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 a two-year period beginning on the date of execution:

• Agreement PR00004954 with the City of Minneapolis, with the amount not to exceed $50,719;
• Agreement PR00004955 with the City of Minneapolis, with the amount not to exceed $92,617;
• Agreement PR00004952 with the City of Minneapolis, with the amount not to exceed $163,033;
• Agreement PR00004956 with Sherman Associates Ventures LLC or affiliated entity, with the amount not to exceed $378,916;
• Agreement PR00004948 with the MorningStar Coffee Co. or affiliated entity, with the amount not to exceed $113,350;
• Agreement PR00004953 with the University of Minnesota, with the amount not to exceed $290,610;
• Agreement PR00004950 with the City of St. Anthony Village, with the amount not to exceed $265,825;
• Agreement PR00004949 with the City of Crystal, with the amount not to exceed $169,930;
• Agreement PR00004947 with the Minnesota Brownfields or affiliated entity, with the amount not to exceed $300,000;
• Agreement PR00004951 with the City of Lakes Community Land Trust or affiliated entity, with the amount not to exceed $175,000; 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 one 12-month extension of the agreements; and that the Controller be authorized to disburse funds as directed.

The Environmental Response Fund (ERF) helps revitalize sites by providing funding 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 01-9-615).

Projects supported by ERF grants provide a variety of community benefits, including creating affordable and moderately priced housing, supporting economic development, developing green space, 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 a catalyst for new development in neighboring areas, which can help address racial disparities in housing, employment, and income.

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.

Since 2001, ERF has funded 448 projects totaling $66,561,421.

Current Request: This request is to authorize the County Administrator to negotiate 10 ERF grant agreements during various periods, with the total combined amount not-to-exceed $2,000,000.

In August 2022, the county solicited proposals from municipalities and nonprofit and for-profit developers. In an effort 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.

A committee reviewed the grant applications and recommended funding 10 of the 12 project applications received. Applications were evaluated on eligibility, project need, degree of contamination, the appropriateness of the cleanup approach, the creation or preservation of affordable and/or moderately priced market-rate housing, the creation of economic development, and the readiness of the project to proceed.

The Fall 2022 ERF applications are summarized as follows and are described in detail in the report, Environmental Response Fund Fall 2022 Funding Recommendations.

ERF Projects:

• 200 Central, Minneapolis - $50,719 for soil cleanup and vapor mitigation costs associated with the development of a mixed-use commercial and residential building with 180 market-rate and 179 affordable housing units. (Grantee: City of Minneapolis on behalf of Alatus LLC) 
• Emerson Village, Minneapolis - $92,617 for soil cleanup and asbestos abatement costs associated with the construction of 40 affordable housing units for low-income families and people with disabilities. (Grantee: City of Minneapolis on behalf of Beacon Interfaith and Emerson Village LLC) 

• Seven Points, Minneapolis — $163,033 for soil cleanup and vapor mitigation costs associated with development of a mixed-use commercial and residential building with 267 market-rate housing units. (Grantee: City of Minneapolis on behalf of Doran Companies) 
• Northstar Center – East Tower, Minneapolis — $378,916 for asbestos and lead-based paint abatement costs associated with the renovation of existing building to create 44 affordable and 172 market-rate housing units. (Grantee: Sherman Associates Ventures LLC) 
• MorningStar Coffee Co., Minneapolis — $113,350 for vapor mitigation costs at an existing minority-owned coffee roaster and adult daycare. (Grantee: Morningstar Coffee Co.) 
• Como Student Community Cooperative Parking Lots B and C, Minneapolis — $290,610 for soil cleanup costs associated with the reconstruction of two parking lots serving affordable housing apartments on the University of Minnesota campus. (Grantee: University of Minnesota) 
• Kenzie Terrace Apartments, St. Anthony - $265,825 for soil cleanup and vapor mitigation costs associated with construction of 76 market-rate housing units. (Grantee: City of St. Anthony Village on behalf of Interstate Development) 

• Douglas Drive Development, Crystal - $169,930 for soil cleanup and vapor mitigation costs associated with construction of eight market-rate townhome units. (Grantee: City of Crystal Economic Development Authority on behalf of Hampton Companies LLC) 
• MN Brownfields Gap Financing Program, countywide — $300,000 for the Brownfields Gap Financing Program, which provides small environmental assessment grants to government entities and non-profit organizations. (Grantee: Minnesota Brownfields) 
• CLCLT Homes, Minneapolis - $175,000 for asbestos and lead-based paint abatement associated with the rehabilitation of seven affordable owner-occupied single-family homes. (Grantee: City of Lakes Community Land Trust) 

This request also is for approval for grantees to incur costs after the board approval date, with reimbursements being paid upon execution of the grant agreements.

Impact/Outcome: The recommended ERF grant awards will fund asbestos and lead-based paint abatement, soil cleanup, and vapor mitigation. 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 provide for the renovation or construction of 270 affordable housing units.

ERF grants reduce environmental contamination and support projects in communities with disparities in health, housing, employment, and income. Most of the projects supported by these grants include the construction or renovation of buildings that incorporate sustainable features that will result in greater climate resiliency.