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U.S. Department

> of Transportation

**Federal Transit**

**Administration**

Mr. Steve Kotke August 3, 2005

Deputy Director, Office of Public Works

City of Minneapolis

350 South 5^th^ Street

Minneapolis, Minnesota 55415-1385

> Re: Finding of No Significant Impact
>
> for the Nicollet Hotel Block Project

Dear Mr. Kotke:

Based on our review of the Environmental Assessment dated July 11, 2005,
we have issued a Finding of No Significant Impact (FONSI) for the
Nicollet Hotel Block Project.

A copy of the FONSI is enclosed. A notice of the availability of the
FONSI must be sent by the City of Minneapolis to the affected units of
Federal, State, and local government, and the document shall be made
available upon request by the public, in accordance with 23 C.F.R.
Section 771.121(b). The City of Minneapolis may also want to send copies
to all the consulting parties.

Thank you for your cooperation in meeting the requirements of the
National Environmental Policy Act. If you have any questions, please
contact Bill Wheeler of my staff at (312) 886-1621.

> Sincerely,

/signed by/

Donald Gismondi

Acting Regional Administrator

Enclosures

## Finding of No Significant Impact

Project Name: Nicollet Hotel Block Project

Project Location: Minneapolis, Hennepin County, Minnesota

Grant Applicant: City of Minneapolis, Metropolitan Council

# Project Description

The Nicollet Hotel Block Project (Project) includes two major
components: The North Terminal and a private, mixed-use development that
will be above it. The Project will include a below-grade bus layover
facility with a capacity for the layover of 26 buses (including two
articulated buses). It will have an interior, at-grade, passenger
waiting area that will have access to the street and to the second-story
skyway system via a new skyway that will be built between the Private
Development and the new Central Library. When the Project opens, it is
expected to accommodate approximately 1,000 daily bus trips to and from
the facility. It will be operated by the region's public transit
authority, Metro Transit, which is an agency of the regional government,
the Metropolitan Council of the Twin Cities. The Private Development
will be a mixed-use project that will include approximately 300 dwelling
units, parking for the residents, and retail on the first and second
floors. The City will select a private developer (Developer) that will
purchase the site and construct the Project. Federal funds will be used
for the transit eligible portions of the Project.

The address for the Nicollet Hotel Block Project is 200 Nicollet Mall.
It contains 74,378 sq. ft., which is about 75% of a normal block in
Minneapolis Downtown District. It is bounded by the Nicollet Mall,
Hennepin Avenue, Washington Avenue South, and 3rd Street South.

# Environmental Effects and Mitigation

The City of Minneapolis will construct the Project in accordance with
the design features and mitigation measures presented in the
Environmental Assessment dated July 11, 2005. The City of Minneapolis
will implement the following mitigating measures to address
environmental impacts from the Project:

1\. Adverse visual impacts of the proposed project on historic
buildings.

The City of Minneapolis and the Minnesota State Historic Preservation
Office (MNSHPO) have identified an Area of Potential Effect for this
project and have determined that numerous properties included on or
eligible for inclusion on the National Register of Historic Places are
located within the Area of Potential Effect. The Federal Transit
Administration (FTA), the City of Minneapolis and the MNSHPO have
executed a Memorandum of Agreement (MOA) to address issues arising under
Section 106 of the National Historic Preservation Act. A copy of the MOA
is attached to this FONSI.

2\. Potential high noise levels during construction to the surrounding
community.

Within two blocks of the Project, there are two residential dwellings
that may be affected by the construction noise. The City of Minneapolis
plans to mitigate potential impacts by following the guidelines set
forth in the FTA guidance manual entitled, "Transit Noise and Vibration
Impact Assessment" dated April, 1995. In addition, the City of
Minneapolis has its own Code of Ordinances for noise that specifies
strict limits for both the hours of operation of construction equipment
and the allowable noise levels of that equipment.

3\. Potential need for a dewatering permit.

The Minnesota Department of Natural Resources mentions in a letter dated
June 22, 2005 that a dewatering permit may be necessary for this
project. The City of Minneapolis will work with the Minnesota Department
of Natural Resources to determine if the permit is needed. The City of
Minneapolis will apply for the permit if it is necessary.

### **Environmental Findings**

The environmental record constitutes the statement required by Federal
Transit Law at 49 U.S.C. Section 5324(b) on the environmental impact of
the proposal, adverse environmental effects that cannot be avoided,
alternatives to the proposal, and irreversible and irretrievable impacts
on the environment.

In accordance with 23 C.F.R. Sections 771.119 and 121, the FTA finds, on
the basis of the environmental record that there are no significant
impacts on the environment associated with the Nicollet Hotel Block
Project as it is described in the "Nicollet Hotel Block Project
Environmental Assessment" dated July 11, 2005.

The FTA also finds, in accordance with Federal Transit Law at 49 U.S.C.
Section 5324(b), that an adequate opportunity to present views was given
to all parties with a significant economic, social, or environmental
interest, that the preservation and the enhancement of the environment,
and the interest of the community in which the project is located were
considered; and that no significant adverse environmental effect is
likely to result from the project.

In accordance with Section 106 of the National Historic Preservation
Act, the FTA has determined, with concurrence of the MNSHPO, that the
Nicollet Hotel Block Project may have an adverse effect on historic
resources on or eligible for the National Register of Historic Places.
The framework for determining the appropriate mitigation of any adverse
effects that come to light is outlined in the attached in the MOA
executed by the FTA, the City of Minneapolis and the MNSHPO.

[/signed by/]{.underline} [August 3, 2005]{.underline}

Donald Gismondi, Acting Regional Administrator Date

Federal Transit Administration