09-14-1998 EDA - Laserfiche WebLink

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Item No. . 6 Meeting Date: 9-14-98, Staff Report No. Type of Business:EDAB WK Work Session;PH:Public Hearing; CA:Consent Agenda;;EDAB:EDA Business Mounds View Economio Development Authority Staff Re port To: Mounds View Economic Development Authority From: Kevin Carroll, Economic Development Coordinator Item Title/Subject: Mermaid Hotel/Banquet Center--RentAll property— Environmental Site Assessment(s) Date of Report: September 10, 1998 SUMMARY On August 24, 1998 the City Council adopted Resolution No. 5260, which authorized staff and consultants to proceed with various actions including (but not limited to) the negotiation of an option/purchase agreement for the RentAll property. Information about the actual or potential presence of contaminants or other environmental problems on the RentAll property would be very useful in connection with the negotiation of an option/purchase agreement for the property. Resolution No. 5260 also authorized City staff and consultants to proceed with the development of an application to DTED for a redevelopment grant that could potentially be applied to the City's financial obligations in the event that a Development Agreement related to the proposed Mermaid hotel and banquet center is ultimately executed by the City/EDA and the Developer(s). The recipients of the DTED redevelopment grants will be determined by a point system, under which [up to] 20 of the possible 100 [maximum] points will be related to environmental issues: up to 15 points for"redevelopment in connection with contamination remediation needs" and up to 5 points for"multi- jurisdictional projects that take into account...environmental impact." DTED representatives have indicated that the submission of an objective, independent environmental site assessment [ESA]would be expected, if not required, in connection with any redevelopment grant application that seeks to have points awarded for environmental issues. In anticipation of the potential need for an ESA of the RentAll site, City staff recently contacted three reputable environmental consultants to request written cost projections regarding various types and levels of environmental assessments. The projected costs for a Phase I ESA of the RentAll site ranged from $1750.00 to $2795.00, with Peer Environmental & Engineering Resources, Inc. ["Peen] submitting the lowest estimate. The projected costs for a Phase I and Phase II ESAs of the RentAll site ranged from $3900.00 to $5300.00, with Peer again submitting the lowest estimate.