Loading...
HomeMy WebLinkAboutItem 06.u Date: Item No. Kingsley Place Senior Housing Contaminated Site Cleanup Grant Applications Proposed Action Staff recommends adoption of the following motion: Approve resolutions authorizing submittal of grant applications on behalf of the Kingsley Place Senior Housing Project to the Dakota County CDA and MN Department of Employment and Economic Development for contaminated site cleanup grants. Overview The original Kingsley Shores project contains 101 senior assisted-living, memory care, and independent living units and was constructed in 2013. In August of 2019, construction began on a 55-unit independent living three story building called Kingsley Place that is adjacent to the original Kingsley Shores that will be connected by a skyway. When excavation for the new building started last August, contaminated soils and construction were encountered almost immediately even though Phase I and Phase II Environmental Surveys and soil testing had been completed prior to construction. The developer received approval from the MN Pollution Control Agency (MPCA) to remove all the contaminated soils and debris from the building footprint area on the site and transport it to an approved disposal site at the developer’s expense. As a result, construction was able to continue for the building over the winter. The Developer received approval of a Response Action Plan from the MPCA for the cleanup of the remainder of the site and to install a methane/vapor mitigation system in the new building. These costs estimated at $ 802,675 are eligible for the Dakota County CDA Redevelopment Incentive Grant Program and the MN Department of Employment and Economic Development Contaminated Site Clean-up Grant Program. In both cases, the City is required to be the applicant for the grant funds. All matching funds for both grant programs would be the responsibility of the Developer and no City funds are proposed to fund cleanup costs. Staff recommends approval of the submission of both grant applications. Approved grant agreements would come back for City Council approval. Primary Issues to Consider • What are the potential costs to the City with either of these grant applications? None other than City staff time. Supporting Information • Resolution authorizing submittal of a Redevelopment Incentive Grant application to the Dakota County CDA • Resolution authorizing submittal of a Contaminated Site Clean-up grant application to the MN Department of Employment and Economic Development Financial Impact: Budgeted: Y☐ N☐ Source: Related Documents: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community & Economic Development Director April 6, 2020 None CITY OF LAKEVILLE RESOLUTION NO. ____ RESOLUTION TO APPROVE A CONTAMINATION CLEANUP GRANT APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT FOR THE KINGSLEY PLACE SENIOR LIVING DEVELOPMENT PROJECT BE IT RESOLVED that the City of Lakeville has approved the Contamination Cleanup grant application submitted to the Department of Employment and Economic Development (DEED) by May 1, 2020, by Charthouse Senior Living, LLC for the Kingsley Place site. BE IT FURTHER RESOLVED that the City of Lakeville is located within the seven county metropolitan area defined in section 473.121, subdivision 2, and is participating in the local housing incentives program under section 473.254. ADOPTED by the Lakeville City Council this 6th day of April, 2020. ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk CITY OF LAKEVILLE RESOLUTION NO. ____ RESOLUTION TO APPROVE A REDEVELOPMENT INCENTIVE GRANT APPLICATION TO THE DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY FOR THE KINGSLEY PLACE SENIOR LIVING DEVELOPMENT PROJECT WHEREAS, the City of Lakeville has identified a proposed project within the City that meets the Dakota County Community Development Agency (CDA) Redevelopment Incentive Grant program’s purposes and criteria; and WHEREAS, the City has established a Redevelopment Plan of which the proposed project is a component; and WHEREAS, the City has the capability and capacity to ensure the proposed project be completed and administered within the Redevelopment Incentive Grant program guidelines; and WHEREAS, the City has the legal authority to apply for financial assistance; and WHEREAS, the City is supportive of affordable housing and of the CDA’s mission, to improve the lives of Dakota County residents through affordable housing and community development. NOW THEREFORE BE IT RESOLVED that the City of Lakeville approves the application for funding from the Dakota County CDA Redevelopment Incentive Grant program. BE IT FURTHER RESOLVED that upon approval of its application by the Dakota County CDA, David Olson, Community & Economic Development Director, is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project. ADOPTED by the Lakeville City Council this 6th day of April, 2020. ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk FY 19-20 Cleanup - 1 Brownfields and Redevelopment Unit 1st National Bank Building 332 Minnesota Street, Suite E200 St. Paul, MN 55101-1351 Contamination Cleanup Grant Application and Part 1 of the Revolving Loan Application Applicant (Public Entity): City of Lakeville__________________________ Head of Applicant Agency (e.g., Mayor): Mayor Douglas P. Anderson________ Applicant Address: 20195 Holyoke Avenue____________________________ City: _Lakeville_____________________ Zip Code: 55044_________________ If the applicant is a city, what form of government? ☐ Home Rule ☒ Statutory City Project Contact for the Public Entity: David Olson____________________________ Phone: 952-985-4421 Email: dolson@lakevillemn.gov_______________ Mailing Address: 20195 Holyoke Avenue, Lakeville, MN 55044_____ Project Manager for this project from the Public Entity, in the event of an award: David Olson, Community & Economic Development Director Project Manager’s Phone and email: 952-985-4421 / dolson@lakevillemn.gov Application Author: __Brian Hoese, Braun Intertec______________________________ Author’s Phone and email: 612-940-3270, bhoese@braunintertec.com_______________ ______________________________________________________________________________ FY 19-20 Cleanup - 2 I. SITE IDENTIFICATION AND HISTORY SITE INFORMATION 1. Name of Site: _Kingsley Place Senior Living__________________________ Site Address: _16890 Klamath Trail___________________________ City, County or Township: _Lakeville_________________Zip Code: 55044 Acreage of Site: Lot 2 Blk 1 2.49 existing and Lot 1 Blk 1 1.96 development parcel Sq. Ft. of Site: Lot 2 Blk 1 108,648 existing and Lot 1 Blk 1 85,296 development parcel Minnesota Legislative District # of the site _________A____56______B (Note: The Minnesota Legislature has a tool to look up legislative district numbers. You must have a precise address and know the zip code of the site. Go to: Who Represents Me tool and find the district where your project is located. 2. A. Current property owner(s): DSP Kingsley, LLC. (Charthouse Senior Living, LLC) When was the property purchased? 1/10/2019 (Membership Interest Purchase Agreement) For what amount? $4,098,213.00 (redemption of shares) $10,661,787.00 (capital contribution for construction) From whom was the property purchased? SilverCrest Charthouse, LLC and SKSMG Investments, LLC. B. Who will develop the site? Charthouse Senior Living LLC and SilverCrest Properties LLC. Will the developer own the property at any time? ☒ Yes ☐ No When was/will the property be purchased? 1/10/2019 For what amount? $4,098,213.00 (redemption of shares) $10,661,787.00 (capital contribution for construction) C. Are eminent domain proceedings necessary to acquire the property on which the cleanup and redevelopment will occur? NO If so, explain any difficulties anticipated in acquiring the site. D. Who will own the project site after development? _Charthouse Senior Living LLC__ When was or will the property be purchased? See 2. B. For what amount? See 2.B 3. Provide a legal description of the site. See Attachment 2 SITE VALUATION: ASSESSMENT OR APPRAISAL 4. If you are applying for cleanup grant funds you may submit either assessed value information or an appraisal. If you are applying for a revolving loan, you must submit an appraisal and may not submit assessor’s information in place of an appraisal. If your site is publicly-owned, you must still submit a value associated with the property. FY 19-20 Cleanup - 3 Attach an appraisal completed by a qualified independent appraiser licensed under chapter 82B using accepted appraisal methodology which shows the current market value (pre-cleanup) of the property, separately taking into account the effect of the contaminants on the market value. This value should include both the value of the land and, if applicable, any buildings on the Site. Along with the appraisal, please include the projected value after cleanup and development. See Attachment 3 - Current Appraised Value 11/27/2018, existing $27,550,000, development parcel $1,100,000 total $28,650,000 Projected Value 7/1/2020 assumed existing and completion of development $41,240,000 OR Attach documentation showing the assessed value of the property for the latest year, as determined by the local assessor, shown on the most recent valuation notice used under Minn. Stat. § 273.121. Along with the assessed value, please include the projected value after cleanup and development. Current Assessed Taxes existing $186,795 development parcel $4,130 total $190,925 Projected Taxes existing $188,336 completion of development $105,664 total $294,000 MAPS AND SITE FEATURES 5. See Attachment 4.Attach an accurate and legible site and location map showing locations of prominent and relevant site features such as buildings, retaining walls, etc. (NOTE: maps shall include property boundaries, a north arrow and bar scale). The map(s) should show the following: • The current condition of the site including labeled structures; • The proposed development of the site including labeled structures; and • The location(s) of contamination. Adding photographs is recommended. Additional photographs are included in Attachment 5 CURRENT AND FUTURE SITE USE 6. Zoning/Land Use: A. Current: Industrial__________ Commercial__X__________ Residential Mixed-use___________ Other (Specify): B. After Cleanup: Industrial ______Commercial_X_________ Residential Mixed-use___________ Other (Specify): 7. If a change in zoning in necessary, please provide a schedule of required approvals. Not Required 8. Current economic condition: Vacant lot_______ Developed site___X_____ Other : 9. How many buildings are currently on site? FY 19-20 Cleanup - 4 Industrial ____0____ How many are occupied? __0____ If vacant, for how long? Commercial ___1___ How many are occupied? ___1___ If vacant, for how long? Residential ___0____ How many are occupied? ___0___ If vacant, for how long? 10. Year building(s) was/were built: 2013________ 11. Please describe the condition of the buildings on the site. A senior living facility with underground parking was constructed in 2013 and has been maintained since construction. The building contains residential units, kitchens, lounge areas, dining areas, bathrooms and storage rooms. 12. Is demolition required for RAP implementation? ☐ Yes ☒ No Is demolition addressed in the RAP? ☐ Yes ☒ No 13. Please describe how site redevelopment will spur adjacent development. SITE HISTORY 14. Please attach a brief synopsis on the history and general background of this site. This includes but is not limited to former uses of the site, known and/or suspected causes of contamination, etc. Also describe the current condition of the site and include a description of existing structures and existing occupants of the site. See Attachment 6 II. CONTAMINATION 15. Is applicant enrolled in an MPCA Program? ☒ Yes ☐ No VIC Prog. I.D. BF0001259_ VIC Project Manager _Rebecca Ryser_ Phone: 651-757-2015__ PBP Prog. I.D. BF0001259_ PBP Proj. Manager Mark Koplitz____ Phone: 651-757-2502_ Other ____________________________________________________________________ 16. Current environmental consultant: Consultant Company Name: _Braun Intertec Corp.______________ Consultant Name _Brian J. Hoese, P.E.__________Phone:_612-940-3270__________ 17. What contaminants have been identified at the site? Fill soils and debris (including concrete, metal scraps, wood, asphalt, glass) were identified at depths up to 23-feet below the ground surface in the eastern portion of the Site. Soil samples collected from the debris laden soil identified concentrations of polycyclic aromatic hydrocarbons (PAHs) and petroleum (diesel range organics [DRO]) at concentrations greater than the applicable Minnesota Pollution Control Agency (MPCA) residential soil standards. Groundwater samples collected from temporary wells installed at the site identified low- FY 19-20 Cleanup - 5 level impacts of PAHs, dissolved barium and petroleum (DRO). Soil vapor sampling identified elevated concentrations of volatile organic compounds (VOCs) including benzene, naphthalene and tetrachloroethylene in areas of the Site that contained debris-laden fill. Elevated concentrations of methane including concentrations above the lower explosive limit (LEL) were detected at sampling locations within the debris-laden soil. 18. To qualify for cleanup funding, you must attach a copy of the RAP and written approval of your Response Action Plan from the Minnesota Pollution Control Agency. See Attachment 7 19. What is the likely source of contamination? The likely source of the contamination revolves around historic undocumented filling and waste disposals activities. Information gathered indicates there was an unpermitted dumpsite adjacent to the Site that may have extended onto the Site. Additionally, structures on the southeast corner of the Site may be associated with a gasoline station. 20. Summary of Contamination Information: A. Provide a concise description of the identified contamination and proposed RAP. The description should include the occurrence of the contamination (i.e., are there distinct areas of contamination or is contamination widely disseminated across the site? Is the contamination at the surface or at depth?) Results of soil sampling identified MPCA soil standard exceedances for benzo(a)pyrene equivalent (a carcinogenic PAH) and elevated DRO impacts in areas of the Site where debris was also present. Based on soil borings, test trenches and observations and field screening during interim soil response action for the building pad soil correction area completion in the fall of 2019, contaminated soil was identified only where debris-laden fill was found. Accordingly, the site conceptual model envisions that soil contamination is limited to areas of the site where debris is present. Samples of native soil underlying the debris-laden fill do not show elevated concentrations of contaminants. Response actions related to the soil include contaminated soil removal to meet MCPA- approved risk-based cleanup actions. Any contaminated soil that will remain after soil cleanup actions will be managed through installation of clean soil buffers, impervious covers, and controlled through activity and use limitations described in an environmental covenant recorded to the property deed. Contaminated soil excavated through the cleanup activities will be transported and disposed off-Site at a MN licensed industrial landfill. Soil vapor impacts at the site include various VOCs as well as methane. Benzene and naphthalene were detected at concentrations above the MPCA action levels that require the installation of an active vapor mitigation system. Methane within debris-laden fill was detected at elevated levels up to 332,000 parts per million by volume (ppmv) and exceed the FY 19-20 Cleanup - 6 lower explosive limit (LEL) for methane. The response actions to address the soil vapor contamination include installation of an active sub-slab depressurization system below the new building, and installation of vapor controls to mitigate soil vapor migration within or along site utilities. Remedial actions to address the low-level impacts to groundwater include sampling and monitoring of water generated during site construction activities. B. Complete the following table for soil contamination (be sure to include areas of contamination that have been identified at the site but will not be treated or removed as part of the approved RAP): General contaminant type (i.e., DRO, VOCs, metals, etc.) Total volume of identified contaminated soil (cyds) Total volume of identified contaminated soil to be remediated (cyds) Remedy RAP Cleanup Goal (i.e., residential SRVs, industrial SRVs, etc.) Urban Fill DRO/PAHs 32,000 CY 9,000 CY remains (23,000 CY already remediated) Excavation and Disposal at landfill Residential SRV C. Complete the following table for groundwater contamination. If no or limited groundwater investigation has been conducted, indicate this. Also indicate if a groundwater investigation was conducted but no contamination was detected. General contaminant type (i.e., DRO, VOCs, metals, etc. Affected aquifer (i.e., water table, deeper aquifers) Approximate dimensions of contaminant plume on- site. Specify if the plume extends off-site. Remedy Low level DRO Water table Does not extend off-Site Sample discharge from construction dewatering activites. FY 19-20 Cleanup - 7 D. List all compounds comprising the identified release in soil and the corresponding average and maximum concentration for each compound. Also include petroleum in the table. If distinct areas of contamination are present at the site, please describe separately. (NOTE: It is acceptable to provide an overview with estimated average and maximum concentrations if the amount of analytical data is overwhelming.) (Note: for PAHs, please provide individual compound concentrations or Benzo(a)pyrene equivalent concentrations for the carcinogenic PAH compounds.) Compound Tier I SRV (residential) Average Concentration Maximum Concentration DRO Not Established 173 mg/kg 561 mg/kg Benzo(a)pyrene equivalent 2.0 mg/kg 1.8 mg/kg 8.8 mg/kg E. Please do the same as in D. for groundwater. Compound HRL Average Concentration Maximum Concentration F. If groundwater at the site is contaminated, note the geologic makeup of the affected aquifer (sand/gravel, till, lacustrine clay, etc.), and the estimated average linear velocity (be sure to indicate how this number was determined). Till – input estimated L Velocity G. Please do the same as in E. for soil vapor. Compound ISV circle one (residential/commercial) 33X ISV Maximum Concentration Methane Not Established Not Established 322,000 µg/m3 PCE 3.4 µg/m3 110 µg/m3 2.8 µg/m3 Other non-petroleum VOCs varies varies All below respective 33xISVs Benzene 4.6 µg/m3 150 µg/m3 277 µg/m3 Naphthalene 9 µg/m3 310 µg/m3 683 µg/m3 H. Briefly describe possible exposure scenarios posed by identified contamination at the FY 19-20 Cleanup - 8 site (i.e., ingestion or human contact with contaminated soil, consumption of contaminated groundwater, ecological impacts, etc.), and nearby receptors that could be affected by contaminants migrating from site (high value wetland/creeks/rivers, etc.). Potential exposure pathways and receptors include contact with contaminated soil via the combined dermal, ingestion, and inhalation pathways. Inhalation of Soil Vapor through vapor intrusion into the Building I. If you are requesting costs for soil vapor mitigation, please submit documentation to justify the request. Vapor Mitigation is required through approval of the RAP. III. COST ANALYSIS: INVESTIGATION, CLEANUP AND PROJECT COST BUDGET 21. What is the total of all eligible investigation, cleanup and project costs for the site? $802,675____________ 22. How much grant funding are you requesting from DEED (cannot be more than 75% of the cost listed in the question above)? $601,868______________ 23. Please fill out the following budget table to identify the investigation costs, cleanup costs and project costs for the site as defined in the instruction section of this application. Attach additional sheets if necessary. BUDGET Eligible Activities for Investigation and RAP Development % Complete Date(s) Completed Total Cost Phase I ESA 100 Aug 2019 2,300 Investigation activities 100 Dec 2020 28,830 Response Action Plan (RAP) prep 100 Jan 2020 12,242 MPCA Review and Assurances 0 2,000 Methane/Vapor System Design 100 March 2020 4,300 A. Investigation Costs Subtotal 49,572 Eligible Activities for Soil and Groundwater Cleanup % Complete Date(s) Completed Total Cost Contaminated Soil Excavation and Segregation 0 64,988 Contaminated Soil Transportation 0 174,655 Contaminated Soil Disposal 0 281,073 Import for clean soil Buffer 0 99,118 Clay Separation layer and visual 0 12,555 FY 19-20 Cleanup - 9 indicator fabric Environmental Consultant observation, sampling and documentation 0 65,000 Install Methane/Vapor Mitigation System 0 52,714 MPCA Review and Assurances 0 3,000 B. Cleanup Costs Subtotal 753,103 C. Total A & B, This is your total cleanup cost* 802,675 Other Project Activities Necessary to Implement the RAP % Complete Date(s) Completed Total Cost D. Project Cost Subtotal E. Total A, B & D 802,675 24. What is the breakdown of sources for the above budget? Amount Source Status (Committed, pending decision date) $601,868_________ __DEED_______________ __PENDING___________________ $50,000________ Dakota County RIG_______ __Pending – Expected July 2020__ $150,807_______ _Developer Funds _______ ____Committed________________ _____________ _________________________ ____________________________ $802,675____________ TOTAL (should equal Total in line E above) *(12% of the above cleanup costs in line C must be paid with unrestricted funds, as defined on page V; Please indicate which source(s) will contribute to the unrestricted match.) 25. Is all of the project’s financing in place? (i.e., cleanup, construction, operations) Aside from grant request, YES. 26. If requesting project costs, please explain why these costs are necessary to remediate the contamination. None Requested 27. If any of the activities listed above are partially or fully completed, how were those activities financed? If work has occurred, please submit the invoices for which you will be seeking reimbursement. RAP Development Activities have been completed, Invoices for RAP Development FY 19-20 Cleanup - 10 tasks are attached as Attachment 8. 28. If you are requesting acquisition costs as match, and the amount for acquisition is different from the appraised or assessed value, please explain why there is a difference. None ADDITIONAL FUNDING SOURCES 29. Please indicate whether you have applied for or received all funds available to you from other funding sources. If you applied for or received funds, please list the amount(s) below. Source Requested or received all funds available (Y or N)? Amount(s) requested or received? Date(s) requested or received? Met Council Dakota County RIG Grant Requested $50,000 Planned for April 2020 PetroFund ACRRA MPCA Funding EPA Other (Specify) FY 19-20 Cleanup - 11 COST RECOVERY 30. Has the site been identified as a state or federal Superfund site? ☐ Yes ☒ No 31. Based on question 18, are there any existing or former businesses or landowners who may have caused or contributed to the contamination on the site? ☐ Yes ☒ No If yes, who? While it is evident that construction debris and contaminants are in place on the Site, the date such materials were placed on the site and the identity of the owner at the time the materials were placed is not known. While Dakota County records suggest that a gas station may have been located on the site at some point and city directories identify ACC Autobody as a location on the site in the late 1970s, no such business in Minnesota was located either through a google search or on the Minnesota Secretary of State’s website. Additional information from Dakota County refers to a portion of the Site as the “Old Lakeville Town Dump.” This dump, however, was not a permitted dump and no information about its ownership or establishment has been located. In addition, Charthouse has reviewed the title records associated with the Site as well as historical information in prior Phase I reports and has not identified any former landowners or others that may have caused or contributed to contamination on the site. What is the status of the business (in operation, sold, closed, moved)? ________________ 32. What efforts have been made to recover some or all of the cleanup costs from the party(ies)? Please see the response to question 31. There is a mechanism to recover costs from the responsible party if this grant receives funding. See Minn. Stat. § 116J.557 for further details. FINANCIAL INFORMATION 33. Please submit a copy of the applicant’s most current audit, or financial statement if an audit is not available. If this information is available electronically, you may submit the web address in lieu of a paper copy. Lakeville 2018 Executive Audit Summary: https://www.lakevillemn.gov/ArchiveCenter/ViewFile/Item/666 34. Is there a possibility that the site will be cleaned up without DEED money? ☒ Yes ☐ No Explain your answer to the question above. If DEED money is not provided, the project will have to overcome a financial hardship that would include seeking alternative funding from investors. This will be difficult, as contamination cleanup work conducting in fall of 2019 required using all contingency funds for the entire project, and also required going back to investors to request additional funding. Ultimately, if DEED chooses to not fund this project, increased rental rates, and /or reduction of site amenities may need to be considered to complete the project. FY 19-20 Cleanup - 12 IV. DEVELOPMENT PLAN AFTER CLEANUP 35.Describe in detail the Development Plan for the site after implementation of the RAP? (Number of buildings or housing units, square footage, etc.). Completion of development will result in 55 independent living rental apartments for those 55 years and older. Choices of one bedroom, one bedroom plus den, two bedroom and two bedroom plus den apartments are available. The development will also offer a Wellness Center featuring a warm water all-purpose swimming pool, strength and fitness equipment, classes, therapy, aerobics and personal training. There will also be a community club room for resident use and the new development will connect to the existing building through a 2nd floor skyway. 36. Have all of the required local/city approvals necessary for this project to proceed been obtained (planning commission, zoning, etc.) ☒ Yes ☐ No If not, what remains to be done and what is the process for completing the process of obtaining approvals? 37. What is the estimated cost of the Development (construction costs not including the cleanup costs)? $11,401,958 Of these how much is public? $0____________ private? $11,401,958 38. Is all of the financing in place for the final development of the site? ☒Yes ☐ No If yes, attach evidence that funds for the project have been secured. If not, what is the process to secure the funds and the timeline for securing them? See Attachment 9 FY 19-20 Cleanup - 13 39. If the site will be redeveloped for residential use, provide the following data: RENTAL: Total number of units 55 Monthly rental cost per unit $2,600 Number of affordable units 0 Level of affordability ______________ Construction cost per unit $227,000 OWNER OCCUPIED: Total number of units _0___ Purchase price per unit $______ Number of affordable units/homes ______ Level of affordability _______________ Construction cost per unit $______ 40. Are you applying for HUD financing? ☐ Yes ☒ No If yes, have you received an “Invitation to Apply” from HUD (attach a copy, if so). If not, where are you in the HUD financing process? PROPERTY TAXES 41. What are the property taxes on the site for the current year (prior to cleanup)? Existing $186,795, development parcel $4,130 total $190,925 42. What is the projected property tax on the site after redevelopment? Existing $188,336, completed development $105,664, total $294,000 A. How were the figures in Questions 41 and 42 determined? Estimates from appraisal and current taxes B. Who determined them? Appraisers and Dakota County FY 19-20 Cleanup - 14 JOB CREATION AND RETENTION 43. Project the number of new jobs created at the site after cleanup and development of the site. (Jobs that did not exist in Minnesota prior to development) NEW JOBS TABLE Position Title Total # of Full-Time Jobs Total # of Part- Time Jobs Expected Hiring Date Wellness Director 1 8/2020 Assistant Wellness Director 1 9/2020 Maintenance Tech 1 10/2020 Housekeeper 2 10/2020 2/2021 Waitstaff 2 10/2020 2/2021 Total New Jobs: _7________________FTEs 44. Project the number of retained jobs after cleanup and development of the site. (Jobs that existed either on-site or elsewhere in Minnesota prior to development, and will be relocating to the site) RETAINED JOBS TABLE Position Title Total # of Full-Time Jobs Total # of Part- Time Jobs Former Location of Retained Jobs Total Retained Jobs: _________________FTEs FY 19-20 Cleanup - 15 PROJECT SCHEDULE 45. Provide a detailed project schedule outlining the individual tasks and schedules of the overall project (for both cleanup and redevelopment of the site). Indicate on this form the expected month and year of individual tasks involved in the project. At a minimum, time lines should include outstanding approvals, response actions/cleanup activities, demolition, construction start and end date, and any other project activities. Please be advised that if awarded, this schedule will be incorporated into your future grant contract, so you should be as accurate and realistic as possible. Scheduled Tasks: Schedule Attached YEAR 2019 YEAR 2020 YEAR 2021 TASK Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Soil Remediation Install Vapor mitigation System Environmental Observation and Sampling Cleanup Start date 08/28/2019 – Interim Soil Response Action – Building Correction; 04/02/2020 Cleanup Completion date _10/01/20__Estimated__ Construction Completion date __10/31/2020_Estimated_______ 46. Please list any factors which would change or delay this schedule. COVID-19 related construction or materials supply FY 19-20 Cleanup - 16 V. THIRD PARTY/COMPANY COMMITMENT INFORMATION 47. If there is a commitment from a third party to develop on the site after cleanup, please complete the following: Third Party/Company Name: _SilverCrest Properties, LLC_________________ Contact Person: _Jack Collins_____________________________ Title: __Executive Vice President______________________________ Phone Number (include area code): _952-922-9549______________ 48. Do you have an executed development agreement? ☒Yes ☐ No 49. Please attach a commitment letter from the developer or other commitment documentation, such as a development agreement. (If you cannot obtain a commitment letter from the developer, please explain.) Development Agreement included as Attachment 10 VI. PAYMENT INFORMATION Most grant payments take place through electronic funds transfer (EFT). To ensure proper payment, a Vendor Number assigned by Minnesota Management and Budget is required. Vendor information is available at Vendor Resources. Financial Contact Person: Jerilyn Erickson, Finance Director Telephone Number (include area code): 952-985-4481 State of Minnesota Vendor Number (if known): _________________________________ If a Minnesota Vendor Number is not available, please supply: Federal Employer Identification Number: ___________________________ FY 19-20 Cleanup - 17 VII. RESOLUTIONS 50. Resolutions are required to be adopted prior to submission of the application package. The two required elements are: 1. A resolution from the governing body of the city where the project site is located, which approves the application. 2. A resolution from the applicant committing the local match and authorizing contract signatures. Note: Pursuant to Minn. Stat. § 412.201, Statutory Cities must authorize the Mayor and Clerk to execute all contracts. An applicant may either provide a separate resolution for each of the above, or combine them into a single resolution, as long as they include the same elements. Blank resolutions are included for your convenience. You may choose to reformat or combine them, but make sure to include all of the statements that appear in our examples. FY 19-20 Cleanup - 18 Conflict of Interest Disclosure Form This form gives grantees an opportunity to disclose any actual, potential or perceived conflicts of interest that may exist when receiving a grant. It is the grantee’s obligation to be familiar with the Office of Grants Management (OGM) Policy_08-01, Conflict of Interest Policy for State Grant-Making and to disclose any conflicts of interest accordingly. All grant applicants must complete and sign a conflict of interest disclosure form. X I or my grant organization do NOT have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest. If at any time after submission of this form, I or my grant organization discover any conflict of interest(s), I or my grant organization will disclose that conflict immediately to the appropriate agency or grant program personnel.  I or my grant organization have an ACTUAL, POTENTIAL, or PERCEIVED conflict of interest. (Please describe below): If at any time after submission of this form, I or my grant organization discover any additional conflict of interest(s), I or my grant organization will disclose that conflict immediately to the appropriate agency or grant program personnel. Printed name: Mayor Douglas P. Anderson Signature: Organization: City of Lakeville Date: April 6, 2020 RIG Project Application 1 REDEVELOPMENT INCENTIVE GRANT PROJECT APPLICATION I. GENERAL APPLICATION INFORMATION Project Name: Kingsley Place Applicant City: Lakeville Applicant Address: 20195 Holyoke Avenue, Lakeville MN 55044 Application/Project Contact: David Olson, Community & Economic Development Director Contact Email Address: dolson@lakevillemn.gov Phone Number: 952-985-4421 Authorized Official(s) for Execution of Contracts (name and title): David Olson, Community & Economic Development Director Amount of funding request: $50,000 Please list the specific Project components or activities that will be funded by the requested RIG: This grant request covers contamination cleanup for the Kingsley Place Site as described in the Kingsley Place Response Action Plan and Construction Contingency Plan prepared by Braun Intertec and approved by the MPCA. Specific components include construction of a methane/vapor mitigation system, and environmental sampling, documentation and related reporting in order to meet MPCA voluntary brownfield program requirements. II. REDEVELOPMENT PROJECT AND ACTIVITY INFORMATION 1. Existing Project Site Information • Project site address(es): 16890 Klamath Trail, Lakeville MN 55044 • Legal description of Project site (may be separate attachment): Lot 1 Block 1, Kingsley Shores Senior Living, Dakota County, Minnesota • Acreage of site: 4.45 Number of parcels: 1 • Is the Project site publicly or privately owned? Private • Current Project site owner(s): Charthouse Senior Living, LLC • Describe the city’s goals and need for the Project including anticipated businesses, housing units, and other proposed components. Please explain the public benefit of the Project. Kingsley Shores is a senior living facility in Lakeville with 101 units comprised of independent, assisted and memory care RIG Project Application 2 units. The Kingsley Place project is the expansion of this facility and will add 55 new senior units to the property, as well as amenities such as a wellness center and pool, which will be available to all residents in both buildings. One of Lakeville’s Community Values identified in the Envision Lakeville document is “A Home for All Ages and Stages of Life.” The addition of 55 new senior living units in the community helps to support the goal of “Lakeville will be a community where residents can live and age in place. We will accommodate individuals and families at all stages of life. We will strive to meet the housing, transportation, education, shopping, access to health care, and other needs of all demographic groups within the City.” • Has an end user committed to redevelopment of site? Yes If end user committed, attach documentation of commitment. • Provide a brief history of the site including previous uses, activities, prior or existing contamination, and other attempts at redevelopment. Kingsley Shores, the existing senior living facility, was built in 2013 and had no environmental issues during construction. Kingsley Place is an addition to the current facility, but is being developed by a new ownership group. A Phase I and Phase II were done as part of the project’s due diligence and no contamination was discovered until after construction had begun. Since that discovery, Charthouse Senior Living, LLC has worked very closely with Braun Intertec and the MN Pollution Control Agency to implement interim soil response actions and to create a Response Action Plan and address identified impacts and implement response actions designed to remediate the project area to risk-based cleanup criteria. 2. Eligible Activities. Please check all activities that apply, briefly describe the activity, and provide the dollar amount requested for the activity. Please see the “Redevelopment Incentive Grant Policy and Procedures Guide” for a description of the eligible activities Eligible Activity Description RIG Funding Requested ☐ Acquisition Click or tap here to enter text. $Click or tap here to enter text. ☐ Relocation Payments Click or tap here to enter text. $Click or tap here to enter text. ☐ Clearance and Demolition Click or tap here to enter text. $Click or tap here to enter text. ☐ Environmental Investigation Click or tap here to enter text. $Click or tap here to enter text. ☒ Environmental Remediation Methane/Vapor mitigation system installation, Environmental documentation of RAP implementation including observation, sampling and reporting. $50,000 ☐ Necessary Public Infrastructure Click or tap here to enter text. $Click or tap here to enter text. ☐ Geotechnical Soil Corrections Click or tap here to enter text. $Click or tap here to enter text. RIG Project Application 3 3. Redevelopment Project Information • Describe the Project including location map, photos, and current and projected site plans. Maps should include property boundaries, north arrow, and an accurate bar scale. The Site is located at 16890 Klamath Trail, Lakeville, MN. The overall project is includes construction of a new building with 55 senior units and amenities such as a wellness center and pool, which will be available to all residents in both buildings. • Describe the specific components or activities that are part of the Project. The PUD and SIPA was approved by the City of Lakeville in 2017. Agreements with the Architect, Developer and General Contractor were finalized in 2018 and construction began in August 1, 2019. Excavation began on August 1, 2019 and was shut down on August 6 due to the discovery of potential soil contamination. Braun Intertec and the MPCA were engaged and the project was enrolled in the VIC program through MPCA. Approval of an interim RAP was given by the MPCA at the end of August so the project and clean up could move forward. Clean up of the building footprint began along with additional testing. The final RAP was submitted in January 2020 and approved by the MPCA on February 6, 2020. The proposed environmental cleanup work involves removal of contaminated soil required for development of the site, site infrastructure, and installation of clean soil buffers and a methane/vapor mitigation system to ensure methane and contaminated soil vapor do not enter the building. • What is the end use of the Project site? Senior Living rental apartments for those 55 and older. • Is demolition of slum or blighted buildings or other structures an activity of the Project? No o If Yes, please describe. Click or tap here to enter text. • Describe how the Project will make more efficient use of the site. The development of Kingsley Place completes the Senior Living Campus. Meeting the growing demands for Independent Living apartments with the addition of 55 units while adding amenities to improve the lives of older adults to include a Wellness Center with a warm water all-purpose swimming pool, fitness and aerobics equipment and on site therapy. Memberships to the Wellness Center will be available to those 55+ from the community at large. The senior campus provides choices with a continuum of care to include, independent living, assisted living, assisted living plus and memory care. • After Redevelopment is complete, what portion of the Project site be publicly and privately owned?  Public: 0%  Private: 100% • Post-redevelopment Project site owner(s): Charthouse Senior Living LLC owns the property and SilverCrest Properties is the day to day management company. • Identify any other Project partners such as developers, consultants, and regulating/permitting agencies. SilverCrest Properties, Dougherty Investments, Braun Intertec, MPCA, and MN DEED RIG Project Application 4 4. Acquisition/Relocation Activities • If the project includes property acquisition, clearance and/or construction activities, describe how owners, tenants, and businesses will be temporarily or permanently relocated. N/A Attach relocation plan, if applicable. • When has/will the acquisition be completed? The acquisition is complete. 5. Redevelopment Project Environmental Information • Has an environmental assessment been completed for the Redevelopment Project? Yes • If so, what level of investigation was done as part of the Redevelopment Project? Phase I, Phase II and an MPCA-approved RAP. • Has the Redevelopment Project site been found or suspected to be contaminated? Yes • Does your Redevelopment Project include the cleanup of contaminated soils, hazardous waste or materials? Yes o If yes, please describe information on type of cleanup, what measures have been taken to address the contamination, consultant reports, and/or Response Action Plan. In accordance with the MPCA-approved Response Action Plan prepared by Braun Intertec, cleanup includes excavation and off-site disposal at a MN licensed disposal facility of contaminated soil, creating clean soil buffers above residual contaminated soil that will remain on-site, and installation and operation of a methane/vapor mitigation system. Upon completion of site development activities, a Response Action Plan Implementation report, a methane/vapor mitigation system operation and maintenance plan will be completed and submitted to the MPCA for approval. An environmental covenant describing activity and use limitations, and requiring long-term operation of the methane/vapor mitigation system will be prepared, approved by the MPCA, and recorded to the property deed in Dakota County. • Describe positive environmental impacts of the activities that are part of the Project. Cleanup activities are planned to remove contaminated soil that will be encountered during site development activities. Contaminated soil that will remain in-place will be managed in accordance with MPCA- approved risk-based cleanup criteria established to protect future users of the property. The methane/vapor mitigation system will be designed to mitigate methane/vapor intrusion from adversely affecting indoor air quality of the proposed building. RIG Project Application 5 6. Housing Affordability. Indicate the number of housing units planned in the Project, if any. Attach separate sheet if necessary. Total # of Units # of Owner Units # of Rental Units Proposed Rents/ Sales Prices Single Family Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Townhouse Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Apartments/Condominiums 55 0 55 Monthly rent will be from $2,200 to $3,000. Duplexes Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Other: Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. • Will there be any mechanisms to ensure long-term affordability? No If yes, please describe. Click or tap here to enter text. 7. Economic Benefits • Current appraised or assessed value of the Project site: Appraisal attached. • Projected appraised or assessed value of the site after Redevelopment: Appraisal attached. Attach the appraisal or assessor’s current and projected values. • What are the current property taxes for the Redevelopment Project site? $188,336 Pay Year 2020 for the existing building and $4,103 for the development parcel, for a total of $192,439. • What will the estimated property tax be after redevelopment? Estimated taxes for the existing building is $188,336 and with completion of the development parcel the taxes are estimated at $105,664 for a total of $294,000. Pay Year Click or tap here to enter text. • Project the number of new jobs on the Project site created after redevelopment. Total new jobs (FTEs only) = 7 • Number of new jobs with wages greater than $15.00 per hour = 4 • Project the number of jobs retained on the Project site after redevelopment. Total retained jobs (FTEs only) = N/A • Number of retained jobs with wages greater than $15.00 per hour = N/A RIG Project Application 6 8. Leverage. Itemize all other funding sources for the Project and the Activities identified as part of the Project. Source of Funds Amount Committed Pending MN DEED Contamination Cleanup Grant $601,868 Developer Funds (financial institution loans and cash) $14,760,000 Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Total: Click or tap here to enter text. Itemize Project expenses for each Activity. Be as detailed as possible. Project Activities/Expenses Costs Funding Source Soil Excavation and Off-Site Disposal $520,716 DEED, Developer Environmental Consultant $65,000 DEED, RIG, Developer Construction of Methane/Vapor Mitigation System $52,714 DEED, RIG, Developer Import soil for Clean Separation Soil and Clay Liner for storm water Pone $111,673 DEED, Developer MPCA Fees $3,000 RIG, Developer RAP Development Costs including Investigation Work $49,572 DEED, Developer Click or tap here to enter text. Click or tap here to enter text. Click or tap here to enter text. Total: $802,675 • List other sources of funds requested or considered but not obtained for the Project, and explain why they were not obtained, to the best of your knowledge. (The purpose of this question is to ensure all other funding sources have been exhausted.) The Developer has obtained funds from investors and loans to finance the project to date. RIG Project Application 7 9. Readiness To Proceed. • Please provide detailed timeline of the Project with all actions, phases, and anticipated dates for completion. Construction of the project began on August 1, 2019. After delays due to the identification of contaminated soils and clean up the project is now projected to be complete by October 1, 2020. Schedule is attached. • Please indicate whether any of the following entitlement or due diligence actions are required or have been completed for the Project:  Comprehensive plan amendment: ☐ Status: Click or tap here to enter text.  Environmental review: ☒ Status: Complete  Market or feasibility study: ☒ Status: Complete  Zoning amendments or variances: ☒ Status: Variance approved by the City of Lakeville related to the percentage of impervious area. • If the activity that is to receive RIG funding will not be completed in 12 months, please explain why. (NOTE: The RIG program requires all RIG-funded activities to be completed within a 12-month period) N/A. Project is projected to be completed by October 1, 2020. REQUIRED RESOLUTION PROVISIONS WHEREAS, the City of has identified a proposed project within the City that meets the Dakota County Community Development Agency (CDA) Redevelopment Incentive Grant program’s purposes and criteria; and WHEREAS, the City has established a Redevelopment Plan of which the proposed project is a component; and WHEREAS, the City has the capability and capacity to ensure the proposed project be completed and administered within the Redevelopment Incentive Grant program guidelines; and WHEREAS, the City has the legal authority to apply for financial assistance; and WHEREAS, the City is supportive of affordable housing and of the CDA’s mission, to improve the lives of Dakota County residents through affordable housing and community development. NOW THEREFORE BE IT RESOLVED that the City of approves the application for funding from the Dakota County CDA Redevelopment Incentive Grant program. BE IT FURTHER RESOLVED that upon approval of its application by the Dakota County CDA, the [insert authorized official’s name] , the [insert authorized official’s title] , is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project.