Item Description:
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Neg various 2025 fall ERF grant agmts for one or two-year periods, combined total NTE $2,252,887
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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 PR00008202 with the St. Louis Park Economic Development Authority, in an amount not to exceed $153,525,
• Agreement PR00008172 with the City of Hopkins, in an amount not to exceed $800,000,
• Agreement PR00008175 with the City of Lakes Community Land Trust, in an amount not to exceed $140,000,
• Agreement PR00008176 with the City of Minneapolis, in an amount not to exceed $27,400,
• Agreement PR00008173 with 200 Lake Street LLC or affiliated entity, in an amount not to exceed $200,000,
• Agreement PR00008171 with the City of Minneapolis, in an amount not to exceed $185,514,
• Agreement PR00008170 with the St. Louis Park Economic Development Authority, in an amount not to exceed $440,000,
• Agreement PR00008174 with the City of Minneapolis, in an amount not to exceed $106,448, and
• Agreement PR00008169 with Bader Development, LLC or affiliated entity, in an amount not to exceed $200,000.
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 properties by providing funds to assess and clean up contamination. The grants reduce barriers to site improvements 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 510 projects totaling $82.6 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 August 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. All nine applications are 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 is to authorize the County Administrator to negotiate ERF grant agreements during various periods, with the total combined amount not to exceed $2,252,887.
The nine Fall 2025 ERF projects recommended for funding are summarized as follows and are described in the attached report, Environmental Response Fund Fall 2025 Funding Recommendations.
• Beltline Boulevard Station Apartments, St. Louis Park - $153,525 for installation of a soil vapor mitigation system into a new mixed-used commercial and residential building with affordable and market-rate units. (Grantee: St. Louis Park Economic Development Authority on behalf of Sherman Associates)
• Central Park Improvements & Pavillion Expansion, Hopkins - $800,000 for soil cleanup associated with completion of park and stormwater management improvements. (Grantee: City of Hopkins)
• CLCLT Homes - Fall 2025 - $140,000 for asbestos and lead-based paint abatement associated with the rehabilitation of six affordable owner-occupied single-family homes. (Grantee: City of Lakes Community Land Trust)
• Henn 25 Shops, Minneapolis - $27,400 for installation of a soil vapor mitigation system into the existing buildings. (Grantee: City of Minneapolis on behalf of Michael Tadros)
• Landmark Wayzata, Wayzata - $200,000 for soil cleanup, management of contaminated groundwater during dewatering, and installation of a soil vapor mitigation system in new residential condominiums with street level shops. (Grantee: 200 Lake Street LLC or affiliated entity).
• Lundstrum Performing Arts, Minneapolis - $185,514 for additional soil sampling, soil cleanup, and installation of a soil vapor mitigation system associated with expansion of the existing performing arts facility. (Grantee: City of Minneapolis on behalf of Lundstrum Performing Arts)
• Minnetonka Boulevard Twin Homes, St. Louis Park - $440,000 for soil cleanup associated with the development of four new duplexes for first-time homeowners. (Grantee: St. Louis Park Economic Development Authority on behalf of Greater Metropolitan Housing Corporation)
• Native American Community Clinic, Minneapolis - $106,448 for soil cleanup associated with development of a new community clinic and affordable housing building. (Grantee: City of Minneapolis on behalf of Native American Community Clinic & Wellington Management, Inc.)
• Willis Trucking Redevelopment, Rogers - $200,000 for soil cleanup associated with the development of a new residential building. (Grantee: Bader Development, LLC or affiliated entity)
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.
These grant awards are funded by the Environmental Response Fund.
Impact/Outcome: This action helps redevelop vacant and underutilized brownfields into community assets that bring needed housing, jobs and services to communities and get properties back on the tax rolls. On average, ERF-aided projects result in a 7:1 return on investment for property tax revenues. The recommended ERF grant awards will fund soil cleanup, vapor mitigation, and asbestos and lead abatement. The recommended grants support the renovation or construction of 180 affordable housing units.
Cleaning up contamination protects groundwater and drinking water and improves indoor air quality and environmental health. ERF grants 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 zero waste and climate action goals.
recommendation
Recommendation from County Administrator: Recommend Approval