CCP 08-09-1999 - Laserfiche WebLink

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" ARDEN HILLS EDA - MARCH 8. 1999 DRAFT 2 able 10 come to an agreement on the cost of the property and lhe fixtures on the property, leaving e only the cost of the dirt umesolved. Mr. Ringwald referred to the Summary of Costs ofIndykiewicz Acquisition portion of the Staff report dated March 8,1999. He indicated that the numbers had been broken down in a manner in order for the property owner to take advantage of certain lax benefits. Mr. Ringwald explained that the total of $ 1,150,000 is made up of the Real Property costs, the Replacement Housing Allowance, and the Business Relocation Fixed Payment. The two remaining items are the Business Equipment and Moving Expense for which an agreement has been made. These costs exclude the black dirt. The property owner has stated thaI the black dirt is worth $210,000 which is 35,000 cubic yards at $6.00 per cubic yard. The Staff currently estimales that approximately 20,000 to 30,000 cubic yards of black dirt is in surface piles. The owner has stated that approximately six feet of black dirt exists below these piles. The Staff, in coordination with Glenn Rehbein Companies and the property owner, dug several test pits on the property to determine the depth of material. These test pits revealed thaI two to four feet of material exists below these piles. Therefore, the 35,000 cubic yards estimate would appear to be high. The Staff is working with the City Engineer to come up with a revised number on the amount of black dirt on the sile. An agreement will most likely be made soon on the amount of dirt, as this is a fixed number. The Staff is continuing to try to determine a reasonable dollar value for the black dirt. In calling around to find out the market price for black dirt, Staff found that in place dirt is substantially less than the $6.00 per cubic yard placed on it by the property owner. The actual cost for the dirt may not be decided before closing. The closing can take place without the issue of the black dirt being resolved because there is method for resolving the issue. . The purchase agreement includes a lengthy section on Hazardous Substance related 10 the property owners' activities on lhe land. The property owner has indicated that there are no underground wells on the property. The property owner had been concerned of the purchase agreement no going through due to environmental contaminalion related to TCAAP. The Staff has agreed that Mr. Indykiewicz will not be held liable for any contamination that is the related to TCAAP. The Staff is primarily concerned with pollutants such as hydraulic fluids and gasoline having been spilled on the surface. The closing date is scheduled for Wednesday, March 10, 1999. The property owner is allowed to retain possession of the residential dwelling unlil April 7, 1999. Essentially, lhis allows the Indykiewicz's 30 days to move from the property. The property owner has indicated that he would move out sooner if he is able. The Staff previously identified the "upfront funding" of this expenditure as the preferred the method. Under this scenario, the Staff would recommend the utilization of Fund 704, the TIF Bond proceeds, and, if necessary, Fund 501, the PIR Fund, for the acquisition. . Mr. Ringwald advised that the Staff recommends approval of the Purchase Agreement between the City of Arden Hills and George and Eleanor Indykiewicz, substantially in the form presented,