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HomeMy WebLinkAbout07-15-09-WS HILLS Approved: August 10, 2009 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MEETING JULY 159 2009 5:30 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the City Council Work Session meeting at 5:36 p.m. Present: Mayor Stan Harpstead, Council Members David Grant, Brenda Holden, Fran Holmes, and Dave McClung. Absent: None. Also present: City Administrator Ron Moorse; Community Development Director James Lehnhoff; Mike Comodeca, Attorney; John Dugan, GSA; Kevin Legare, GSA; and Mike Fix, Twin Cities Army Ammunition Plant. 1. AGENDA ITEMS A. Introduction Mayor Harpstead stated this evening's meeting was a chance for the City to begin reconnecting with the Army-GSA after termination of the negotiated sale agreement. He hoped that the discussion would be a free and open exchange of conversation to address ideas, opportunities, and concerns. Mayor Harpstead questioned the long term goal and vision of the GSA for the TCAAP site. ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 1512009 2 Kevin Legare, GSA stated that he sees this meeting as an opportunity to build on the relationship with the City of Arden Hills while working towards a common goal to get the site cleaned up and ready for use. He stated he would like to maintain that focus and have a successful transfer of the property. Councilmember Holden thanked the Army and GSA for inviting the Council back to the table for further discussions on this property. B. Priorities and Concerns of the City Regarding Clean-Up and Reuse Mayor Harpstead stated the City is concerned with the cleanup and reuse of the TCAAP site. Mr. Legare explained that the GSA would be selling an industrial grade property and that the cleanup would be to that level in accordance with the Federal Facilities Agreement. He stated it would be sold in an "as is" condition. Mr. Legare indicated that if the Buyer had the financial capacity, the site could then be cleaned for residential use. Councilmember Holmes questioned if it was the Army-GSA's responsibility to clean the site to an industrial standard before the site was transferred. Mr. Legare explained it was the intention of the GSA to transfer the property through an early transfer. He indicated that most of the property was at an industrial standard and that some portions of the property need further remediation. Councilmember Grant asked for a definition of industrial level clean up and asked if this differed with a negotiated sale versus a public auction. Mr. Legare stated the cleanup would not vary if sold at public auction or negotiated sale. The site would be cleaned to the same industrial level and this was defined by the MPCA and EPA. Mike Fix, Twin Cities Army Ammunition Plant indicated the Army was going to use the MPCA and EPA standards for the clean up. He noted the Army would be obligated to cleanup the site to Tier II industrial standards even though the property would be transferred to a new owner. Mr. Fix explained that the Buyer would be responsible for meeting the Army's obligations with the MPCA and EPA. ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 3 Mayor Harpstead asked that Mr. Fix review the site map to greater define the areas that were still in need of remediation. Mr. Fix explained there were 22 distinct areas that exceed the industrial standard from the State at this time. He further reviewed the locations in detail, with roughly four acres of FOSET land that still need to be cleaned up to the industrial standards. Mr. Fix noted that some parts of the property meet residential standards, including the land west of Rice Creek. Discussion ensued regarding the cleanup of the TCAAP site. Councilmember Holden questioned if the studies completed by Ryan Companies were included in this estimate, as they felt there were additional sites needing cleanup to reach the MPCA/EPA standards. Mr. Legare stated the GSA does not have any of the Ryan Companies data, but that all of the property met the industrial standards except the areas marked in red on the site map. He then reviewed which areas of the site met residential standards. Mayor Harpstead questioned how much was spent on the cleanup of Site C or Site K. Mr. Legare stated the cleanup of Site C was in the millions of dollars as it was a large site that endured several complications. He indicated that Site K was cleaned by Alliant Tech and that this information was confidential. Mayor Harpstead explained that the City did not want to have to wont' about this property and if it were cleaned properly. He questioned how the City could be assured that the Buyer would follow through with the cleanup. Mr. Legare stated an escrow agreement or performance bond could be put in place to assure that the work was completed. He stated that the promise to clean has not been sorted through and that this would need to be further addressed with the Army and the Attorney General's office. Councilmember Holmes asked about community-friendly invitation for bids (IFBs) that were promised. MR-DEN HILLS CITY COL7NCIL WORK SESSION-JULY 15, 2009 4 Mr. Legare explained that the GSA cannot work the City's desires into the IFB. There is no such designation as a "community friendly" IFB. Councilmember Holmes questioned if the GSA has dealt with a similar property transfer requiring cleanup after the transfer and how this was handled. Mr. Legare explained a property in Strafford, Connecticut was transferred with the Buyer responsible for executing a permit with the State of Connecticut to ensure the cleanup was complete. He noted that the State of Connecticut was then overseeing the cleanup to assure it reached the necessary specifications. Councilmember Holmes asked what would happen if the Buyer went out of business or defaulted on the cleanup, or if the bond didn't cover the entire cleanup. Mr. Legare explained that this was a slight risk but that the performance bond could be used to complete the clean up on the property or that it could be transferred back to the Army. Councilmember Holmes suggested that a performance bond be required with the transfer of this property to assure that the cleanup was completed. Mr. Legare stated the GSA did need to back the promise to cleanup the site and that the performance bond could assist with this. Councilmember Grant questioned if a portion of the site could be sold off as residential within the bid or if some compromise could be reached. Mr. Legare stated the GSA was selling the TCAAP site as an industrial piece of land. He indicated the bids were not usually loaded up with requirements that would restrict the bidding. Councilmember Holden expressed concern regarding the access to TCAAP. She noted that the primer-tracer area was landlocked with a park on one side, the National Guard to the east and north, and the wildlife corridor to the south. Councilmember Holden questioned if the bidders would be notified of the limited access to the property. Mayor Harpstead indicated that MnDOT was trying to close the curb cuts on Highway 10 and that the access on County Road H was three legged without access ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 5 from the south. He explained the only other access point was one curb cut along County Road 96. Mr. Legare stated that Buyer's would need to be aware of the access concerns as the site would be sold as is. He indicated the GSA would be gathering the information to assist the Buyer's in making a reasonable bid for this site. Mr. Legare explained he would like to create a dedicated website with all the information gathered about this site to allow bidders to review before placing a bid. Mayor Harpstead expressed concern about the ground water cleanup process. He stated that all of the plans and specifications for this cleanup would need to be fully explained to the bidding public as certain infrastructure would remain on the site. Mr. Fix reviewed that roughly 100 shallow wells would remain on the site for environmental remediation. These could remain for sometime into the future. Councilmember Holmes questioned how the site could be developed with 100 wells that needed ongoing maintenance. Mr. Fix stated the wells were shallow pipes that were used for monitoring the ground water level. He indicated the Army, through the CERCLA, would need to maintain a right of entry to the site to monitor the wells. Mayor Harpstead suggested that this information be explained in detail on the website along with a predicted timeline on when the wells would be abandoned. Mr. Legare noted that this would be spelled out to define the number, location and depth of each well. He stated that each well would be abandoned when possible going forward into the future and that all State regulations would be followed for the well abandonment. Mayor Harpstead questioned if underground storage tanks needed to be removed from the site. Mr. Fix explained that there were no remaining underground storage tanks on the site. Mr. Comodeca questioned if the response action agreement would be negotiated ahead of time with the Buyer and have it part of the bid or if this would be completed after the bidding process. ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 6 Mr. Legare stated that they expect to have the Covenant Deferral Request (CDR) almost done by the time the property is transferred. He indicated that he would like all of these issues addressed in the bidders' conference. Mr. Legare explained that - the first bidders' conference would be held this fall to provide information through a panel of representatives involved in the sale. He noted the information gathered at this meeting would be brought back to the City for comment, but the City does not have a vote on the bidders' packet. Councilmember McClung questioned how the bidders' meeting would be publicized for this type of site. Mr. Legare noted that a national marketing team was hired for the Stratford, Connecticut, site where they dedicated a website and put out the information on this site. He indicated additional write ups would be done in newspapers. Councilmember Holmes questioned if the future zoning could be set by the City even though it was federal property. Mr. Legare stated this was an overlay district and that the zoning did not apply while the land is under Federal ownership; however, upon transfer, the City would be the controlling entity. He indicated potential bidders would question the zoning in the bidders' conference and how this would effect the future development. Councilmember Grant questioned how the Army would address the environmental questions raised at the bidder's conference. He indicated there were gaps in the information as some was gathered by RRLD. Mr. Legare explained additional borings could be taken by potential bidders to fill in the gaps but they don't have their arms totally around the logistics of that yet. Mayor Harpstead asked if the bidders would be made aware of the location of asbestos and other hazardous material on the site. Mr. Fix stated there was not a hazardous assessment on the infrastructure but that the bidders would have access to the property before submitting a formal bid. ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 7 Councilmember McClung questioned if the overlay for this site were zoned within the City to something other than industrial. He indicated the Buyer would have to beware. Community Develop ment Director Lehnhoff stated the Council would need to discuss the Comprehensive Plan in light of the recent changes with the negotiated sale for this site. Mr. Legare stated this property would be sold "as is" and that the bidders would have to meet with the City to see what would be possible for the site. Mayor Harpstead indicated it may be possible for the Buyer and the City to agree upon a use for this site other than industrial, which would then require an adjustment in their bid to allow for proper cleanup and negotiated sales price. Mr. Legare stated this was correct and would be addressed if brought up from a potential bidder. He indicated the environmental condition of the property could be adjusted accordingly by the Buyer. Councilmember Holden asked if the site was being sold as one piece of property. Mr. Legare indicated this was correct that the property was being sold as one piece of property with the wildlife corridor. He noted it was the GSA's intention to require the buyer to transfer the wildlife corridor to Ramsey County. Mr. Legare stated the Buyer would be allowed to buy the 585 acres with this explained in the bid packet. Councilmember Holden questioned if the City could expect a portion of the site to remain green space and if this could be written into the bid. She asked if the wildlife corridor would be transferred at no cost and cleaned up. Mr. Legare explained that a green space requirement would not be written into the bid but would be negotiated between the City and the bidders. Community Development Director Lehnhoff then reviewed the historical Comprehensive Plan information with the Council and the general classifications in place in the 2030 Comprehensive Plan. The current zoning is I-2, General Industrial, and R-1, Single Family Residential. The 203 0 Comprehensive Plan and subsequent zoning will likely need to be amended to reflect this new planning process. ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 8 Councilmember Grant sug gested that Ramsey County be present at the bidders' conference if the wildlife corridor were going to be transferred through this public auction. Mr. Legare agreed and stated that the Met Council may also be invited to the bidders' conference. Councilmember Holden questioned if the wildlife corridor was cleaned to the correct level. Mr. Fix stated there would be land use restrictions within the wildlife corridor. A site specific risk assessment is needed to determine if public access is allowable. Mr. Legare explained that the wildlife corridor would be transferred to Ramsey County free of charge. Mayor Harpstead questioned if the wildlife corridor transfer could be completed separate from the property auction. Mr. Legare indicated this was not the current sale arrangement but would be brought back for further discussion by the GSA. Councilmember Holden explained that Representative McCollum was not happy with the prospect of a public auction and asked if anyone had spoken with her further. Mr. Legare stated he spoke with Bill Harper on several occasions explaining the next step in this process was the bidders' conference. He indicated a great deal of information would need to be gathered and shared before the conference was held. Councilmember Grant questioned the timeline for the public sale procedure. Mr. Legare stated the bidders' conference would be this fall with a potential offer before the GSA next spring or summer. Councilmember McClung questioned how the sale would proceed after the bidders' conference. AR-DEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 9 Mr. Legare explained that based on the feedback gathered at the conference, the GSA would hope to have someone out on the property completing borings and meeting with the City. After that, a second bidders' conference may be held in late winter if necessary Further discussion ensued regarding the vapor intrusion and how new State regulations would affect this site. Mayor Harpstead asked what would happen after the second bidders' conference. Mr. Legare stated if enough information were gathered the online auction would then be started. Councilmember McClung questioned how the online auction worked. Mr. Legare described how the auction would work with a registration deposit, a minimum bid with the auction lasting 45-60 days. He explained all permits and bonds would be applied for prior to the auction. The GSA would set requirements for qualified bidders. Mayor Harpstead asked how the City could guarantee that the proper criteria and financial assurances were in place before a bid was awarded on this property. Mr. Legare stated this would be written into the bidding process timeline, while allowing the Buyer 180 days to secure the proper permits and bonding to proceed with this purchase. Councilmember Grant indicated the City would be able to have a dialogue with potential Buyer's throughout the entire process. City Administrator Moorse indicated the City would like a clear security arrangement that is going to assure that the cleanup is completed. City Administrator Moorse suggested the GSA and Army further discuss a performance bond that equals 100% of the cleanup cost. Councilmember Grant questioned if the Buyer's would be prequalified and if the City would be a part of this process. Mr. Legare stated he would like to hear ideas from the City on this process but that this would be left to the Army and GSA. ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 1512009 10 Mayor Harpstead asked at what point the bidders would begin interacting with the City with regard to the property. Mr. Legare stated this would begin as soon as possible. Councilmember Grant asked who the potential buyers may be for this site, traditional developers or nontraditional buyers. Mr. Legare explained it may be nontraditional buyers but that the door was open to everyone. Councilmember Holden questioned if the cleanup would be placed on a timeline and if this included cleanup to a residential level. She expressed concern that a buyer may purchase the land and sit on it for years, without completing the necessary cleanup. Mr. Legare stated he was uncertain of this as the GSA was selling an industrial piece of land. He suggested that this be further discussed to assure that the issue was addressed. Mr. Fix explained that the cleanup timeline would be within an agreement between the bidder and regulators to have a scheduled cleanup completed to hold them to the responsibilities. Councilmember Grant questioned how the bidders' conference would be coordinated between all the parties involved to assure that all parties are answering the questions in the same manner. Mr. Legare stated a moderator with great knowledge of the property would be used to lead the discussion while having contact with all the major parties involved. Councilmember Holmes explained that the majority of the Council (3/2) would like to see the site turned into parkland. She stated a regional park would greatly benefit the community given the fact the site had major infrastructure needs. Councilmember Holmes asked if the Army-GSA would consider this site being turned into park land. ARDEN HILLS CITY COUNCIL WORK SESSION-JiJLY 15, 2009 11 Mr. Legare stated at this point the Army-GSA would not be turning the site into parkland. He indicated the property would be sold in an "as is" condition and that the Buyer would have to work with the City on the development of the site. Councilmember Holmes questioned how the direction of this project could change, and if the Army-GSA would consider the site for park land. Mr. Legare explained that until such time as there was special legislation regarding the park land use, the Army-GSA would continue on their current path of a public auction. He indicated the park land would require special legislation and that if they were told by the legislators to shift the scope of this project they would. Mayor Harpstead encouraged the Council to think through follow up questions and that one staff member be selected to channel all information for the City. Councilmember Holden suggested Community Development Director Lehnhoff be the point person for this project. The Council agreed. Mr. Legare stated he would remain the main contact for the GSA and that he would be available via phone for future meetings. Mayor Harpstead questioned what would need to take place before the bidders' conference. Mr. Legare stated he would be speaking with the City every other week or so leading up to the conference, beginning in August, to begin formulating and gathering all the information necessary for this process. He explained that the GSA would be finishing the National Environmental Protection Act (NEPA) review shortly, along with the State Historic Preservation Office review. He stated the CDR would be completed after the holidays. Mr. Legare questioned if all the information from RRLD would be purged from the City's website. Community Development Director Lehnhoff stated this would be removed and that the new vision for the TCAAP site would be put on the website. The previous planning information would be moved into an archived folder on the website. ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 12 Councilmember Holden questioned how the CDR could be completed when it was uncertain what each potential bidder may want to put on the property. Mr. Legare stated this was a requirement that sets aside the covenant on the FOSET properties. Mayor Harpstead asked if there were any historical registry sites on the property. Mr. Legare indicated there was an archaeological site on the Rice Creek property, which is now owned by Ramsey County. Mr. Legare asked if TIF would or would not apply to the property. Mayor Harpstead explained that this would be a Council decision and that a vote has not taken place to date. He described the recent special TIF legislation for TCAAP approved by the Governor and Legislature, but he noted that the special TIF legislation was not in effect at this time. Councilmember Holden stated if the Council was to vote down the State legislation, those special requests would not be available to the property. However, the regular TIF rules would apply. Mayor Harpstead suggested Community Development Director Lehnhoff be in contact with Mike Fix and Kevin Legare to understand the way all the public information on the website was being presented and available to the public. He stated this would increasingly build a bridge between the City and the GSA. Councilmember Grant questioned if the website used for this information would be secure for just the City and GSA or how the public would have access. Mr. Legare indicated the public would access this site after entering a password. Mayor Harpstead asked if the City would have access to this website before it was to go live. Mr. Legare stated this would be possible to allow the City to share information on the property. Scott Quick, a member from the audience, questioned if the monitoring wells could be engineered so that the monitor point could be accessed at grade instead of MR-DEN HILLS CITY COUNCIL WORK SESSION-JULY 15, 2009 13 sticking out of the ground. He indicated this would help with the development of the property. Mr. Fix noted this would have to follow the Department of Health well code. Lyle Salmela, 1480 Arden Vista Court, asked if the Army would be acknowledging the State's industrial standards versus the Army's and if this applied to the entire site. Mr. Fix noted the State's standard would apply. Mr. Salmela questioned if the City of Arden Hills was in favor of the GSA public auction. He asked if the Army-GSA would be in favor of a development on this site. Mayor Harpstead noted the City has voted on a resolution that needs to be addressed properly in the pursuit of park land. He indicated that the GSA was present tonight to discuss the public auction for the site after dissolution of the negotiated sale. Mr. Legare stated the bidders' conference will be the beginning of the public auction and that the sale would continue unless otherwise legislated by the government. Councilmember Grant asked if the Army-GSA would be agreeable to undertake efforts to improve the value of the property prior to the sale. Mr. Legare indicated they were not appropriated to complete the cleanup work or other improvements to the property. Mayor Harpstead noted the City would be in contact with the Army and GSA as the information gathering process continues. It was agreed on by the Council that the City would set up bi-weekly conference calls with the GSA. AR-DEN HILLS CITY COUNCIL WORK SESSION-JLTLY 155 2009 14 2. COUNCIL COMMENTS AND REQUESTS There was nothing at this time. Mayor Harpstead a 4be City Council Work Session mee. n at 7:51 p.m. '41 ,/Xta'n' Ha4steig Ronald J. T46orse Mayor City Administrator