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IA Brownfield App IDED P of DbqMEMORANDUM September 30, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Miiligen, City Manager Iowa Brownfield Redevelopment Program Application Economic Development Director Bill Baum recommends City Council approval of an Iowa Brownfield Development Program application to the Iowa Department of Economic Development to assist with environmental remediation of City-owned property in the Port of Dubuque. The application would request $142,655 in State grant funding to support cleanup of the petroleum contaminated soil and groundwater found at the former Molo Oil Company site near the dverfront east of Bell Street. The proposed biosparging remediation, which may take as long as three years to complete, is estimated to cost $570,620. The City has already received $200,000 in EPA cleanup funds to assist the project. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi~chael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM September 30, 2003 TO: FROM: SUBJECT: Michael Van Milligen, City Manager William Baum, Economic Development Director Iowa Brownfield Redevelopment Program Application Introduction This memorandum requests City Council approval of a Resolution endorsing a State of Iowa Brownfield Redevelopment Program application to the Iowa Department of Economic Development (IDED) to assist with environmental remediation of City- owned property in the Port of Dubuque. Background IDED recently announced a new program to assist cities with brownfield redevelopment projects. The Iowa General Assembly appropriated $500,000 in funding for fiscal year 2004 to provide financial assistance for the acquisition, remediation and redevelopment of qualified brownfield sites. Financial assistance is limited to 25% of the agreed upon estimated total cost of the eligible activities. Assistance may be awarded in the form of a grant, forgivable loan, conventional loan or some combination thereof. Applications will be competitively reviewed by a newly selected Brewnfield Redevelopment Advisory Committee with award recommendations then forwarded to the IDED Board. Applications are due October 17, 2003. Discussion The proposed application would request $142,655 in State grant funding to support cleanup of the petroleum contaminated soil and groundwater found at the former Molo Oil Company site near the riverfront east of Bell Street. The proposed biosparging remediafion, which may take as long as three years to complete, is estimated to cost $570,620. The City has already received $200,000 in EPA cleanup funds to assist the project. The attached Resolution authorizes the City Manager to make application for Iowa Brownfield Redevelopment Program funds. The City has previously committed to pay costs above and beyond any grant funds received to complete the necessary remediation. Recommendation I recommend that the City Council endorse the submission of an Iowa Brownfield Redevelopment Program application to IDED. The proposed remediafion project provides for the cleanup of valuable riverfront property in the Port of Dubuque for eventual rouse, including the expansion of the Grand Harbor Resort and Waterpark. The award of additional grant funding for this project will free up budgeted Port of Dubuque redevelopment funds for additional projects. Action Step The action step is to adopt the attached Resolution. attachment F:\USERS\Pm~re\WPDOCS\EPA\Iowabrownapp,M EM.doc RESOLUTION NO. 363-03 A RESOLUTION ENDORSING THE SUBMISSION OF AN IOWA BROWNFIELD REDEVELOPMENT PROGRAM APPLICATION TO THE IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT FOR ENVIRONMENTAL REMEDIATION ACTIVITIES IN THE PORT OF DUBUQUE. Whereas, the City of Dubuque is interested in promoting further economic development opportunities in the Port of Dubuque area to retain and attract new job creating businesses to this community; and Whereas, the City of Dubuque and its America's River partners are investing over $188 million in the Port of Dubuque; and Whereas, petroleum contaminated property in the Port of Dubuque may hinder further investment in and development of key riverfront property; and Whereas, the Iowa Department of Economic Development, through its Iowa Brownfield Redevelopment Program, has monies available for the remediation of contaminated properties owned by municipalities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby endorses an application to the Iowa Department of Economic Development for Iowa Brownfield Redevelopment Program funding in the amount of $142,855 to assist in the remediation of petroleum contaminated property in the Port of Dubuque. Section 2. That the City Manager is authorized to sign, on behalf of the City Council, an application for Iowa Brownfield Redevelopment Program funding. PASSED, APPROVED and ADOPTED this 6th day of October 2003. Terrance M. Duggan, Mayor Jeanne F. Schneider, City Clerk F:\USERS~Pm~hre\WPDOCS\EPA\lowbrownapp.res.doc , Mayor