CR2002-167 App for grant asbestos abatement - Exc tech center
CITY Or.
Date: October 15, 2002 -
. HOPKINS Council Report 2002-167
RESOLUTION AUTHORIZING APPLICATION FOR FUNDS UNDER THE TAX BASE
REVITALIZATION ACCOUNT OF THE METROPOLITAN COUNCIL
Proposed Action
Staff recommends adoption of the fol/owing motion: Move to approve Resolution
2002-90 AuthorizinQ Application for Funds Under the Tax Base Revitalization
Account of the Metropolitan Council.
Overview
With this motion the Council would authorize City Staff to oversee the preparation and
submission of a grant application by Hopkins Mainstreet II, LLC and/or their designated
consultant. The grant application will seek funding through the Metropolitan Council's
Tax Base Revitalization account to be used for asbestos abatement related to the
Excelsior Tech Center development (formerly Alliant Techsystems). There is no local
match requirement.
Hopkins Mainstreet II, LLC (or their consultant) will be responsible for drafting all
. required reports, which would then be reviewed by City staff or by a consultant hired by
the City, before submission to the Metropolitan Council. Hopkins Mainstreet II, LLC will
also be responsible for paying all legal and consulting costs incurred by the City of
Hopkins relating to the grant application process, the subsequent administration of any I
funds received, and for the preparation and/or review of reports required to be
submitted to the Metropolitan Council.
Supportina Information
. Resolution 2002-90
. Draft Tax Base Revitalization Account Grant Application
~-~
Steven . Stahmer
Assistant to the City Manager
Financial Impact: $ Budgeted: Y/N Source:
-
. Related Documents (CIP, ERP, etc.):
Notes:
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CITY OF HOPKINS
. HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2002-90
RESOLUTION AUTHORIZING APPLlCA liON FOR FUNDS UNDER THE TAX BASE
REVIT ALlZA liON ACCOUNT OF THE METROPOLITAN COUNCIL
WHEREAS the City Council of the City of Hopkins has the power and authority to
adopt from time to time programs for the promotion of public health, safety and welfare,
such as programs related to the cleanup of contaminated sites and potentially
hazardous materials; and
WHEREAS the City of Hopkins is a participant in the Livable Communities Act
Housing Incentives Program of the Metropolitan Council, and is therefore eligible to
make application for funds under the Tax Base Revitalization Account; and
WHEREAS the City of Hopkins has identified a cleanup project within the City
that meets the purpose and criteria of the Tax Base Revitalization Account; and
WHEREAS the City has the institutional, managerial and financial capability to
ensure adequate project administration; and
. NOW, THEREFORE, BE IT RESOLVED, that the City of Hopkins agrees to act
as legal sponsor for the Excelsior Tech Center project detailed in the Tax Base
Revitalization Account grant application submitted on November 1. 2002;
BE IT FURTHER RESOLVED, that the foregoing Resolution is adopted on the
condition that Hopkins Mainstreet II, LLC shall agree to pay all legal and consulting
costs incurred by the City of Hopkins relating to the grant application process, the
subsequent administration of any funds received, and for the preparation and/or review
of reports required to be submitted to the Metropolitan Council.
Adopted by the City Council of the City of Hopkins, Minnesota, this day of
,2002.
Eugene J. Maxwell, Mayor
ATTEST:
. Terry Obermaier, City Clerk
.GENERAL INFORMATION
1. Applicant: City of Hopkins
Contact Person: Jim Kerrigan
Street Address: 1010 First Street South
City: Hopkins State: MN Zip Code: 55343
Phone: (952) 939-1355 FAX: (952) 935-1834
Authorized official(s) (Names and titles for contract execution): Jim Kerrigan-Planning & Economic
Development Director & Steve Stahmer Assisitant City Manager
SITE INFORMATION
2. Site Address: 600 2nd St, 149 Jackson Ave. N, 215 VanBuren Ave. N, 208 VanBuren Ave. N,
and 139 Jackson Ave. N. The site also includes other parcels w/o addresses assigned.
City: Hopkins
LCity is participating in Housing Incentives Program, check here
_Site is within a tax increment finance district, check here
.. Legal description of site:
Please see Exhibit 1 "Legal Description of Real Property"
4. Total acres of site: 17.91
5. Current Property Owner: Hopkins Mainstreet II, LLC
Street Address: 10 11th Avenue South
City: Hopkins State: MN Zip Code: 55343
Phone: (952) 930-0630 FAX: (952) 930-0631
6. Year current owner assumed possession of this site: August 2002
7. The current net tax capacity for this parcel is $4,045,000 (tax year 2002).
HISTORY
8. Attach a brief narrative history of this site, such as previous uses, owners, activities, facilities, attempts at
redevelopment--Le., how this site became a brownfield (limit: 3 pages).
Please see Exhibit 2 "Narrative", SiteHistory
.ONTAMINATION INFORMATION
.' Type/s and extent of contamination
Asbestos: a) attach map showing parcel and/or buildings (with f1oorplan) with location and extent of
contamination;
Please see Exhibit 7 "Asbestos Survey" by Legend Technical Services, Inc."
b) attach an inspection report which meets MN Department of Health requirements for identifying asbestos-
containing material; and
Please see Exhibit 7 "Asbestos Survey" by Legend Technical Services, Inc."
c) attach documentation to demonstrate that the proposed remediation procedures meet MN Department of
Health requirements for abatement or in-place management of asbestos containing- material.
Please see Exhibit 8" Enviro Remediation Services, Inc. best practices statement"
10. For all properties, attach excerpts from the RAP--or, in the case of petroleum or asbestos, other
appropriate documents--that indicate:
a} the long-term effects of the proposed clean-up (permanence of the removal and treatment of contaminants);
b) technical means for the clean-up/remediation; and
Please see Exhibit 8 " Enviro Remediation Services, Inc. best practices statement"
.) documentation of eligibility/ineligibility for any other public clean-up/mitigation funds for this site.
N/A
PROJECT GOALS
11. What are the development plans for the site after clean-up and/or mitigation? Please attach a narrative
description. Include rationale for anticipated market demand for this site (limit:3 pages).
Please see Exhibit 2 "Narrative", Public-Private Partnership, East End Study, Project Desciptions
12. Is there a commitment at this time from a third party for end-stage development on this site?
No Yes X: (Please attach commitment letters, capital improvement plans, city council resolutions, etc.)
Please Exhibit 10 "Ryland Homes Purchase Agreement", Exhibit 9 "City Resolutions",
The project is under construction and has secured a $9,000,000 construction loan from Stearns Bank.
13. Attach a brief description of the infrastructure requirements for this site (both existing
capacity and new capacity needed). Include roads and/or highways, transit, wastewater, utilities,
telecommunications infrastructure, or other infrastructure as appropriate (limit: 3 pages).
None. The project is serviced by existing roads and utilities (trunk) directly adjacent to the site.
.. What is the expected future net tax capacity for this parcel after development is complete and cash flows
have stabilized?
.20,485,000 projected net tax capacity, in tax year 2005 :
How was this figure determined, and who determined it?
66 housing sold @ $240,000 each, valued @ 94% of value plus 300,000 sf of industrial space valued
at $22.00 per square foot at 94% of value.
Bob Wilson, Hopkins City Assessor
15. How many total jobs are expected to be located on this parcel when this project is complete?
315. Number of expected jobs on this parcel when project fully complete.
How many new jobs will be created directly as a result of the redevelopment of this parcel?
285. Number net new jobs in the region resulting from this project.
What percentage of expected new jobs are in the following hourly rate categories (attach any supporting
information ):
0 % less than $8.49/hr. 10 % $10.50 - 12.49/hr.
- -
- 10_ % $8.50 - 10.49/hr. _80_% greater than $12.50/hr.
16. What mechanisms/programs are in place to ensure that local1 residents will have appropriate access to
.ew jobs created?
N/A
1 Jobs created within 114 mile of census tracts with poverty rates above 15% (Le., approximately two highest
deciles in region) qualify for priority; include narrative describing proposed connections between new jobs and
target workforce.
N/A
17. Attach the section of the municipality's Comprehensive Plan that addresses this site. Additional narrative
and/or maps may be necessary to describe the following:
a) map Showing local zoning for this parcel and the parcels surrounding it;
Please see Exhibit 11 "Zoning Map"
b) the municipality's comprehensive plan map showing long-term intended land use for this site and adjacent
parcels;
Please see Exhibit 12 "Comprehensive Plan"
c) the municipality's overall strategy for dealing with brownfield sites (may be a Redevelopment and
Reinvestment component of the Comprehensive Plan).
.'ease see Exhibit 13 "Municiple Strategy"
.ROPOSED PROJECT BUDGET
18. Attach a detailed, line-item clean-up/remediation budget (corresponding to the Remediation Action Plan or
Corrective Action Design agreement with MPCA; or AHERA standard procedures). Include a redevelopment
budget as well. Include all sources of revenue/funding, both public and private.* [See example, p. 8.]
Please see Exhibit 14 "Asbestos Remediation Budget"
No. This application is made in conjunction with an application to the Department of Trade and Economic
Development (DTED) for a Contamination Cleanup Grant.
0% Percent other public funding sources committed to this entire development/redevelopment project.
Source/s and purpose/s AmounUs
N/A
100% Percent private funding committed to this entire redevelopment/redevelopment project.
Source!s and purpose/s AmounVs
Please Exhibit 15 "Development Budget"
*Note: It is important to include the entire budget for cleanup and redevelopment. The Metropolitan Council
~ard may compensate for unanticipated reductions from initial projections for assistance from other public
unding sources the Council subsequently verifies will not be approved. Budget information will be shared with
officials of the Departments of Agriculture, Commerce and Trade and Economic Development as well as the
Minnesota Pollution Control Agency to verify the cost effectiveness of proposed strategies and assure that no
multiple reimbursements are possible for any activity.
19. Is there a cost-recovery plan in place to recover costs from responsible parties?
_Yes. Attach a brief description of the plan (note role of Attorney General, if applicable, or application to
Petrofund, if applicable).
X No. Explain.
N/A
PAYMENT INFORMATION
20. Mailing Address:
City of Hopkins
1010 First Street South
Hopkins, MN 55343
.ontact Person/s: Jim Kerrigan
Title: Director of Planning & Economic Development
.
.elePhOne #: (952) 939-1355
FAX # (952 ) 935-1834
MN 10 number:
Fed Emp 10 #
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