CR 99-62 Approval Of Submission Of Grant Applications For Contamination Cleanup
CITY Or:
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March 31, 1999 Hop KIN S Council Report 99-62
e APPROVAL OF SUBMISSION OF GRANT APPLICATIONS FOR
CONT AMINA TION CLEANUP -STIELE/BAKKEN PROJECT
Proposed Action
Staff recommends approval of the following motion: Adopt Resolution 99-24.
authorizing submission of applications for a Contamination Cleanup Grant from the
Department of Trade & Economic Development and a Tax Base Revitalization Account
from the Metropolitan Council,
Overview
On October 6, 1998, Council approved authorization to submit applications for the
Contamination Cleanup Grant from the Department of Trade & Economic Development
and the Tax Base Revitalization Account (TBRA) from the Metropolitan Council. The
funding was to facilitate cleanup of the former Hennepin County dump/burn site located
on the vacant lot west of 10889 Excelsior Boulevard, Stiele/Bakken Investments, Inc., is
planning to develop this site into a business center and bank. The project did not receive
funding from last fall's grant cycle.
After discussions with Wayne Nelson, grant administrator, Met Council, and Stephanie
Williams, grant administrator, Department of Trade & Economic Development, it was
e decided to re-apply for the spring funding cycle,
To submit applications for these programs, it is required that the local unit of government
in which the project is located approve a resolution authorizing this submission, The
total allocation from the grants requested is $1,233,586, The grant programs are
available on semiannual cycles, and the deadline for submission for the spring
applications is May 3, 1999, The changes to the grant applications are detailed in this
report.
Primary Issues to Consider
. What are the changes to the grant applications?
. Why have changes been made to the project's budget?
Supporting Documents
. Resolution 99-24
. Letter from Beard Group
~ ~~~"dget
1m Hartshorn
. conom;c Development Coordinator
- -.--
.
Council Report 99-62, March 31, 1999 - Page 2
Primary Issues To Consider
. What are the changes to the grant applications from last cycle?
The dates that will be changed in the Development Agreement are detailed in
HRA Repo11 99-07 and will also be changed on the two grant applications
The amount of grant funding requested from the Department of Trade &
Economic Development equals $953,415. The amount of grant funding requested
from the Metropolitan Council is $280,171. The total of the two grant requests
equals $ 1,233,586, which is an increase of $727,410 from last cycle.
. Why have changes been made to the project's budget?
The costs have increased on the Frankie Piling system. The new costs are shown
on the attached proposed budget page.
Alternatives
. The City Council has the following alternatives regarding this matter:
1. Approve Council Resolution 99-24, as recommended by staff.
2. Continue this item for additional information. The implications of this alternative
would be that a delay would be caused in the developer's start of construction.
3. Deny Council Resolution 99-24. It is assumed that, based on this alternative, the
developer will not proceed with the proposed project as detailed.
.
CITY OF HOPKINS
. HENNEPIN COUNTY, MINNESOTA
RESOL UTION 99-24
RESOLUTION AUTHORIZING APPLICATIONS FOR CONTAMINATION CLEANUP
GRANT FROM THE DEPARTMENT OF TRADE & ECONOMIC DEVELOPMENT
AND A TAX BASE REVITALIZATION ACCOUNT FROM THE METROPOLITAN
COUNCIL - HOPKINS BUSINESS CENTER
BE IT RESOLVED that the City of Hopkins act as the legal sponsor for the project
contained in the Contamination Cleanup Grant and Tax Base Revitalization programs to be
submitted on May 3, 1999, and that the mayor of the City of Hopkins is hereby authorized to
apply to the Department of Trade and Economic Development and Metropolitan Council for
funding of this project on behalf of the City of Hopkins.
BE IT FURTHER RESOL YED that the City of Hopkins has the legal authority to
apply for financial assistance, and the institutional, managerial, and financial capability to ensure
adequate project administration.
BE IT FURTHER RESOL YED that staff is authorized to prepare and execute an
agreement with the developer which details the following:
The developer shall reimburse the City for any legal or consultant fees incurred with the
preparation, processing, and administration of the application or disbursement of funds;
. and
The developer shall reimburse the City or HRA for any local match payments.
BE IT FURTHER RESOL VED that the sources and amounts of the local match
identified in the application are committed to the project identified.
BE IT FURTHER RESOL VED that the City of Hopkins 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.
BE IT FURTHER RESOL YED that upon approval of its application by the state, the
City of Hopkins may enter into an agreement with the State of Minnesota for the above
referenced project, and that the City of Hopkins certifies that it will comply with all applicable
laws and regulations as stated in all contract agreements.
NOW, THEREFORE, BE IT RESOLVED that the mayor ofthc City of Hopkins is
hereby authorized to execute such agreements as are necessary to implement the project on behalf
of the applicant.
I CERTIFY THAT the above resolution was adopted by the City Council ofthe City of
Hopkins on the _ day of April, 1999.
SIGNED: WITNESSED:
e Mayor Signature
II
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Wednesday, March 31, 1999
Mr. Jim Hartshorn
Economic Development Coordinator
City of Hopkins
1010 First Street South
Hopkins, MN 55343-7573
RE: Met Council TBRA Grant Application and the DTED Contamination Clean-Up Grant
Application
Hopkins Business Center
Hopkins, MN
Dear Jim:
Please accept this letter on behalf of the Hopkins Business Center requesting the City of Hopkins
approve the resubmission of the above referenced grant applications. As you know the grant
applications to the above referenced programs were not approved for funding in the fa111998
. grant cycle. We have meet with representatives from both programs and have revie,ved our
applications and have clarified those portions of the previous applications that keep our requests
from being funded. It is our bcliefthat the I-mC project will be funded in the next grant cycle.
Thank you for your assistance in revie",.ing our applications with both agencies.
Sincerely,
The Beard Group, Inc.
V~
William H. Beard
President
WHB:
CC: Ed Stielc. The Stiele-Bakken Investment Co. LLC
Brad Bakken, The Sticle-Bakken Investment Co. LLC
Chuck Habiger, HKS & Associates
C:\Hopkins Dussine" C~nt~r\Ldt~rs\Hartshorn DTED costs Draft no. 2.doc
.
. PROPOSED PROJECT BUDGET FOR HOPKINS BUSINESS CENTER
HOPKINS, MN
I. CLEAN-UP BUDGET:
A. SITE INVESTIGATION & REMEDIATION PLAN DEVELOPMENT:
1. Phase I $ 2,200.00
2. Phase II $ 13,500.00
3. VIC Approval- RAP Plan $ 16.920.00
Total Costs: $ 32,620.00
B. IMPLEMENTING THE PLAN: CLEAN-UP COSTS:
1. Soil excavation: $ 48,200.00
2. Back-fill of excavation: $ 16,000.00
3. Contract for on-site testing during soils excavation: $ 15,000.00
4. Environmental Construction Administration: $ 20.000.00
5. Soils treatment costs:
a. Transportation of contaminated soils: $ 33,800.00
b. Landfill costs of contaminated soils: $ 148,000.00
Total Implementation $ 281,000.00
TBRA and DTED Eligible Clean-up budget $ 313,620.00
Total Clean-up budget $ 313,620.00
It II. DEVELOPMENTIREDEVELOPMENT BUDGET:
A. Special Foundation Requirements - Frankie Piles $ 895,200.00
B. Special Site Encapsulation Requirements - Underlayment $ 23,800.00
C. Methane Ventilation System $ 38,600.00
D. Site Preparation and Landscaping $ included D.
E. Construction of 74,000 s.f. OfficefWharehouse Buildings $5,731,985.00
F. Infrastructure Improvements $ included D.
Total DevelopmentJRedevelopment Budget $6,689,585.00
DTED Eligible Project Budget $1,271,220.00
TOTAL PROJECT BUDGET $7,003,205.00
III. PROPOSED COST ALLOCATION FROM PUBLIC SOURCES:
A. DTED (75% of DTED eligible project budget) $ 953,415.00
B. HOPKINS (12% ofDTED eligible clean-up budget) $ 37,634.00
C. TBRA (25% ofDTED eligible project budget minus local match) $ 280.171.00
Total Public Funding: $1,271,220.00
It