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HomeMy WebLinkAbout98-01 - ADMIN Resolution - Economic Development Authority - 1998/03/16BOARD OF COMMISSIONERS OF THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. fa — i A RESOLUTION APPROVING A PRELIMINARY AGREEMENT AS TO THE GOLDEN PROPERTY AND EVALUATION OF PROPOSED RAILROAD ROUTES BY AND BETWEEN THE COUNTY OF HENNEPIN, THE CITY OF ST. LOUIS PARK AND THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: WHEREAS, the Hennepin County Regional Railroad Authority ("HCRRA") has acquired the 29th Street rail line through the City of Minneapolis; and WHEREAS, the closure of this route will cause the Twin City and Western Railroad to need an alternative route to St. Paul; and WHEREAS, the City has sponsored neighborhood informational meetings regarding the alternative routes proposed by the railroads; and WHEREAS, residents. of the Birchwood, Brookside, Creekside, Lenox, Elmwood, Sorenson, South Oak Hill, Brooklawn, Eliot View, Bronx Park and Lake Forest neighborhoods have evaluated the railroad issues which they feel need resolution and developed their own railroad alternatives; and WHEREAS, the Canadian Pacific Railroad has evaluated the alternatives of either constructing new trackage interconnections within St. Louis Park or use of rail trackage in the City of Minneapolis; and WHEREAS, the Canadian Pacific Railroad has indicated that it prefers to use the existing route RJL139509 SA285-7 through the City of Minneapolis; and WHEREAS, the Golden Property is located immediately south of T.H. 7 and immediately west of Hampshire Avenue South, has historically been designated by the United States Environmental Protection Agency ("EPA") as a priority site for environmental remediation and has historically been underutilized; WHEREAS, the Blackstone, Birchwood, Lennox, Bronx Park, Cedarhurst, Lake Forest and Sorenson neighborhoods would experience additional train traffic, causing additional noise and vibration, if an interconnection to a north/south line were constructed upon or adjacent to the Golden Property; and WHEREAS, the north/south trackage in St. Louis Park is in close proximity to existing residential areas with a minimal distance to existing homes which would cause visual pollution; and WHEREAS, the north/south trackage is in proximity to the St. Louis Park High School and several uncontrolled railroad crossings with residential streets causing additional danger to the residents and blowing of the train whistle; and WHEREAS, the City wishes to minimize the extent to which switching operations of railroad locomotives and cars are performed in or near residential neighborhoods; and WHEREAS, the Minnesota legislature enacted Minn. Stat. §383B.80, authorizing the Hennepin County Board of Commissioners to impose a mortgage registry and deed tax (in addition to the previously -existing taxes for these purposes) and to deposit the additional tax revenues in the County's Environmental Response Fund (created by Minn. Stat. § 383B.81); and WHEREAS, the County's Environmental Response Fund shall be administered by either the County Board of Commissioners or the County's Housing and Redevelopment Authority or the RJL139509 SA285-7 2 EDA 92-1 County's Regional Rail Authority; and WHEREAS, the Environmental Response Fund must be used for the following purposes: 1. Acquisition through purchase or condemnation of lands or properties which are polluted or contaminated with hazardous substances; 2. Paying the costs associated with indemnifying or holding harmless the entity taking title to lands or property from any liability arising out of the ownership, remediation, or use of the land or property; 3. Paying for the costs of remediating the acquired land or property; 4. Paying the costs associated with remediating lands or property which are polluted or contaminated with hazardous substances; or 5. Paying for the costs associated with improving the property for economic development, recreational, housing, transportation or rail traffic; WHEREAS, in expending funds from the Environmental Response Fund, the County shall seek matching funds from contamination clean-up funds administered by the Commissioners of Trade and Economic Development, the Metropolitan Council, the federal government, the private sector and any other source; and WHEREAS, the County may not expend funds from the Environmental Response Fund unless the governing body of the City in which the site is located approves the project; and WHEREAS, Minn. Stat. § 383B.81 provides that the first priority for use of the Environmental Response Fund is to clean up the Golden Property and to provide adequate right of way for a portion of the rail fine to replace the 29th Street line in the City of Minneapolis, including making rail improvements, changing the curve of the railroad track and eliminating a switching facility, and improving the land for economic development, but that no money from the Environmental Response Fund may be expended for remediating the Site until the Site has been acquired through purchase or condemnation; and RJL139509 SA285-7 3 WHEREAS, land or property acquired under Minn. Stat. § 383B.81 may be resold at fair market value provided that the proceeds from the sale of the land must be deposited in the Environmental Response Fund; and WHEREAS, § 38313.81 requires the State Commissioner of Transportation to collaborate with the County and the City by providing technical assistance and support and facilitating the railroad improvement and testing of the portion of the Site which is to be used for the railroad improvement; and WHEREAS, Laws of Minnesota, Chapter 231, § 23, subd. 1 provides that the Commissioner of the State Department of Trade and Economic Development and the Metropolitan Council shall designate the Golden Property to be an eligible site for receipt of contamination clean-up funds from the contaminated site clean-up and development account in the general fund and from the tax -base revitilization account in the metropolitan liveable communities fund and that grants from these accounts shall be available only upon confirmation from the commissioner of transportation that the County and the City have entered into an agreement as described in § 23, subd. 2 of the statute; and WHEREAS, § 23, subd. 2 requires that, to qualify for receipt of funds under § 23, subd. 1 of the Act, or from the Environmental Response Fund established in Minn. Stat. § 38313.81 for the Golden Property, the County and City must, after consultation and agreement with representatives of affected neighborhoods along the impacted and proposed rail lines, enter into an agreement with respect to the following: RJL139509 SA285-7 Acquisition through purchase or condemnation of the entire Golden Property, a portion of which must be used to provide adequate rights of way for transferring railroad traffic from the Canadian Pacific Railroad line from Louisiana Avenue in St. Louis Park easterly to T.H. 55/Hiawatha Avenue, commonly referred to as the 29th Street Depression, to the Canadian Pacific Railroad line from the 29th Street rail line 4 EDA 9g -I northerly to the Burlington Northem Connection, entirely within the City of St. Louis Park; 2. Responsibility for the cost of the railroad improvement, including changing the curve of the railroad track and eliminating a switching facility; 3. Obtaining by the County and the City of all applicable assurances, including, but not limited to, letters of assurance, certificates of completion, and no association determinations available from EPA and the Minnesota Pollution Control Agency ("MPCA"); 4. Respective responsibilities of the parties in remediating the acquired property and in assuming responsibility for any required matching funds; and 5. Entitlement to proceeds from any ultimate disposition of the property consistent with any statutory restrictions applicable to the source of the acquisition funds; and WHEREAS, § 23, subd. 3 of the Act provides (1) that the Commissioner of Transportation shall confirm that the City and the County have entered into an agreement; (2) that the Commissioner of Transportation shall collaborate with the City and County by providing technical assistance and support in facilitating the railroad improvement and testing at that portion of the Site to be used for the railroad improvement, and (3) the project shall proceed only if the City, County and Commissioner of Transportation have entered into an agreement regarding responsibility for safety and noise mitigation measures to be implemented or constructed on or adjacent to the Canadian Pacific Railroad line from the 29th Street Rail Line northerly to the Burlington Northern Connection, entirely within the City; and WHEREAS, the City Council has appointed a railroad task force which has reviewed various issues, scenarios and options relating to the proposed "north/south" connection of the Twin City Western Railway which has made various recommendations to the Council concerning the various RJL139509 SA285-7 G improvements and mitigation measures that have been identified by the task force as minimum standards for implementation of a north/south rail connection through the City, as well as additional conditions identified by the task force if the project proceeds; and WHEREAS, the City Council does not wish to facilitate the railroad connection unless it has entered into an agreement with the Commissioner of Transportation pursuant to § 23, subd. 3 of the Act which also provides for safety and noise mitigation measures adjacent to the Burlington Northern line easterly of the Burlington Northern Connection within the City; WHEREAS, the staffs of the City, EDA and County have prepared a preliminary agreement for consideration of the City Council, Board of Commissioners of the EDA, and the Board of Commissioners of the County under which: RJL139509 SA285-7 The EDA, City and County will cooperate in identifying and attempting to implement options for the redevelopment of the Site; EDA has proposed to take lead responsibilities for establishing economic development options for the redevelopment portion of the Site; The County will take lead responsibilities for establishing options for the improvement of the railroad connection, including the Railroad Portion and including obtaining technical and financial assistance from the State of Minnesota, Commissioner of Transportation to identify, design and implement safety and noise mitigative measures to reduce the negative impacts of the railroad improvements; City, County and EDA are to cooperate in selecting an environmental consultant, developing a concept agreement for use of the Site, identifying a portion of the Site which is most suitable for construction of the railroad connection and the portion which - is most suitable for economic development, and investigating and evaluating the need, I RJL139509 SA285-7 cost and economic feasibility of safety and noise mitigation measures in connection with proposed railroad realignment plans; County, City and EDA shall continue to solicit input from representatives of affected neighborhoods along the impacted and proposed rail lines prior to finalizing the development or remediation plan for the Site; County, City and EDA will cooperate in obtaining assurances from EPA and MPCA; City, EDA and County shall cooperate in the development of a remediation plan for the Site; The County shall reserve $300,000. from the Environmental Response Fund for expenditure by the City or EDA for purposes pursuant to the Agreement; County, City and EDA shall pursue matching funds from other public and private sources for the improvement of the Site; City, EDA and County shall attempt to obtain agreements acceptable to them with the State Commissioner of Transportation, Canadian Pacific Railroad and other railroads as appropriate regarding funding and implementation of safety and noise mitigation measures; City, EDA and County will attempt to obtain a purchaser for the Golden Property and the party to undertake its remediation; City, EDA and County will attempt to identify a plan for financing the acquisition remediation and improvement of the Site; 7 RJL139509 SA285-7 City or EDA will recommend to County for County's consent the type and extent of indemnity agreements which City and EDA propose to be funded by the Environmental Response Fund; City and EDA will recommend ultimate disposition of the redevelopment portion of the Site, subject to the County's approval; City, EDA and County agree that none of them will take title to the Railroad Portion unless they have entered into a written agreement among themselves and with MnDOT and the buyer of the Railroad Portion concerning: (i) The safety and noise mitigation measures which will be implemented on the Railroad Portion and how those measures will be funded; (ii) The improvements which will be undertaken by the Buyer of the Railroad Portion; and (iii) The method by which the buyer of the Railroad Portion and the City, EDA and County will be indemnified against environmental risks; and City, EDA and County will negotiate a final agreement relating to the acquisition, remediation and development of the Golden Property after consultation with affected neighborhoods and before becoming unconditionally obligated to acquire or remediate the properties; City, EDA and County shall have the tasks assigned to them in Exhibit C attached to the Agreement; Any parry may terminate the agreement upon thirty (3 0) days' notice; K LDA q $ -1 Following the investigative studies of the potential income from redevelopment, the cost of redevelopment and remediation of the Golden Property and related information, if City and EDA conclude that redevelopment of the Golden Property is not economically feasible, and if City and EDA request that they be permitted to use funds from the Environmental Response Fund for environmental remediation of another site in the City which is proposed by City and EDA, County agrees to give consideration to the request of City and EDA; and WHEREAS, City and EDA contemplate that the City Council shall delegate to EDA the duty to perform tasks identified to be performed by City under this Agreement. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE BOARD OF COMMISSIONERS OF THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY THAT: 1. The President and Executive Director are authorized to execute the Preliminary Agreement as to the Golden Property by and between the County of Hennepin, City of St. Louis Park and.the St. Louis Park Economic Development Authority; and 2. The Economic Development Authority shall act on behalf of the City of St. Louis Park pursuant to the provisions of the Preliminary Agreement. Approved and adopted by the Board of Commissioners of the St. Louis Park Economic RJL139509 SA285-7 .61 Reviewed for Administration: xecutive Director RJL139509 SA285-7 APPROVED AS TO FORM AND EXECUTION: By: N/A - EDA Attorney 10