Loading...
HomeMy WebLinkAbout2011 04-25 EDAP Regular Session EDA MEETING City of Brooklyn Center April 25, 2011 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the frill 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. April 11, 2011 — Regular Session ( 4. Commission Consideration Items a. Consideration of Grant Applications for Contamination Cleanup of the Former Howe Chemical Site Located at 4821 Xerxes Avenue North in Brooklyn Center 1. Resolution Authorizing the Economic Development Authority of Brooklyn Center, Minnesota to Apply for a Contamination Cleanup Grant from the Minnesota Department of Employment and Economic Development Requested Council Action: - Motion to adopt resolution. 2. Resolution Authorizing the Submission of Grant Application to the Metropolitan Council for the Tax Base Revitalization Account Requested Council Action: - Motion to adopt resolution. 3. Resolution Approving an Application for a Hennepin County Enviromnental Financial Grant Requested Council Action: - Motion to adopt resolution. 5. Adjournment l 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 APRIL 11, 2011 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 8:09 p.m. 2. ROLL CALL President Tim Willson and Commissioners Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were Executive Director Curt Boganey, Director of Business and Development Gary Eitel, Planning & Zoning Specialist Tim Benetti, Assistant City Manager /Director of Building and Community Standards Vickie Schleuning, 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. March 28, 2011 — Regular Session Motion passed unanimously. 4. COMMISSION CONSIDERATION ITEMS 4a. ESTABLISHING A SPENDING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.2 Executive Director Curt Boganey introduced the item, discussed the history, and stated the purpose of the proposed resolution. 1. RESOLUTION NO. 2011 -08 APPROVING A SPENDING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 2 04/11/11 -1- DRAFT Commissioner Ryan moved and Commissioner Roche seconded adoption of RESOLUTION NO. 2011-08 Approving a Spending Plan for Tax Increment Financing District No. 2. Motion passed unanimously. 5. ADJOURNMENT Commissioner Roche moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 8:11 p.m. Motion passed unanimously. 04/11/11 -2- DRAFT EDA Agenda Item No. 4a i EDA ITEM MEMORANDUM DATE: April 25, 2011 TO: Curt Boganey, City Manager FROM: Tom Bublitz, EDA/HRA Specialist THROUGH: Gary Eitel, Business and Development Director SUBJECT: Consideration of Approval of Grant Applications for Contamination Cleanup of -the Former Howe Chemical Site Located at 4821 Xerxes Avenue North in Brooklyn Center Recommendation: It is recommended that the Economic Development Authority of Brooklyn Center, Minnesota (EDA) consider approval of the following resolutions: A. Resolution Authorizing the Economic Development Authority of Brooklyn Center, Minnesota to Apply for a Contamination Cleanup Grant from the Minnesota Department of Employment and Economic Development. B. Resolution Authorizing the Submission of a Grant Application to the Metropolitan Council for the Tax Base Revitalization Account. C. Resolution Approving an Application for a Hennepin County Environmental Financial Grant. 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 cleanup of the Site by the new owner, Real Estate Recycling (RER), (MBC II, LLC). The grant funds are awarded on a competitive basis from the State Department of Employment and Economic Development, Metropolitan Council and Hennepin County Department of Environmental Services. 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 cleanup activities through private contractors and consultants. Essentially, the EDA serves as a pass through of grant funds to MBC II, LLC. Available Contamination Clean Up Grants: The resolutions to be considered by the EDA address three contamination cleanup grant programs. The programs are as follows: Department of Employment and Economic Development (DEED) Mission: Ensuring an attractive, clear:, safe coin►nunity that enhances the quality of life and preserves the public trust �� EDA ITEM MEMORANDUM The Minnesota Contamination Cleanup Grant Program was established in 1993 to cleanup contaminated sites and convert contaminated property into a marketable asset. The Department of Employment and Economic Development (DEED) is the administering state agency for the grant program. The DEED grant requires a 25% local match which will be provided by RER, LLC. 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 cleanup 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. Hennepin County Environmental Response Fund (ERF) and Environmental Protection Agency (EPA) Brownfield's Revolving Loan Fund Grants Hennepin County makes environmental cleanup grants available through its Environmental Response Fund (ERF) grant program, which is funded by the collection of mortgage registry and deed tax for deposit into an Environmental Response Fund account. The ERF grants can be used for assessment and or cleanup of contaminated sites located within Hennepin County. In addition to the ERF program, Hennepin County also manages the EPA Brownfield Revolving Loan Fund Grant Program. This is funded by the Federal EPA for the redevelopment of Brownfield's. A Brownfield is defined as real property, the expansion, redevelopment, or reuse of which may be complicated by the presence of potential hazardous substance, pollutant or contaminant. The program was created by the 2002 Federal Brownfield's Law. No local match is required. I Site History The Site at 4821 Xerxes Avenue North was a manufacturer and distributor of custom formulated agricultural fertilizers, insecticides, fungicides, and herbicides going back to 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 the names Howe, Inc. and Howe Chemical . Company. 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 industrial 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's paved areas and soil where it pooled, as well as ran into storm water catch basins. Alission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public. trust EDA ITEM MEMORANDUM 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 cleanup steps, first, the removal of contaminated soil, ice and snow to agricultural land in 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 cleanup of contaminants on the Site suggest that the initial investigation and cleanup 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 (DOA) and Minnesota Pollution Control Agency (MPCA) to establish which State agency had authority to provide oversight relative to the cleanup of The Site. It is staff's understanding that the issue of agency oversight has been resolved and that the cleanup of the Howe Chemical Site will be overseen jointly by the MPCA through its Voluntary Investigation and Clean Up program (VIC) and DOA, through its Agricultural Voluntary Investigation and Clean Up program (AG VIC). Site Clean Up and Proposed Development RER (MBC 11, LLC) acquired the Howe site in April 2010 and has enrolled the property in the MPCA VIC program in order to proceed with required cleanup and redevelopment of the Site as per MPCA standards spelled out in work plans approved by the MPCA. RER is also participating in the AG VIC program for cleanup of contaminants identified as AG related. Based on MPCA approved work plan and a Phase I environmental investigation completed by RER, the Site requires over $1.5 million in soil remediation. Additional remediation costs include demolition of vacant buildings, costs of MPCA and DOA oversight and capping of the site with hard surface materials. The total cost of remediation/clean up of the Site is projected at $2,407,000. The EDA has applied for and received two investigation grants for the Site, one for $50,000 from DEED in 2010 and one for $50,000 from the Metropolitan Council received in 2011. These two grants provide assistance to complete the final contamination investigation piece so the site clean up activities can begin. The investigation costs not covered by the Met Council and DEED grants will be paid for by RER. I Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust I I EDA ITEM MEMORANDUM The cleanup of The Site is proposed to be funded by grant programs previously discussed. The dollar amounts requested from the various grant programs are as follows: • $1,242,000 from DEED contamination cleanup grant program. • $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. • $265,000 from Developer to provide capping of The Site and also to meet the 25 percent local match funding required by the DEED grant program. 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. Budget Issues: There are no direct budget impacts to consider since RER will provide the local match for the DEED grant and the various grant agencies will provide all funding for contamination cleanup, including demolition of the buildings on the site. Presently 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 the various funding agencies and maintain the required financial records. Council Goals: 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 quallty of f life and preserves the public. trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY OF BROOKLYN CENTER, MINNESOTA TO APPLY FOR A CONTAMINATION CLEANUP GRANT FROM THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT WHEREAS, Real Estate Recycling (RER), through MBC II, LLC, is the owner of certain real property located at 4821 Xerxes Avenue North in Brooklyn Center, known as the former Howe Chemical Site (the Site); and WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (EDA) believes it is in the best interest of the City of Brooklyn Center to encourage the environmental cleanup and redevelopment of the. Site; and WHEREAS, the - EDA desires to facilitate the cleanup and redevelopment of the Site by RER; and WHEREAS, the redevelopment of the Site meets the redevelopment objectives of the City's modified redevelopment plan (The "Redevelopment Plan ") for Housing Development and Redevelopment Project No. 1 (The "Redevelopment Project Area") as adopted on December 19, 1994 by the EDA; and WHEREAS, the EDA has the legal authority to apply for financial assistance, and the institutional, managerial and financial capability to insure adequate project administration. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota as follows: • The EDA approves the contamination cleanup grant application submitted to the Department of Employment and Economic Development on May 2, 2011 by the EDA for the Howe Chemical site. • The EDA is authorized to act as the legal sponsor for Project (s) contained in the Contamination Cleanup Grant Program to be submitted on May 2, 2011 and that the EDA Executive Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the EDA. • The EDA has the legal authority to apply for financial assistance and the institutional, managerial and financial capability to insure adequate project administration. • The sources and amounts of the local match identified in the application are committed to the Project identified. • The EDA has not violated any federal, state or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful corrupt practices. • Upon approval of its application by the State, the EDA may enter into an agreement with the State of Minnesota for the above referenced Project(s) and that the EDA certifies that it will comply with all applicable laws and regulations as stated in all contract agreements. • The EDA Executive Director is hereby authorized 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. I 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 2011 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, located at 4821 Xerxes Avenue North (former Howe Chemical 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 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 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 Petrofund funding. • Tax Increment Finance funding is not available for cleanup activities at the site. l 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 May 2, 2011; 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. ( Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING AN APPLICATION FOR A HENNEPIN COUNTY ENVIRONMENTAL FINANCIAL GRANT WHEREAS, an application requesting grant - funds from the Hennepin County Department of Environmental Services has been prepared for submission by the Economic Development Authority of Brooklyn Center, Minnesota (EDA); and WHEREAS, the grant funds will be used for environmental cleanup of the, former Howe Chemical Site located at 4821 Xerxes Avenue North in Brooklyn. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Brooklyn Center, Minnesota (EDA) that the EDA supports the Environmental Financial Grant Application submitted to the Hennepin County Department of Environmental Services on May 2, 2011, by the EDA for the former Howe Chemical Site located at 4821 Xerxes Avenue North in Brooklyn Center. 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.. I I i I I