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AGENDA RECOMMENDATION |
Consent Calendar 6.E.
City Council Regular Meeting
- Meeting Date:
- 08/12/2024
Agenda Item:
Resolution accepting the Minnesota Department of Employment and Economic Development (DEED) Cleanup Grant and authorizing the City Manager to execute a Cleanup Grant Agreement and Subrecipient Agreement for Silos (118 East Plum Street).
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
On April 22, 2024, the City Council approved the submission of a Cleanup Grant application to the Minnesota Department of Employment and Economic Development (DEED) for the Silos project. In June 2024, DEED awarded a grant for the project.
Silos was awarded a $76,770.00 cleanup grant. Silos Mankato, LLC, is redeveloping the property located at 118 East Plum Street. The redevelopment includes a four-story mixed-use building with a commercial suite on the ground floor and 26 apartment units.
The eligible cleanup costs include investigation (match only); excavation, transportation, and disposal of contaminated soil, clean soil backfill, vapor mitigation system, and environmental oversight and reporting. Cleanup activities have begun, but are not yet finished. DEED contamination cleanup grants can be used to provide reimbursement for cleanup activities that occur prior to and after an executed grant agreement. The matching funds of $36,450 have been committed and will be paid by the developer, Silos Mankato, LLC. DEED contamination cleanup grants require at least 12% of the match to come from an unrestricted source. The project’s tax increment financing for redevelopment is considered a restricted source. A portion of the match for the grant will be reimbursed to the developer with an increment that is generated from the redevelopment.
The grant agreement is attached for reference. If acceptance of the grant is approved by the City Council, the City Manager will execute the grant agreement with DEED. A subrecipient agreement would be entered between the City and Silos Mankato, LLC after execution of the grant agreement. A draft subrecipient agreement is attached.
Silos was awarded a $76,770.00 cleanup grant. Silos Mankato, LLC, is redeveloping the property located at 118 East Plum Street. The redevelopment includes a four-story mixed-use building with a commercial suite on the ground floor and 26 apartment units.
The eligible cleanup costs include investigation (match only); excavation, transportation, and disposal of contaminated soil, clean soil backfill, vapor mitigation system, and environmental oversight and reporting. Cleanup activities have begun, but are not yet finished. DEED contamination cleanup grants can be used to provide reimbursement for cleanup activities that occur prior to and after an executed grant agreement. The matching funds of $36,450 have been committed and will be paid by the developer, Silos Mankato, LLC. DEED contamination cleanup grants require at least 12% of the match to come from an unrestricted source. The project’s tax increment financing for redevelopment is considered a restricted source. A portion of the match for the grant will be reimbursed to the developer with an increment that is generated from the redevelopment.
The grant agreement is attached for reference. If acceptance of the grant is approved by the City Council, the City Manager will execute the grant agreement with DEED. A subrecipient agreement would be entered between the City and Silos Mankato, LLC after execution of the grant agreement. A draft subrecipient agreement is attached.