Item Description:
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Neg 10 spring 2023 ERF grant agmts for cleanup of contaminated sites, two-year periods, total combined NTE $1,556,121
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate the following Environmental Response Fund grant agreements for the cleanup of contaminated sites, during periods of two years beginning on the dates of execution:
• Agreement PR00005456 with the City of Minneapolis, with the amount not to exceed $34,370;
• Agreement PR00005452 with the City of Minneapolis, with the amount not to exceed $54,081;
• Agreement PR00005453 with the Minneapolis Park and Recreation Board, with the amount not to exceed $359,402;
• Agreement PR00005459 with the City of Minneapolis, with the amount not to exceed $76,400;
• Agreement PR00005454 with the City of Minneapolis, with the amount not to exceed $177,900;
• Agreement PR00005455 with the City of Minneapolis, with the amount not to exceed $86,551;
• Agreement PR00005457 with the City of Minneapolis, with the amount not to exceed $315,000;
• Agreement PR00005451 with RS EDEN or affiliated entity, with the amount not to exceed $76,467;
• Agreement PR00005458 with the City of Minneapolis, with the amount not to exceed $93,950;
• Agreement PR00005450 with the City of St. Louis Park Economic Development Authority, with the amount not to exceed $282,000; and
BE IT FURTHER RESOLVED, that following review and approval by the County Attorney's Office, the County Administrator be authorized to sign the agreements on behalf of the county; that costs incurred by the grantees after the board approval date be eligible for reimbursement upon execution of the agreements; that the County Administrator be authorized to approve extensions of a 12-month period to the agreements; and that the Controller be authorized to disburse funds as directed.
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Background:
The Environmental Response Fund (ERF) helps revitalize sites by providing funds to assess and clean up contamination. The grants reduce barriers to site improvement or redevelopment caused by the added costs of environmental cleanup and lessen the risk to human health and the environment posed by the contamination.
Minnesota Statutes, sections 383B.80 and 383B.81, authorize the county to collect a mortgage registry and deed tax for the purpose of establishing an environmental response fund. The board established the ERF in 1997 (Resolution 97-06-410R1) and authorized the grant program in 2001 (Resolution 01-615).
Since 2001, ERF has funded 458 projects totaling $68,682,505.
Projects supported by ERF grants provide a variety of community benefits, including creating affordable and moderately priced housing, supporting economic development, improving green space, and making infrastructure improvements. Many ERF grants address environmental contamination in communities with significant disparities in health, including low-income areas and communities of color. Some of these sites become catalysts for new development in neighboring areas, which can help address racial disparities in housing, employment, and income.
As a major economic center for 150 years, the county has a concentration of contaminated sites. Much of this contamination was caused by chemical spills or improper disposal of hazardous waste prior to the existence of environmental regulations. These improper disposal practices of the past can still cause soil and groundwater pollution that present environmental risks today. In addition, many buildings in Hennepin County, particularly in Minneapolis and the inner ring suburbs, were constructed prior to 1970 when the use of asbestos and lead-based paint was prevalent.
Current Request: This request is to authorize the County Administrator to negotiate 10 ERF grant agreements during various periods, with the total combined amount not to exceed $1,556,121.
In March 2023, the county solicited proposals from municipalities and nonprofit and for-profit developers. In an effort to maximize collaboration between funders, the timing of the ERF grant round coincides with additional contamination cleanup grant programs administered by the Minnesota Department of Employment and Economic Development and the Metropolitan Council.
The county initially received 11 applications; however, one applicant withdrew its application. A committee of staff from Environment and Energy, Housing and Economic Development and Resident and Real Estate Services reviewed the grant applications and recommended funding 10 projects. Applications were evaluated on:
• eligibility,
• project need,
• degree of contamination,
• appropriateness of the cleanup approach,
• creation or preservation of affordable and/or moderately priced market-rate housing,
• creation of economic development, and
• the readiness of the project to proceed.
The spring 2023 ERF applications recommended for approval are summarized as follows and are described in the attached report, Environmental Response Fund Spring 2023 Funding Recommendations.
• Fare Game Restaurant, Northeast Minneapolis - $34,370 for soil vapor testing and vapor mitigation costs associated with the development of a restaurant. (Grantee: City of Minneapolis on behalf of Black Duck Holdings)
• 1301 West Lake Apartments, South Minneapolis -$54,081 for soil cleanup costs associated with the construction of 120 affordable housing units with 24 set aside for households that were formerly experiencing homelessness. (Grantee: City of Minneapolis on behalf of CommonBond Communities)
• MPRB - Bethune Park, North Minneapolis - $359,402 for soil cleanup costs associated with the redevelopment of the park which will include construction of athletic fields. (Grantee: Minneapolis Park and Recreation Board)
• Unity Building, South Minneapolis - $76,400 for soil cleanup costs associated with the redevelopment of a multi-tenant commercial building. (Grantee: City of Minneapolis on behalf of Grass Roots LLC)
• Agate Housing, South Minneapolis - $177,900 for soil cleanup costs associated with the redevelopment of a 48 unit affordable and supportive housing project with 24 units set aside for high priority households that are experiencing homelessness and 8 set aside for people with disabilities. (Grantee: City of Minneapolis on behalf of Trellis Co.)
• Envision Community Penn Avenue, North Minneapolis - $86,551 for soil cleanup costs associated with the redevelopment of 20 units of affordable micro-housing for people experiencing homelessness. (Grantee: City of Minneapolis on behalf of Envision Communities, Inc.)
• Snelling Yards Family Housing, South Minneapolis - $315,000 for soil cleanup and vapor mitigation costs associated with the redevelopment of 90 units of affordable housing with a portion of units targeted to veterans experiencing homelessness. (Grantee: City of Minneapolis on behalf of Snelling Yards Family Housing)
• RS EDEN House, South Minneapolis - $76,467 for vapor mitigation installation costs at the RS EDEN House which provides supportive housing for people who live well below the poverty line. (Grantee: RS EDEN)
• Stinson Apartments, Northeast Minneapolis - $93,950 for soil cleanup costs associated with redevelopment of 24 mixed, market-rate and affordable apartment units. (Grantee: City of Minneapolis on behalf of 1714 E Hennepin LLC)
• Wooddale Station, St. Louis Park - $282,000 for soil cleanup and vapor mitigation costs associated with the redevelopment of a 315 unit multifamily, mixed affordable and market-rate housing building with ground level commercial space. (Grantee: City of St. Louis Park Economic Development Authority on behalf of Wooddale Station, LLC)
This request also seeks approval for the county administrator to sign the agreements; allows the grantees to incur costs after the board approval date, with reimbursements being paid upon execution of the grant agreements; and authorizes the county administrator to approve extensions of a 12-month period to the grant agreements.
Impact/Outcome: The recommended ERF grant awards will fund soil cleanup and vapor mitigation. The awards will also assist developments that increase the tax base, create permanent jobs, enhance green space, and create affordable and moderately priced market-rate housing. The recommended grants support the renovation or construction of 381 affordable housing units and 271 units of market-rate units.
ERF grants reduce environmental contamination and support projects in communities with disparities in health, housing, employment, and income. Many of the projects supported by these grants include the construction or renovation of buildings that incorporate sustainable features, including electric vehicle infrastructure, a solar array, and stormwater management, which support the county’s climate action goals.
recommendation
Recommendation from County Administrator: Recommend Approval