09-12-07 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SEPTEMBER 12, 2007 The Administrator indicated that the second parameter is the utilization of the "pay as you go" format for this TIF Disri•ict. St. Jude has indicated that they do not want to advance funds for acquisitions/improvements associated with the addition of a left turn lane on County Road B-2. The Adminisri•ator suggested that if the City has to bond for these improvements, it will be with the understanding that the payment of this debt service will take the first position regarding the application of future TIF receipts, after creation costs. The Administrator then reviewed the City's desired priority for the use of TIF as outlined in his report. The Administrator noted that a Public Hearing has been scheduled for October 10, 2007 to consider creation of TIF District 5-1. The Administrator stated that he wanted to review the parameters of the District with the Council prior to that hearing to ensure that there are no concerns or issues that could be addressed prior to that hearing. It was the consensus of the Council that the parameters as outlined were acceptable. OASIS The City Administrator reviewed his report dated September 7, 2007 CONTAMI- relative to contamination issues at the former Oasis property. He pointed NATION out that when the City purchased the property, it was aware of petroleum contamination on the site. Part of our agreement was that Oasis was to remove the underground storage tanks and remediate any contamination to MPCA standards for the property's "continued use as a commercial/industrial property". The Administrator reported that given the complications and timing with this property purchase, funds were escrowed at 150% of the estimated cost for tank removal ($30,729). The Administrator reported that Oasis did the tank removal and while doing so encountered new contamination. However, the contamination was not remediated as the MPCA did not require it pursuant to their tank removal standards. The MPCA then issued a "Site closure confirmation" letter, however, the City Administrator felt that the letter was not meet the standards set forth in the purchase agreement. The Administrator felt that when the new contamination was discovered it should have been remediated at that point. The Administrator reported that the MPCA has stated that the contamination has been dealt with until such time as the area is dug up again. The Administrator pointed out that this is a redevelopment site, and the contamination will be an issue when the property is redeveloped.