Item Description:
title
Neg fall 2024 ERF grant agmts with various entities for one or two-year periods, total combined NTE $2,165,055; neg ERF grant agreement PR00006819 with Habitat for Humanity for costs incurred 01/21/20-12/31/25, NTE $97,183
end
Resolution:
body
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 one or two years beginning on the dates of execution:
• Agreement PR00007040 with the City of Lakes Community Land Trust or affiliated entity, in an amount not to exceed $480,000
• Agreement PR00007038 with the City of Minneapolis, in an amount not to exceed $777,265
• Agreement PR00007037 with the City of Minneapolis, in an amount not to exceed $364,134
• Agreement PR00007034 with Debre Selam Medhanealem Ethiopian Orthodox Tewahedo Church, in an amount not to exceed $81,057
• Agreement PR00007036 with Hennepin County Housing and Economic Development Department, in an amount not to exceed $300,000
• Agreement PR00007039 with Medina Apartments, LLC or affiliated entity, in an amount not to exceed $79,779
• Agreement PR00007035 with the Minneapolis Park and Recreation Board, in an amount not to exceed $82,820; 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; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Environmental Response Fund grant agreement PR00006819 with Twin Cities Habitat for Humanity, for costs incurred during the period of January 21, 2020 through December 31, 2025 in an amount not to exceed $97,183; 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.
end
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 496 projects totaling more than $78.4 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 August 2024, the county solicited proposals from municipalities and nonprofit and for-profit developers, receiving 11 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 applications were recommended for award.
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 seeks authorization for the County Administrator to negotiate ERF grant agreements during various periods, with the total combined amount not to exceed of $2,165,055.
The Fall 2024 ERF requests recommended for funding are summarized as follows and are described in the attached report, Environmental Response Fund Fall 2024 Funding Recommendations.
• Cheatham Apartments, Minneapolis - $777,265 for soil cleanup, asbestos and lead abatement, demolition, and underground storage tank removal. (Grantee: City of Minneapolis on behalf of Trellis Co.)
• CLCLT Homes - Fall 2024, Minneapolis - $480,000 for asbestos and lead-based paint abatement associated with the rehabilitation of 21 affordable owner-occupied single-family homes. (Grantee: City of Lakes Community Land Trust)
• Debre Selam Medhanealem Ethiopian Orthodox Tewahedo Church, Minneapolis - $81,057 for additional soil cleanup costs associated with the development of a church. (Grantee: Debre Selam Medhanealem Ethiopian Orthodox Tewahedo Church)
• Hamel Road Apartments, Medina - $79,779 requested for soil cleanup, disposal of contaminated groundwater, and soil gas vapor assessment costs associated with the development of a multi-unit, market-rate residential building. (Grantee: Medina Apartments, LLC)
• Hennepin Lead-Safe Housing - $300,000 for continued assistance of a countywide program that performs lead-based paint abatement in residential homes occupied by low-income households with young children. ERF funds are used as matching funds to the HUD Office of Lead Hazard Control and Healthy Homes FY22 Lead Hazard Reduction Grant to create at least 300 lead-safe housing units by the end of 2026. (Grantee: Hennepin County Housing and Economic Development)
• The Springs, Minneapolis - $364,134 for soil cleanup, soil gas vapor mitigation system installation, demolition, and lead dust and asbestos abatement associated with renovation of an existing residential building and construction of an additional four-story multi-unit residential building. (Grantee: City of Minneapolis on behalf of Minneapolis Public Housing Authority)
• Whittier Park, Minneapolis - $82,820 for soil cleanup costs associated with park amenities, stormwater infiltration, and landscape renovation. (Grantee: Minneapolis Park and Recreation Board)
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.
Additionally, this request seeks approval for the County Administrator to negotiate and sign ERF grant agreement PR00006819 with Habitat for Humanity Inc. for costs incurred during the period of January 21, 2020 through December 31, 2025 in an amount not to exceed $97,183 for soil cleanup, environmental monitoring, reporting, Minnesota Pollution Control Agency fees and vapor mitigation work. This agreement is related to Habitat for Humanity’s 2019 Environmental Response Fund grant agreement PR00001877 (Resolution 20-0041). Due to unforeseen circumstances during the global pandemic, the project was delayed and cleanup extended past the deadline. The new agreement, PR00006819, is needed to reflect the entirety of the work.
Impact/Outcome:
The recommended ERF grant awards will fund soil cleanup, vapor mitigation, asbestos and lead abatement, and pre-development assessments. The awards will also assist developments that increase the tax base, create permanent jobs, and create affordable and moderately priced market-rate housing. The recommended grants support the renovation or construction of 89 market-rate and 346 affordable housing units.
ERF grants reduce environmental contamination and support projects in communities with disparities in health, housing, employment, and income. Three of the grant awards will reduce environmental contamination in environmental justice areas as identified by the Minnesota Pollution Control Agency. 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