Item Description:
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Neg four spring 2024 ERF grant agmts for cleanup and assessment of contaminated sites, one- and two-year periods, total combined NTE $829,905
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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, during periods of one and two years beginning on the dates of execution:
• Agreement PR00006420 with 700 American Blvd LLLP or affiliated entity, in an amount not to exceed $162,685,
• Agreement PR00006422 with the City of Minneapolis, in an amount not to exceed $137,250,
• Agreement PR00006421 with the City of Minneapolis, in an amount not to exceed
$129,970, and
• Agreement PR00006423 with Minnesota Brownfields, in an amount not to exceed $400,000; 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.
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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 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 492 projects totaling more than $77.5 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 March 2024, the county solicited proposals from municipalities and nonprofit and for-profit developers, receiving five 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. Four 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 is to authorize the County Administrator to negotiate ERF grant agreements during various periods, with the total combined amount not to exceed $829,905.
The four Spring 2024 ERF requests recommended for funding are summarized as follows and are described in the attached report, Environmental Response Fund Spring 2024 Funding Recommendations.
• American Boulevard Senior Living, Bloomington - $162,685 for vapor mitigation costs associated with the development of a five-story apartment complex with 128 affordable housing units, including eight project-based vouchers, and 1,500 square feet of commercial space. (Grantee: 700 American LLLP)
• Native American Community Clinic and Housing, Minneapolis - $137,250 for soil cleanup and vapor mitigation costs associated with the redevelopment of 83 affordable housing units and a new expanded clinic building. (Grantee: City of Minneapolis on behalf of NACC and Wellington Management)
• Passage Community Housing, Minneapolis - $129,970 for soil vapor mitigation and lead sampling and abatement costs associated with the rehabilitation of a three-story building with approximately 17 supportive housing units. (Grantee: City of Minneapolis on behalf of Simpson Housing Services, Inc.)
• Minnesota Brownfields Gap Financing Program, countywide - $400,000 to continue the Brownfields Gap Financing Program, which provides small environmental grants to government entities and non-profit organizations. New this year, this program expands to include emerging developers and increases per project costs. (Grantee: Minnesota Brownfields)
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.
Impact/Outcomes:
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 228 affordable housing units.
ERF grants reduce environmental contamination and 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 climate action goals.
recommendation
Recommendation from County Administrator: Recommend Approval