IV.7. Environmental Cleanup Grant Application for Blake Road Station, YoungquistOctober 20, 2020 Council Report 2020-078
ENVIRONMENTAL CLEANUP GRANT APPLICATIONS FOR BLAKE ROAD STATION
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution 2020-057
approving applications to the Metropolitan Council Tax Base Revitalization Account, DEED
Contamination Cleanup, and Hennepin County Environmental Response Fund programs for the
Blake Road Station project.
Overview
Trilogy Real Estate Group has submitted land use applications for its proposed Blake Road
Station project, which would entail redevelopment of the Hopkins Commerce Center, to be
done in three stages. The first phase is located at 8594 Excelsior Boulevard and would be a
mixed use building including approximately 220 multi-family housing and 2,000 square feet of
retail. As part of the development of Phase A, Trilogy has asked the City of Hopkins to support
grant applications for environmental cleanup to the Minnesota Department of Employment and
Economic Development (DEED), the Metropolitan Council, and Hennepin County.
Environmental investigations found contamination above the Minnesota Pollution Control
Agency’s (MPCA) applicable standards for soil, groundwater, and soil vapor, which must be
remediated before development can begin. Grant funds from these programs will be used to
implement the Response Action Plan that has been approved by the MPCA.
Applicants for grants from DEED and the Metropolitan Council must be local governmental
units. Therefore, the City would act as the sponsor and applicant for these programs.
Developers may apply directly to Hennepin County, with a resolution from the City. The
projected cleanup costs are $761,188; the total amount of the three grants requests is
$620,159. All costs associated with the development of the applications will be paid by Trilogy,
including any local match requirements.
If approved, funds from DEED and the Metropolitan Council would be provided to the City of
Hopkins and Trilogy would be the subrecipient of the grant funds. The City would enter into a
subrecipient agreement with Trilogy.
Supporting Information
• Resolution 2020-057
• Summary of Trilogy Request
________________________________________
Jan Youngquist, AICP
Community Development Coordinator
Financial Impact: $_____0____Budgeted: Y/N ___ Source: __________
Related Documents (CIP, ERP, etc.): _______________________________________
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2020-057
RESOLUTION AUTHORIZING APPLICATIONS TO THE METROPOLITAN COUNCIL TAX
BASE REVITALIZATION ACCOUNT, DEED CONTAMINATION CLEANUP, AND
HENNEPIN COUNTY ENVIRONMENTAL RESPONSE FUND PROGRAMS FOR THE
BLAKE ROAD STATION PROJECT
WHEREAS the City of Hopkins has identified a contamination cleanup project within the City
located at 8594 Excelsior Boulevard to be developed as Blake Road Station by Trilogy Real
Estate Group that meets the purposes and criteria of these programs; and
WHEREAS the City of Hopkins is located within the seven county metropolitan area defined
in section 473.121, subdivision 2, is a participant in the Livable Communities Act's Local
Housing Incentives Account Program for 2020 as determined by the Metropolitan Council,
and is therefore eligible to make application apply for funds under the Tax Base Revitalization
Account; and
WHEREAS the City finds that the required contamination cleanup will not occur through
private or other public investment within the reasonably foreseeable future without Tax Base
Revitalization Account grant funding; and
WHEREAS the City 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 cleanup completion and states that this representation is based on the
following reasons and supporting facts; and
WHEREAS the City has not violated any Federal, State or local laws pertaining to fraud,
bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice;
and
WHEREAS the City has the legal authority to apply for financial assistance and the
institutional, managerial and financial capability to ensure adequate project and grant
administration; and
WHEREAS the sources and amounts of the local match identified in the Department of
Employment and Economic Development application are committed to the project identified;
and
WHEREAS the City certifies that it will comply with all applicable laws and regulations as
stated in the contract grant agreements.
THEREFORE BE IT RESOLVED that, the City Council of Hopkins authorizes the City
Manager to submit an application for Metropolitan Council Tax Base Revitalization Account
grant funds and, if the City is awarded a Tax Base Revitalization Account grant for this
project, the City will be the grantee and agrees to act as legal sponsor to administer and be
responsible for grant funds expended for the project contained in the Tax Base Revitalization
grant application submitted on November 2, 2020.
BE IT FURTHER RESOLVED that, the City Council of Hopkins approves the Contamination
Cleanup grant application to be submitted to the Department of Employment and Economic
Development (DEED) on November 2, 2020, by the City of Hopkins for the Blake Road
Station site.
BE IT FURTHER RESOLVED that the City of Hopkins acts as the legal sponsor for project
contained in the Contamination Cleanup Grant Program to be submitted on November 2,
2020 and that the City Manager is hereby authorized to apply to the Department of
Employment and Economic Development for funding of this project on behalf of the City of
Hopkins.
BE IT FURTHER RESOLVED that, the City Council of Hopkins approves the submittal of an
Environmental Response Fund grant application to the Hennepin County Environment and
Energy Department on November 2, 2020 by Trilogy Real Estate Group.
NOW, THEREFORE BE IT FINALLY RESOLVED that, upon approval of the grant
applications, the Mayor and the City Manager are hereby authorized to execute such
agreements with the State of Minnesota and the Metropolitan Council as are necessary to
implement the project on behalf of the City of Hopkins.
Adopted this 20th day of October, 2020.
By:__________________________
Jason Gadd, Mayor
ATTEST:
____________________________
Amy Domeier, City Clerk
AA/EOE
Braun Intertec Corporation
11001 Hampshire Avenue S
Minneapolis, MN 55438
Phone: 952.995.2000
Fax: 952.995.2020
Web: braunintertec.com
October 15, 2020
Jan Youngquist
City of Hopkins
1010 1st Street South
Hopkins, MN 55343
Re: Project Summary of Contamination Cleanup Grant Applications
Blake Road Station Apartments – Phase A
8594 Excelsior Boulevard
Hopkins, Minnesota
Dear Ms. Youngquist:
Braun Intertec Corporation is assisting Trilogy Real Estate Group with application for the fall 2020
contamination cleanup grants offered by the State of Minnesota Department of Employment and
Economic Development (DEED), Hennepin County’s Environmental Response Fund (ERF), and
Metropolitan Council’s Tax Based Revitalization Act (TBRA). Applications for contamination cleanup
grants are a collaboration between the developer and City.
The Blake Road Station project will serve as a welcoming gateway and anchor for the new southwest
light rail transit station and will advance long-standing City goals outlined in numerous area planning
documents. The high-quality redevelopment of the project site and creation of a new transit-oriented
node with significant residential density will provide a catalyst for redevelopment along the City’s east
end. The Blake Road Station project is planned to be developed in a phased approach consisting of
three phases. The first phase, Phase A is located at 8594 Excelsior Boulevard in Hopkins, Minnesota and
is scheduled to commence in 2021. Current plans for Phase A of the project include demolition of the
existing site building and construction of a new 331,688 square-foot, 7-story mixed-use building with
approximately 220 units of residential housing and approximately 2,000 square feet of retail spaces on
the street level. The proposed development includes one level of below grade parking.
Phase A of the project is currently occupied with a strip mall with various commercial tenants including a
hair and nail salon, liquor store and chiropractor among others. A portion of the existing building is
vacant and was most recently occupied by a catering company. Historical uses of the Site include a boat
repair facility with a paint booth and a laboratory.
Recent environmental investigation work identified contamination at levels above the Minnesota
Pollution Control Agency’s (MPCA’s) applicable soil, groundwater and soil vapor standards. Site soil is
impacted by petroleum and non-petroleum contaminants. Groundwater, which is located approximately
15 to 19 below ground surface, is contaminated by petroleum and chlorinated volatile organic
compounds (CVOCs), specifically trichloroethene (TCE). Soil vapor beneath the existing building is
contaminated with TCE and tetrachloroethylene (PCE) above residential standards. Braun Intertec
prepared a Response Action Plan (RAP) that outlines the planned activities designed to remediate the
contamination at the site and mitigate risks to human health and the environment caused by the
identified impacts. The RAP was recently approved by the MPCA.
Blake Road Station Apartments – Phase A
October 15, 2020
Page 2
A summary of the costs associated with environmental investigation and implementation of planned
response actions is provided in the attached table. This table presents the current cost allocation by
grantor (DEED, Hennepin County or Met Council) and includes developer funds that are required to
meet match requirements of each grant agency. These estimated total cost and specific allocations by
grant agency may change slightly as we work toward finalizing the grant applications. If grant
applications are successful, a majority of the environmental cleanup costs will be paid by the grant
agencies. Funds not provided through grants may be paid for by the developer or by value engineering
building design.
If you have any questions regarding this letter, please feel free to contact Brian Hoese at 612.940.3270
or bhoese@braunintertec.com and Pat Carr at 218.343.4471 or pcarr@braunintertec.com.
Sincerely,
BRAUN INTERTEC CORPORATION
Patrick E. Carr, CHMM
Project Scientist
Brian J. Hoese, PE
Group Manger, Senior Engineer
Enclosure:
Estimated Contamination Cleanup Budget and Funding Allocation Table
DEED Met Council Hennepin
County Developer Total
1 Phase I Environmental Site Assessment 2,800$ 100%Yes 2,800 2,800
2 Phase II Site Investigation and second round vapor sampling 53,987$ 100%Yes 53,987 53,987
3 Response Action Plan (RAP) Preparation 7,500$ 100%Yes 5,625 1,875 7,500
4 Regulated Materials Survey 29,629$ 100%Yes 29,629 29,629
5 Regulated Materials Survey - Pre-Demolition/Destructive 4,712$ 0%Yes 4,712 0 4,712
6 Environmental Plans and Specificaitons/Vapor Mitigation System Design 8,000$ 0%Yes 6,000 2,000 8,000
7 Pre-Construction MPCA Brownfield Program Review and Liability Assurances 2,000$ 0%Yes 1,500 500 2,000
108,628 13,125$ 4,712$ -$ 90,791$ 108,628$
12%4%84%
- Contaminated Soil Excavation and Segregation per MPCA-approved RAP Tons 1,800 $4.00 $7,200 0%Yes 5,400 936 864 7,200
- Contaminated Soil - Transport to disposal facility Tons 1,800 $13.00 $23,400 0%Yes 17,550 3,042 2,808 23,400
- Contaminated Soil - Cost to Dispose at Industrial Landfill Tons 1,800 $20.00 $36,000 0%Yes 27,000 4,680 - 4,320 36,000
2 RAP Implementation Environmental Monitoring, Testing and Documentation Reporting $60,000 0%Yes 22,800 15,000 15,000 7,200 60,000
3 Active Vapor Mitigation System under Parking Garage Sq. Ft.51,450 $4.00 $205,800 0%Yes 102,900 78,204 24,696 205,800
4 Utility Corridor Vapor Controls Sq. Ft.5,000 $2.00 $10,000 0%Yes 7,500 1,300 1,200 10,000
Abatement - Asbestos $107,860 0%Yes - 57,860 50,000 0 107,860
Abatement - Regulated Materials $8,500 0%Yes 8,500 8,500
Abatement - Professional Services (Specifications Development)$1,850 0%Yes 1,850 0 1,850
Abatement - Professional Services (Air Monitoring)Day 5 $1,200 $6,000 0%Yes 6,000 0 6,000
Abatement - Professional Services (Reporting)$950 0%Yes 950 0 950
7 Demolition $180,000 0%Yes - 130,000 50,000 0 180,000
8 MPCA Voluntary Program Charges for Technical Approvals and Liability Assurances $5,000 0%Yes 3,000 1,350 - 650 5,000
652,560$ 186,150$ 301,172$ 115,000$ 50,238$ 652,560$
28.5%46.2%17.6%7.7%100.0%
761,188$ 199,275$ 305,884$ 115,000$ 141,029$ 761,188$
% of Eligible 26.2%40.2%15.1%18.5%100%
Note:Part B developer costs meet 12% minimum match requirement of DEED eligible Lines 1, 2, 3, 4 & 8
Estimate
Estimate
6
Estimate
Estimate
5
Total Environmental Costs
Subtotal - RAP Implementation Activities
A. Pre-Development Environmental Work
Estimated Contamination Cleanup Grant Allocations
Blake Road Station Phase A
Hopkins, Minnesota
October 15, 2020
Item Activity Units Estimated
Quantity Unit Cost Cost
Estimate
Funding Allocation Request
% Complete Grant Eligible
Estimate
Estimate for 50% of building
Subtotal - Pre-Development Environmental Work
Estimate
Estimate
Estimate
B. RAP Implementation Activities
1
Soil Remediation During Construction:
Estimate
Prepared by Braun Intertec Corporation