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MAYOR <br />Bill Blesener <br />COUNCIL <br />Jim LaValle <br />Rick Montour <br />Barbara Allan <br />John Keis <br />515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: August 19, 2005 <br />RE: Contamination Clean -up /Guerin Settlement Agreement <br />Attached is correspondence received form the Guerin's Attorney, Mr. Jerome Filla. He is <br />stating his concern with the disbursement of the Guerin Settlement Funds as the first source of <br />money used for clean-up of the northeast corner of Rice Street /Little Canada Road. This is <br />the same issue we discussed with Dave Guerin at an earlier council meeting. It is my <br />understanding the City Attorney will prepare a letter delineating our position on this matter. <br />Mr. Filla also asks that the City Council adopt a resolution asking the Minnesota Department <br />of Employment and Economic Development (DEED) to amend the grant agreement for clean- <br />up funds whereby the Guerin Settlement Funds would become the second source of funding <br />thereby making the State's money primary. Staff has no concerns in passing this type of <br />resolution and asking the DEED to consider same. (Enclosed is a draft of a possible <br />resolution.) However, it should be noted that I have had phone conversations with Mr. Roy <br />Murphy of DEED on this matter. (He called me after the DEED received calls from the <br />Guerin's attorney.) Mr. Wilson has indicated that it is clear to them this money is available <br />and should be used first. That is their policy. He did not give me much hope that we will be <br />successful with this request. <br />The issue of not expending any of the settlement funds will be left to the advice of the City <br />Attomey. I will mention that the developer has not benefited by this situation. They are <br />cleaning up a site that was contaminated by others. This clean -up creates additional costs to <br />the project and the availability of grant dollars or the Guerin's funds only offsets this <br />extraordinary expense. It does not create a windfall for the developer. <br />Also attached is a copy of the settlement agreement with the Guerin's to serve as a point of <br />reference. The City Attorney will lead this discussion on Wednesday. <br />cc: George Sherman <br />Dave Guerin <br />