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AGENDA RECOMMENDATION       
Consent Calendar   6.Q.
City Council Regular Meeting
Meeting Date:
04/14/2025

Agenda Item:

Resolution authorizing City Manager to submit a Contamination Cleanup Grant application to the Minnesota Department of Employment and Economic Development for 751 Poplar Street.

Recommendation/Action(s):

Adoption of the attached resolution.

Summary:

The Minnesota Department of Employment and Economic Development (DEED) is accepting applications for the contamination cleanup grant program. The program offers grants to assist communities with cleaning up contaminated sites for private or public redevelopment to convert contaminated properties into a more productive use. Eligible costs include remediating contamination. Grants can assist with up to 75 percent of the costs of cleaning up polluted sites and require a 25 percent local match.
 
The next grant round has applications due May 1, 2025. DEED anticipates awarding 35 percent of the available funding to projects outside the seven-county metropolitan area and 65 percent of the funding to projects within the seven-county metropolitan area.
 
The City Council adopted a resolution at their May 28, 2024 meeting authorizing a Memorandum of Understanding with Trellis Company which provided Trellis Company with site control and for the redevelopment of the City-owned property at the corner of Poplar Street and Linder Avenue. The redevelopment would include construction of a three-story, 40-unit supportive housing project. The site was developed by at least 1938 with at least two structures and a portion of railroad tracks. The structures were removed in the late 1950s and early 1970s. The railroad track was removed by the early 1990s.
 
 

The City of Mankato would be seeking contamination cleanup grant funds to assist with the cleanup necessary for the redevelopment of the property. At this time, the cleanup budget is being finalized, but it is estimated the grant request will be in an amount up to $190,000. Eligible costs would be for excavation, transportation and disposal of contaminated soil and environmental oversight. The redevelopment is planned to begin in late 2025 or early 2026. The 25 percent match would be paid by the developer.
 
If a grant is awarded, the final grant agreement will be submitted to the City Council for approval prior to execution. Grant awards are estimated to be made in June or July 2025.

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