Item Description:
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Amd 2 to Agmt PR00004513 for ERF grant funding with Minneapolis, ext end date to 12/20/26, no change to NTE
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 2 to Environmental Response Fund Agreement PR00004513 with the City of Minneapolis extending the agreement term to December 20, 2026; that following the review and approval of the County Attorney’s Office, the County Administrator be authorized to sign the agreement of behalf of Hennepin 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).
The City of Minneapolis on behalf of Project for Pride in Living, Inc., as the developer for Simpson Housing Services, Inc., was awarded $219,369 in ERF grant funding in spring 2022 for soil cleanup, asbestos and lead paint abatement, and vapor mitigation required to construct 42 units of affordable housing and an emergency shelter for people experiencing homelessness (Resolution 22-0297). Due to delays in the project timeline, an additional extension to the agreement is being requested. There is currently $53,559 left on the contract.
Current Request: This request seeks approval for the County Administrator to negotiate and sign a second amendment to ERF grant agreement PR00004513 with the City of Minneapolis to extend the agreement term to December 20, 2026. There is no change to the not to exceed amount of the agreement.
Impact: ERF grants reduce environmental contamination and support projects in communities with disparities in health, housing, employment, and income. This ERF project will mitigate exposure to hazardous building materials and contamination for the future residents of this affordable housing and emergency shelter space.
recommendation
Recommendation from County Administrator: Recommend Approval