HomeMy WebLinkAbout2012 04-23 EDAP Regular Session i
EDA MEETING j
City of Brooklyn Center
April 23, 2012 AGENDA
1. Call to Order j
—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. April 9, 2012—Regular Session
4. Commission Consideration Items
a. Consideration of Approval of Grant Applications for Contamination Cleanup of
the Former Lifetime Fitness Located at 4001 Lakebreeze Avenue 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 Commission Action:
—Motion to adopt resolution.
2. 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.
3. Resolution Approving Application for a Hennepin County Environmental
pp g an pP
Financial Grant
Requested Commission Action:
—Motion to adopt resolution.
5. Adjournment
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 9, 2012
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 7:51 p.m.
2. ROLL CALL
President Tim Willson and Commissioners Carol Kleven, Kay Lasman, Lin Myszkowski, and
Dan Ryan. Also present were Executive Director Curt Boganey, Director of Business and
Development Gary Eitel, 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 Myszkowski moved and Commissioner Ryan seconded approval of the Agenda
and Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. March 26, 2012—Regular Session
Motion passed unanimously.
President Willson stated the EDA's appreciation for the work of Director of Business and
Development Gary Eitel in guiding the City's redevelopment.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2012-06 AUTHORIZING THE ACQUISITION OF
PROPERTY IN CONNECTION WITH THE REMOVE AND REBUILD
PROGRAM (340153 RD AVENUE N.)
Director of Business and Development Gary Eitel introduced the item, discussed the history, and
stated the purpose of the proposed resolution to purchase 3401 53rd Avenue North. He described
the distressed condition of this property, which is listed at $34,700. The estimated cost of
04/09/12 -1- DRAFT
demolition and site restoration is $15,000. Mr. Eitel stated this is an R-5 district so a single-
family home is not allowed. The intention is to remove the building and hold the property until
there are positive negotiations with Twin Lakes Manor Apartments and possible incorporation
with its property.
Commissioner Ryan moved and Commissioner Lasman seconded to approve RESOLUTION
NO. 2012-06 Authorizing the Acquisition of Property in Connection with the Remove and
Rebuild Program(340153 d Avenue North).
Motion passed unanimously.
President Willson stated the EDA's appreciation for the work of the Recording Secretary.
5. ADJOURNMENT
Commissioner Ryan moved and Commissioner Lasman seconded adjournment of the Economic
Development Authority meeting at 7:58 p.m.
Motion passed unanimously.
04/09/12 -2
DRAFT
EDA Agenda Item No. 4a
EDA ITEM MEMORANDUM
DATE: April 25,2012
TO: Curt Boganey, City Manager
THROUGH: Gary Eitel, Business and Development Director ,
SUBJECT: Consideration of Approval of Grant Applications for Contamination Cleanup of
the Former Lifetime Fitness Located at 4001 Lake Breeze Ave. 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:
On October 24, 2011, the EDA approved the submittal of grant applications to the Metropolitan
Council and the Minnesota Department of Employment and Economic Development for the
environmental investigation, soils testing, and preparation of a Development Response Action
Plan for the Lifetime Fitness Site located at 4001 Lake Breeze Avenue (former Northwest
Racquet Club Site.)
In December, the City was notified that the Metropolitan Council had approved a $50,000 grant
from their Tax Base Revitalization Account to undertake this environmental review.
Also, on December 11, 2011, the EDA adopted Resolution No. 2011-30, A Resolution
Authorizing the Acquisition of MnDOT Excess Right of Way to Promote Economic
Development Opportunities (former Denny's Restaurant Site). This resolution recognized the
development opportunities associated with development of the MnDOT parcel (1.27 acres) with
the redevelopment of the 7.39 acre Lifetime Fitness Site.
Braun Intertec was retained by Real Estate Recycling to complete a Phase I and Phase II
Environmental Site Investigations and prepare a Response Action Plan in accordance with the
MPCA's Voluntary Investigation and Cleanup (VIC) guidelines for the redevelopment of
contaminated properties.
Mission:Ensuring an attractive,clean,safe,inclusive connnunitp that enhances the quality of life
for all people and preserves the public trust
EDA ITEM MEMORANDUM
On April 11, 2012, a site meeting with Real Estate Recycling, Braun Inteitec, and representatives
from the Metropolitan Council, DEED, Hennepin County, and City staff was held to review the
soils reports, test results, and following findings:
- the sites have approximately 2' to 12' of contaminated fill that had been placed on them;
- the previously outdoor/asphalt tennis courts had been painted with a material that
contained asbestos;
- the 2008 site demolition milled these asphalt courts and graded this contaminated
granular material on a portion of the site;
- the estimated costs for the environmental remediation for the redevelopment of the site
were projected at $1,330,000 which included the following major components ($300,000
for soil correction; $425,000 for removal of asbestos impacted soils; $135,000 for a vapor
barrier under the building, $150,000 for clean soil import, and $200,000 for
engineering/site inspections/monitoring/soils testing). Attached for your reference is a
copy of the estimated costs to implement the Response Action Plan for the total 8.66 acre
site.
Available Contamination Clean Up Grants:
The resolutions to be considered by the EDA address three contamination cleanup grant
programs which require the EDA to apply for the grant and be accountable for the expenditure of
fiends. A development agreement would be executed with the Developer, Real Estate Recycling,
LLC, who would manage and conduct all of the cleanup activities through private contractors
and consultants. Essentially, the EDA serves as a pass through of the grant funds to Real Estate
Recycling, LLC.
Department of Employment and Economic Development(DEED)
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 Envirommental 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
Missiou ismilib an attruedve_,gleam,safe,iiichisive Co11 munh 11�nt enhances the ualily of hfe
for all people and preserves the publie trust
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EDA ITEM MEMORANDUM
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.
Budget Issues:
There are no direct budget impacts to consider since Developer, Real Estate Recycling LLC, will
provide the local match for the DEED grant and the identified grant agencies are being requested
to provide all funding for contamination cleanup on the site. 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:
Strategic:
1. We will aggressively proceed with implementation of City's redevelopment plans
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Mission:Ensuring an attractive,clean,safe,inclusive connnuni47 that enhances the quality of life
for all people and preserves the public trust
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`^ Northwest Athletic Club
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t }� I 7 ,•� a ,` K�"`" MnDOT(excess)Parcel=1.27 acres
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PID:11-011-82-13-10-029 r�_
OWNER: LTF Real Estate Company,Inc.
2902 Corporate PI
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0 100 200 400 600
Feet
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Lifetime Site
Response Action Plan Implementation
Draft Cost Estimate
Task Comments Cost ($)
Development of more specific req's for the impl. of
the RAP. Includes more definition for the
contaminated soil correction to meet MPCA
protectiveness & utility&green space req's, a soil
RAP QAPP/SMP/Specs management plan for stockpiling, water 25,000
management, dust management and controls on
contaminated soil. In accordance with RAP and for
MPCA review and approval. Engineering
specifications for development of firm cost estimates.
Engineering oversight,
coordination, daily Includes on-site engineering for contaminated soil
reporting,
management, H&S monitoring and documentation 125,000
implementation report and reporting
Development of SWPPP and Contracts for soil
Permitting/Contracting correction and off-site disposal, includes soil 15,000
profiling, off-site clean soil source S&A
Soil Sampling and During RAP, analysis of in-place soils for confirmatory 40,000
Analysis purposes, dust S&A
Includes mob/demob, excavation and re-use of
contaminated urban fill on-site beneath building and
Soil Correction pavements. Includes minor GW de-watering, dust 300,000
control, storm water management by contractor
(implementation of SWPPP), utility line removal &
corridor construction, green space construction
Contaminated soil to Assumes minimal DRO/PAH contaminated soil for
80,000
'Subtitle D landfill disposal. 2000 cubic yards at$40/yd
Load, haul, dispose Asbestos contaminated soil/class
Asbestos Impacted soil 5/asphalt, assumes 1.5 feet deep over area of former 425,000
Disposal tennis courts, 5500 ton @ $70/ton, requires 5
persons on-site for loading, lining trucks
Required to separate contaminated urban fill from
Clean Soil Import water table and for providing regulatory required 150,000
buffer below building floor
Beneath entire floor of the building, Vapor Bond 20
Vapor Barrier for VOC's 135,000
mil Polyethylene, no venting
Groundwater Monitoring Assumes 1 year GW S&A, permanent wells 35,000
Total Estimated Cost $1,330,000
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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),has entered into a purchase agreement to
acquire the Lifetime Fitness Site, former Northwest Racquet Club, located at 4001 Lake Breeze
Avenue (the Site) and has made application for the industrial redevelopment of this 7.39 acre site
and an adjacent 1.27 acre parcel of excess right of way; and
WHEREAS,the environmental investigation and soil testing on these properties have
discovered the presence of 2' to 12' of contaminated soils across the site,including milled asphalt
coated with an asbestos paint; 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 1,2012
by the EDA for the Lifetime Fitness 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.
April 23, 2012
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 AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION TO THE
METROPOLITAN COUNCIL FOR THE TAX BASE REVITALIZATION ACCOUNT(LIFETIME
FITNESS SITE)
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,Real Estate Recycling has entered into a purchase agreement to acquire
the Lifetime Fitness Site,former Northwest Racquet Club,located at 4001 Lake Breeze Avenue(the
Site) and has made application for the industrial redevelopment of this property and an adjoining
1.27 acre parcel of excess right of way; and
WHEREAS,the environment investigation and soil testing of these properties have
discovered the presence of 2' to 12' of contaminated soils across the site, including milled asphalt
coated with an asbestos paint; and
WHEREAS, the environmental investigation and development of a development l
response action plan for the redevelopment of this 7.39 acre site and adjoining 1.27 acre parcel of
excess right of way 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
fiinding that is necessary for cleanup 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.
• Proposed cleanup activities at the Site do not qualify for Minnesota Petrofund 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 May 1,2012; 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.
April 23,2012
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.
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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 Lifetime
Fitness Site, former Northwest Racquet Club Site, located at 4001 Lake Breeze Ave, in Brooklyn
Center..
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 1,
2012, by the EDA for the Lifetime Fitness Site, former Northwest Racquet Club, located at 4001
Lake Breeze in Brooklyn Center.
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April 23, 2012
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.