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2024.03.19 EDA Meeting PacketAGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, MARCH 19, 2024 IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from February 20, 2024 regular meeting 4. Consider a resolution amending the subgrant agreement for a Hennepin County Brownfields grant at 3401-3417 Douglas Dr. N. 5. Property status update * 6. Other business * 7. Adjournment * *Items for which no materials are included in the packet Page 1 of 3 Minutes of the Economic Development Authority of the City of Crystal Regular Meeting Council Chambers February 20, 2024 1. Call to Order President Onesirosan called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 7:31 p.m. 2. Roll Call Upon call of the roll, the following Commissioners were present: Jim Adams, John Budziszewski, David Cummings, Forest Eidbo (attending remotely in accordance with M.S. Section 13D.02), Traci Kamish, Therese Kiser and Taji Onesirosan. The following staff were present: Executive Director Adam Bell, Deputy Executive Director John Sutter and City Attorney Jason Hill. 3. Approval of Minutes Moved by Commissioner Adams (Kamish) to approve the minutes from the January 2, 2024 annual organizational meeting. Motion carried. 4. 2024 Work Program discussion Staff presented information about existing and potential work program elements including façade grants, artistic wraps for traffic signal cabinets and entry monument signs. After EDA discussion, staff will develop more focused criteria but wider geographic eligibility for façade grants, seek local artists’ proposals for cabinet wraps, and gather additional information about potential entry monuments as a possible 2025 project. 5. Property Status Update Staff provided updates on the following properties: 6827 56th Ave. N. (Bass Lake Road) - vacant Dairy Queen 3600 Douglas Dr. N. - Wine Thief & Ale Jail Page 2 of 3 6. Other Business There was no other business. 7. Adjournment Moved by Commissioner Kiser (Kamish) to adjourn the meeting. Motion carried. The meeting adjourned at 8:30 p.m. Page 3 of 3 These minutes of the February 20, 2024 meeting of the Crystal Economic Development Authority were approved by the Authority on ________________ ____, 20___. ______________________________ Taji Onesirosan, President ATTEST: ______________________________ Traci Kamish, Secretary 3401-3417 DOUGLAS DR N – AMEND SUB GRANT AGREEMENT PAGE 1 OF 2 __________________________________________________________________________ FROM: Dan Olson, City Planner __________________________________________________________________________ TO: Adam R. Bell, Executive Director (for March 19 EDA Meeting) DATE: March 13, 2024 RE: Consider a resolution amending the subgrant agreement for a Hennepin County Brownfields grant at 3401- 3417 Douglas Dr N. BACKGROUND On June 20, 2023 the EDA approved a grant agreement with Hennepin County and a subgrant agreement with Hampton Companies for a property cleanup at 3401-3417 Douglas Drive North, vacant lots owned by the EDA. Hampton purchased the properties not long after these grant agreements were approved and is now ready to begin construction of eight townhome units. Hampton is requesting that the subgrant agreement be amended to allow them to use a different engineering firm to oversee the implementation of the MPCA’s Response Action Plan (RAP) than the firm designated in the agreement. City staff is in agreement with this change. ATTACHMENTS: 1.First Amendment to the subgrant agreement 2.Resolution amending subgrant agreement EDA STAFF REPORT Amend Subgrant Agreement for 3401 – 3417 Douglas Drive North 3401-3417 DOUGLAS DR N – AMEND SUB GRANT AGREEMENT PAGE 2 OF 2 ACTION REQUESTED EDA approval of the attached resolution is requested. 2022 Aerial Photo: CR205-30-939378.v2 FIRST AMENDMENT TO THE SUBGRANT AGREEMENT WITH HAMPTON COMPANIES, LLC This First Amendment (“Amendment”) to the Subgrant Agreement (“Agreement”) is made an entered into effective this 19th day of March 2024 by and between the Economic Development Authority of the City of Crystal, a Minnesota economic development authority (the “Grantee”), and Hampton Companies, LLC, a limited liability company in the state of Minnesota (“Subgrantee”). Grantee and Subgrantee may hereinafter be referred to individually as a “party” and collectively as the “parties.” RECITALS A.The parties entered into the Agreement dated June 20, 2023 to set out the terms by which the Grantee would make grant funds the Grantee received from Hennepin County pursuant to a Environmental Response Grant Agreement to the Subgrantee for environmental cleanup of Subgrantee’s properties located at 3401 - 3417 Douglas Drive North in the City of Crystal. B.The Subgrantee had been working with the engineering firm Braun Intertec regarding the project and the Agreement identifies that firm as the engineer on the project. C.The Subgrantee has requested the Agreement be amended to allow it to select another engineering firm to assist it with the project. D.The Grantee is agreeable to the amendment, provided the City of Crystal staff approve of the new engineering firm. AMENDMENT In consideration of the on-going premises and the mutual promises set forth in the Agreement, the parties hereby agree to amend the Agreement as follows: (1)The parties agree the first paragraph of the Agreement is hereby amended by adding the double underlined material as follows: 1.Project. Subgrantee agrees to undertake and complete the Project in accordance with the requirements of the Grant Agreement, this Agreement, and all applicable federal, state, and local laws, rules, regulations, and ordinances. Subgrantee shall, at its own cost, hire the Engineer, or other engineering firm approved by Grantee’s staff, to oversee the Project to ensure it is conducted in accordance with the requirements of the Grant Agreement and applicable laws. Subgrantee is solely responsible for hiring such other contractors as may be needed to complete the Project in accordance with the Grant Agreement. (2)The parties agree the Agreement remains valid and that no other changes to it are intended by this Amendment. The parties have entered into this Amendment effective as of the date first written above. Attachment A CR205-30-939378.v2 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL _________________________________________ Taji Onesirosan, President _________________________________________ Adam R. Bell, Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ____________, 2024, by Taji Onesirosan and Adam R. Bell, the President and Executive Director, respectively, of the Economic Development Authority of the City of Crystal, a Minnesota economic development authority, on behalf of the authority. Notary Public NOTARY STAMP OR SEAL CR205-30-939378.v2 HAMPTON COMPANIES, LLC By: _________________________________ Its: _________________________________ STATE OF MINNESOTA ) ) ss COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this _____ day of March 2024, by Joel T Larson, the President of Hampton Companies, LLC, a limited liability company in the State of Minnesota on behalf of the company. Notary Public NOTARY STAMP OR SEAL THIS INSTRUMENT DRAFTED BY: Kennedy & Graven, Chartered (TJG) Fifth Street Towers, Suite 700 150 South Fifth Street Minneapolis, MN 55402 (612) 337-9300 ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2024 - 01___ RESOLUTION APPROVING A FIRST AMENDMENT TO A SUBGRANT AGREEMENT WITH HAMPTON COMPANIES, LLC WHEREAS, the Economic Development Authority of the City of Crystal (“EDA”) entered into a purchase agreement with Hampton Companies, LLC (“Hampton”) to purchase the Properties located at 3401 - 3417 Douglas Drive North (collectively, the “Properties”); and WHEREAS, the EDA also entered into a Subgrant Agreement (“Agreement”) with Hampton to allow them to utilize grant funds the EDA received from Hennepin County pursuant to an Environmental Response Fund Grant Agreement to clean contaminated soils from the Properties; and WHEREAS, the Agreement indicated Hampton would continue to work with the same engineering firm that performed the initial environmental reviews of the Properties, but Hampton has requested the Agreement be amended to allow it to select a different engineering firm to assist it in with the project; and WHEREAS, the attached First Amendment to the Subgrant Agreement with Hampton Companies, LLC (“Amendment”) was prepared to accommodate the request; and WHEREAS, the EDA is agreeable to the proposed Amendment, provided EDA/City staff approves of the engineering firm Hampton desires to hire for the project. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of the City of Crystal that it hereby approves the attached Amendment to the Agreement and authorizes the President and Executive Director to execute it on behalf of the EDA. Adopted this 19th day of March 2024. ____________________________________ Taji Onesirosan, President ____________________________________ Adam R. Bell, Executive Director Attachment B