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HomeMy WebLinkAbout2A, TCAAP Update--ADEN HILLS Request for Council Action Prepared By: Ron Moorse, City Adminitrator Council Meeting Date: December 14, 2009 t TCAAP Update Budgeted Amount: Actual Amount: Funding Source: NA NA NA Recommendation: 1. No action required. Supporting Documents: 1. See the attached memo from Ron Moorse. �fi` DEN HILLS MEMORANDUM DATE: December 14, 2009 TO: Mayor and City Council FROM: Ron Moorse, City Administrator SUBJECT: TCAAP Update Conference Call with General Services Administration (GSA) A conference call was held with Kevin Legare of the GSA on Monday, December 7 to obtain additional information regarding the proposed license agreement for the investigation and remediation of those parcels not currently remediated to industrial use standards, and to discuss the proposal by Ramsey County to obtain a 500 foot wide access corridor along the western boundary of the AHATS property from County Road I to and through the primer tracer area. License Agreement Kevin Legare indicated he has had discussions with the Army regarding the details of the license agreement, particularly with the Army's legal staff, including an environmental attorney. One new element that was discussed was that, as the licensed areas are cleaned, the license would be converted to a lease, which would provide the buyer with additional rights related to the land. Kevin did not have details on what the additional rights would be. The lease would then be converted to a fee title transfer after all of the licensed areas are remediated. Kevin indicated that if the GSA drafts the lease, the Federal Facilities Agreement (FFA), which outlines the remediation requirements for the TCAAP property, will be incorporated into the lease. Kevin stated the Denver Federal property, for which Kevin has provided the license agreement, was owned by the GSA. Kevin also indicated that, under the license arrangement, a buyer would be performing the remediation work required of the Army and would have to meet all of the requirements the Army needs to meet for remediation. While Kevin did not have any details, he stated it was possible the Army would provide the lease language and that it could be different than what the GSA would prepare. Staff reiterated that additional detail is needed to understand the license and lease process and requirements. Kevin indicated the GSA is open to incorporating the City's concerns regarding the license agreement and other issues into the Invitation for Bid (IFB). He suggested the City provide a written document to the GSA outlining the City's concerns. Staff can begin compiling a draft letter for Council review to submit to the GSA. The letter would also be helpful with the next congressional update. The City reinforced the importance of requiring a buyer to provide sufficient financial assurance to enable the remediation to be completed in the case of a default by the buyer. Kevin indicated the plan is to have a draft Invitation for Bid (IFB) prepared by March of 2010. He wants the draft IFB to be available one month prior to a spring bidders' conference. Kevin indicated he would provide the draft IFB to the City, prior to publicizing it, to enable the City to provide comments. Ramsey County Access Corridor Proposal Kevin suggested that, if there is to be a public benefit conveyance in relation to the access corridor proposal, a conference call with all interested/affected parties should be held to discuss how the conveyance could happen. The type of contamination on the primer tracer area is similar to the contamination that was on the Rice Creek Trail Corridor that was conveyed through the National Park Service to the County. However, the Army remediated the trail corridor property prior to transfer, and the Army does not have funding for the remediation of the primer tracer area. Kevin suggested the National Park Service should be contacted about their willingness to sponsor a public benefit conveyance of property that has not been remediated. An additional potential transfer option is a conservation conveyance that can occur directly from the Army to a local public entity. Kevin indicated the Army has used this on BRAC sites, but he is not sure whether the Army would use it on the TCAAP site. With either transfer option, the issue of remediation and related funding needs to be addressed. Schedule for Next Conference Call The next GSA conference call is tentatively scheduled for Monday, January 11. Kevin indicated he will be available in the interim if the City has any questions or concerns.