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HomeMy WebLinkAbout4.t. 1992 Community Development Block Grant ProgramCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: December 17, 1991 - AGENDA ITEM: 1992 Community Development Block AGENDA SECTION: Grant Program Consent PREPARED BY: Tracie L. Pechonick Economic Development Specialist AGENDA NO ITEM# 4T ATTACHMENTS: 1992 CDBG Application; EDA AP 16VE BY: Resolution; Proposed City Council Resolution Every other year the City of Rosemount is eligible td apply f�r 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, Inc. 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 Legal Name of Applicant 2875 145TH STREET WEST P.O. BOX 510 Legal Address of Applicant DISTRICT FOUR Community Development District ROSEMOUNT MN 55068 City State Zip _TRACIE L. PECHONICK Contact Person ECONOMIC DEVELOPMENTSPECIALIST' Title STRESE PROPERTY ACQUISITION Project Name ( 612) ,423-4411 Phone Number The subject property 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 subiect 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. Has this project received funding CDBG before? Yes x No 2. 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 3. Grant funds will be used for: x Acquisition x Clearance Activities (if deemed necessary) Disposition Economic Development Planning PublicFacilities Public Services Rehabilitation x Other (Specify) tank removal; remedial action program 4. 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 5. General description of the project (include project goals and importance to community): Please refer to attached documentation. 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 100 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 subiect site is located at 14810 South Robert Trai 'in Rosemount It is currently under the ownerships Strese Oil Company. 7. Construction schedule: 8. 9. x_ Not Applicable Applicable If applicable: Estimated date begin: January 1992 Estimated date eentructien will be completed: D mb 1992 site rehabilitation 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 Budget summary by activity: Activity CDBG Other/List Source soil testing / borings tank removal site acquisition remedial action plan S $ 12,000 source • EDA Total $ 12,000 $ 18,000 $ 18,000 Source • EDA $ 90,000 $ 64,000 Source • EDA $ $ unknown Source: EDA/Petrof und $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 istrue,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. Sicinatifre of Aut rized official CITY ADiTNTSTRATOR Title Date 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 17th day of December, 1991. Joseph P. Walsh, Chairperson ATTEST: Stephan Jilk, Executive Dir. Motion for: Seconded by: Voted in favor: Voted against: 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 17th day of December, 1991. Vernon J Napper, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted against: 12 3 t ,14 14 to N O v? n 1 .00 103 2 rl1 1 I 27 i LU E C =I iL�' TGR Mov 26 } LCT 0 2 1 Z L-0 . H w g 1 � •9 J CY .0 i� � J 17 %. 1p oE'4�T is - O j/ PROD. NO. LOCATION MAP eity � STRESE OIL COMPANY, 14810 South Robert Trail OSE'.YYLOUYt� FIGURE 21 AGREEMENT This Agreement, made and entered into this , day of Nnr,�er , 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 thetaking 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 Ricrht 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 Assians. 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. WITNESSES: (� y Walter W. Strese Olga Stream f 0 By: �, - �, V Z� Walter . Strese By • Kathleen Strese, d/b/a Strese Oil Company Z) r� zz By:)t� Walter D. Strese, d/b/a Strese Oil Company j L Kathleen Strese, d/b/'a Strese Oil Company THE CITY OF ROSEMOUNT ECONOMIC DEVELOPMENT AUTHOR ^' By: _ 2