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Department Approval k" REQUEST FOR COUNCIL ACTION Date: 9/12/2011 Item No.: 7.1 City Manager Approval .A A A Item Description: Approve Agreements for the use of LCDA and LHIA grants; Approve Mortgage and Subordination and Disbursement Agreements, and Assignments of the TIF and PUD Development Agreement and Note for the Sienna Green Phase 11 project. 2 As part of the upcoming loan closing and commencement of the Sienna Green Phase 11 project, there is 3 a series of documents that need to be executed between the City, the new limited partnership, Sienna 4, Green 11, which will be AEON's ownership entity for the Phase 2 project, and with its lenders, U.S. 5 Bank (for construction financing) and Minnesota Housing Finance Agency (for permanent financing). 6 The documents are explained below. "7 'A. Documents Between the City and AEON/Sienna Green 11 Limited Partner 8 In 2009, the Metropolitan Council awarded the City of Roseville a grant on behalf of Aeon's Sienna 9 Green Phase II —a X202,1 Livable Communities Demonstration Account (LCDA) grant for a 110 pathway from the project north to County Road B built by the City and additional pathways on the 11 development site and stormwater management improvements. 12 As the work is completed on the City-built trail to County Road B and Phase 11 of Sienna Green is 13 slated to begin later this fall, it is now time to enter into a Memorandum of Understanding (MOU) with 14, Sienna Green H regarding the expenditure and reimbursement of the remaining LCIDA funds (minus 15 the costs for constructing the trail to County Road B, which will be reimbursed directly to the City). 116 [See Attachment A] . 1 "7 The MOU identifies $, 149,668 of the original LCDA grant as being tied to site improvements as part of 11111"I'.11,11 the Sienna Green Phase 11 project. This MOU is similar to the documents that the City has entered into 119 regarding the disbursement of Metropolitan Council grant dollars. 2o The City Attorney is also proposing to amend the already existing MOM foie the LHIA grant received 2 1 from the Metropolitan Council to add language identical to the LCDA MOU regarding the provision of 22 information by Sienna Green 11 to the City for reporting requirements to Metropolitan Council. In 23 addition, the City Attorney has drafted a document Assigning the L A MOU to Sienna Green 11. (See 24, Attachments B and Q. 25 In order to maximize the tax credits available to this project and similar to what was done in 2009 as 26 part of Phase I of the project, the developer is requesting that the City and the limited partnership enter 27 into a mortgage agreement for the $,449,668 in grant funds received from Metropolitan Council (LHIA Page I of 3