CR 10-120 TBRA Application for Former Mayon Plastics SiteO\TY OF
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October 15, 2010 y o P K N s Council Report 2010-120
TBRA APPLICATION FOR FORMER MAYON PLASTICS SITE
Proposed Action
Staff recommends adoption of the following motion: Move to approve resolution 2010-071
authorizing application to the Metropolitan Council Tax Base Revitalization Account (TBRA) for
the former Mayon Plastics site.
With this motion the application will be prepared and forwarded to the Met Council for
consideration.
Overview
The Mayon Plastics building at 17th Avenue North and Highway 7 has been vacant for a
significant length of time. Several developers have attempted to repurpose the property but
have been unable to make a project financially feasible due to the site design, demolition and
related costs. A development group once again has the property under contract and is
attempting to redevelop the site into a retail center of approximately 9700 square feet by
demolishing a portion of the existing structure.
The developer, Stonehenge USA, has become aware of possible asbestos contamination in the
building, which must be remediated in order to proceed with a reuse of the building. The costs
of remediation are prohibitive to redevelopment unless additional funding can be secured. The
Metropolitan Council's TBRA is the most appropriate source for that funding.
Under Met Council TBRA guidelines, the City must be the applicant and pass a resolution of
support. The application, and all costs associated with its preparation, will be paid by the
developer. If awarded TBRA funds, the City will require the developer to execute a subrecipient
agreement that will transfer any liability under the contract to the developer.
Primary Issues to Consider
The developer has not secured tenants for the retail space but intends to have signed leases
before the construction will proceed. It is anticipated that those tenants will be known prior to
the TBRA contract being executed.
Supporting Information
• Resolution 2010-071
Kersten Iverum G
Direct of Planning & Development
Financial Impact: $0 Budgeted:
Related Documents (CIP, ERP, etc.):
Notes:
Y/N Source:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2010-071
RESOLUTION AUTHORIZING APPLICATION TO THE METROPOLITAN LIVABLE
COMMUNITIES TAX BASE REVITALIZATION ACCOUNT — MAYON PLASTICS SITE
WHEREAS the City of Hopkins is a participant in the Livable Communities Act's Local Housing
Incentives Account Program for 2010 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 has identified a contamination clean-up project within the City that meets the Tax
Base Revitalization Account's purpose/s and criteria; and
WHEREAS the City has the institutional, managerial and financial capability to ensure adequate
project and grant administration; and
WHEREAS the City certifies that it will comply with all applicable laws and regulations as stated in
the contract grant agreements; 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:
The project would not be financially feasible if the costs of environmental remediation were not
offset with public assistance, which is not available through other funding sources.
BE IT FURTHER RESOLVED that, if the City is awarded a Tax Base Revitalization Account grant
for this project, the City Council of Hopkins, Minnesota 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 November 1, 2010, subject to the
execution of an acceptable subrecipient agreement.
Adopted this 19th day of October, 2010.
WE
Eugene J. Maxwell, Mayor
Attest:
Terry Obermaier, City Clerk