Brownfields Cleanup
Revolving Loan Fund
Pilot Project
Hennepin County, MN
BACKGROUND
Hennepin County contains one-quarter of Minnesota's
population (1,050,000) and includes the city of
Minneapolis and 44 suburbs. With a proud past as an
important part of the river and rail corridor systems of
the upper-midwe st, Hennepin County must now contend
with contamination at many former industrial and
commercial sites. Many parcels of land in Hennepin
County are unavailable for redevelopment due to the
contamination resulting from previous industrial land
uses this century. These sites reduce the County's
property tax valuation and its overall quality of life, and
inhibit efforts to retain and attract commercial and
industrial businesses. Hennepin County's Brownfield
Cleanup Revolving Loan Fund (BCRLF) targets sites
throughout the County, with priority consideration for
sites within Minneapolis' Empowerment Zone, and
special designated districts such as hazardous waste
districts, which are tax increment financing districts.
In September 1999, the U.S. EPA issued a cooperative
agreement in the amount of $500,000 to Hennepin
County to establish and fund the BCRLF. In June,
2001, the U.S. EPA awarded an additional $500,000 to
Hennepin County to expand the BCRLF. The objective
of the BCRLF is to provide low-interest loans to clean
up brownfield sites in Hennepin County. Eligible
borrowers include private, for profit businesses, non-
profit businesses and public entities (excluding State
and Federal agencies and the University of Minnesota).
Through the BCRLF, Hennepin County has up to
$875,000 available to loan to public or private entities
forthe cleanup of contaminated lands. BCRLF loans are
available for the cleanup of soils and ground water
affected by the release of non-petroleum contaminants.
PILOT SNAPSHOT
Date of Loan:
October 2001
Amount: $240,000 to $450,000
Loan Profile: The Hennepin
County BCRLF will make their
second loan of $240,000 loan to
Housing Partners-Lofts LLC.
Hennepin County, Minnesota
Contacts:
Hennepin County
(216)443-3700
EPA Region 5
Project Officer
(312)353-2513
Visit the EPA Region 5 Brownfields web site at:
http://www.epa.gov/R5Brownfields/
For further information, including specific Pilot contacts, additional
Pilot information, brownfields news and events, and publications and
links, visit the EPA Brownfields web site at:
www.epa.gov/brownfields
The Hennepin County Brownfields Cleanup Revolving
Loan Fund will make its second loan to Housing
Partners Ill-Lofts, LLC, for an initial amount of
$240,000 with provision to increase the loan amount to
$450,000. The loan funds will be used for the cleanup
of one city block located northeast of the intersection of
1st Avenue NE and Main Street, NE in Minneapolis.
The site falls within the Nicollet Island/East Bank
neighborhood and within the larger University
community of Minneapolis. Greater than 40% of the
population in this neighborhood is below the poverty
level.
-------
STRUCTURE OF THE BCRLF PROGRAM
Hennepin County is the Lead Agency for the BCRLF
program. The Program is administered by Hennepin
County Department of Environmental Services (DBS).
DBS is responsible for ensuring that the BCRLF funds
are used for authorized purposes. All sites receiving
money from the BCRLF are required to enroll in the
Minnesota Pollution Control Agency's (MPCA's)
Voluntary Investigation and Cleanup (VIC) Program.
Hennepin County is responsible for ensuring that
environmental cleanups are done in compliance with all
applicable laws and regulations, and will work closely
with the VIC Program to do so.
BCRLF BORROWER
Housing Partners III-Lofts, LLC is the borrower for this
project and has teamed with the United States
Department of Housing and Urban Development, the
Minnesota Pollution Control Agency, the Minnesota
Department of Health, the Minnesota Department of
Trade and Economic Development, Hennepin County
Environmental Services and the Metropolitan Council.
The goal of this partnership is to revitalize the
neighborhood by remediating environmental hazards
and by constructing housing units and commercial retail
and office space. The County will loan the borrower
$240,000 for the cleanup of the site and may loan an
additional $210,000 in the event that unexpected
contamination requiring cleanup is encountered during
development
BCRLF CLEANUP SITE
The area surrounding the site has been used for over
150 years and is characterized by mixed land use.
Surrounding property includes a variety of industrial,
commercial and retail facilities, as well as high-density
residential. Idled and under-utilized, now the site has
been occupied by various commercial and residential
facilities, a stone quarry, various manufacturing
operations, a taxi garage, and a trucking facility.
Contaminated fill has been identified on a substantial
portion of the block. It appears that the contamination
is not associated with the former industrial uses of the
site. The soil contamination is primarily associated
with historic fill placed to elevate the grade. Site
investigations indicate that fill soils at the site are
contaminated by polynuclear-aromatic hydrocarbons,
VOCs, hydrocarbons, and metals at levels exceeding the
human-health based screening criteria established by the
Minnesota Pollution Control Agency for residential
land-use.
The remediation plan for the site involves excavating
approximately 40,000 cubic yards of soil and
transporting it off-site for disposal. Approximately
4,000 cubic yards of petroleum-contaminated soil will
also be excavated and transported off-site for either
thermal treatment or disposal (the BCRLF funds can not
be used for the cleanup of petroleum-contaminated soil).
Dust control procedures and stormwater run-off
procedures will be implemented during the entire
excavation period.
PROPOSED SITE REUSE PLAN
The development plan for Block 3 includes 12
townhouse-like condominiums and approximately 84
loft-style condominiums with underground parking.
The redevelopment plan for the other two blocks
include thirty affordable housing units, forty-eight
townhouses, 15,000 square feet of commercial/retail
space and 30,000 square feet of commercial/office
space.
In additional to a new facility, expanded social services
and innovative family outreach programs will be
provided. The Youth Intervention Center will serve as
a model for the rehabilitation of young people, as well
as a "green" facility.
The design incorporates energy efficiency and will
feature a community garden and greenhouse on the
north parcel of the property to enhance the quality of
life for inhabitants, workforce, and neighbors.
BCRLF LEVERAGING
This $240,000 BCRLF loan is expected to leverage over
$32 million in development. This loan project and the
first BCRLF loan project are expected to return over
$92 million in development costs, and increase the
city's property tax base by $2.6 million as well as
providing 150 jobs.
CONTACTS
Hennepin County BCRLF Project Coordinator
(612) 348-9938
-------
EPA Region 5
(312)353-2513
U.S. EPA-OSWER
Outreach and Special Projects Staff
(202) 260-4039
For additional information, contact the
RCRA/Superfund Hotline at: (800) 424-9346 or visit
the EPA Brownfields website at:
http://www.epa.gov/brownfields.
Use of BCRLF Pilot funds must be in accordance with
CERCLA, and all CERCLA restrictions on use of
funding also apply to BCRLF funds.
Solid Waste EPA 500-F-02-028
and Emergency June 2002
Response (5105) www.epa.gov/brownfields/
------- |