8D, Resolution of Support for Acquistion and Remediation of TCAAP by Ramsey County

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removal of one concrete slab are necessary to accomplish the remediation, bringing the cost to remediate the site to a commercial/industrial standard to approximately $6 to $8 million. The Bolander contract has an option for the County to remediate the entire site to residential standards for an additional cost of $1,985,000. Based on the terms of the Bolander contract and the estimated costs to relocate monitoring wells and associated water lines, Ramsey County has negotiated remediation credits with the GSA in the amount of $22,549,125 which brings the net purchase price to $5,950,875. On June 19, 2012, the Ramsey County Board voted to proceed with negotiations with the GSA to acquire TCAAP. The Board also directed staff to seek State and Federal funds to assist with the costs of acquisition and remediation. Ramsey County Resolution 2012-189 is attached. Given changes in the real estate and financing markets over the past few years, sale of the TCAAP site through public auction seems unlikely. County acquisition of the TCAAP property may provide the only opportunity for the remediation and reuse of the site for many years. State and Federal Funding In the 2012 bonding bill, the Minnesota legislature allocated $47.5 million to the Department of Employment and Economic Development (DEED) for grants to economic development projects. Of the total allocation, 50% is expected to be made available to projects in the metropolitan area. Applications are due June 26, 2012. Competition for grant funds is expected to be very intense with requests far greater than the legislative allocation. The grant application requires a 1:1 match from the governing body submitting the application. Ramsey County intends to request funds for remediation and use the $5.95 million net purchase price as the match. Whether or not the DEED grant application is successful, the County intends to request other State and Federal funding to assist with the costs of demolition, remediation, and infrastructure. The County has developed a preliminary estimate for transportation costs of approximately $35 million which includes upgrades to the County Road H interchange, an access point on Highway 96, and an interior spine road. The estimate does not include funding for I-35W widening or I- 35/I-694 interchange improvements. The County will refine the transportation needs prior to the 2013 legislative session. Staff Recommendation Staff recommends that the City Council approve Resolution 2012-023 in support of acquisition and remediation of the Twin Cities Army Ammunition Plant (TCAAP) site by Ramsey County. Attachment Ramsey County Resolution 2012-189 City of Arden Hills City Council Meeting June 25, 2012 Page 2 of 2