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IbLovf <br />Report Number 08-311.Agenda Section V-2 <br />� Council Meeting Date November 25, 2008 <br />the city that works for you <br />REQUEST FOR COUNCIL CONSIDERATION <br />ITEM DESCRIPTION: Authorize Payments of Net Sales Gains from Former MacGillis & Gibbs <br />Site <br />DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Director of Community Development <br />c�� <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this <br />Recommendation: Authorize payments of o <br />Agreement as follows: <br />Minnesota Pollution Control Agency <br />Environmental Protection Agency <br />U. S. Fish & Wildlife Service <br />Legislative History: <br />Comments attached <br />under the 1997 Prospective Purchaser <br />$51,000.07 <br />$49,822.57 <br />$ 1,277.50 <br />1997: Agreement with MPCA and EPA is executed. <br />2002: First payments are made to agencies for net resale gains from sale of land for <br />redevelopment. <br />Financial Impact: Total payments of $102,100.14 will come from TIF District #26, which has <br />a surplus. <br />Explanation: <br />The MacGillis & Gibbs Company operated a wood -treating plant at 5"' Ave. NW and County <br />Road E2 for about sixty years. The land was severely contaminated with pentachlorophenol, <br />chromated copper arsenate, PAH's, dioxins, and other hazardous substances and pollutants. <br />Some of these chemicals can cause cancer in humans; others can cause various non -cancer health <br />effects. <br />The federal Environmental Protection Agency (EPA) and the Minnesota Pollution Control <br />Agency (MPCA) each placed the site on its respective Superfund list in 1984. MPCA named <br />MacGillis as the Responsible Party for the site, and required that the scope of contamination be <br />investigated and remedial actions taken. Various formal investigations were completed under <br />the Superfund program, and a health assessment was conducted by the Minnesota Department of <br />Health. It was concluded that the site posed a potential public health concern because of the <br />possibility of exposure to contaminated soil and groundwater. <br />MacGillis stated that it could not clean up the property for financial reasons. In 1997 the City <br />took title to the property by quitclaim deed from the company. A landmark Agreement and <br />Covenant Not to Sue was entered into among the City, MPCA, and EPA. This agreement, <br />11AMacGillis Payments-3.doc <br />