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HomeMy WebLinkAbout2010 10-25 EDAP EDA MEETING City of Brooklyn Center October 25, 2010 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. July 12, 2010 — Regular Session . 4. Commission Consideration Items a. Resolution Authorizing the Submission of a Grant Application to the Metropolitan Council for the Tax Base Revitalization Account Requested Commission Action: — Motion to adopt resolution. 5. Adjournment i • EDA Agenda Item No. 3a MINUTES OF THE PROCEEDINGS OF THE • ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JULY 12, 2010 CITY HALL — COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 7:15 p.m. 2. ROLL CALL President Tim Willson and Commissioners Kay Lasman, Tim Roche, Dan Ryan, and Mark Yelich. Also present were Executive Director Curt Boganey, Interim Chief of Police Kevin Benner; Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, City Attorney Charlie LeFevere, and Carla Wirth, Timesaver Off Site Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Roche seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. June 28, 2010 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. STATUS OF FOURTH AMENDMENT TO A DEVELOMENT AGREEMENT (EMBASSY SUITES — BROOKLYN HOTEL PARTNERS, LLC) Executive Director Curt Boganey introduced the item and advised that the fourth amendment to the Brooklyn Hotel Partner's development agreement was approved by the EDA at its June 28, 2010, meeting and it will all provide for lease of the D Barn and contrition of the link between the hotel and Earle Brown Heritage Center. He advised that the subordination agreement with Prudential is yet to be executed. That agreement would subordinate any interest Prudential has in the tax abatement to the interest of the EDA. Mr. Boganey stated that recent communications have occurred with Prudential's attorney who indicated the amendment was received, reviewed, 07/12/10 -1- DRAFT and is working its way towards approval. He indicated there is no reason to think it will not be signed and staff will report an update on this matter at the next EDA meeting. • Commissioner Roche moved and Commissioner Yelich seconded to receive the report. Motion passed unanimously. I 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Roche seconded adjournment of the Economic Development Authority meeting at 7:17 p.m. Motion passed unanimously. I 07/12/10 -2- DRAFT EDA Agenda Item No. 4a COUNCIL ITEM MEMORANDUM • DATE: October 20, 2010 TO: Curt Boganey, City Manager FROM: Tom Bublitz, EDA/HRA Specialist THROUGH: Gary Eitel, Business and Development Director SUBJECT: Consideration of Approval of Resolution Authorizing the Submission of a Grant Application to the Metropolitan Council for the Tax Base Revitalization Account Recommendation: It is recommended that the Economic Development Authority of Brooklyn Center, Minnesota (EDA) consider approval of the following resolution: A. Resolution Authorizing the Submission of a Grant Application to the Metropolitan Council for the Tax Base Revitalization Account. Background: This memorandum addresses the proposed environmental remediation and redevelopment of the • industrial property located at 4821 Xerxes Avenue North in Brooklyn Center (the Site) and known as the former Howe Chemical Site. With regard to environmental remediation of the Site, the EDA is being asked to apply for grant funding to assist with investigation and cleanup of the Site by the new owner, MBC II LLC, an LLC created by Real Estate Recycling (RER). The grant funds are awarded on a competitive basis from the Metropolitan Council. The grant mechanisms require that the EDA apply for the grant and be accountable for expenditure of the funds but MBC II, LLC would manage and conduct all the investigation and cleanup activities through private contractors and consultants. Essentially, the EDA serves as a pass through of grant funds to MBC II, LLC. Available Contamination Investigation/ Clean Up Grant: The resolution to be considered by the EDA addresses the Metropolitan Council's Tax Base Revitalization Account. Metropolitan Council Tax Base Revitalization Account (TBRA) Enacted by the Legislature in 1995, the Metropolitan Livable Communities Act designated the Metropolitan Council as the administrator of the Tax Base Revitalization Program. This program makes grants to investigate and clean up contaminated land for subsequent redevelopment, job retention and job growth in areas that have lost some of their commercial industrial base. No local match is required. Alission: Ensuring an attractive, clean, safe comununity that enhances the Rualin of life and preserves the public trust l COUNCIL ITEM MEMORANDUM Site History The Site at 4821 Xerxes Avenue North was a manufacturer and distributor of custom formulated agricultural fertilizers, insecticides, fungicides, and herbicides since approximately 1940. A retail petroleum station was also located at the Site from approximately 1945 to 1970. The Site was owned for many years by the Howe family and operated under both the name of Howe, Inc. and Howe Chemical Company. Subsequently, in approximately 1983, the facility was purchased by the Con Agra Fertilizer Company now known as United Agra Products ( also known as UAP Distribution, Inc.) The Site operations that came after the Howe ownership included distribution of agricultural fertilizers. A major industrial incident occurred at the Site in 1979 when one of the buildings burned down. The building reportedly contained over 80 tons of 100 different types of pesticides and over 120 tons of bag and bulk fertilizers, all of which burned along with equipment, electrical equipment, vehicles, maintenance chemicals, wood, metal, batteries, etc. (stored within the building). The water used to fight the fire (estimated at 500,000 gallons) drained onto the Site, pavements and soil where it pooled as well as ran into site storm water catch basins. Site soil and groundwater sampling and analysis subsequent to the fire were performed and elevated concentrations of agricultural chemicals were detected in both the Site soil and ground water. Following the fire, the State of Minnesota assumed control of the investigation and clean up of • the Howe site in Brooklyn Center and selected and implemented two clean up steps, first the removal of contaminated soil, ice and snow to Martin County, Minnesota and second, pumping out contaminated groundwater downgradient from the Howe facility. The second step also involved the State's decision not to further investigate or cleanup any soils on the Howe site itself. Soil excavation was ruled out since it was determined that the pesticides in the soil would eventually infiltrate into groundwater where they could be controlled or removed and because of the amounts present and hydrogeologic conditions, remedial action of the Howe site was not thought to be necessary. Current requirements for investigation and clean up of contaminants on the Site suggest that the initial investigation and clean up was not adequate. Subsequent to the 1979 fire and initial cleanup, the Site continued in operation as a fertilizer distribution operation. In 1986 the Crop Mate Company which was a Con Agra affiliate acquired the site. All Site operations were discontinued in 2006. In 2008, site and building plan approval was granted by the City to RER for a 50,000 sq. ft. Office Warehouse facility. Over the past few years since 2008, RER Acquisitions, LLC had been working with the Department of Agriculture and Minnesota Pollution Control Agency to address how each agency would provide oversight for the investigation and remediation of contamination on the site. Site Clean Up and Proposed Development RER Acquisitions, LLC acquired the Howe site in April 2010 and has enrolled the property in the MPCA's Voluntary Investigation and Clean Up (VIC) program in order to proceed with i Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM . required clean up and redevelopment of The Site, as per MPCA standards and spelled out in work plans approved by the MPCA for those specific hazardous chemicals regulated by the MPCA. Since many of the contaminants on the site are from agricultural chemicals, the Minnesota Department of Agriculture (MDA) will also provide oversight for the development of a clean-up plan for the site. The MPCA and MDA will approve separate Remedial Action Plans (RAP) for their respective chemicals present on the site. The MPCA has already approved the RAP for hazardous substances and petroleum present on the site. The MDA still needs to approve RER's RAP for agricultural chemicals on the site. Once the MDA approves the RAP, RER will be positioned to apply for State grant funds in May 2011 for clean up of the site. The Metropolitan Council staff has indicated they would be receptive to a grant request in the amount of $50,000 for investigation and/or MDA oversight costs related to RAP preparation and subsequent approval by MDA. The development proposed for the Site by RER will be a 50,000 to 60,000 square foot Office Warehouse building identical in appearance to the buildings constructed by RER directly across Brooklyn Boulevard in Minneapolis. . Previous Grant Applications In April 2010 the EDA authorized applications for clean up of the former Howe site on behalf of RER. The grant requests were as follows: • $1,242,000 from the Department of Employment and Economic Development Development (DEED). • $200,000 from Metropolitan Council Tax Base Revitalization Account (TBRA) program. • $700,000 from Hennepin County Environmental Response Fund and/or EPA Brownfield's Grant Program. The only amount funded from the May 2010 application was $50,000 from the DEED application for contaminated investigation activities. The reason for not funding more of the grant requests was that the contamination investigation/remediation oversight issues relative to the MDA had not been resolved. Budget Issues: There are no direct budget impacts to consider since there is no local match required for the grant. The primary budget impact will be staff time necessary to monitor the grants, process payment requests to RER's contractors performing grant related work and to maintain the required financial records. Council Goals: ]$fission: Ensuring an attractive, clean, safe community that enhances the qualio of life and preserves the public trust COUNCIL ITEM MEMORANDUM The Council Goal addressed is the following: • Strategic: 1. We will aggressively proceed with implementation of City's redevelopment plans • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE METROPOLITAN COUNCIL FOR THE TAX BASE REVITALIZATION ACCOUNT WHEREAS, The City of Brooklyn Center is a participant in the Livable Communities Acts Local Housing Incentives Account Program for 2010 as determined by the Metropolitan Council, and is therefore eligible to make application for funds under the Tax Base Revitalization Account; and WHEREAS, the City, through its Economic Development Authority (EDA) has identified a contamination cleanup project within the City, the former Howe Chemical Site located at 4821 Xerxes Avenue North (the Site), that meets the Tax Base Revitalization Account's purpose and criteria; and WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (EDA) has the institutional, managerial and financial capability to insure adequate • project and grant administration; and WHEREAS, the EDA certifies that it will comply with all applicable laws and regulations as stated in the contract grant agreements; and WHEREAS, the EDA finds that the required contamination investigation and cleanup will not occur through private or other public investment within the reasonable foreseeable future without Tax Base Revitalization Account grant funding; and WHEREAS, the EDA represents that it has undertaken reasonable and good faith efforts to procure funding for the activities for which Livable Communities Act Tax Base Revitalization Account funding is sought but was not able to find or secure from other sources funding that is necessary for clean up completion and states that this representation is based on the following reasons and supporting facts: • No local funds are available to fund the proposed investigation and/or cleanup activities, including General Fund and Special Revenue Funds of the City and/or EDA. • State Department of Agriculture Cleanup Funds are not available for the proposed cleanup activities at the Site. • Proposed cleanup activities at the Site do not qualify for Minnesota Petrof ind funding. • The Site is not located within an existing Tax Increment District. NOW THEREFORE BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota that it acknowledges it will be the grantee and agrees to act as legal sponsor administer and be responsible for grant funds expended for the project contained in the Tax Base Revitalization grant application submitted on November 1, 2010; and BE IT FURTHER RESOLVED that the EDA Executive Director is hereby authorized to apply to the Metropolitan Council for this funding on behalf of the Economic Development Authority for Brooklyn Center, Minnesota and to execute such agreements as are necessary to implement the Project on behalf of the applicant. Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner and upon vote being taken thereon, the following voted in favor thereof: • and the following voted against the same: whereupon said resolution was declared duly passed and adopted.