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I I I Council Meeting Minutes December 13, 1990 Page 9 Council Business. continued Larson asked if these properties have shown any leakage from the Joe's Service site. Locke said soil testing will be done before closing occurs. Motion by Williams, seconded Larson, to AUTHORIZE THE EXECUTION OF PURCHASE AGREEMENTS FOR DOWNTOWN PARCELS OWNED BY SAHARA INVESTMENT COMPANY AND R & W INVESTMENTS. 5 Ayes - 0 Nayes, Motion Carried. Locke said the owners of 221--1st St. NW, 361--1st St. NW, 250--1st St. NW and 31 1 -- 1 st St. NW, Mrs. Lehman and Mrs. Folstrom (Rachel Johnson's estate), Mrs. Edlund and Mr. Baker, respectively, have offered to sell their properties to the City. All properties are within Development District #1, TIF District #15, and 2nd Street redevelopment future phase. The following purchase prices have been agreed to: Mrs. Lehman - $65,000, Mrs. Folstrom - $75,000, Mrs. Edlund - $90,000, and Mr. Baker - $70,000. All agreements include relocation costs and owners requested closing before December 31. Benke requested staff to investigate generating short term revenues from these parcels until redevelopment can occur. Motion by Gunderman, seconded by Williams, to AUTHORIZE THE EXECUTION OF PURCHASE AGREEMENTS FOR 221 AND 361 FIRST STREET NW 250 AND 311 FIRST STREET NW. 5 A yes - 0 Nayes, Motion Carried Childs said the City and the U.S. Department of Defense entered into a settlement agreement over the Twin Cities Army Ammunition Plant groundwater contamination lawsuit in August 1988. In addition to the multi-million dollar settlement, the Defense Department also paid $235,000 to the City as reimbursement for those legal fees which the Army considered to be appropriate under the Equal Access to Justice Act (EAJA). However, the City's actual prosecution costs greatly exceeded the Defense Department's payment. The City decided that substantial additional legal costs were recoverable under EAJA. The City's environmental counsel presented a claim under EAJA and after negotiations with the U.S. Justice Department an agreement was reached. The total recovery will be about $750,000 and will cover a major portion of the City's total legal fees. settlements. Childs noted that this is one of the largest settlements ever under the EAJA legislation. Williams feels the City has done well and supports staff recommendation. Council Business Purchase Agreements/Down town Parcels Report 90-269 Purchase Agreements/1 st St. Parcels Report 90-270 EAJA Claim Report 90-271 Resolution 90-103