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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Administration & Finance Item: Submit a joint Application for EDA Grant funds and enter into a Memorandum of Understanding with the Montana Sustainable Building Center Date: February 19, 2010 Prepared by: Ellen Buchanan Initiated by: Mayor John Engen Action Required: Authorize the Mayor to sign a grant application to the Economic Development Administration, in conjunction with the Montana Sustainable Building Center (MSBC), for $1,400,000 in grant funds to purchase and develop property located at 1515 Wyoming Street as a regional center for the advancement of environmentally sustainable products, methods and building technologies. Further authorize the Mayor to enter into a Memorandum of Understanding with MSBC which describes the endeavor, the relationship between the City and MSBC and defines MSBC’s responsibility to maintain the use of the property in accordance with EDA requirements for the term of the grant and defines the remedy in the event EDA should foreclose on its lien against the property due to dissolution of MSBC. Recommended Motion: Move approval to authorize the Mayor to sign the Application for Investment Assistance to the Economic Development Administration and enter into the attached Memorandum of Understanding with the Montana Sustainable Business Center. Timeline: Referral to committee: February 22, 2010 Committee discussion: February 24, 2010 Council action: March 1, 2010 Public Hearing: NA Deadline: March 8, 2010 Background and Alternatives Explored: EDA requires a non-profit applicant to have a governmental entity as a co-applicant for EDA grant funds. The Montana Sustainable Building Center is located within the City of Missoula and within the boundary of Urban Renewal District II; therefore, the City is the appropriate co-applicant and is critical to the success of this application. A preliminary application has been submitted to EDA and, after review, EDA has invited MSBC and the City to submit a formal application for the funding. The grant of $1,400,000, if approved, it critical to the success of the project to create a sustainable building center, dedicated to “green” building products and practices, on the corner of ---PAGE BREAK--- Russell and Wyoming Streets. Without the City as a co-applicant, EDA will not consider the application and the project will be put in jeopardy. Financial Implications: The Memorandum of Understanding protects the City from any financial risk. Should the EDA foreclose on the lien and look to the City to manage the property as an economic development driver, MSBC will be obligated to transfer the property to the City at no cost to the City. At that point the City will have a substantial resource located in an active Urban Renewal District. URD II will not sunset until 2031 and the term of the EDA grant is 15 years, well within the life of the District. Attachments: Memorandum of Understanding