HomeMy WebLinkAbout2018-07-10 PACKET 04.02.
TO: Economic Development Authority
FROM: Christine Costello, Economic Development Director
DATE: July 10, 2018
RE: Second Amendment to the Contract for Residential Redevelopment with Twin Cities
Habitat for Humanities
Background
On March 21st the City Council approved the contract for residential redevelopment with Twin
Cities Habitat for Humanities (TCHFH) for the former municipal pool site at 6541 85th Street for
the construction of three affordable workforce single-family homes. The homes will be one-story,
four-bedroom. The design of the homes will be in keeping with the architecture standards of the
neighborhood and the City’s Zoning Ordinance.
Looking Southeast
As TCHFH began their review of historical photos of the site as part a Phase I environmental
review, the images showed a structure in the area of the former pool parking lot in 1947. This
finding presented concerns to TCHFH related to potential environmental issues at the site. On
April 26th observation trenches were dug to verify that there were no unknown structures or
building materials in the area of question. TCHFH and Braun Intertec (environmental
consultant) observed the trenches and no items were identified of concern. Soil samples were
also taken on the site and the results revealed that there was lead contamination in the soil
approximately four feet down.
Economic Development Authority
July 10, 2018
Page 2 of 2
On May 16th the City Council approved the first amendment to the contract for residential
redevelopment with TCHFH (the EDA approved in May 8th) due to the environmental work as
well as the encroachment issues with some of the neighboring properties. The encroachment
issues were resolved and TCHFH will close on two of the three lots on July 11th; the two lots
are not impacted by the environmental remediation that needs to take place.
Discussion
The remaining lot that will not close on July 11th due to the lead contamination in the soil. The
soil will need to be corrected before the lot can close. TCHFH has requested that the City enroll
the site in the Minnesota Pollution Control Agency’s (MPCA) Voluntary Investigation and Cleanup
(VIC) Program. By enrolling in the VIC Program, it will allow TCHFH and its lenders reasonable
confidence that they will know the extent of the environmental problem and what the appropriate
cleanup action for the lot will be. Enrolling in VIC provides TCHFH and its lenders a technical
approval letter which assures the MPCA has reviewed and approved the action plan. This process
will last till mid-Fall, thus pushing back the closing on the final lot till a technical approval letter is
received by the City and TCHFH. Since the closing can not occur till after this process a second
amendment to the contract for residential development is required. The proposed closing for the
final lot will take place on or no later than December 31, 2018.
Recommendation
Authorize the EDA President and Executive Director to amend the Contract for Residential
Development with Twin Cities Habitat for Humanities.
Attachment
Second Amendment to Contract for Residential Redevelopment