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REQUEST FORCOUNCIL ACTION Date:11-10-14 Item No.: 13.b ___________________________________________________________________________________ Department Approval City Manager Approval ____________________________________________________________________________________ Item Description: Proceed to Closing for Property Locatedat 2959 Hamline Avenue North ____________________________________________________________________________________ 1BACKGROUND 2A 3.32 acre parcel of property located at 2959 Hamline AvenueNorthadjacent to Autumn Grove Park 3is currently owned by IndependentSchool District No. 621. This property is identified in the Parks and 4Recreation Renewal Program for acquisition. 5 6On April 21, 2014, the City entered into a Purchase Agreement(attached)with Independent School 7District No. 621 to purchase real propertyat 2959 Hamline AvenueNorthfor $415,000. 8 9The Purchase Agreement provides that the City shall have a 90 day “Due Diligence Period”following 10the signing of the Purchase Agreement to determine, among other things, the environmental condition 11of the property, whether the City can obtain a No Association Determination, No Further Action, and 12other written assurances from the Minnesota Pollution Control Agency pertaining to the property, and 13whether the condition of the title to the property is satisfactory to the City. The 90 day Due Diligence 14Period was extended to August 19, 2014, pursuant to an option to extend contained in the Purchase 15Agreement. 16 17An amendment was agreed to by the School District and approved by the City Council on August 11, 182014to extend the “Due Diligence Period”until December 31, 2014 to allow further investigation and 19complete the Proceedings Subsequentaction to remedy the title issues which existwith respect to the 20property. 21 22An application has been submitted to the MPCA VoluntaryInvestigation and Cleanup (VIC) Program 23in order to secure aNo Association Determination and ultimately a No Further Action on the remaining 24groundwater issue. 25 26During the Due DiligencePeriod, severalmeetings with the Minnesota Pollution Control Agency 27(“MPCA”) have been held and considerable document review and investigation has been conducted 28with respect to the environmental condition of the property. As a result of these activities, it has been 29determined that: 30 31a.The property has been the subject of environmental investigation since 1992. 32 33b.The School District, after finding environmental contamination on the property, applied to 34the Minnesota Pollution Control Agency (“MPCA”) Voluntary Investigation and Clean-Up 35Program (“VIC Program”). 36 Page 1of 2