Item Description:
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Agmt A2312008 with the U.S. EPA accepting a Brownfield Revolving Loan Fund grant, 10/01/23-09/30/28, $3,000,000 (recv); Agmt A2312007 with the U.S. EPA establishing uses of loan repayment funds, DOE-09/30/27 $2,500,000 (est recv)
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Resolution:
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BE IT RESOLVED, that Agreement A2312008 with the United States Environmental Protection Agency for a grant for the Brownfields Revolving Loan Fund to be used for the cleanup of brownfields contaminated with hazardous substances and petroleum during the period October 1, 2023 through September 30, 2028 in the receivable amount of $3,000,000, be approved; that the Chair of the Board be authorized to sign the amendment on behalf of Hennepin County, and that the Controller be authorized to accept and disburse funds as directed; and
BE IT FURTHER RESOLVED, that Agreement A2312007 with the United States Environmental Protection Agency establishing uses for funds generated by the repayment of loans from the Hennepin County Brownfields Revolving Loan Fund, from the date of execution through September 30, 2027 in the estimated receivable amount of $2,500,000, be approved; that the Chair of the Board be authorized to sign the agreement on behalf of Hennepin County; and that the Controller be authorized to accept and disburse funds as directed; and
BE IT FURTHER RESOLVED, that the sponsorship and acceptance of grant funding for these programs by the Hennepin County Board of Commissioners does not imply a continued funding commitment by the county for the programs when grant funds are no longer available.
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Background:
Hennepin County administers the Brownfields cleanup revolving loan program with funds made available through the U.S. Environmental Protection Agency (EPA). Established in 1999, the goal of this program is to stimulate reuse and redevelopment of contaminated sites (Resolution 99-11-811).
The county facilitates low-interest loans for environmental cleanup of sites contaminated with petroleum and hazardous substances. Eligible 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. Since inception and under nine separate grant agreements, the EPA has awarded more than $7.2 million to Hennepin County for loans. Further, loan repayments to Hennepin County are made available through loans and grants by the county to fund other brownfield assessment and cleanup activities for cities and non-profit organizations.
Agreement A062299 with the EPA (Resolution 06-11-667), which established and funded Hennepin County's third Brownfields cleanup revolving loan program, expired on September 30, 2023. The EPA, rather than extend this agreement, seeks to establish a new agreement, initially capitalized with this $3 million grant, for the term from October 1, 2023 to September 30, 2028 to be used for new loans.
Pursuant to closeout agreements A060566 and A101107 with the EPA, loan repayments to Hennepin County from the first six brownfield loans are available for reuse by the county to fund other brownfield assessment and cleanup activities for cities and non-profit organizations. Repayment on the seventh and eighth loans is underway. The EPA intends to consolidate the remaining funding governed by the two existing closeout agreements with ongoing repayment income from the sixth and seventh loans into a separate new closeout agreement with Hennepin County that will direct the use of these loan repayment funds. Under the new closeout agreement A2312007, funding will continue to be available to fund brownfield assessment and cleanup work and related activities for Hennepin County and partners.
Current Request:
This request is to approve Agreement A2312008 with the U.S. EPA for a $3,000,000 grant for the Brownfields Revolving Loan Fund to be used for the cleanup of brownfields contaminated with hazardous substances and petroleum during the period October 1, 2023 through September 30, 2028.
This request also seeks approval of Agreement A2312007 with the U.S. EPA, establishing uses for funds generated by the repayment of loans from the Hennepin County Brownfields Revolving Loan Fund, from the date of execution through September 30, 2027 in the estimated receivable amount of $2,500,000.
Impact/Outcome:
Approval of Agreement A2312008 will provide Hennepin County with $3 million in available loan principal for the cleanup of brownfields contaminated with hazardous substances and petroleum. Past loans have been used to reduce disparities in health and housing by funding brownfields cleanup and several affordable housing developments located within areas of environmental justice concern.
Approval of Agreement A2312007 will allow the county to continue to assist cities and non-profit organizations with funding that facilitates brownfields cleanup and the creation and rehabilitation of affordable housing.
The approval of both agreements also advances climate action by supporting sustainable development in two ways. First, redeveloping contaminated sites within already developed areas is an important component to reducing the vehicle miles traveled and increasing access to transportation choices to reduce greenhouse gas emissions associated with transportation. Second, newly developed buildings are energy efficient, and some projects pursue on-site renewable options, such as solar or geothermal to reduce emissions from heating and cooling buildings.
recommendation
Recommendation from County Administrator: Recommend Approval