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HomeMy WebLinkAbout2022-04-28 HRA Regular Meeting PacketAg enda E dina H ousing and R edevelopm ent Author ity City of E dina, Minnesota City Hall, Council Chambers Thursday, Apr il 28, 2022 7:30 AM Watch the m eeting on cable TV or at EdinaMN.gov/LiveMeeting s or Facebook.com /EdinaMN. To par ticipate in Com m unity Com m ent: Call 800-374-0221. E nter Conference ID 1046007. Give the operator your nam e, street address and telephone number. Press *1 on your telephone keypad when you would like to get in the queue to speak. A City sta7 m em ber will introduce you when it is your tur n. I.Call to Ord er II.Roll Call III.Pledge of Allegia n ce IV.Ap p roval of Meetin g Agen d a V.Com m unity Com m en t Du ring "Com m unity Com m en t," th e Edin a Housing and Redevelop m ent Au thority (HRA) will in vite resid ents to sh are new issues or con cern s tha t h aven't been con sid ered in th e p ast 30 da y s b y th e HRA or w h ich a ren't slated for fu ture consideration . Individ u als m u st lim it their com m ents to three m inutes. Th e Ch air m a y lim it the num ber of sp ea kers on th e sa m e issue in th e interest of tim e a n d topic. Gen era lly sp ea king, item s tha t are elsewhere on tod ay's a genda m a y not b e addressed d u ring Com m unity Com m en t. In d ividua ls sh ould not expect th e Ch air or Com m issioners to resp ond to th eir com m en ts toda y . Instead the Com m issioners m ight refer the m atter to sta. for consideration a t a fu ture m eeting. VI.Ad option of Con sen t Agenda All a genda item s listed on the consent a genda a re con sid ered rou tin e and will be en acted by one m otion. There will be no sepa rate d iscussion of such item s unless requested to be rem oved from the Con sen t Agenda by a Com m ission er of the HRA. In su ch ca ses the item w ill b e rem oved from th e Consent Agen d a and con sid ered im m ediately follow ing the a d option of th e Consent Agen d a. (Fa vorable rollcall vote of m a jority of Com m issioners p resent to approve.) A.Dra ft Min u tes of Regular Meeting Ap ril 7, 2022 B.Req u est for Purch ase: 5146 Eden Ave Environ m ental Services C.Hou sin g Reh abilita tion Program Sta tus Rep ort VII.Reports/Recom m enda tions: (Favora b le vote of m ajority of Com m ission ers p resent to approve excep t where n oted) A.MOTION TO CLOSE SE SSION: as perm itted by MS. 13D.05 su b d ivision 3 to discu ss th e p otentia l Sale of Rea l Prop erty located at 5146 Eden Avenue B.MOTION TO OPEN SESSION: Cha ir & Com m issioners of the E d ina HRA C.5146 Eden Avenue - Call for Public Hearin g to con sid er sa le of real estate for red evelopm en t p u rp oses D.Con sid era tion of Gap Fina n cin g for th e Fred II located at 4620 W est 77th Street VIII.HRA Com m issioners' Com m en ts IX.Executive Director's Com m ents X.Ad jou rn m ent Th e E d ina Housing a n d Redevelop m ent Au thority wa n ts all pa rticip ants to be com fortable b ein g pa rt of th e p u b lic p rocess. If y ou n ee d a ssista n ce in the w a y of h ea ring am pliBca tion, a n in terp reter, large-p rint docum en ts or som ethin g else, p lease ca ll 952-927-8861 72 hou rs in advance of the m eeting. Date: April 28, 2022 Agenda Item #: VI.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: Minutes F rom:Liz O ls on, Administrative S upport S pecialist Item Activity: Subject:Draft Minutes of R egular Meeting April 7, 2022 Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the regular minutes of April 7, 2022. I N TR O D U C TI O N: S ee attached meeting minutes of April 7, 2022. AT TAC HME N T S: Description 04-07-22 Draft Regular Minutes Page 1 MINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY APRIL 7, 2022 7:30 A.M. I. CALL TO ORDER Acting Chair Anderson called the meeting to order at 7:40 a.m. then explained the processes created for public comment. II. ROLLCALL Answering rollcall were Commissioners Jackson (arrived at 7:54 a.m.), Pierce, Staunton, and Acting Chair Anderson. Absent: Chair Hovland. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Staunton, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Pierce, Staunton, and Acting Chair Anderson Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED - AS PRESENTED Member Staunton made a motion, seconded by Member Pierce, approving the consent agenda as presented: VI.A. Approve Minutes of the Regular Meeting March 3, 2022 VI.B. Approve Payment of Claims for HRA Check Register dated March 2, 2022, totaling $1,171,806.15 VI.C. Approve 2021 Affordable Housing Compliance Report Rollcall: Ayes: Commissioners Pierce, Staunton, and Acting Chair Anderson Motion carried. VII. REPORTS/RECOMMENDATIONS VII.A. APPROVE 4040 WEST 70TH STREET - REDEVELOPMENT AGREEMENT FOR TAX INCREMENT FINANCING - APPROVED Affordable Housing Manager Hawkinson said this item pertained to the use of public financing to partially fund private redevelopment at 4040 West 70th Street and that special counsel at Dorsey and Whitney had prepared a complete Redevelopment Agreement based on the term sheet presented to the Edina HRA in March 2022 and to the City Council on April 19, 2022. She explained that if approved up to $2.8 million would be secured then noted the developer was waiting on the outcome of one source of funding from Hennepin County which would not be known until May but would be needed to develop the project. She explained the action would approve the redevelopment agreement describing the terms Minutes/HRA/April 7, 2022 Page 2 of the TIF financing and gap loan of up to $1,503,000 pay-go note and up to $1,336,901 in a deferred loan then spoke about the identified need for senior housing based on based on community input and research that included a demand for 1,600 senior units by 2030 that would include 300 units shallow subsidized and another 300 units deeply subsidized in some form of rental assistance. Ms. Hawkinson spoke about the current interest in the project that was occurring without any marketing and that of the 73 people on an interest list approximately 74% were current Edina residents. She shared about the development team and the Edina Housing Foundation’s involvement through the 99-year ground lease then shared more about the public benefit of this project. The Board asked questions and provided feedback. Chuck Armstrong, Director of Independent and Affordable Living for Ecumen, spoke about the tenant selection plan that included income verification and background investigation of applicants and compliance with all files and activities as required. Anne Stenfield, Ecumen, clarified about the supportive housing classification partnership with Simpson Housing to support six tenant units with rental assistance through supportive housing services to ensure housing stability at 30% AMI. Member Pierce made a motion, seconded by Member Jackson, to approve the term sheet and authorize staff to work with legal and financial advisors to prepare a binding redevelopment agreement based on the approved terms for 4040 West 70th Street. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. VII.B. ADOPT RESOLUTION NO. 2022-04; AUTHORIZING SALE OF LAND TO WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST - ADOPTED Ms. Hawkinson shared that on March 3 a Public Hearing was held regarding the sale of 425 Jefferson Avenue to West Hennepin Affordable Housing Land Trust. She stated the house would be fully renovated or if renovation was deemed infeasible the house would be demolished a replaced with a new one. She explained the land would be placed into a land trust and the house sold to an income eligible homeowner which would remain affordable for 99 years. She said the property at 425 Jefferson was acquired by the HRA in 2021 because it was a vacant nuisance property with the intention to acquire, address the exterior nuisance conditions, then sell for affordable housing. Brenda Lano-Wolke, West Hennepin Affordable Housing Land Trust, spoke about the current waiting list for these types of homes and how many wish to live in Edina because what the community had to offer including good transportation and schools. The Board asked questions and provided feedback. Member Staunton made a motion to adopt Resolution No. 2022-04 authorizing the sale of land to West Hennepin Affordable Housing Land Trust as presented. Seconded by Member Jackson. Minutes/HRA/April 7, 2022 Page 3 Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. VIII. HRA COMMISSIONERS’ COMMENTS – Received IX. EXECUTIVE DIRECTOR’S COMMENTS – Received IX.A. REDEVELOPMENT PROJECT UPDATE X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Staunton, to adjourn the meeting at 8:24 a.m. Roll call: Commissioners Jackson, Pierce, Staunton, and Acting Chair Anderson Motion carried. Respectfully submitted, Scott Neal, Executive Director Date: April 28, 2022 Agenda Item #: VI.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eques t F or P urchas e F rom:C had A. Millner, P.E., Director of Engineering Item Activity: Subject:R equest for P urc hase: 5146 Eden Ave Environmental S ervic es Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Approve the Request for P urchase at 5146 Eden Ave for E nvironmental S ervices with B raun I ntertec for $50,335. I N TR O D U C TI O N: T his item pertains to the potential sale and future redevelopment of vacant land owned by the E dina H R A at 5146 E den Avenue. T he structures previously located on the site were removed in 2013 and most of the environmental conditions were remediated at that time. I n order to redevelop the site and return it to productive use, additional environmental work will be necessary. S taff recommends that the contract with B raun I ntertec be approved. AT TAC HME N T S: Description Request for Purchase: 5146 Eden Ave Environmental Services Braun Intertec propos al Request for Purchase Requisition Number 1 CITY OF EDINA 4801 W 50th St., Edina, MN 55424 www.EdinaMN.gov | 952-927-8861 12200112 Department:Engineering Buyer:Chad Millner Date: 04/22/2022 Requisition Description:5146 Eden Ave Environmental Services Vendor:BRAUN INTERTEC CORPORATION Cost:$50,335.00 REPLACEMENT or NEW:NEW - NEW PURCHASE SOURCE:SERVIC K - SERVICE CONTRACT DESCRIPTION: This project will continue the environmental review of the 5146 Eden Ave property or the Old Public Works site. The following tasks are proposed: 1) the Geotechnical Evaluation, 2) the Environmental Investigation, 3) the Phase I Environmental Site Assessment, and 4) MPCA Enrollment and Regulatory Correspondence. BUDGET IMPACT: This project is funded from the HRA general administration budget. 2 COMMUNITY IMPACT: This project continues the necessary work to develop the property in a manner that meets community expectations. ENVIRONMENTAL IMPACT: NA Service Contract AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com April 21, 2022 Proposal QTB156786 Chad Millner, PE City of Edina 7450 Metro Boulevard Edina, MN 55439 Re: Proposal for Geotechnical Evaluation and Environmental Services Grandview District Redevelopment 5146 Eden Avenue Edina, Minnesota Dear Mr. Millner: Braun Intertec Corporation is pleased to present this proposal to perform a geotechnical evaluation and environmental services for the referenced Site in Edina, Minnesota. Project Information We understand this project will include the construction of a mixed-use development on the northwest corner of Eden and Acadia Avenues in Edina, Minnesota. The development will include a park on the northern portion of the Site, a restaurant on the central portion, and a multi-unit residential building on the southern portion of the Site. We note that this project is still in conceptual planning stages, thus, project components are subject to change. Structural details are also not available at this time; however, we understand the proposed restaurant building is anticipated have a basement and two above grade levels after site grades are raise approximately 10 to 12 feet. Retaining walls are also anticipated along the western property boundary. Background Information In preparation of this proposal, we have reviewed several sources of information obtained during previous projects that we have worked on both at this site and on sites in the vicinity of this project. It is apparent that this Site has previously undergone several stages of industrial and commercial development over the past 100 years. It is unknown at this time, what the extent of removal was for any previous structures or storage tanks on this site. We anticipate that relic foundations or debris could be present in areas of this Site from the previous development. It is also apparent that a substantial excavation was performed on the northern portion of the property to achieve present grades. We also anticipate that the subgrade at this Site will generally consist of granular soils, with various depths of existing mixed fill overlying native glacial deposits. Groundwater will likely be present at depths of about 40 feet or greater; however, perched water conditions could also be encountered. City of Edina Proposal QTB156786 April 21, 2022 Page 2 Scope of Services The following tasks are proposed to help us meet our project goals for the following tasks: 1) the Geotechnical Evaluation, 2) the Environmental Investigation, 3) the Phase I Environmental Site Assessment, and 4) MPCA Enrollment and Regulatory Correspondence. If unfavorable or unforeseen conditions are encountered at any point during the completion of tasks that lead us to recommend an expanded scope of services, we will contact you to discuss those conditions before resuming work. Please indicate which of these services you would like to pursue at this time. Task 1 – Geotechnical Evaluation Task 1 of this project would include performing a geotechnical evaluation for the planned park area at the north end of the Site, the restaurant building pad, and planned parking/driveway areas in the center portion of the Site. The multi-unit residential development on the southern end of the Site will not be part of our geotechnical evaluation. The following sections provide a summary of the proposed services to be included in this task. The purpose of this geotechnical evaluation is to characterize subsurface geologic conditions at select exploration locations, evaluate their impact and provide geotechnical recommendations for use in the design and construction planning for the proposed redevelopment. Site Access We understand the Site is currently used as a staging area for some nearby City of Edina construction projects and Site conditions are subject to change, however, we anticipate some areas of the Site will be accessible to our truck-mounted drill rig, but some may require an ATV-mounted drill rig. We assume there will be no cause for delays in accessing the exploration locations. We are not including debris or obstruction removal in our services. If these services are required, it will be performed by others prior to our arrival. Depending on access requirements, ground conditions, or potential utility conflicts, our field crew may alter the exploration locations from those proposed to facilitate accessibility. Our drilling activities may also impact the vegetation and may rut the surface to access boring locations. Restoration of vegetation and turf is not part of our scope of services. Staking We will stake prospective subsurface exploration locations and obtain surface elevations at those locations using GPS (Global Positioning System) technology. For purposes of linking the GPS data to an appropriate reference, we request that you provide CAD files indicating location/elevation references appropriate for this project or give us contact information for the consultant that might have such information. City of Edina Proposal QTB156786 April 21, 2022 Page 3 Utility Clearance Prior to drilling or excavating, we will contact Gopher State One Call and arrange for notification of the appropriate utility vendors to mark and clear the exploration locations of public underground utilities. You, or your authorized representatives, are responsible to notify us before we begin our work of the presence and location of any underground objects or private utilities that are not the responsibility of public agencies. In addition, our fees include a budget to retain a private locate company to mark private utilities that are not the responsibility of public agencies. We will not be liable for any damages resulting from unidentified or misidentified underground objects or utilities. Further, we reserve the right to stop work if underground objects or utilities are suspected or known to exist, but locations cannot be accurately determined. Soil Borings We propose to drill nine standard penetration test (SPT) borings for the project. Table 1 provides a summary of the proposed boring locations and depths. Note we are proposing deeper borings for flatwork and pavement areas due to the planned 10- to 20-foot grade raises anticipated. We will perform standard penetration tests at 2 1/2-foot vertical intervals to a depth of about 15 feet, and at 5-foot intervals at greater depths. Table 1. Summary of Proposed Borings Location Type Quantity Depth (feet) Building pad and retaining walls SPT 4 30 Flatwork, pavements, and utilities SPT 5 20 Total 9 220 If groundwater is encountered in the boreholes, the depth where it is observed will be recorded on the boring logs. If existing fill, organic materials or other structurally unfavorable soils are not penetrated above the intended boring termination depths, we will contact you to discuss the potential need for deeper borings. If warranted to extend the borings beyond their intended termination depths, we would charge an additional $30 per linear foot beyond the originally intended termination depth; however, we will contact you prior to incurring additional costs for increasing our total estimated drilled footage. City of Edina Proposal QTB156786 April 21, 2022 Page 4 MDH Notification We are planning for the borings to be 25 feet or deeper. Therefore, the Minnesota Statutes requires us to submit to the Minnesota Department of Health (MDH) by mail a “Sealing Notification Form”, and submit a Sealing Record after our completion of the borings. The Sealing Notification Form requires a signature of the current property owner, or their agent, and we need to submit this to the MDH prior to our mobilization to the site. We are attaching a copy of the Sealing Notification Form at the end of this proposal for your signature. Our proposal includes the fees for the MDH Sealing Notification and the Sealing Record. Borehole Abandonment We will backfill our exploration locations immediately after completing the drilling at each location. Minnesota Statutes require sealing temporary borings that are 15 feet deep or deeper. Based on our proposed subsurface characterization depths, we will seal about 220 linear feet of borehole with grout. The attached Project Proposal shows the fees associated with the sealing. Upon backfilling or sealing exploration locations, we will fill holes in pavements with a temporary patch. Sealing boreholes with grout will prevent us from disposing of auger boring cuttings in the completed boreholes. Unless you direct us otherwise, we intend to thin-spread the cuttings around the boreholes. If we cannot thin-spread cuttings, we will put them in a container left on site. We can provide off-site disposal of the cuttings for an additional fee. Over time, subsidence of borehole backfill may occur, requiring releveling of surface grades or replacing pavement patches. We are not assuming responsibility for re-leveling or re-patching after we complete our fieldwork. Sample Review and Laboratory Testing We will return recovered samples to our laboratory, where a geotechnical engineer will visually classify and log them. To help classify the materials encountered and estimate the engineering properties necessary to our analyses, we anticipate performing moisture content tests, mechanical analyses (through a #200 sieve only), Atterberg limits tests, and/or organic content test. We will adjust the actual number and type of tests based on the results of our borings. Geotechnical Reporting Data obtained from the borings and laboratory tests will be used to evaluate the subsurface profile and groundwater conditions, perform engineering analyses related to structure and pavement design and performance, and prepare a Geotechnical Evaluation Report including: ▪ A sketch showing the boring locations. ▪ Logs of the borings describing the materials encountered and presenting the results of our groundwater measurements and laboratory tests. ▪ A summary of the subsurface profile and groundwater conditions. ▪ Discussion identifying the site conditions that will impact design and construction. ▪ Discussion regarding the reuse of on-site materials during construction and the impact, if any, of groundwater on construction. City of Edina Proposal QTB156786 April 21, 2022 Page 5 ▪ Recommendations for preparing structure and pavement subgrades, and the selection, placement, and compaction of fill. ▪ Recommendations and considerations for use in the design and construction of foundations, floor slabs, below grade walls, site retaining walls, utilities, and pavements at this site. We will only submit an electronic copy of our report to you unless you request otherwise. Task 2 – Environmental Investigation The purpose of the environmental investigation at the Site is to supplement existing on-Site soil data to further evaluate soil which may be disturbed during future Site redevelopment and evaluate on-Site soil vapors to obtain MPCA liability assurances and determine if vapor mitigation will be necessary for the new Site structures. Soil Borings Our field staff personnel will sample and screen up to three geotechnical soil borings for environmental purposes. The selected borings will be located in the footprint of the proposed restaurant building and in areas where existing Site soils may be encountered during construction. Braun Intertec will also subcontract a licensed driller to install three additional soil borings on the southern portion of the site, which is not targeted by the geotechnical investigation. Field Screening Soil samples retrieved will be examined by field personnel for unusual staining, odors, and other apparent signs of contamination. In addition, the soil samples will be screened for the presence of organic vapors using a photoionization detector (PID). The PID will be equipped with a 10.6-electron-volt lamp and calibrated to an isobutylene standard. The PID will be used to perform direct measurement and a headspace method of field analysis, as recommended by the Minnesota Pollution Control Agency (MPCA) in Petroleum Remediation Program Guidance Document 4-04 (September 2008). Soil samples will be collected from the soil borings for laboratory analyses. Soil samples will be collected from depth intervals in the unsaturated zone where indications of contamination are observed in the field. If no indications of contamination are observed in the field, soil samples will be collected from depths most likely to be encountered during proposed redevelopment activities based on information provided by the client at the time this proposal was prepared. Analytical Testing The budget for this task assumes that a total of six soil samples will be submitted to Pace Analytical Laboratories in Minneapolis, Minnesota, and analyzed for a combination of the following parameters: ▪ Volatile organic compounds (VOCs) using United States Environmental Protection Agency (EPA) Method 8260. ▪ Polycyclic aromatic hydrocarbons (PAHs) using EPA Method 8270. ▪ Diesel range organics (DRO) using the Wisconsin Department of Natural Resources (WDNR) Method. ▪ Gasoline range organics (GRO) using the WDNR Method. ▪ Resource Conservation and Recovery Act (RCRA) metals using EPA Methods 6020 and 7471. City of Edina Proposal QTB156786 April 21, 2022 Page 6 Groundwater Sampling and Testing Groundwater is expected to be present at a depth of approximately 50 feet bgs and is therefore, not expected to be encountered during the proposed soil boring operations. However, if perched groundwater is encountered during drilling, a temporary well will be installed in the boring for the purpose of collecting a groundwater sample. Prior to sampling, static groundwater level in the well will be measured and recorded. A groundwater sample will be collected using a length of tubing equipped with a check ball valve. The groundwater sample will be placed directly into laboratory-supplied containers, preserved appropriately, and submitted to the laboratory for chemical analyses. The budget for this task assumes that one groundwater sample will be collected from the temporary well and submitted to Pace Analytical Laboratories in Minneapolis, Minnesota and analyzed for VOCs using EPA Method 8260. Soil Vapor Probes MPCA vapor guidance requires two seasonal soil vapor sampling events to evaluate soil vapor conditions at a site. Braun Intertec will subcontract a licensed driller to install temporary soil vapor probes on the Site during the MPCA-defined “heating“ season (November 1 – March 31) and “non-heating” season (April 1 – October 31). During each of two seasonal sampling events, 15 soil vapor probes will be advanced on the Site to a depth of approximately 5 feet bgs and then retracted to a depth of 3 feet bgs to expose soil pore space for sampling. New, inert tubing will be attached to the top of the downhole sampler and the sampling point and tubing will be purged with a hand pump to remove two volumes of air prior to sample collection. Following purging, organic vapor concentrations will be screened with a PID and the value recorded. The soil vapor samples will then be collected using laboratory-supplied negative pressure air- sample collection canisters (1- or 6-liter canisters) equipped with 200 milliliter per minute (mL/min) flow restrictors in accordance with the MPCA guidelines. Following sample collection, the temporary sampling point will be removed from the borehole and the borehole will be sealed in accordance with MDH guidelines. The soil vapor samples will be submitted to Pace Analytical Laboratories in Minneapolis, Minnesota and analyzed for VOCs using EPA Method TO-15 (30 total samples). Environmental Reporting Verbal results of the environmental investigation will be provided to you as they become available. Upon completion of the on-Site work and receipt of laboratory analytical results, a report will be prepared detailing the methods, results, and conclusions/recommendations. A draft copy of the report will be forwarded to you prior to report finalization. Only an electronic copy of the report will be submitted to you unless you request otherwise. City of Edina Proposal QTB156786 April 21, 2022 Page 7 Task 3 – Phase I Environmental Site Assessment The objective of a Phase I Environmental Site Assessment (ESA) is to evaluate the site for indications of recognized environmental conditions and to assist in satisfying All Appropriate Inquiries (AAI) criteria and requirements. The Phase I ESA will be conducted in general conformance with the scope and limitations of ASTM International Practice E 1527-13 (ASTM Practice E 1527-13) and 40 CFR Part 312. Site History Review The Phase I ESA will summarize reasonably ascertainable information pertaining to former and current land-use activities at the site. Our summary will include a review of aerial photographs, fire insurance atlases, city directories, property tax files, building records, topographic maps, and/or other historical documents to satisfy the historical-use requirements of the ASTM Practice E 1527-13 and 40 CFR Part 312. Regulatory Information Review We will request that a national regulatory information vendor, such as Environmental Data Resources, Inc., conduct a limited file evaluation of the site. If readily available and practically reviewable, the file evaluation will include, at a minimum, a review of the following databases within the corresponding approximate minimum search distance indicated in the ASTM Practice E 1527-13 and 40 CFR Part 312: ▪ Federal National Priorities List (NPL) ▪ Federal Comprehensive Environmental Response, Compensation, and Liability Information System (CERCLIS) ▪ Federal Institutional and Engineering Controls ▪ Federal Resource Conservation and Recovery Act (RCRA) Transport, Storage and Disposal (TSD) facilities ▪ Federal RCRA TSD facilities that have received RCRA corrective action activities ▪ Federal RCRA generators ▪ Federal Emergency Response Notification (ERNS) sites ▪ State NPL and CERCLIS equivalents ▪ State landfill and/or solid waste disposal sites ▪ State Voluntary cleanup programs ▪ State leaking underground and aboveground storage tank (LUST/LAST) sites ▪ State registered underground and aboveground storage tank (UST/AST) sites ▪ State Brownfield programs ▪ State Institutional and Engineering Controls ▪ State spills list We will review and summarize this information, and comment on known and potential environmental hazards that may impact the site. The scope of work does not include a detailed review of file information of identified facilities listed on the regulatory databases. However, if in our opinion a file review is warranted to evaluate the existence of a recognized environmental condition, historical recognized environmental condition, controlled recognized environmental condition, or a de minimis condition, we will contact you to discuss expanding the assessment to include a file review and the associated costs. City of Edina Proposal QTB156786 April 21, 2022 Page 8 Site Reconnaissance and Interviews The Phase I ESA will include a reconnaissance of the site. During the reconnaissance, we will note, if observed, the type of vegetation, exposed soils, open excavations or depressions, and site topography. Visible indications of underground and aboveground storage tanks, dumping, spills of petroleum and chemicals, and other obvious potential sources of contamination will be noted. In addition, we will conduct interviews with site representatives and governmental officials regarding past and current land- use activities. Phase I ESA Reporting A draft Phase I ESA report will be sent to you for review and comment. The Phase I ESA report will remain in draft status until we are notified by you to proceed with issuance of the final Phase I ESA reports. If we encounter indications of existing or potential sources of contamination during our assessment, we will notify you to discuss how the assessment may proceed. You may wish to discontinue the Phase I ESA or you may consider expanding the assessment to further evaluate the contamination sources that are identified. If contamination at the site is confirmed, the property owner may be required to notify proper governmental authorities. User-Provided Information As part of Phase I ESA, the “User” should provide available information to Braun Intertec as the Environmental Professional to help identify the possibility of recognized environmental conditions in connection with the Site. A “User” is the party seeking to use ASTM Practice E 1527-13 to complete an environmental site assessment and may include, without limitation, a potential purchaser, tenant or owner of the property, a lender, or a property manager. The attached User questionnaire should be completed in its entirety by the User(s) and returned with the signed authorization. If multiple Users are requesting reliance on the Phase I ESA, please provide us with a questionnaire completed by each of the appropriate entities. Assessment Limitations Upon completion of the Phase I ESA, Braun Intertec does not guarantee qualification for Landowner Liability Protections (LLP). Our proposed scope of work is consistent with “good commercial and customary practices” (as defined by ASTM Practice E 1527-13) conducted in an effort to evaluate recognized environmental conditions at a site in this area. The assessment will not include vapor encroachment screening as defined in ASTM Practice E2600-15, Standard Guide for Vapor Encroachment Screening on Property Involved in Real Estate Transactions. ASTM Practice E2600-15 is not a requirement or component of AAI, and its results are not determinative of whether hazardous substances from a release are or may be present at the property for the sake of AAI or ASTM E1527-13. However, vapors present or likely present from hazardous substances or petroleum products will be considered no differently than hazardous substances or petroleum products present or likely present as a result of a release to the environment. Therefore, while a vapor encroachment screening per the ASTM Practice E2600-15 standard will not be conducted as part of this proposal, the potential for impacts to the property from vapor migration that is a result of a release of hazardous substances and/or petroleum products to the environment will be considered when assessing for the presence of a recognized environmental condition as defined by ASTM E1527-13. City of Edina Proposal QTB156786 April 21, 2022 Page 9 Task 4 – MPCA Enrollment and Regulatory Correspondence We will provide the following regulatory correspondence services as part of this task: ▪ Assist City of Edina with preparing and submitting an application to enroll the Site in the MPCA Voluntary Investigation & Cleanup (VIC) and Petroleum Brownfields (PB) programs to allow for technical approvals and issuance of liability assurances. ▪ Prepare a Proposed Actions Letter and request for a No Association Determination (NAD) for submittal to the MPCA VIC Program. The NAD will specify that completion of the proposed redevelopment activities will not associate Client with non-petroleum related soil, groundwater, and/or soil vapor impacts identified at the Site. If applicable based on the results of soil vapor sampling during the environmental investigation, a Completion of Soil Vapor Assessment letter and/or No Action letter will also be requested following both soil vapor sampling events. ▪ Correspond with the MPCA VIC Program to facilitate issuance of the requested liability assurances. Fees We will furnish the services described in this proposal on a time and materials basis at the rates identified in Table 2 below. Please indicate which of these you would like to complete by checking the boxes to the left. Table 2. Proposed Fee Summary Services to Complete Task Fee ☐ Task 1 – Geotechnical Evaluation $12,550 ☐ Task 2 – Environmental Investigation 32,900 ☐ Task 3 – Phase I ESA 2,585 ☐ Task 4 – MPCA Enrollment and Regulatory Correspondence 2,300 ☐ Total of All Tasks $50,335 Schedule Geotechnical Evaluation We anticipate that field exploration for the soil borings can begin within approximately six weeks of written authorization and should be completed in approximately two days. Sample classification and laboratory testing will likely take an additional three to five days. We will pass along the soil boring results as they are obtained and received. We anticipate we can submit our final geotechnical evaluation report approximately two weeks after completion of the borings. City of Edina Proposal QTB156786 April 21, 2022 Page 10 Environmental Investigation Environmental field screening will be conducted during one of the geotechnical soil boring days. The non- heating season soil vapor probes and three additional soil borings will be completed within approximately three to four weeks of written authorization and will be completed in one day. The heating season soil vapor probes will be completed in November 2022 and will be completed in one day. Typical turnaround time on laboratory analysis is approximately eight business days for all samples. A draft report will be forwarded to you within 2 weeks after receipt of laboratory analytical results. Phase I ESA We anticipate the draft Phase I ESA report will be completed within four weeks from the date of your written authorization. The Phase I ESA report will remain in draft status until we are notified by you to proceed with issuance of the final Phase I ESA report. MPCA Enrollment and Regulatory Correspondence The MPCA Voluntary Brownfield Program application and request for NAD will be submitted to the MPCA upon completion of the Phase I ESA and first sampling event of the Environmental Investigation. We expect the MPCA to provide a NAD (conditional upon completion of the second seasonal sampling event) within 60 days of application submittal. If applicable based on the results of soil vapor sampling, a Completion of Soil Vapor Assessment letter and/or No Action letter will also be requested following both soil vapor sampling events. General Remarks Please note the Scope of Services for the proposed investigation, in conjunction with the existing data, is designed to further evaluate impacts at the Site. However, because there is a fixed number of sampling locations proposed, the Scope of Services proposed herein may not fully define the extent of contamination that may be present at the Site. If our proposed scope of services cannot be completed according to this schedule due to circumstances beyond our control, we may need to revise this proposal prior to completing the remaining tasks. Braun Intertec appreciates the opportunity to present this proposal to you. It is being sent in an electronic version only. A hard copy of the proposal will be supplied upon request. Please return a signed copy of the proposal in its entirety. The proposed fee is based on the scope of services described and the assumption that our services will be authorized within 30 days and that others will not delay us beyond our proposed schedule. City of Edina Proposal QTB156786 April 21, 2022 Page 11 We include the Braun Intertec General Conditions, which provide additional terms and are a part of our agreement. We appreciate the opportunity to provide professional services for you on this project. If you have questions regarding the contents of this proposal, please feel free to contact Jeff Casmer at 952.995.2314 or Imants Pone at 952.995.2665. Sincerely, BRAUN INTERTEC CORPORATION Jeffrey D. Casmer, PE Imants Pone Project Engineer Senior Scientist Bradley J. McCarter, PE Account Leader, Senior Engineer Attachments: Proposed Exploration Locations MDH Notification Form Client Information Request Form ASTM Practice E 1527-13 User Questionnaire General Conditions (1/1/2018) The proposal is accepted, and you are authorized to proceed. Authorizer’s Firm Authorizer’s Signature Authorizer’s Name (please print or type) Authorizer’s Title Date READING CENTER OF EDINASHOPPING CENTERNORMANDALE RD88448 8 8 8 8 8 8 88ST-102 ST-103 HA-1 HA-2 HA-3 ST-1 ST-2 ST-3 ST-4 ST-1 ST-2 ST-3 ST-4 ST-5 ST-6 ST-7 ST-8 F:\2022\QTB156786\CAD\QTB156786.dwg,Geo,4/8/2022 1:00:21 PMbraunintertec.com 952.995.2000 Minneapolis, MN 55438 11001 Hampshire Avenue S Project No: QTB156786 Drawn By: Date Drawn: Checked By: Last Modified:4/8/22 Drawing No: Project Information Drawing Information QTB156786 BJB 4/8/22 JC Grandview District Redevelopment City of Edina Edina, Minnesota Historic Boring LocationsN 0 SCALE:1" = 60' 60'30' DENOTES APPROXIMATE LOCATION OF PREVIOUSLY COMPLETED SOIL BORING DENOTES APPROXIMATE LOCATION OF PREVIOUSLY COMPLETED HAND AUGER SOIL BORING (BRAUN PROJECT NO. B2104068) (BRAUN PROJECT NO. B2104068) DENOTES APPROXIMATE LOCATION OF PREVIOUSLY COMPLETED SOIL BORING DENOTES APPROXIMATE LOCATION OF PREVIOUSLY COMPLETED SOIL BORING (BRAUN PROJECT NO. B1801332) (BRAUN PROJECT NO. BL0705712) 20' Proposed Soil Vapor Probe (5') Proposed Geotechnical Boring Proposed Environmental Soil Boring (8') 20' 20' 20' 20' 30'30'30' 30' AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com April 21, 2022 Proposal QTB156786 Mr. Bill Neuendorf Edina Housing & Redevelopment Authority Edina City Hall 4801 West 50th Street Edina, MN 55424 Re: Minnesota Department of Health Well Sealing Notification Form 5146 Eden Avenue Edina, Minnesota Dear Mr. Neuendorf: Please complete the “Well Owner” section only of the Minnesota Department of Health (MDH) Well Sealing Notification form below and return it to Braun Intertec along with the signed proposal. We will complete the remainder of the form and submit it to the MDH. NOTE: This form must be completed and returned to Braun Intertec prior to us scheduling the mobilization of our equipment and crews to the project site. Client Information Request Form for Phase I Environmental Site Assessments Project/Site Name: So that we may serve you better, please answer the following questions concerning the project Site. If a question does not apply to the Site, write “NA.” If you do not know the answer, write “Unknown.” Please return the completed form along with one copy of the signed authorization letter. Client Objectives A. What is your interest in the Site? Check all that apply.  Buying property  Refinancing  Selling property  Development  Redevelopment  Other: B. In addition to the User, are there any additional entities you would like included on the report for reliance purposes? C. A final PDF of the report will be provided. If hard copies are needed, how many? D. What is the desired completion date for this project? Date: E. Do you wish to receive a verbal report before the written report is received?  Yes  No F. Is confidentiality requested?  Yes  No If so, to whom is it limited? Site-Specific Information A. Where is the Site located? Address: Legal Description: B. Who is the current property owner? Name: Phone: C. Who will provide access to the property and/or who is the Site contact? Name: Phone: D. Has any previous environmental work been performed on the Site? Check all that apply.  No previous environmental work has been performed  Unknown  Geotechnical/Soil borings  Phase I Environmental Site Assessment  Phase II Environmental Site Assessment  Soil Vapor/Sub-slab Soil Vapor Investigation  Radon Investigation  Asbestos/Lead-based Paint Inspections  Hazardous Materials Testing  Other: If previous environmental work has been performed: When was it performed? By whom? Name: Phone: What were the results? Are copies of the report(s) available?  Yes  No  Unknown E. Is a current Site plan available? If yes, please provide.  Yes  No  Unknown F. How large is the property (total acreage)? acres G. How is the property currently used? Check all that apply.  Undeveloped  Light industrial  Agricultural  Retail  Residential  Office Building  Parking Lot  Warehouse  Commercial  Other: H. What is the proposed use of the property? I. Are there existing buildings on the property?  Yes  No  Unknown If yes: How many buildings? What year was each building originally built? What year(s) was/were any subsequent addition(s) completed for each building? What is the total square footage of each building and/or additions? Are you aware of any asbestos-containing building materials in any building? Give a brief description and use of each building. J. What was the property used for in the past? K. Are there currently or previously any aboveground or underground storage tanks located on the property? Aboveground storage tanks:  Yes  No  Unknown Underground storage tanks:  Yes  No  Unknown If yes: Where are they located? What are the sizes and contents of the tanks (e.g., 500-gallon diesel)? When were the tanks installed? Are there any maintenance records available for the tanks? Are the tanks currently being used? ☐ Yes ☐ No  Unknown If no: When were the tank(s) closed? Was the MPCA notified? L. Have hazardous chemicals or petroleum products ever been stored at the Site? Hazardous chemicals:  Yes  No  Unknown Petroleum products:  Yes  No  Unknown If yes, which ones? M. Has the property ever been used or is the property currently used for dumping or landfilling? N. Utilities Are there any wells or septic systems formerly or currently located at the Site? Wells:  Yes  No  Unknown Septic systems:  Yes  No  Unknown Is the Site connected to city sewer and water? Sewer:  Yes  No  Unknown Water:  Yes  No  Unknown What types of utilities service the Site? Check all that apply.  Unknown  Gas  Electric  Propane  Other: O. Are there any environmental concerns regarding the property or adjoining properties? P. How are the adjacent properties used? AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com ASTM Practice E 1527-13 User Questionnaire Site: 5146 Eden Avenue Edina, Minnesota Name: Date: Company: In order to qualify for one of the Landowner Liability Protections (LLPs) offered by the Small Business Liability Relief and Brownfields Revitalization Act of 2002 (the “Brownfields Amendment”, the User must conduct the following inquiries. The User should provide the following information to the environmental professional. Failure to conduct these inquiries could result in a determination that “all appropriate inquiries” is not complete. (1) Environmental cleanup liens that are filed or recorded against the property. The types of title reports that may disclose environmental liens include Preliminary Title Reports, Title Commitments, Condition of Title, and Title Abstracts. Chain-of-title reports will not normally disclose environmental liens. Did a search of recorded land title records (or judicial records where appropriate) identify any environmental cleanup liens filed or recorded against the property under federal, tribal, state or local law? (2) Activity and use limitations (AULs) that are in place on the property or that have been filed or recorded against the property. The types of title reports that may disclose AULs include Preliminary Title Reports, Title Commitments, Condition of Title, and Title Abstracts. Chain-of-title reports will not normally disclose AULs. Did a search of recorded land title records (or judicial records where appropriate) identify any AULs, such as engineering controls, land use restrictions, or institutional controls that are in place at the property and/or have been filed or recorded against the property under federal, tribal, state or local law? (3) Specialized knowledge or experience of the person seeking to qualify for the LLP. Do you have any specialized knowledge or experience related to the property or nearby properties? For example, are you involved in the same line of business as the current or former occupants of the property or an adjoining property so that you would have specialized knowledge of the chemicals and processes used by this type of business? (4) Relationship of the purchase price to the fair market value of the property if it were not contaminated. Does the purchase price being paid for this property reasonably reflect the fair market value of the property? If you conclude that there is a difference, have you considered whether the lower purchase price is because contamination is known or believed to be present at the property? (5) Commonly known or reasonably ascertainable information about the property. Are you aware of commonly known or reasonably ascertainable information about the property that would help the environmental professional to identify conditions indicative of releases or threatened releases? For example, (a) Do you know the past uses of the property? If so, please explain. (b) Do you know of specific chemicals that are present or once were present at the property? If so, please explain. (c) Do you know of spills or other chemical releases that have taken place at the property? If so, please explain. (d) Do you know of any environmental cleanups that have taken place at the property? If so, please explain. (6) The degree of obviousness of the presence or likely presence of contamination at the property, and the ability to detect the contamination by appropriate investigation. Based on your knowledge and experience related to the property, are there any obvious indicators that point to the presence or likely presence of contamination at the property? If so, please explain. General Conditions GC Page 1 of 2 Section 1: Agreement 1.1 Our agreement with you consists of these General Conditions and the accompanying written proposal or authorization (“Agreement”). This Agreement is the entire agreement between you and us. It supersedes prior agreements. It may be modified only in a writing signed by us, making specific reference to the provision modified. 1.2 The words “you,” “we,” “us,” and “our” include officers, employees, and subcontractors. 1.3 In the event you use a purchase order or other documentation to authorize our scope of work (“Services”), any conflicting or additional terms are not part of this Agreement. Directing us to start work prior to execution of this Agreement constitutes your acceptance. If, however, mutually acceptable terms cannot be established, we have the right to terminate this Agreement without liability to you or others, and you will compensate us for fees earned and expenses incurred up to the time of termination. Section 2: Our Responsibilities 2.1 We will provide Services specifically described in this Agreement. You agree that we are not responsible for services that are not expressly included in this Agreement. Unless otherwise agreed in writing, our findings, opinions, and recommendations will be provided to you in writing. You agree not to rely on oral findings, opinions, or recommendations without our written approval. 2.2 In performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us harmless from claims, damages, and expenses arising out of your direction. If during the one year period following completion of Services it is determined that the above standards have not been met and you have promptly notified us in writing of such failure, we will perform, at our cost, such corrective services as may be necessary, within the original scope in this Agreement, to remedy such deficiency. Remedies set forth in this section constitute your sole and exclusive recourse with respect to the performance or quality of Services. 2.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and further that site conditions may vary over distance or change over time. 2.4 Our duties do not include supervising or directing your representatives or contractors or commenting on, overseeing, or providing the means and methods of their services unless expressly set forth in this Agreement. We will not be responsible for the failure of your contractors, and the providing of Services will not relieve others of their responsibilities to you or to others. 2.5 We will provide a health and safety program for our employees, but we will not be responsible for contractor, owner, project, or site health or safety. 2.6 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 2.7 Unless a fixed fee is indicated, our price is an estimate of our project costs and expenses based on information available to us and our experience and knowledge. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. Actual costs may vary. You should allow a contingency in addition to estimated costs. Section 3: Your Responsibilities 3.1 You will provide us with prior environmental, geotechnical and other reports, specifications, plans, and information to which you have access about the site. You agree to provide us with all plans, changes in plans, and new information as to site conditions until we have completed Services. 3.2 You will provide access to the site. In the performance of Services some site damage is normal even when due care is exercised. We will use reasonable care to minimize damage to the site. We have not included the cost of restoration of damage in the estimated charges. 3.3 You agree to provide us, in a timely manner, with information that you have regarding buried objects at the site. We will not be responsible for locating buried objects at the site. You agree to hold us harmless, defend, and indemnify us from claims, damages, losses, penalties and expenses (including attorney fees) involving buried objects that were not properly marked or identified or of which you had knowledge but did not timely call to our attention or correctly show on the plans you or others furnished to us. 3.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials present on any work site or in a sample provided to us. You agree to provide us with information in your possession or control relating to such materials or samples. If we observe or suspect the presence of contaminants not anticipated in this Agreement, we may terminate Services without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 3.5 Neither this Agreement nor the providing of Services will operate to make us an owner, operator, generator, transporter, treater, storer, or a disposal facility within the meaning of the Resource Conservation Recovery Act, as amended, or within the meaning of any other law governing the handling, treatment, storage, or disposal of hazardous substances. You agree to hold us harmless, defend, and indemnify us from any damages, claims, damages, penalties or losses resulting from the storage, removal, hauling or disposal of such substances. 3.6 Monitoring wells are your property, and you are responsible for their permitting, maintenance, and abandonment unless expressly set forth otherwise in this Agreement. 3.7 You agree to make all disclosures required by law. In the event you do not own the project site, you acknowledge that it is your duty to inform the owner of the discovery or release of contaminants at the site. You agree to hold us harmless, defend, and indemnify us from claims, damages, penalties, or losses and expenses, including attorney fees, related to failures to make disclosures, disclosures made by us that are required by law, and from claims related to the informing or failure to inform the site owner of the discovery of contaminants. Section 4: Reports and Records 4.1 Unless you request otherwise, we will provide our report in an electronic format. 4.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property. We hereby grant you a license to use the reports and related information we provide only for the related project and for the purposes disclosed to us. You may not transfer our reports to others or use them for a purpose for which they were not prepared without our written approval. You agree to indemnify, defend, and hold us harmless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. 4.3 If you do not pay for Services in full as agreed, we may retain work not yet delivered to you and you agree to return to us all of our work that is in your possession or under your control. 4.4 Samples and field data remaining after tests are conducted and field and laboratory equipment that cannot be adequately cleansed of contaminants are and continue to be your property. They may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. 4.5 Electronic data, reports, photographs, samples, and other materials provided by you or others may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. GC Revised 1/1/2018 Page 2 of 2 Section 5: Compensation 5.1 You will pay for Services as stated in this Agreement. If such payment references our Schedule of Charges, the invoicing will be based upon the most current schedule. An estimated amount is not a firm figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. Our performance is subject to credit approval and payment of any specified retainer. 5.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices upon receipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1.5% per month, or at the maximum rate allowed by law. 5.3 If you direct us to invoice a third party, we may do so, but you agree to be responsible for our compensation unless the third party is creditworthy (in our sole opinion) and provides written acceptance of all terms of this Agreement. 5.4 Your obligation to pay for Services under this Agreement is not contingent on your ability to obtain financing, governmental or regulatory agency approval, permits, final adjudication of any lawsuit, your successful completion of any project, receipt of payment from a third party, or any other event. No retainage will be withheld. 5.5 If you do not pay us in accordance with this Agreement, you agree to reimburse all costs and expenses for collection of the moneys invoiced, including but not limited to attorney fees and staff time. 5.6 You agree to compensate us in accordance with our Schedule of Charges if we are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 5.7 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work changes, or if changed labor conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice, the schedule will be extended for each day of delay, and we will be compensated for costs and expenses incurred in accordance with our Schedule of Charges. 5.8 If you fail to pay us in accordance with this Agreement, we may consider the default a total breach of this Agreement and, at our option, terminate our duties without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 5.9 In consideration of our providing insurance to cover claims made by you, you hereby waive any right to offset fees otherwise due us. Section 6: Disputes, Damage, and Risk Allocation 6.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party’s representative(s) empowered to resolve the dispute. Before either of us commences an action against the other, disputes (except collections) will be submitted to mediation. 6.2 Notwithstanding anything to the contrary in this Agreement, neither party hereto shall be responsible or held liable to the other for punitive, indirect, incidental, or consequential damages, or liability for loss of use, loss of business opportunity, loss of profit or revenue, loss of product or output, or business interruption. 6.3 You and we agree that any action in relation to an alleged breach of our standard of care or this Agreement shall be commenced within one year of the date of the breach or of the date of substantial completion of Services, whichever is earlier, without regard to the date the breach is discovered. Any action not brought within that one year time period shall be barred, without regard to any other limitations period set forth by law or statute. We will not be liable unless you have notified us within 30 days of the date of such breach and unless you have given us an opportunity to investigate and to recommend ways of mitigating damages. You agree not to make a claim against us unless you have provided us at least 30 days prior to the institution of any legal proceeding against us with a written certificate executed by an appropriately licensed professional specifying and certifying each and every act or omission that you contend constitutes a violation of the standard of care governing our professional services. Should you fail to meet the conditions above, you agree to fully release us from any liability for such allegation. 6.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that our aggregate liability for all claims will not exceed the fee paid for Services or $50,000, whichever is greater. If you are unwilling to accept this allocation of risk, we will increase our aggregate liability to $100,000 provided that, within 10 days of the date of this Agreement, you provide payment in an amount that will increase our fees by 10%, but not less than $500, to compensate us for the greater risk undertaken. This increased fee is not the purchase of insurance. 6.5 You agree to indemnify us from all liability to others in excess of the risk allocation stated herein and to insure this obligation. In addition, all indemnities and limitations of liability set forth in this Agreement apply however the same may arise, whether in contract, tort, statute, equity or other theory of law, including, but not limited to, the breach of any legal duty or the fault, negligence, or strict liability of either party. 6.6 This Agreement shall be governed, construed, and enforced in accordance with the laws of the state in which our servicing office is located, without regard to its conflict of laws rules. The laws of the state of our servicing office will govern all disputes, and all claims shall be heard in the state or federal courts for that state. Each of us waives trial by jury. 6.7 No officer or employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not to make a claim against individual officers or employees. Section 7: General Indemnification 7.1 We will indemnify and hold you harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by our negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally responsible. You will indemnify and hold us harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by your negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 7.2 To the extent it may be necessary to indemnify either of us under Section 7.1, you and we expressly waive, in favor of the other only, any immunity or exemption from liability that exists under any worker compensation law. 7.3 You agree to indemnify us against losses and costs arising out of claims of patent or copyright infringement as to any process or system that is specified or selected by you or by others on your behalf. Section 8: Miscellaneous Provisions 8.1 We will provide a certificate of insurance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by our negligence. 8.2 You and we, for ourselves and our insurers, waive all claims and rights of subrogation for losses arising out of causes of loss covered by our respective insurance policies. 8.3 Neither of us will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project claims to any third person, whether directly or as collateral or otherwise. 8.4 This Agreement may be terminated early only in writing. You will compensate us for fees earned for performance completed and expenses incurred up to the time of termination. 8.5 If any provision of this Agreement is held invalid or unenforceable, then such provision will be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect. 8.6 No waiver of any right or privilege of either party will occur upon such party's failure to insist on performance of any term, condition, or instruction, or failure to exercise any right or privilege or its waiver of any breach. Date: April 28, 2022 Agenda Item #: VI.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: Advisory C ommunic ation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:Housing R ehabilitation P rogram S tatus R eport Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action needed. I N TR O D U C TI O N: I n April 2021 the H R A approved funding for a home rehabilitation program. One year later there are 31 households borrowing a total of $711,485.56. T he program is expected to be fully subscribed by the end of May 2022. AT TAC HME N T S: Description Staff Report April 28, 2022 Chair and Commissioners of the Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Housing Rehabilitation Program Status Report Information / Background: On April 8, 2021 the HRA approved $250,000 for a Housing Rehabilitation program to be administered by the Center for Energy and Environment (CEE). An additional $750,000 was applied to this program on August 26, 2021. The program guidelines are as follows:  Loan Amount: $2,000-$30,000  Loan Terms: 2% simple, non-compounding interest, deferred for 30-years  Income limit: 125% of AMI  House value limit: $450,000  Loan to Value Ratio: 110%  Loan Administrator: Center for Energy and the Environment The housing rehabilitation program augments the program offered by Hennepin County. The latter is supported through a portion of the City’s allocation of Community Development Block Grant Funds (CDBG). The city based program in partnership with the CEE has broader goals: 1) Preserve modest homes, 2) promote sustainability, 3) provide a financing option that is fully deferred to save on monthly cash flow. The program includes an option for principal and interest forgiveness. This option is available if the house is sold to the HRA and either placed into a Land Trust through West Hennepin Affordable Housing Land Trust, added to the Metro HRA affordable housing program, or preserved for long term affordability through another future mechanism. STAFF REPORT Page 2 Program Update One year into this program, there are 31 borrowers representing 17 neighborhoods. As of March 31, 2022 $711,485.56 has been borrowed. It is anticipated that the program will be fully subscribed by the end of May 2022. Outcome One goal of this program was to preserve an aging housing stock. As CEE first inspects for healthy, safety and code concerns, and then to improve energy efficiency – that goal is being met for these 31 homes. A secondary goal was to preserve for long-term affordability by forgiving the loan if the house is eventually sold to the HRA our one of our housing partners. The outcome for that goal has yet to be determined. Date: April 28, 2022 Agenda Item #: VI I.A. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:MO T I O N TO C LO S E S ES S I O N: as permitted by MS . 13D.05 subdivision 3 to disc uss the potential S ale of R eal P roperty located at 5146 Eden Avenue Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: No action required; for discussion purposes only. I N TR O D U C TI O N: T his item pertains to the potential sale of portions of the vacant property to be used as a senior housing cooperative and restaurant with indoor and outdoor seating. S taff will update the H R A Board on the negotiations with U nited P roperties and J ester C oncepts. Due to the sensitive nature of real estate negotiations, this discussion will take place in a closed section as permitted by M innesota Statute 13D .05 subdivision 3. N o action will take place during this closed meeting. AT TAC HME N T S: Description Grandview Yard Sketch Plan Submittal GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN RESTAURANT GRANDVIEW YARD PARKING RAMP SENIOR CO-OP JERRY’S FOODS AVIDOR LIVING EXISTING COMMERCIAL EXISTING COMMERCIAL EDEN 100 OFFICE BUILDING HILLTOP RESTAURANT GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN GRANDVIEW YARD TERRACE SEATING PED ROUTE EVENTS LAWN OUTDOOR DINING AMENITY DECK AMENITY COURTYARD EX SECTION ARCADIA AVE SECTION CO-OP ENTRY PLAZA RESTAURANT SENIOR CO-OP PARKING PARKING EXISTING RAILROAD SERVICE AREA RESTAURANT VALET PUBLIC RESTROOM PED BRIDGE SHORT TERM PARKING PARKING ACCESS PARKING ACCESS GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN SENIOR CO-OP PROPERTY RESTAURANT PROPERTY GRANDVIEW YARD PARK GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN PED BRIDGE TERRACING PARKING GRANDVIEW YARD DRIVE AISLE CO-OP ENTRY PLAZA PUBLIC RESTROOM RESTAURANT SENIOR CO-OP AVIDOR LIVING (BEHIND)JERRY’S 5101 OFFICE TOWER GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN GRANDVIEW YARDRESTAURANT SENIOR CO-OP SHORT TERM PARKING AMENITY DECK PARKING ACCESS EXISTING RAILROAD PED BRIDGE GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN GRANDVIEW YARD TERRACE SEATING SLOPED LAWN PED ROUTE EVENT LAWN OUTDOOR DINING RESTAURANT PARKING EXISTING RAILROAD SERVICE AREA RESTAURANT VALET LANDSCAPE BUFFER LANDSCAPE BUFFER LANDSCAPE BUFFER PUBLIC RESTROOM PED BRIDGE GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN GRANDVIEW YARD PED ROUTE EVENT LAWN OUTDOOR DINING PARKING ACCESS CO-OP ENTRY PLAZA RESTAURANT PARKING EXISTING RAILROAD PUBLIC RESTROOM PED BRIDGE SENIOR CO-OP GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN GRANDVIEW YARD TERRACE SEATING SLOPED LAWN PED ROUTE EVENT LAWN OUTDOOR DINING RESTAURANT PARKING SERVICE AREA RESTAURANT VALET LANDSCAPE BUFFER LANDSCAPE BUFFER PED BRIDGE GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN GRANDVIEW YARD PED ROUTEEVENT LAWN PED CONNECTION LANDSCAPE BUFFER OUTDOOR DINING RESTAURANT EXISTING RAILROAD PUBLIC RESTROOM PED BRIDGE SENIOR CO-OP GRANDVIEW YARD - CONCEPT JANUARY 2022EDINA, MN Date: April 28, 2022 Agenda Item #: VI I.B. To:C hair & C ommis s ioners of the Edina HR A Item Type: O ther F rom: Item Activity: Subject:MO T I O N TO O P EN S ES S I O N: C hair & C ommis s ioners of the Edina HR A Action Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: M otion to move to O pen S ession. I N TR O D U C TI O N: Date: April 28, 2022 Agenda Item #: VI I.C . To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:Bill Neuendorf, Economic Development Manager Item Activity: Subject:5146 Eden Avenue - C all for P ublic Hearing to cons ider sale of real es tate for redevelopment purposes Ac tion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: Authorize staff to schedule a P ublic H earing to consider the sale of real estate at 5146 Eden Avenue for redevelopment purposes. I N TR O D U C TI O N: T he E dina H R A has discussed the potential sale of real estate at 5146 E den Avenue on multiple locations. Letters of I ntent have been received from J ester C oncepts to construct a new restaurant on the middle portion of the site and from U nited P roperties to develop a new housing cooperative on the southern portion of the site. T he northern most portion would be redeveloped as a public park. A public hearing is recommended to be scheduled to better inform the E dina H R A as they consider entering into sales contracts to redevelop the vacant site. Date: April 28, 2022 Agenda Item #: VI I.D. To:C hair & C ommis s ioners of the Edina HR A Item Type: R eport / R ecommendation F rom:S tephanie Hawkinson, Affordable Housing Development Manager Item Activity: Subject:C onsideration of G ap F inanc ing for the F red I I located at 4620 West 77th S treet Disc ussion Edina Housing and Redevelopment Authority Established 1974 C ITY O F E D IN A HO US I NG & R EDEVELO P MENT AUT HO R I T Y 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED: S eeking preliminary approval to provide gap financing for the development of the F red I I . I N TR O D U C TI O N: T he Fred P hase I I is located at 4620 West 77th Street, on the south side of Fred R ichards P ark. T he development is proposed by Solhem D evelopment who is seeking up to $9,350,000 in gap financing for a 276 unit multifamily development. Ten-percent of the units (28) will serve households with incomes at or below 50% of AM I. T he remaining 90% of the units will serve households with incomes between 70% and 100% of AM I. T he development will comply with the new sustainability standards and includes creating an entrance off of West 77th Street to the Fred R ichards P ark. S taff is seeking feedback on the potential provision of financing to support the development and the suggested sources. Staff is also seeking authorization to engage H R A’s legal and financial advisors to explore the needs, costs and benefits of this potential redevelopment project. AT TAC HME N T S: Description Staff Report April 28, 2022 Chair and Commissioners of the Edina HRA Stephanie Hawkinson, Affordable Housing Development Manager Consideration of Gap Financing for the Fred II located at 4620 West 77th Street Information / Background: The Solhem Companies has identified a gap of up to $9,450,000 in private financing the development of 276 housing units at 4920 West 77th Street (the “Site”) called the Fred II. Financial assistance is being requested due to the extraordinary soil conditions caused by a high-water table, necessitating a public access to the Fred Richards Park, and costs associated with recent passage of Sustainability Guidelines. Further, this is not intended to be a luxury building, but rather 100% of the units are planned to be affordable to the general workforce: ten percent (10%) of units will be affordable to households with incomes at or below 50% of the Area Median Income (AMI), with the remaining 90% of units affordable to households with incomes between 70% and 100% of AMI. Current Conditions The Site currently hosts a cracked asphalt parking lot and an empty office building. The Site is within the Greater Southdale Area and has excellent proximity to schools, parks, trails, transit, access to employment, and access to good and services. The site is underdeveloped given the proximity of superior amenities. Adherence to City Policies  Southdale Design Experience Guidelines. The developer has received input via the City’s “sketch plan” review process. This input will be taken into consideration as the developer prepares a full proposal to rezone and redevelop the site.  New Multifamily Affordable Housing Policy: Fred II will provide 10% of the units (28 units) affordable to households with incomes at or below 50% of AMI. The remaining units will serve households with incomes that are not currently served by new multifamily market rate developments. STAFF REPORT Page 2  Sustainability Guidelines: The new project will nearly double the existing permeable green space on the site, from 22% to approximately 42%. This will benefit the surrounding flood plain. New native vegetation, plantings, and trail-ways will allow for a more resilient urban environment while accommodating much greater human density and natural diversity. An existing grove of mature trees in the northwestern corner of the site will be preserved. Organics recycling and regular recycling will be available to all residents. Bike parking and EV charging stalls are part of the existing design. The developer will work with Xcel’s Energy Design Assistance Program to foster the most cost- effective and energy minimizing design for long term building operations. Developer’s Summary of Extraordinary Cost Drivers The Developer has identified the following site and project expenses specific to redeveloping this Site that contribute to the gap in private financing: STAFF REPORT Page 3 Support of Fred Richards Park Master Plan The Fred II’s site plan includes a road that provides access from West 77th Street to the Fred Richards Park. As this access to the south side of the park is on what is now privately held land, the development provides an opportunity to fulfill this vision. The Fred Richards Park Master Plan, as presented by drawings prepared by Confluence, show access on the south side of the park, in the general location as proposed by Solhem. The Plan was approved after 4 open houses that were attended by over 200 Edina residents. This is in addition to the over 1300 respondents to the on-line engagement. The proposed Fred II cannot financially support the creation of this access without Public financing. Available Funding Source In lieu of creating a new TIF district to meet the request, staff and consultants have explored the use of funds pooled from the 2014 Pentagon Park TIF District together with SPARQ Funds. The Pentagon Park TIF District was created in 2014, the boundaries of which included parcels north and south of West 77th Street. Under the existing legislative authority, 25% of the captured increment of a Redevelopment TIF District can be pooled to support qualifying future redevelopments. The Fred I, currently under construction, and Fred II will be contributing increment that remains uncommitted to the Pentagon Park TIF District’s original obligations. The Fred II request is potentially eligible for the use of these pooled funds. Based on the current pace of redevelopment within the Pentagon Park TIF District, estimates provided by the City’s financial advisor, Ehlers, suggests approximately $7 million of the project funding request could be met from its pooled funds. The remaining funding request could be made available through the recently approved SPARQ program. Public Benefits  Creation of affordable housing (28 units) on-site for 20-years;  Creation of lower cost market rate housing (70-100% of AMI) on-site;  Public pedestrian and vehicular access to Fred Richards Park;  Public plaza adjacent to Fred Richards Park;  Adherence to Sustainability Policy;  Improved stormwater management system on site and in adjacent area;  Improvement to Edina’s water main loop serving the Pentagon Park area; and  Redevelopment of an underutilized and vacant office building and surface parking lot. Requested Action Staff is seeking feedback on the potential provision of financing to support the development and the suggested sources. Staff is also seeking authorization to engage HRA’s legal and financial advisors to explore the needs, costs and benefits of this potential redevelopment project. Ultimately, staff intends to prepare a Term Sheet that identifies a viable path for public funding to be applied to make this type of redevelopment project viable. The Term Sheet would be presented to the HRA for consideration later in 2022.