HomeMy WebLinkAbout8D, Resolution of Support for Acquistion and Remediation of TCAAP by Ramsey Countyi
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EN HILLS �
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Request for Council Action '
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Prepared By: Jill Hutmacher, Community Council Meeting Date: June 25, 2012
Development Director �
Resolution of Support for Acquisition and Remediation of TCAAP by Ramsey County
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation:
Staff recommends that City Council approve Resolution 2012-023 in support of acquisition and
remediation of the Twin Cities Army Ammunition Plant (TCAAP) site by Ramsey County.
SuUporting Documents:
1. Memorandum dated June 25, 2012, from Jill Hutmacher, Community Development Director.
2. Attachment A— Ramsey County Resolution 2012-189.
3. Attachment B— Resolution 2012-023.
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�i�R�EN,HILLS
MEMORANDUM
DATE: June 25, 2012
TO: Honorable Mayor and Councilmembers
Patrick Klaers, City Administrator
FROM: Jill Hutmacher, Community Development Director J�
SUBJECT: Acquisition of TCAAP by Ramsey County
Requested Action
Approve Resolution 2012-023 in support of acquisition and remediation of the Twin Cities Army
Ammunition Plant (TCAAP) site by Ramsey County.
Back�round
In 2010, the Minnesota Vikings expressed an interest in constructing a new stadium at the
TCAAP site in Arden Hills. On February 15, 201 l, the Ramsey County Board adopted
Resolution 2011-075 declaring its interest in pursuing the potential acquisition and remediation
of land and making public infrastructure improvements to allow for a stadium project on the
TCAAP site. As part of the due diligence, Ramsey County entered into negotiations with the
General Services Administration (GSA) to acquire the site. On November 15, 2011, the Ramsey
County Board approved an offer to purchase 430 acres of the TCAAP site for $28.5 million, net
of costs for demolition and environmental remediation. Although the Minnesota Vikings
ultimately received legislative approval and funding for construction of a new stadium facility in
Minneapolis, Ramsey County remains interested in the acquisition, remediation, and productive
reuse of the TCAAP site to facilitate economic growth in the north metro.
Ramsev County Acquisition of TCAAP
In Apri12011, the Ramsey County Board approved a fixed-price contract with Bolander and
Sons in the amount of $20,660,000 for demolition of buildings and site remediation. The
majority of the contract cost, approximately $15 million, is for building demolition. The
remainder of the contract cost is for site remediation. The demolition of two buildings and
City of Arden Hills
City Council Meeting June 25, 2012
Page 1 of 2
removal of one concrete slab are necessary to accomplish the remediation, bringing the cost to
remediate the site to a commercial/industrial standard to approximately $6 to $8 million. The
Bolander contract has an option for the County to remediate the entire site to residential
standards for an additional cost of $1,985,000.
Based on the terms of the Bolander contract and the estimated costs to relocate monitoring wells
and associated water lines, Ramsey County has negotiated remediation credits with the GSA in
the amount of $22,549,125 which brings the net purchase price to $5,950,875.
On June 19, 2012, the Ramsey County Board voted to proceed with negotiations with the GSA to
acquire TCAAP. The Board also directed staff to seek State and Federal funds to assist with the
costs of acquisition and remediation. Ramsey County Resolution 2012-189 is attached. Given
changes in the real estate and financing markets over the past few years, sale of the TCAAP site
through public auction seems unlikely. County acquisition of the TCAAP property may provide
the only opportunity for the remediation and reuse of the site for many years.
State and Federal Funding
In the 2012 bonding bill, the Minnesota legislature allocated $47.5 million to the Department of
Employment and Economic Development (DEED) for grants to economic development projects.
Of the total allocation, 50% is expected to be made available to projects in the metropolitan area.
Applications are due June 26, 2012. Competition for grant funds is expected to be very intense
with requests far greater than the legislative allocation. The grant application requires a 1:1
match from the governing body submitting the application. Ramsey County intends to request
funds for remediation and use the $5.95 million net purchase price as the match.
Whether or not the DEED grant application is successful, the County intends to request other
State and Federal funding to assist with the costs of demolition, remediation, and infrastructure.
The County has developed a preliminary estimate for transportation costs of approximately $35
million which includes upgrades to the County Road H interchange, an access point on Highway
96, and an interior spine road. The estimate does not include funding for I-35W widening or I-
35/I-694 interchange improvements. The County will refine the transportation needs prior to the
2013 legislative session.
Staff Recommendation
Staff recommends that the City Council approve Resolution 2012-023 in support of acquisition
and remediation of the Twin Cities Army Ammunition Plant (TCAAP) site by Ramsey County.
Attachment
Ramsey County Resolution 2012-189
City of Arden Hills
City Council Meeting June 25, 2012
Page 2 of 2
Attachment
Ramsey County Resolution 2 012-18 9
June 11, 2012 City Council
Resolution
Board of
Ramsey County Comm.issloners
Presented By: Commissioner Carter Date: June 19, 2012 No. 2012-189
Attention: County Attorney's Office
Parks and Recreation
Page 2 of 2
WHEREAS, The Ramsey County Board of Commissioners wishes to take advantage
of this opportunity to acquire and remediate the TCAAP property and return it to the tax rolls;
and
WHEREAS, The Ramsey County Board of Commissioners is committed to cleaning
up the property with the assistance of various partners; and
WHEREAS, The Ramsey County Board of Commissioners, in conjunction with moving
forward on purchase of the fand, has requested a plan for cleanup, with the first priority being
soil remediation; and
WHEREAS, There are grant programs for which the TCAAP property is eligible for
funding for acquisition and remediation, specifically the application for DEED Local
` Government Business Development Capital Projects Grant Program ("the project"); Now,
Therefore, Be It
RESOLVED, The Ramsey County Board of Commissioners directs the County
Manager to make application for DEED, Met Council, State of Minnesota, Federal or other
funding sources for the acquisition and remediation of the TCAAP property; and Be It Further
RESOLVED, The Board directs the County Manager to return to the County Board for
Board acceptance of any grants; and Be It Further
RESOLVED, The Board directs the County Manager to continue negotiations with the
General Services Administration to acquire the TCAAP land for the net purchase price of
$5,950,875, and apply the acquisition cost as a match to secure the grant funds; and Be It
Further
RESOLVED, The Board directs the County Manager to return to the County Board
with a financing plan for the acquisition, and a plan for soil remediation.
Ramsey County Board of Commissioners
Tony Bennett
Toni Carter
]im McDonough
]an Parker
Victoria Reinhardt
Janice Rettman
Rafael Ortega
Rafael E. O , Chair
By:
Bonnie C. Jackelen
Chlef Clerk — Cou B d
Resolution
Board of
.RSI2ZSEY COil.t2ty C012212�1SS1012e1'S
Presented By: Commissioner Carter Date: June 19. 2012 No. 2012-189
Attention: County Attorney's Office
Parks and Recreation
Page 1 of 2
WHEREAS, Ramsey County has an interest in encouraging and assisting economic
development and transportation improvement projects which will provide jobs and enhance
the communities' tax base for the benefit of its residents and surrounding businesses; and
WHEREAS, Ramsey County is a fully developed urban center that has the second
largest county population in Minnesota and the smallest land area, and includes the former
Twin Cities Army Ammunition Plant (TCAAP) property, in the Northwest corner of Ramsey
County, which presents the largest opportunity for economic development in Ramsey
County; and
WHEREAS, The U.S. Army operated the TCAAP as a small arms manufacturing
facility for over 50 years, but has since decommissioned TCAAP and has been engaged in a
process to sell the property; and
WHEREAS The General Services Administration (GSA) represents the U.S. Army in
the sale of approximately 430 acres of land within the original approximatety 2,400 acre
TCAAP site; and
WHEREAS, Within the 430 acres, the Army has identified 30 acres where samples
reveal that soils exceed the MPCA Tier 2 Commercial/Industrial Soil Reference Values
(SRV); and
WHEREAS, Ramsey County has successfully negotiated a net purchase price forthe
TCAAP property, in the amount of $5,950,875, based on a fixed-price contract for
remediation to determine the credits and offsets available for that net purchase price; and
Ramsey County Board of Commissioners
YEA NAY OTHE
Tony Bennett
Toni Carter
]im McDonough
]an Parker
Victoria Reinhardt
Janice Rettman
Rafael Ortega
X Rafael E. Ortega, Chair
X By.
X Bo . Jackelen
Absent Ch ef Clerk — County Board
Attachment
ResOlution 2012-023
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City ofArden Hills
City Council Meeting for June 25, 2012
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EN HILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION NO. 2012-023
A RESOLUTION IN SUPPORT OF THE ACQUISITION AND REMEDIATION OF
THE TWIN CITIES ARMY AMMUNITION PLANT SITE BY RAMSEY COUNTY
WHEREAS, the U.S. Army declared the Twin Cities Army Ammunition Plant (TCAAP)
site excess to its needs in 2001, and the General Services Administration completed the federal
screening and declared the property surplus to the government's needs in 2002; and
WHEREAS, since 2002, the City has considered only one valid private development
proposal; and
WHEREAS, the private development proposal was ultimately withdrawn due to general
economic infeasibility; and
WHEREAS, in 2009, the Arden Hills City Council approved a resolution in favor of
designating the entire TCAAP site for parks and open space use which was not supported by
Ramsey County because it was economically unfeasible and the County favored private
development that would increase the County's employment base; and
WHEREAS, on November 15, 201 l, the Ramsey County Board of Commissioners
approved an offer to purchase 430 acres of the TCAAP site for $28.5 million; and
WHEREAS, on June 19, 2012, the Ramsey County Board of Commissioners approved
Resolution 2012-189 directing staff to continue negotiations with the General Services
Administration to acquire TCAAP for the purchase price of $5,950,875 net of remediation
credits, and to make application for State and Federal funds for acquisition and remediation; and
WHEREAS, acquisition of the TCAAP site by Ramsey County provides an opportunity
for the site to be remediated, returned to productive use, and opened to public access which is the
desire of the City of Arden Hills.
NOW THEREFORE, BE IT RESOLVED that the City Council of Arden Hills,
Minnesota supports Ramsey County's acquisition of the TCAAP site and supports efforts by
Ramsey County to obtain State and Federal funds to assist with the costs of acquisition,
remediation, and infrastructure.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS
25t" DAY OF JUNE, 2012.
David Grant, Mayor
ATTEST:
Patrick HIaers, City Administrator