as foliows: I. DEFINTTIONS 1.01 Definition of Terms. For the purgoses of this agreement, the terms defined in this pazagraph have the meanings given them in this pazagraph unless otherwise provided or indicated by the conteart. (a} `it�feiropolitcm tlrea" means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. {b) `il�tunicipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Ivfinnesota Statutes section 473.254, or a county in the Metropolitan Area. Page I of 5 Pages �_u�5 (c) `ParticipatingMunicipality" means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account progam and negotiated affordable and life-cycle housing goals for the Municipality pursuant to IvHnnesota Statutes section 473.254. II, GRANT FUNDS 2.01 Tota! Grant Amount The CouncIl will grant to the Grantee a total sum of $650,000.00 which shall be funds from the Livable Communities Demonstration Account of the Metropolitan Livable Communities Fund. Notwithstanding any other provision of this agreement, the Grantee understands and agrees that any reduction or termination of Livable Communities Demonstration Account grant funds made available to the Council may resuit in a like reduction to the Grantee. 2.02 Authorized Use of Grant Funds. The totat grant amount made available to the Grantee under this agreement shall be used only for the putposes and activities described in the Grantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised by the Cnantee to reflect the grant award made by the Council. A copy of the Grantes's revised application which identifies eligibie uses of the grant funds is attached to and incorporated into this ageement as Attachment A. If the provisions of the Grantee's application ue inconsistent with other provisions of this agreement, the other provisions of this agreement shall take precedence over ihe provisions of the application. Grant funds must be used to fund the uutiatives specified in Minnesota Statutes section 473.25, paragraph (b), in a Participating Municipality. Cnant funds must be used for costs directly associated with the specific proposed activities and ue intended to be used for "hard costs" rather than "soft costs" such as: administrative overhead; activities prior to the start of the grant project; travel expenses; legal fees; pemvts, ]icenses or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. The Council shall bear no responsibility for cost overruns which may be incuned by the Grantee or others in the implementation or performance of the project activities described in Attachtnent A. The Grantee agrees to remit to the Council in a prompt manner, any unspent grant funds and any grant funds wttich are not used for the authorized purposes specified in this paragraph. 2.03 Budget Variance. A variance of ten percent (10%) in the amounts allocated to various eligible uses identified in Attachment A shall be considered acceptable without further documentation or Council approval. Budget variances exceeding ten percent (10%) may require approval of the governing bady of the Metropolitan Councii. Notwithstanding the aggregate or net effect of any variances, the Council's obligation to provide grant funds under this agreement shall not exceed the maximum grant amount specified in paragraph 2.01 of this agreement. 2.04 Disbarsement Schedule. The Council will disburse the grant funds to the Grantee in accordance with the grant fund disbursement schedule contained in Attachment B, which is incorporated into and made a part of this agreement. The Council wiii make disbursements only upon receipt of a written disbursement request from the Grantee's authorized agent or representative. 2.05 Interest Earnings. If the Csrantee earns any interest or other income from the grant funds received from the Council under tivs agreement, the Grantee will use the interest earnings or income only for the purposes of implementing the project activities described in Attachment A. Page 2 of S Pages a�-`� S 2.06 Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the project site nor imposes any obligation on the Council to participate in any pollution cieanup of the project site if such cleanup is undertaken ar required. III. ACCOU1�iTI1�iG, AUDTT AND REPORT REQIIIREMENTS 3.01 Accounting and Records. The Grantee agrees to establish and maintain accurate and complete accounts and records relating to the receipt and e�enditure of all grant funds received from the Council. Notwithstanding the expiration and termination provisions of paragraphs 4.01 and 4.Q2, such accounts and records shall be kept and maintained by the Grantee for a period of three (3) years following the completion of the project activities described in Attachment A or three (3) years following the expenditure of the grant funds, whichever occurs earlier. For all expenditures of grant funds received gursuant to this agreement, the Grantee will keep proper financial records including invoices, conuacts, receipts, vouchers and other appropriate documents sufficient to evidence in proper detail the nature and prfipriety of the expenditure. Accounting methods shall be in accordance with generally accepted accounting principles. 3.02 Andits. The above accounts and records of the Grantee shall be audited in the same manner as ail other accounts and records of the Grantee aze audited and may be audited or inspected on the Cnantee's premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Crrantee, for a period of three {3) years following the completion of the project activities described in Attachment A or three (3} years following the expenditure of the gant funds, whichever occurs earlier. 3.03 Report Requirements. The Grantee wili provide to the Council one or more written reports which report on the status of the pro}ect activities described in Attachment A and the expenditures of the grant funds. The reporting schedule and the content of the written report(s) are identified in Attachment C, which is incorporated into and made a part of this agreement. 3.Q4 Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be carried out, if such environmental assessment or review is appropriate for the scope and nature of the praject activities funded by this grant, and that any environmental issues have been or will be adequately addressed. N. AGREEMENT TERM 4.01 Term. This agreement is effective upon execution of the agreement by the Council. Unless terminated pursuant to paragraph 4.02, this agreemem will expire upon compietion of the project acti�ities described in Attachment A or foilowing the expenditure of all grant funds by the Grantee, whichever occurs earlier. 4A2 Termination. This agreement may be terminated by the Council for cause at any time upon fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of this agreement and any amendments of this agreement. If this agreement is terminated, the Csrantee shall receive payment on a pro rata basis for project activities described in Attachment A that have been completed. Ternvnation of this agreement does not alter the Council's authority to recover grant funds on the basis of a later audit or other review, and does not alter the Gtantee's obiigation to return any grant funds due to the Council as a result of later audits or corrections. If the Council Page 3 of S Pages � tiUIS determines the Crrantee has failed to comply with the terms and conditions of this agreement and the applicable provisions o£the Metropolitan Livable Communities Act, the Council may take any action to protect the Council's interests and may refuse to disburse additionai grant funds and may require the Grantee to return all or part of the grant funds already disbursed. 4.03 Amendments. The Council and the Grantee may amend this agreement by mutual agreement. Amendments, changes or modifications of tlus agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. V. GENERAL PROVISIONS 5.01 Equal Opportuniry. The Grantee agrees it will not discrinunate against any emplayee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to gublic assistance, membership or activity in a local civil rights commission, disabflity, sexual orientarion or age and take affirmative action to insure app]icants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.02 ConIIict of Interest. The members, officers and empioyees of the Grantee shall comply with ali applicable state statutory and regulatory conflict of interest laws and provisions. 5.03 Liability. To the fullest eatent pernutted by law, the Grantee sha11 defend, indemnify and hold harmSess the Council and its members, empioyees and agents from and against all ciaims, damages, losses and expenses, including but not limited to attomeys' fees, arising out of or resulting from the conduct or implementation of the project activities funded by this grant. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1480 (CERCLA) as amended, 42 U.S.C. sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, 42 U.S.C. sections 6901 et seq. This obligation shall not be constcued to negate, abridge or otherwise reduce any other right or obligation of indemnity which otherwise would e�st between the Council and the Crrantee. The provisions of this paragraph shall survive the ternunation of this agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 466, or other applicabie state or federal law. 5.04 Acknowiedgments. The Grantee shall acknowledge the financial assistance provided by the Council and the State of Minnesota in promotional materials, press releases, reports and publicarions relating to the project activities described in Attachment A which are funded in whole or in part with the grant funds. The acknowledgment should cornain the following, or similar, language: This project was financed in part with a granf from the Metropolitcm Council thraugh the Livable Communities Demorutration Account of the Metropotitan Livable Communities Fund. 5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state or federa] licenses, pemuts, bonds, authorizations or approvais necessary to perform or complete the pro}ect activities described in Attachment A. Page 4 of 5 Pages a��`�� 5.06 Contractors and Subcontractors. The Grantee shall include in any cornract or subcontract for project activities appropriate co�ract provisions to ensure contractor and subcomractor compliance with all applicable state and federal laws. Along with such provisions, the Crrantee shall require tbat contractors and subcontractors perfornung work covered by this grant comply with all applicable state and federai Occugationai Safety and Heaith Act regulations. 5.07 Attachments. The following are attached to ttus agreement and are incorporated into and made a part of this agreemern: (a) Attachment A- Grantee's pilot project application for Livable Communities Demonstration Accowrt grant funds, as revised to reIlect the Council's grant award (b) Attachment B- Grant Fund Disbursement Schedule (c) Attachment C- Written Report Submission Schedule 5.08 Warranty of Legal Capaciiy. The individuai signing this agreement on behatf of the Grantee represents and wanants on the Grantee's behalf that the individual is duly authorized to execute this agreement on the Grantee's behalf and that this agreement constitutes the Grantee's valid, binding and enforceable agreements. IN WIT'NESS WHEREOF, the Grantee and the Council have caused this agreement to be executed by their duly authorized representatives. This agreement is effective on the date of final execution by the Council. Approved as to forrn: Assistant General Counsel METROPOLTTAN COUNCII. By James J. Solem, Regional Administrator Date CTTY OF SAINT PAUL � Date � Norm Coleman, Mayor Martha Larsoq Director of Finance and Management Senrices Date MC 1]N6 LCAOEM�3 Page 5 af S Pages � �,�� ATTACHbIENT A APPLICATION FOR LIVABLE COMMITNTl'IES DEMONSTRATIOIV ACCOUNT GRANT P'UNDS This attachment comprises pages A-1 through A IS and incorporate the Grantee's pilot project application for Livable Communities Demonstration Account grant funds wtuch was submitted in response to the Council's request for Livable Communities Demonstration Account pilot pro}ect applications, subject to the following revisions which reflect the actual grant amount awarded to the Grantee: The "LCDA" portion of the "Total Project Cost" identified at page A-13 is $650,000 nther than $800,000. Page A-14 is revised to reflect the following "LCDA Funds" amounts for the following project activities: Shopping center redevelopmentl wetland restoration - Acquisition - DemolitionlSite prepazation - Design/ engineering Subtotal Grocery store! commercial redevelopment - Site assembly - Construction Subtotal TOTAL $ SSO,OQO $ 0 $ Q $ 550,000 $ 100,000 $ 0 $ 100,000 $ 650,000 Metropolitan Livable Communities Act DEMONSTRATION ACCOUNT � �� a PI3AL�N VILLAGE PILOT PR4JECT APPLICA.TION Saint Paui I. II. GENERA.L INFQRMATION February 21, I996 Pro,yect Contact Persons: Dave Gontarek Address: 1300 City Hall Annex Saint Paul, MN 55102 Phone: 266-6674 FAX: 228-3220 GENERAI. PROJECT INFORMATION HISTORY Allan Torstenson 1100 City Hall Annex Saint Paul, MN 55102 2b6-6579 228-3314 Phalen Village is located approximately three miles northeast of downtown Saint Paul, just southeast of Lake Pbalen and east of 7ohnson Parkway. The principal features of the area are weli-maintained, tree-lined residential blocks; Lake Phalen; and Phalen Regional Park. 'The center of the neighborhood is marked by lazge expanses of empty pavement, superblocks of walk-up apartments and automobile-ociented strip malls. and recreation zesource. Phalen Village lies along an old river valley of the St. Croix River, which flowed south from Lake Phalen to the Mississippi River. During the last glaciation,'gravels and soils were deposited in the valley, and large chunks of ice were left in low areas, forming L.ake Phalen and the Phalen Chain of Lakes to the north. The Glaciers left a landscape of rolling, well-drained land dotted with lakes, ponds, and wetlands that remained on poorly-drained soils deposited in low areas. This series of ponds and wetlands detains and cleans stormwater, provides fish and wiidlife habitat, is a major flyway for mignting waterfowl and songbirds, and is a significant urban open space Since about 1$50 and settiement by Europeans, the Phalen Village area has undergone substantiai change. Development of the railroad just east of I.ake Phalen in the later part of the nineteenth century began to cut what is now the center of Phalen Village aff from natural amenities, especialiy when the railroad was put on a berm to create a levei grade across the old valley. Most of the residential development in Phalen Village took place in the 1450s. The last remaining large tract of vacant land in the A-1 r ,�� Phalen Viliage Piloc Pro,}ecc Application �� February 21, 1946 Page 2 1886 PFIALEN VII,LAGE AREA PLAT MAP • � � � •� �L�. .' H3l..i/.. � , � .' . � �)0 n.. 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'/ -�y �.d"� � I � F4 ` a i, ' i P ' r.r.sa... fl ; L.ti i� )>� �-. �- �F inr,•6;s',, r,�� ,•nb� • � • u'�� ` :1 : -o �u ° .. y"I a T . 1 > Ir_, : • _ �.�d•..::.: � . �J a r� ,� .4.. . .o' . �- - o i_ : . .._�.:, . . �..,� . . .. .- �.- ' _ "" , - • _-✓.� � � .�.0 � j %J y T ' E . x � j- +. Mt�: '_ _ �"..-��>,>��..Sr�'r w.� ""' _._ _.'L __...'�__� '_ - � V �l � ..�..�_.-_ . I iae. � " . � T , ` ; .::.., fJr. . f ' � ! i i ' " � : .u/� .� T �`-'" , .f, i: :.rrrree� �{a�s. _' '� ...�::.,E '�; t., i ..i� � ° a_ i �€ �ol'�",.ai �i•�'i :-;i.II_ �_� � : ` 6. .4• �� :' � _` � � _+ .� ` r /' � "` : �: 1 u u" b. � L._! '?. _ � ��e: :�.e-`�.r' er 1 . . �� .. .• . . . . . _: . o N , ,.�9 . � ..r i.��-.�,� �' . ,u: fa... ,'. u� „i .:�. .._ �� r.... r. "°' ' t� . fi i�.•'.v C�,FT ❑ 3� H�5 H� A N H;SIF�, °j '_�_ _ _ _• ..5./..n .i I.L%.2 � . . � ,. �: �-' ` � r,.,.. a - ft ; o 'E _ N .." ".r�..; 0 ' Y'��z�'..-.. u ii; . ' F- Ec � - : - sa.,. _ ,�� ' � .��_ 1 I :� � � it .' = c ' ! N.f /:..i.1. � •; � � � ? � ^ �� E N 3 � i n _�___ _C. - - ---- - - -. . .._� _ �,; ._ ._,.. �, . _ . . I _ � - I _- --- �"'— I�. , 1� • k•ya _ :;,, , (L d__ L' • . A-2 Phalen �illage Pilo[ Project Application February 21, 1996 Page 3 �� area, previously undeveIoped because it contained Ames Lake, wetlands, and poorly- drained soils, was filied in and paved over for development of Phalen Center and other commercial development around 1960. This created a significant gap in the natural corridor and substantiaily cut off Phalen Village from the area's natural systems and natural amenities. Phalen Park, Johnson Parkway, and the natural iandscapes are important enhancers of property value and community stability in the Phalen Village area. The center of the area, however, has turned its back on these natural amenides. It is designed more for cars than people, and is cut off from these sources of stability and value. Phalen Center was built as a large auto-oriented shopping center in 1960, when Highway 212 was expected to be routed nearby. The highway was never built and the Phalen Village commerciai area cannot now compete with nearby commercial areas, such as Sun Ray Shopping Center and Mapiewood Mall, that have major highway access. Because it was designed and built for a larger market than now exists, the Phalen Viilage commercial area has a significant amount of vacant and underutilized space, large expanses of unused asphalt, and a negative image. Because it Ss uninviting and appears unsuccessful, the commercial area is not even capturing much of the neighborhood market. Immediately surrounding the Phalen Village commercial area are a couple thousand low-income apartments in large, 2 and 1i2-story waikup complexes, many of which are poor qualiry, poorly maintained, and have significant vacancies. It is an azea currently undergoing substantial change, and the future is uncertain. Single-family homes in the area are be�inning to turn over fairly quickly, partly due to aging households but also because even long-tune residents are losing faith in the aiea. Cut off from natural amenities and without the commercial market anticipated when the area was fust developed, the combined value of all commerciai and residential property in the Phalen Village area declined 34.8% between 1985 and 1994 (using estimated property values from the Ramsey County Assessors Office and constant dollars based of the Consumer Price Index for the Minneagolis-Saint Paul region). Within this decline, the value of single-family residential property declined 10.1%, and the value of multipte-family residential property declined 41.8%. Commercial property values in the area as a whole declined 33%. Within this, the value of cammercial property along Maryland was more stable, declining by only 18.6%. The value of commercial property without fronta�e on Maryland declined 39.1%. A-3 Phalen Village Pilot Project Application February 21, 1996 Page 4 PHALEN VII.LAGE CONCEPT POLICY MAP � , LAKE � PHALEN , � � .' � � I RESTORE ' w�tallo � a REMOVE ` � BERM � � INCREASE HOUSING QUAIfTY AND DNER5l1Y � tMPROVE7R,4N51TANDPEDESlRIANAMENI71E5 FUNRE � iR7 AT-GRADE� i t \ � `Sf � I la / �� 1' a / W / x c � w I° � q � P, 1� AEA �� RESTORE AMES LAKE AND NATURAL AMENITfES TO ENHANCE PROPERT'! VAlUES AND CONNECT � W17H PHALEN PARK � �� r J� j` 2 �e �� ¢� a MARYLAND AVENIlE� DE ION, fiON, At10 � � INtREASE HOU5ING DiVERSiTY, tMPRaVE NOVSlNG MAINTENANGE, At3D R£DUCE CONCENSRATION OF POOR QUAUTY, lOW-INCOME HOUSING s Phalen Village Pilot Project Application February 21, 1996 Page 5 �� A neighborhood task force was estabiished in 1991 at the request of the District 2 Community Council to recommend strategies to: 1) improve the declining commercial area; 2j improve deteriorated apartment complexes in the area; 3) improve tra�c circula[ion, safery and access; and 4) address land use, zoning and related issues in the area. The group developed the Phalen Village Smail Area Plan, which has been adopted by the Saint Paul City Council as an element of the City Comprehensive Plan, to uansfoim the area from a blighting influence harmful to properry values into a safe, stable, attractive coznmunity center that meets neighborhood needs and is an asset to the overall area. The Phalen Village Plan recommends a package of bold, interrelated objectives: create an urban village with a mix of housing options and a commercial market reconstituted both geographically and in terms of market; create a stronger connection to Lake Phalen and the naturai landscape, with a wetland park and pubtic open space system that provides neighborhood amenity and identity; impzove access to transit, jobs and job training; and improve the physical development pattern of the area to facilitate interaction among residents, increase personai safery and help control crime. PROJECT DESCRII'T`ION, PURPOSE AND OBJECTIVES Description. This project is the linchpin of a comprehensive plan for transforming an alienating and rapidly declining neighborhood into a livable community. Phasing of this long-range plan must have a logical sequence and also capitalize on strategic opportunities. Implementation of the plan to best apply the principles for livabie, compact development is at a critical point, and the timing is right to take advantage of strategic opportunities to create the wetland park neighborhood signature amenity and establish the neighborhood supermarket anchor of a more compact, transit- and pedestrian-oriented commercial core. This project is to transform part of an obsolete, largely vacant auto-oriented shopping center parcel (now a blighting influence on the surrounding area) into about 9 acres of quality weUand and a public.open space system that becomes a neighborhood signature amenity. Restoring Ames Lake, a currently buried environmental resource, will link PhaIen Viilage to its primary asset, Phalen Park. It wi11 enhance the value of surrounding property; create a framework for development of a more compact, mixed-use, pedestrian- and transit-oriented neighbarhood commercial core; and help to attract quality private commercial and higher-value residential development into a declining, lower-income area. A-5 Phalen Village Pilot Project Application February 21, 1996 Pa�e 6 PHALEN VILLAGE CONCEPTUAL PLAN a o�� a ❑ QO Q o : ^.a d (� g'a �� >� �� '� 0 � r. � u � D 17°�L17� ��SQd� CQ❑ a p ° t, ° a °a k:a . n {''`-� � � ? L.r-..J o � � � ', a a . � � •; a a �: Q �.�,.i.,, ;O� .. .---- i s;'• i �c�. �.:Pr o p p Q� o �, ;�. .:�i �, �, ❑ o � � �� Q A p� j �Q n p� +`, i } t t o �� e; ❑ 1 Pro�P�dt7 H W1 • `'� : I � Q � � n{ --� } [ p ° o } "e�.m.ns.n n ei Qp .?; `F o ; [ n Q ,*� � �Q o❑ ) f ' ',O � LJ I o. �000+�{{� � �y tr (-� o S�� o �, o o.,, [fl` '[� � }`a ' ; a ° t a jE� ❑ Q 1 f o g oa ° ° Q�� %r'C]a ° o 0 o f[} � F] � Q 0 i �� o p �� ,'' t Q� a ��:� � � � o �.;:� ° �' ❑ d [o �o?�� '� Q o 1 � � �{ {} � o r, 6 •�` � o ° a ., p p+ ••jo % 7 �n Oo y a no rs�►w� �. .. � � � � � G � �i\ Y / ,° �a: � � °�` , : 7 �`� -- .� i . - FAn9nalla �e�� a a `�� ❑ �� a _ a a / �1 �,, ��.� �. ��' � -'?�i�i�^`a"tw -; � � � 1 , • l� �i �- � ♦ /"* ��' '.�.�• � • ij� � ♦ � � . �� ''. � ,dm �• : 2�� %i-'Y;�- ` ' , • ,. ,. \,�,/✓'�u�l�(b� . • �� II II�� • � .• .. .: r � .' ` � rr' i. r •. M• . .� •• � r ��.� , � t;� � � ` � l�� ..�.__� �. , s..:.. ...;_.:� -'- _ � � �� --_..__.._ � ... `� �� '� '� I � �� i � : S�Y+li: ►^CCS'7 �CM3�• �� • f �1...-_'.c. _ ' (' � . �y�� ' ' ,� ° < '"�:{;;ti:!.t s * � �" , ��` S"-x l�' � , I ' � , ��, � ., � , r . � •� � � Phalen Village Pilot Project Application February 21, 1996 Page 7 ��J�n� This project is also to develop a neighborhood supermarket and related mixed commercial and office uses (about 30,000 total square feet) near transit stops along Maryland Avenue at Prosperity and Clarence. A supermarket is critical to meeting neighbarhood shopping needs, and is a key second phase of development of the new transit-oriented neighborhood hub. The existing supermarket in the shopping center, which does not fit this mazket niche and is poorly located, will soon close. The first phase of the neighborhood hub, which included realignment of a street to create a new couunerciai corner at Prosperity and Maryland, and development of a corner drug store and a neighborhood family health clinic at the new intersection, will be completed in early 1996. Characteristics of the proposed redevelopment include: Miated land uses. The new supermarket is essential to the daily life of area residents. Its location near transit stops along Maryland is especially important to hundreds of nearby residents who live in apartment buiidings near Maryland because they depend on bus service. It is near a variety of existing housing and shops, as well as to heaith and education facilities, and the plan for the area encourages development of• additional shops and civic facilities for which this project will be a catalyst. Pedestrian orzentation. With vast expanses of asphalt, the project area is currently an alienating and uninviting place, and is a difficult and dangerous place for pedestrians. Bus stops are a quarter mile or more Prom most stores, across Iazge parking lots and busy streeis where there are no signalized crosswalks. This project wi11 create a compact neighborhood commercial area with stores within easy walking distance of each other and of transit stops. Streets designed for both people and cars. New and realigned screets wi11 have both sidewalks and bike lanes. Two new signalized intersections will be added to create a street system that is safer and more understandable for both drivers and pedestrians. Shelters will be added for bus stops at the new Prosperity-Maryland intersection. The new supermarket will be oriented to Mazyland for convenient pedestrian and transit accessibility, and will aiso have convenient parking. Pedestrian and bike paths in the pubiic open space system will interconnect the commercial core, neighborhood housing, transit stops, and Phalen Regionai Park. A central place. The Phalen Village commercial core, with a neighborhood supermarket, corner drug store, banks, health clinic, and restaurancs all clustered together along Maryland Avenue, the area's main street, is designed to function as a neighborhood center and help to create a sense of place. This project will be a catalyst for development of additional education, recreation, health and community A-7 Phalen Village Pilot Project Application February 21, 1996 Page 8 � � ti�.�. � �� services as part of the core. A market plaza will create a central pubiic glace in the commercial area, a neighborhood focal point that wili be highly visible from Phalen Boulevard and a gathering place for neighborhood activities such as a farmers market (the area is home to many active gardeners and farmers market users, including a large Hmong population). The mazket plaza will overlook the neighborhood signature amenity wefland park, and provide an active Iink between the commercial area and the more passive wefland park. Variety of housing types and jobs. A primary goal of the Phalen Village Plan is to create desirable, well-maintained housing that supports stable, long-term resideney with a mix of housing types, price ranges and ownership options to meet the needs of a wide spectrum of ages, incomes, family types and househoid sizes. The area now has a very high concentration of low-income housing. This project wiIl help to attract higher value residential development that adds to the diversity of housing types, price ranges and ownership options in the area by creating neighborhood signature amenity that links Phalen Village to Phalen Park and enhances the value of surrounding property. It will provide expanded opportunities for private sector employment in the area, and be a catalyst for improved access to employment growth areas. Variety of public open spaces. The restored Ames Lake wetiand pazk will be a neighborhood signature amenity that links Phalen Village with Phalen Park; inciudes pedestrian and bike paths that interconnect the commercial core, neighborhood housing transit stops, and Phalen Regional Park; and provides for fairly passive uses. The Phalen Village market plaza will be a central communiry gathering place, provide for such uses as a farmers market which wi11 bring together people from all parts of the communiry, and be a place for neighborhood marketin; and community building. Open space for more active uses, possibly in conjunction with an indooz recreation facility, is planned for the area east of the wetland park. Human scale. The area will be transformed from one that is alienating and uninviting, designed more for cars than for people, into an area that has a more human, pedestrian-oriented scale. Planning process. Cooperative relationships and support for the Phalen Village Plan were developed during a comprehensive four year planning process, which was jointly sponsored by the Saint Paul Planning Commission and ihe District 2 Communiry Council. The plan was developed by a task force made up of area residents, commercial and residentiai property owners, businesspersons, and two members of the Saint Paul Planning Commission. GII? 6 Phalen Village pilot Project Application February 21, 1996 Page 9 � n� �� The task force began its work by identifying desirable chazacteristics they wished to achieve in the area; these characteristics became "Community Goals for an Urban Village" and aze very much in keeping with the Principles for Livable, Compact Development. They conducted a design workshop to develop alternatives for tuming their goals into physical reality, and worked with City and University of Minnesota design proPessionals to develop plans and drawings of their proposals. The Phalen Viilage Plan, which has been adopted by the Ciry Council as an element of the City Comprehensive Plan, calls for creation of a special design district to ensure implementation of the plan's design goals. Saint Paul legisiators, who have been a key partners and supporters of the planning process, have responded by passing enabling legislation for City creation of special design districts. These zelationships and concepu, developed during the planning process, are now paying off in initial unplementation phases. �iVTEGRATION OF LANA USES AND SYSTEMS Land use, transit and public infrastructure integration. The project will develop a neighborhood supermarket as the anchor of a mixed-use neighborhood commercial core along the neighborhood bus route and planned routes for LRT and express bus service. T'his mixed-use core already includes two neighborhood banks, a new neighborhood health clinic (just being completed), several smaller stores, and a number of apartment buildings. New/realigned streets and a wedand parkJpublic open space system wiil provide the framework for development of the Phalen Village mixed-use commerciai core, and a signature amenity that links Phalen Village with Phalen Park, enhances surrounding property values and helps attract quality commercial and residential development. Innovative/prototypical. The project is an innovative way of addressing the problem of a sprawling, obsolete auto-oriented commercial center for which a market does not now exist. It will create a more compact neighborhood commercial azea along existing and proposed public transit investments. It will transform vast expanses of unused asphalt and the largely vacant shopping center from a blighting influence on the area into a neighborhood signature natural amenity. It will demonstrate how such a public infrastructure invesunent can reverse declining tax base and help attract higher vatue housing and private sector investments. Model for replication. The project is a model for addressing the groblem of an obsolete auto-oriented commercial center for which a market does no[ now exist, and A-9 Phalen Village Pi1ot Project Application February 21, 1996 Page 1� {il� ��' �`� for collaborative development of a compact, mixed-use, more pedestrian- and transit- oriented neighborhood commercial azea, in size and offeririg services commensurate with mazket demand. It is also a model for restoring an environmental resource as a signature amenity to enhance the value of surrounding property, create a framework for new development, and to help attract qualiry private commercial and fugher-value residential development into a lower-income area. Linkages to employment. This project is part of a comprehensive master plan for the area that is designed to improve access to transit in the area, encourage/accommodate public investments in uansit to connect the area (which-is an urban neighborhood with a very high concentradon of low-income housing) with suburban communities and employment growth areas, and to encourage private commercial development along transit and other private development along a new road that provides project area residents expanded opportunities for private sector employment. PROJECT TEAM AND PART'NERSHIPS Participants. The acquisition of the shopping center site wili be done by the City of Saint Paul, with the Department of Public Works taking major responsibility for parcels designated for wetland construction and street realignments. Developable parcels will either be tro private developers immediately or held by the HIZA for to developers. The commercial development will be caried out by a priv possibly with participation by North East Neighborhoods Development Corporation. Type and nature of partnerships. The Phalen Village planning process, the first phase of the new neighborhood commercial core, and the �rst phase of ihe Phalen Wetiand Restoration Project have already created new partnerships among the City, the State, the watershed district, neighborhood residents, neighborhood businesses, the University of Minnesota, developers, and environmental groups. They have led to new community-buiiding social infrastructure. New organizations, the Phalen Village Business Association and the North East Neighborhoods Develogment Coiporation, are now key partners in implementing the plan. Phase one of the new commerciai core, the new corner drug store and new health clinic, are privately funded developments done as a direct result of neighborhood- based planning and support, and the City's ability to respond quickiy with the street reatignment project to provide needed access. The first phase of the Fhalen Wetland Restoration Project (in the area between Marytand and the south end of Lake Phalen) is a cooperative effon by the City, scate agencies, the Ramsey-Washington Metro A- 10 � Phalen Viilage Pilot Projec[ Application February 21, 1996 Page 11 IV. V. �'� "`�� Watershed District, neighborhood groups, and the University of Minnesota. It has fund'mg from the City, the State (LCMR and RIM), and the Minnesota Waterfowl Association. This project wi11 strengthen and build on these partnerships, and will leverage a number of public and private funding sources. FINNANCIAL SUMIVIARIES See Attachments A and B. CONTRIBVTTON OF FUNDING TO A LNABLE COMMUNITY There are several featuies which Demonstration Account funding would provide which would not otherwise occur. First, timing is critical for the Phalen Village pian to be successfuliy implemented. This funding would enable the city to begin actions to acquire the shopping center site this summer, when iu receivership period terminates, and before some other disposition of the property can occur. Ttus is a unique opportunity to move the redevelopment forward which wiil not come again. Second, Demonstration Account funding will enable the city to quickly leverage other private and public resources to enable the activaties described in this proposai to be fully funded. The other funds described will foilow a significant initial commitment of funds, and may in some cases be contingent on receiving the Demonstration Account funding. In addition, because this funding may be used for acquisition, it also will help to ensure that environmentat, transportation, and housing resources become available for construction in subsequent phases of the redevelopment. Third, these resources wilt enable the city to pursue both the shopping center acquisition and the grocery store relocation concuaendy. Absent this funding, the city will continue to pursue both, but one or the other component would have to be deferred, and it is difficult to defer either. The shopping center's availabiliky in tbe future is unlikely, and failure to prompily replace the grocery store when it closes decreases the likelihood that it wiil be replaced as shoppers develop other patterns. Finally, Demonsuation Account funding will make a significant contribution to reviving neighborhood confidence and pride. These attitudes have tangibte�economic consequences: willingness to shop in the neighborhood, willingness to buy a home nearby (or invest in improvemen[s, or not sell), willingness to locate a business in the A- 11 q�l -`-�n S Phalen Village Pi1ot Project Appiication February 21, 1996 Page 12 azea. Prompt, lazge scale successful redevelopment efforts in the area will produce mazked changes in the economy of the area, and these spinoff effects may not occure to a significant extent but for an investment like this in Phalen Village. 'VI. CURRENT ACTIVITIES, PROPOSED PROCES5 Phase one of the of the commercial core is nearing compledon. Projecu included in this phase include: - The new Waigreens drugstore at the corner of Maryland and Prosperity opened in November, and is wildly successful, doing a great deal more business than the developer anticipated. - The new HealthEast clinic is nearing completion, with occupancy projected for April. The realignment of Prosperiry Avenue between Maryland and Rose is expected to be completed in March. The timing is right for a neighborhood supermarket to build on ffiese success. The existing supermarket in the shopping center, which does not fit this market niche, will soon close. A smaller supermarket which fits this niche is of critical importance to the neighborhood, and particulariy to low-income residents who don't have good access to other supermarkets. Phalen Shopping Center is now in receivership, and will be on the market in June, 1996. The timing is right to acquire the center and begin development of the wedand park/public open space system that will be a framework for Phalen Village redevelopment and a linchpin for integrated activity to create a livabie community. VII. PT20JECT SCHEDULE See Attachment C. VIII. LOCAL GOVERNMENT SUPPOIiT See attached letter of support from the Mayor. A-12 � �(�}-�� Livable Communities Demonstration Account (4CDA} Pilot Project Application � ATfAGHMENT A 5UNfl1t1ARY FINANClAL INFORMATlUN 1. Tota[ Ptvjact Cost Totat Sott Cast Toiat Hard Cost Public 2,800,0 280,60 ' 2,520,000 Prhtate �:� �� : t�� 1,872,000 2. What uso(s) are you propoalog for Demonstration Aecourd funds7 LCOA :�� :� �� Site aasembly and prepazacion for Phalen Village wecland res[omtion project, ghase 2; and Phalen Viliage commercial redevelopment projecc, phase 2. 3, Are you requesting e loan or a graRt? Grant d, WhM ir tho status at financial aommittmarsta for thi� pro}ect? Funding for phase 1 of both the wefland restoration and commcrcial redevelopment projects is in place. Funding for phase 2 of 6oth componenrs is pendino or wIll be submitted in the near funue• � s. Vdhen wYf you neeC Demorzsvation Accourt funds? June, 1996 i.cnnaaPi �ra A-13 � � � <Q �� m� �� [.� � O ({ �� Qp E'!� � T� a < L � � w U a � 3 � U u � o ° o ° 0 0 ° o o 0 0 0 p p � N � t� K R � � Q 4 � �' � o n. E' � � � V G y � W � � V G��!' V� $ � �� g � Sg N � g �� °? Q N o Y U d w �. O � U . 7 a� � V y � a u u o. u go� g 000� o �� 0 ^+ N N o o o 0 0 0 g o S � ._„ ; : ;:_:. _': `�� ° � � $.:,:, .. �� '�'�:. ��-°000 =� �AE�°- ., .: � •-- _ � � � _°��;��a z�v°� a < �� ¢a" �o ��' o ��u" o �,�a , . , �°:: , , r y .. . .. � �� , �-L� � � � � � ti � � � � � . � � � � s s � .� � r � � M t •� . � s � �� .� : II� A- 14 «:��», � a� -�t�S 199_ 199_ t99, Shopping center redevelopmenU wetland restoration - Acquisition - Demotition/ site preparation - Design/ engineering - Wetland restoration Grocery store/ commercial redevelopment - Site assembly - Construction A - 15. � � ��,N?S ATTACHII�NT B GRANC FUND D7SBURSEMENT SCHEDULE The total grant amount specified in paragraph 2.01 of this agreement shall be disbursed to the Grantee for uses consistent with this agreemeat according to the following schedule: The Council will disburse grant funds in response to written disbursement requests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the development activity funded by this agreement, the contractor(s)/vendor(s) to be paid, and the time period within which the development activity was or will be performed. Disbursements prior to the performance of a development activity will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Grantee. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. Subject to verification of a written disbursement request and approval for consistency with this agreement, the Council will disburse a requested amount to the Grantee within two (2) weeks after receipt of a written disbursement request. TF an di� � . q�-�� ATTACHNIENT C WRITTEN REPORTS AND SUBNIISSION SCHEDiLE Beginning three (3) months after the Grantee initially receives grant funds, the Grantee shall submit to the Councii written quarterly reports which shall contain at least the following elements: A summary of grant funds received and expended to date, including a descripuon of the purposes or uses for which the grant funds were eJCpended; and • A statement of expected grant fund expenditures within the next quarter. The Grantee's final written quarterly report shall be submitted wittrin two (2) months following the expenditure of all grant funds by the Grantee and shall contain a certification by the Grantee's chief financial officer that all grant funds have been eapended in accordance with this agreement and the provisions of the Metropolitan Livable Communities Act. The Grantee also shall complete and submit to the Council a Monitoring and Evaluation Report which will assist the Council in monitoring and evaluating the implementation of the Livable Communities Demonstration Account program. The contents, format and completion date of the Monitoring and Evaluation Report will be deternuned by the Council. AUTHORIZED AGENT The CounciPs authorized agent for the purposes of administering this agreement is Joanne Bazron or another designated Council employee. The written report(s) submitted to the Council shall be directed to the attention of the Council's authorized agent at the following address: Metropolitan Council Meazs Pazk Centre 230 East Fifth Street Saint Paul, Minnesota 55101-1634 � Council File # � � � � Green Sheet # 3�� ('} f°" j r�` ;,_ r�s i : 1�� - � y° . �'�:i�:;.,' � i G Presented By Referred To Committee _ Date WI�EREAS, the City of 5aint Paul has applied for and received a$650,000 grant from the Livable Communiries Demonstration Account of the Metropolitan Livabie Communities Fund for the Phalen Village redevelopment project including reuse of part of the Phalen Center site for restoration of the Ames Lake wetland, creating a public framework fot the Phalen Viilage redevelopment, and a grocery storelcommercial redevelopment project to meet neighborhood shopping and service needs; and 8 WHEREAS, the project is a linchpin for nnplementation of the Phalen Village Plan, which was developed by 9 a neighborhood-based task force and adopted by the City Council in 1995 as part of the Saint Paul 10 Comprehensive Plan; 11 12 BB IT RESOLVED, that proper City officials be authorized to execute and approve, on behalf of the City of 13 Saint Paul, Metropolitan Council Livable Communities Demonstration Account Grant Agreement No. SG- 14 96-59, a copy of said agreement being attached hereto and incorporated herein by reference. Requested by Department of: ■1 Adoption Certi£ied by Council Secretary By: :� Appxoved by yo�� e l l� By: RESOLUTION CITY OF SAINT PAUL, MtNNESOTA a� Approved by AYaypr £or Submi �sion to Councl r By :�`�.__.__.. � �� S � A11an Torstenson ST BE ON COUNCIL AGEN�A BY (DATE) ASAP ��;,�� T J� .\ FOB IGREEN DEPARiMENT DIRE D ' — cmarronNer BUDGET DIRECTOR MAY�R (OR ASSISTANn TOTAL # OF SIGNATUBE PAGES 3 ,(CLIP ALL LOCATIONS POR SIGNATURt7 GRYCAUNqL cm c�aK PIN. & MGi SE wmnwnTe ""°°"'"""" Approval of attached resolution autnorizing proper City o£ficials to e�cecute and appxove Metropolitan Council Livable Communities Demonstration Account GranL Agreement Ito. SG-96-59. Esecution and approval of Metropolitan Council Livable Communities Demonstration Account Grant Agreement No_ SG-96-59 to enable the City to receive a Livable Communities Gr Releet (R) _ PfANNING COMMISSION — CIB COMMfT7EE �_ S7AFF _ DISTFiICTCAURT __ CIVIISERVICEGOMMISSION . SUPPORTS WN1CH COUNGLO&IECTfVE? PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWI�IG QUESTIQNS: t. Has this person/tirm ever worketl under a contract for this tlepartmerlt? F YES NO `". 2. Has this perso�rm ever baen a city employae� �� YES NO 3. Does this persoMirm possess a skill noi normaliy possessed by any?current ciry employee? YES NO Explafn el! yes nnswers on seperafe sheet end attech to green sheet The City has b2en awarded a$650,000 Metropolitan Council Livable Communities Grant for a linchpin project to i.mplement the Phalen Villaqe P1an (developed by a neighborhood task force �nd adopted by the City Council) to use part of the largely vacant Phalen Center site (now a blighting in£luence on the surrounding area) for restoration of the Ames Lake wetland and ROW for a reaiignment of Prosperity Ave., creating a public framework for the Phalen Village redevelopment, and a grocery store/commercial redevelopment project to meet neighborhood shop�ing and service needs. The City would be able to move ahead with a�roject to remove blight and improve property values in the Phalen Village area; to create a neighborhood siqnature open space amenicy; to realign Prosperity Ave. to solve traffic circulation and safety issues, and create a framework £or the Phalen Village commercial area redevelopment; and to restructure the commercial area to better meet the neighborhood market niche and add value to the area, with a grocery storeJcommercial redevelopment project to meet neighborhood needs. �� None i/S#$l�.� @";=�"^':�;'�rin3•. S??9'�E:r7 �ae �'1 4�J�'� IG NOTAPPROVED' R � '-� , �.>� ...�..�...°...�:.,.... �.rl.'}." APR 15 1gg7 �?�YC7P'S <��FfCE The obsolete larqely vacant Phalen Center will continue to be a blighting influence on the area. The e�tisting supermarket in Phalen Center will probably close, meaning loss of a full-service supermarket to 1ow-income residents of the area who don't have good access_to other supermarkets. This opportunity to acquire ROW for realignment o£ Prosperity Ave. at a reasonable cost, and to use it as a catalyst and focus for commerical redevelopment, woul be lost. TOTAL AMOUNT OF TRANSAC710N $ 650 000 COST/REVENUE BUDGE7ED (CIRCLE ONE) FUNUIfdGSOURCE �etYOpolltdri LI.Vd}Jle COIlllttllriltl2S FUn�TIV1TYNUMBER YES NO FINANGIAL INFORMFTION� (EXPtA1N) -. r C ' /JG i� ` �� GrantNo. SG-96-59 METR(?POLITAN LIVABLE COMMI3NT'TIES ACT LIVABLE COMMUNITIES DEMONSTRATTON ACCOUNT GRANT AGREEMENT THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Councii") and the City oF Saint Paut ("Grantee"). WHEREAS, IvTinnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livabte Gommunities Act and the policies of the Metropolitan Development Guide adopted by the Council; and WHEREAS, Ivlinnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan Livable Communities Fund a Livable Communities Demonstration Account and require the Council to use the funds in the account to make grants or loans to municipalities participating in the Local Housing Incentives Program under Minnesota Statutes section 473.254 or to metropolitan-area counties to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (b}, in participating municipalities; and WHEREAS, the Grantee is a"municipality" participating in the Locai Housing Incentives Account program under Minnesota Statutes section 473.254 or a metropolitan-area county and submitted a pilot project application for Livable Communities Demonstration Account funds in response to the Council's request for pilot project applications; and WHEREAS, at its March 14, 1996 regular meeting, the Councii awarded Livable Communities Demonstration Account grant funds to four pilot projects, including the pi3ot project described in the Crrantee's pilot project application for Livable Communities Demonstration Account funds. NOW THEREFOItE, in consideration of the mutual promises and covenants contained in this agreement, the Grantee and the Council agree as foltows: I. DERINITIONS 1.01 Definition of Terms. For the purposes of this agreement, the terms defined in this pazagraph have the meanings given them in this paragraph unless otherwise provided or indicated by the context. (a) 'ibletropolitan Area" means the seven-county metropolitan azea as defined by Minnesota Statutes section 473.121, subdivision 2. (b) "Municipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254, or a county in the Metropolitan Area. Page 1 of 5 Pages t�' 9�-w�ts (c) "Participafing Municipality" means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account progam and negotiated affordable and life-cycte housing goals for the Municipality pursuant to Minnesota Statutes section 473.254. II. GRANT k'I7NA5 2.01 Total Grant Amount �'he Council will gram to the Gramee a total sum of $650,000.00 which shall be funds from the Livable Communities Demonstration Account of the Ivietropolitan Livable Communities Fund. Notwithstanding any other provision of this agreement, the Grantee understands and agrees that any reduction or ternunation of Livable Communities Damonstration Account grant funds made available to the Council may result in a like reduction to the Grantee. 2.02 Authorized Use of Grant Funds. The total grant amount made available to the Grantee under this agreement shall be used only for the purposes and activities described in the Grantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised by the Grantee to reflect the grant awud made by the Council. A copy of the Grantee's revised application which identifies eligible uses of the grant funds is attached to and incorporated into this agreement as Attachment A. If the provisions of the Grantee's application are inconsistent with ather grovisions of this agreement, the other provisions of this agreement shalt take precedence over the provisions of the application. Grant funds must be used to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (b), in a PartScipating Municipality. Grant funds must be used for costs directly associated with the specific proposed activifses and are intended to be used for "hard costs" rather than "soft costs" such as: administrative overhead; activities prior to the start of the grant project; uavel expenses; legal fees; pernuts, licenses or authorizatian fees; costs associated with preparing other grant proposals; operating expenses; planning costs, inciuding comprehensive planning costs; and prorated lease and salary costs. The Council shall beaz no responsibility for cost overruns which may be incutred by the Crantee or others in the implementation or performance o£ the pro}ect activities described in Attachment A. The Grantee agrees to remit to the Council in a prompt manner, any unspent grant funds and any grant funds which are not used for the authorized purposes specified in this paragraph. 2.03 Budget Variance. A variance of ten percent (10%) in the amounts a(located to various eligible uses idemified in Attachment A shall be considered acceptable without further documentation or Council approval. Budget variances exceeding ten percent (10%) may require approval of the governing body of the Metropolitan Council. Notwithstanding the aggregate or net effect of any variances, the CounciPs obligation to provide grant funds under this agreement shall not exceed the ma�cimum grant amount specified in paragraph 2.01 of this agreement. 2.d4 Disbursement Schedule. The Council will disburse the grant funds to the Grantee in accordance with the grant fund disbursement schedule contained in Attachment B, which is incoiporated into and made a part of this agreement. The Council will make disbursements only upon receipt of a written disbursement request from the Grantee's authorized agent or representative. 2.d5 Interest Earnings. If the Grantee earns any interest or other income from the grant funds received from the Council under this agreement, the Grantee will use the interest eamings or income only for the purposes of implementing the project activities described in Attachment A. Page 2 of S Pages �t �'1-�1'1S 2.Q6 Effect of Grant� Issuance of this grant neithet implies any Council responsibility for contaminatioq if any, at the project site nor imposes any obiigation on the Council to participate in any pollution cleanup of the project site if such cleanup is undertaken or required. IIL ACCOTTNTING, AUDTT AND REPO�RT REQiJIREMENTS 3.01 AccounYsng and Records. The Grantee agtees to establish and maintain accurate and complete accounts and recorda relating to the receipt and expenditure of all grant funds received from the Council. Notwithstanding the �piration and termination provisions of paragraphs 4.01 and 4.02, such accounts and records shall be kept and maintained by the Grantee for a period of tiuee (3) years following the completion of the project activities described in Attachment A or three (3) years following the eacpenditure of the grant funds, whichever occurs earlier. For all exgenditures of grant funds received pursuant to this agreement, the Grantee wili keep proper financial records including invoices, contracts, receipts, vouchers and other appropriate documents sufficient to evidence in proper detail the nature and propriety of the expenditure. Accounting methods shall be in accordance with generally accepted accounting principles. 3.02 Audits. The above accounts and records of the Grantee shall be audited in the same manner as ali other accounts and records of the Grantee are audited and may be audited or inspected on the Grantee's premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Crrantee, for a period of three (3) years following the completion of the project actavities described in Attachment A or three (3) years following the expenditure of the grant funds, whichever occurs earlier. 3.03 Report Requirements. The Grantee will provide to the Counci3 one or more written reports which report on the status of the project activities described in Attachment A and the expenditures of the grant funds. The reporting schedule and the content of the written report(s) are identified in Attachment C, which is incorporated into and made a part of this agreement. 3.04 Environmental Site Assessmen� The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be camed out, if such environmental assessment or review is appropriate for the scope and nature of the project activities funded hy this grant, and that any environmentai issues have been or wiii be adequately addressed. IV. AGREEMENT TERM 4A1 Term. This agreement is effective upon execution of the agreement by the Councii. IInless terminated pursuant to paragraph 4.02, this agreement will expire upon compietion of the project activities described in Attachment A or following the expenditure of all grant funds by the Crrantee, whichever occurs earlier. 4.02 Termination. This agreement may be temunated by the Council for cause at any time upon fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of this agreement and any amendments of this agreement. If this agreement is ternunated, the Crrantee shall receive payment on a pro rata basis for project activities described in Attachment A that have been compieted. Temunation of this agreement does not alter the Council's authority to recover grant funds on the basis of a later audit or other review, and does not alter the Crrantee's obIigation to return any grant funds due to the Council as a result of later audits or corrections. If the Council Page 3 of .i Pages „ q1-y'is deternunes the Crrantee has £ailed to compiy with the terms and conditions of this agreement and the applicable provisions of the Metropolitan Livable Communities Act, the Council may take any action to protect the Council's interests and may refuse to disburse addirional grant funds and may require the Crrantee to retum all or part of the grant funds already disbursed. 4.03 Amendments. The Council and the Grantee may amend this agreement by mutual agteement. Amendments, changes ar modifications of this agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. V. GENERAL PROVISIONS 5.01 Equai Opportunity. The Grantee agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, znarital staxus, status with regard to public assistance, membership or acfsvity in a local civil rights commission, disability, se�mal orientation or age and take affirmative action to insure appiicants and employees are treated equaily w'rth respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.02 Con�lict of Interest. The members, officers and employees of the Grantee shall comply with ail applicable state statutary and regulatory conflict of interest laws and provisions. 5.03 LiabiIity. To the fuliest extent pernutted by law, the Grantee shali defend, indemnify and hold harmless the Council and its members, empioyees and agents from and against all claims, damages, losses and expenses, including hut not limited to attorneys' fees, arising out of or resulting from the conduct or impiementation of the project activities funded by this grant. Claims included in this indemnification inciude, without limitation, any claims asserted pursuant to the Minnesota Environmentat Response and Liability Act (2vIERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensataon, and Liability Act of 1980 (CERCLA) as amended, 42 U.S.C. sections 9601 et seq., and tke federal Resource Conseroation and Recovery Act of 1916 (RCRA) as amended, 42 U.S.C. sections 6901 et seq. This obligation shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which othenvise would e�st between the Council and the Grantee. The provisions of this paragraph shail survive the termination ofthis agreement. This indemnification shail not be construed as a waiver on the part of either the Crrantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 4b6, or other applicable state or federal law. 5.04 Acknowledgments. The Grantee shall acknowiedge the financial assistance provided by the Council and the State of Minnesota in promotiona3 materials, press releases, reports and publications relating to the project activities described in Attachment A which are funded in whole or in part with the grant funds. The acknowledgment shouid contain the foilowing, or similar, language: This project was�nanced in part wilh a grant from the Metropolitan Council through ihe Livable Communities Demonstration Account of the Metropolita�a Livable Communities Fund. 5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state or federal licenses, pemuts, bonds, authorizations or approvals necessary to perfonn or complete the ptoject activities described in Attachment A. Page 4 of 5 Pages t� Q'�-y'15 5.06 Contractors and Subcontractors. The Grantee shall include in any cantract or subcontract for pro}ect activities appropriate contract provisions to ensure contractor and subcontractor compliance with all applicable state and federal laws. Along with such provisions, the Gtantee shall require that contractors and subcontractors performing work covered by this grant comply with all applicable state and fedual Occupational Safety and FIealth Act regulations. 5.07 Attachments. The foilowing aze attached to this agreement and are incorporated into and made a part of this agreement: , (a) Attachment A- Crrantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised to reflect the Council's grant award (b) Attachment B- Grant Fund Disbursement Schedule (c) Attac}unent C- Written Report Submission Schedule 5.08 Warranty of Legal Capacity. The individual signing this agreement on behalf of the Grantee represents and warrants on the Grantee's behalf that the individual is duly authorized to execute this agreement on the Grantee's behalf and that this agreement constitutes the Crrantee's valid, binding and enforceable agreements. IN WITNESS WHEREOF, the Crrantee and the Council have caused this agreement to be executed by their duly authorized representatives. This agreement is effective on the date of final execution by the Council. Approved as to form: Assistant General Counsel MEIROPOLTTAN COUNCIL �: 3ames J. Solem, Regional Administrator Date CITY OF SAINT PAIIL � Date : Date LCADEM03 Norm Coleman, Mayor Martha Larson, Director of Finance and Management Services MC i)/95 Page 5 of � Pages � q'1- ��s ATTACffi1�NT A I:)777�77.�iy [�.iaLiS i!f�'1�:17t�J ACCOUNT GRANT F`UNDS This attachment comprises pages A-1 through A-15 and incorporate the Grantee's pilot project application for Livable Communities Demonstration Account gant funds which was submitted in response to the Council's request for Livable Communities Demonstra6on Account pilot project applications, sub}ect to the following revisions which reflect the actual grant amount awazded to the Crrantee: The "LCDA" portion of the "Total Project Cost" identified at page A-13 is $650,000 rather than $800,OQ0. Page A 14 is revised to reflect the following "LCDA Funds" amounts for the following project activities: Shopping center redevelopmenU wetland restoration - Acquisition - Demolition/Site prepazation - Design/ engineering Subtotal Grocery store/ commerciai redevelopment - Site assembiy - Construction Subtotal TOTAL $ 550,000 $ 0 $ 0 $ 550,000 $ 100,000 $ 0 $ 100,000 $ 650,000 �� °► � -4'1S Metropolitan Livable Communities Act DEMONSTRATION ACCOUNT PHALEN VILLAGE PILOT PROJECT APPLICATION Saint Paul February 21, 1996 I. GENERAL INFORMATION Project Contact Persons: Dave Gontarek Address: 1300 City Hall Annex Saint Paul, MN 55102 Phone: FAX: 266-6674 228-3220 II. GENERA.L PROJECT INFORMATION HISTORY Allan Torstenson 1100 City Hall Annex Saint Paul, MN 55102 266-6579 228-3314 Phalen Village is located approximately three miles northeast of downtown Saint Paul, ,}ust southeast of Lake Phalen and east of Johnson Parkway. The principal features of the area are well-maintained, tree-lined residential blocks; Lake Phalen; and Phalen Regional Park. The center of the neighborhood is mazked by large e�anses of empty gavement, superblocks of walk-up apartments and automobile-oriented strip malls. Phalen Village lies along an old river valley of the St. Croix River, which flowed south from Lake Phalen to the Mississippi River. During the last glaciation,'gravels and soils were deposited in the valley, and large chunks of ice were left in low areas, forming Lake Phalen and the Phalen Chain of Lakes to the north. The Glaciers left a landscape of rolling, well-drained land dotted with lakes, ponds, and wetlands that remained on poorly-drained soiis deposited in low areas. This seraes of ponds and wetlands detains and cieans stormwater, provides fish and wildlife habitat, is a major flyway for migrating waterfowl and songbirds, and is a significant urban open space and recreation zesource. Since about 1850 and settlement by Europeans, the Phalen Viilage area has undergone substantial change. Development of the raiiroad just east of Lake Phalen in the later part of the nineteenth century began to cut what is now the center of Phalen Village off from natural amenities, especially when the railroad was put on a berm to create a level grade across the old valley. Most of the residential development in Phalen Village took place in the 1950s. The last remaining large tract of vacant land in the A-1 ,� •� ! • f � Phalen Viliage Pilot Project Application February 21, 1946 Page 2 1886 PT3ALEN VILLAGE AREA PLAT MAP 'r - :. '-fi. • l � -- - -- - -- - - - �- -- --::�\ ", x � � . � -rn,,.. : .,.. ' i � : . -. c.... � j �--T� .'E� i 7a . i] i . •'=��!:.. � '.`: ". 1 . . :f"__'"�" i 14 � � l5 � . ::\i< ` "'r.�ru � n.. ...i_ F' A..�:. x.A.5w8L � �. . : tv. � �.. I 1 -_ ..�:. ; :: . .: >'c' \K� ' . � . 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NSl:drf.,i.J x, a , /( /i /ii:/ r.;- ,... ;�� ; :, � � j _.._.._ ' Ey f_n T n_ ,.-.� ` ` , S ' - H _ l= � w ' __ ^_. �"ut- - - � . . , • - � -- --. � "' °— , �� J ' . ^J � ii(f . � _ �� _ �e : ( i A-2 � � �t�•y�s Phalen Village Pilot Project Application February 21, 1996 Page 3 area, previously undeveloped because it contained Ames Lake, wetlands, and poorly- drained soils, was filled in and paved over for development of Phalen Center and other commercial development around 1960. This created a significant gap in the natural conidor and substantiaily cut off Phalen Village from the area's natural systems and naturai amenities. Phalen Park, Johnson Parkway, and the natural landscapes are important enhancers of property value and communiry stabiliry in the Phalen Village area. The center of the azea, however, has turned its back on these natural amenities. It is designed more for cars than people, and is cut off from these sources of stability and value. Phalen Center was built as a large auto-oriented shopping center in 1960, when Highway 212 was expected to be routed nearby. The highway was never built and the Phalen Village commercial area cannot now compete wiffi nearby commercial areas, such as Sun Ray Shopping Center and Mapiewood Mall, that have major highway access. Because it was designed and built for a larger market than now exists, the Phalen Viliage commercia] area has a significant amount of vacant and underutilized space, large expanses of unused asphalt, and a negative image. Because it is uninviting and appears unsuccessful, the commercial area is not even capturing much of the neighborhood market. Immediately surrounding the Phalen Village commercial area are a couple thousand low-income apamnents in lazge, 2 and 1!2-story walkug complexes, many of which are poor qual3ty, poorly maintained, and have significant vacancies. It is an area currently undergoing substantiai change, and the future is uncertain. Single-family homes in the area are beginning to turn over fairly quickly, partiy due to aging households but also because even long-time residents are losing faith in the aiea. Cut off from natural amenities and without the commercial market anticipated when the area was first developed, the combined value of all commercial and residential property in the Phalen Village area declined 34.8% between 1985 and 1994 (using estimated properry values from the Ramsey County Assessors Office and constant dollars based of the Consumer Price Index for the Minneapolis-Saint Paui region). Within this decline, the value of single-family residentiai property declined 10.1%, and the value of multigie-family residential property declined 41.8%. Commercial property values in the area as a whole declined 33%. Within this, the value of commercial property along Maryland was more stable, deciining by only 18.6%. The value of commercial property without frontage on Maryland declined 39.1%. A-3 �'J Phalen Village Pilot Project Application February 21, 1496 Page 4 PHAI.EN VII,LAGE CONCEPT` PQLICY MAP � ' LAKE ' . . . _ . - PHALEN �� ,' ' INCREASE HOUSING ' QUAItTY AND DNERSITY RESTORE � WETLAND , REMOVE' BERM ' � IMPROVETRANS�TANDPEDESfRIANAMENR{ES FUTURE + lRT AT-GRADE� � f . \ � �r ' � ,� �/ / 4 0 2 4 Z � N Q Z q P � < RESTORE AMES LAKE AND NATURAL AMENITIES TO ENHANCEPROPERTY VAlUESAND CONNECT � WITH PHALEN PARK F1�4 J� �2 �e � N �O Q NEALTH g't - y'15 MARYLAND AVENUE INCREASE HOUSING DiVERS{TY, lMPROVE HOUSING MAlNTENANCE, ANDREDUCECONCENTRA710N OF POOA-QUAL�TY, LOW-INCOME HOUSING �1 Phalen Village Pilot Project Application February 21, 1996 Page 5 �'i - y� 5 A neighborhood task force was established in 1991 at the request of the Disuict 2 Communiry Council to recommend strategies to: 1) unprove the declining commercial area; 2) improve deteriorated apartmenc complexes in the area; 3) improve traffic circulation, safety and access; and 4) address land use, zoning and related issues in the area. The group developed the Phalen Village Small Area Pian, which has been adopted by the Saint Paul Ciry Council as an element of the City Compzehensive Plan, to transform the area from a blighting influence harmfiil to properry values into a safe, stable, attractive communiry center that meets neighborhood needs and is an asset to the overail area. The Phalen Village Plan recommends a package of bold, inteaelated objectives: create an urban village with a mix of housing options and a commerciai market reconstituted both geographically and in terms of market; create a stron;er connection to Lake Phalen and the natural landscape, wiih a wetland park and public open space system that provides neighborhood amenity and identity; unpzove access to transit, jobs and job training; and improve the physical development pattern of the area to facilitate interaction among residents, increase personal safety and help control crime. PROJECT DESGRII'TION, PIJRPOSE AND OBJECTIVES Description. This project is the linchpin of a comprehensive plan for transfoiming an alienating and rapidly declining neighbarhood into a livable community. Phasing of this long-range plan must have a logical sequence and also capitalize on sttategic opportunities. Implementation of the plan to best apply the principles for livable, compact development is at a critical point, and the timing is right to take advantage of strategic opportunities to create the wetland park neighborhood signature amenity and establish the neighborhood supermarket anchor of a more compact, transit- and pedesuian-oriented commercial core. This project is to transform part of an obsolete, largely vacant auto-oriented shopping center parcel (now a blighting influence on the surrounding area) into about 9 acres of quality wetland and a public ogen space system trtat becomes a neighborhood signature amenity. Restoring Ames Lake, a currently buried environmental resource, will link Fhalen Village to its primary asset, Phalen Park. It will enhance the value of surrounding property; create a framework for development of a more compact, mixed-use, pedestrian- and transit-oriented neighborhood commercial core; and help to attract quality private commercial and higher-value residential development into a declining, lower-income area. tl - 5 � e Phalen Village Pilot Project Application February 21, 1996 Page 6 PHALEI'd VILLAGE CONCEFTUAL PLAN a ❑ 1��C3 o;� �� a � ; o ��., �� ,. O ��`�,� o O Q � � � � 6 �� f � •� �o.�� p�:4 0 ° L-' � ° °� I:a. 0 o° �{;� 0 0, �,:� ° . �;� � 1;0� ' 1 � ry �o� 0 pa � C7 ` - �� :�`I/`� nr,00 � � iignolia �e ac r� � Q • I y � ----+ ---� �Q��t p��Q ,�,: ••Q t � q` � 1 l a} � 1 Q ° D 1 �H � P�O�P�At7 H • G. ❑ C � ° a 1 e�. „ a.eri i f � � o o � y ! ° O � a�a'�e 6 j o °�' J..o❑� � .o�a #��' o .i :'s . E�7� l!iJ9 � ° n !�' ' O�o ( o ❑� � [ ❑ Q � p ° �; pa 4 �1�U �� '' � � � 0 O � Q� �7 � Q a i' f ` �� o 0 � �, o � �; ;: � �&a . �Q Q o �� ;. 'oq � O � �❑ ]� Q .�. Q � . � COp ❑}°GSL�. oi : �� -��o � } � O :� � ° I i ��. q �_:•-'a. � � :a�� ♦ � �• • �� R � � � , �,� � ' �` "".� ��'l,` HJ�'/;p{' .l � • ��% �•� '�•' •' � * ��E� ' ',' , � "'' �1 _' � , � � ,� �i�� ✓ d!v • ..f•r .�31 •� �.I. I I�� i� �M � } �,�' � a r �� r � .' ,. ,�..r�' } . ` � • � ♦• .• • � � � � � �. . c�m.bryr � r� �y. w � . .. � A c� �_ � .� � � : , - °°°°°')essamine Av� OC- ..�J" � a � ❑�: �-o: � �� c � on or�`. � �... �� -• 1 a� ; *�� '� `� Y�yv}Ijiifiy�� .� r ' � ' fi� '-%�` � � ' 1 .i4;•,��pt'�;re tl � w �� 1 . • •� � 1 y Phalen Village Pilot Project Application February 21, 1996 Page 7 9�-��l5 This project is also to develop a neighborhood supermarket and related mixed commercial and office uses (about 3d,000 total square feet) near transit stops along Maryland Avenue at Prosperiry and Clarence. A sugermarket is critical to meeting neighborhood shopping needs, and is a key second phase of development of the new transit-oriented neighborhood hub. The existing superntarket in the shopping center, which does not fit this market niche and is poorly located, will soon close. The first phase of the neighborhood hub, which included realignment of a street to create a new commercial corner at Prosperity and Maryland, and development of a corner drug store and a neighborhood family health clinic at the new intersection, will be completed in early 1996. Characteristics of the proposed redevelopment include: Mixed land uses. The new supermarket is essential to the daily life of area residents. Tts location near transit stops along Maryland is especially important to hundreds of nearby residents who live in apartment buildings near Maryland because they depend on bus service. It is near a variety of existing housing and shops, as well as to health and education facilities, and the plan for the area encourages development of additional shops and civic facilities for which this project will be a catalyst. Pedestrian orientation. With vast expanses of asphalt, the project area is currently an alienating and uninviting piace, and is a difficult and dangerous place for pedestrians. Bus stops are a quarter mile or more from most stores, across large parking lots and busy streeis where there are no signalized crosswalks. T'his project will create a compaci neighborhood commercial area with stores within easy walking distance of each other and of transit stops. Streets designed for both people and cars. New and realigned streets will have both sidewaiks and bike lanes. Two new signalized intersections will be added to create a street system that ]s safer and more understandable for both drivers and pedestrians. Shelters wi11 be added for bus stops at the new Prosperity-Maryland intersection. The new supermarket will be oriented to Maryland for convenient pedestrian and transit accessibility, and will also have convenient parking. Pedestrian and bSke paths in the public open space system will interconnect the commercial core, neighborhood housing, transit stops, and Phalen Regional Park. A central place. The Phalen Viliage commercial core, with a neighborhood supermarket, corner drug store, banks, health clinic, and restaurants all clustered together along Maryland Avenue, the area's main street, is designed to function as a neighborhood center and help to create a sense of place. This project will be a catalyst for development of additional education, recreation, health and community A-7 � q'i-4�S Phalen Village Pilot Project Application Febmary 21, 1996 Page 8 services as part of the core. A market plaza will create a central public place in the commercial area, a neighborhood focal point that will be highly visible from Phalen Boulevard and a gathering place for neighborhood activities such as a fanners market (the area is home to many active gardeners and farmers market users, including a large Hmong population). The market plaza will overlook the neighborhood signature amenity wefland park, and provide an active link between the commercial azea and the more passive wetland park. Variety of housing types and jobs. A primary goal of the Phalen Village Plan is to create desirable, well-maantained housing that supports stable, long-term residency wiffi a mix of housing types, price ranges and ownershig options to meet the needs of a wide spectrum of ages, incomes, family types and household sizes. The azea now has a very high concentration of low-income housing. This project will help to atuact higher value residential development that adds to the diversity of housang types, price ranges and ownership options in the area by creating neighborhood signature amenity that links Phalen Village to Phalen Park and enhances the value of surrounding property. It will provide e�cganded opportunities for private sector employment in the area, and be a catalyst far improved access to employment growth areas. Variety of public open spaces. The restored Ames Lake wedand park will be a neighborhood signature amenity that links Phalen Village with Phalen Park; includes pedestrian and bike paths that interconnect the commercial core, neighborhood housina, transit stops, and Phalen Regional Park; and provides for fairly passive uses. The Phalen Viilage market plaza will be a central community gathering place, provide for such uses as a farmers market which wiil bring together people from ail parts of the community, and be a place for neighborhood marketing and community building. Open space for more active uses, possibly in conjunction with an indoor recreation facility, is planned for the area east of the wetland park. Human scale. The area will be transformed from one that is alienating and uninviting, designed more for cars than for peopie, into an area that has a more human, pedestrian-oriented scale. Planning process. Cooperative relationships and support foz the Phalen Village Plan were developed during a comprehensive four year planning process, which was jointly sponsored by the Saint Paui Planning Commission and the District 2 Community Councii. The plan was developed by a task force made up of area residents, commercial and residential property owners, businesspersons, and two members of the Saint Paul Planning Commission. ��3 r� � � °!�-y�is Phalen Village pilot Project Application February 21, 1996 Page 9 The task force began its work by identifying desirable characteristics they wished to achieve in the area; these character9stics became "Community Goals for an Urban Viliage" and are very much in keeping with the Principles for Livable, Compact Aevelopment. They conducted a design workshop to develop alternatives for turning their goals into physical reallry, and worked with City and University of Minnesota design professionais to develop plans and drawings of their proposals. The Phalen Village Plan, which has been adopted by the City Council as an element of the City Comprehensive Plan, calls for crea6on of a special design district to ensure impiementation of the plan's design goals. Saint Paul legislators, who have been a key partners and supporters of the planning process, have responded by passing enabling legislation for City creation of special design disuicts. These relationships and concepts, developed during tkae planning process, are now paying off in initial implementation phases. INTEGRATION OF LAND USES AND SYSTEMS Land use, transit and public infrastructure integration. The project will develop a neighborhood supermarket as the anchor of a mixed-use neighborhood commercial core along ffie neighborhood bus route and planned routes for LRT and express bus service. This mixed-use core akeady includes two neighborhood banks, a new neighborhood health clinic (just being completed), several smalier stores, and a number of apartrnent buildings. New/realigned streets and a wetiand pazklpublic open space system wiil provide the framework for development of the Phalen Village mixed-use commercial core, and a signature amenity that links Phalen Village with Phalen Park, enhances sunounding property values and helps attract quality commercial and residential development. Innovativelprototypical. The project is an innovative way of addressing the problem of a sprawling, obsolete auto-oriented commercial center for which a market does not now exist. It wili create a more compact neighborhood commercial area along existing and proposed public transit investments. It will transform vast eapanses of unused asphalt and the largely vacant shopping center from a blighting influence on the area into a neighborhood signature naturai amenity. It wiil demonstrate how such a public infrastructure investment can reverse declining tax base and heip attract higher value housing and private sector investments. Model for repiication. The project is a model for addressing the problem of an obsolete auto-oriented commercial center for which a market does not now exist, and F ' r�1 °I7-y�15 Phalen Village Pilot Project Application February 21, 1996 Page 10 for collaborative development of a compact, mixed-use, more pedestrian- and transit- oriented neighborhood commercial area, in size and offeririg services commensurate with market demand. It is also a model for restoring an environmental resource as a signature amenity to enhance ffie vaIue of sunounding properiy, create a framework for new development, and to help attract quality private commercial and higher-value residential development into a lower-income area. Linkages to employment. This project is part of a comprehensive master plan for the azea that is designed to improve access to transit in the azea, encourage/accommodate public investments in transit to connect the area (which is an urban neighborhood wiffi a very high concentration of low-income housing) with suburban communities and employment growth areas, and to encourage private commercial development along uansit and other private development along a new road that provides project area residents expanded oppornmities for grivate sector employment. III. PROJECT TEAM AND PARTNERSHII'S Participants. The acquisition of the shopping center site will be done by the Ciry of Saint Paul, with the Department of Public Works taking major responsibility for parcels designated for wetland constructiori and sueet realignments. Developable parcels wiil either be tro private developers immediately or held by the HRA for to developers. The commercial development will be caried out by a priv possibly with participation by North East Neighborhoods Development Corporation. Type and nature of partnerships. The Phalen Village planning process, the first phase of the new neighborhood commercial core, and the first phase of the Phalen Wetland Restoration Project have already created new partnerships among the City, the State, the watershed district, neighborhood residents, neighborhood businesses, the University of Minnesota, developers, and environmental groups. They have Ied to new community-building social infrastructure. New organizations, the Phalen Village Business Association and the North East Neighborhoods Development Corporation, are now key partners in implementing the plan. Phase one of the new commercial core, the new corner drug store and new health clinic, are privately funded developments done as a direct result of neighborhood- based pianning and support, and the City's ability to respond quickly with the street realignment project to provide needed access. The first phase of the Phalen Wetland Restoration Project (in the area between Maryland and the south end of Lake Phalen) is a cooperative effort by the City, state agencies, the Ramsey-Washington Metro A- 10 iY i Phalen Village Pilot Project Application February 21, 1996 Page 11 � • �� S Watershed District, neighborhood groups, and the University of Minnesota. It has funding from the City, the State (LCMR and RIM), and the Minnesota Waterfowl Association. This project will strengthen and build on these partnerships, and will leverage a number of public and private funding sources. � FINANCIAL SIJMmARIES See Attachments A and B. v CONTRIBUTION OF FUNDING TO A LNABLE COMMUNITY There are several features which Demonsuation Account funding would provide which would not otherwise occur. FirsC, timing is critical for the Phalen Village plan to be successfuliy implemented. Ttus funding would enable the city to begin actions to acquire the'shopping center site this summer, when its receivership period terminates, and before some other disposition of the property can occur. This is a unique opportunity to move the redevelopment forward which wiil not come again. Second, Demonstration Account funding will enable the city to quickly leverage other private and public resources to enable the activities described in this progosal to be fully funded. The other funds described will follow a significant initial commitment of funds, and may in some cases be contingent on receiving the Demonstration Account funding. In addition, because ttus funding may be used for acquisit'ion, it also will help to ensure that environmental, transportation, and housing resources become available for construction in subsequent phases of the redevelopment. Third, these resources will enable the city to pursue both the shopping center acquisition and the grocery store relocation concunently. Absent this funding, the city wiil continue to pursue both, but one or the other comgonent would have to be deferred, and it is di�cult to defer either. The shopping center's availability in the future is unlikely, and failure to promptly replace the grocery store when it closes decreases the likelihood that it will be replaced as shoppers develop other patterns. Finally, Demonstration Account funding will make a significant contribution to reviving neighborhood confidence and pride. These attitudes have tangible economic consequences: willingness to shop in the neighborhood, wiilingness to buy a home nearby (or invest in improvements, or not sell), willingness to locate a business in the A- 11 ,�� 9't -4'! 5 Phalen Village Pilot Project Application February 21, 1996 Page I2 area. Prompt, large scale successful redevelopment efforts in the azea will produce marked changes in the economy of the area, and these spinoff effects may not occure to a significant extent but for an investment like this in Phalen Village. VI. CURRENT ACTIVITIES, PROPOSED PROCESS Phase one of the of the commercial core is nearing completion. Projects included in this phase include: - The new Walgreens drugstore at the comez of Maryland and Prosperity opened in November, and is wildly successful, doing a great deal more business than the developer anticipated. - The new HealthEast clinic is nearing completion, with occupancy projected for April. - The realignment of Prosperity Avenue between Maryland and Itose is expected to be completed in March. The timing is right for a neighborhood supermarket to build on these success. The exisdng supermarket in the shopping center, which does not fit this market niche, wiil soon close. A smaller supezmarket which fits this niche is of critical importance to the neighborhood, and particulazly to low-income residents who dan't have good access to other supermarkets. Phalen Shopping Center is now in receivership, and will be on the market in June, 1996. The timing is right to acquire the center and begin development of ihe wetland parkJpublic open space system that will be a framework for Phalen Village redevelogment and a linchpin for integrated activity to create a livable community. VII. PROJECT SCHEDULE See Attachment C. VIII. LOCAL GOVERNMEI�TT SUPPORT See attached letter of support from the Mayor. A-12 � g'l • �,'1 S Llvabie Communities Demonstratior+ Account {LCDA} Pilot Praject Application ATTACHMENT A SUMMARY FINANClAL 1MFORMATION 1. Tote! Pfojec! Cost Tata! Soft Cost -Tota[ Harc1 Cos! Pubiic 2,soo,aoo :� �� ' 2,520,000 Private • 2,080,000 208,000 1,872,000 . :�� :� »� 720,000 2 What uso(s) are you propoaing for Demonstration Aacou[rt funds? Site assembly and preparation for Phalen Village wetland restoration project, phase 2; and Phalen V ill ag e c redevelopment projecc, phase 2. 3. Are you requeating a laen or a grant7 Grant d. Whst2 is tho ¢tatus a� finanaisl oommittmerrta for this pro}ect? Funding foz phase 1 of both the wedand restoratioa and commercial redevelopment projects is in place. Funding for phase Z of both components is pending or will be submitted in the near furure. �. 1Mhen w81 you neea Demonstration Accourn ivnds7 Iune, 1996 LCCJAApP! ATA � i _ _� __...._ . ____.� r�3 � , � � < � r+� �� CO a � M U a � � _ ;� �� <� G � �.r', " � u u y � V S S oQ 0 0 0 0 �f N Vi O n `ti W a � � �C u a�'� � O C U ��in'ic.>w� o g $o g ° o $ c � h �V r' � N � O O � q O O � � a , 4 � � L � � C "C ^ ca � C a �� o � 0 . •- = � y u 'G v G�� r. :A C A n, > n cr ^ a' �� N v y G t..1' aQ u A-14 L d N � � u . > R� O � G� a. a? 000 N � � ^ N 0 0 0 0 � T � C � C � .� a u u a }, � O L U N y � � u � U ° � ° o 0 ° o � o 0 o W N � O t- � , . ., •� �9�-y�5 � .� � � � E u Z p( � w � � � � � � � 8 � .� � .r � � , M L �� P s � �� N� 4 ^ � �' B : Q� ��! , n lA1.t31'1CC11 �, ; � P OJECT SCHEDULE � � . 199 149 Shopping center redevelopmend wetland restoraCion - Acquisition - Dearolition! site preparation - Designl engineering - Wetland restoration Grocery store! commercial redevelopment - Site assembly - Construction IS A - 15. _._ / P�} �! � 9? - �1'15 ATTACHIV�NT B Ce17� `�Y �i�U�13rJ�7it�3�`►M�':+L r�171�� The total grant amount specified in paragraph 2.01 of ttns agreement shall be disbursed to the Grantee for uses consistent with this agreement acr,ording to the following schedule: The Council will disburse grant funds in response to written disbursement requests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the developmem activity funded by this agreement, the contractor(s)Ivendor(s) to be paid, and the time period within which the development activity was or will be performed. Disbursements prior to the perfonnance of a development activity will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Gramee. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. Subject to verification of a written disbursement request and approval for consistency with this agreement, the Council will disburse a requested amoum to the Grantee within two (2) weeks after receipt of a written disbursement request. � C'—y'�e ��_�� Grant No. SG-96-59 METROPOLITAN LIVABLE COMI4IITNl[TIES ACT LIVABLE COMMU1�iITIES DEMONSTRATION ACC(3UNT GRANT AGREEMENT 1'HIS GRt1NT AGREEMEPiT is made and entered into by the Metrogolitan Councii ("Council") and the Ciry of Saint Paul ("Crrantee"). WHERF.AS, Ivfinnesota Statutes section 473.251 creates the Metropolitan Livable Communiries Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Development Guide adopted by the Council; and � WHEREAS, Minnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan Livable Communities Fund a Livabie Communities Demonstration Account and require the Council to use the funds in the account to make grants or loans to municipalities padicigating in the Local Housing Incentives Program under Minnesota Statutes section 473.254 or to metropolitan-area counties to fund the initiatives specified in Minnesota Statutes section 473.25, paragaph (b), in participating municipalities; and WHEREAS, the Grantee is a"municipality" participating in the Local Fiousing Incentives Account program under Minnesota Statutes section 473.254 or a metropolitan-area county and submitted a pilot project application for Livable Communities Demonstration Account funds in response to the Council's request for pilot project applications; and WHEREAS, at its March 14, 1946 regulaz meeting, the Council awazded Livable Communities Demonstration Account grant funds to fow pilot projects, including the pilot project described in the Grantee's pilot project appiication for Livabie Communities Demonstration Account £unds. NOW THEREFORE, in consideration of the mutuai promises and covenants contained in this agreement, the Crrantee and the Council agree as foliows: I. DEFINTTIONS 1.01 Definition of Terms. For the purgoses of this agreement, the terms defined in this pazagraph have the meanings given them in this pazagraph unless otherwise provided or indicated by the conteart. (a} `it�feiropolitcm tlrea" means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. {b) `il�tunicipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Ivfinnesota Statutes section 473.254, or a county in the Metropolitan Area. Page I of 5 Pages �_u�5 (c) `ParticipatingMunicipality" means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account progam and negotiated affordable and life-cycle housing goals for the Municipality pursuant to IvHnnesota Statutes section 473.254. II, GRANT FUNDS 2.01 Tota! Grant Amount The CouncIl will grant to the Grantee a total sum of $650,000.00 which shall be funds from the Livable Communities Demonstration Account of the Metropolitan Livable Communities Fund. Notwithstanding any other provision of this agreement, the Grantee understands and agrees that any reduction or termination of Livable Communities Demonstration Account grant funds made available to the Council may resuit in a like reduction to the Grantee. 2.02 Authorized Use of Grant Funds. The totat grant amount made available to the Grantee under this agreement shall be used only for the putposes and activities described in the Grantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised by the Cnantee to reflect the grant award made by the Council. A copy of the Grantes's revised application which identifies eligibie uses of the grant funds is attached to and incorporated into this ageement as Attachment A. If the provisions of the Grantee's application ue inconsistent with other provisions of this agreement, the other provisions of this agreement shall take precedence over ihe provisions of the application. Grant funds must be used to fund the uutiatives specified in Minnesota Statutes section 473.25, paragraph (b), in a Participating Municipality. Cnant funds must be used for costs directly associated with the specific proposed activities and ue intended to be used for "hard costs" rather than "soft costs" such as: administrative overhead; activities prior to the start of the grant project; travel expenses; legal fees; pemvts, ]icenses or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. The Council shall bear no responsibility for cost overruns which may be incuned by the Grantee or others in the implementation or performance of the project activities described in Attachtnent A. The Grantee agrees to remit to the Council in a prompt manner, any unspent grant funds and any grant funds wttich are not used for the authorized purposes specified in this paragraph. 2.03 Budget Variance. A variance of ten percent (10%) in the amounts allocated to various eligible uses identified in Attachment A shall be considered acceptable without further documentation or Council approval. Budget variances exceeding ten percent (10%) may require approval of the governing bady of the Metropolitan Councii. Notwithstanding the aggregate or net effect of any variances, the Council's obligation to provide grant funds under this agreement shall not exceed the maximum grant amount specified in paragraph 2.01 of this agreement. 2.04 Disbarsement Schedule. The Council will disburse the grant funds to the Grantee in accordance with the grant fund disbursement schedule contained in Attachment B, which is incorporated into and made a part of this agreement. The Council wiii make disbursements only upon receipt of a written disbursement request from the Grantee's authorized agent or representative. 2.05 Interest Earnings. If the Csrantee earns any interest or other income from the grant funds received from the Council under tivs agreement, the Grantee will use the interest earnings or income only for the purposes of implementing the project activities described in Attachment A. Page 2 of S Pages a�-`� S 2.06 Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the project site nor imposes any obligation on the Council to participate in any pollution cieanup of the project site if such cleanup is undertaken ar required. III. ACCOU1�iTI1�iG, AUDTT AND REPORT REQIIIREMENTS 3.01 Accounting and Records. The Grantee agrees to establish and maintain accurate and complete accounts and records relating to the receipt and e�enditure of all grant funds received from the Council. Notwithstanding the expiration and termination provisions of paragraphs 4.01 and 4.Q2, such accounts and records shall be kept and maintained by the Grantee for a period of three (3) years following the completion of the project activities described in Attachment A or three (3) years following the expenditure of the grant funds, whichever occurs earlier. For all expenditures of grant funds received gursuant to this agreement, the Grantee will keep proper financial records including invoices, conuacts, receipts, vouchers and other appropriate documents sufficient to evidence in proper detail the nature and prfipriety of the expenditure. Accounting methods shall be in accordance with generally accepted accounting principles. 3.02 Andits. The above accounts and records of the Grantee shall be audited in the same manner as ail other accounts and records of the Grantee aze audited and may be audited or inspected on the Cnantee's premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Crrantee, for a period of three {3) years following the completion of the project activities described in Attachment A or three (3} years following the expenditure of the gant funds, whichever occurs earlier. 3.03 Report Requirements. The Grantee wili provide to the Council one or more written reports which report on the status of the pro}ect activities described in Attachment A and the expenditures of the grant funds. The reporting schedule and the content of the written report(s) are identified in Attachment C, which is incorporated into and made a part of this agreement. 3.Q4 Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be carried out, if such environmental assessment or review is appropriate for the scope and nature of the praject activities funded by this grant, and that any environmental issues have been or will be adequately addressed. N. AGREEMENT TERM 4.01 Term. This agreement is effective upon execution of the agreement by the Council. Unless terminated pursuant to paragraph 4.02, this agreemem will expire upon compietion of the project acti�ities described in Attachment A or foilowing the expenditure of all grant funds by the Grantee, whichever occurs earlier. 4A2 Termination. This agreement may be terminated by the Council for cause at any time upon fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of this agreement and any amendments of this agreement. If this agreement is terminated, the Csrantee shall receive payment on a pro rata basis for project activities described in Attachment A that have been completed. Ternvnation of this agreement does not alter the Council's authority to recover grant funds on the basis of a later audit or other review, and does not alter the Gtantee's obiigation to return any grant funds due to the Council as a result of later audits or corrections. If the Council Page 3 of S Pages � tiUIS determines the Crrantee has failed to comply with the terms and conditions of this agreement and the applicable provisions o£the Metropolitan Livable Communities Act, the Council may take any action to protect the Council's interests and may refuse to disburse additionai grant funds and may require the Grantee to return all or part of the grant funds already disbursed. 4.03 Amendments. The Council and the Grantee may amend this agreement by mutual agreement. Amendments, changes or modifications of tlus agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. V. GENERAL PROVISIONS 5.01 Equal Opportuniry. The Grantee agrees it will not discrinunate against any emplayee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to gublic assistance, membership or activity in a local civil rights commission, disabflity, sexual orientarion or age and take affirmative action to insure app]icants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.02 ConIIict of Interest. The members, officers and empioyees of the Grantee shall comply with ali applicable state statutory and regulatory conflict of interest laws and provisions. 5.03 Liability. To the fullest eatent pernutted by law, the Grantee sha11 defend, indemnify and hold harmSess the Council and its members, empioyees and agents from and against all ciaims, damages, losses and expenses, including but not limited to attomeys' fees, arising out of or resulting from the conduct or implementation of the project activities funded by this grant. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1480 (CERCLA) as amended, 42 U.S.C. sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, 42 U.S.C. sections 6901 et seq. This obligation shall not be constcued to negate, abridge or otherwise reduce any other right or obligation of indemnity which otherwise would e�st between the Council and the Crrantee. The provisions of this paragraph shall survive the ternunation of this agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 466, or other applicabie state or federal law. 5.04 Acknowiedgments. The Grantee shall acknowledge the financial assistance provided by the Council and the State of Minnesota in promotional materials, press releases, reports and publicarions relating to the project activities described in Attachment A which are funded in whole or in part with the grant funds. The acknowledgment should cornain the following, or similar, language: This project was financed in part with a granf from the Metropolitcm Council thraugh the Livable Communities Demorutration Account of the Metropotitan Livable Communities Fund. 5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state or federa] licenses, pemuts, bonds, authorizations or approvais necessary to perform or complete the pro}ect activities described in Attachment A. Page 4 of 5 Pages a��`�� 5.06 Contractors and Subcontractors. The Grantee shall include in any cornract or subcontract for project activities appropriate co�ract provisions to ensure contractor and subcomractor compliance with all applicable state and federal laws. Along with such provisions, the Crrantee shall require tbat contractors and subcontractors perfornung work covered by this grant comply with all applicable state and federai Occugationai Safety and Heaith Act regulations. 5.07 Attachments. The following are attached to ttus agreement and are incorporated into and made a part of this agreemern: (a) Attachment A- Grantee's pilot project application for Livable Communities Demonstration Accowrt grant funds, as revised to reIlect the Council's grant award (b) Attachment B- Grant Fund Disbursement Schedule (c) Attachment C- Written Report Submission Schedule 5.08 Warranty of Legal Capaciiy. The individuai signing this agreement on behatf of the Grantee represents and wanants on the Grantee's behalf that the individual is duly authorized to execute this agreement on the Grantee's behalf and that this agreement constitutes the Grantee's valid, binding and enforceable agreements. IN WIT'NESS WHEREOF, the Grantee and the Council have caused this agreement to be executed by their duly authorized representatives. This agreement is effective on the date of final execution by the Council. Approved as to forrn: Assistant General Counsel METROPOLTTAN COUNCII. By James J. Solem, Regional Administrator Date CTTY OF SAINT PAUL � Date � Norm Coleman, Mayor Martha Larsoq Director of Finance and Management Senrices Date MC 1]N6 LCAOEM�3 Page 5 af S Pages � �,�� ATTACHbIENT A APPLICATION FOR LIVABLE COMMITNTl'IES DEMONSTRATIOIV ACCOUNT GRANT P'UNDS This attachment comprises pages A-1 through A IS and incorporate the Grantee's pilot project application for Livable Communities Demonstration Account grant funds wtuch was submitted in response to the Council's request for Livable Communities Demonstration Account pilot pro}ect applications, subject to the following revisions which reflect the actual grant amount awarded to the Grantee: The "LCDA" portion of the "Total Project Cost" identified at page A-13 is $650,000 nther than $800,000. Page A-14 is revised to reflect the following "LCDA Funds" amounts for the following project activities: Shopping center redevelopmentl wetland restoration - Acquisition - DemolitionlSite prepazation - Design/ engineering Subtotal Grocery store! commercial redevelopment - Site assembly - Construction Subtotal TOTAL $ SSO,OQO $ 0 $ Q $ 550,000 $ 100,000 $ 0 $ 100,000 $ 650,000 Metropolitan Livable Communities Act DEMONSTRATION ACCOUNT � �� a PI3AL�N VILLAGE PILOT PR4JECT APPLICA.TION Saint Paui I. II. GENERA.L INFQRMATION February 21, I996 Pro,yect Contact Persons: Dave Gontarek Address: 1300 City Hall Annex Saint Paul, MN 55102 Phone: 266-6674 FAX: 228-3220 GENERAI. PROJECT INFORMATION HISTORY Allan Torstenson 1100 City Hall Annex Saint Paul, MN 55102 2b6-6579 228-3314 Phalen Village is located approximately three miles northeast of downtown Saint Paul, just southeast of Lake Pbalen and east of 7ohnson Parkway. The principal features of the area are weli-maintained, tree-lined residential blocks; Lake Phalen; and Phalen Regional Park. 'The center of the neighborhood is marked by lazge expanses of empty pavement, superblocks of walk-up apartments and automobile-ociented strip malls. and recreation zesource. Phalen Village lies along an old river valley of the St. Croix River, which flowed south from Lake Phalen to the Mississippi River. During the last glaciation,'gravels and soils were deposited in the valley, and large chunks of ice were left in low areas, forming L.ake Phalen and the Phalen Chain of Lakes to the north. The Glaciers left a landscape of rolling, well-drained land dotted with lakes, ponds, and wetlands that remained on poorly-drained soils deposited in low areas. This series of ponds and wetlands detains and cleans stormwater, provides fish and wiidlife habitat, is a major flyway for mignting waterfowl and songbirds, and is a significant urban open space Since about 1$50 and settiement by Europeans, the Phalen Village area has undergone substantiai change. Development of the railroad just east of I.ake Phalen in the later part of the nineteenth century began to cut what is now the center of Phalen Village aff from natural amenities, especialiy when the railroad was put on a berm to create a levei grade across the old valley. Most of the residential development in Phalen Village took place in the 1450s. The last remaining large tract of vacant land in the A-1 r ,�� Phalen Viliage Piloc Pro,}ecc Application �� February 21, 1946 Page 2 1886 PFIALEN VII,LAGE AREA PLAT MAP • � � � •� �L�. .' H3l..i/.. � , � .' . � �)0 n.. 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N.f /:..i.1. � •; � � � ? � ^ �� E N 3 � i n _�___ _C. - - ---- - - -. . .._� _ �,; ._ ._,.. �, . _ . . I _ � - I _- --- �"'— I�. , 1� • k•ya _ :;,, , (L d__ L' • . A-2 Phalen �illage Pilo[ Project Application February 21, 1996 Page 3 �� area, previously undeveIoped because it contained Ames Lake, wetlands, and poorly- drained soils, was filied in and paved over for development of Phalen Center and other commercial development around 1960. This created a significant gap in the natural corridor and substantiaily cut off Phalen Village from the area's natural systems and natural amenities. Phalen Park, Johnson Parkway, and the natural iandscapes are important enhancers of property value and community stability in the Phalen Village area. The center of the area, however, has turned its back on these natural amenides. It is designed more for cars than people, and is cut off from these sources of stability and value. Phalen Center was built as a large auto-oriented shopping center in 1960, when Highway 212 was expected to be routed nearby. The highway was never built and the Phalen Village commerciai area cannot now compete with nearby commercial areas, such as Sun Ray Shopping Center and Mapiewood Mall, that have major highway access. Because it was designed and built for a larger market than now exists, the Phalen Viilage commercial area has a significant amount of vacant and underutilized space, large expanses of unused asphalt, and a negative image. Because it Ss uninviting and appears unsuccessful, the commercial area is not even capturing much of the neighborhood market. Immediately surrounding the Phalen Village commercial area are a couple thousand low-income apartments in large, 2 and 1i2-story waikup complexes, many of which are poor qualiry, poorly maintained, and have significant vacancies. It is an azea currently undergoing substantial change, and the future is uncertain. Single-family homes in the area are be�inning to turn over fairly quickly, partly due to aging households but also because even long-tune residents are losing faith in the aiea. Cut off from natural amenities and without the commercial market anticipated when the area was fust developed, the combined value of all commerciai and residential property in the Phalen Village area declined 34.8% between 1985 and 1994 (using estimated property values from the Ramsey County Assessors Office and constant dollars based of the Consumer Price Index for the Minneagolis-Saint Paul region). Within this decline, the value of single-family residential property declined 10.1%, and the value of multipte-family residential property declined 41.8%. Commercial property values in the area as a whole declined 33%. Within this, the value of cammercial property along Maryland was more stable, declining by only 18.6%. The value of commercial property without fronta�e on Maryland declined 39.1%. A-3 Phalen Village Pilot Project Application February 21, 1996 Page 4 PHALEN VII.LAGE CONCEPT POLICY MAP � , LAKE � PHALEN , � � .' � � I RESTORE ' w�tallo � a REMOVE ` � BERM � � INCREASE HOUSING QUAIfTY AND DNER5l1Y � tMPROVE7R,4N51TANDPEDESlRIANAMENI71E5 FUNRE � iR7 AT-GRADE� i t \ � `Sf � I la / �� 1' a / W / x c � w I° � q � P, 1� AEA �� RESTORE AMES LAKE AND NATURAL AMENITfES TO ENHANCE PROPERT'! VAlUES AND CONNECT � W17H PHALEN PARK � �� r J� j` 2 �e �� ¢� a MARYLAND AVENIlE� DE ION, fiON, At10 � � INtREASE HOU5ING DiVERSiTY, tMPRaVE NOVSlNG MAINTENANGE, At3D R£DUCE CONCENSRATION OF POOR QUAUTY, lOW-INCOME HOUSING s Phalen Village Pilot Project Application February 21, 1996 Page 5 �� A neighborhood task force was estabiished in 1991 at the request of the District 2 Community Council to recommend strategies to: 1) improve the declining commercial area; 2j improve deteriorated apartment complexes in the area; 3) improve tra�c circula[ion, safery and access; and 4) address land use, zoning and related issues in the area. The group developed the Phalen Village Smail Area Plan, which has been adopted by the Saint Paul City Council as an element of the City Comprehensive Plan, to uansfoim the area from a blighting influence harmful to properry values into a safe, stable, attractive coznmunity center that meets neighborhood needs and is an asset to the overall area. The Phalen Village Plan recommends a package of bold, interrelated objectives: create an urban village with a mix of housing options and a commercial market reconstituted both geographically and in terms of market; create a stronger connection to Lake Phalen and the naturai landscape, with a wetland park and pubtic open space system that provides neighborhood amenity and identity; impzove access to transit, jobs and job training; and improve the physical development pattern of the area to facilitate interaction among residents, increase personai safery and help control crime. PROJECT DESCRII'T`ION, PURPOSE AND OBJECTIVES Description. This project is the linchpin of a comprehensive plan for transforming an alienating and rapidly declining neighborhood into a livable community. Phasing of this long-range plan must have a logical sequence and also capitalize on strategic opportunities. Implementation of the plan to best apply the principles for livabie, compact development is at a critical point, and the timing is right to take advantage of strategic opportunities to create the wetland park neighborhood signature amenity and establish the neighborhood supermarket anchor of a more compact, transit- and pedestrian-oriented commercial core. This project is to transform part of an obsolete, largely vacant auto-oriented shopping center parcel (now a blighting influence on the surrounding area) into about 9 acres of quality weUand and a public.open space system that becomes a neighborhood signature amenity. Restoring Ames Lake, a currently buried environmental resource, will link PhaIen Viilage to its primary asset, Phalen Park. It wi11 enhance the value of surrounding property; create a framework for development of a more compact, mixed-use, pedestrian- and transit-oriented neighbarhood commercial core; and help to attract quality private commercial and higher-value residential development into a declining, lower-income area. A-5 Phalen Village Pilot Project Application February 21, 1996 Pa�e 6 PHALEN VILLAGE CONCEPTUAL PLAN a o�� a ❑ QO Q o : ^.a d (� g'a �� >� �� '� 0 � r. � u � D 17°�L17� ��SQd� CQ❑ a p ° t, ° a °a k:a . n {''`-� � � ? L.r-..J o � � � ', a a . � � •; a a �: Q �.�,.i.,, ;O� .. .---- i s;'• i �c�. �.:Pr o p p Q� o �, ;�. .:�i �, �, ❑ o � � �� Q A p� j �Q n p� +`, i } t t o �� e; ❑ 1 Pro�P�dt7 H W1 • `'� : I � Q � � n{ --� } [ p ° o } "e�.m.ns.n n ei Qp .?; `F o ; [ n Q ,*� � �Q o❑ ) f ' ',O � LJ I o. �000+�{{� � �y tr (-� o S�� o �, o o.,, [fl` '[� � }`a ' ; a ° t a jE� ❑ Q 1 f o g oa ° ° Q�� %r'C]a ° o 0 o f[} � F] � Q 0 i �� o p �� ,'' t Q� a ��:� � � � o �.;:� ° �' ❑ d [o �o?�� '� Q o 1 � � �{ {} � o r, 6 •�` � o ° a ., p p+ ••jo % 7 �n Oo y a no rs�►w� �. .. � � � � � G � �i\ Y / ,° �a: � � °�` , : 7 �`� -- .� i . - FAn9nalla �e�� a a `�� ❑ �� a _ a a / �1 �,, ��.� �. ��' � -'?�i�i�^`a"tw -; � � � 1 , • l� �i �- � ♦ /"* ��' '.�.�• � • ij� � ♦ � � . �� ''. � ,dm �• : 2�� %i-'Y;�- ` ' , • ,. ,. \,�,/✓'�u�l�(b� . • �� II II�� • � .• .. .: r � .' ` � rr' i. r •. M• . .� •• � r ��.� , � t;� � � ` � l�� ..�.__� �. , s..:.. ...;_.:� -'- _ � � �� --_..__.._ � ... `� �� '� '� I � �� i � : S�Y+li: ►^CCS'7 �CM3�• �� • f �1...-_'.c. _ ' (' � . �y�� ' ' ,� ° < '"�:{;;ti:!.t s * � �" , ��` S"-x l�' � , I ' � , ��, � ., � , r . � •� � � Phalen Village Pilot Project Application February 21, 1996 Page 7 ��J�n� This project is also to develop a neighborhood supermarket and related mixed commercial and office uses (about 30,000 total square feet) near transit stops along Maryland Avenue at Prosperity and Clarence. A supermarket is critical to meeting neighbarhood shopping needs, and is a key second phase of development of the new transit-oriented neighborhood hub. The existing supermarket in the shopping center, which does not fit this mazket niche and is poorly located, will soon close. The first phase of the neighborhood hub, which included realignment of a street to create a new couunerciai corner at Prosperity and Maryland, and development of a corner drug store and a neighborhood family health clinic at the new intersection, will be completed in early 1996. Characteristics of the proposed redevelopment include: Miated land uses. The new supermarket is essential to the daily life of area residents. Its location near transit stops along Maryland is especially important to hundreds of nearby residents who live in apartment buiidings near Maryland because they depend on bus service. It is near a variety of existing housing and shops, as well as to heaith and education facilities, and the plan for the area encourages development of• additional shops and civic facilities for which this project will be a catalyst. Pedestrian orzentation. With vast expanses of asphalt, the project area is currently an alienating and uninviting place, and is a difficult and dangerous place for pedestrians. Bus stops are a quarter mile or more Prom most stores, across Iazge parking lots and busy streeis where there are no signalized crosswalks. This project wi11 create a compact neighborhood commercial area with stores within easy walking distance of each other and of transit stops. Streets designed for both people and cars. New and realigned screets wi11 have both sidewalks and bike lanes. Two new signalized intersections will be added to create a street system that is safer and more understandable for both drivers and pedestrians. Shelters will be added for bus stops at the new Prosperity-Maryland intersection. The new supermarket will be oriented to Mazyland for convenient pedestrian and transit accessibility, and will aiso have convenient parking. Pedestrian and bike paths in the pubiic open space system will interconnect the commercial core, neighborhood housing, transit stops, and Phalen Regionai Park. A central place. The Phalen Village commercial core, with a neighborhood supermarket, corner drug store, banks, health clinic, and restaurancs all clustered together along Maryland Avenue, the area's main street, is designed to function as a neighborhood center and help to create a sense of place. This project will be a catalyst for development of additional education, recreation, health and community A-7 Phalen Village Pilot Project Application February 21, 1996 Page 8 � � ti�.�. � �� services as part of the core. A market plaza will create a central pubiic glace in the commercial area, a neighborhood focal point that wili be highly visible from Phalen Boulevard and a gathering place for neighborhood activities such as a farmers market (the area is home to many active gardeners and farmers market users, including a large Hmong population). The mazket plaza will overlook the neighborhood signature amenity wefland park, and provide an active Iink between the commercial area and the more passive wefland park. Variety of housing types and jobs. A primary goal of the Phalen Village Plan is to create desirable, well-maintained housing that supports stable, long-term resideney with a mix of housing types, price ranges and ownership options to meet the needs of a wide spectrum of ages, incomes, family types and househoid sizes. The area now has a very high concentration of low-income housing. This project wiIl help to attract higher value residential development that adds to the diversity of housing types, price ranges and ownership options in the area by creating neighborhood signature amenity that links Phalen Village to Phalen Park and enhances the value of surrounding property. It will provide expanded opportunities for private sector employment in the area, and be a catalyst for improved access to employment growth areas. Variety of public open spaces. The restored Ames Lake wetiand pazk will be a neighborhood signature amenity that links Phalen Village with Phalen Park; inciudes pedestrian and bike paths that interconnect the commercial core, neighborhood housing transit stops, and Phalen Regional Park; and provides for fairly passive uses. The Phalen Village market plaza will be a central communiry gathering place, provide for such uses as a farmers market which wi11 bring together people from all parts of the communiry, and be a place for neighborhood marketin; and community building. Open space for more active uses, possibly in conjunction with an indooz recreation facility, is planned for the area east of the wetland park. Human scale. The area will be transformed from one that is alienating and uninviting, designed more for cars than for people, into an area that has a more human, pedestrian-oriented scale. Planning process. Cooperative relationships and support for the Phalen Village Plan were developed during a comprehensive four year planning process, which was jointly sponsored by the Saint Paul Planning Commission and ihe District 2 Communiry Council. The plan was developed by a task force made up of area residents, commercial and residentiai property owners, businesspersons, and two members of the Saint Paul Planning Commission. GII? 6 Phalen Village pilot Project Application February 21, 1996 Page 9 � n� �� The task force began its work by identifying desirable chazacteristics they wished to achieve in the area; these characteristics became "Community Goals for an Urban Village" and aze very much in keeping with the Principles for Livable, Compact Development. They conducted a design workshop to develop alternatives for tuming their goals into physical reality, and worked with City and University of Minnesota design proPessionals to develop plans and drawings of their proposals. The Phalen Viilage Plan, which has been adopted by the Ciry Council as an element of the City Comprehensive Plan, calls for creation of a special design district to ensure implementation of the plan's design goals. Saint Paul legisiators, who have been a key partners and supporters of the planning process, have responded by passing enabling legislation for City creation of special design districts. These zelationships and concepu, developed during the planning process, are now paying off in initial unplementation phases. �iVTEGRATION OF LANA USES AND SYSTEMS Land use, transit and public infrastructure integration. The project will develop a neighborhood supermarket as the anchor of a mixed-use neighborhood commercial core along the neighborhood bus route and planned routes for LRT and express bus service. T'his mixed-use core already includes two neighborhood banks, a new neighborhood health clinic (just being completed), several smaller stores, and a number of apartment buildings. New/realigned streets and a wedand parkJpublic open space system wiil provide the framework for development of the Phalen Village mixed-use commerciai core, and a signature amenity that links Phalen Village with Phalen Park, enhances surrounding property values and helps attract quality commercial and residential development. Innovative/prototypical. The project is an innovative way of addressing the problem of a sprawling, obsolete auto-oriented commercial center for which a market does not now exist. It will create a more compact neighborhood commercial azea along existing and proposed public transit investments. It will transform vast expanses of unused asphalt and the largely vacant shopping center from a blighting influence on the area into a neighborhood signature natural amenity. It will demonstrate how such a public infrastructure invesunent can reverse declining tax base and help attract higher vatue housing and private sector investments. Model for replication. The project is a model for addressing the groblem of an obsolete auto-oriented commercial center for which a market does no[ now exist, and A-9 Phalen Village Pi1ot Project Application February 21, 1996 Page 1� {il� ��' �`� for collaborative development of a compact, mixed-use, more pedestrian- and transit- oriented neighborhood commercial azea, in size and offeririg services commensurate with mazket demand. It is also a model for restoring an environmental resource as a signature amenity to enhance the value of surrounding property, create a framework for new development, and to help attract qualiry private commercial and fugher-value residential development into a lower-income area. Linkages to employment. This project is part of a comprehensive master plan for the area that is designed to improve access to transit in the area, encourage/accommodate public investments in uansit to connect the area (which-is an urban neighborhood with a very high concentradon of low-income housing) with suburban communities and employment growth areas, and to encourage private commercial development along transit and other private development along a new road that provides project area residents expanded opportunities for private sector employment. PROJECT TEAM AND PART'NERSHIPS Participants. The acquisition of the shopping center site wili be done by the City of Saint Paul, with the Department of Public Works taking major responsibility for parcels designated for wetland construction and street realignments. Developable parcels will either be tro private developers immediately or held by the HIZA for to developers. The commercial development will be caried out by a priv possibly with participation by North East Neighborhoods Development Corporation. Type and nature of partnerships. The Phalen Village planning process, the first phase of the new neighborhood commercial core, and the �rst phase of ihe Phalen Wetiand Restoration Project have already created new partnerships among the City, the State, the watershed district, neighborhood residents, neighborhood businesses, the University of Minnesota, developers, and environmental groups. They have led to new community-buiiding social infrastructure. New organizations, the Phalen Village Business Association and the North East Neighborhoods Develogment Coiporation, are now key partners in implementing the plan. Phase one of the new commerciai core, the new corner drug store and new health clinic, are privately funded developments done as a direct result of neighborhood- based planning and support, and the City's ability to respond quickiy with the street reatignment project to provide needed access. The first phase of the Fhalen Wetland Restoration Project (in the area between Marytand and the south end of Lake Phalen) is a cooperative effon by the City, scate agencies, the Ramsey-Washington Metro A- 10 � Phalen Viilage Pilot Projec[ Application February 21, 1996 Page 11 IV. V. �'� "`�� Watershed District, neighborhood groups, and the University of Minnesota. It has fund'mg from the City, the State (LCMR and RIM), and the Minnesota Waterfowl Association. This project wi11 strengthen and build on these partnerships, and will leverage a number of public and private funding sources. FINNANCIAL SUMIVIARIES See Attachments A and B. CONTRIBVTTON OF FUNDING TO A LNABLE COMMUNITY There are several featuies which Demonstration Account funding would provide which would not otherwise occur. First, timing is critical for the Phalen Village pian to be successfuliy implemented. This funding would enable the city to begin actions to acquire the shopping center site this summer, when iu receivership period terminates, and before some other disposition of the property can occur. Ttus is a unique opportunity to move the redevelopment forward which wiil not come again. Second, Demonstration Account funding will enable the city to quickly leverage other private and public resources to enable the activaties described in this proposai to be fully funded. The other funds described will foilow a significant initial commitment of funds, and may in some cases be contingent on receiving the Demonstration Account funding. In addition, because this funding may be used for acquisition, it also will help to ensure that environmentat, transportation, and housing resources become available for construction in subsequent phases of the redevelopment. Third, these resources wilt enable the city to pursue both the shopping center acquisition and the grocery store relocation concuaendy. Absent this funding, the city will continue to pursue both, but one or the other component would have to be deferred, and it is difficult to defer either. The shopping center's availabiliky in tbe future is unlikely, and failure to prompily replace the grocery store when it closes decreases the likelihood that it wiil be replaced as shoppers develop other patterns. Finally, Demonsuation Account funding will make a significant contribution to reviving neighborhood confidence and pride. These attitudes have tangibte�economic consequences: willingness to shop in the neighborhood, willingness to buy a home nearby (or invest in improvemen[s, or not sell), willingness to locate a business in the A- 11 q�l -`-�n S Phalen Village Pi1ot Project Appiication February 21, 1996 Page 12 azea. Prompt, lazge scale successful redevelopment efforts in the area will produce mazked changes in the economy of the area, and these spinoff effects may not occure to a significant extent but for an investment like this in Phalen Village. 'VI. CURRENT ACTIVITIES, PROPOSED PROCES5 Phase one of the of the commercial core is nearing compledon. Projecu included in this phase include: - The new Waigreens drugstore at the corner of Maryland and Prosperity opened in November, and is wildly successful, doing a great deal more business than the developer anticipated. - The new HealthEast clinic is nearing completion, with occupancy projected for April. The realignment of Prosperiry Avenue between Maryland and Rose is expected to be completed in March. The timing is right for a neighborhood supermarket to build on ffiese success. The existing supermarket in the shopping center, which does not fit this market niche, will soon close. A smaller supermarket which fits this niche is of critical importance to the neighborhood, and particulariy to low-income residents who don't have good access to other supermarkets. Phalen Shopping Center is now in receivership, and will be on the market in June, 1996. The timing is right to acquire the center and begin development of the wedand park/public open space system that will be a framework for Phalen Village redevelopment and a linchpin for integrated activity to create a livabie community. VII. PT20JECT SCHEDULE See Attachment C. VIII. LOCAL GOVERNMENT SUPPOIiT See attached letter of support from the Mayor. A-12 � �(�}-�� Livable Communities Demonstration Account (4CDA} Pilot Project Application � ATfAGHMENT A 5UNfl1t1ARY FINANClAL INFORMATlUN 1. Tota[ Ptvjact Cost Totat Sott Cast Toiat Hard Cost Public 2,800,0 280,60 ' 2,520,000 Prhtate �:� �� : t�� 1,872,000 2. What uso(s) are you propoalog for Demonstration Aecourd funds7 LCOA :�� :� �� Site aasembly and prepazacion for Phalen Village wecland res[omtion project, ghase 2; and Phalen Viliage commercial redevelopment projecc, phase 2. 3, Are you requesting e loan or a graRt? Grant d, WhM ir tho status at financial aommittmarsta for thi� pro}ect? Funding for phase 1 of both the wefland restoration and commcrcial redevelopment projects is in place. Funding for phase 2 of 6oth componenrs is pendino or wIll be submitted in the near funue• � s. Vdhen wYf you neeC Demorzsvation Accourt funds? June, 1996 i.cnnaaPi �ra A-13 � � � <Q �� m� �� [.� � O ({ �� Qp E'!� � T� a < L � � w U a � 3 � U u � o ° o ° 0 0 ° o o 0 0 0 p p � N � t� K R � � Q 4 � �' � o n. E' � � � V G y � W � � V G��!' V� $ � �� g � Sg N � g �� °? Q N o Y U d w �. O � U . 7 a� � V y � a u u o. u go� g 000� o �� 0 ^+ N N o o o 0 0 0 g o S � ._„ ; : ;:_:. _': `�� ° � � $.:,:, .. �� '�'�:. ��-°000 =� �AE�°- ., .: � •-- _ � � � _°��;��a z�v°� a < �� ¢a" �o ��' o ��u" o �,�a , . , �°:: , , r y .. . .. � �� , �-L� � � � � � ti � � � � � . � � � � s s � .� � r � � M t •� . � s � �� .� : II� A- 14 «:��», � a� -�t�S 199_ 199_ t99, Shopping center redevelopmenU wetland restoration - Acquisition - Demotition/ site preparation - Design/ engineering - Wetland restoration Grocery store/ commercial redevelopment - Site assembly - Construction A - 15. � � ��,N?S ATTACHII�NT B GRANC FUND D7SBURSEMENT SCHEDULE The total grant amount specified in paragraph 2.01 of this agreement shall be disbursed to the Grantee for uses consistent with this agreemeat according to the following schedule: The Council will disburse grant funds in response to written disbursement requests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the development activity funded by this agreement, the contractor(s)/vendor(s) to be paid, and the time period within which the development activity was or will be performed. Disbursements prior to the performance of a development activity will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Grantee. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. Subject to verification of a written disbursement request and approval for consistency with this agreement, the Council will disburse a requested amount to the Grantee within two (2) weeks after receipt of a written disbursement request. TF an di� � . q�-�� ATTACHNIENT C WRITTEN REPORTS AND SUBNIISSION SCHEDiLE Beginning three (3) months after the Grantee initially receives grant funds, the Grantee shall submit to the Councii written quarterly reports which shall contain at least the following elements: A summary of grant funds received and expended to date, including a descripuon of the purposes or uses for which the grant funds were eJCpended; and • A statement of expected grant fund expenditures within the next quarter. The Grantee's final written quarterly report shall be submitted wittrin two (2) months following the expenditure of all grant funds by the Grantee and shall contain a certification by the Grantee's chief financial officer that all grant funds have been eapended in accordance with this agreement and the provisions of the Metropolitan Livable Communities Act. The Grantee also shall complete and submit to the Council a Monitoring and Evaluation Report which will assist the Council in monitoring and evaluating the implementation of the Livable Communities Demonstration Account program. The contents, format and completion date of the Monitoring and Evaluation Report will be deternuned by the Council. AUTHORIZED AGENT The CounciPs authorized agent for the purposes of administering this agreement is Joanne Bazron or another designated Council employee. The written report(s) submitted to the Council shall be directed to the attention of the Council's authorized agent at the following address: Metropolitan Council Meazs Pazk Centre 230 East Fifth Street Saint Paul, Minnesota 55101-1634 � Council File # � � � � Green Sheet # 3�� ('} f°" j r�` ;,_ r�s i : 1�� - � y° . �'�:i�:;.,' � i G Presented By Referred To Committee _ Date WI�EREAS, the City of 5aint Paul has applied for and received a$650,000 grant from the Livable Communiries Demonstration Account of the Metropolitan Livabie Communities Fund for the Phalen Village redevelopment project including reuse of part of the Phalen Center site for restoration of the Ames Lake wetland, creating a public framework fot the Phalen Viilage redevelopment, and a grocery storelcommercial redevelopment project to meet neighborhood shopping and service needs; and 8 WHEREAS, the project is a linchpin for nnplementation of the Phalen Village Plan, which was developed by 9 a neighborhood-based task force and adopted by the City Council in 1995 as part of the Saint Paul 10 Comprehensive Plan; 11 12 BB IT RESOLVED, that proper City officials be authorized to execute and approve, on behalf of the City of 13 Saint Paul, Metropolitan Council Livable Communities Demonstration Account Grant Agreement No. SG- 14 96-59, a copy of said agreement being attached hereto and incorporated herein by reference. Requested by Department of: ■1 Adoption Certi£ied by Council Secretary By: :� Appxoved by yo�� e l l� By: RESOLUTION CITY OF SAINT PAUL, MtNNESOTA a� Approved by AYaypr £or Submi �sion to Councl r By :�`�.__.__.. � �� S � A11an Torstenson ST BE ON COUNCIL AGEN�A BY (DATE) ASAP ��;,�� T J� .\ FOB IGREEN DEPARiMENT DIRE D ' — cmarronNer BUDGET DIRECTOR MAY�R (OR ASSISTANn TOTAL # OF SIGNATUBE PAGES 3 ,(CLIP ALL LOCATIONS POR SIGNATURt7 GRYCAUNqL cm c�aK PIN. & MGi SE wmnwnTe ""°°"'"""" Approval of attached resolution autnorizing proper City o£ficials to e�cecute and appxove Metropolitan Council Livable Communities Demonstration Account GranL Agreement Ito. SG-96-59. Esecution and approval of Metropolitan Council Livable Communities Demonstration Account Grant Agreement No_ SG-96-59 to enable the City to receive a Livable Communities Gr Releet (R) _ PfANNING COMMISSION — CIB COMMfT7EE �_ S7AFF _ DISTFiICTCAURT __ CIVIISERVICEGOMMISSION . SUPPORTS WN1CH COUNGLO&IECTfVE? PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWI�IG QUESTIQNS: t. Has this person/tirm ever worketl under a contract for this tlepartmerlt? F YES NO `". 2. Has this perso�rm ever baen a city employae� �� YES NO 3. Does this persoMirm possess a skill noi normaliy possessed by any?current ciry employee? YES NO Explafn el! yes nnswers on seperafe sheet end attech to green sheet The City has b2en awarded a$650,000 Metropolitan Council Livable Communities Grant for a linchpin project to i.mplement the Phalen Villaqe P1an (developed by a neighborhood task force �nd adopted by the City Council) to use part of the largely vacant Phalen Center site (now a blighting in£luence on the surrounding area) for restoration of the Ames Lake wetland and ROW for a reaiignment of Prosperity Ave., creating a public framework for the Phalen Village redevelopment, and a grocery store/commercial redevelopment project to meet neighborhood shop�ing and service needs. The City would be able to move ahead with a�roject to remove blight and improve property values in the Phalen Village area; to create a neighborhood siqnature open space amenicy; to realign Prosperity Ave. to solve traffic circulation and safety issues, and create a framework £or the Phalen Village commercial area redevelopment; and to restructure the commercial area to better meet the neighborhood market niche and add value to the area, with a grocery storeJcommercial redevelopment project to meet neighborhood needs. �� None i/S#$l�.� @";=�"^':�;'�rin3•. S??9'�E:r7 �ae �'1 4�J�'� IG NOTAPPROVED' R � '-� , �.>� ...�..�...°...�:.,.... �.rl.'}." APR 15 1gg7 �?�YC7P'S <��FfCE The obsolete larqely vacant Phalen Center will continue to be a blighting influence on the area. The e�tisting supermarket in Phalen Center will probably close, meaning loss of a full-service supermarket to 1ow-income residents of the area who don't have good access_to other supermarkets. This opportunity to acquire ROW for realignment o£ Prosperity Ave. at a reasonable cost, and to use it as a catalyst and focus for commerical redevelopment, woul be lost. TOTAL AMOUNT OF TRANSAC710N $ 650 000 COST/REVENUE BUDGE7ED (CIRCLE ONE) FUNUIfdGSOURCE �etYOpolltdri LI.Vd}Jle COIlllttllriltl2S FUn�TIV1TYNUMBER YES NO FINANGIAL INFORMFTION� (EXPtA1N) -. r C ' /JG i� ` �� GrantNo. SG-96-59 METR(?POLITAN LIVABLE COMMI3NT'TIES ACT LIVABLE COMMUNITIES DEMONSTRATTON ACCOUNT GRANT AGREEMENT THIS GRANT AGREEMENT is made and entered into by the Metropolitan Council ("Councii") and the City oF Saint Paut ("Grantee"). WHEREAS, IvTinnesota Statutes section 473.251 creates the Metropolitan Livable Communities Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livabte Gommunities Act and the policies of the Metropolitan Development Guide adopted by the Council; and WHEREAS, Ivlinnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan Livable Communities Fund a Livable Communities Demonstration Account and require the Council to use the funds in the account to make grants or loans to municipalities participating in the Local Housing Incentives Program under Minnesota Statutes section 473.254 or to metropolitan-area counties to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (b}, in participating municipalities; and WHEREAS, the Grantee is a"municipality" participating in the Locai Housing Incentives Account program under Minnesota Statutes section 473.254 or a metropolitan-area county and submitted a pilot project application for Livable Communities Demonstration Account funds in response to the Council's request for pilot project applications; and WHEREAS, at its March 14, 1996 regular meeting, the Councii awarded Livable Communities Demonstration Account grant funds to four pilot projects, including the pi3ot project described in the Crrantee's pilot project application for Livable Communities Demonstration Account funds. NOW THEREFOItE, in consideration of the mutual promises and covenants contained in this agreement, the Grantee and the Council agree as foltows: I. DERINITIONS 1.01 Definition of Terms. For the purposes of this agreement, the terms defined in this pazagraph have the meanings given them in this paragraph unless otherwise provided or indicated by the context. (a) 'ibletropolitan Area" means the seven-county metropolitan azea as defined by Minnesota Statutes section 473.121, subdivision 2. (b) "Municipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254, or a county in the Metropolitan Area. Page 1 of 5 Pages t�' 9�-w�ts (c) "Participafing Municipality" means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account progam and negotiated affordable and life-cycte housing goals for the Municipality pursuant to Minnesota Statutes section 473.254. II. GRANT k'I7NA5 2.01 Total Grant Amount �'he Council will gram to the Gramee a total sum of $650,000.00 which shall be funds from the Livable Communities Demonstration Account of the Ivietropolitan Livable Communities Fund. Notwithstanding any other provision of this agreement, the Grantee understands and agrees that any reduction or ternunation of Livable Communities Damonstration Account grant funds made available to the Council may result in a like reduction to the Grantee. 2.02 Authorized Use of Grant Funds. The total grant amount made available to the Grantee under this agreement shall be used only for the purposes and activities described in the Grantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised by the Grantee to reflect the grant awud made by the Council. A copy of the Grantee's revised application which identifies eligible uses of the grant funds is attached to and incorporated into this agreement as Attachment A. If the provisions of the Grantee's application are inconsistent with ather grovisions of this agreement, the other provisions of this agreement shalt take precedence over the provisions of the application. Grant funds must be used to fund the initiatives specified in Minnesota Statutes section 473.25, paragraph (b), in a PartScipating Municipality. Grant funds must be used for costs directly associated with the specific proposed activifses and are intended to be used for "hard costs" rather than "soft costs" such as: administrative overhead; activities prior to the start of the grant project; uavel expenses; legal fees; pernuts, licenses or authorizatian fees; costs associated with preparing other grant proposals; operating expenses; planning costs, inciuding comprehensive planning costs; and prorated lease and salary costs. The Council shall beaz no responsibility for cost overruns which may be incutred by the Crantee or others in the implementation or performance o£ the pro}ect activities described in Attachment A. The Grantee agrees to remit to the Council in a prompt manner, any unspent grant funds and any grant funds which are not used for the authorized purposes specified in this paragraph. 2.03 Budget Variance. A variance of ten percent (10%) in the amounts a(located to various eligible uses idemified in Attachment A shall be considered acceptable without further documentation or Council approval. Budget variances exceeding ten percent (10%) may require approval of the governing body of the Metropolitan Council. Notwithstanding the aggregate or net effect of any variances, the CounciPs obligation to provide grant funds under this agreement shall not exceed the ma�cimum grant amount specified in paragraph 2.01 of this agreement. 2.d4 Disbursement Schedule. The Council will disburse the grant funds to the Grantee in accordance with the grant fund disbursement schedule contained in Attachment B, which is incoiporated into and made a part of this agreement. The Council will make disbursements only upon receipt of a written disbursement request from the Grantee's authorized agent or representative. 2.d5 Interest Earnings. If the Grantee earns any interest or other income from the grant funds received from the Council under this agreement, the Grantee will use the interest eamings or income only for the purposes of implementing the project activities described in Attachment A. Page 2 of S Pages �t �'1-�1'1S 2.Q6 Effect of Grant� Issuance of this grant neithet implies any Council responsibility for contaminatioq if any, at the project site nor imposes any obiigation on the Council to participate in any pollution cleanup of the project site if such cleanup is undertaken or required. IIL ACCOTTNTING, AUDTT AND REPO�RT REQiJIREMENTS 3.01 AccounYsng and Records. The Grantee agtees to establish and maintain accurate and complete accounts and recorda relating to the receipt and expenditure of all grant funds received from the Council. Notwithstanding the �piration and termination provisions of paragraphs 4.01 and 4.02, such accounts and records shall be kept and maintained by the Grantee for a period of tiuee (3) years following the completion of the project activities described in Attachment A or three (3) years following the eacpenditure of the grant funds, whichever occurs earlier. For all exgenditures of grant funds received pursuant to this agreement, the Grantee wili keep proper financial records including invoices, contracts, receipts, vouchers and other appropriate documents sufficient to evidence in proper detail the nature and propriety of the expenditure. Accounting methods shall be in accordance with generally accepted accounting principles. 3.02 Audits. The above accounts and records of the Grantee shall be audited in the same manner as ali other accounts and records of the Grantee are audited and may be audited or inspected on the Grantee's premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Crrantee, for a period of three (3) years following the completion of the project actavities described in Attachment A or three (3) years following the expenditure of the grant funds, whichever occurs earlier. 3.03 Report Requirements. The Grantee will provide to the Counci3 one or more written reports which report on the status of the project activities described in Attachment A and the expenditures of the grant funds. The reporting schedule and the content of the written report(s) are identified in Attachment C, which is incorporated into and made a part of this agreement. 3.04 Environmental Site Assessmen� The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be camed out, if such environmental assessment or review is appropriate for the scope and nature of the project activities funded hy this grant, and that any environmentai issues have been or wiii be adequately addressed. IV. AGREEMENT TERM 4A1 Term. This agreement is effective upon execution of the agreement by the Councii. IInless terminated pursuant to paragraph 4.02, this agreement will expire upon compietion of the project activities described in Attachment A or following the expenditure of all grant funds by the Crrantee, whichever occurs earlier. 4.02 Termination. This agreement may be temunated by the Council for cause at any time upon fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of this agreement and any amendments of this agreement. If this agreement is ternunated, the Crrantee shall receive payment on a pro rata basis for project activities described in Attachment A that have been compieted. Temunation of this agreement does not alter the Council's authority to recover grant funds on the basis of a later audit or other review, and does not alter the Crrantee's obIigation to return any grant funds due to the Council as a result of later audits or corrections. If the Council Page 3 of .i Pages „ q1-y'is deternunes the Crrantee has £ailed to compiy with the terms and conditions of this agreement and the applicable provisions of the Metropolitan Livable Communities Act, the Council may take any action to protect the Council's interests and may refuse to disburse addirional grant funds and may require the Crrantee to retum all or part of the grant funds already disbursed. 4.03 Amendments. The Council and the Grantee may amend this agreement by mutual agteement. Amendments, changes ar modifications of this agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. V. GENERAL PROVISIONS 5.01 Equai Opportunity. The Grantee agrees it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, znarital staxus, status with regard to public assistance, membership or acfsvity in a local civil rights commission, disability, se�mal orientation or age and take affirmative action to insure appiicants and employees are treated equaily w'rth respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.02 Con�lict of Interest. The members, officers and employees of the Grantee shall comply with ail applicable state statutary and regulatory conflict of interest laws and provisions. 5.03 LiabiIity. To the fuliest extent pernutted by law, the Grantee shali defend, indemnify and hold harmless the Council and its members, empioyees and agents from and against all claims, damages, losses and expenses, including hut not limited to attorneys' fees, arising out of or resulting from the conduct or impiementation of the project activities funded by this grant. Claims included in this indemnification inciude, without limitation, any claims asserted pursuant to the Minnesota Environmentat Response and Liability Act (2vIERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensataon, and Liability Act of 1980 (CERCLA) as amended, 42 U.S.C. sections 9601 et seq., and tke federal Resource Conseroation and Recovery Act of 1916 (RCRA) as amended, 42 U.S.C. sections 6901 et seq. This obligation shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which othenvise would e�st between the Council and the Grantee. The provisions of this paragraph shail survive the termination ofthis agreement. This indemnification shail not be construed as a waiver on the part of either the Crrantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 4b6, or other applicable state or federal law. 5.04 Acknowledgments. The Grantee shall acknowiedge the financial assistance provided by the Council and the State of Minnesota in promotiona3 materials, press releases, reports and publications relating to the project activities described in Attachment A which are funded in whole or in part with the grant funds. The acknowledgment shouid contain the foilowing, or similar, language: This project was�nanced in part wilh a grant from the Metropolitan Council through ihe Livable Communities Demonstration Account of the Metropolita�a Livable Communities Fund. 5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state or federal licenses, pemuts, bonds, authorizations or approvals necessary to perfonn or complete the ptoject activities described in Attachment A. Page 4 of 5 Pages t� Q'�-y'15 5.06 Contractors and Subcontractors. The Grantee shall include in any cantract or subcontract for pro}ect activities appropriate contract provisions to ensure contractor and subcontractor compliance with all applicable state and federal laws. Along with such provisions, the Gtantee shall require that contractors and subcontractors performing work covered by this grant comply with all applicable state and fedual Occupational Safety and FIealth Act regulations. 5.07 Attachments. The foilowing aze attached to this agreement and are incorporated into and made a part of this agreement: , (a) Attachment A- Crrantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised to reflect the Council's grant award (b) Attachment B- Grant Fund Disbursement Schedule (c) Attac}unent C- Written Report Submission Schedule 5.08 Warranty of Legal Capacity. The individual signing this agreement on behalf of the Grantee represents and warrants on the Grantee's behalf that the individual is duly authorized to execute this agreement on the Grantee's behalf and that this agreement constitutes the Crrantee's valid, binding and enforceable agreements. IN WITNESS WHEREOF, the Crrantee and the Council have caused this agreement to be executed by their duly authorized representatives. This agreement is effective on the date of final execution by the Council. Approved as to form: Assistant General Counsel MEIROPOLTTAN COUNCIL �: 3ames J. Solem, Regional Administrator Date CITY OF SAINT PAIIL � Date : Date LCADEM03 Norm Coleman, Mayor Martha Larson, Director of Finance and Management Services MC i)/95 Page 5 of � Pages � q'1- ��s ATTACffi1�NT A I:)777�77.�iy [�.iaLiS i!f�'1�:17t�J ACCOUNT GRANT F`UNDS This attachment comprises pages A-1 through A-15 and incorporate the Grantee's pilot project application for Livable Communities Demonstration Account gant funds which was submitted in response to the Council's request for Livable Communities Demonstra6on Account pilot project applications, sub}ect to the following revisions which reflect the actual grant amount awazded to the Crrantee: The "LCDA" portion of the "Total Project Cost" identified at page A-13 is $650,000 rather than $800,OQ0. Page A 14 is revised to reflect the following "LCDA Funds" amounts for the following project activities: Shopping center redevelopmenU wetland restoration - Acquisition - Demolition/Site prepazation - Design/ engineering Subtotal Grocery store/ commerciai redevelopment - Site assembiy - Construction Subtotal TOTAL $ 550,000 $ 0 $ 0 $ 550,000 $ 100,000 $ 0 $ 100,000 $ 650,000 �� °► � -4'1S Metropolitan Livable Communities Act DEMONSTRATION ACCOUNT PHALEN VILLAGE PILOT PROJECT APPLICATION Saint Paul February 21, 1996 I. GENERAL INFORMATION Project Contact Persons: Dave Gontarek Address: 1300 City Hall Annex Saint Paul, MN 55102 Phone: FAX: 266-6674 228-3220 II. GENERA.L PROJECT INFORMATION HISTORY Allan Torstenson 1100 City Hall Annex Saint Paul, MN 55102 266-6579 228-3314 Phalen Village is located approximately three miles northeast of downtown Saint Paul, ,}ust southeast of Lake Phalen and east of Johnson Parkway. The principal features of the area are well-maintained, tree-lined residential blocks; Lake Phalen; and Phalen Regional Park. The center of the neighborhood is mazked by large e�anses of empty gavement, superblocks of walk-up apartments and automobile-oriented strip malls. Phalen Village lies along an old river valley of the St. Croix River, which flowed south from Lake Phalen to the Mississippi River. During the last glaciation,'gravels and soils were deposited in the valley, and large chunks of ice were left in low areas, forming Lake Phalen and the Phalen Chain of Lakes to the north. The Glaciers left a landscape of rolling, well-drained land dotted with lakes, ponds, and wetlands that remained on poorly-drained soiis deposited in low areas. This seraes of ponds and wetlands detains and cieans stormwater, provides fish and wildlife habitat, is a major flyway for migrating waterfowl and songbirds, and is a significant urban open space and recreation zesource. Since about 1850 and settlement by Europeans, the Phalen Viilage area has undergone substantial change. Development of the raiiroad just east of Lake Phalen in the later part of the nineteenth century began to cut what is now the center of Phalen Village off from natural amenities, especially when the railroad was put on a berm to create a level grade across the old valley. Most of the residential development in Phalen Village took place in the 1950s. The last remaining large tract of vacant land in the A-1 ,� •� ! • f � Phalen Viliage Pilot Project Application February 21, 1946 Page 2 1886 PT3ALEN VILLAGE AREA PLAT MAP 'r - :. '-fi. • l � -- - -- - -- - - - �- -- --::�\ ", x � � . � -rn,,.. : .,.. ' i � : . -. c.... � j �--T� .'E� i 7a . i] i . •'=��!:.. � '.`: ". 1 . . :f"__'"�" i 14 � � l5 � . ::\i< ` "'r.�ru � n.. ...i_ F' A..�:. x.A.5w8L � �. . : tv. � �.. I 1 -_ ..�:. ; :: . .: >'c' \K� ' . � . 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NSl:drf.,i.J x, a , /( /i /ii:/ r.;- ,... ;�� ; :, � � j _.._.._ ' Ey f_n T n_ ,.-.� ` ` , S ' - H _ l= � w ' __ ^_. �"ut- - - � . . , • - � -- --. � "' °— , �� J ' . ^J � ii(f . � _ �� _ �e : ( i A-2 � � �t�•y�s Phalen Village Pilot Project Application February 21, 1996 Page 3 area, previously undeveloped because it contained Ames Lake, wetlands, and poorly- drained soils, was filled in and paved over for development of Phalen Center and other commercial development around 1960. This created a significant gap in the natural conidor and substantiaily cut off Phalen Village from the area's natural systems and naturai amenities. Phalen Park, Johnson Parkway, and the natural landscapes are important enhancers of property value and communiry stabiliry in the Phalen Village area. The center of the azea, however, has turned its back on these natural amenities. It is designed more for cars than people, and is cut off from these sources of stability and value. Phalen Center was built as a large auto-oriented shopping center in 1960, when Highway 212 was expected to be routed nearby. The highway was never built and the Phalen Village commercial area cannot now compete wiffi nearby commercial areas, such as Sun Ray Shopping Center and Mapiewood Mall, that have major highway access. Because it was designed and built for a larger market than now exists, the Phalen Viliage commercia] area has a significant amount of vacant and underutilized space, large expanses of unused asphalt, and a negative image. Because it is uninviting and appears unsuccessful, the commercial area is not even capturing much of the neighborhood market. Immediately surrounding the Phalen Village commercial area are a couple thousand low-income apamnents in lazge, 2 and 1!2-story walkug complexes, many of which are poor qual3ty, poorly maintained, and have significant vacancies. It is an area currently undergoing substantiai change, and the future is uncertain. Single-family homes in the area are beginning to turn over fairly quickly, partiy due to aging households but also because even long-time residents are losing faith in the aiea. Cut off from natural amenities and without the commercial market anticipated when the area was first developed, the combined value of all commercial and residential property in the Phalen Village area declined 34.8% between 1985 and 1994 (using estimated properry values from the Ramsey County Assessors Office and constant dollars based of the Consumer Price Index for the Minneapolis-Saint Paui region). Within this decline, the value of single-family residentiai property declined 10.1%, and the value of multigie-family residential property declined 41.8%. Commercial property values in the area as a whole declined 33%. Within this, the value of commercial property along Maryland was more stable, deciining by only 18.6%. The value of commercial property without frontage on Maryland declined 39.1%. A-3 �'J Phalen Village Pilot Project Application February 21, 1496 Page 4 PHAI.EN VII,LAGE CONCEPT` PQLICY MAP � ' LAKE ' . . . _ . - PHALEN �� ,' ' INCREASE HOUSING ' QUAItTY AND DNERSITY RESTORE � WETLAND , REMOVE' BERM ' � IMPROVETRANS�TANDPEDESfRIANAMENR{ES FUTURE + lRT AT-GRADE� � f . \ � �r ' � ,� �/ / 4 0 2 4 Z � N Q Z q P � < RESTORE AMES LAKE AND NATURAL AMENITIES TO ENHANCEPROPERTY VAlUESAND CONNECT � WITH PHALEN PARK F1�4 J� �2 �e � N �O Q NEALTH g't - y'15 MARYLAND AVENUE INCREASE HOUSING DiVERS{TY, lMPROVE HOUSING MAlNTENANCE, ANDREDUCECONCENTRA710N OF POOA-QUAL�TY, LOW-INCOME HOUSING �1 Phalen Village Pilot Project Application February 21, 1996 Page 5 �'i - y� 5 A neighborhood task force was established in 1991 at the request of the Disuict 2 Communiry Council to recommend strategies to: 1) unprove the declining commercial area; 2) improve deteriorated apartmenc complexes in the area; 3) improve traffic circulation, safety and access; and 4) address land use, zoning and related issues in the area. The group developed the Phalen Village Small Area Pian, which has been adopted by the Saint Paul Ciry Council as an element of the City Compzehensive Plan, to transform the area from a blighting influence harmfiil to properry values into a safe, stable, attractive communiry center that meets neighborhood needs and is an asset to the overail area. The Phalen Village Plan recommends a package of bold, inteaelated objectives: create an urban village with a mix of housing options and a commerciai market reconstituted both geographically and in terms of market; create a stron;er connection to Lake Phalen and the natural landscape, wiih a wetland park and public open space system that provides neighborhood amenity and identity; unpzove access to transit, jobs and job training; and improve the physical development pattern of the area to facilitate interaction among residents, increase personal safety and help control crime. PROJECT DESGRII'TION, PIJRPOSE AND OBJECTIVES Description. This project is the linchpin of a comprehensive plan for transfoiming an alienating and rapidly declining neighbarhood into a livable community. Phasing of this long-range plan must have a logical sequence and also capitalize on sttategic opportunities. Implementation of the plan to best apply the principles for livable, compact development is at a critical point, and the timing is right to take advantage of strategic opportunities to create the wetland park neighborhood signature amenity and establish the neighborhood supermarket anchor of a more compact, transit- and pedesuian-oriented commercial core. This project is to transform part of an obsolete, largely vacant auto-oriented shopping center parcel (now a blighting influence on the surrounding area) into about 9 acres of quality wetland and a public ogen space system trtat becomes a neighborhood signature amenity. Restoring Ames Lake, a currently buried environmental resource, will link Fhalen Village to its primary asset, Phalen Park. It will enhance the value of surrounding property; create a framework for development of a more compact, mixed-use, pedestrian- and transit-oriented neighborhood commercial core; and help to attract quality private commercial and higher-value residential development into a declining, lower-income area. tl - 5 � e Phalen Village Pilot Project Application February 21, 1996 Page 6 PHALEI'd VILLAGE CONCEFTUAL PLAN a ❑ 1��C3 o;� �� a � ; o ��., �� ,. O ��`�,� o O Q � � � � 6 �� f � •� �o.�� p�:4 0 ° L-' � ° °� I:a. 0 o° �{;� 0 0, �,:� ° . �;� � 1;0� ' 1 � ry �o� 0 pa � C7 ` - �� :�`I/`� nr,00 � � iignolia �e ac r� � Q • I y � ----+ ---� �Q��t p��Q ,�,: ••Q t � q` � 1 l a} � 1 Q ° D 1 �H � P�O�P�At7 H • G. ❑ C � ° a 1 e�. „ a.eri i f � � o o � y ! ° O � a�a'�e 6 j o °�' J..o❑� � .o�a #��' o .i :'s . E�7� l!iJ9 � ° n !�' ' O�o ( o ❑� � [ ❑ Q � p ° �; pa 4 �1�U �� '' � � � 0 O � Q� �7 � Q a i' f ` �� o 0 � �, o � �; ;: � �&a . �Q Q o �� ;. 'oq � O � �❑ ]� Q .�. Q � . � COp ❑}°GSL�. oi : �� -��o � } � O :� � ° I i ��. q �_:•-'a. � � :a�� ♦ � �• • �� R � � � , �,� � ' �` "".� ��'l,` HJ�'/;p{' .l � • ��% �•� '�•' •' � * ��E� ' ',' , � "'' �1 _' � , � � ,� �i�� ✓ d!v • ..f•r .�31 •� �.I. I I�� i� �M � } �,�' � a r �� r � .' ,. ,�..r�' } . ` � • � ♦• .• • � � � � � �. . c�m.bryr � r� �y. w � . .. � A c� �_ � .� � � : , - °°°°°')essamine Av� OC- ..�J" � a � ❑�: �-o: � �� c � on or�`. � �... �� -• 1 a� ; *�� '� `� Y�yv}Ijiifiy�� .� r ' � ' fi� '-%�` � � ' 1 .i4;•,��pt'�;re tl � w �� 1 . • •� � 1 y Phalen Village Pilot Project Application February 21, 1996 Page 7 9�-��l5 This project is also to develop a neighborhood supermarket and related mixed commercial and office uses (about 3d,000 total square feet) near transit stops along Maryland Avenue at Prosperiry and Clarence. A sugermarket is critical to meeting neighborhood shopping needs, and is a key second phase of development of the new transit-oriented neighborhood hub. The existing superntarket in the shopping center, which does not fit this market niche and is poorly located, will soon close. The first phase of the neighborhood hub, which included realignment of a street to create a new commercial corner at Prosperity and Maryland, and development of a corner drug store and a neighborhood family health clinic at the new intersection, will be completed in early 1996. Characteristics of the proposed redevelopment include: Mixed land uses. The new supermarket is essential to the daily life of area residents. Tts location near transit stops along Maryland is especially important to hundreds of nearby residents who live in apartment buildings near Maryland because they depend on bus service. It is near a variety of existing housing and shops, as well as to health and education facilities, and the plan for the area encourages development of additional shops and civic facilities for which this project will be a catalyst. Pedestrian orientation. With vast expanses of asphalt, the project area is currently an alienating and uninviting piace, and is a difficult and dangerous place for pedestrians. Bus stops are a quarter mile or more from most stores, across large parking lots and busy streeis where there are no signalized crosswalks. T'his project will create a compaci neighborhood commercial area with stores within easy walking distance of each other and of transit stops. Streets designed for both people and cars. New and realigned streets will have both sidewaiks and bike lanes. Two new signalized intersections will be added to create a street system that ]s safer and more understandable for both drivers and pedestrians. Shelters wi11 be added for bus stops at the new Prosperity-Maryland intersection. The new supermarket will be oriented to Maryland for convenient pedestrian and transit accessibility, and will also have convenient parking. Pedestrian and bSke paths in the public open space system will interconnect the commercial core, neighborhood housing, transit stops, and Phalen Regional Park. A central place. The Phalen Viliage commercial core, with a neighborhood supermarket, corner drug store, banks, health clinic, and restaurants all clustered together along Maryland Avenue, the area's main street, is designed to function as a neighborhood center and help to create a sense of place. This project will be a catalyst for development of additional education, recreation, health and community A-7 � q'i-4�S Phalen Village Pilot Project Application Febmary 21, 1996 Page 8 services as part of the core. A market plaza will create a central public place in the commercial area, a neighborhood focal point that will be highly visible from Phalen Boulevard and a gathering place for neighborhood activities such as a fanners market (the area is home to many active gardeners and farmers market users, including a large Hmong population). The market plaza will overlook the neighborhood signature amenity wefland park, and provide an active link between the commercial azea and the more passive wetland park. Variety of housing types and jobs. A primary goal of the Phalen Village Plan is to create desirable, well-maantained housing that supports stable, long-term residency wiffi a mix of housing types, price ranges and ownershig options to meet the needs of a wide spectrum of ages, incomes, family types and household sizes. The azea now has a very high concentration of low-income housing. This project will help to atuact higher value residential development that adds to the diversity of housang types, price ranges and ownership options in the area by creating neighborhood signature amenity that links Phalen Village to Phalen Park and enhances the value of surrounding property. It will provide e�cganded opportunities for private sector employment in the area, and be a catalyst far improved access to employment growth areas. Variety of public open spaces. The restored Ames Lake wedand park will be a neighborhood signature amenity that links Phalen Village with Phalen Park; includes pedestrian and bike paths that interconnect the commercial core, neighborhood housina, transit stops, and Phalen Regional Park; and provides for fairly passive uses. The Phalen Viilage market plaza will be a central community gathering place, provide for such uses as a farmers market which wiil bring together people from ail parts of the community, and be a place for neighborhood marketing and community building. Open space for more active uses, possibly in conjunction with an indoor recreation facility, is planned for the area east of the wetland park. Human scale. The area will be transformed from one that is alienating and uninviting, designed more for cars than for peopie, into an area that has a more human, pedestrian-oriented scale. Planning process. Cooperative relationships and support foz the Phalen Village Plan were developed during a comprehensive four year planning process, which was jointly sponsored by the Saint Paui Planning Commission and the District 2 Community Councii. The plan was developed by a task force made up of area residents, commercial and residential property owners, businesspersons, and two members of the Saint Paul Planning Commission. ��3 r� � � °!�-y�is Phalen Village pilot Project Application February 21, 1996 Page 9 The task force began its work by identifying desirable characteristics they wished to achieve in the area; these character9stics became "Community Goals for an Urban Viliage" and are very much in keeping with the Principles for Livable, Compact Aevelopment. They conducted a design workshop to develop alternatives for turning their goals into physical reallry, and worked with City and University of Minnesota design professionais to develop plans and drawings of their proposals. The Phalen Village Plan, which has been adopted by the City Council as an element of the City Comprehensive Plan, calls for crea6on of a special design district to ensure impiementation of the plan's design goals. Saint Paul legislators, who have been a key partners and supporters of the planning process, have responded by passing enabling legislation for City creation of special design disuicts. These relationships and concepts, developed during tkae planning process, are now paying off in initial implementation phases. INTEGRATION OF LAND USES AND SYSTEMS Land use, transit and public infrastructure integration. The project will develop a neighborhood supermarket as the anchor of a mixed-use neighborhood commercial core along ffie neighborhood bus route and planned routes for LRT and express bus service. This mixed-use core akeady includes two neighborhood banks, a new neighborhood health clinic (just being completed), several smalier stores, and a number of apartrnent buildings. New/realigned streets and a wetiand pazklpublic open space system wiil provide the framework for development of the Phalen Village mixed-use commercial core, and a signature amenity that links Phalen Village with Phalen Park, enhances sunounding property values and helps attract quality commercial and residential development. Innovativelprototypical. The project is an innovative way of addressing the problem of a sprawling, obsolete auto-oriented commercial center for which a market does not now exist. It wili create a more compact neighborhood commercial area along existing and proposed public transit investments. It will transform vast eapanses of unused asphalt and the largely vacant shopping center from a blighting influence on the area into a neighborhood signature naturai amenity. It wiil demonstrate how such a public infrastructure investment can reverse declining tax base and heip attract higher value housing and private sector investments. Model for repiication. The project is a model for addressing the problem of an obsolete auto-oriented commercial center for which a market does not now exist, and F ' r�1 °I7-y�15 Phalen Village Pilot Project Application February 21, 1996 Page 10 for collaborative development of a compact, mixed-use, more pedestrian- and transit- oriented neighborhood commercial area, in size and offeririg services commensurate with market demand. It is also a model for restoring an environmental resource as a signature amenity to enhance ffie vaIue of sunounding properiy, create a framework for new development, and to help attract quality private commercial and higher-value residential development into a lower-income area. Linkages to employment. This project is part of a comprehensive master plan for the azea that is designed to improve access to transit in the azea, encourage/accommodate public investments in transit to connect the area (which is an urban neighborhood wiffi a very high concentration of low-income housing) with suburban communities and employment growth areas, and to encourage private commercial development along uansit and other private development along a new road that provides project area residents expanded oppornmities for grivate sector employment. III. PROJECT TEAM AND PARTNERSHII'S Participants. The acquisition of the shopping center site will be done by the Ciry of Saint Paul, with the Department of Public Works taking major responsibility for parcels designated for wetland constructiori and sueet realignments. Developable parcels wiil either be tro private developers immediately or held by the HRA for to developers. The commercial development will be caried out by a priv possibly with participation by North East Neighborhoods Development Corporation. Type and nature of partnerships. The Phalen Village planning process, the first phase of the new neighborhood commercial core, and the first phase of the Phalen Wetland Restoration Project have already created new partnerships among the City, the State, the watershed district, neighborhood residents, neighborhood businesses, the University of Minnesota, developers, and environmental groups. They have Ied to new community-building social infrastructure. New organizations, the Phalen Village Business Association and the North East Neighborhoods Development Corporation, are now key partners in implementing the plan. Phase one of the new commercial core, the new corner drug store and new health clinic, are privately funded developments done as a direct result of neighborhood- based pianning and support, and the City's ability to respond quickly with the street realignment project to provide needed access. The first phase of the Phalen Wetland Restoration Project (in the area between Maryland and the south end of Lake Phalen) is a cooperative effort by the City, state agencies, the Ramsey-Washington Metro A- 10 iY i Phalen Village Pilot Project Application February 21, 1996 Page 11 � • �� S Watershed District, neighborhood groups, and the University of Minnesota. It has funding from the City, the State (LCMR and RIM), and the Minnesota Waterfowl Association. This project will strengthen and build on these partnerships, and will leverage a number of public and private funding sources. � FINANCIAL SIJMmARIES See Attachments A and B. v CONTRIBUTION OF FUNDING TO A LNABLE COMMUNITY There are several features which Demonsuation Account funding would provide which would not otherwise occur. FirsC, timing is critical for the Phalen Village plan to be successfuliy implemented. Ttus funding would enable the city to begin actions to acquire the'shopping center site this summer, when its receivership period terminates, and before some other disposition of the property can occur. This is a unique opportunity to move the redevelopment forward which wiil not come again. Second, Demonstration Account funding will enable the city to quickly leverage other private and public resources to enable the activities described in this progosal to be fully funded. The other funds described will follow a significant initial commitment of funds, and may in some cases be contingent on receiving the Demonstration Account funding. In addition, because ttus funding may be used for acquisit'ion, it also will help to ensure that environmental, transportation, and housing resources become available for construction in subsequent phases of the redevelopment. Third, these resources will enable the city to pursue both the shopping center acquisition and the grocery store relocation concunently. Absent this funding, the city wiil continue to pursue both, but one or the other comgonent would have to be deferred, and it is di�cult to defer either. The shopping center's availability in the future is unlikely, and failure to promptly replace the grocery store when it closes decreases the likelihood that it will be replaced as shoppers develop other patterns. Finally, Demonstration Account funding will make a significant contribution to reviving neighborhood confidence and pride. These attitudes have tangible economic consequences: willingness to shop in the neighborhood, wiilingness to buy a home nearby (or invest in improvements, or not sell), willingness to locate a business in the A- 11 ,�� 9't -4'! 5 Phalen Village Pilot Project Application February 21, 1996 Page I2 area. Prompt, large scale successful redevelopment efforts in the azea will produce marked changes in the economy of the area, and these spinoff effects may not occure to a significant extent but for an investment like this in Phalen Village. VI. CURRENT ACTIVITIES, PROPOSED PROCESS Phase one of the of the commercial core is nearing completion. Projects included in this phase include: - The new Walgreens drugstore at the comez of Maryland and Prosperity opened in November, and is wildly successful, doing a great deal more business than the developer anticipated. - The new HealthEast clinic is nearing completion, with occupancy projected for April. - The realignment of Prosperity Avenue between Maryland and Itose is expected to be completed in March. The timing is right for a neighborhood supermarket to build on these success. The exisdng supermarket in the shopping center, which does not fit this market niche, wiil soon close. A smaller supezmarket which fits this niche is of critical importance to the neighborhood, and particulazly to low-income residents who dan't have good access to other supermarkets. Phalen Shopping Center is now in receivership, and will be on the market in June, 1996. The timing is right to acquire the center and begin development of ihe wetland parkJpublic open space system that will be a framework for Phalen Village redevelogment and a linchpin for integrated activity to create a livable community. VII. PROJECT SCHEDULE See Attachment C. VIII. LOCAL GOVERNMEI�TT SUPPORT See attached letter of support from the Mayor. A-12 � g'l • �,'1 S Llvabie Communities Demonstratior+ Account {LCDA} Pilot Praject Application ATTACHMENT A SUMMARY FINANClAL 1MFORMATION 1. Tote! Pfojec! Cost Tata! Soft Cost -Tota[ Harc1 Cos! Pubiic 2,soo,aoo :� �� ' 2,520,000 Private • 2,080,000 208,000 1,872,000 . :�� :� »� 720,000 2 What uso(s) are you propoaing for Demonstration Aacou[rt funds? Site assembly and preparation for Phalen Village wetland restoration project, phase 2; and Phalen V ill ag e c redevelopment projecc, phase 2. 3. Are you requeating a laen or a grant7 Grant d. Whst2 is tho ¢tatus a� finanaisl oommittmerrta for this pro}ect? Funding foz phase 1 of both the wedand restoratioa and commercial redevelopment projects is in place. Funding for phase Z of both components is pending or will be submitted in the near furure. �. 1Mhen w81 you neea Demonstration Accourn ivnds7 Iune, 1996 LCCJAApP! ATA � i _ _� __...._ . ____.� r�3 � , � � < � r+� �� CO a � M U a � � _ ;� �� <� G � �.r', " � u u y � V S S oQ 0 0 0 0 �f N Vi O n `ti W a � � �C u a�'� � O C U ��in'ic.>w� o g $o g ° o $ c � h �V r' � N � O O � q O O � � a , 4 � � L � � C "C ^ ca � C a �� o � 0 . •- = � y u 'G v G�� r. :A C A n, > n cr ^ a' �� N v y G t..1' aQ u A-14 L d N � � u . > R� O � G� a. a? 000 N � � ^ N 0 0 0 0 � T � C � C � .� a u u a }, � O L U N y � � u � U ° � ° o 0 ° o � o 0 o W N � O t- � , . ., •� �9�-y�5 � .� � � � E u Z p( � w � � � � � � � 8 � .� � .r � � , M L �� P s � �� N� 4 ^ � �' B : Q� ��! , n lA1.t31'1CC11 �, ; � P OJECT SCHEDULE � � . 199 149 Shopping center redevelopmend wetland restoraCion - Acquisition - Dearolition! site preparation - Designl engineering - Wetland restoration Grocery store! commercial redevelopment - Site assembly - Construction IS A - 15. _._ / P�} �! � 9? - �1'15 ATTACHIV�NT B Ce17� `�Y �i�U�13rJ�7it�3�`►M�':+L r�171�� The total grant amount specified in paragraph 2.01 of ttns agreement shall be disbursed to the Grantee for uses consistent with this agreement acr,ording to the following schedule: The Council will disburse grant funds in response to written disbursement requests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the developmem activity funded by this agreement, the contractor(s)Ivendor(s) to be paid, and the time period within which the development activity was or will be performed. Disbursements prior to the perfonnance of a development activity will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Gramee. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. Subject to verification of a written disbursement request and approval for consistency with this agreement, the Council will disburse a requested amoum to the Grantee within two (2) weeks after receipt of a written disbursement request. � C'—y'�e ��_�� Grant No. SG-96-59 METROPOLITAN LIVABLE COMI4IITNl[TIES ACT LIVABLE COMMU1�iITIES DEMONSTRATION ACC(3UNT GRANT AGREEMENT 1'HIS GRt1NT AGREEMEPiT is made and entered into by the Metrogolitan Councii ("Council") and the Ciry of Saint Paul ("Crrantee"). WHERF.AS, Ivfinnesota Statutes section 473.251 creates the Metropolitan Livable Communiries Fund, the uses of which fund must be consistent with and promote the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Development Guide adopted by the Council; and � WHEREAS, Minnesota Statutes sections 473.251 and 473.253 establish within the Metropolitan Livable Communities Fund a Livabie Communities Demonstration Account and require the Council to use the funds in the account to make grants or loans to municipalities padicigating in the Local Housing Incentives Program under Minnesota Statutes section 473.254 or to metropolitan-area counties to fund the initiatives specified in Minnesota Statutes section 473.25, paragaph (b), in participating municipalities; and WHEREAS, the Grantee is a"municipality" participating in the Local Fiousing Incentives Account program under Minnesota Statutes section 473.254 or a metropolitan-area county and submitted a pilot project application for Livable Communities Demonstration Account funds in response to the Council's request for pilot project applications; and WHEREAS, at its March 14, 1946 regulaz meeting, the Council awazded Livable Communities Demonstration Account grant funds to fow pilot projects, including the pilot project described in the Grantee's pilot project appiication for Livabie Communities Demonstration Account £unds. NOW THEREFORE, in consideration of the mutuai promises and covenants contained in this agreement, the Crrantee and the Council agree as foliows: I. DEFINTTIONS 1.01 Definition of Terms. For the purgoses of this agreement, the terms defined in this pazagraph have the meanings given them in this pazagraph unless otherwise provided or indicated by the conteart. (a} `it�feiropolitcm tlrea" means the seven-county metropolitan area as defined by Minnesota Statutes section 473.121, subdivision 2. {b) `il�tunicipality" means a statutory or home rule charter city or town participating in the Local Housing Incentives Account Program under Ivfinnesota Statutes section 473.254, or a county in the Metropolitan Area. Page I of 5 Pages �_u�5 (c) `ParticipatingMunicipality" means a statutory or home rule charter city or town which has elected to participate in the Local Housing Incentive Account progam and negotiated affordable and life-cycle housing goals for the Municipality pursuant to IvHnnesota Statutes section 473.254. II, GRANT FUNDS 2.01 Tota! Grant Amount The CouncIl will grant to the Grantee a total sum of $650,000.00 which shall be funds from the Livable Communities Demonstration Account of the Metropolitan Livable Communities Fund. Notwithstanding any other provision of this agreement, the Grantee understands and agrees that any reduction or termination of Livable Communities Demonstration Account grant funds made available to the Council may resuit in a like reduction to the Grantee. 2.02 Authorized Use of Grant Funds. The totat grant amount made available to the Grantee under this agreement shall be used only for the putposes and activities described in the Grantee's pilot project application for Livable Communities Demonstration Account grant funds, as revised by the Cnantee to reflect the grant award made by the Council. A copy of the Grantes's revised application which identifies eligibie uses of the grant funds is attached to and incorporated into this ageement as Attachment A. If the provisions of the Grantee's application ue inconsistent with other provisions of this agreement, the other provisions of this agreement shall take precedence over ihe provisions of the application. Grant funds must be used to fund the uutiatives specified in Minnesota Statutes section 473.25, paragraph (b), in a Participating Municipality. Cnant funds must be used for costs directly associated with the specific proposed activities and ue intended to be used for "hard costs" rather than "soft costs" such as: administrative overhead; activities prior to the start of the grant project; travel expenses; legal fees; pemvts, ]icenses or authorization fees; costs associated with preparing other grant proposals; operating expenses; planning costs, including comprehensive planning costs; and prorated lease and salary costs. The Council shall bear no responsibility for cost overruns which may be incuned by the Grantee or others in the implementation or performance of the project activities described in Attachtnent A. The Grantee agrees to remit to the Council in a prompt manner, any unspent grant funds and any grant funds wttich are not used for the authorized purposes specified in this paragraph. 2.03 Budget Variance. A variance of ten percent (10%) in the amounts allocated to various eligible uses identified in Attachment A shall be considered acceptable without further documentation or Council approval. Budget variances exceeding ten percent (10%) may require approval of the governing bady of the Metropolitan Councii. Notwithstanding the aggregate or net effect of any variances, the Council's obligation to provide grant funds under this agreement shall not exceed the maximum grant amount specified in paragraph 2.01 of this agreement. 2.04 Disbarsement Schedule. The Council will disburse the grant funds to the Grantee in accordance with the grant fund disbursement schedule contained in Attachment B, which is incorporated into and made a part of this agreement. The Council wiii make disbursements only upon receipt of a written disbursement request from the Grantee's authorized agent or representative. 2.05 Interest Earnings. If the Csrantee earns any interest or other income from the grant funds received from the Council under tivs agreement, the Grantee will use the interest earnings or income only for the purposes of implementing the project activities described in Attachment A. Page 2 of S Pages a�-`� S 2.06 Effect of Grant. Issuance of this grant neither implies any Council responsibility for contamination, if any, at the project site nor imposes any obligation on the Council to participate in any pollution cieanup of the project site if such cleanup is undertaken ar required. III. ACCOU1�iTI1�iG, AUDTT AND REPORT REQIIIREMENTS 3.01 Accounting and Records. The Grantee agrees to establish and maintain accurate and complete accounts and records relating to the receipt and e�enditure of all grant funds received from the Council. Notwithstanding the expiration and termination provisions of paragraphs 4.01 and 4.Q2, such accounts and records shall be kept and maintained by the Grantee for a period of three (3) years following the completion of the project activities described in Attachment A or three (3) years following the expenditure of the grant funds, whichever occurs earlier. For all expenditures of grant funds received gursuant to this agreement, the Grantee will keep proper financial records including invoices, conuacts, receipts, vouchers and other appropriate documents sufficient to evidence in proper detail the nature and prfipriety of the expenditure. Accounting methods shall be in accordance with generally accepted accounting principles. 3.02 Andits. The above accounts and records of the Grantee shall be audited in the same manner as ail other accounts and records of the Grantee aze audited and may be audited or inspected on the Cnantee's premises or otherwise by individuals or organizations designated and authorized by the Council at any time, following reasonable notification to the Crrantee, for a period of three {3) years following the completion of the project activities described in Attachment A or three (3} years following the expenditure of the gant funds, whichever occurs earlier. 3.03 Report Requirements. The Grantee wili provide to the Council one or more written reports which report on the status of the pro}ect activities described in Attachment A and the expenditures of the grant funds. The reporting schedule and the content of the written report(s) are identified in Attachment C, which is incorporated into and made a part of this agreement. 3.Q4 Environmental Site Assessment. The Grantee represents that a Phase I Environmental Site Assessment or other environmental review has been or will be carried out, if such environmental assessment or review is appropriate for the scope and nature of the praject activities funded by this grant, and that any environmental issues have been or will be adequately addressed. N. AGREEMENT TERM 4.01 Term. This agreement is effective upon execution of the agreement by the Council. Unless terminated pursuant to paragraph 4.02, this agreemem will expire upon compietion of the project acti�ities described in Attachment A or foilowing the expenditure of all grant funds by the Grantee, whichever occurs earlier. 4A2 Termination. This agreement may be terminated by the Council for cause at any time upon fourteen (14) calendar days' written notice to the Grantee. Cause shall mean a material breach of this agreement and any amendments of this agreement. If this agreement is terminated, the Csrantee shall receive payment on a pro rata basis for project activities described in Attachment A that have been completed. Ternvnation of this agreement does not alter the Council's authority to recover grant funds on the basis of a later audit or other review, and does not alter the Gtantee's obiigation to return any grant funds due to the Council as a result of later audits or corrections. If the Council Page 3 of S Pages � tiUIS determines the Crrantee has failed to comply with the terms and conditions of this agreement and the applicable provisions o£the Metropolitan Livable Communities Act, the Council may take any action to protect the Council's interests and may refuse to disburse additionai grant funds and may require the Grantee to return all or part of the grant funds already disbursed. 4.03 Amendments. The Council and the Grantee may amend this agreement by mutual agreement. Amendments, changes or modifications of tlus agreement shall be effective only on the execution of written amendments signed by authorized representatives of the Council and the Grantee. V. GENERAL PROVISIONS 5.01 Equal Opportuniry. The Grantee agrees it will not discrinunate against any emplayee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to gublic assistance, membership or activity in a local civil rights commission, disabflity, sexual orientarion or age and take affirmative action to insure app]icants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. 5.02 ConIIict of Interest. The members, officers and empioyees of the Grantee shall comply with ali applicable state statutory and regulatory conflict of interest laws and provisions. 5.03 Liability. To the fullest eatent pernutted by law, the Grantee sha11 defend, indemnify and hold harmSess the Council and its members, empioyees and agents from and against all ciaims, damages, losses and expenses, including but not limited to attomeys' fees, arising out of or resulting from the conduct or implementation of the project activities funded by this grant. Claims included in this indemnification include, without limitation, any claims asserted pursuant to the Minnesota Environmental Response and Liability Act (MERLA), Minnesota Statutes chapter 115B, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1480 (CERCLA) as amended, 42 U.S.C. sections 9601 et seq., and the federal Resource Conservation and Recovery Act of 1976 (RCRA) as amended, 42 U.S.C. sections 6901 et seq. This obligation shall not be constcued to negate, abridge or otherwise reduce any other right or obligation of indemnity which otherwise would e�st between the Council and the Crrantee. The provisions of this paragraph shall survive the ternunation of this agreement. This indemnification shall not be construed as a waiver on the part of either the Grantee or the Council of any immunities or limits on liability provided by Minnesota Statutes chapter 466, or other applicabie state or federal law. 5.04 Acknowiedgments. The Grantee shall acknowledge the financial assistance provided by the Council and the State of Minnesota in promotional materials, press releases, reports and publicarions relating to the project activities described in Attachment A which are funded in whole or in part with the grant funds. The acknowledgment should cornain the following, or similar, language: This project was financed in part with a granf from the Metropolitcm Council thraugh the Livable Communities Demorutration Account of the Metropotitan Livable Communities Fund. 5.05 Permits, Bonds and Approvals. The Council assumes no responsibility for obtaining any applicable local, state or federa] licenses, pemuts, bonds, authorizations or approvais necessary to perform or complete the pro}ect activities described in Attachment A. Page 4 of 5 Pages a��`�� 5.06 Contractors and Subcontractors. The Grantee shall include in any cornract or subcontract for project activities appropriate co�ract provisions to ensure contractor and subcomractor compliance with all applicable state and federal laws. Along with such provisions, the Crrantee shall require tbat contractors and subcontractors perfornung work covered by this grant comply with all applicable state and federai Occugationai Safety and Heaith Act regulations. 5.07 Attachments. The following are attached to ttus agreement and are incorporated into and made a part of this agreemern: (a) Attachment A- Grantee's pilot project application for Livable Communities Demonstration Accowrt grant funds, as revised to reIlect the Council's grant award (b) Attachment B- Grant Fund Disbursement Schedule (c) Attachment C- Written Report Submission Schedule 5.08 Warranty of Legal Capaciiy. The individuai signing this agreement on behatf of the Grantee represents and wanants on the Grantee's behalf that the individual is duly authorized to execute this agreement on the Grantee's behalf and that this agreement constitutes the Grantee's valid, binding and enforceable agreements. IN WIT'NESS WHEREOF, the Grantee and the Council have caused this agreement to be executed by their duly authorized representatives. This agreement is effective on the date of final execution by the Council. Approved as to forrn: Assistant General Counsel METROPOLTTAN COUNCII. By James J. Solem, Regional Administrator Date CTTY OF SAINT PAUL � Date � Norm Coleman, Mayor Martha Larsoq Director of Finance and Management Senrices Date MC 1]N6 LCAOEM�3 Page 5 af S Pages � �,�� ATTACHbIENT A APPLICATION FOR LIVABLE COMMITNTl'IES DEMONSTRATIOIV ACCOUNT GRANT P'UNDS This attachment comprises pages A-1 through A IS and incorporate the Grantee's pilot project application for Livable Communities Demonstration Account grant funds wtuch was submitted in response to the Council's request for Livable Communities Demonstration Account pilot pro}ect applications, subject to the following revisions which reflect the actual grant amount awarded to the Grantee: The "LCDA" portion of the "Total Project Cost" identified at page A-13 is $650,000 nther than $800,000. Page A-14 is revised to reflect the following "LCDA Funds" amounts for the following project activities: Shopping center redevelopmentl wetland restoration - Acquisition - DemolitionlSite prepazation - Design/ engineering Subtotal Grocery store! commercial redevelopment - Site assembly - Construction Subtotal TOTAL $ SSO,OQO $ 0 $ Q $ 550,000 $ 100,000 $ 0 $ 100,000 $ 650,000 Metropolitan Livable Communities Act DEMONSTRATION ACCOUNT � �� a PI3AL�N VILLAGE PILOT PR4JECT APPLICA.TION Saint Paui I. II. GENERA.L INFQRMATION February 21, I996 Pro,yect Contact Persons: Dave Gontarek Address: 1300 City Hall Annex Saint Paul, MN 55102 Phone: 266-6674 FAX: 228-3220 GENERAI. PROJECT INFORMATION HISTORY Allan Torstenson 1100 City Hall Annex Saint Paul, MN 55102 2b6-6579 228-3314 Phalen Village is located approximately three miles northeast of downtown Saint Paul, just southeast of Lake Pbalen and east of 7ohnson Parkway. The principal features of the area are weli-maintained, tree-lined residential blocks; Lake Phalen; and Phalen Regional Park. 'The center of the neighborhood is marked by lazge expanses of empty pavement, superblocks of walk-up apartments and automobile-ociented strip malls. and recreation zesource. Phalen Village lies along an old river valley of the St. Croix River, which flowed south from Lake Phalen to the Mississippi River. During the last glaciation,'gravels and soils were deposited in the valley, and large chunks of ice were left in low areas, forming L.ake Phalen and the Phalen Chain of Lakes to the north. The Glaciers left a landscape of rolling, well-drained land dotted with lakes, ponds, and wetlands that remained on poorly-drained soils deposited in low areas. This series of ponds and wetlands detains and cleans stormwater, provides fish and wiidlife habitat, is a major flyway for mignting waterfowl and songbirds, and is a significant urban open space Since about 1$50 and settiement by Europeans, the Phalen Village area has undergone substantiai change. Development of the railroad just east of I.ake Phalen in the later part of the nineteenth century began to cut what is now the center of Phalen Village aff from natural amenities, especialiy when the railroad was put on a berm to create a levei grade across the old valley. Most of the residential development in Phalen Village took place in the 1450s. The last remaining large tract of vacant land in the A-1 r ,�� Phalen Viliage Piloc Pro,}ecc Application �� February 21, 1946 Page 2 1886 PFIALEN VII,LAGE AREA PLAT MAP • � � � •� �L�. .' H3l..i/.. � , � .' . � �)0 n.. 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'/ -�y �.d"� � I � F4 ` a i, ' i P ' r.r.sa... fl ; L.ti i� )>� �-. �- �F inr,•6;s',, r,�� ,•nb� • � • u'�� ` :1 : -o �u ° .. y"I a T . 1 > Ir_, : • _ �.�d•..::.: � . �J a r� ,� .4.. . .o' . �- - o i_ : . .._�.:, . . �..,� . . .. .- �.- ' _ "" , - • _-✓.� � � .�.0 � j %J y T ' E . x � j- +. Mt�: '_ _ �"..-��>,>��..Sr�'r w.� ""' _._ _.'L __...'�__� '_ - � V �l � ..�..�_.-_ . I iae. � " . � T , ` ; .::.., fJr. . f ' � ! i i ' " � : .u/� .� T �`-'" , .f, i: :.rrrree� �{a�s. _' '� ...�::.,E '�; t., i ..i� � ° a_ i �€ �ol'�",.ai �i•�'i :-;i.II_ �_� � : ` 6. .4• �� :' � _` � � _+ .� ` r /' � "` : �: 1 u u" b. � L._! '?. _ � ��e: :�.e-`�.r' er 1 . . �� .. .• . . . . . _: . o N , ,.�9 . � ..r i.��-.�,� �' . ,u: fa... ,'. u� „i .:�. .._ �� r.... r. "°' ' t� . fi i�.•'.v C�,FT ❑ 3� H�5 H� A N H;SIF�, °j '_�_ _ _ _• ..5./..n .i I.L%.2 � . . � ,. �: �-' ` � r,.,.. a - ft ; o 'E _ N .." ".r�..; 0 ' Y'��z�'..-.. u ii; . ' F- Ec � - : - sa.,. _ ,�� ' � .��_ 1 I :� � � it .' = c ' ! N.f /:..i.1. � •; � � � ? � ^ �� E N 3 � i n _�___ _C. - - ---- - - -. . .._� _ �,; ._ ._,.. �, . _ . . I _ � - I _- --- �"'— I�. , 1� • k•ya _ :;,, , (L d__ L' • . A-2 Phalen �illage Pilo[ Project Application February 21, 1996 Page 3 �� area, previously undeveIoped because it contained Ames Lake, wetlands, and poorly- drained soils, was filied in and paved over for development of Phalen Center and other commercial development around 1960. This created a significant gap in the natural corridor and substantiaily cut off Phalen Village from the area's natural systems and natural amenities. Phalen Park, Johnson Parkway, and the natural iandscapes are important enhancers of property value and community stability in the Phalen Village area. The center of the area, however, has turned its back on these natural amenides. It is designed more for cars than people, and is cut off from these sources of stability and value. Phalen Center was built as a large auto-oriented shopping center in 1960, when Highway 212 was expected to be routed nearby. The highway was never built and the Phalen Village commerciai area cannot now compete with nearby commercial areas, such as Sun Ray Shopping Center and Mapiewood Mall, that have major highway access. Because it was designed and built for a larger market than now exists, the Phalen Viilage commercial area has a significant amount of vacant and underutilized space, large expanses of unused asphalt, and a negative image. Because it Ss uninviting and appears unsuccessful, the commercial area is not even capturing much of the neighborhood market. Immediately surrounding the Phalen Village commercial area are a couple thousand low-income apartments in large, 2 and 1i2-story waikup complexes, many of which are poor qualiry, poorly maintained, and have significant vacancies. It is an azea currently undergoing substantial change, and the future is uncertain. Single-family homes in the area are be�inning to turn over fairly quickly, partly due to aging households but also because even long-tune residents are losing faith in the aiea. Cut off from natural amenities and without the commercial market anticipated when the area was fust developed, the combined value of all commerciai and residential property in the Phalen Village area declined 34.8% between 1985 and 1994 (using estimated property values from the Ramsey County Assessors Office and constant dollars based of the Consumer Price Index for the Minneagolis-Saint Paul region). Within this decline, the value of single-family residential property declined 10.1%, and the value of multipte-family residential property declined 41.8%. Commercial property values in the area as a whole declined 33%. Within this, the value of cammercial property along Maryland was more stable, declining by only 18.6%. The value of commercial property without fronta�e on Maryland declined 39.1%. A-3 Phalen Village Pilot Project Application February 21, 1996 Page 4 PHALEN VII.LAGE CONCEPT POLICY MAP � , LAKE � PHALEN , � � .' � � I RESTORE ' w�tallo � a REMOVE ` � BERM � � INCREASE HOUSING QUAIfTY AND DNER5l1Y � tMPROVE7R,4N51TANDPEDESlRIANAMENI71E5 FUNRE � iR7 AT-GRADE� i t \ � `Sf � I la / �� 1' a / W / x c � w I° � q � P, 1� AEA �� RESTORE AMES LAKE AND NATURAL AMENITfES TO ENHANCE PROPERT'! VAlUES AND CONNECT � W17H PHALEN PARK � �� r J� j` 2 �e �� ¢� a MARYLAND AVENIlE� DE ION, fiON, At10 � � INtREASE HOU5ING DiVERSiTY, tMPRaVE NOVSlNG MAINTENANGE, At3D R£DUCE CONCENSRATION OF POOR QUAUTY, lOW-INCOME HOUSING s Phalen Village Pilot Project Application February 21, 1996 Page 5 �� A neighborhood task force was estabiished in 1991 at the request of the District 2 Community Council to recommend strategies to: 1) improve the declining commercial area; 2j improve deteriorated apartment complexes in the area; 3) improve tra�c circula[ion, safery and access; and 4) address land use, zoning and related issues in the area. The group developed the Phalen Village Smail Area Plan, which has been adopted by the Saint Paul City Council as an element of the City Comprehensive Plan, to uansfoim the area from a blighting influence harmful to properry values into a safe, stable, attractive coznmunity center that meets neighborhood needs and is an asset to the overall area. The Phalen Village Plan recommends a package of bold, interrelated objectives: create an urban village with a mix of housing options and a commercial market reconstituted both geographically and in terms of market; create a stronger connection to Lake Phalen and the naturai landscape, with a wetland park and pubtic open space system that provides neighborhood amenity and identity; impzove access to transit, jobs and job training; and improve the physical development pattern of the area to facilitate interaction among residents, increase personai safery and help control crime. PROJECT DESCRII'T`ION, PURPOSE AND OBJECTIVES Description. This project is the linchpin of a comprehensive plan for transforming an alienating and rapidly declining neighborhood into a livable community. Phasing of this long-range plan must have a logical sequence and also capitalize on strategic opportunities. Implementation of the plan to best apply the principles for livabie, compact development is at a critical point, and the timing is right to take advantage of strategic opportunities to create the wetland park neighborhood signature amenity and establish the neighborhood supermarket anchor of a more compact, transit- and pedestrian-oriented commercial core. This project is to transform part of an obsolete, largely vacant auto-oriented shopping center parcel (now a blighting influence on the surrounding area) into about 9 acres of quality weUand and a public.open space system that becomes a neighborhood signature amenity. Restoring Ames Lake, a currently buried environmental resource, will link PhaIen Viilage to its primary asset, Phalen Park. It wi11 enhance the value of surrounding property; create a framework for development of a more compact, mixed-use, pedestrian- and transit-oriented neighbarhood commercial core; and help to attract quality private commercial and higher-value residential development into a declining, lower-income area. A-5 Phalen Village Pilot Project Application February 21, 1996 Pa�e 6 PHALEN VILLAGE CONCEPTUAL PLAN a o�� a ❑ QO Q o : ^.a d (� g'a �� >� �� '� 0 � r. � u � D 17°�L17� ��SQd� CQ❑ a p ° t, ° a °a k:a . n {''`-� � � ? L.r-..J o � � � ', a a . � � •; a a �: Q �.�,.i.,, ;O� .. .---- i s;'• i �c�. �.:Pr o p p Q� o �, ;�. .:�i �, �, ❑ o � � �� Q A p� j �Q n p� +`, i } t t o �� e; ❑ 1 Pro�P�dt7 H W1 • `'� : I � Q � � n{ --� } [ p ° o } "e�.m.ns.n n ei Qp .?; `F o ; [ n Q ,*� � �Q o❑ ) f ' ',O � LJ I o. �000+�{{� � �y tr (-� o S�� o �, o o.,, [fl` '[� � }`a ' ; a ° t a jE� ❑ Q 1 f o g oa ° ° Q�� %r'C]a ° o 0 o f[} � F] � Q 0 i �� o p �� ,'' t Q� a ��:� � � � o �.;:� ° �' ❑ d [o �o?�� '� Q o 1 � � �{ {} � o r, 6 •�` � o ° a ., p p+ ••jo % 7 �n Oo y a no rs�►w� �. .. � � � � � G � �i\ Y / ,° �a: � � °�` , : 7 �`� -- .� i . - FAn9nalla �e�� a a `�� ❑ �� a _ a a / �1 �,, ��.� �. ��' � -'?�i�i�^`a"tw -; � � � 1 , • l� �i �- � ♦ /"* ��' '.�.�• � • ij� � ♦ � � . �� ''. � ,dm �• : 2�� %i-'Y;�- ` ' , • ,. ,. \,�,/✓'�u�l�(b� . • �� II II�� • � .• .. .: r � .' ` � rr' i. r •. M• . .� •• � r ��.� , � t;� � � ` � l�� ..�.__� �. , s..:.. ...;_.:� -'- _ � � �� --_..__.._ � ... `� �� '� '� I � �� i � : S�Y+li: ►^CCS'7 �CM3�• �� • f �1...-_'.c. _ ' (' � . �y�� ' ' ,� ° < '"�:{;;ti:!.t s * � �" , ��` S"-x l�' � , I ' � , ��, � ., � , r . � •� � � Phalen Village Pilot Project Application February 21, 1996 Page 7 ��J�n� This project is also to develop a neighborhood supermarket and related mixed commercial and office uses (about 30,000 total square feet) near transit stops along Maryland Avenue at Prosperity and Clarence. A supermarket is critical to meeting neighbarhood shopping needs, and is a key second phase of development of the new transit-oriented neighborhood hub. The existing supermarket in the shopping center, which does not fit this mazket niche and is poorly located, will soon close. The first phase of the neighborhood hub, which included realignment of a street to create a new couunerciai corner at Prosperity and Maryland, and development of a corner drug store and a neighborhood family health clinic at the new intersection, will be completed in early 1996. Characteristics of the proposed redevelopment include: Miated land uses. The new supermarket is essential to the daily life of area residents. Its location near transit stops along Maryland is especially important to hundreds of nearby residents who live in apartment buiidings near Maryland because they depend on bus service. It is near a variety of existing housing and shops, as well as to heaith and education facilities, and the plan for the area encourages development of• additional shops and civic facilities for which this project will be a catalyst. Pedestrian orzentation. With vast expanses of asphalt, the project area is currently an alienating and uninviting place, and is a difficult and dangerous place for pedestrians. Bus stops are a quarter mile or more Prom most stores, across Iazge parking lots and busy streeis where there are no signalized crosswalks. This project wi11 create a compact neighborhood commercial area with stores within easy walking distance of each other and of transit stops. Streets designed for both people and cars. New and realigned screets wi11 have both sidewalks and bike lanes. Two new signalized intersections will be added to create a street system that is safer and more understandable for both drivers and pedestrians. Shelters will be added for bus stops at the new Prosperity-Maryland intersection. The new supermarket will be oriented to Mazyland for convenient pedestrian and transit accessibility, and will aiso have convenient parking. Pedestrian and bike paths in the pubiic open space system will interconnect the commercial core, neighborhood housing, transit stops, and Phalen Regionai Park. A central place. The Phalen Village commercial core, with a neighborhood supermarket, corner drug store, banks, health clinic, and restaurancs all clustered together along Maryland Avenue, the area's main street, is designed to function as a neighborhood center and help to create a sense of place. This project will be a catalyst for development of additional education, recreation, health and community A-7 Phalen Village Pilot Project Application February 21, 1996 Page 8 � � ti�.�. � �� services as part of the core. A market plaza will create a central pubiic glace in the commercial area, a neighborhood focal point that wili be highly visible from Phalen Boulevard and a gathering place for neighborhood activities such as a farmers market (the area is home to many active gardeners and farmers market users, including a large Hmong population). The mazket plaza will overlook the neighborhood signature amenity wefland park, and provide an active Iink between the commercial area and the more passive wefland park. Variety of housing types and jobs. A primary goal of the Phalen Village Plan is to create desirable, well-maintained housing that supports stable, long-term resideney with a mix of housing types, price ranges and ownership options to meet the needs of a wide spectrum of ages, incomes, family types and househoid sizes. The area now has a very high concentration of low-income housing. This project wiIl help to attract higher value residential development that adds to the diversity of housing types, price ranges and ownership options in the area by creating neighborhood signature amenity that links Phalen Village to Phalen Park and enhances the value of surrounding property. It will provide expanded opportunities for private sector employment in the area, and be a catalyst for improved access to employment growth areas. Variety of public open spaces. The restored Ames Lake wetiand pazk will be a neighborhood signature amenity that links Phalen Village with Phalen Park; inciudes pedestrian and bike paths that interconnect the commercial core, neighborhood housing transit stops, and Phalen Regional Park; and provides for fairly passive uses. The Phalen Village market plaza will be a central communiry gathering place, provide for such uses as a farmers market which wi11 bring together people from all parts of the communiry, and be a place for neighborhood marketin; and community building. Open space for more active uses, possibly in conjunction with an indooz recreation facility, is planned for the area east of the wetland park. Human scale. The area will be transformed from one that is alienating and uninviting, designed more for cars than for people, into an area that has a more human, pedestrian-oriented scale. Planning process. Cooperative relationships and support for the Phalen Village Plan were developed during a comprehensive four year planning process, which was jointly sponsored by the Saint Paul Planning Commission and ihe District 2 Communiry Council. The plan was developed by a task force made up of area residents, commercial and residentiai property owners, businesspersons, and two members of the Saint Paul Planning Commission. GII? 6 Phalen Village pilot Project Application February 21, 1996 Page 9 � n� �� The task force began its work by identifying desirable chazacteristics they wished to achieve in the area; these characteristics became "Community Goals for an Urban Village" and aze very much in keeping with the Principles for Livable, Compact Development. They conducted a design workshop to develop alternatives for tuming their goals into physical reality, and worked with City and University of Minnesota design proPessionals to develop plans and drawings of their proposals. The Phalen Viilage Plan, which has been adopted by the Ciry Council as an element of the City Comprehensive Plan, calls for creation of a special design district to ensure implementation of the plan's design goals. Saint Paul legisiators, who have been a key partners and supporters of the planning process, have responded by passing enabling legislation for City creation of special design districts. These zelationships and concepu, developed during the planning process, are now paying off in initial unplementation phases. �iVTEGRATION OF LANA USES AND SYSTEMS Land use, transit and public infrastructure integration. The project will develop a neighborhood supermarket as the anchor of a mixed-use neighborhood commercial core along the neighborhood bus route and planned routes for LRT and express bus service. T'his mixed-use core already includes two neighborhood banks, a new neighborhood health clinic (just being completed), several smaller stores, and a number of apartment buildings. New/realigned streets and a wedand parkJpublic open space system wiil provide the framework for development of the Phalen Village mixed-use commerciai core, and a signature amenity that links Phalen Village with Phalen Park, enhances surrounding property values and helps attract quality commercial and residential development. Innovative/prototypical. The project is an innovative way of addressing the problem of a sprawling, obsolete auto-oriented commercial center for which a market does not now exist. It will create a more compact neighborhood commercial azea along existing and proposed public transit investments. It will transform vast expanses of unused asphalt and the largely vacant shopping center from a blighting influence on the area into a neighborhood signature natural amenity. It will demonstrate how such a public infrastructure invesunent can reverse declining tax base and help attract higher vatue housing and private sector investments. Model for replication. The project is a model for addressing the groblem of an obsolete auto-oriented commercial center for which a market does no[ now exist, and A-9 Phalen Village Pi1ot Project Application February 21, 1996 Page 1� {il� ��' �`� for collaborative development of a compact, mixed-use, more pedestrian- and transit- oriented neighborhood commercial azea, in size and offeririg services commensurate with mazket demand. It is also a model for restoring an environmental resource as a signature amenity to enhance the value of surrounding property, create a framework for new development, and to help attract qualiry private commercial and fugher-value residential development into a lower-income area. Linkages to employment. This project is part of a comprehensive master plan for the area that is designed to improve access to transit in the area, encourage/accommodate public investments in uansit to connect the area (which-is an urban neighborhood with a very high concentradon of low-income housing) with suburban communities and employment growth areas, and to encourage private commercial development along transit and other private development along a new road that provides project area residents expanded opportunities for private sector employment. PROJECT TEAM AND PART'NERSHIPS Participants. The acquisition of the shopping center site wili be done by the City of Saint Paul, with the Department of Public Works taking major responsibility for parcels designated for wetland construction and street realignments. Developable parcels will either be tro private developers immediately or held by the HIZA for to developers. The commercial development will be caried out by a priv possibly with participation by North East Neighborhoods Development Corporation. Type and nature of partnerships. The Phalen Village planning process, the first phase of the new neighborhood commercial core, and the �rst phase of ihe Phalen Wetiand Restoration Project have already created new partnerships among the City, the State, the watershed district, neighborhood residents, neighborhood businesses, the University of Minnesota, developers, and environmental groups. They have led to new community-buiiding social infrastructure. New organizations, the Phalen Village Business Association and the North East Neighborhoods Develogment Coiporation, are now key partners in implementing the plan. Phase one of the new commerciai core, the new corner drug store and new health clinic, are privately funded developments done as a direct result of neighborhood- based planning and support, and the City's ability to respond quickiy with the street reatignment project to provide needed access. The first phase of the Fhalen Wetland Restoration Project (in the area between Marytand and the south end of Lake Phalen) is a cooperative effon by the City, scate agencies, the Ramsey-Washington Metro A- 10 � Phalen Viilage Pilot Projec[ Application February 21, 1996 Page 11 IV. V. �'� "`�� Watershed District, neighborhood groups, and the University of Minnesota. It has fund'mg from the City, the State (LCMR and RIM), and the Minnesota Waterfowl Association. This project wi11 strengthen and build on these partnerships, and will leverage a number of public and private funding sources. FINNANCIAL SUMIVIARIES See Attachments A and B. CONTRIBVTTON OF FUNDING TO A LNABLE COMMUNITY There are several featuies which Demonstration Account funding would provide which would not otherwise occur. First, timing is critical for the Phalen Village pian to be successfuliy implemented. This funding would enable the city to begin actions to acquire the shopping center site this summer, when iu receivership period terminates, and before some other disposition of the property can occur. Ttus is a unique opportunity to move the redevelopment forward which wiil not come again. Second, Demonstration Account funding will enable the city to quickly leverage other private and public resources to enable the activaties described in this proposai to be fully funded. The other funds described will foilow a significant initial commitment of funds, and may in some cases be contingent on receiving the Demonstration Account funding. In addition, because this funding may be used for acquisition, it also will help to ensure that environmentat, transportation, and housing resources become available for construction in subsequent phases of the redevelopment. Third, these resources wilt enable the city to pursue both the shopping center acquisition and the grocery store relocation concuaendy. Absent this funding, the city will continue to pursue both, but one or the other component would have to be deferred, and it is difficult to defer either. The shopping center's availabiliky in tbe future is unlikely, and failure to prompily replace the grocery store when it closes decreases the likelihood that it wiil be replaced as shoppers develop other patterns. Finally, Demonsuation Account funding will make a significant contribution to reviving neighborhood confidence and pride. These attitudes have tangibte�economic consequences: willingness to shop in the neighborhood, willingness to buy a home nearby (or invest in improvemen[s, or not sell), willingness to locate a business in the A- 11 q�l -`-�n S Phalen Village Pi1ot Project Appiication February 21, 1996 Page 12 azea. Prompt, lazge scale successful redevelopment efforts in the area will produce mazked changes in the economy of the area, and these spinoff effects may not occure to a significant extent but for an investment like this in Phalen Village. 'VI. CURRENT ACTIVITIES, PROPOSED PROCES5 Phase one of the of the commercial core is nearing compledon. Projecu included in this phase include: - The new Waigreens drugstore at the corner of Maryland and Prosperity opened in November, and is wildly successful, doing a great deal more business than the developer anticipated. - The new HealthEast clinic is nearing completion, with occupancy projected for April. The realignment of Prosperiry Avenue between Maryland and Rose is expected to be completed in March. The timing is right for a neighborhood supermarket to build on ffiese success. The existing supermarket in the shopping center, which does not fit this market niche, will soon close. A smaller supermarket which fits this niche is of critical importance to the neighborhood, and particulariy to low-income residents who don't have good access to other supermarkets. Phalen Shopping Center is now in receivership, and will be on the market in June, 1996. The timing is right to acquire the center and begin development of the wedand park/public open space system that will be a framework for Phalen Village redevelopment and a linchpin for integrated activity to create a livabie community. VII. PT20JECT SCHEDULE See Attachment C. VIII. LOCAL GOVERNMENT SUPPOIiT See attached letter of support from the Mayor. A-12 � �(�}-�� Livable Communities Demonstration Account (4CDA} Pilot Project Application � ATfAGHMENT A 5UNfl1t1ARY FINANClAL INFORMATlUN 1. Tota[ Ptvjact Cost Totat Sott Cast Toiat Hard Cost Public 2,800,0 280,60 ' 2,520,000 Prhtate �:� �� : t�� 1,872,000 2. What uso(s) are you propoalog for Demonstration Aecourd funds7 LCOA :�� :� �� Site aasembly and prepazacion for Phalen Village wecland res[omtion project, ghase 2; and Phalen Viliage commercial redevelopment projecc, phase 2. 3, Are you requesting e loan or a graRt? Grant d, WhM ir tho status at financial aommittmarsta for thi� pro}ect? Funding for phase 1 of both the wefland restoration and commcrcial redevelopment projects is in place. Funding for phase 2 of 6oth componenrs is pendino or wIll be submitted in the near funue• � s. Vdhen wYf you neeC Demorzsvation Accourt funds? June, 1996 i.cnnaaPi �ra A-13 � � � <Q �� m� �� [.� � O ({ �� Qp E'!� � T� a < L � � w U a � 3 � U u � o ° o ° 0 0 ° o o 0 0 0 p p � N � t� K R � � Q 4 � �' � o n. E' � � � V G y � W � � V G��!' V� $ � �� g � Sg N � g �� °? Q N o Y U d w �. O � U . 7 a� � V y � a u u o. u go� g 000� o �� 0 ^+ N N o o o 0 0 0 g o S � ._„ ; : ;:_:. _': `�� ° � � $.:,:, .. �� '�'�:. ��-°000 =� �AE�°- ., .: � •-- _ � � � _°��;��a z�v°� a < �� ¢a" �o ��' o ��u" o �,�a , . , �°:: , , r y .. . .. � �� , �-L� � � � � � ti � � � � � . � � � � s s � .� � r � � M t •� . � s � �� .� : II� A- 14 «:��», � a� -�t�S 199_ 199_ t99, Shopping center redevelopmenU wetland restoration - Acquisition - Demotition/ site preparation - Design/ engineering - Wetland restoration Grocery store/ commercial redevelopment - Site assembly - Construction A - 15. � � ��,N?S ATTACHII�NT B GRANC FUND D7SBURSEMENT SCHEDULE The total grant amount specified in paragraph 2.01 of this agreement shall be disbursed to the Grantee for uses consistent with this agreemeat according to the following schedule: The Council will disburse grant funds in response to written disbursement requests submitted by the Grantee and reviewed and approved by the Council. Written disbursement requests shall indicate the development activity funded by this agreement, the contractor(s)/vendor(s) to be paid, and the time period within which the development activity was or will be performed. Disbursements prior to the performance of a development activity will be subject to terms and conditions mutually agreed to by the Council's authorized agent and the Grantee. Individual disbursement requests should specify the project or activity to be funded and identify dollar amounts by project or activity. Subject to verification of a written disbursement request and approval for consistency with this agreement, the Council will disburse a requested amount to the Grantee within two (2) weeks after receipt of a written disbursement request. TF an di� � . q�-�� ATTACHNIENT C WRITTEN REPORTS AND SUBNIISSION SCHEDiLE Beginning three (3) months after the Grantee initially receives grant funds, the Grantee shall submit to the Councii written quarterly reports which shall contain at least the following elements: A summary of grant funds received and expended to date, including a descripuon of the purposes or uses for which the grant funds were eJCpended; and • A statement of expected grant fund expenditures within the next quarter. The Grantee's final written quarterly report shall be submitted wittrin two (2) months following the expenditure of all grant funds by the Grantee and shall contain a certification by the Grantee's chief financial officer that all grant funds have been eapended in accordance with this agreement and the provisions of the Metropolitan Livable Communities Act. The Grantee also shall complete and submit to the Council a Monitoring and Evaluation Report which will assist the Council in monitoring and evaluating the implementation of the Livable Communities Demonstration Account program. The contents, format and completion date of the Monitoring and Evaluation Report will be deternuned by the Council. AUTHORIZED AGENT The CounciPs authorized agent for the purposes of administering this agreement is Joanne Bazron or another designated Council employee. The written report(s) submitted to the Council shall be directed to the attention of the Council's authorized agent at the following address: Metropolitan Council Meazs Pazk Centre 230 East Fifth Street Saint Paul, Minnesota 55101-1634 �