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Mounds View EDA June 26, 2006 <br />Regular Meeting Page 2 <br /> <br />Community Development Director Ericson stated this item was on the last agenda but tabled <br />pending additional review of environmental issues. He stated Staff reviewed the proposal and the <br />sellers have agreed to escrow $25,000 for two years to take care of remediation or environmental <br />issues on the site. <br /> <br />Community Development Director Ericson said the site has been closed by the MPCA and the <br />engineer gave it a full bill of health. In the Environmental Report there is trace contamination <br />and the MPCA said it is fairly common in places like this. They stated further action is not <br />required. <br /> <br />Community Development Director Ericson explained the City has requested a “no liability “ <br />letter that releases the City of any liability in the chain of ownership and the previous owners of <br />the property will be responsible for any contamination. He stated Staff believes they have <br />enough information to go ahead with the purchase and recommends authorizing the acquisition <br />of the property. He stated it is the same resolution as was presented at the last meeting with the <br />added clause. <br /> <br />Community Development Director Ericson explained the payment will be for the full amount <br />and the title company will set the amount aside in escrow. Everyone feels it is a clean site and <br />there is a strong likelihood that no remediation will be necessary. He added that redevelopment <br />for commercial or retail should be fine. <br /> <br />Commissioner Flaherty asked for clarification about the purchase price. Community <br />Development Director Ericson responded the purchase price is $625,000. <br /> <br />Commissioner Flaherty asked about the way the MPCA identifies the site versus the way the <br />City identifies the site. Community Development Director Ericson stated that the way the MPCA <br />designates the property is as the original owner and it has no effect on the purchase. <br /> <br />Commissioner Flaherty asked about the MPCA letter regarding the liability language. He <br />questioned the fact that nobody is saying it is a clean site and asked if nobody is saying it’s a <br />clean site. City Attorney Riggs stated that under federal law, anyone who purchases the property <br />must go through the MPCA and the liability letter will remove the City from the chain of <br />ownership. <br /> <br />Commissioner Flaherty asked who would be responsible if a future developer insists on a clean <br />site. City Attorney Riggs responded that the City will not be able to say it’s a clean site and will <br />not enter an agreement that indemnifies the City. He stated based on his discussions, and based <br />on potential usage and zoning, there will not be an issue with the site. <br /> <br />Commissioner Flaherty stated he wants to make sure the City is not “thrown a curveball” later on <br />and is on the hook for a large clean up. City Attorney Riggs said his staff has been trying to <br />make sure that the City will not be responsible. He stated it appears the City will not be <br />responsible, but there is no 100% guarantee. He said the City cannot say it’s a clean property <br />and, in case soil has to be moved or remediated, the $25,000 in escrow will take care of the <br />expense. City Attorney Riggs said the escrow covers any kind of environmental problem that