CCP 06-25-2007 - Laserfiche WebLink

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audonment of the spur may impact the cleanup on the east side and the Old Highway 8 reconstruction. Black noted that last year the City received a verbal agreement for the relocation of the wye and the rail spur abandonment, and staff trusts that it will be followed through. Fernelius added that in 2003 the City was advised to start the process of eliminating the rail customers to force t~e abandonment of the track, The only customers currently left are Ferrellgas and the landscape company that is storing boulders along the track. The president of the rail operator, John Gohmann, did not want money for eliminating the rail; he wanted another rail line, thus requiring the relocation of the wye. Financial Model Black said that he thought Casserly did a great job at last month's meeting and staff has attempted to answer Flahave's questions submitted after the meeting. Staffwill continue to bring the Sources and Uses model in periodically. Flahave asked who wrote the purchase agreement for Midwest Asphalt with no contingency, He suggested that aPhase 1 should have been done and questioned why the City waived its right to do testing. Black replied that the City did do a Phase 1 and tested the site to the best of its ability, however all areas couldn't be tested. Fernelius added that the City was fully aware of the contamination of the site and no new contamination has been found, The housing developers discovered geotechnical issues in the northwest portion of the development. Flahave asked if staff was satisfied enough with the testing to run the current financial models. Fernelius replied that staff was satisfied with what was found and sinct( the peat was found, staff and the developers are trying to respond with a revised site plan, .laune encouraged staff to stress that additional contamination was not found, and that the geotechnical issues required a new site plan. Lotter stated that one of the objectives that staff is looking into is increasing public awareness, and have been working on this internally. Staff is editing a questions-and-answers report from questions generated at the neighborhood meetings, which will be in the City's next newsletter and on the City's web page, He added that the newsletter will be timed with the ribbon cutting of the APi site to celebrate the successes of the development. Benke noted that this development was a strategic plan by the Council to bring in dynamic housing that was not previously available into the City. The development will also result in the elimination of the trains that block several intersections within the city. Black noted that for several years the focus has been on contaminates and the possible environmental risks that might be on the site. Structural testing is nearly always done by the developer, since they know where the buildings will be located, He suggested that even if the geotechnical problems were known, the City would have still purchased Midwest Asphalt. The City would not have been given a release from the Court because of the contamination or the geotechnical issues, because the City is changing the use of the site. Flahave asked ifthere would be any commercial, other than APi, on the west side of Old Highway 8, Black replied that residential is the only thing planned and is needed for the financial model to work. Flahave suggested that the development will be a serious cost to taxpayers and asked if there is a contingency plan, Black opined that the development will not be a serious cost to taxpayers. Fernelius added that he understands Flahave's frustration; the Council met last night and requested that a contingency plan be developed. He .ggested that there needs to be sensitivity when discussing a contingency plan, because any negative press could affect the marketability and potentially kill this development. Page 3 of5