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Presented By
Referred To
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Council File # Y/��
�een Sheet # 3 O �
RESOLUTION �
�INT PA bZQ1?;�TA p��0 � �
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Committee: Date
SAINT PAUL POLLUTED LANDS CLEANUP PROGRAM
WHEREAS, there are a number of funding sources and programs available for pollufion cleanup
and related development ac6vities including: Economic Development Initiative (EDn grant funds and
Section 108 Loan Program funds from the U.S. Department of Housing and Urban Development (HUD);
Minnesota Department of Trade and Economic Development's Contamination Grant Program; the
Metropolitan Council's Tas Base Revitalization Program; hazardous subdistrict tas increment financing;
STAR loans and grants; Employment Incentive Grants; and possible funding through the Enterprise
Community Grant Program; and
13 WHEREAS, the City wishes to leverage available pollufion cleanup resources to stimulating public
14 and private sector cieanup and redevelopment initiafives; and
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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 provide guidance for funding recommendafions 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
28 WI�REAS, HUD has approved a$1 Million EDI grant and $4 Million in 108 loans for the Ciry
29 of St. Paul with a ma�imum of $20 Million available in 108 loans.
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31 WHEREAS, PED staff are hereby submitting the PLCP guidelines which also serve as guidelines
32 for the EDI program;
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34 WHEREAS, PED staff will work closely with the Minnesota Pollution Control Agency,
35 Metropolitan Council, Department of Trade and Economic Development, and the Saint Paul Port
36 Authority on the implementation of the PLCP; now, therefore, be it
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RESOLVED, that the Council hereby adopts the propased St. Paui Polluted Lands Cl�nup y ��
Program guidelines; and
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FINALLY RFSOLVED, that the property city officiais are authorized to execute a grant and loan
agreement between HUD and the City of Saint Paul for the eacpenditure of EDI and Section 108 Loan
funds.
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Requeated by Department of:
Adoption Certified by Council Secretary
By:
Approved by Mayor:
Date
By:
Plannin & E omic Develo�ment
By:
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Form Apq ved by t orney
By: � �
Approved by Mayor for Submission to
Council
By: ��� =Q �
Adopted by Council: Date
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OEAAPTMENTlpFFIC£1COUNCIL DASE INRIATED ��j� 3.4 2 8 2�
PED �� Z g GREEN SHEET __ . . _
COMACT PERSON & PHONE DEPARTMENT DIfiECTO INmAL/D � CITY COUNCIL � A � A �
Marie Franchett 266-6702 ^�w" '�CITYATTORNEY / r �CI7VCLEBK
NUYBEfl f-0B -
MUST BE ON CqUNCR AGENDA BY (DATE) pp�p� BUOGET DIqECTOR O FIN. & MGT. SERV DIR.
� / /�� OROER MAVOR (OR ASSISTANn � � aVtG�7e
/ /
TOTAL # OF SIGNATURE PAGES 1 (CL1P ALL LOCATIONS FOR SIGNATURE)
ncnok aEOUes�a:
Approval of attached resolution regarding the Sairi� Paul Polluted Lands Clean
Up Program (PLCP).
RECAMMENDq710NS: Approve (A) or Raject (F} pERSONAL SERVICE CONTRACTS MUST ANSWEH THE FOLLOWING QUESTIONS:
_ PIANNING CAMMISSION _ G�VIL SERVICE COMMISSION 1. Has this personRirm ever worketl under a con�ract for this department? �
_ CIBCOMMRTEE _ YES NO
2. Ha5 this person�rm e�er been a city employee?
_ STAFF — YES NO
_ OfSiFUC7 C�un7 _ 3. Does this petsonKrm possess a skili not normaNy possessed by atry curreM city empioyee?
SUPPOflTS WHICH COUNdL OBJECTIVE? YES NO
Explain all yas answers on separete sheet and attech to green shest
INITIATING PflOBLEM, ISSUE, OPPOFiTUNITV (Wlw, What, NTen. NTere, Why):
Opportunity to establish pollution clean up program 'to stimulate public and
private sector pollution clean up and redevelopment, maximizin'c��g�����3�ation of
funding sources available.
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ADVANTAGESIFAPPAOVED:
The PLCP will stimulate clean up activity in Saint Paul, enhance tax base,
eliminate b1ight and contribute toward job creation.
DISADVANTAGES IFAPPROVED:
None �� ���=w, �'F�4 lC�C��
.lAN G � ;�3� JAN p2 t996
C�rY ����RNEY
DISADVANTAGES IF NOTAPPFOVED:
No coordinated strategy for pollution clean up programs.
TOTAL AMOUNT OFTHANSACTION $ N�P' COST/HEVENUE BUDGETED (CIRCLE ONE) YES NO
FUNOING SOURCE N�R ACTIVITY NUMBER
FINANCIALINFOflMATfON:(EXPLAIN)
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The goals o f the PLCP are tn:
do Reclaim and redevelop unused, underused, blighted and polluted commerdal
and industrial land.
� Job aeation, recruitrnent, training and retention.
•o F.�cpand the at�s commeraal and industrial taac base.
6 Maximize the use of Federal, State and local resources.
� Stimulate private sector cleanup and redevelopment of contaminated sites.
The PLCP activities will include:
4 Phase I and Phase II environmental assessments and remediation plan development.
v Remediation of polluted sites and/or encapsulation of pollution to allow for
redevelopment.
•? Acquisirion of polluted sites for cleanup and resale upon remediation.
�f The provision of development 6nancial assistance.
o+ The provision of workforce iecruitment and training assistance to employers
locating facilities on the target sites.
Financing for the PLCP may be provided from a number o f sources:
6 Economic Development Initiative grant from HUD
$1 Million in grant funds available for St. Paul
•b Section 108 Loan Guarantee
Up to $20 Million in loans is authorized for St. Paul
�i Department of Trade and Economic Development (DT'ED)
Contamination Grant Program
$7.8 Million in grants available for 1996 and 1997 (To be applied for as available.)
�r Metropolitan Council's Tax Base Revitalization Account "brownfield program"
$6.5 Million in grants annually for Metro Aiea
w Polluted sites ta�c increment districts*
Funding availability is project specific
�� STAR I'rograui loans and grants`
$3.2 Million in esrimated loan and $1 Million in grant funds for 1996 projects
(To be applied for annually through the STAR Program.)
�'r Tazc-exempt revenue bonds for commercial and industrial development
� Enterprise Community Grant Program' �
$3 Million available, guidelines being developed
� Employment Incentive Grants* of up to $5,000 for each new job created in
Enterprise Zones for residents of the zone.
` Some geographic and other restrictions apply.
• Pollution cleanup is one of a number of development activities funded through these progams.
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Funds are available for large and small projects where the pnblic flnancial assistance
provided levenges significant economic benefits induding an increased talc base and
private investment Each of the finandng programs listed above have individual
eligibiliry 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 determining which
program funding is the most appropriate. Staff will then assist in the prepantion of
more detailed grant and loan apptications, depending on which program funding is
being pursued.
Projects assisted with program funds must comply with all Federal, State and local
laws and poliaes including prevailing wage standards, Affirmative Aciion, Targeted
Vendors, Jobs Impact Statement where appropriate and First Source.
Eligibility Criferia '
A Minnesota Pollution Control Agency approved Response Action Plan (RAP) (hazard-
ous waste cleanup pian) is required to be eligible for the Metro Councii's Tax Base
Revitalization Account, DT'ED's Contamination Grant Program and for tax increment
finanang assistance Met Council funds may be utilized for asbestos abatement and for
petroleum cleanup projec�s that are ineligible for the Petro Fund Program.
If the applicant dces not have an approved RAP, they may still qualify for funding
assistance under one of the other programs.
To receive assistance the applicant must demonstrate that the project will meet a
public purpose, e. g., tax base growth or elimination of a health hazard. It must also be
demonsh�ated that there is a financiai need for assistance. For example: the cost of
cleanup may far exceed the value of the site.
Parties responsibie for pollution may apply for financial assistance but the terms and
conditions of Rnancial assistance will be negotiated with the responsible party. Full
disclosure of ownership enrity of project site will be required.
In addition, there are geographical restrictions relative to the use of some of the
program funding sources.
1. Tax Increment funding must be used in the spedfic tax increment district.
2. STAR funding may only be utilized for neighborhood based projects.
3. Enterprise Community Grant Funds and Employment Incentive Grants may
only be utilized for projects located within an Enterprise Community Zone.
To qualify for an empioyment incentive grant, new jobs must be created for
zone residents.
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Project Selectian Criteria
The following project criteria will be used to determine site se�ection for remed4arion
and redevelopment:
1. The eactent to which the project will result in an inccease in the tax base
and/or elunination of a health hazazd.
2. Size of the site
3. The cost and ease of acquisition (if appropriate)
4. The cost of remediation
5. The amount o# private sector funds leveraged
6. The extent of recapture of public investment
7. Remediation project complerion schedule
8. The extent of the timely redevelopment potential
9. The eactent of community development impact, e.g., empowerment through
neighborhood partnerships
10. Highest and best use evatuation
a minimum of 30% coverage of building to land
:• minimum of 1 job per 1,000 squaze feet of building space for
manufac[uring uses and i job per 1,500 square feet for whoiesale,
distribution uses.
�A minimum of $30 per squaze foot construction value
11. Marketability of site: Iocafion, visibility, access to transif, azferial streets and
freeways.
12. Degree to which project is consistent with City's comprehensive plan,
small area plans and othei related City plans.
13. Level of neighborhood and District Planning Council support for the
proposed project.
Program Fees
The Department of Planning and Economic Development wIll charge a 1.5% fee for loan
and grants applied for through the PLCP.
For Mare In formation
Please contact Patrick Loonan or Sean Kershaw of the PED Business Services Resources
Center at 266-6600 for additional information.
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