Item Coversheet

Board Action Request
18-0275

Item Description:
Neg various agmts with the MN Dept of Employment and Economic Development and Hennepin Center for the Arts to accept $4,400,000 in grant funds on behalf of Hennepin Center for the Arts
Resolution:

BE IT RESOLVED, that Hennepin County act as legal sponsor for the Hennepin Center for the Arts project specifically named in Laws of 2017 First Special Session, Chapter 8, Article 1, Section 20, Subdivision 10, and in Laws of 2018 Regular Session, Chapter 214, Article 1, Section 21, Subdivision 12, to make improvements and betterments of a capital nature to renovate the historic Hennepin Center for the Arts (Project); and

 

BE IT FURTHER RESOLVED, that the county has the legal authority to receive financial assistance, and the institutional, managerial, and financial capacity to ensure adequate Project administration; and

 

BE IT FURTHER RESOLVED, that the sources and amounts of the local match identified in the state appropriations are committed to the Project; and

 

BE IT FURTHER RESOLVED, that the county may enter into Grant Agreement A188957 with the Minnesota Department of Employment and Economic Development for the receipt of $4,400,000, and such other agreements as may be necessary to complete the above-referenced Project; and the county may certify that it will comply with all applicable laws and regulations as stated in such agreements; and

 

BE IT FURTHER RESOLVED, that the county may enter into Use Agreement A188958 with Hennepin Center for the Arts, API, to operate the Hennepin Center for the Arts as a center for the arts to provide space for performing, teaching, studio and office facilities for artists and nonprofit organizations; and the county may enter into such other agreements as may be necessary to complete the Project; and

 

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate the terms and provisions of the agreements; that following review and acceptance by the County Attorney’s Office, the Chair of the County Board be authorized to sign the agreements and any other related documents on behalf of the county; and that the Controller be authorized to disburse funds as directed; and

 

BE IT FURTHER RESOLVED, that the County Administrator is directed, consistent with Minnesota Statutes, Section 16A.695 and the related Amended Commissioner’s Order, to conduct an annual review of the activities and budget of the Hennepin Center for the Arts and verify annually that the Hennepin Center for the Arts is carrying out the governmental program for which the state grant was approved.

Background:

At the request of Hennepin Center for the Arts, the Hennepin County Board in Resolution 16-0403S2S2, supported the request of Hennepin Center for the Arts to pursue state funding to finance capital improvements to the Masonic Temple (Project), which is a part of the Cowles Center for the Performing Arts (which also includes the renovated Schubert Theater building and a connecting glass atrium). The Masonic Temple is located at 528 Hennepin Avenue in downtown Minneapolis.

 

Pursuant to the Laws of 2017 First Special Session, Chapter 8, Article 1, Section 20, Subdivision 10, the 2017 legislature authorized a $3,000,000 grant to Hennepin County for the Project as follows:

 

“From the general fund for a grant to Hennepin County for improvements and betterments of a capital nature to renovate the historic Hennepin Center for the Arts. This appropriation is not available until the commissioner of management and budget determines that an amount sufficient to complete the project has been committed from nonstate sources.”

 

This year the legislature authorized an additional $1,400,000 for the Project (Laws of 2018 Regular Session, Chapter 214, Article 1, Section 21, Subdivision 12) as described below:

 

“From the general fund in fiscal year 2019 for a grant to Hennepin County for improvements and betterments of a capital nature to renovate the historic Hennepin Center for the Arts. This appropriation is in addition to the appropriation in Laws 2017, First Special session chapter 8, article 1, section 20, subdivision 10, and no further nonstate contribution is required.”

 

Both grants will be combined in one grant agreement.

 

This grant is funded with state general fund cash and the county will not have to assume ownership of the financed facility, as is required for projects that receive grants funded with the proceeds of state bonds. The county is required to enter into a use agreement with Hennepin Center for the Arts to ensure that the grant funds are used as intended.

 

In December 2015, a $3 million gift was received from Caroline Amplatz to provide the private matching funds required to access the state funds appropriated in 2017. Minnesota Management and Budget has confirmed that this gift satisfies the matching funds requirement. Representatives of the Hennepin Center for the Arts have indicated that they have sufficient funds to complete the Project.

 

The Project will consist of complete removal of existing elevators and installation of two new code compliant elevators; tuckpointing and brick repair to 100% of the exterior envelope, as well as repairs to the stone base as necessary to preserve the historic exterior, prevent further deterioration and damage and prevent damage to interior spaces; and complete roof replacement and repairs, including insulation and decorative flashing. It is currently anticipated that the necessary repairs and improvements will begin this year and be completed in 2019.

 

Over 25 organizations lease space in the Masonic Temple, including Minnesota Dance Theater, James Sewall Ballet, and the Twin Cities Gay Men’s Chorus. In addition, the Cowles Center is committed to distance learning and bringing together top artists to conduct classes and lessons via video in school classrooms across the state.

Recommendation from County Administrator: No Recommendation