HomeMy WebLinkAbout4.e. 1992 Community Development Block Grant ProgramCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: December 3, 1991
AGENDA ITEM:
1992 Community Development Block
AGENDA SECTION:
Grant Program
Consent
PREPARED BY:
Tracie L. Pechonick
Economic Development Specialist
AGENDA NITEM
4 E
ATTACHMENTS:
1992 CDBG Application; EDA
APP D
Resolution;
Proposed City Council Resolution
Every other year the City of Rosemount is eligible to 4 ply f99' funds
provided through the Community Development Block Grant Program administered
by the Dakota County Housing and Redevelopment Authority. In the past
these funds have been used for such activities as the relocation of AAA
Auto Salvage, the purchase and demolition of the Schneider and Launderville
properties, and the purchase of Repairs, Inca
As these funds are sited to be used for economic development or housing
projects, the City Council has always permitted the development body of the
City of Rosemount (HRA / EDA) to determine what project(s) said funds would
be dedicated to.
Attached for your review is the "Dakota County Community Development Block
Grant Proposal for Fiscal Year 1992." It is anticipated that Rosemount
will receive approximately $90,000 if the proposed project meets funding
criteria. The project which the EDA proposes to request funding for is the
acquisition and clean up activities on the Strese Oil Company site at 14810
South Robert Trail. While staff realizes that $90,000 would not fund the
proposed project in its entirety, we feel that this amount would pay for
all or a good portion of the costs which would result from necessary clean
up activities on the subject site.
The EDA has provided "A Resolution Establishing Property in the City of
Rosemount as Blighted Pursuant to Minnesota Statutes Section 469.002,
Subdivision 11." In addition to this resolution, Dakota County also
requires that "A Resolution Approving the Application of the City of
Rosemount for Fiscal Year 1992 Dakota County Community Development Block
Grant Funding" be adopted by the Council prior to submission of the funding
application.
At this time, staff requests that the Council adopt the proposed resolution
approving said funding proposal and allowing staff to forward the necessary
documents to the Dakota County Housing and Redevelopment Authority for
funding consideration.
RECOMMENDED ACTION: Motion adopting "A Resolution Approving the
Application of the City of Rosemount for Fiscal Year 1992 Dakota County
Community Development Block Grant Funding."
COUNCIL ACTION:
Dakota County
Community Development Block Grant Proposal
Fiscal Year 1992
CITY OF ROSEMOUNT DISTRICT FOUR
Legal Name of Applicant Community Development
District
2875 145TH STREET WEST
P.O. BOX 510
Legal Address of Applicant
ROSEMOUNT PIN 55068
City State Zip
TRACIE L PFCHONICK
Contact Person
ECONOMIC DEVELOPMENT SPECIALIST (612) 423-4411
Title Phone Number
STRESE PROPERTY ACQUISITION
Project Name
The subiect Drouerty is located -at 14810 South Robert Trail in Rosemount. The proposed
project consists of the purchase / relocation of an existing gas/repair station and
bulk fuel oil facility currently located on the site. The facilities located on the
site are blighted and in disrepair. The Rosemount EDA is interested in the
rehabilitation of the subject site so that it will be marketable ,for another business
that has indicated an interest in relocating to the subject site.
Brief Description of Project
$ 90,000
Amount Requested
1.
2.
3.
4.
Has this project received funding CDBG before?
Yes -X No
Project duration:
One Year
X Other (Specify) : timeline to be determined by remedial action program
Proposed beginning date: January 1, 1992
Proposed completion date: December 31, 1992
Grant funds will be used for:
x Acquisition
x Clearance Activities (if deemed necessary)
Disposition
Economic Development
Planning
Public Facilities
Public Services
Rehabilitation
-_ Other (Specify) : tank removal; remedial action program
Federal objective addressed (attach documentation):
Benefit to low and moderate income persons
- Total number of persons benefitting:
- Percentage of low/moderate income:
x Aid in the prevention or elimination of slums and blight
Alleviation of urgent community development need
General description of the project (include project goals and
importance to community):
Please refer to attached documentation.
EJ
S. GENERAL DESCRIPTION OF THE PROJECT (INCLUDE PROJECT GOALS AND
IMPORTANCE TO COMMUNITY):
The subject site is located in "downtown Rosemount" at 14810 South
Robert Trail. The activities which were previously conducted
there, gas/repair station and bulk oil sales, have not been
operational for quite some time.
The Rosemount Economic Development Authority is interested in
purchasing the subject site for the following reasons:
(1) site location in downtown Rosemount; and
(2) willingness on the part of the business/property owners
to sell; and
(3) interest on the part of another Rosemount business to
locate on said site; and
(4) current owner's disregard for site upkeep; and
(5) substantial rehabilitation necessary to restore the
subject site to a usable piece of property.
The subject site has six (6) underground fuel tanks as well as
several above ground bulk fuel tanks. Rehabilitation will require
removal of all tanks as well as various tests (soil borings, etc.),
to determine the levels of any site contamination. Based upon test
results, the Rosemount Economic Development Authority will work
with the Minnesota Petroleum Tank Release Compensation Board
(Petrofund) and other appropriate entities to establish a remedial
action program for the site.
Through research on the topic, staff has determined that 10% of the
approved remedial action program would be paid by the property
owner, which would potentially be the Rosemount Economic
Development Authority. The property owner could apply for
reimbursement of the remaining 90% of costs incurred through the
remedial action program. It is important to note, however, that
the activities leading up to the remedial action program, such as
- soil borings and tank removal, do not qualify for reimbursement but
are costs borne by the property owner. In addition, while the
property owner can apply for 90% reimbursement on the actual
remedial action program, it is not certain that said owner will
receive the requested reimbursement.
Through some initial contacts with the Minnesota Petroleum Tank
Release Compensation Board personnel, it was determined that the
cost for a remedial action program could involve a variety of
activities including, but not limited to, soil excavation,
structure demolition, land application of contaminated soil, hiring
of an environmental consultant, and on site monitoring wells.
Ultimately, the Rosemount Economic Development Authority is
interested in pursuing this project for the purpose of making the
subject site suitable for new development in the Rosemount
downtown.
6. Description of project area (attach map):
The subject site is located at 14810 South Robert Trail in Rosemount,
It is currently under the ownership of Strese Oil Company.
7. Construction schedule:
x Not Applicable
Applicable
If applicable:
Estimated date G P�-ria'l begin: January 1992
Estimated date eenetruetien will be completed:Derember 1992
site rehabilitation
S. Project cost:
PLEASE NOTE THAT THE FOLLOWING ARE ESTIMATED COSTS:
Total project cost: $ 184,000
Amount of C.D. Grant requested : $ 90,000
(Percentage of total project cost): 49
Source and amount of other revenue:
MN Petroleum Tank Release Compensation Bd.$ 90% of remediation
Rosemount EDA $ 10% of remediation
9. Budget summary by activity:
Activity CDBG
soil testing / borings $
tank removal $ 18,000
site acquisition
remedial action plan
$ 90,000
Other/List Source
$ 12,000
Source • EDA
S
Source• EDA
$ 64,000
Source • EDA
$ unknown
Source: EDA/ Petrof und
$76,000
Total
$ 12,000
$ 18,000
$154,000
$184,000
10. Additional supporting items submitted with proposal (check if attached):
Benefit documentation (See question 4)
X Resolution of governing body requesting grant
Additional project information
X Map or sketch outlining project area
Professional's certification of feasibility and accuracy of
scope and budget (engineer's, architects, etc.)
Letters in support of project/or letters of commitment
X_ Other (Specify): preliminary agreement between property owner and EDA
-------------------------------------------------------------------------
Certification
I certify that the statements and application requirements of this official
proposal are correct and that this proposal contains no misrepresentation or
falsifications, omissions, or concealment of material facts and that the
information given is true and complete to the best of my knowledge and
belief, and that no bids have been awarded, contract" executed, or
construction begun on the proposed project.
Sig
CITY AMITNTSTRATOR
Title -
ized Official
Date
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1991 -
A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF
ROSEMOUNT FOR FISCAL YEAR 1992 DAKOTA COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING
BE IT RESOLVED by the City Council of the City of Rosemount as
follows:
1. The City Administrator is authorized to submit the attached
application to Dakota County for a Community Development
Block Grant in Fiscal Year 1992.
2. The application is approved by the City Council and the
Mayor and City Clerk are authorized to execute it on behalf
of the City of Rosemount.
3. That the City of Rosemount Economic Development Authority
continue to be designated as the entity to carry out the
program on behalf of the City.
4. That the Dakota County Housing and Redevelopment Authority
be designated as the administrative entity to carry out the
program on behalf of the Rosemount Economic Development
Authority.
ADOPTED this 3rd day of December, 1991.
ATTEST:
Susan M. Walsh, City Clerk
Motion by:
Voted in favor:
Voted against:
Vernon J. Napper, Mayor
Seconded by:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION 1991 -
A RESOLUTION ESTABLISHING PROPERTY
IN THE CITY OF ROSEMOUNT AS BLIGHTED PURSUANT
TO MINNESOTA STATUTES SECTION 469.002, SUBDIVISION 11
WHEREAS, the City of Rosemount desires to use Community Development
Block Grant funds to assist in the acquisition and remediation of
blighted property; and
WHEREAS, the City of Rosemount Economic Development Authority is
acting on behalf of the City of Rosemount in administrative aspects
of the grant program; and
WHEREAS, the Dakota County Housing and Redevelopment Authority is
acting on behalf of the Rosemount Economic Development Authority
in administrative aspects of the grant program; and
WHEREAS, the City of Rosemount Economic Development Authority has
evaluated the property located at 14810 South Robert Trail in
Rosemount, parcel identification number 34-03700-030-62, to
determine eligibility for funding.
NOW, THEREFORE, BE IT RESOLVED, the Rosemount Economic Development
Authority of the City of Rosemount hereby certifies that the
property in question does hereby meet the criteria and definition
of a blighted area as defined in Minnesota Statutes Section
469.002, Subdivision 11.
ADOPTED this 3rd day of December, 1991.
ATTEST:
Stephan Jilk, Executive Dir.
Motion for:
Voted in favor:
Voted against:
Joseph P. Walsh, Chairperson
Seconded by:
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it LOCATION MAP qty O STRESE OIL COMPANY, 14810 South Robert Trail
osemount
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PROJ. NO.
FIGURE
AGREEMENT
This Agreement, made and entered into this day of
r , 1991, by and among Walter W. Strese and Olga Strese,
husband and wife, Walter D. Strese, and Kathleen Strese, husband
and wife, and d/b/a .Strese Oil Company (collectively the "Streses")
and The City of Rosemount Economic Development Authority, a public
body corporate and politic under the laws of the State of Minnesota
(the "EDA").
RECITALS:
1. Walter W. Strese and Olga Strese are selling the real
property legally described on Exhibit A attached hereto (the
"property") to Walter D. Strese.
2. Walter D. Strese operates Strese Oil Company upon the
property.
3. The Streses are negotiating for the sale of the property
to the EDA.
4. The EDA is requiring, as a condition of continued
negotiations, that soil borings be taken from the property and
analyzed.
5. The Streses and the EDA desire to provide for the taking
of the soil borings on the terms and conditions; set forth below.
NOW, THEREFORE, in consideration of the premises, the Streses
and the EDA do hereby agree as follows:
1. Grant of Rictht of Entry. The Streses do hereby grant to
the EDA, its employees, agents, successors and assigns, the right
to enter upon the property for the purpose of taking such soil
borings as the EDA or its employee, agent, successor or assign may
determine.
2. Costs. The costs charged by any agent or assignee in
connection with the taking of the soil samples, analyzing the
samples and preparing a report shall be borne by the EDA; provided
however, that in the event that the sale of the property by the
Streses, or any of them, to the EDA is consummated, said costs
shall be borne by the Streses, or any of them, and applied to the
Purchase price to be paid by the EDA.
3. No Offer or Acceptance. Execution of this Agreement
shall not constitute an offer by the EDA to purchase the property,
nor an acceptance by the EDA of any offer to purchase the property.
4. Indemnification• Release. The Streses agree to
indemnify, defend and save the EDA harmless from any and all
1
claims, suits, demands, actions, finds, damages and liabilities,
and all costs and expenses related thereto, arising out of or in
any way connected to the taking of the soil samples. The Streses
do further hereby release the EDA from any and all claims, suits,
demands, actions, finds, damages and liability arising out of or
in any way related to the taking of the soil samples.
5. Report. The report generated by any agent or assignee
in connection with the soil samples shall be the property of the
EDA.
6. Successors and Assigns. The successors and assigns of
the Streses, or any of them, and the EDA shall be bound by the
terms of this agreement.
IN WITNESS WHEREOF, the Streses and the EDA have made this
Agreement on the day and year first above written.
By: !/i u/ ....�
Walter W. Strese �
By: �I Q
Olga StreS
By:
Walter . Strese
By: ,.
Kath`teen Strese, d/b/a Strese Oil
Company
By: //-" (,. �
1z
Walter D. Strese,
d/b/a Strese Oil Company
Kathleen Strese,
k4�e 1 d/b%a Strese Oil Company
THE CITY OF ROSEMOUNT ECONOMIC
DEVELOPMENT AUTHOR;