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ARDEN HILLS CITY COUNCIL WORK SESSION—OCTOBER 21, 2013 10 City Administrator Klaers recommended a Phase I environmental study be completed prior to the Council making an offer on the site. Councilmember McClung questioned if the Council had funds available for this purchase. City Administrator Klaers discussed the amount of increment funds available in the PIR fund for this purchase. He indicated that the Council would not get their money back on the redevelopment of this property. Councilmember Holden agreed that the City may not recoup the purchase price, however, if the site was improved properly, the entire downtown business district would be greatly enhanced. She expressed concern about what may go into the property if the City did not purchase the site. She asked if the City had received any inquiries regarding the property. City Administrator Klaers discussed the calls City staff had received to date. Mayor Grant recommended that the site only be considered for demolition and not for redevelopment. He stated that the site could be problematic given the low level of parking. Mayor Grant suggested that the Council authorize staff to contact the broker regarding the Carroll's property and find out what a Phase I environmental/remediation study would cost. The Council was in agreement. H. Bethel Update City Administrator Klaers explained there was a public hearing held at the October 9th Planning Commission meeting on the Bethel CUP. The Commission heard the case and recommended approval of the CUP. This planning case will be on the October 281h Council agenda. Councilmember McClung discussed the issues raised at the Planning Commission meeting. City Administrator Klaers indicated there was concern with the trails to the south of the building. Residents in this area wanted to see the trails remain open to the public. He indicated that he has spoken with Kathleen Nelson and Bethel was willing to convey their intent to keep the trails open and Bethel would be responsible for trail maintenance. City Administrator Klaers explained that he has also spoken with Bethel regarding the trail from the Pine Tree campus to the existing campus. The cost and location of the trail has been further discussed. Bethel was being asked to fund the trail in an amount not to exceed $800,000 and a payment plan was created. He then reviewed the proposed trail development and location. Councilmember Holden was pleased that Bethel would keep the Pine Tree trails open for public use. She questioned how the third Pine Tree parcel would be used by Bethel.