IV.3. Resolution approving an application to the DEED Contamination Cleanup Grant Program for the Blake Road Station Phase B project; YoungquistApril 19, 2022 Council Report 2022-039
DEED ENVIRONMENTAL CLEANUP GRANT APPLICATION FOR
BLAKE ROAD STATION PHASE B
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution 2022-033 approving
an application to the DEED Contamination Cleanup Grant Program for the Blake Road Station Phase B
project.
Overview
The City of Hopkins granted site plan approval for Blake Road Station Phase B to TF Hopkins, LLC
(Trilogy Real Estate Group) on April 5, 2022. The site is located at 8490 Excelsior Boulevard and will
be developed with a mixed use building including 250 multi-family residential units and 10,000 square
feet of commercial space. As part of the development of Blake Road Station Phase B, Trilogy has
asked the City of Hopkins to support a grant application for environmental cleanup to the Minnesota
Department of Employment and Economic Development (DEED). 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 this program will be used to implement the Response Action Plan that has been approved by the
MPCA.
Applicants for grants from DEED must be local governmental units. Therefore, the City would act as
the applicant for this grant program . All costs associated with the development of the application will
be paid by Trilogy, including the local match. The estimated cleanup costs are $1,408,775 and the
grant request is for $963,146. DEED requires a 25 percent local match for its contamination cleanup
grants. The City approved financial assistance for the balance of the environmental cleanup costs that
were not funded through grants for Phase A of the Blake Road Station development. Trilogy has not
requested financial assistance for environmental remediation from the City for Phase B at this time.
However, this does not preclude Trilogy from seeking financial assistance from the City for
environmental remediation at a future date.
If the grant is approved, funds from DEED would be provided to the City of Hopkins on a
reimbursement basis and Trilogy would be the subrecipient of the grant funds. The City would enter
into a subrecipient agreement with Trilogy to ensure its compliance with the terms of the grant.
Supporting Information
• Resolution 2022-033
• 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 2022-033
RESOLUTION AUTHORIZING APPLICATION TO THE DEED CONTAMINATION CLEANUP
GRANT PROGRAM FOR THE BLAKE ROAD STATION PHASE B PROJECT
WHEREAS the City of Hopkins has identified a contamination cleanup project within the City
located at 8490 Excelsior Boulevard to be developed as Blake Road Station Phase B by TF
Hopkins, LLC (Trilogy Real Estate Group) that meets the purposes and criteria of this program; 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 under section 473.254, 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 approves the Contamination
Cleanup grant application to be submitted to the Department of Employment and Economic
Development (DEED) on May 2, 2022, by the City of Hopkins for the Blake Road Station Phase B
site.
BE IT FURTHER RESOLVED that the City of Hopkins acts as the legal sponsor for the project
contained in the Contamination Cleanup Grant Program to be submitted on May 2, 2022 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.
NOW, THEREFORE BE IT FINALLY RESOLVED that, upon approval of the grant application, the
Mayor and the City Manager are hereby authorized to execute such agreements with the State of
Minnesota as are necessary to implement the project on behalf of the City of Hopkins.
Adopted this 19th day of April, 2022.
By:
__________________________
Patrick Hanlon, Mayor
ATTEST:
____________________________
Amy Domeier, City Clerk
Braun Intertec Corporation
11001 Hampshire Avenue S
Minneapolis, MN 55438
Phone: 952.995.2000
Fax: 952.995.2020
Web: braunintertec.com
April 12, 2022
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 B
8490 Excelsior Boulevard
Hopkins, Minnesota
Dear Ms. Youngquist:
Braun Intertec Corporation is assisting Trilogy Real Estate Group with application for the spring 2022
contamination cleanup grants offered by the State of Minnesota Department of Employment and
Economic Development (DEED). Application of the contamination cleanup grants is 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 second phase, Phase B is located at 8490 Excelsior Boulevard in Hopkins, Minnesota
and is scheduled to commence in 2022. Current plans for Phase B of the project include demolition of
the existing site building and construction of a new 404,000 square-foot, 7-story mixed-use building with
approximately 250 units of residential housing and approximately 10,000 square feet of retail spaces on
the street level. The proposed development includes one level of below grade parking.
Phase B of the project is currently occupied with a strip mall with various commercial tenants including
an auto parts store, restaurants, a grocer, and a laundromat. Historical uses of the Site include a filling
station and laundry mat.
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.
A summary of the costs associated with environmental investigation and planned response actions is
AA/EOE provided in the attached table. This table presen ts the current cost allocation for DEED and includes
Blake Road Station Apartments – Phase B
April 12, 2022
Page 2
developer funds that are required to meet the DEED match requirement. If the grant application is
successful, a majority of the environmental cleanup costs will be paid by DEED. Funds not provided
through grants will be paid for by the developer.
If you have any questions regarding this letter, please feel free to contact Brian Hoese at 612.940.3270
or bhoese@braunintertec.com and Travis Pennings at 612.910.7620 or tpennings@braunintertec.com.
Sincerely,
BRAUN INTERTEC CORPORATION
Travis B. Pennings, P.E.
Project Engineer
Brian J. Hoese, P.E.
Group Manger, Senior Engineer
Enclosure:
Estimated Contamination Cleanup Budget
DEED Match Total
1 Response Action Plan (RAP) Preparation 6,000$ 100%4,500 1,500 6,000
2 Test Trenching for Supplemental Soil Charaterization 11,100$ 75%8,325 2,775 11,100
3 Regulated Materials Survey - Pre-Demolition/Destructive 3,550$ 0%2,663 888 3,550
4 Pre-Construction MPCA Brownfield Program Review and Liability Assurances 2,000$ 0%1,500 500 2,000
22,650 16,988$ 5,663$ 22,650$
75%25%
- Contaminated Soil Excavation and Segregation per MPCA-approved RAP Tons 5,250 $4.00 $21,000 0%15,750 5,250 21,000
- Contaminated Soil - Transport to disposal facility Tons 5,250 $13.00 $68,250 0%51,188 17,063 68,250
- Contaminated Soil - Cost to Dispose at Industrial Landfill Tons 5,250 $20.00 $105,000 0%78,750 26,250 105,000
2 RAP Implementation Environmental Monitoring, Testing and Documentation Reporting, vap $88,000 0%66,000 22,000 88,000
3 Active Vapor Mitigation System Sq. Ft.85,392 $4.00 $341,568 0%256,176 85,392 341,568
4 Utility Corridor Vapor Controls Sq. Ft.5,000 $2.00 $10,000 0%7,500 2,500 10,000
Abatement - Asbestos $107,860 0%107,860 107,860
Abatement - Regulated Materials $8,500 0%8,500 8,500
Abatement - Professional Services (Specifications Development)$1,750 0%1,750 1,750
Abatement - Professional Services (Air Monitoring)Day 4 $1,375 $5,500 0%5,500 5,500
Abatement - Professional Services (Reporting)$950 0%950 950
7 Demolition (Cost is full demolition, soil impacts are assumend below ~50% of building)$360,000 0%270,000 90,000 360,000
8 Stormwater System per MPCA prohibition of an infiltration type system $262,727 0%197,045 65,682 262,727
9 MPCA Voluntary Program Charges for Technical Approvals and Liability Assurances $5,000 0%3,750 1,250 5,000
1,386,105$ 946,159$ 439,946$ 1,386,105$
1,408,755$ 963,146$ 445,609$ 1,408,755$
A. Pre-Development Environmental Work
Estimated Contamination Cleanup Budget
Blake Road Station Phase B
Hopkins, Minnesota
April 12, 2022
Item Activity Units Estimated
Quantity Unit Cost Cost
Estimate % Complete
Funding Allocation Request
Estimate
Estimate
Estimate
Subtotal - Pre-Development Environmental Work
B. RAP Implementation Activities
1
Soil Remediation During Construction:
Estimate
5 Estimate
Estimate
6
Estimate
Estimate
Estimate
Estimate
Estimate
Subtotal - RAP Implementation Activities
Total Environmental Costs
Prepared by Braun Intertec Corporation