10-19-11 EDC Packet - Laserfiche WebLink

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of the related nature of site remediation responsibilities and land-use controls that restrict the use of the land. It is estimated that land acquisition and site demolition and remediation costs could range from $23 million to $70 million. The wide cost range is due primarily to uncertainty regarding the existing contamination, the development plan and the land appraisal. These uncertainties should be better understood in order to negotiate the land sale price with the GSA. In addition to completing an additional environmental site assessment, the County should have a plan in place for indemnification against the uncertainty of the site remediation costs. Ramsey County has found that remediation. stop-loss/cleanup cost cap insurance is not available in today's market, which means there may be no risk mitigation available in the insurance industry to ad- dress the primary risk of remediation cost overruns. The potential risk for increases in site remediation costs could be mitigated through the use of a fixed-price remediation contract, which, if available at a cost within project resources, passes the risk of cost overruns to the remediation contractor. Ramsey County and the Vikings have proposed early 2012 for the start of environmental remediation., but site remediation. cannot begin until the Minnesota Pollution Control Agency (MPCA) approves an action plan for remediation. Producing such a plan and obtaining MPCA. approval could delay the start of site remediation by three to) eight months. Thereafter, the time required to complete site rem .. edial:ion. depends on steps that MPCA needs to confirm. MPCA has indicated that a year to complete site remediation appears to be unrealistic considering the many factors that. are difficult to predict. A,. year m.ay be sufficient, but the project may incur increased costs to meet that sched.ule. Ultimately, site remediation may take longer than proposed, posing a risk to the development schedule. While the risk to the schedule is significant, mitigation measures are limited. The primary mitigation action would be to accelerate the review process and begin obtaining as much soil information on the site as possible. Environmental Review and Documentation Process Federal and state laws requiring environmental analysis apply to the Stadium Proposal. The federal environmental review would be limited to the transportation improvements proposed for the Interstate highway system. The risk stemming from the federal process is that the environmental analysis could reveal the need for other improvements to the Interstate system not currently identified. The state environmental review would cover all environmental effects Land transactions like this one are un.comrrion and complex. it is difficult to estimate remedial ienup Costs arid schedule at this time A strategy for limiting potential site remediation cost overruns should be developed. NTPC,',A has indicated ti a' a year to cornpleLe site remcdiatiofl appears to be unrealistic considering I he Ilia factors that are to rwedici.