02-13-2007 (2) - Laserfiche WebLink

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square feet. Kaufhold inquired if the City will be selling the property to Ryan for a cost that included the anticipated lease rate. Black replied that the City has negotiated the land sale to Ryan at the market rate. Benke stated that the move of the post office deal is a necessary cost of redeveloping the Northwest Quadrant and the negotiations are intended to minimize the cost to the City. Sculthorp inquired to how much would the move cost the City. Nelson indicated that staff has the worse case scenario included in the sources-and-uses projection. Larson added that the City would be obligated to pay the same amount even if the post office moves to another City; by having them build a new building here in the City; the City receives the benefits. Harmon stated that she appreciated the diagrams, and the letter regarding the post office helped immensely. Kaufhold understands and supports the development,but questions why the Commission hasn't received this information in the past. Black replied that he attempted to explain what has happened in the packet and why the staff is just now releasing this information. He stressed that there are no surprises on the environmental issues—these conditions have been discussed for years—however there is new information on the geotechnical issues. The City studied the Midwest Asphalt property as much as possible while the company was still on the land. Now that the company is off the site and the piles are been removed, the City and developers have been able to obtain a better picture of the geotechnical issues. Kaufhold stated that he now understands that staff put the information together as well as they could at the time. Delaune stated that he supports that staff has given the Council and Commissions as best as they could, and expressed hope that there are no more hurdles to overcome. He asked if the price of the land would increase to help cover the cost of the cleanup. Black stated that staff is doing everything they can to maximize the revenue, minimize the cost and speed the development along. Black reported that the eminent domain process has begun on Ferrellgas. The value of the land is being determined. The Ferrellgas attorney would like to work something out, but the City has tried over the last several years to find a satisfactory site and all of them have been rejected. Flahave inquired if they need rail access. Black replied that Ferrellgas has stated at one time they do not need rail and then stated they did need rail. Fernelius reported that he had talked with the manager who reported that only twenty percent of their shipping is by rail. Kaufhold inquired to the cost of the eminent domain. Black replied that the appraisers are working on those figures now,but it is estimated to be around $700,000 for the land and relocation. Delaune asked if there are any environmental issues, and speculated that the contaminants could affect the county park and if the County was involved. Black stated that there is some contamination in the park,but the PCA had previously de-listed the sites in the park. He added that the water migration patterns are showing the flow is to the northeast, towards Rush Lake. Kaufhold asked whether Ashland, the former owner of the land, has any responsibility for the cleanup. Black stated that they did pay for some cleanup,but the City is changing the use of the land to residential, so the City has the responsibility to clean the land up to those levels. Black stated that he will bring the documentation regarding the level of responsibility of owners next month, so that everyone can understand the standards and who is responsible for cleanup. Page 4 of 6