Item Description:
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Neg Brownfields Revolving Loan Fund Agmt PR00008854 with Trellis Co. for cleanup of the Cheatham Apartments property in Minneapolis, NTE $710,000
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Brownfields Revolving Loan Fund Agreement PR00008854 with Trellis Co., or an affiliated entity, for a period of eighteen years and in an amount not to exceed $710,000; 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.
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Background:
Hennepin County administers the Brownfields Revolving Loan Fund (BRLF) program with funds made available through the U.S. Environmental Protection Agency (EPA). Since program inception, the county has been awarded more than $10 million in EPA BRLF grants to stimulate reuse and redevelopment of contaminated sites (Resolution 99-11-811).
Through the BRLF, the county can facilitate zero to low-interest loans for environmental cleanup of sites contaminated with petroleum and hazardous substances as well as sites requiring lead-based paint and asbestos abatement.
Trellis Co. or an affiliated entity will use the BRLF to help cover costs associated with abatement and cleanup at a former grain storage facility in Minneapolis, located at 3716 Cheatham Avenue. The site is being redeveloped into an estimated 98 units of affordable housing.
Eligible BRLF applicants include municipalities, economic development agencies, housing and redevelopment authorities, other local public entities, nonprofit organizations, public companies, private for-profit companies, and other interested parties. Loan repayments to Hennepin County are used by the county to fund other brownfield assessment and cleanup activities. As a condition of the county’s agreement with the EPA, up to half of the current amount can be distributed as forgivable loans or subgrants.
Current Request: This request is to authorize the County Administrator to negotiate BRLF Agreement PR00008854 with Trellis Co. for a period of 18 years and in an amount not to exceed $710,000.
Impact/Outcomes: The loan will provide funding for environmental clean-up costs that will help facilitate the redevelopment of an abandoned grain storage facility along the METRO Blue Line in Minneapolis into new affordable housing.
This project supports many county priorities including disparity elimination, climate action, and transit-oriented development goals.
This request funds services that are: core services
recommendation
Recommendation from County Administrator: Recommend Approval