Agenda - Council - 11/09/2004 - Laserfiche WebLink

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ry oa - os Costs at sites scheduled for Superfund funding Please note: you should take great care in estimating your cleanup budget. Grants are given to sites that will be cleaned and developed. If you find additional costs that you did not anticipate in the application budget, you will still be responsible for cleaning and developing the site. You may submit a second application for your cost overruns, but there is no guarantee that you will receive a second grant. At the same time, your budget should not be inflated but rather should be based on careful investigation and planning. GRANT LOCAL MATCH REQUIREMENT: It is required that the applicant or other local source pay for one -quarter of the project cost as a local match to obtain a cleanup grant. Of this local match, the applicant must pay an amount equal to 12 percent of the cleanup costs from the municipality's general fund, a property tax levy or other unrestricted money available to the municipality. The rest of the local match may be paid with tax increments, regional, state or federal money available for the redevelopment of brownfields (including money from the Metropolitan Council's Tax Base Revitalization Account for metro applicants) or any other money available to the municipality. If the applicant establishes a TIF district or hazardous substance subdistrict on the site to pay for part of the local match requirement, the district or subdistrict is not subject to the state aid reductions under M.S. § 273.1399. In order to qualify for the exemption from the state aid reductions, the municipality must elect, by resolution, on or before the request for certification is filed, that all tax increments for the district or subdistrict will be used exclusively to pay (1) project costs for the site and (2) administrative costs for the district or subdistrict. The district or subdistrict must be decertified when an amount of tax increments equal to no more than three times the costs of implementing the response action plan for the site and the administrative costs for the district or subdistrict have been received, after deducting the amount of the state grant. GRANT AWARD CRITERIA: Due to environmental contamination that has affected many communities throughout Minnesota, a large number of applicants apply for the contamination cleanup grants. The law allows DEED to make grants for sites that meet all the statutory requirements and for sites that provide the highest return in public benefits for the public costs incurred. In order to evaluate the applications for public benefits with respect to the costs incurred, the law specifies priorities which DEED must consider. The legislative priorities listed below have been assigned maximum point values in order to systematically award grants in each cycle: 1) The potential increase in the property tax base of the local taxing jurisdictions relative to the fiscal needs of the jurisdictions, which will result from developments that will occur because of completion of the approved response actions. Maximum = 30 points. 2) The social value to the community that will result from cleaning up and redeveloping the site. Social value includes the project's time frame, the number of new jobs, the cleanup V