Request for Committee Action

2024-01189 - Applications for environmental grant funding in the fall 2024 brownfield grant round

On October 31, 2024, the City approved the submission of brownfield grant applications for a number of projects, including those identified herein. The brownfield grantors subsequently awarded the following grants for projects located in the City of Minneapolis:

Metropolitan Council TBRA (Tax Base Revitalization Account) Grants:

Hennepin County Environmental Response Fund (ERF) Grants:

Total grant funds in the amount of $3,637,876 were awarded in the fall 2024 brownfield grant funding round, for projects located in the City of Minneapolis. The total amount awarded in the fall 2024 round is 75.7% of the total amount requested ($4,803,208) for projects located in the City.

The grant funds awarded in the fall 2024 brownfield round ($3,637,876), when combined with the $1,020,020 awarded in the spring 2024 brownfield round, result in total brownfield grant funding of $4,657,896 for Minneapolis projects in 2024.  That amount represents 71% ($4,657,896/$6,560,118 = .71) of the total amount requested during 2024 for projects located in the City.

Minnesota Department of Employment and Economic Development (DEED) Contamination Cleanup and Investigation Grant Program – of the $6,991,882 awarded state-wide, Minneapolis projects were awarded $0.  The City submitted only one grant application (for the 2211 Broadway St NE project), but that application was not funded by DEED because a different grantor (the Met Council) agreed to include 100% of the project’s DEED request in its (the Met Council’s) TBRA/SEED award in the November 1, 2024 grant round.

Metropolitan Council Livable Communities Tax Base Revitalization Account (TBRA) Grant Program – of the $2,261,200 awarded metro-wide, Minneapolis projects were awarded $1,852,600, or 81.9% of the grant funds awarded. The City submitted three applications, and all three of those projects were awarded a grant. The funds awarded to those three projects represent 133.95% of the total amount requested ($1,383,004) by the three grant-seeking projects (this high percentage is primarily due to the Met Council agreeing to award $251,600 to the 2211 Broadway St NE project despite the fact that the project had requested only $83,041;  the $168,559 difference represents a DEED request that the Met Council agreed to include in its TBRA/SEED award for the project in question).

Hennepin County Environmental Response Fund (ERF) Grant Program – of the $2,165,055 awarded for Hennepin County projects, Minneapolis projects were awarded $1,785,276, or 82.5% of the grant funds awarded. Five of the seven applications that were submitted for City of Minneapolis projects were awarded grant funding. (One of the projects that was not awarded ERF funding --- Rise Up Center --- had most of its ERF request covered by a TBRA award by the Met Council; i.e., the Met Council awarded $274,500 in TBRA funding on a $213,415 TBRA request).  The funds awarded to the five projects that received ERF grants represent 52% of the total amount requested ($3,420,204) by the seven grant-seeking projects.

Geographic Distribution of Grant Awards

A total of 24 grants were awarded by the three local brownfield grantors (DEED, 12; Metropolitan Council, 5; Hennepin County, 7) during the fall 2024 grant round. Projects receiving grant awards are located in the following jurisdictions:

City of Minneapolis as grant recipient:

2211 Broadway St NE (2211, 2211½ and 2301 Broadway St NE)

Met Council TBRA/SEED Award:  $251,600

The developer, Bander Center, Inc., will convert a dilapidated industrial building with substantial soil vapor impacts into a business center with accessory uses [62,400 sf in total] including a worship space, community center, classrooms, restaurants, a coffee shop, a daycare, and office space. The projected total development cost is $5,560,000. The awarded grant funds will be used for the installation of a vapor mitigation system.

Cheatham Apartments (3716 Cheatham Ave)

Met Council TBRA Award:  $1,326,500

Hennepin Co. ERF Award:       777,265

                                             $2,103,765

This innovative project is a joint housing endeavor involving developers Trellis Company (affordable units) and Hall Sweeney (market rate units), who will construct two separate buildings, connected in the middle by the historic (refurbished) “headhouse” from the former grain elevator on this site. The development team will abate and demolish the existing grain silos and transform this blighted industrial property into a mix of apartment units, amenities and gathering spaces. The blended total of 218 apartment units will include 120 market rate units, and an additional 98 units that will be affordable at or below 80% AMI (of which 79 will be affordable at or below 60% AMI). The projected total development cost is $73,663,460. The awarded grant funds will be used for soil remediation and for the abatement of lead-based paint and asbestos-containing materials.

Rise Up Center (2820 and 2828 Hennepin Ave S)

Met Council TBRA Award:  $274,500

The Rise Up Center, located in the former YWCA Uptown building, will be a 60,000-square-foot hub offering pre-apprenticeships, jobs, and training in green energy and other sectors. Led by BIPOC organizations, it aims to train 3,000 Minnesotans annually, promoting economic prosperity and net-zero carbon standards. The projected total development cost is $23,859,805. The awarded grant funds will be used for the installation of a vapor mitigation system and for the abatement of lead-based paint and asbestos-containing materials.

The Springs (809 and 828 Spring St NE)

Hennepin Co. ERF Award:   $364,134     

The Minneapolis Public Housing Authority [MPHA] intends to rehabilitate two existing apartment buildings [a 21-story apartment building and a 4-story apartment building, with a total of 221 units in the two buildings, 100% affordable] and construct a new 4-story addition [15 affordable units]. The projected total development cost is $71,706,427. The awarded grant funds will be used for soil remediation, the installation of a vapor mitigation system, and the abatement of lead-based paint and asbestos-containing materials.

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Developer as grant recipient:

The City did not submit the grant applications for the projects referred to below; instead, the projects in question applied directly to Hennepin County. The County allows certain parties to apply directly to them (rather than through the City) if the applicant is identified in the County’s guidelines as an authorized “direct” applicant, and if the City Council adopts a resolution indicating its support for the project. For the projects referred to below, the grant agreements will be between Hennepin County and the grant recipients, rather than between the County and the City. Therefore, no subrecipient agreement will be required, and the City will not appropriate the grant funds. The grant recipient will obtain reimbursement for eligible remediation costs directly from the County rather than from or through the City. These projects are presented for informational purposes only.

CLCLT Homes -- Fall 2024 (1026 Irving Ave N, 1134 James Ave N, 1714 Irving Ave N, 1923 Willow Ave N, 2308 Elliot Ave S, 2314 Elliot Ave S, 2424 17th Ave S, 2506 James Ave N, 2833 30th Ave S, 3015 Colfax Ave N, 3204 Elliot Ave, 3318 N 6th St, 3406 Penn Ave N, 3709 24th Ave S, 3909 11th Ave S, 3937 23rd Ave S, 4033 16th Ave S, 4209 41st Ave S, 5246 Knox Ave N, 5305 46th Ave S, and 5317 41st Ave S)

Hennepin Co. ERF Award:  $480,000     

The City of Lakes Community Land Trust will use the awarded grant funds to conduct lead and asbestos remediation on homes acquired by the CLCLT for redevelopment, through its Homebuyer Initiated Program, or through partnerships with public entities or other developers.

Debre Selam Medhanealem Ethiopian Orthodox Tewahedo Church (2629 30th Ave S)

Hennepin Co. ERF Award:  $81,057     

This currently vacant lot will be the site of a church and gathering center, primarily for local immigrant and minority groups (although all are welcome). The overall development, consisting of 22,000 square feet of new construction, will also include childcare facilities and community meeting space. The projected total development cost is $8,600,000. The awarded grant funds will be used for soil remediation.

Whittier Park (2600 Grand Ave S)

Hennepin Co. ERF Award:   $82,820     

The Minneapolis Park & Recreation Board [MPRB] intends to make improvements to the Whittier Park playground by adding new play equipment, walking paths and a new multi-use court for futsal and basketball. Electrical work for pedestrian lighting, and site furnishing such as benches, picnic tables and a drinking fountain, are also included, along with new storm water management features. The projected total development cost is $900,000. The awarded grant funds will be used for soil remediation.