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,!e- UR EEN HILLS MEMORANDUM DATE: January 22, 2013 TO: Honorable Mayor and Councilmembers Patrick Klaers, City Administrator FROM: Jill Hutmacher, Community Development Director ,7// SUBJECT: Triangle Parcel Background In December 2010, the City entered into a Development Agreement with Presbyterian Homes for the redevelopment of the Johanna Shores senior housing facility. As part of the agreement, Presbyterian Homes agreed to convey to the City the parcel located at 3151 Lake Johanna Boulevard(known as the "triangle parcel"). Because the triangle parcel was previously used as a gas station, Presbyterian Homes agreed to, "at its cost, and prior to Closing, remove any tanks and remove or remediate any hazardous substances to a Minnesota Pollution Control Agency standard for non-residential land use." Presbyterian Homes has notified the City that it has received a Petroleum Tank Release Site File Closure (Attachment A) from the Minnesota Pollution Control Agency (MPCA) and is prepared to transfer the property to the City. Presbyterian Homes' obligation to investigate and remediate the triangle parcel is limited to a total cost of$50,000 over and above the proceeds of any grant request. Presbyterian Homes has not asked the City to assist with any grant applications for the triangle parcel, and City staff is unaware of the total cost of investigation and remediation activities. The City's obligation to accept the transfer of the property is contingent on its satisfaction with the environmental conditions of the triangle parcel. Environmental Investigation and Remediation Four underground storage tanks were removed from the triangle parcel on December 16, 2011. Subsequent environmental testing indicated soil and groundwater contamination on and adjacent City of Arden Hills City Council Work Session January 22, 2013 Page 1 of 3