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HomeMy WebLinkAbout2002-03-15 Briggs & Morgan Ltr to OPH RE Possible TIFBRIGGS AND MORGAN PROFESSIONAL ASSOCIATION March 15, 2002 Judy Hoist City Finance Director City of Oak Park Heights 14168 Oak Park Boulevard P.O. Box 2007 Oak Park Heights, MN 55082 -2007 Dear Judy: 1388158v1 VIA 8 2OOz Re: Possible Tax Increment Financing District For Tim Nolde Project I am writing to respond to your recent call to me on this. I understand Tim Nolde has approached the City with a request for tax increment financing, although the exact contours of such a TIF district and the type of the proposed project are indefinite. As you know, the tax increment law has grown increasingly more complicated. In the typical case, one starts with a precise parcel or delineated area of land, together with a fairly complete description of the new facilities to be constructed thereon, and then can proceed to determine whether or not a tax increment district and tax increment assistance are possible. For these and other reasons, any guidance given in this letter must of necessity be incomplete and over - general. I understand that the site of such a tax increment district might include the auto salvage properties and certain adjacent properties, including possibly certain homes which are currently existing nearby. The reuse of this property, should the project proceed, is assumed to be some sort of residential reuse, either rental or owner - occupied. I believe there are only two possibilities for a tax increment financing district in this situation. The first would be a "redevelopment district" or a lesser sub - species thereof known as a "renewal and renovation district ". In this regard, I have enclosed the definitions of those two districts from the tax increment law and have highlighted certain provisions to help identify the basic qualifications. MINNEAPOLIS OFFICE IDS CENTER ■ WWW BRIGGS.COM MEMBER --- LEX MUNDI, A GLOBAL ASSOCIATION OF INDEPENDENT LAW FIRMS :200 FIRST NATIONAL BANK BUILDING 332 MINNESOTA STREET SAINT PAUL, MINNESOTA 55101 TELEPHONE (651) 223-6600 FACSIMLE (651) 223 -6450 WRITER'S DIRECT DIAL (651) 223-6420 WRITER'S E-MAIL jomeara@briggs.com BRIGGS AND MORGAN Judy Hoist March 15, 2002 Page2 From my limited knowledge of the possible property in question, I am presently doubtful that a redevelopment or a renewal and renovation tax increment financing district is possible. I say that because I'm not certain that the requisite number of buildings would be "structurally substandard," as required, or that a sufficient percentage (generally, at least 15%) of the area of the tax increment financing district (however it may come to be drawn) would be considered "occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures," again as required in the enclosed excerpts from the tax increment law. If, however, a specified area could qualify as such a redevelopment tax increment district, or a renewal and renovation tax increment district, then the actual reuse of the property would no longer be an issue as far as qualification goes (for example, there would not be income limits for homeowners purchasing the units or renters renting the units, as is the case for housing tax increment districts discussed below). However, there are a number of other tax increment financing rules which come into play, including limitations on how the increment from a redevelopment district can be spent. The other possibility would be a "housing" tax increment district. Here, the focus is not on what is on the property now, but what sort of housing will be corning for the area and, more particularly, what income limits it will be necessary to observe for the purchasers of the housing (if it is owner - occupied) or for the renters (if it is apartments). If the project for such a tax increment district would be owner - occupied housing, then at least 95% of the housing units would have to be sold to and occupied by initial purchasers that meet the following income limits. For a "family" of two persons or fewer, the limit would be 100% of the greater of the area median gross income or the statewide median gross income. If the household size is three or more persons, then the percentage goes to 115 %. For 2002, I believe the basic income figure would be $76,700, which would be the limit for one or two person households, and $115% of that number (or $88,205) would be the limit for purchasing households of three or more persons. These numbers are revised each fiscal year by HUD. When it comes to rental housing, the requirements are that the rental project meet one of three set aside income limits, namely, the 20/50, the 40/60, or the 50/80 limit. For example, 20/50 means that at least 20% of the units must be rented to and occupied by persons /families whose income does not exceed 50% of area median gross income, adjusted for family size. 1388158v1 For the 20/50 test, in 2002 this would translate to the following income limits: BRIGGS AND MGRGAN Judy Hoist March 15, 2002 Page 3 The above discussion is intended only to give some basic rules of eligibility for possible tax increment treatment. I again qualify the above in its entirety. Only by sitting down and reviewing the final details can the determination be made whether or not a particular area or a particular project would qualify to be established as a tax increment project and to receive tax increment assistance. JO /peg Enclosure cc: (w /encl.): Kris Danielson 1388158v1 # of Persons Income Limit 1 $26,845 2 30,680 3 34,515 4 38,350 5 41,418 rs very ti y ames P. O'Meara Fiscal Years 2002- 2003 Con + Trade & Economic Development Business & Community Development tamination Cleanup Grant Application Brownfields and Community Assistance Unit FY 02 -03 TABLE OF CONTENTS Instructions Purpose /Background 11 Eligible Costs III Funding Availability III Eligible Applicants III Qualifying Sites III Required Budget/Schedule IV Local Match Requirement V Required Appraisals VI Awarding Grants VI Application Site Identification /Site History 2 Site Information 2 Site History 3 cleanup Contamination 4 Cost Recovery 6 Cost Analysis 7 Investigation, Cleanup and Project Cost Budgets 7 Budget Table 8 Appraisal 8 Financing 9 Local Match Requirement 9 Development Assessment Potential After Cleanup 10 Property Taxes 11 Job Creation 12 Job Table 12 Project Schedule 13 Third Party /Company Commitment information 14 Payment Information 14 Resolutions 15 Resolution #1 15 Resolution #2 16 FY 02 -03 cleanup MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT 500 Metro Square 121 m 7th Place East St. Paul Minnesota 55101 Contact: Brownfields and Community Assistance Unit 651 - 296 -5005 CONTAMINATION CLEANUP GRANT APPLICATION ***YOU MUST READ THE FOLLOWING NARRATIVE TO FULLY UNDERSTAND THE APPLICATION PROCESS*** INSTRUCTIONS Pursuant to Minnesota Statutes §§ 116J.551 116J.558, the Minnesota Department of Trade and Economic Development (DTED) has the authority to award grants for the cleanup of contaminated sites to allow for redevelopment. Contamination Cleanup Grant applications are accepted semiannually. Deadlines for application are November 1 and May 1 of each year. In the event that these days fall on a weekend, the deadline will be the following business day. Applications must be received by DTED by 4 P.M. on either date. You must submit the original application and 2 copies. NOTE: An applicant can apply for more than one site. However, an application must be completed for each site individually. Please fill out the entire application. All applications must be complete upon submission in order to qualify for a grant. PURPOSE/BACKGROUND: The Contamination Cleanup Grant program was established by the 1993 legislature to provide funds to clean up contaminated sites and provide a greater opportunity to convert contaminated property into a marketable asset. The main objective of this program is to serve the best interests and needs of communities by removing pollutants from sites within those communities in order to provide developable land and reduce the potential threat to public health and the environment. The removal of contaminants also contributes to the economic well -being of communities by providing new jobs and increasing the tax base on sites that were previously polluted and unproductive or not producing at their highest potential. 11 FY 02 - 03 ELIGIBLE COSTS: The Contamination Cleanup Grant can pay up to 75% of the cost of cleaning up contamination defined under the Minnesota Superfund Statute (MS. § 115B.02), as well as petroleum contamination. Examples of petroleum contamination that may be eligible under this program are rail yards, scrap yards, bulk oil storage facilities, and under and above- ground storage tanks that are not eligible for the Minnesota Petrofund (see M.S. § 115C.01). For information on contaminant eligibility under this program, see the Qualifying Sites section below. FUNDING AVAILABILITY: The total legislative appropriation for this grant program for fiscal years 2002 and 2003 is $7 million of general fund monies for the cleanup of Superfund contaminants and $12.4 million of Petrofund monies for the cleanup of eligible petroleum contamination. Since the program runs on a semi- annual grant cycle, the monies will be divided among the four cycles run during the biennium. Up to $250,000 of this funding will be awarded per fiscal year under DTED's Investigation and RAP Development Grants. The legislature has designated that at least 25% of available funds be spent on remediating sites in Greater Minnesota unless sufficient applications are not received. This allows the grant program to assist with cleanup efforts statewide. ELIGIBLE APPLICANTS: Eligible applicants for this program are statutory or home rule charter cities, economic development authorities, housing and redevelopment authorities, counties, or port authorities. While these are the eligible applicants, the site can be either privately or publicly owned. QUALIFYING SITESe A site must meet each of the following criteria in order to qualify for a Contamination Cleanup Grant: cleanup 1) A grant cannot be given to a municipality in the Twin Cities Metropolitan Area unless it is participating in the Metropolitan Council's Local Housing Incentives Program. For information, call Guy Peterson at the Metropolitan Council at (651) 602 -1418. 2) A site cannot be scheduled for funding under the Federal Superfund Program (United States Code, title 42, section 9601 et seq.) or the Environmental Response and Liability Act (Minnesota Statutes §§ 115B.01 to 115B.24) under the current or next fiscal year. 3) A site must contain contaminants, pollutants or hazardous substances as referenced in Minnesota Statutes § 115B.02 or petroleum that is not eligible for the Minnesota Petrofund. Asbestos abatement in buildings does not qualify under this grant program. 4) A site must have 1) an appraised value after adjusting for the effect on the value due to contamination (pre-cleanup) that is less than 75% of the estimated project costs (see definition of Project Cost) costs or, 2) an appraised value less than or equal to the estimated cleanup costs (see definition of Cleanup Cost below) for the site and the cleanup costs equal or exceed $3 per square foot for the site. Accepted appraisal methodology and independent appraisers must be used in appraising the site. 111 FY 02 -03 5) Finally, to qualify for this grant program, it is expected that the site will be improved with buildings or other improvements, and that these buildings or improvements will provide a substantial increase in the property tax base or will be used for an important publicly owned or tax exempt facility. The final development of polluted sites may include, for example, commercial, industrial, office or housing development. The above criteria are aligned with the major goals of this program: public benefits, redevelopment and economic development. In order to disburse monies to a wider range of contaminated sites, we will not fund sites currently receiving federal or state funding under the Superfund program. We also will not duplicate efforts by funding activities eligible for funding under any other state cleanup program (i.e., the Department of Agriculture's ACRRA program, other MPCA programs or Petrofund, etc.). THE 10% OF UNREIMBURSABLE COSTS UNDER THE MINNESOTA PETROFUND PROGRAM ARE NOT ELIGIBLE UNDER THIS PROGRAM. Also, any match required for other state cleanup programs are not eligible under this grant. REQUIRED BUDGET /SCHEDULE: The application requires that cleanup costs and project costs be identified. For purposes of completing the budgets in the application, it is necessary to follow the statutory definitions of "cleanup cost" and "project cost." Cleanup Cost: "The costs of developing and implementing a response action plan, but does not include implementation costs incurred before the award of a grant unless the application for the grant was submitted within 180 days after the response action plan was approved by the commissioner of the pollution control agency." This means site assessment /testing and cleanup are eligible for grant funds. However, site assessment/ testing that has been paid for by grant proceeds under the Contamination Investigation and RAP Development Grant are not eligible. An applicant can begin to implement the approved RAP before being awarded a grant if application for the grant is made within 180 days of the MPCA approving the response action plan. This is done, of course, at the discretion and risk of the applicant. Implementation of the RAP prior to a grant award does not obligate DTED to reimburse the costs incurred nor provide funding to complete the RAP if a grant is not awarded. Project Cost: "The cleanup costs for the site (see above definition), and the cost of related site acquisition, demolition of existing improvements, and installation of public improvements if necessary for the applicant to implement the response action plan." cleanup Iv ELIGIBLE COSTS INELIGIBLE COSTS Cleanup Project Administration Demolition (ifnecessary to implement RAP) Demolition ( only for redevelopment) Acquisition and Relocation (ifnecessary to implement RAP) Acquisition and Relocation (ifnecessary only for redevelopment) Investigation (ifnot already fended under a DTED Investigation and RAP Development Grant) Asbestos Abatement in Buildings Environmental Consulting fees necessary to implement the RAP Contingencies Public Improvements (ifnecessary to implement the RAP) Costs of appraisals or other application costs . FY 02--03 Some examples of eligible and ineligible costs are listed below. You must also submit a detailed project schedule outlining the individual tasks and schedules of the overall project (this will include the cleanup of the site as well as the time line for developrnent after cleanup). The budget and time line pages to be filled out are included in the following application. While the redevelopment of the site is considered in the application and must be identified, grant funds can only be used towards the remediation of the site. LOCAL MATCH REQUIREMENT: It is required that the applicant or other local source pay for one - quarter of the project cost as a local match to obtain a cleanup grant. The applicant shall pay an amount equal to 12 percent of the cleanup costs from the municipality's general fund, a property tax levy or other unrestricted money available to the municipality. Tax increments may not be used for this purpose. The rest of the local match may be paid with tax increments, regional, state or federal money available for the redevelopment of brownfields (including money from the Metropolitan Council's Tax Base Revitalization Account for metro applicants) or any other money available to the municipality. If the applicant establishes a TIF district or hazardous substance subdistrict on the site to pay for part of the local match requirement, the district or subdistrict is not subject to the state aid reductions under M.S. § 273.1399. In order to qualify for the exemption from the state aid reductions, the municipality must elect, by resolution, on or before the request for certification is filed, that all tax increments for the district or subdistrict will be used exclusively to pay (1) project costs for the site and (2) administrative costs for the district or subdistrict. The district or subdistrict must be decertified when an amount of tax increments equal to no more than three times the costs of implementing the response action plan for the site and the administrative costs for the district or subdistrict have been received, after deducting the amount of the state grant. cleanup v FY 02 -03 An example of how to determine the local match is demonstrated below. LOCAL MATCH EXAMPLE: Expenses: Cleanup Cost S 100,000 Funding Formula: 1/4 of Total Project Cost To determine the sources of local match: 12% of Cleanup Cost = $12,000 (must come from property tax levy, etc. - see Page V) $37,500 - $12,000 = $25,500 (must come from TIF, etc., as described on Page V) Total Local Match = $37,500 Note that the grant can pay for up to 75% of the project cost. In the above example, the maximum grant award would be $112,500. INQUIRED APPRAISAI.Sa An appraisal of the current market value of the property (with contaminants) and an appraisal of the site after cleanup (pre - construction) are required to qualify for cleanup funds. Both values may be included in a single appraisal. The required appraisal must be prepared by a qualified independent appraiser using accepted appraisal methodology. No other appraisals will be accepted. Tax assessments are not considered a replacement for an appraisal. AWARDING GRANTS: Due to environmental contamination that has affected many communities throughout Minnesota, a large number of applicants are expected to apply for the contamination cleanup grants. The law allows DTED to make grants for sites that provide the highest return in public benefits for the public costs incurred and that meet all the statutory requirements. In order to evaluate the applications for public benefits with respect to the costs incurred, the law specifies priorities which DTED must consider. To fulfill this requirement of reviewing applications in an objective and fair manner, the criteria on Page VII, have been assigned maximum point values in order to systematically award grants. All assigned scores will be compared to scores awarded to other applications in each cycle. cleanup Total Project Cost Demolition $50,000 Cleanup Cost (see above) $100,000 $150,000 37,500 (this is your local match) VI FY 02 - 03 1) The potential increase in the property tax base of the local taxing jurisdictions relative to the fiscal needs of the jurisdictions, which will result from developments that will occur because of completion of each of the approved response actions. Maximum = 30 points. 2 The social value to the community that will result from cleaning up and redeveloping the site. Social value includes the project's time frame, the number of new jobs, the importance of the proposed facilities and the removal of blighting influences at the site, the readiness of the project, the development potential and the financial health of the project. Maximum = 50 points. 3) The MPCA staff's review and ranking according to the potential threat to human health and the environment that would be reduced or eliminated by completion of each of the response action plans. Maximum = 30 points. 4) The likelihood that each site will be cleaned up without use of government money in the reasonably foreseeable future. Maximum = 10 points. 5) The amount of cleanup costs for each site. Maximum = 10 points. 6) The amount and level of the commitment of municipal or other local resources to pay for the cleanup costs. Maximum = 10 points. cleanup VII FY 02 - 03 Trade & Economic Development Business & Community Development Contamination Cleanup Grant Application Cover Page Applicant: Head of Applicant Agency: Applicant Address: City: Project Contact Person: Phone: - E-mail: Application Author/Preparer: Phone: cleanup 1 Zip Code: Fax: E-mail FY 02 — 03 I. SITE IDENTIFICATION /SITE HISTORY SITE INFORMATION 1. Name of Site: (Building Name, Location Reference, etc.) Site Address: City, County or Township Minnesota Legislative District # A B If enrolled in an MPCA program: VIC Program I.D. # LUST Program I.D. # Other 2. If the site is located in the seven - county metropolitan area as defined in M.S. § 473.121, Subd. 2, you must be participating in the Metropolitan Council's Housing Incentives Program to qualify for this grant. Please attach a copy of your city council resolution required by the Metropolitan Council indicating your election to participate in the program. 3. Is the project site publicly or privately owned: Current property owner(s): When was the property purchased? For what amount? After subsequent cleanup and development, will the project site be publicly or privately owned? Who will own the project site after subsequent development? When will the property be purchased? Will a public entity, including the applicant, own the property at any time? During what time will the public entity own? 4. What is the current assessed value of the site? 5. What is the anticipated assessed value of the property after the proposed development is completed? 6. Name(s) of current environmental consultant and legal counsel if applicable Consultant Phone Attorney Phone 7. Legal description of site: c!CalInup 2 For what amount? FY 02 - 03 8. Attach an accurate and legible site and location map showing locations of prominent and relevant site features such as buildings, retaining walls, etc. (NOTE: maps shall include property boundaries, a north arrow and bar scale). The map(s) should show the following: a) The current condition of the site including labeled structures; b) The proposed development of the site including labeled structures; and c) The location(s) of contamination. Adding photographs is helpful. 9. Acreage of Site Sq. Ft. of Site 10. Zoning /Land Use: A. Current: Industrial cleanup Commercial Mixed -use Other (Specify) B. After Cleanup: Industria Mixed -use Other (Specify) 11. Current economic condition: Vacant lot Developed site 13. Year building(s) was /were built: SITE HISTORY Commercial 3 Other Residential Residential 12. How many buildings are culTently on site? Commercial How many are occupied? If vacant, for how long? Residential How many are occupied? If vacant, for how long? 15. Please attach a brief synopsis on the history and general background of this site. This includes but is not limited to former uses of the site, known and/or suspected causes of contamination etc. Also describe the current condition of the site including existing structures and existing occupants. 14. Is demolition a required activity listed in the RAP implementation plan? Please explain. General contaminant type (i.e., DRO, VOCs, metals, etc.) Total volume of identified contamin- ated soil (cyds) Total volume of identified contamin- ated soil to be remediated (cyds) Remedy RAP Cleanup Goal (i.e., residential SRVs, industrial SRVs, etc.) FY 02 -03 11. CONTAMINATION 16. What contaminants have been identified at the site? 17. To qualify for cleanup funding, you must attach a copy of the approved RAP and final approval letter to your Response Action Plan from the Minnesota Pollution Control Agency. 18. Summary of Contamination Information: cleanup A. Provide a concise description of the identified contamination and proposed RAP. The description should include the occurrence of the contamination (i.e., are there distinct areas of contamination or is contamination widely disseminated across the site? Is the contamination at the surface or at depth ?). B. Complete the following table for soil contamination (be sure to include areas of contamination that have been identified at the site but will not be treated or removed as part of the approved RAP) : 4 General contaminant type (i.e., DRO, VOCs, metals, etc. Affected aquifer (i.e., water table, deeper aquifers) Approximate dimensions of contaminant plume on -site. Specify if the plume extends off-site. Remedy FY 02--03 C. Complete the following table for groundwater contamination. If no or limited groundwater investigation has been conducted, indicate this. Also indicate if a groundwater investigation was conducted but no contamination was detected. cleanup D. List all compounds comprising the identified release in soil and the corresponding average and maximum concentration for each compound. Also include petroleum in the table. If distinct areas of contamination are present at the site, please describe separately. (NOTE: It is acceptable to provide an overview with estimated average and maximum concentrations if the amount of analytical data is overwhelming.) (Note: for PAHs, please provide individual compound concentrations or Benzo(a)pyrene equivalent concentrations for the carcinogenic PAH compounds.) Compound Tier 1 SRV (residential) Average Concentration Maximum Concentration 5 FY 02 -03 E. Please do the same as in D. for groundwater. cleanup Compound HRL Average Concentration Maximum Concentration •1111111111111111•11111111111 F. If groundwater at the site is contaminated, note the geologic makeup of the affected aquifer (sand /gravel, till, lacustrine clay, etc.), and the estimated average linear velocity (be sure to indicate how this number was determined). G. Briefly describe the possible exposure scenarios posed by identified contamination at the site (Le., ingestion or human contact with contaminated soil, consumption of contaminated groundwater, ecological impacts, etc.), and nearby receptors that could be affected by contaminants migrating from the site (high resource value wetland/creeks/ rivers, etc.). COST RECOVERY 19. Is the site receiving funding from any other state or federal funding program(s)? If so, which program(s) and at what funding amount? 20. Has the site been identified as a state or federal Superfund site? 6 FY 02 -03 21. Has the party responsible for the contamination been identified? If so, who is the responsible party (RP)? Is there any financial commitment by the RP for the cleanup? 22. Are there available resources for the RP to pay for the cleanup? Explain. 23. Is a cost recovery plan to recover costs from responsible parties in place? If so, attach the plan and amount of costs to be recovered. Has consent of the Attorney General been attained? NOTE: It is not required that you have a plan to recover costs from the party responsible for the contamination. However, if you are planning on recovering your costs from the responsible party, attach information on the process. If this application receives funding under this program, the consent of the Attorney General must be obtained before costs are recovered. See M.S. § 1100.557 for further details on the distribution of funds recovered. III. COST ANALYSIS INVESTIGATION, CLEANUP AND PROJECT COST BUDGETS 24. What are the grand total of investigation, cleanup and other project costs for the site? 25. How much funding are you requesting from DTED (cannot be more than 75% of the costs listed in the question above) $ 26. Please fill out the following budget table to identify the cleanup costs and project costs for the site as defined on Page III. Attach additional sheets if necessary. cleanup 7 Eligible Activities for Investigation and RAP Development Costs Already Incurred Y/N Date Costs Incurred DTED Request + Local Match # 1 +# Local Match 2 — Total MIIIIMIIIMIIIIIIIIIMEMIIIIIMIIIIMMIIIIIIIMINIIII IIIIMMIIIIMIIIIIIMIIIIIIMIIIIMIIM IIIIIIIIIMIIIIIIMIIIIII NIIMIIIIIIMIIIIIIMIM IIIIIIIIIIIMIIIIIIIIIIIIIIIIMMIIIMIIIMIIIIIIIIIIIIMIII IIIIIMIIIIMIIIIIIIMINIMIIMIMIIII IIIIMIIIIIIMIIIMMIIIIIIIIMIIIMIIIMMIll Costs ligible Activities for Soil & Already roundwater Cleanup Incurred Y/N Date Costs Incurred DTED Request + Local Match 1 +•• Local Match Total 2 = Local Match 2 = Total MIIIIMIIIMIIIIIIIIIMEMIIIIIMIIIIMMIIIIIIIMINIIII IIIIMMIIIIMIIIIIIMIIIIIIMIIIIMIIM IIIIIIIIIMIIIIIIMIIIIII NIIMIIIIIIMIIIIIIMIM IIIIIIIIIIIMIIIIIIIIIIIIIIIIMMIIIMIIIMIIIIIIIIIIIIMIII IIIIIMIIIIMIIIIIIIMINIMIIMIMIIII IIIIMIIIIIIMIIIMMIIIIIIIIMIIIMIIIMMIll Eligible Other Project Activities Necessary to Implement the RAP Costs Already Incurred Y/N Date Costs Incurred DTED Request + Local Match # 1 +# Local Match 2 = Total FY 02 -03 BUDGET SOURCES & USES Subtotal C - Other Project Activities Total Investigation; Cleanup and Other Project Activities (Subtotal A + B + C) APPRAISAL 27. Attach an appraisal which shows: (1) The current market value (pre - cleanup) of the property; and If you are requesting acquisition costs and the amount for acquisition is different from the appraised value, please explain why there is a difference. cleanup Subtotal `A Investigation and RAP Developmen Subtotal B - Sol! & Groundwater Cleanup (2) An appraisal of the value of the site after cleanup but before development (pre- construction). 8 FY 02 - 03 FINANCING 28. Please submit a copy of the applicant's most current audit, or financial statement if an audit is not available. 29. Is there a possibility that the site will be cleaned up without government money? Explain. cleanup A. If yes, what are the sources of funding and dollar commitment from each? Source B. If no, what efforts have been made to secure other funding? (Attach letters of rejection for funding requests, city council minutes, etc. Also attach a narrative explaining why the project cannot be financed exclusively with local resources. Explain cash reserves that may appear in your audit. Are they dedicated to other capital improvement projects? If so, how much ?) LOCAL MATCH REQUIREMENT 30. Determine sources and amounts of local match. A. 1/4 of the Project Cost = (this is the amount you must pay in local match) B. 12% of the Cleanup Cost = (this amount must come from the municipality's general fund, a property tax levy for that purpose, or other unrestricted money available to the municipality (excluding TIF). Unrestricted money can be funds spent on project costs other than cleanup costs and qualify here). Please list source and amount on the following page. 9 Funding Amount FY 02 - 03 Source C. Subtract figure B. from A. above. This is the remaining amount of the local match that must be met. This money may come from TIF, regional, state, or federal money available for the redevelopment of brownfields or any other money available to the municipality. Please list source and amount below. Source TOTAL TOTAL $ GRAND TOTAL (This should equal local match in A. above) $ Amount Amount IV. DEVELOPMENT ASSESSMENT POTENTIAL AFTER CLEANUP 32. Will the site be improved with buildings or other improvements? cleanup 10 31. What are the development plans for the site after implementation of the RAP? Please specify development projects (business name, public facility, etc.). When will these improvements begin (this should correspond to the project schedule on Page 13)? FY 0 -03 33. If the site will be redeveloped for residential use, provide the following data: cleanup RENTAL: OWNER OCCUPU-D: Purchase price per unit $ Monthly rental cost per unit $ Number of affordable units? Construction cost per unit $ Number of affordable units /homes Construction cost per unit 11 34. Is there a commitment from a third party to develop the site after cleanup? If yes, attach commitment letters, capital improvement plans, city council resolutions, etc. 35. What is the estimated cost of the redevelopments (construction costs not including the cleanup costs)? $ Of these costs, how much will be public? private? PROPERTY TAXES 36. What are the property taxes on the site for the current year (prior to cleanup)? $ 37. What is the projected property tax on the site after cleanup (before redevelopment)? Refer to the local taxing jurisdiction's tax capacity value. $ 38. What is the projected property tax on the site after redevelopment? $ A. How were the figures in Questions 36 and 37 determined? B. Who determined them? FY 02 - 03 V. JOB CREATION 39. Project the number of new jobs created after cleanup and development of site (attach additional pages if necessary). Are any jobs transferred from another Minnesota community or another state? How many? From where? JOB TABLE cleanup Position Title Total Jobs Total # of Full -Time Jobs Total # of Part -Time Jobs Annual Expected Wages per Hiring Date Job r C 1 t w U .0 • o O ;-. o 6_, 0 Q) &' d] •a U '- U () • c, Q C.) Q p , U rip bO a) > a) . O " U U a.) � � Q Q.) itc9i •r' 7' rip N c„ "-� ›, • a., „.) b!3 > czt o • - C3 • - • (1) Q ct 0 o 0 co Q) 7).% Q 0 0 IIUIIUliUIIUIIUIIIRI EMOMOMMOMI NOMMINIMMINOMMOMM MMOMMOMMIMMEM TOM IMMOMMOMMOMMOMMOM MONO MIIMMIMIMMOMMEMIMMIMMOM OMMEMOMMOMMEMMINIMMION MMOMMOMMOMMOIMMOMMOMMOM MOMMOMMOMMOMMOMMOOMMOMM MMOMMOIMMEMMOMMEMMOMMEM MIIMMOIMMOMMOMMEMMIMIN MOMEMOMMINIMOMMIMMINOMM MOMMEMEMOMMEMMOMINMEIMM MONNONNOMMORNIMOMMOOMMO OMMEMMOMMOOMMOMMOMMOMM MMOMMOMMOIMMOMOMMOMMO MOMMOMMEMOMOMMOMMINMEI MOOMMINIMMIONEMOMMINOMM MOMMIMIMOMMOMOMMEMOMMI MOMOMMIMMOMMIONONEMMOMM MOMMOMMOMMOMMOMMOMMOM MMOMMEMMOMMOMMEIMINNOMM MOONNOMMOOMMOOMMOMMOIN MOOMMINIMMOMMMOMMOMMOO OINMEMOMMEMMOOMMOMMMOOM ONNIONONINOONNOMONOMMON MOMOMMOONNOMMEMONOMMOM MMININIOMMENIMMONNIONIN a uII1'au1u.1Iliu$I1uI MOMOMMIONMOMMINIMMOMMON n� ■ MONOMONOMMONOMOOMMOMON 0 v W 0 CV CC FY 02 -.03 VII. THIRD PARTY /COMPANY COMMITMENT INFORMATION 41. If there is a commitment from a third party to develop on the site after cleanup, please complete the following: VII 42. Payment Information cleanup Third Party /Company Name: Contact Person: Title: Phone Number (include area code): PAYMENT INFORMATION Mailing Address: Contact Person: Telephone Number (include area code): Fax Number (include area code): State of Minnesota Vendor Number Minnesota Identification Number: Federal Employer Identification Number: 14 FY 02 -.03 IX. RESOLUTIONS 43. Resolutions are required to be adopted prior to submission of the application package. The two required elements are: Signed: Title: Date: 1. A resolution from the governing body of the city where the project site is located, which approves the application. 2. A resolution from the applicant committing the local match and authorizing contract signatures. Note: Pursuant to M.S. § 412.201, Statutory Cities must authorize the Mayor and Clerk to execute all contracts. An applicant may either provide a separate resolution for each of the above, or combine them into a single resolution, as long as they include the same elements. Blank resolutions are included for your convenience. You may choose to reformat or combine them, but make sure to include all of the statements that appear in our examples. RESOLUTION # 1- City Approving the Application BE IT RESOLVED that the city of has approved the City where site is located Contamination Cleanup grant application submitted to the Department of Trade and Economic Development (DIED) on , by Date Applicant for the site. Site name I certify that the above resolution was adopted by the city council on Authorized Official Witnessed by: Title: cleanup 15 Date Date: FY 02 -.03 RESOLUTION # 2- Committing Local Match and Authorizing Contract Signature BE IT RESOLVED that act as the legal sponsor for project(s) (Applicant) contained in the Contamination Cleanup Grant Program to be submitted on (Day /Mo /Yr) and that is hereby authorized to apply to the Department of (Title of Authorized Official) Trade and Economic Development for funding of this project on behalf of (Applicant) BE IT FURTHER RESOLVED that has the legal authority to (Applicant) apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. BE IT FURTHER RESOLVED that has not violated any (Applicant) Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, may enter into an agreement with the State of (Applicant) Minnesota for the above - referenced project(s), and that (Applicant) certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT RESOLVED that is hereby (Title of Authorized Official) authorized to execute such agreements as are necessary to implement the project(s) on behalf of the applicant. Note: Do not include the proper name, only the title of the official. Pursuant to M.S. § 4120201, Statutory Cities must authorize both the Mayor and Clerk to execute all contracts. cleanup 16 FY 02 -.03 I CERTIFY THAT the above resolution was adopted by the of on Applicant Date SIGNED: WITNESSED: (Authorized Official) (Signature) (Title) (Date) (Title) (Date) cleanup 17 (City Council, County Board, etc.) Fiscal Years 2002- 2003 Con + _____ NESp T � Trade & Economic Development Business & Community Development tamination Investigation and RAP Development Grant Application Brownfields and Community Assistance Unit FY 02 - FY 03 TABLE OF CONTENTS Instructions Purpose /Background ii Funding Availability iii Eligible Applicants iii Qualifying Sites iii Local Match Requirement iii Grant Award Criteria iv Application I. Site Information Z II. Site History 3 III. Contamination Investigation Information 3 IV. Cost Analysis 4 Budget 4 Budget Sources and Uses Table 4 Financing 4 Local Match 5 V. Site value 6 VI. Redevelopment Potential 6 Job Creation 7 Job Table 7 Project Schedule 8 vII. Third Party /Company Commitment. Information q VIII. Payment Information 9 Ix. Resolutions I o Investigation 1 FY 02 --- FY 03 CONTAMINATION INVESTIGATION AND RAP DEVELOPMENT GRANT APPLICATION 121 - 7th Place East St Paul, Minnesota 55101 Contact: Brownfields & Community Assistance Unit 651- 296 -5005 ** *YOU MUST READ THE FOLLOWING NARRATIVE TO FULLY UNDERSTAND THE APPLICATION PROCESS"* INSTRUCTIONS Under the authority of the Contamination Cleanup Grant Program (M.S. §§ 116J.551- 116J.558) the Department of Trade and Economic Development (DTED) is able to award grant funds toward the cost of performing contaminant investigations and the development of a response action plan (RAP) on sites believed to be contaminated. The Contamination Investigation and RAP Development Grant operates on a semiannual grant cycle in conjunction with the Contamination Cleanup Grant. Deadlines for making application are November 1 and May 1 of each year. Applications must be received at DTED by 4 p.m. on either date. In the event that these days fall on a weekend, the deadline will be the following business day. You must submit the original application and 2 copies. NOTE: If you are applying for investigation funds for more than one site, a separate application must be completed for each site. Please fill out the entire application. All applications must be complete upon submission in order to qualify for a grant. PURPOSE/BACKGROUND: DTED was authorized to award grant funds by legislation passed during the 1997 Minnesota Legislative Session for the estimated costs of performing contaminant investigations and the development of a RAP. The original Contamination Cleanup Grant Program statute has been amended to allow for granting up -front investigation dollars primarily to help communities located in Greater Minnesota to investigate sites believed to be contaminated. The intent is that these grant funds will begin the environmental remedi ati on process and stimulate activity addressing environmental issues in these communities. According to statute, the Minnesota Pollution Control Agency (MPCA) provides technical assistance and recommendations to DTED in the application review process. In order for them to fulfill this statutory order, it is required that the applicants work with the MPCA in assessing the site and developing a RAP. Requiring applicants to follow the MPCA investigation and RAP development guidelines ensures that the state is paying for quality site assessments and allows the applicant to qualify for a Contamination Cleanup Grant (which requires an approved RAP from the MPCA). The MPCA has guidance documents and fact sheets available for performing Phase I and Phase IT investigations, which should be followed throughout the investigation and RAP development process, For more information or to get copies of these documents you may contact Patrice Jensen at the MPCA at 651 -296 -7744. Investigation 11 FY O2- --FY03 When applying for a grant, applicants have the choice of either: The legislation allows DTED to award a grant for up to 75% of the estimated cost of the investigation or $50,000, whichever is less. No more than $250,000 per fiscal year may be awarded for investigation grants. If an applicant has received grant funds under DTED's Contamination Cleanup Grant Program or the Metropolitan Council's Tax Base Revitalization Account during the year that application is made, they will not receive priority in funding. FUNDING AVAILABILITY: The total Legislative appropriation for both the Contamination Cleanup and Investigation and RAP Development Grant Programs for fiscal years 2002 and 2003 is $7 million of general fund monies for the cleanup of Superfund contaminants and $12.4 million of Petrofund monies for the cleanup of eligible petroleum contamination. Since the program runs on a semi - annual grant cycle, the monies will be divided among the four cycles run during the biennium. Up to $250,000 of this funding will be awarded per fiscal year under the Investigation and RAP Development Grants. ELIGIBLE APPLICANTS: Eligible applicants include statutory or home rule charter cities, counties, housing and redevelopment authorities, economic development authorities, and port authorities. NOTE: This does not mean that the site must be owned by one of the public bodies listed as eligible applicants. If a site is privately owned, one of the eligible applicants must apply on behalf of the private entity. QUALIFYING SITES: A site qualifies for a Contamination Investigation and RAP Development Grant if the following criteria are met: 1) 2 LOCAL MATCH REQUIREMENT: The applicant must pay for at Least one- quarter of the total estimated investigation costs as a local match. A portion of the local match must come from unrestricted sources. The local match section on Pages 5 and 6 of the application details how to determine the local match sources. Investigation 1) Applying for all investigation dollars up- front; or 2) Completing and financing a portion of the investigation on their own, applying for reimbursement of those costs, and requesting future investigation dollars. NOTE: Should an applicant choose to perform a portion of the investigation activities on their own, they will receive priority in the application review process. If you are an applicant from the Twin Cities Metropolitan Area, your municipality must be participating in the Metropolitan Council's Local Housing Incentives Program. For more information on this program, call Guy Peterson at 651-602-1418. It is expected that the site have redevelopment potential that will be pursued beyond the investigation stage. If the investigation identifies the need to remediate, it is expected that cleanup will be accomplished and the site will be improved with buildings or other improvements. It is further expected that these improvements will provide a substantial increase in the property tax base within a reasonable period of time or the site will be used for an important publicly owned or tax exempt facility. Final development of polluted sites could include, for example, commercial, industrial, office or housing development. 111 FY 02 --- FY 03 GRANT AWARD {CRITERIA: DTED may make a grant for up to 75% or 550,000, whichever is less, towards the cost of performing contamination investigations. No more than $250,000 per fiscal year may be spent on contamination investigations. Because of these limitations, there may be more requests for investigation grants than there are dollars available. Therefore, the program statute directs DTED to award grants to sites that will provide the highest return in public benefits for the public costs incurred. To evaluate the applications there are priorities which DTED must consider. Applications will be ranked by the following: 1. The MPCA staff's review and ranking according to the potential threat to human health and the environment that would be reduced or eliminated by completion of the Response Action Plans. Maximum = 30 points. 2. The social value to the community that will result from testing the site and cleaning up and redeveloping the site in the future. Social value includes the project's time frame, the number of new jobs, the importance of the proposed public facilities, the removal of blighting influences at the site, the readiness of the project, the development potential and the financial health of the project. Maximum = 50 points. 3. The potential increase in the property tax base of the local taxing jurisdictions. Maximum = 30 points. 4. The probability that each site will be investigated for contamination without the use of government money in the reasonably foreseeable future. Maximum = 10 points. 5. The amount of investigation costs for each site. Maximum = 10 points. 6. The amount of the commitment of the municipality or other local resources to pay for part of the investigation costs. Maximum = 10 points. Investigation iv FY 02 FY 03 .+ NEsor i , t:3) Trade & Economic Development Business & Community Development Applicant: Head of Applicant Agency: Applicant Address: City: Project Contact Person: Phone: - E-mail: Application AuthorfPreparer: Phone: E-mail: Investigation Contamination Investigation and RAP Development Grant Application Cover Page 1 Fax: Zip Code: FY 02 - FY 03 I. SITE INFORMATION L Name of Site (Building name, location reference, etc.) Site address City (or Township) County Minnesota Legislative District # If enrolled in an MPCA program: VIC Program I.D. # LUST Program I.D.# Other 2. If the site is located in the seven - county metropolitan area as defined in M.S. § 473.121, Subd. 2, you must be participating in the Metropolitan Council's Local Housing Incentives Program to qualify for a grant. Please attach a copy of your city council resolution required by the Metropolitan Council indicating your election to participate in their program. 3. Current property owner 4. Property owner after cleanup and redevelopment 5. Name(s) of current environmental consultant and legal counsel if applicable Consultant Attorney 6. Legal description of the site: investigation Phone 7. Attach an accurate and legible site and location map showing locations of current prominent and relevant site features such as buildings, retaining walls, etc. Also indicate where contamination is suspected, and where future development will occur. (Note: Site map shall include property boundaries and a north arrow and bar scale). Photographs are very helpful. 8. Acreage of Site Sq. Ft. of Site 2 Phone A B (circie correct} FY 02 - FY 03 9. Zoning /Land use: A. Current: Industrial Commercial Residential Mixed use Other (specify) B. Assuming the site gets cleaned up, what the is expected zoning /land use: Industrial Commercial Residential Mixed Use Other (specify) 10. Current economic condition: Vacant lot Developed site IIa SITE HISTORY (explain below) 11. If the site is currently developed with buildings but is not occupied, how long have the buildings been vacant? 12. Please attach a brief synopsis of the site. Explain why you think the site is contaminated and give a general background/history of the activity on the site that may have caused or contributed to the contamination. III$ CONTAMINATION INVESTIGATION INFORMATION 13. Current status of the investigation. A. Is the site enrolled in the MPCA VIC Program? B. Has a Phase I Environmental Site Assessment been completed? If so, attach a copy of the Phase I to this report. C. Do you have an approved work plan to begin implementation of a Phase II? D. Has any of the work plan been implemented? E. Please provide copies of any approval and/or comment letters you have received from the MPCA VIC Program and copies of any reports documenting investigation activities that have been conducted to date. 14. Briefly summarize the identified contamination at the site to date (identified compounds, concentration, etc.), and the objective of the future planned investigation. If no soil or groundwater samples have yet been collected at the site, indicate this. Investigation 3 FY 02 — FY 03 IV. COST ANALYSIS BUDGET 15. What are the total investigation and RAP development costs? 16. How much are you requesting from DTED? (This amount cannot exceed $50,000 or 75% of the total cost, whichever is less.) Complete the budget table below. If you have already completed a Phase I investigation, you may include that cost in addition to the future investigation & RAP development costs to be incurred. Eligible Activities for Investigation and RAP Development FINANCING Investigation Costs Already Incurred YIN BUDGET SOURCES & USES Date Costs DTED Local Local Incurred Request + Match # 1 Match # 2 Subtotals: 4 Total Cost Total ® Investigation & RAP Development: 17. Please submit an audit, or financial statement if an audit is not available, from the municipality in which the site is located. FY 02 -- FY 03 18. Is there a possibility that the site will be investigated without government money? Investigation A. If yes, what are the sources of funding and dollar commitment from each? Source Funding Amount S B. If no, what efforts have been made to secure other funding? LOCAL MATCH A. 1/4 of estimated investigation costs amount you must pay in local match). . Source TOTAL $ 5 Amount S 19. The applicant must pay for at least 1/4 of the investigation costs as a local match. Twelve percent (12 %) of the investigation costs must come from unrestricted funds (see letter B below). The remainder of the local match can be financed with any other funds available to the applicant (see letter C on following page). Follow the formula below to determine the amount of local match required and eligible sources of those funds. (this is the B. 12% of estimated investigation costs = ( this amount must come from the municipality's general fund, a property tax levy for that purpose, or other purp , unrestricted money available to the municipality [excluding TIF ). Investigation FY 02 — FY 03 C. Subtract B. from A. from the previous a e = p � ---� —� This is the remaining amount of the local match that must be met. This money regional, y nay come from TIF, regional, state, or federal money available for the redevelopm of brovwr • nlunici all Ids or any other money available to the p ty. Source 6 Amount S TOTAL $ GRAND TOTAL (this should equal the local match in A.) $ V. SITE VALUE 20. What is the current assessed value of the site? $ 21 • What is the estimated assessed value of the site should contamination be found and remediation completed? $ What is the estimated assessed value of the site after redevelopment? $ A. How were these figures determined? B. Who determined them? VI. REDEVELOPMENT POTENTIAL 22. Explain the likely use of the site after investigation �nvest�gat�on and cleanup and how this was determi (give examples of prospective develo ers ned p , interested parties, coning requirements, etc.). } 23. If the site will be redeveloped for residential use, provide the following data: TOTAL # OF RENTAL UNITS TO BE DEVELOPED Monthly rental cost per unit $ Number of affordable units Construction cost per unit $ TOTAL # OF OWNER - OCCUPIED UNITS TO BE DEVELOPED Purchase price per unit/home $ Number of affordable units/homes Construction cost per unit $ FY 02 FY 03 24. Are there any third parties who have expressed interest in redeveloping the site? NOTE: If you answered affirmatively to this question you must fill out the third party information on Page 9. 25. What are the current property taxes on the site? $ 26. What are the projected property taxes for the site when the site is cleaned and developed? JOB CREATION 27. On the following table, project the number of new (meaning new to Minnesota) jobs that could be created based on the redevelopment prospect described in Question #22. JOB TABLE Position Title Total # of Total No of Annual Expected New Full -time New Part- Wages Per Job Hiring Date Jobs time Jobs Total Jobs Will any of the jobs listed above be transferred from another Minnesota community? How many? From where? Investigation 7 oa c-1 1 z 0 z cc w c w w 1 0 c 0 0 CV cr w F cc w 0 0 w IIIIIIIIIII Mill I1I1I111III1III1II limmonnommoommomi rimmiimmummunommou imummommunnommis rimmummimmmionumm Nommoommommunamisi ilimaimiummummummiu Nummiammommumm 1111111111111111111111111111111 0 0 0 0 FY 02 - FY 03 VII. THIRD PARTY /COMPANY COMMITMENT INFORMATION 29. If there is a commitment from a third party to develop on the site, please complete the following: Third Party/Company Name: Contact Person: Title: Phone Number (include area code): / VIII. PAYMENT INFORMATION 30. List below the appropriate information to indicate where grant payments should be made. Mailing Address: Contact Person: E-mail address: Telephone Number (include area code): Fax Number (include area code) : Minnesota Identification Number: State of Minnesota vendor number Federal Employer Identification Number: Investigation 9 FY 02 -- FY 03 IX. RESOLUTIONS 31. Resolutions must be adopted prior to submission of the application package. The two required elements are: An applicant may either provide a separate resolution for each of the above, or combine them into a single resolution, as long as they include the same elements. Blank resolutions are included as examples for your convenience. You may choose to reformat them, but make sure to include all of the statements that appear in our examples. RESOLUTION # 1- City Approving the Application BE IT RESOLVED that the city of for the Signed: Authorized Official Investigation 1. A resolution from the governing body of the city where the project site is located, which approves the application. 2. A resolution from the applicant committing to the local match and authorizing contract signatures. Note: pursuant to M.S. 412.201, Statutory Cities must authorize both the Mayor and Clerk to execute all contracts. Site name City where site is located Contamination Cleanup grant application submitted to the Department of Trade and Economic Development (DIED) on Date I certify that the above resolution was adopted by the city council on Title: Date: Witnessed by: Title: site. 10 Date: has approved the Applicant Date FYO2 —FY 03 RESOLUTION # 2 Committing Local Match and Authorizing Contract Signature BE IT RESOLVED that act as the legal sponsor for project(s) (Applicant) contained in the Contamination Cleanup Grant Program to be submitted on (Applicant) BE IT FURTHER RESOLVED that BE IT FURTHER RESOLVED that (Day /Mo /Yr) and that is hereby authorized to apply to the Department of (Title of Authorized Official) Trade and Economic Development for funding of this project on behalf of (Applicant) apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified. (Applicant) Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, may enter into an agreement with the (Applicant) State of Minnesota for the above - referenced project(s), and that (Applicant) certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT RESOLVED that is hereby (Title of Authorized Official) authorized to execute such agreements as are necessary to implement the project(s) on behalf of the applicant. Note: Do not include the proper name, only the title of the official. AND, if the applicant is a statutory city, two individual officials (titles only) must be authorized to sign agreements. Investigation 11 has the legal authority to has not violated any FY 02 -- FY 03 I CERTIFY THAT the above resolution was adopted by the (City Council, County Board, etc.) of on SIGNED: WITNESSED: (Authorized Official) (Signature) Applicant Date (Title) (Date) (Title) (Date) Investigation 12