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<br />ARDEN HILLS CITY COUNCIL - MAY 30, 2007 <br /> <br />2 <br /> <br />" <br /> <br />Mayor Harpstead asked how finding regarding Long Lake could affect this transfer process. Mr. <br />Comodeca replied that it impacts the Army if it is a groundwater issue. If also a soils issue, <br />could impact clean-up conducted by the developer. <br /> <br />Councilmember Holden asked about insurance, wondering who pays if some new contaminant is <br />found on the site. Mr. Comodeca responded that environmental insurance is another protection. <br />Cost-cap insurance estimates the cost of clean-up, and provides protection if the cost is higher. <br />There is also PLL coverage, which covers against third-party liability. <br /> <br />Mr. Comodeca was asked how much indemnity the City can get from the developer relating to <br />third-party liability. Mr. Bubul mentioned that this had been a lengthy discussion with the <br />developer and will continue to be discussed. <br /> <br />Councilmember Holden asked about deeding property back to the City for parks and other uses. <br />She was concerned what kind of liability there would be for the City in those cases. Mr. <br />Comodeca stated that the City will need to really work at making sure protections are in place. <br /> <br />Mr. Comodeca indicated that insurance renewal could be an issue if clean-up is not complete <br />prior to insurance term. Ms. Barton stated that in current discussions, the developer has indicated <br />and estimate that the clean up would take approximately three years. <br /> <br />Councilmember Holmes asked Mr. Bubul about indemnity issues in the Master Development <br />Agreement (MDA). Mr. Bubul responded that it could be perpetual. He stated that we will want <br />indemnity from individual companies, not from "RRLD". Mr. Comodeca stated that the City <br />should get indemnity from the developer. <br /> <br />Mr. Bubul explained redevelopment project areas in relation to MERLA. There will be a City <br />process, with a public hearing and adoption of a plan. <br /> <br />Mayor Harpstead indicated that the City needs to discuss what would happen in the event of a <br />default. The City may not want to take title or direct clean-up. Mr. Comodeca stated that the <br />City would not want to incur CERCLA liability as an operator, so this would have to be <br />addressed in the MDA. <br /> <br />Mr. Bubul indicated that there will likely be multiple lenders for the project, and the lenders will <br />be involved, which is another level of protection. The lender can come in and clean the property <br />and not be an owner. He stated that the more the City gets involved in clean-up, the more <br />liability the City may be exposed to. <br /> <br />Mr. Harpstead asked about the FOST vs. FOSET process. Mr. Comodeca stated that the MPCA <br />and EP A have concerns about this as well. The number of FOSET acres has expanded. Ms. <br />Barton stated that she believes the number ofFOSET acres is not 39.5 acres (it had been 22 - 24 <br />acres). Since this was still under the review, the number could still increase. She stated that the <br />