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,-AREN-�HILLS <br /> MEMORANDUM <br /> DATE: June 18, 2012 <br /> TO: Honorable Mayor and Councilmembers <br /> FROM: Jill Hutmacher, Community Development Director <br /> SUBJECT: Triangle Parcel <br /> BacklZround <br /> In 2010 Presbyterian Homes proposed to redevelop their property located at 3120 and 3220 Lake <br /> Johanna Boulevard. At part of the redevelopment project,Presbyterian Homes also proposed to <br /> redevelop their property located at 3151 Lake Johanna Boulevard(also known as the "triangle <br /> parcel") with a senior brownstone-style residential development. Neighborhood residents were <br /> neither supportive of the brownstone proposal, nor of a previous proposal to redevelop the <br /> triangle parcel. The City had an interest in acquiring the triangle parcel to permanently restrict <br /> development and to allow for a City gateway sign at that location. <br /> Development Agreement <br /> In December 2010, the City entered into a Development Agreement with Presbyterian Homes for <br /> Lake Johanna Shores. As part of the agreement which included tax increment financing of up to <br /> $1,115,000, Presbyterian Homes agreed to transfer the triangle parcel to the City. At that time, it <br /> was known that the triangle parcel was formerly used as a gas station, and it was suspected that <br /> one or more underground tanks could still be buried on the property. The Development <br /> Agreement specifically requires Presbyterian Homes to demolish the building, remove any <br /> underground tanks, and remediate the site "to a Minnesota Pollution Control Agency standard for <br /> non-residential land use." <br /> The Development Agreement requires Presbyterian Homes to pay up to $50,000, over and above <br /> the amount of any grants received, to remediate the property as required by the Agreement. If <br /> remediation costs exceed $50,000, the City may 1) accept the transfer of property"as-is" or 2) <br /> decline to accept the transfer of property and require that a restrictive covenant or conservation <br /> easement be placed on the property to limit its use to open space in perpetuity. <br /> City of Arden Hills <br /> City Council Work Session Meeting June 18, 2012 <br /> Page 1 of 2 <br />