Item Coversheet

Board Action Request
18-0029


Item Description:
Negotiate 10 fall 2017 Environmental Response Fund grant agmts for assessment and cleanup of contaminated sites, during various contract periods, total combined NTE $1,441,160
Resolution:

BE IT RESOLVED, that the County Administrator be authorized to negotiate the following Environmental Response Fund grant agreements for the assessment and cleanup of contaminated sites, during a two-year period beginning on the date of execution: 

 

Agreement PR00000159 with City of Lakes Community Land Trust or affiliated entity, with the amount not to exceed $225,000;

Agreement PR00000160 with the City of Maple Grove, with the amount not to exceed $250,000;

Agreement PR00000161 with the City of Minneapolis, with the amount not to exceed $34,500;

Agreement PR00000162 with the City of Minneapolis, with the amount not to exceed $300,000;

Agreement PR00000163 with the City of Minneapolis, with the amount not to exceed $27,000;

Agreement PR00000164 with the City of Minneapolis, with the amount not to exceed $185,260;

Agreement PR00000165 with the City of Minneapolis, with the amount not to exceed $145,000;

Agreement PR00000166 with the City of Robbinsdale, with the amount not to exceed $49,400;

Agreement PR00000168 with Minnesota Brownfields, with the amount not to exceed $200,000; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement PR00000167 with the Minnehaha Creek Watershed District, during a one-year period beginning on the date of execution, with the amount not to exceed $25,000; 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.

Background:

History: The Environmental Response Fund (ERF) grants fund assessment and cleanup of sites where conditions present a threat to human health or the environment and where a lack of funding for the added environmental costs hinders site improvements or redevelopment.

Minnesota Statutes (383B.80 and 383B.81) authorize the county to collect a mortgage registry and deed tax for the assessment and cleanup of contaminated sites. The board established the ERF in 1997 (Resolution 97-06-410R1) and adopted the grant program in 2001 (Resolution 01-09-615).

Since November 2001, 31 grant cycles have been completed. Through the ERF program, 370 grants, including 15 emergency grants, have been awarded for a total of $51,965,887.

Current Request: This request is for County Administrator authorization to negotiate 10 ERF grant agreements during various contract dates, with the total combined amount not to exceed $1,441,160.

In August 2017, 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 recommend funding 10 of the 17 project applications received. The criteria used to evaluate the grant applications include the potential or known threat to human health or the environment posed by the contamination; the community benefit derived from the proposed cleanup and the benefit of the redevelopment; the likelihood the site will be investigated or cleaned up without the use of ERF money; the commitment of local and other funds to support the project; the public or nonprofit status of the applicant; the creation of affordable or moderately-priced market-rate housing; the creation of economic development; whether assistance with acquisition costs is being requested; whether public end use is being planned for the property; and the degree to which sustainable features are being incorporated into the project.

The fall 2017 ERF award recommendations are summarized as follows and are described in detail in the report, “Hennepin County Environmental Response Fund Fall 2017 Funding Recommendations.”

ERF Projects:

  • City of Lakes Community Land Trust or affiliated entity (CLCLT Homes – Fall 2017, Minneapolis) - $225,000 for asbestos and lead based paint abatement associated with the renovation of 15 owner-occupied, permanently affordable, residential homes.

  • City of Maple Grove (Former Hilger Landfill, Maple Grove project) - $250,000 for contaminated soil and debris cleanup of a former unpermitted dump to construct a new office-warehouse complex.

  • City of Minneapolis (Bunge East Redevelopment, Minneapolis project) - $34,500 for contaminated soil cleanup and vapor mitigation associated with the construction of 95 affordable housing units.

  • City of Minneapolis (Hook & Ladder Apartments, Minneapolis project) - $300,000 for contaminated soil cleanup associated with construction of 118 affordable/workforce housing units.

  • City of Minneapolis (Leef Project, Minneapolis project) – $27,000 for a portion of demolition costs to facilitate contaminated groundwater cleanup efforts required prior to the construction of 100 affordable housing units.

  • City of Minneapolis (Maya Commons, Minneapolis project) - $185,260 for contaminated soil cleanup associated with construction of 50 affordable housing units.

  • City of Minneapolis (Mino-bimaadiziwin, Minneapolis project) - $145,000 for demolition and asbestos/lead based paint abatement associated with construction of 155 affordable housing units, 20% of which will be dedicated to assisting families facing long-term homelessness.

  • City of Robbinsdale (Terrace Mall Redevelopment, Robbinsdale project) - $49,400 for contaminated soil cleanup associated with construction of a new grocery store.

  • Minnesota Brownfields (countywide) - $200,000 to continue the Brownfields Gap Financing Program, which provides small environmental assessment grants to government entities and non-profit organizations.

  • Minnehaha Creek Watershed District (Hopkins Cold Storage, Hopkins project) - $25,000 for continued assessment work in preparation for future development and district stormwater management facilities adjacent to Minnehaha Creek.

 

This request is also 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 ERF grant awards will fund asbestos and lead paint abatement, contaminated groundwater monitoring, and contaminated soil assessment and cleanup. This funding supports projects that create economic development by increasing the tax base, creating permanent jobs, supporting stormwater management improvements, and creating affordable and market-rate housing. The grants will provide for the renovation or construction of up to 533 affordable housing units. Many ERF grants address environmental contamination in communities of low-income and color where health disparities exist.

Recommendation from County Administrator: Recommend Approval
ATTACHMENTS:
DescriptionUpload DateType
Report: ERF Fall 20171/19/2018Backup Material