HomeMy WebLinkAbout2B, Triangle Parcel ,-ARZEN HILLS
Request for Council Action 2B
Prepared By: Jill Hutinacher,Community Work Session Date. June 18,2012
Development Director
Triangle Parcel
Budgcted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Discussion Topic:
Informational only. No action required.
Supporting Documents:
1. Memorandum from Jill Hutmacher,Community Development Director,dated June 18,2012.
,-AREN-�HILLS
MEMORANDUM
DATE: June 18, 2012
TO: Honorable Mayor and Councilmembers
FROM: Jill Hutmacher, Community Development Director
SUBJECT: Triangle Parcel
BacklZround
In 2010 Presbyterian Homes proposed to redevelop their property located at 3120 and 3220 Lake
Johanna Boulevard. At part of the redevelopment project,Presbyterian Homes also proposed to
redevelop their property located at 3151 Lake Johanna Boulevard(also known as the "triangle
parcel") with a senior brownstone-style residential development. Neighborhood residents were
neither supportive of the brownstone proposal, nor of a previous proposal to redevelop the
triangle parcel. The City had an interest in acquiring the triangle parcel to permanently restrict
development and to allow for a City gateway sign at that location.
Development Agreement
In December 2010, the City entered into a Development Agreement with Presbyterian Homes for
Lake Johanna Shores. As part of the agreement which included tax increment financing of up to
$1,115,000, Presbyterian Homes agreed to transfer the triangle parcel to the City. At that time, it
was known that the triangle parcel was formerly used as a gas station, and it was suspected that
one or more underground tanks could still be buried on the property. The Development
Agreement specifically requires Presbyterian Homes to demolish the building, remove any
underground tanks, and remediate the site "to a Minnesota Pollution Control Agency standard for
non-residential land use."
The Development Agreement requires Presbyterian Homes to pay up to $50,000, over and above
the amount of any grants received, to remediate the property as required by the Agreement. If
remediation costs exceed $50,000, the City may 1) accept the transfer of property"as-is" or 2)
decline to accept the transfer of property and require that a restrictive covenant or conservation
easement be placed on the property to limit its use to open space in perpetuity.
City of Arden Hills
City Council Work Session Meeting June 18, 2012
Page 1 of 2
Environmental Investigations
Presbyterian Homes completed a Phase II Environmental Site Assessment in August 2011. Soil
borings were conducted and ground-penetrating radar was used to determine the number and
location of tanks. The radar located one tank. The building was demolished and underground
tanks were removed in December 2011. 'Three underground tanks were found which contained
drain oil, fuel oil, and gasoline. These tanks contained approximately 200 to 300 gallons of oil
or gasoline which was pumped prior to tank removal. A fourth tank was empty and was
suspected to have been originally used for water.
Groundwater contamination was detected. As required by the MPCA,Presbyterian Homes is in
the process of delineating the groundwater contamination. Based on test results thus far, it
appears that the groundwater contamination has moved off of the triangle parcel towards
Presbyterian Homes' property at 3120 Lake Johanna Boulevard(Sutton Place Apartments).
Presbyterian Homes has done multiple rounds of groundwater testing to determine the limits of
the groundwater contamination. The most recent testing was done on June 12 and 13. It will
take several weeks to receive results of those tests. A final report for the Limited Site
Investigation will not be issued,and the MPCA will not close the file on the site until the
groundwater contamination is delineated.
PropertClosing
The Development Agreement requires the closing on the conveyance of the triangle parcel to
occur by the later of ten days following satisfaction of all contingencies,or June 29,2012. One
of the contingencies is the City being satisfied with the environmental conditions of the parcel.
Until the City has received and reviewed the final Limited Site Investigation and the MPCA has
closed the file,this contingency is not satisfied.
City staff has been in contact with MPCA staff and will continue to monitor environmental
investigation activities. Once the investigation is completed and the MPCA has closed the file,
staff will ask for City Council direction on whether to proceed to closing.
City of Arden Hills
City Council Work Session Meeting June 18,2012
Page 2 of 2