CCP 08-27-2013 - Laserfiche WebLink

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Fernelius reported that now that the term sheet has been approved, API Group is very eager to start working on the redevelopment agreement and other project details. APi Group will also have 120 days (October 15th)to complete due diligence and enter into a contract with the City. Commissioner Knight questioned the City's recourse if Pulte doesn't follow through. Fernelius responded that the City would always have the option to sue, although it was noted that Pulte is paying cash up-front for both the land and the public improvements. Commissioner Knight questioned the cost per lot that Pulte paid. Fernelius stated that Pulte is paying a net investment of about $6,000,000, about $51,000 per lot. Update on MPCA discussions (Informational) Background Director Fernelius reported that Council recently reviewed the MPCA proposals and took action at their June 11 meeting. In 2008-2009 the City conducted a remediation effort to close the former Miller dump and prepare the area for future development. The City's remediation effort was outlined in a formal Response Action Plan(RAP) that was approved by the MPCA in May 2008. As part of the approved RAP and following the dump closure project, the City installed a series of vapor monitoring wells around the perimeter of the site. The MPCA very recently expressed new concerns regarding developments on or near dumps, particularly when methane is elevated like at Miller dump. Given the significance of this emerging position to future development at New Brighton Exchange, the City has been attempting to initiate further discussions and engagement with MPCA,but little progress has occurred and the MPCA has been reluctant to meet or discuss this issue in detail. Rather, MCPA is choosing to focus on additional demands for venting at Block E. Most recently, MPCA indicated that the state legislature is working with MCPA on possible regulations to restrict development on or near dumps. The MPCA has stated that they may remove the City form the Voluntary Program, making the City a Responsible Party. Various options were suggested by City Staff to the Council. It was decided by the Council to work with the MPCA to install additional venting. The agency has suggested that the City install additional vertical vents on a 30' spacing in the perimeter of the dump in Block E. These vents would penetrate the existing soil cap/membrane into the garbage. Aesthetically, the vents would be unsightly and a better scenario might to connect the pipes underground and reduce the number of vent risers above ground. The cost for this is estimated to be $150,000. City Staff will present a workplan to the MPCA, following their approval it will be presented to Council for approval. Commissioner Murlowski expressed concern that the MPCA is changing the requirements, and the City is not fully aware of what the expectations are. Fernelius noted that there is significant public money invested in the project. Commissioner Peck questioned if the site could be used for parking? Fernelius stated that could be a possibility. Commissioner Knight questioned the financial projections for developing Block B and Block E. Fernelius stated that in the best case scenario approximately$7,000,000 in increment over the life of the district would be generated. Commissioner Murlowski questioned if the option to do nothing would be acceptable. Fernelius suggested the City could risk being removed from the Voluntary Program. Commissioner Knight asked if the City should consider changing its financial model. Fernelius reported that there has been a variety of financial models prepared; most recently with the Pulte and APi projects. Fernelius suggested waiting until the MPCA issue reached a resolution before updating the financial models. MPCA de-listing of former NW Refinery site (Informational) Director Fernelius reported that The City has learned that the MPCA is planning to de-list the former Northwest Refinery site from the Superfund program this summer.