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Park Rapids council approves SCDP administration contract and a suite of program policies
Summary
The Park Rapids City Council unanimously approved a contract with Heartland Lake Development Commission to administer a Small Cities Development Program (SCDP) grant and adopted required SCDP policies including an anti-displacement plan, Section 3 recruitment rules, a local income plan and a drug-free workplace policy.
The Park Rapids City Council on Feb. 25 voted unanimously to have the Heartland Lake Development Commission administer the city’s Small Cities Development Program (SCDP) grant through the Minnesota Department of Employment and Economic Development (DEED) and adopted a package of policies required for the program.
City Administrator Angel Weasner said the contract with HLDC will allow HLDC to administer the SCDP grant on the city’s behalf and that she and city staff had reviewed and recommended approval. “This is part of the Small Cities Development Program grant,” Weasner said. The council approved Resolution No. 2025-50 to formalize the contract.
Staff and council also adopted the Residential Anti-Displacement and Relocation Assistance Plan, which state and federal SCDP rules require. Mary Thompson told the council the policy is intended to ensure rehabilitation funded by SCDP will not cause resident displacement; the council approved Resolution No. 2025-51.
The council approved an Excessive Force Policy related to SCDP that staff described as affirming individuals’ rights to peaceful demonstrations (Resolution No. 2025-52). Council members also adopted a Section 3 Plan requiring the city to attempt to recruit low-income and minority-owned businesses for program contracting opportunities and to require contractors to submit Section 3 self-certification forms.
Council members approved the SCDP Local Income Plan, which staff said establishes how program income will be handled. Under the plan, multi-family and mixed-use projects supported by forgivable deferred loans would be eligible for loan forgiveness after seven years; commercial rental rehabilitation would be split so half is a forgivable deferred loan (forgivable after seven years) and half is repayable at a 1% interest rate, with program income set aside for future relending under the same SCDP requirements.
Finally, the council adopted a Drug Free Workplace policy, which staff said largely confirms the city’s existing workplace policy. All SCDP-related resolutions passed on unanimous votes.
The approvals allow staff to move forward with SCDP implementation and to begin processing applications and contractor outreach under the adopted rules.
