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96-247�e-V\Sec}, ��i�q,�,��Y��S �rcSetvTt=(� �^y r, � �. F � J �3 � ��7 j �j (� Council File # �� { (�` ... � �': . �S ! � ? 1? R s �`` ` � �'""� � ' �'' i � �— Green sheet � I RESOLUTION �INT�ITJL, MINNESOTA Presented By 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Referred To Committee: Date POLLUTED LANDSCLEANUP PROGRAM � WHEREAS, there are a number of funding sources and programs availabie for pollution cleanup and related development activifies including: Economic Development Initiative (EAn grant funds and Sec6on 108 I.oan Program funds from the U.S. Department of Housing and Urban Development (HiTD); Minnesota Department of Trade and Economic DevelopmenYs Contamination Grant Program; the Metropolitan Council's Tas Base Revitalization Prognm; hazardous subdistrict ta�c increment financing; Employment Incentive Grants; and possible funding through the Enterprise Community Grant Program; and WHEREAS, the City wishes to leverage available pollution cleanup resources to stimulate public and private sector cleanup and redevelopment initiatives; and WHEREAS, the proposed Saint Paul Polluted Lands Cleanup Program (PLCP) will serve to assist the Department of Planning and Economic Development (PED) in mazketing the pollution cleanup resources and provlde guidance for funding recommendations for applicants; and WHEREAS, the comprehensive PLCP provides for a"one stop shopping" opportunity for applicants that aze seeking assistance for pollution cleanup projects; and WHEREAS, Council Resolution 94-1306, adopted September 7, 1994 declares that the Council will review program guidelines before authorizing the proper city officials to execute a grant and loan agreement between the Department of Housing and Urban Development (HUD) and the City of Saint Paul for the expenditure of EDI and Section 108 Loan funds; and WHEREAS, HUD has approved a$1 Million EDI grant and $4 Million in 108 loans for the City of St. Paul with a maximum of $20 Million available in 108 loans. WHEREAS, PED staff are hereby submitting the PLCP guidelines which also serve as guidelines for the EDI program; WHEREAS, PED staff will work closely with the Minnesota Pollurion Control Agency, Metropolitan Council, Department of Trade and Economic Development, Saint Paul Port Authority and neighborhood based organizations on the implementation of the PLCP; now, therefore, be it 3a ° t G-��1� 39 RFSOLVED, that the Council hereby adopts the proposed St. Paul Polluted Lands Cleanup 40 Program guidelines; and 41 42 FINALLY RFSOLVED, that the proper city officials are authorized to execute a grant and loan 43 agreement between HUD and the City of Saint Paul for the expenditure of EDI and Section 108 Loan 44 funds. � � t ° � �a +.� �`� . �.,; 6 `v f`"1. ._ Absent II Requested by Department of: Adopted by Council: Date Plan & Eooto�5ic De elo �ment By: V�� Form Approved by City Attorney Adoption Certified by Council Secretary Sy: a . BY � / �� Approved by� yor: Da e � r� � � � , � BY � � � �.ou.ti� Approve Mayor for Submission to Council � e By: ' /1% �i l. q c�-a.y'1,I DEPAF(TMEM/OFFICFJCOUNqL DA7EINRIAIED GREEN SHEET �o �� • �" �� "— ,� �� INRIA'DF INRIAUDATE CONr CT PERSON & PH NE � DEPARAAENT OlF3ECTOR � CRY CAUNC0. � ' O�� - ASSWN � CffYATTORNEY � � CRYCLERK � � �'�' � XIIYBER FOR MUST BE ON COUNCIL ACaENDA B(DAlt� pOUiING O BUDGET DIRECTOR O FlN. & MGT. SEFiVICES DIR. OPDER pp� �pYOR (OP ASSISTM1NT) O L3� TOTAL # OF SIGNATURE PAGES � (CLIP ALL LOCATIONS FOR SIGNATURE� �"�� C ;�,,..�� '.��-. �� . -�-�-�,-,- �-�-`' �.-� � RECqMMENDATIONS: AvP� (A) or fieject (R) PEqSONAL SERVICE CONTRACTS MUST ANSWEH THE FOLLOWING QUESTIONS: _ PLANNMG COMMISSION _ CIV1L SEAV7CE COMMISSION �� 's Personlfirm ever wo�ketl u�der a contract tor Mis departmeM7 _ qB COMMITTEE YES NO — 2. Has this person/firm ever been a city employee? _ STAFF — YES NO _ DIS7RICT COUR7 _ 3. Does 7his person/firm possess a skill not normally possessed by any current c'Ry employee? SUPPOfiTS WHICH COUNCIL O&IECTIVE7 VES NO . Explain all yes answers on seperate eheet antl attach to green shcet INITIATING PROBLEM, ISSUE, OPPORNNITV (Who. Whe[, Wha�. Where, Why): f�u D /� G��-� � �l ��- �� ..��,r-� �.�-� � �% �� f �� ,�.�- � .� � �� ",�Q ��?�._ ��. ADVANTACaES IF APPROVED: �`-�„ � r,.�1� �z�c��y-=� -� � l s �yr-�.�`" � `�` � /,�-�-�-= �- � .�� - DISADVANTAGES IFAPPROVED: �,,.,, �YMf � � �� ,�i�R 0 5 1996 �y° 41 1996 �.y�,�c ��9�G �� DISADVAPITAGES IF NOT APPROVEb 7`� '� �,�-�� a-ce� ✓� � f �-� 1�-,r .- � ��!/�;�'"`9J` ��,r�=r�= ^��"�s�g: �u�t�'� c � ; �: E��9 �,t^.:a TOTAL AMOUNT OF 7RANSACTION $ COST/tiEVENUE BUDGETED (CIRCIE ONE)______YES NO ""'`'�� PUNDING SOURCE AC7IVITV NUMBER FINANCIAL INFORMATION� (EXPLAIN) ��°.., �'"� �. � q c� - a �'� SA1NT TAUL � AAAA Interdepartmentai Memorandum C1TY OF SAINT PAUL TO: Council President Thune Councilmember Blakey Councilmember Bostrom CouncIlmember Guerin Councitmember Harris Councilmember Megard Councilmember Rettman FROM: Jim O'Leary � DATE: March 20, 1996 RE: Polluted Land Cleanup Program Attached are the Guidelines for the Saint Paui Potluted Land Cleanup Proa am. This item is scheduled to be on the City Council agenda for March 27. JAO/lle cc: Larry Buegler Craig Blakely K:\SHARED\LLEIPOLLUI'ED �� y� March 1996 A joint Program o f CITY OF SAII�T PAUL THE SAi1�IT PAUL DEPARTMENT OF PLANNING AND PORT AUTHORITX ECONOMIC DEVELOPMENT �� -�u� SAiNT PAUL POLLUTED LAND CLEANUP PROGRAM lntroducfion: The City of Saint Paui has a unique opportunity to access a significant amount of Federai funds to assist in business development and job creation in Saint Paul neighborhoods. These Federal funds will be administered by the Saint Paul Department of Planning and Economic Development (PED). The funds will be utilized to reclaim and redevelop biighted and poliuted commercial and industriai properties. PED will develop all necessary financing packages and wili undertake all redevelopment activities for commercial properties. For industriai and manufacturing sites, pursuanf to Saint Paul's Economic Development Partners' roles and the Partners' Operating Agreement, PED and the Port Authority wili collaborate on determining the most effective financing packages for each site uti(izing available Federal funds, and the Port Authority wiil implement all industriai redevelopment activities. The goals of fhe PLCP are to: . Reclaim and redevelop unused, underused, blighted and polluted commercial and industrial land. • Job creation, recruitment, training and retention. • Expand the city's commercial and industrial tax base. . Maximize the use of Federal, State and local resources. • Stimulate private sector cleanup and redevelopment of contaminated sites. The PLCP activities will inc/ude: • Phase I and Phase II environmentai assessments and remediation plan development. • Remediation of poliuted sties andlor encapsulation of pollution to ailow for redevelopment. • Acquisition of polluted sites for cleanup and resale upon remediation. • The provision of development financiai assistance. • The provision of workforce recruitment and training assistance to employers locating facilities on the target sites. ��-�y� Financing for the PLCP may be provided from a number of sources: • Economic Development Initiative {EDI) grant from HUD $1 Million in grant funds available for St. Paul • Sect'son 108 Loan Guaras►tee �4 Million up to $20 Million in loans is authorized for St. Paul • Enterprise Community Grant Program * � �3 million avai{able for St. Paul. • Emp{oyment {ncentive Grants * of up to $5,006 for each new job created Background: Funds are available for large and small projects where the public financial assistance feverages significant economic benefits including an increased tax base and private investment. The appropriate Port Authorify and PED staff wiil assist in the preparation of more detai{ed grant and loan applications. Projects assisted with program funds must comply with applicabfe Fede*a1, State and local laws and policies including prevailing wage standards, Affirmative Action, Targeted Vendors, Jabs tmpact Statement, First Source, and Customized Job Training. E/igibiGty Criferia: To receive assistance through these Federal Funds, it must be determined that the pro}ect will meet a pubiic purpose, e.g., tax base growth or elimination of a heaith hazard. It must also be demonstrated that there is a financiai need for assistance. Parties responsible for pollution may apply for financial assistance, but every effort wiil be made to make sesponsibfe parties pay for the c{eanup of poifuted sites. FuN disclosure of ownership entity of project site will be required. Enterprise Community Grant Funds and Employment incentive Grants may only be uti{ized for projects that meet Enterprise Community criteria. To quafify for an Employment incentive Grant, new jobs must be created for Zone residents. " Some geographic and other restrictions apply. f. Poffution cleanup is one of a number of development activities funded through these programs. q�-�y� Projecf Selection Criferia: The foilowing project criteria will be used to determine site selection for remediation and redevelopment: 1. Any proJect or program that has been adopted by the City Council, HRA, or Port Authority. 2. The extent to which the project will resuit in an increase in the tax base, jobs, andior elimination of a health hazard. 3. Size of the site. 4. The cost and ease of acquisition (if appropriate). 5. The cost of remediation. 6. The amount of private sector funds leveraged. 7. The extent of recapture of public investment. 8. Remediation projecf completion schedule. 9. The extent of the timely redevelopment potentiai. 10. The extent of community development impact, e.g., empowerment through neighborhood partnership. 11. Highest and best use evaluation: a. Commercial: To be determined by standard commercial criteria. b. Industriai: � minimum of 30% coverage of building to land. • minimum of 1 job per 1,000 square feef of buifding space for manufacturing uses and 1 job per 1,500 square feet for wholesale, distribution uses. • minimum of $30 per square foot construction value. 12. Marketability of site_ location, visibility, access to transit, arterial streets and freeways. 3 � c� — � �i�1 13. Degree to which the project is consistent with City's comprehensive plan, sma11 area plans, the Port Authority's Industrial Development Site Priorifies, and other related City pians. 14. Level of support for the project from neighborhoods, business community, community development organizations, and District Pianning Counciis. For More lnformation: For information regarding commercial projects, piease contact PED's Program Administrator of the Business Development Division, Susan Hammel Joyce, at 266-6687. For information regarding industrial projects, please contact the Port Authority's Director of lndustriai Development, Lorrie Louder, at 224-5686. 3/13/96 g:ujllpicl 4 a t- -ay�l i °t �-�.y7 Thegoals of the PLCP are to: +e Reclaun and redevelop unused, undenued, blighted and polluted commerdal and industrial land. / e� Job crearion, reauitment, training and retention. A Expand the tity's commezcial and industrial tax base. v Maacimize the use of Federal, State and local resources. *Y Stimulate private sector cleanup and redevelopment of The PLCP activities will include: sites. � Phue I and Phase II environmental assessments and re ediarion plan development. 4 Remediation of polluted sites and/or encapsulation pollution to allow for redevelopment. •? Acquisition of polluted sites for cleanup and re , e upon remediation. >o The piovision of development financial assi<, �8 The provision of workforce reauitment an training assistance to employers locating facilities on the target sites. Financing for the PLCP may be provided m a number o fsources: 9 Economic Development Initiati� grant from HUD $1 Million in grant funds availa e for St. Paul •? Secbion 108 Loan Guarac►tee $4 million ug to $20 Million 'n loans is authorized for St. Paul Pe Enterprise Community t Program" $3 million available by a plication 3 Deparhnent of Tra�d Economic Development (DTED) Contamination G t Pmgraui Grants aze available the metropolitan azea for 1996 and 1997 by application to D1ED ? Metropolitan uncil's Ta7c Base Revitalization Account "bmwnfleld pmgrazn" Grants are ava' able annually fot the Metio Atea ttuough the Metcopolitan Council ro Polluted si ta7c inarement districts Funding ailability is project specific 9 Emplo ent Incentive Grants* of up to $5,000 for each new job aeated (So restrictions apply.) `�bme geographic and other reshictions apply. �Pollution cleanup is one of a number of development activities funded through ffiese pmgrams °1� -�.y�. Background � Funds aze avai3able for large and small projects where the public flnancial assis�ce provided leverages significant economic benefits induding an inaeased tas base and private investment Each of the finandng programs listed above have indi�dual eligibIlity criteria and application procedures, however, PED has prepared�a standard form that will be used by the applicant and PED staff as a basis for dete�mining which progam funding is the most appropriate. Staff will then assist in the�p�repazation of more detailed grant and loan applications, depending on which program funding is being pursued. � Projects assisted with program funds must comply with all laws and policies including prevailing wage standards, Affi. Vendors, Jobs Impact Statement where appropriate and Fii Eligibility Criteria , State and local Action, Targeted A Minnesota Pollution Control Agency approved Re�ponse Action Plan (RAP) (hazard- ous waste cleanup plan) is required to be eligible f the Metro Council's Tax Base Revitalization Account, DTED's Contamination G t Program and foc tax in¢ement 8nandng assistance. Met Council funds may be lized for asbestos abatement and for petroleum cleanup projects that are ineligible fo e Petro Fund Program. If the applicant does not have an approved/kAP, they may still qualify for funding assistance under one of the other nroQranfs. To receive assistance the applicant mu demonstrate that the project will meet a public purpose, e. g., tax base grow or elimination of a health hazard. It must also be demonstrated that there is a finan 'al need for assistance. For e7cample: the cost of cleanup may far exceed the value f the site. Parties responsible for pollurio may apply for financial assistance but the terms and conditions of finandal assis ce will be negotiated with the responsible party. Full disclosure of orvnetship en ry of project site will be required. In addition, there are program funding sou 1. Tax 2. STAR restrictions relative to the use of some of the funding must be used in the specific tax increment disirict. may only be urilized for neighborhood based projects. 3. Ent rise Community Grant Funds and Employment Incentive Grants may o y be utilized for projects located within an Enterprise Communiry Zone. o qualify for an employment incentive grant, new jobs must be aeated for zone residents. �L - �� Praject Selection Criteria The following projed aiteria will be used to determine site selection for and redevelopment: 1. Any projed or program that has been adopted by the City Cow 2. The extent to which the ptoject will tesult in an inaease in the and/or elimination of a health hazazd. / 3. Size of the site 4. The cost and ease of acquisirion (if appiopriate) 5. The cost of remediation 6. The amount of grivate sectot funds levetaged 7. The e�ctent of recapture of public investment 8. Remediation project completion schedule 9. The extent of the timely redevelopment pote�tial 10. The eJCtent of community development neighborhood paztnerships 11. Highest and best use evaluation f:I:L\ base e.g., empowezment through • minimum of 30o/o coverage of building to land • minimum of 1 job per 1,0 squaze feet of building space for manufacturing uses and �ob per 1,500 square feet for wholesale, disuibution uses. • minimum of $30 12. Marketability of site: and freeways. foot construction value visibility, access to transit, arterial streets 13. Degree to which proj ct is consistent with City's comprehensive plan, small azea plans an other related Ciry plans. 14. Level of neighbo ood and Disuict Planning Council suppoct foc the proposed proje . I'rogram Fees The Department o lanning and Economic Development will chazge a 1.5% fee for loan and grants appli for through the PLCP. For bntact Patrick Loonan or Sean Kershaw of the PED Business Services Resources at 266-6600 foi addiUOnal infotmation. ° �• a �' 1 � � � � � � � � � � .� � � � � 0 � � � .� � � �., � � � W � � � � � � .� � �