Item Description:
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Neg various 2025 ERF grant agmts, total NTE $1,866,428; neg ERF grant Agmt PR00007667 with St. Louis Park Economic Development Authority for costs incurred 02/11/22-05/10/26, NTE $177,000; and Amd 2 to Agmt PR00004512 for ERF grant funding with St. Louis Park Economic Development Authority, ext end date to 11/15/27, no change to NTE
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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, for periods of one and two years beginning on the dates of execution:
• Agreement PR00007634 with Clare Housing or affiliated entity, in an amount not to exceed $68,120;
• Agreement PR00007635 with the Little Earth of United Tribes Housing Corporation or affiliated entity, in an amount not to exceed $135,058;
• Agreement PR00007633 with Minnesota Brownfields, in an amount not to exceed $400,000;
• Agreement PR00007639 with the City of Minneapolis, in an amount not to exceed $500,000;
• Agreement PR00007637 with the City of Rogers, in an amount not to exceed $150,000;
• Agreement PR00007638 with the Three Rivers Park District, in an amount not to exceed $477,000; and
• Agreement PR00007636 with the City of St. Anthony Village, in an amount not to exceed $136,250; 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.
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Environmental Response Fund grant agreement PR00007667 with St. Louis Park Economic Development Authority, for costs incurred during the period of February 11, 2022 through May 10, 2026 in an amount not to exceed $177,000; that upon review and approval by the County Attorney’s Office, the County Administrator be authorized to sign the agreement on behalf of the county; and that the Controller be authorized to disburse funds as directed.
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Amendment 2 to Environmental Response Fund Agreement PR00004512 with the St. Louis Park Economic Development Authority extending the end date to November 15, 2027; that following review and approval by the County Attorney’s Office, the County Administrator be authorized to sign the agreement on behalf of the County; 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 ERF. 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 503 projects totaling $80.6 million. Projects supported by ERF provide a variety of community benefits, including creating affordable and moderately priced housing, supporting economic development, 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.
In February 2025, the county solicited proposals from municipalities and nonprofit and for-profit developers, receiving nine applications. Applications were evaluated on project need, the risk posed by the contamination and the appropriateness of the cleanup approach, creation or preservation of affordable and/or moderately priced market-rate housing, the fostering of economic development, and the readiness of the project to proceed. 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. Seven of nine applications were recommended for award. The Metropolitan Council is funding the remaining two applications.
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 ERF grant agreements during various periods, with the total combined amount not to exceed $1,866,428.
The seven Spring 2025 ERF projects recommended for funding are summarized as follows and are described in the attached report, Environmental Response Fund Spring 2025 Funding Recommendations.
• Clare Apartments, Minneapolis - $68,120 for additional assessment and installation of a soil vapor mitigation system in an existing affordable housing building. (Grantee: Clare Housing or affiliated entity)
• Little Earth Housing, Minneapolis - $135,058 for soil vapor mitigation system associated with the renovation of existing affordable housing. (Grantee: Little Earth of United Tribes Housing Corporation or affiliated entity)
• Minnesota Brownfields Brownfield Gap Financing Program - $400,000 to continue the Brownfields Gap Financing Program, which provides small environmental grants to government entities, non-profit organizations, and emerging developers. (Grantee: Minnesota Brownfields)
• Northeast Green Campus Expansion, Minneapolis - $500,000 for disposal of contaminated soils and installation of active vapor mitigation system in a new affordable housing building. (Grantee: City of Minneapolis on behalf of Mississippi Watershed Management Organization)
• Rogers Civic Campus Gateway Development, Rogers - $150,000 for soil cleanup associated with the development of a new city hall, police department and public plaza. (Grantee: City of Rogers)
• Sochacki Park Water Quality Improvements, Robbinsdale - $477,000 for soil cleanup associated with the development of stormwater management ponds and landscaping improvements at an existing park. (Grantee: Three Rivers Park District)
• Tibyan Community Center, Minneapolis - $136,250 for the installation of an active vapor mitigation system and sump reroute associated with the redevelopment of the building for use as a community center. (Grantee: City of St. Anthony Village)
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.
This request also seeks approval for the County Administrator to negotiate and sign a second amendment to ERF grant agreement PR00004512 with St. Louis Park Economic Development Agency. This agreement was awarded for soil cleanup and soil vapor mitigation at the Wooddale Station Redevelopment project site to facilitate construction of new market-rate and affordable housing and commercial space (Resolution 22-0297). Due to delays in the project timeline from project staff turnover and changing developers, an additional extension is being requested. No ERF eligible costs have been expended to date, leaving the full balance of $239,000.
This request also seeks approval for the County Administrator to negotiate and sign ERF grant agreement PR00007667 with St. Louis Park Economic Development Agency for costs incurred during the period of February 11, 2022, through May 10, 2026 in an amount not to exceed $177,000 for abatement activities, environmental oversight, contaminated soil transport and disposal, lead-contaminated soil stabilization, vapor mitigation installation and monitoring, associated consulting activities, and associated Minnesota Pollution Control Agency fees. This agreement is related to St. Louis Park Economic Development Agency’s 2022 Environmental Response Fund grant agreement PR00004027 (Resolution 22-0036) for the Union Park Flats project. This project has been delayed due to project staff changes. The new agreement, PR00007667, is needed to reflect the entirety of the work.
These grant awards are funded by the Environmental Response Fund and are in the 2025 budget.
Impact/Outcome:
The recommended ERF grant awards will fund soil cleanup, vapor mitigation, and pre-development assessments. The awards will also assist developments that increase the tax base, create permanent jobs, create new stormwater management features, and create and preserve affordable housing. The recommended grants support the renovation or construction of 277 affordable housing 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, which support the county’s climate action goals.
recommendation
Recommendation from County Administrator: Recommend Approval