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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 1 <br />pending additional review of environmental issues. He stated Staff reviewed the proposal and the 2 <br />sellers have agreed to escrow $25,000 for two years to take care of remediation or environmental 3 <br />issues on the site. 4 <br /> 5 <br />Community Development Director Ericson said the site has been closed by the MPCA and the 6 <br />engineer gave it a full bill of health. In the Environmental Report there is trace contamination 7 <br />and the MPCA said it is fairly common in places like this. They stated further action is not 8 <br />required. 9 <br /> 10 <br />Community Development Director Ericson explained the City has requested a “no liability “ 11 <br />letter that releases the City of any liability in the chain of ownership and the previous owners of 12 <br />the property will be responsible for any contamination. He stated Staff believes they have 13 <br />enough information to go ahead with the purchase and recommends authorizing the acquisition 14 <br />of the property. He stated it is the same resolution as was presented at the last meeting with the 15 <br />added clause. 16 <br /> 17 <br />Community Development Director Ericson explained the payment will be for the full amount 18 <br />and the title company will set the amount aside in escrow. Everyone feels it is a clean site and 19 <br />there is a strong likelihood that no remediation will be necessary. He added that redevelopment 20 <br />for commercial or retail should be fine. 21 <br /> 22 <br />Commissioner Flaherty asked for clarification about the purchase price. Community 23 <br />Development Director Ericson responded the purchase price is $625,000. 24 <br /> 25 <br />Commissioner Flaherty asked about the way the MPCA identifies the site versus the way the 26 <br />City identifies the site. Community Development Director Ericson stated that the way the MPCA 27 <br />designates the property is as the original owner and it has no effect on the purchase. 28 <br /> 29 <br />Commissioner Flaherty asked about the MPCA letter regarding the liability language. He 30 <br />questioned the fact that nobody is saying it is a clean site and asked if nobody is saying it’s a 31 <br />clean site. City Attorney Riggs stated that under federal law, anyone who purchases the property 32 <br />must go through the MPCA and the liability letter will remove the City from the chain of 33 <br />ownership. 34 <br /> 35 <br />Commissioner Flaherty asked who would be responsible if a future developer insists on a clean 36 <br />site. City Attorney Riggs responded that the City will not be able to say it’s a clean site and will 37 <br />not enter an agreement that indemnifies the City. He stated based on his discussions, and based 38 <br />on potential usage and zoning, there will not be an issue with the site. 39 <br /> 40 <br />Commissioner Flaherty stated he wants to make sure the City is not “thrown a curveball” later on 41 <br />and is on the hook for a large clean up. City Attorney Riggs said his staff has been trying to 42 <br />make sure that the City will not be responsible. He stated it appears the City will not be 43 <br />responsible, but there is no 100% guarantee. He said the City cannot say it’s a clean property 44 <br />and, in case soil has to be moved or remediated, the $25,000 in escrow will take care of the 45 <br />expense. City Attorney Riggs said the escrow covers any kind of environmental problem that 46