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HomeMy WebLinkAboutEDA August 18, 1998 , \ '.-/ , , o '-J CITY of ANDOVER 1685 CROSSTOWN BOULEVARD N.w, . ANDOVER, MINNESOTA 55304 . (612) 755-5100 Economic Development Authority Meeting - Tuesday, August 18, 1998 agenda Call to Order - 7:00 PM Bookmark Name Approval of Minutes minutes Discussion Items 1. Consider Relocation Payment/Commercial Auto relocation 2. Schedule TourNarious Commercial Parks in Other Cities 3. Other Business Adjournment " tour CITY OF ANDOVER REQUEST FOR EDA ACTION i DATE:August 18, 1998 AGENDA SECTION Approval of Minutes ORIGINATING DEPARTMENT Oty Clerk ~.~ . ITEM NO. Approval of Minutes The Economic Development Authority is requested to approve the following minutes: August 4,1998 Regular EDA Meeting (Nowak absent) \ , / CITY OF ANDOVER REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION / DATE: August 18, 1998 AGENDA SECTION ORIGINATING DEPARTMENT EDA Meeting City Administrator Richard Fursman ITEM NO. \ , Consider Relocation Payment/Commercial Auto REQUEST: The Economic Development Authority is requested to consider authorizing a payment of another one- quarter of moving expenses to Charles Mistelski. Crushers and a clean-up crew have been operating over the past six (6) weeks at Commercial Auto Parts and have removed a significant amount of the inventory. The City's relocation consultant indicated at the beginning of the process that based on two (2) bids, the cost of moving the salvage yard would be $550,000. A single payment of $150,000 has been paid to Commercial for relocation which occurred earlier in the year. The yard has been reduced by what appears to be 80 percent, so an additional ; payment of$150,000 seems appropriate. .I The City differs with the owner on eligible relocation expenses. The City considers parts sold or crushed and then removed from the property a transaction and not a move to another location. The fact remains, a significant portion of the yard has been cleared; therefore it is probable that relocation expenditures have been incurred. To date, the City has no verifiable information or confirmation to support the additional payments of $150,000, other than what can be interpreted visually through inspection of the yard. While staff recommends making available funds in consideration of progress on the yard, future reimbursement is not recommended without invoices or similar appropriate documentation of moving expenses. Staff further recommends that the City Administrator and City Attorney be given oversight authority over the disbursement of the $150,000 to be incrementally distributed as progress is shown. Sa mule Motion The Economic Development Authority authorizes the payment of $150,000 in moving expenses to Charles Mistelski incurred at Commercial Auto Parts to be distributed by the City Administrator and City Attorney as additional moving goals are met. CITY OF ANDOVER REQUEST FOR EDA ACTION DATE: Auqust 18,1998 AGENDA SECTION Discussion Item ORIGINATING DEPARTMENT Scott Erickson, Engineering ITEM NO. Schedule TourNarious Commercial Parks in Other Cities ex. The EDA is requested to consider a tour of commercial areas in consideration of ideas for the Andover Commercial Park. \ CITY OF ANDOVER REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY AND CITY COUNCIL ACTION DATE: August 18, 1998 AGENDA SECTION ORIGINATING DEPARTMENT EDA & City Council Meeting City Administrator Richard Fursman ITEM NO. ADD-ON REOUEST: The City Council and Economic Development Authority are requested to approve minor changes to the Agreement and Covenant Not to Sue which was developed for the City's protection when dealing with the redevelopment of the old salvage yard area. The document was reviewed and approved previously, however, the EPA has made subsequent minor changes to the document which requires the City to take the redundant action of approving this again. AGREEMENT AND COVENANT NOT TO SUE UNDER SECTION 122(h) OF CERCLA, 42 U.S.C. ~ 9622(h) SOUTH ANDOVER SUPERFUND SITE ANDOVER, ANOKA COUNTY, MINNESOTA I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII. XVIII . XIX. TABLE OF CONTENTS JURISDICTION BACKGROUND . PARTIES BOUND DEFINITIONS WORK TO BE PERFORMED ACCESS . . . . . . . DUE CARE/COOPERATION FAILURE TO COMPLY WITH AGREEMENT CERTIFICATION . . . . . . . . . COVENANT NOT TO SUE BY U.S. EPA RESERVATIONS OF RIGHTS BY U.S. EPA COVENANT NOT TO SUE BY SETTLING PARTIES. EFFECT OF SETTLEMENT/CONTRIBUTION PROTECTION RETENTION OF RECORDS . . NOTICES AND SUBMISSIONS. INTEGRATION/APPENDICES PUBLIC COMMENT EFFECTIVE DATE , . TERMINATION 1 1 5 6 8 9 10 10 11 11 12 13 14 15 16 17 18 18 18 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 5 IN THE MATTER OF: AGREEMENT AND COVENANT NOT TO SUE South Andover Site Andover, Anoka County, Minnesota U.S. EPA, REGION 5 CERCLA Docket No. City of Andover, Andover Economic Development Authority, Settling Parties. PROCEEDING UNDER SECTION 122 (h) (1) OF CERCLA 42 U.S.C. ~ 9622(h) (1) I. JURISDICTION 1. This Agreement and Covenant Not to Sue ("Agreement") is entered into pursuant to the authority vested in the Administrator of the U.S. Environmental Protection Agency ("U.S. EPA") by Section 122 (h) (1) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), 42 U.S.C. ~ 6922 (h) (1), and to the authority of the Attorney General of the United States to compromise and settle claims of the United States. The authority vested in the Administrator of U.S. EPA under Section 122(h) (1) of CERCLA has been delegated to the Regional Administrators of the U.S. EPA by U.S. EPA Delegation No. 14-14-0 (Oct. 31, 1989). Th~ Regional Administrator for Region 5 delegated this authority to the Director of the Superfund Division by U.S. EPA Delegation No. 14- 14 - D (Ma y 2, 1996). 2. This Agreement is made and entered into by U.S. EPA, and the City of Andover and the Andover Economic Development Authority ("Settling Parties"). Each Settling Party consents to and will not contest U.S. EPA's jurisdiction to enter into this Agreement or to implement or enforce its terms. I I . BACKGROUND 3. This Agreement concerns the South Andover Superfund Site ("Site") located in the City of Andover, Anoka County, Minnesota. The Site is a "facility" as defined by Section 101(9) of CERCLA, 42 U.S.C. ~ 9601(9). 4. The Site is located at 2050 Bunker Lake Boulevard in the southern area of the City of Andover, Minnesota, and lS comprised of several parcels of land which jointly total approximately 50 acres. The Sice is irregula~ in shape. Bunker Lake Boulevard defines the northern extent of che Site, while Jay Street is located approximately 500 feet east of the Site. 5. Several small businesses lnvolved with used car and auto part sales, auto salvage operations, and auto body repair existed both at the Site and adjacent to the Site along both Bunker Lake Boulevard and Jay Street. Increased residential development was initiated 1/4-mile north of the Site in the early 1970s, and continued development is occuring to the east, north, and south. 6. Waste storage and disposal activities began at the Site during the mid-1950s. More than 1,000 drums of waste were stored at the Site. Ink, ink and paint sludge, adhesives, chlorinated and nonchlorinated solvents were stored, disposed of in trenches, and burned at the Site. Solvent recovery, the storage of transformers and salvaged electrical equipment, and smelting have also occurred at the Site. Solid and liquid chemical waste dumping and open pit burning of solvents occurred during the 1960s and 1970s. Drum storage and chemical waste disposal areas were partially obscured by auto salvage operations and more than three million waste tires. Two tire fires occurred at the Site. The first occurred during July 1988 and was extinguished with water. A second, much larger tire fire occurred in February 1989, The fire was smothered with sand. 7. Hazardous substances within the definition of Section 101(14) of CERCLA, 42 USC ~ 9601(14), were released into the environment at or from the Site, posing a risk to human health or the environment. These substances included: polycyclic aromatic hydrocarbons ("PAHs"), polychlorinated biphenyls ("PCBs"), lead, and antimony. 8. In July 1985, U.S. EPA notified twenty-one potentially responsible parties ("PRPs") that it intended to conduct a Remedial Investigation/Feasibility Study ("RIfFS") at the Site, but that U.S. EPA would consider an offer by the PRPs to conduct the RIfFS. Failure on the part of the PRPs to negotiate such action resulted in the U.S. EPA conducting the RIfFS, in response to the release or threatened release of hazardous substances at or from the Site. 9. On October 22, 1981, U.S. EPA proposed the Site for listing on the National Priorities List ("NPL"), set forth at 40 C.F.R. Part 300, Appendix B, pursuant to Section 105 of CERCLA, 42 U.S.C. ~ 9605. Final listing of the Site on the NPL occurred on September 8, 1983. 2 10. From the fall of 1985 through the summer of 1987, U.S. EPA undertook an RI in response to a release or a substantial threat of a release of hazardous substances to the groundwater at the Site. Because contamination was found in groundwater, an FS was conducted to evaluate possible remedies. U.S. EPA issued a Record of Decision ("ROD") on March 30, 1988, which documented a decision for remedial action of groundwater. U.S. EPA issued an amendment to the ROD on June 9, 1992, as a result of a Design Investigation ("DI"), which revealed that a discrete plume of contamination did not exist at the Site. The amended ROD required only continued monitoring of groundwater, the abandonment of wells, and re-sampling of wells if action levels are exceeded. 11. In June 1990, in response to a release or a substantial threat of a release of hazardous substances in soils at the Site, U.S. EPA commenced another RI/FS. The RI was completed on July 30, 1991, and the FS was completed on December 19, 1991. U.S. EPA's remedy for contaminated soil was documented in another ROD issued on December 24, 1991. The major components of the selected remedy included the excavation and biological treatment of predominantly PAH-contaminated soil, the excavation and off- site disposal of PCB, heavy metal, and PAH-contaminated soil, and removal of drums. In May 1994, an amendment to the ROD for soil was issued. This action amended the original decision so that PAH-contaminated soils could be taken off-site for thermal treatment. 12. The final remedy for the Site consisted of: excavation and off-site thermal treatment of soil contaminated with carcinogenic PAHs exceeding 4 parts per million ("ppm"); excavation and off-site landfilling of soil contaminated with lead exceeding 500 ppm, antimony exceeding 25 ppm, or PCBs exceeding 2 ppm; three years of post-excavation groundwater monitoring; well abandonment; and three years of post-excavation surface water and sediment monitoring. 13. In performing response actions at the Site, U.S. EPA incurred response costs at or in connection with the Site. On January 28, 1991, the United States of America ("the United States"), on behalf of the Administrator of U.S. EPA, filed a complaint pursuant to Section 106 and 107 of CERCLA, 42 U.S.C. ~~ 9606, 9607, against a number of PRPs to recover the response costs incurred by U.S. EPA. On August 27, 1993, the United States District Court for the District of Minnesota entered a Consent Decree (United States of America v. Acme Tag Company. et al., Civil Action No. 3-91-51), under which the defendants who settled therein ("Settling Defendants") agreed, at their expense, 3 to perform Remedial Design/Remedial Action ("RD/RA") at the Site and implement the remedies selected in the RODs and their' amendments. They also agreed tu pay $2,773,000 in partial reimbursement of U.S. EPA's Past Response Costs, as well as all future U.S. EPA response costs, including oversight costs. Mr. Cecil Heidelberger, an owner of property at the Site, was not a signatory to the Consent Decree. 14. On December 16, 1994, the District Court granted the United States' motion for partial summary judgment as to the amount of Mr. Cecil Heidelberger's liability for unreimbursed Past Response Costs incurred at the Site. The amount of these costs, which included U.S. EPA costs, U.S. Department of Justice costs, and prejudgment interest, was $1,073,441.98. To date, Mr. Heidelberger has not paid the amount of this judgment. 15. U.S. EPA's unrecovered Past Response Costs as of February 1994, before interest, were $525,219.96. 16. The Settling Defendants began remedial actions at the Site in July 1994. A pre-final inspection was conducted on September 30, 1994. A final in~?ection was conducted on November 15, 1994, which indicated that all remaining construction items identified in the pre-final inspection were completed. A Preliminary Site Close Out Report ("PCOR") was signed by William E. Mqno, Director of the Waste Management Division, U.S. EPA, Region 5, on November 1, 1994. 17. The Andover Economic Development Authority ("the Authority"), acting at all times as an alter ego for; and on behalf of, the City of Andover, acquired parcels of property at the Site through purchase; through the exercise of eminent domain authority by purchase or condemnation; or through tax forfeiture, abandonment, bankruptcy, or other circumstances, as outlined in Appendix A, attached hereto, for the purpose of redeveloping the properties (hereinafter, "the Properties") as part of a planned industrial/commercial park. The legal descriptions of the Properties are provided in Appendix A. 18. The Settling Parties represent, and for the purposes of this Agreement U.S. EPA relies on those representations, that the Settling Parties' involvement at the Site is limited to the following: a. The Settling Parties did not conduct or permit the generation, transportation, storage, treatment or disposal of any hazardous substances at the Site; 4 b. The Settling Parties did not ~oncribute to the release or threat of release of hazardous substances at the Site through any action or omission, or play any role in the management o~ operation of any businesses or activities at the Site at any relevant time; c. The Settling Parties acquired the Properties at the Site for the purpose of developing, as a public project, a commercial/light industrial park. The project, as planned, encompasses the entire Site and approximately 40 acres of additional real estate adjacent to or surrounding the Site. d. The Settling Parties, pursuant to their participation in the Minnesota Pollution Control Agency's Voluntary Investigation and Cleanup Program ("VIC Program"), and in the interest of redeveloping the Properties as part of an industrial/commercial park, have conducted soil testing on the Properties and have discovered additional hazardous substances, as defined by Section 101(14) of CERCLA, 42 U.S.C. 5 9601(14). The Settling Parties have undertaken, at their expense, in cooperation with the Minnesota Pollution Control Agency ("MPCA") and U.S. EPA, to excavate and properly dispose of such hazardous substances; e. The Settling Parties have incurred costs, and will incur approximately $10 million in total costs, in re- developing Site and off-Site properties asa planned commercial/light industrial park. Such costs include acquiring and remediating the Properties under the MPCA's VIC Program. The total expected re-development costs are outlined in Appendix B. 19. U.S. EPA and Settling Parties desire to resolve the Settling Parties' alleged civil liabilities for U.S. EPA's Past Response Costs at the Site and for any U.S. EPA costs relating to Existing Contamination at the Site arising from the Settling Parties' ownership of Site properties, without litigation and without the admission or adjudication of any issue of fact or law. III. PARTIES BOUND 20. This Agreement shall apply to and be binding upon the United States, and shall apply to and be binding on the Settling Parties, their officers, directors, employees, and agents. Each 5 signatory of a Party to this Agreement represents chat he or she is fully authorized to enter into the terms and conditions of this Agreement and to legally bind such Party. 21. Notwithstanding any other provisions of this Agreement, all of the rights, benefits and obligations conferred upon the Settling Parties under this Agreement may be assigned or transferred to any person after prior and reasonable written notice to U.S. EPA, except that U.S. EPA shall not consent to the assignment or transfer of any of the rights, benefits and obligations under this Agreement to any person whose liability for Past Response Costs or response actions at the Site has been legally established prior to the transfer of the Properties, or whose liability for such costs or actions has been alleged by the United States in any judicial or administrative proceeding. U.S. EPA shall inform Settling Parties of the withholding of its consent to the transfer of the rights, benefits, and obligations to such persons within sixty (60) days after U.S. EPA's receipt of Settling Parties' notice of the transfer of any Properties. 22. The Settling Parties agree to pay the reasonable costs incurred by U.S. EPA to review any subsequent requests for consent to assign or transfer any of the Properties; 23. In the event of an assignment or transfer of any of the Properties or an assignment or transfer of an interest in any of the Properties, the assignor or transferor shall continue to be bound by all the terms and conditions, and subject to all the benefits, of this Agreement except as U.S. EPA and the assignor or transferor agree otherwise and modify this Agreement, in writing, accordingly. Moreover, prior to or simultaneous with any assignment or transfer of any of the Properties, the assignee or transferee must consent in writing to be bound by the terms of this Agreement including but not limited to the certification requirement in Paragraphs 33 and 35 of this Agreement in order for the Covenant Not to Sue in Section X and the Contribution Protection in Section XIII to be available to that party. The Covenant Not To Sue in Section X and the Contribution Protection in Section XIII shall not be effective with respect to any assignees or transferees whc :ail to provide such written consent to U.S. EPA. IV. DEFINITIONS 24. Unless otherwise expressly provided herein, terms used in this Agreement which are defined in CERCLA or in regulations promulgated under CERCLA shall have the meaning assigned to them in CERCLA or in such regulations. Whenever terms listed below 6 are used in this Agreement or in any appendix attached hereto, the following definitions shall apply: a. "CERCLA" shall mean the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. ~ 9601, et ~. b. "Agreement" shall mean this Agreement and Covenant Not to Sue and any attached appendices. In the event of conflict between this Agreement and any appendix, the Agreement shall control. c. "Day" shall mean a calendar day. In computing any period of time under this Agreement, where the last day would fall on a Saturday, Sunday, or federal holiday, the period shall run until the close of business of the next working day. d. "U.S. EPA" shall mean the United States Environmental Protection Agency and any successor departments, agencies or instrumentalities of the United States. e. "Existing ContaminationU shall mean any hazardous substances, pollutants, or contaminants, as defined by Section 101(14), 42 U.S.C. ~ 9601(14), present or existing on or under the Site as of the effective date of this Agreement. f. "Interest" shall mean interest at the current rate specified for interest on investments of the Hazardous Substance Superfund established by 26 U.S.C. ~ 9507, compounded annually on October 1 of each year, in accordance with 42 U.S.C.~ 9607(a). g. "Paragraph" shall mean a portion of this Agreement identified by an arabic numeral or a lower case letter. h. "Parties" shall mean U.S. EPA and the Settling Parties. i. "Past Response Costs" shall mean all costs, including but not limited to direct and indirect costs, that U.S. EPA or the U.S. Department of Justice on behalf of U.S. EPA has paid at or in connection with the Site through February 1994, plus accrued Interest on all such costs through such date. j. "The PropertiesU shall mean the parcels of real property at the Site currently held in title by the Andover Economic Development Authority, as an alter ego for and on behalf of the City of Andover. The Properties are identified by their legal descriptions in Appendix A. 7 k. "Section" shall mean a portion of this Agreement identified by a roman numeral. 1. "Settling Parties" shall mean the City of Andover, a municipal corporation, Andover City Hall, 1685 Crosstown Boulevard, Andover, Minnesota 55304, and the Andover Economic Development Authority, a body corporate and politic. m. encompassing Boulevard in generally on "Site" shall mean the South Andover Superfund approximately 50 acres, located at 2050 Bunker Andover, Anoka County, Minnesota, and depicted the map included in Appendix C. site, Lake n. "United States" shall mean the United States of America, including its departments, agencies, and instrumentalities. V. WORK TO BE PERFORMED 25. The Settling Parties hereby agree that they shall continue to participate in the MPCA's VIC Program for further remediation relating to Existin~ Contamination at the Site until such time that a written Certificate of Completion is issued by MPCA to the Settling Parties indicating that the Settling Parties have satisfactorily completed all actions and have met all relevant performance standards necessary for further remediation of the Site under the VIC Program. The Settling Parties further agree that if separate Certificates of Completion are to be issued by the MPCA for different portions of work performed or to be performed by the Settling Parties, or for different parcels of property or other geographically-defined areas at the Site, the Settling Parties shall continue to participate in the VIC Program until such time that all Certificates of Completion are issued that are necessary for a determination by the MPCA that the remediation work required for all parts of the Site has been completed, and that all performance standards for all parts of the Site have been met. All of the clean-up and investigation workplans, reports, determinations, assessments, and other documents pertaining to the Settling Parties' remediation under the VIC Program, including, but not necessarily limited to, those documents supplied to U.S. EPA by the Settling Parties and identified in Appendix 0 to this Agreement, are herein incorporated by reference. 8 26. The Settling Parties shall immediately notify U.S. EPA upon their receipt of each written Certificate of Completion issued by MPCA, and shall remit copies of each Certificate of Completion to the persons identified below within seven (7) days of receipt: John J. O'Grady Remedial Project Manager U.S. EPA, Region 5 (SR-6J) 77 West Jackson Boulevard Chicago, Illinois 60604 and Kevin C. Chow Assistant Regional Counsel U.S. EPA, Region 5 (C-14J) 77 West Jackson Boulevard Chicago, Illinois 60604 VI. ACCESS 27. The Settling Parties and each of their assignees, successors in interest, lessees, and sublessees, who hold an interest in any of the properties, agree to provide to U.S. EPA, its authorized officers, employees, representatives, and all other persons performing response actions under U.S. EPA oversight, an irrevocable right of access at all reasonable times to any of the Properties and to any other property to which access is required for the implementation of response actions at the Site, if necessary, to the extent access to such other property is controlled by the Settling Parties, for the purposes of performing and overseeing response actions at the Site under federal law. U.S. EPA agrees to provide reasonable notice to the Settling Parties of the timing of response actions to be undertaken at the Properties. Notwithstanding any provision of this Agreement, U.S. EPA retains all of its access authorities and rights, including enforcement authorities related thereto, under CERCLA, the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, 42 U.S.C. S 6901, ("RCRA") ~~, and any other applicable statute or regulation, including any amendments thereto. 28. Within 30 days after the effective date of this Agreement, the Settling Parties shall record a certified copy of this Agreement with the Recorder's Office, Anoka County, State of Minnesota. Thereafter, each deed, title, or other instrument conveying an interest in any of the Properties shall contain a 9 notice stating that the Properties are subject to this Agreement. A copy of these documents should be sent to the persons listed in Section XV (Notices and Submissions) . 29. The Settling Parties shall ensure that assignees, successors in interest, lessees, and sublessees, of any of the Properties shall, at the time of receipt of their interest in any of the Properties from the Settling Parties, agree to provide the same access and cooperation. The Settling Parties shall ensure that a copy of this Agreement is provided to any current lessee or sublessee on or of any of the Properties as of the effective date of this Agreement and shall ensure that any subsequent leases, subleases, assignments or transfers of any of the Properties or an interest in the Properties are consistent with this Section, and Section III (Parties Bound), of the Agreement. VII. DUE CARE/COOPERATION 30. The Settling Parties shall exercise due care at the Properties with respect to the Existing Contamination and shall comply with all applicable local, State, and federal laws and regulations. The Settling Parties recognize that the implementation of any additional response actions at the Site, if necessary, may interfere with the Settling Parties' use of the Properties, and may require closure of any operations or a part thereof. The Settling Parties agree to cooperate fully with U.S. EPA in the implementation of any additional response actions at the Site and further agree not to interfere with such response actions. U.S. EPA agrees, consistent with its responsibilities under applicable law, to use reasonable efforts to minimize any interference with the Settling Parties' operations by such entry and response. In the event the Settling Parties become aware of any action or occurrence which causes or threatens a release of hazardous substances, pollutants, or contaminants at or from the Site that constitutes an emergency situation or may present an immediate threat to public health or welfare or the environment, Settling Parties shall immediately take all appropriate action to prevent, abate, or minimize such release or threat of release, and shall, in addition to complying with any applicable notification requirements under Section 103 of CERCLA, 42 U.S.C. ~ 9603, or any other law, immediately notify U.S. EPA of such release or threatened release. VIII. FAILURE TO COMPLY WITH AGREEMENT 31. In addition to any other remedies or sanctions available to U.S. EPA by virtue of Settling Parties' failure to comply with the requirements of this Agreement, any Settling 10 Party who fails or refuses to comply with any term or condition of this Agreement shall be subject to enforcement action pursuant to Section 122(h) (3) of CERCLA, 42 U.S.C. 5 9622(h) (3). If the United States, on behalf of U.S. EPA, brings an action to enforce this Agreement, Settling Parties shall reimburse the United States for all costs of such action, including but not limited to costs of attorney time. 32. The obligations of Settling Parties under this Agreement are joint and several. In the event of the failure of anyone or more Settling Parties to meet any obligations required under this Agreement, the remaining Settling Party shall be responsible for such obligations. IX. CERTIFICATION 33. By entering into this Agreement, the Settling Parties certify that to the best of their knowledge and belief they have fully and accurately disclosed to U.S. EPA all information known to the Settling Parties and all information in the possession or control of their officers, directors, employees, contractors and agents which relates in any way to any Existing Contamination or any past or potential future release of hazardous substances, pollutants or contaminants at or from the Site and to its qualification for this Agreement. The Settling Parties also certify that to the best of their knowledge and belief they have not caused or contributed to a release or threat of release of hazardous substances or pollutants or contaminants at the Site. 34. The Settling Parties further certify that the total costs expended and to be incurred by the Settling Parties for the acquisition, remediation, and re-development of the Properties at the Site have been fairly and reasonably estimated to be approximately $10,000,000. 35. If the United States determines that information provided by the Settling Parties subject to these certifications is not materially accurate and complete, the Agreement, within the sole discretion of the United States, shall be null and void and the United States reserves all rights it may have. X. COVENANT NOT TO SUE BY U.S. EPA 36. Except as specifically provided in Section XI (Reservations of Rights by U.S. EPA), U.S. EPA covenants not to sue or take any other civil or administrative action under Sections 106 or 107(a) of CERCLA, 42 U.S.C. 55 9606 or 9607(a), against Settling Parties for any and all civil liability for 11 reimbursement of U.S. EPA's Pase KCsponse Costs associated with this Site, or for injunctive relief or reimbursement of response costs under Sections 106 or 107;~) of CERCLA, 42 U.S.C. ~~ 9606 or 9607(a), with respect to the Existing Contamination. This covenant shall be effective only with respect to those parcels of property or other geographically-defined areas at the Site, or to those portions of the work performed or to be performed by the Settling Parties under the VIC Program, which are the subject of a written Certificata of Completion issued by the MPCA, indicating that the Settling Parties have satisfactorily completed the remedial activities and have met all performance standards relevant to the parcels or areas that were remediated, or to the work that was performed, as required by Paragraph 25 of this Agreement. This covenant shall take effect with respect to those parcels or property or other geographically-defined areas, or those portions of work performed or to be performed by the Settling Parties, that are the subject of a Certificate of Completion, upon the date that the Certificate of Completion becomes effective. This covenant not to sue is conditioned upon the satisfactory performance by Settling Parties of their obligations under this Agreement. This covenant not to sue extends only to Settling Parties and does not extend to any other person, except as otherwise provided in Section III (Parties Bound). XI. RESERVATIONS OF RIGHTS BY U.S. EPA 37. The covenant not to sue by U.S. EPA set forth in Paragraph 36 does not pertain to any matters other than those expressly identified therein. U.S. EPA reserves, and this Agreement is without prejudice to, all rights against Settling Parties with respect to all other matters, including but not limited to: a. any liability for failure of Settling Parties, or their successors, assignees, lessees or sublessees, to meet a requirement of this Agreement; b. any liability resulting from past or future releases of hazardous substances, pollutants or contaminants, at or from the Site caused or contributed to by the Settling Parties, their successors, assignees, lessees or sublessees; c. any liability resulting from exacerbation by Settling Parties, their successors, assignees, lessees, or sublessees, of Existing Contamination; 12 d. any liability resulting from the release or threat of release of hazardous substances, pollutants, or contaminants, at the Site after the effective date of this Agreement, not within the definition of Existing Contamination; e. criminal liability; f. liability for damages for injury to, destruction of, or loss of natural resources, and for the costs of any natural resource damage assessments; and g. liability for violations of local, State or federal law or regulations. 38. Nothing in this Agreement is intended to be nor shall it be construed as a release, covenant not to sue, or compromise of any claim or cause of action, administrative or judicial, civil or criminal, past or future, in law or in equity, which the United States may have against any person, firm, corporation or other entity not a signatory to this Agreement, except as otherwise provided in Section III (Parties Bound). 39. With respect to any claim or cause of action asserted by the United States, the Settling Parties, their successors, assignees, lessees, or sublessees shall bear the burden of proving that the claim or cause of action, or any part thereof, is attributable solely to Existing Contamination. 40. Nothing in this Agreement is intended to limit the right of U.S. EPA to undertake future response actions at the Site or to seek to compel parties other than the Settling Parties to perform or pay for response actions at the Site. Nothing in this Agreement shall in any way restrict or limit the nature or scope of response actions which may be taken or be required by U.S. EPA in exercising its authority under federal law. Settling Parties acknowledge that they have acquired property where response actions have been and may be required. XII. COVENANT NOT TO SUE BY SETTLING PARTIES 41. Settling Parties agree not to assert any claims or causes of action against the United States, or its contractors or employees, with respect to Past Response Costs or this Agreement, including but not limited to: a. any direct or indirect claim for reimbursement from the U.S. EPA Hazardous Substance Superfund established by 26 U.S.C. 5 9507, based on Sections 106(b) (2), 107, Ill, 112, or 113 13 of CERCLA, 42 U.S.C. 55 9606(b) (2), 9607, 9611, 9612, or 9613, or any other provision of law; b. any claims arising out of the response actions at the Site, including those for which the Past Response Costs were incurred; and c. any claim against the United States pursuant to Sections 107 and 113 of CERCLA, 42 U.S.C. 55 9607 and 9613, relating to Past Response Costs or response actions undertaken at the Site. 42. Nothing in this Agreement shall be deemed to constitute approval or preauthorization of a claim within the meaning of Section 111 of CERCLA, 42 U.S.C. 5 9611, or 40 C.F.R. 300.700(d). XIII. EFFECT OF SETTLEMENT/CONTRIBUTION PROTECTION 43. Nothing in this Agreement shall be construed to create any rights in, or grant any cause of action to, any person not a Party to this Agreement. U.S. EPA and Settling Parties each reserve any and all rights (including, but not limited to, any right to contribution), defenses, claims, demands, and causes of action which each Party may have with respect to any matter, transaction, or occurrence relating in any way to the Site against any person not a Party hereto. 44. U.S. EPA and Settling Parties agree that the actions undertaken by Settling Parties in accordance with this Agreement do not constitute an admission of any liability by any Settling Party. Settling Parties do not admit, and retain the right to controvert in any subsequent proceedings other than proceedings to implement or enforce this Agreement, the validity of the facts or allegations contained in Section II of this Agreement. 45. The Parties agree that Settling Parties are entitled, as of the effective date of this Agreement, to protection from contribution actions or claims as provided by Sections 113(f) (2) and 122(h) (4) of CERCLA, 42 U.S.C. 55 9613(f) (2) and 9622(h) (4), for "matters addressed" in this Agreement. The "matters addressed" in this Agreement are all Past Response Costs incurred by U.S. EPA or by the U.S. Department of Justice on behalf of U.S. EPA; all response actions taken and all response costs incurred by any other person at this Site as of the effective date of this Agreement; and all response actions and all response costs to be incurred by U.S. EPA or any other person at this Site with respect to Existing Contamination at, on, or under the Properties. 14 46. Eacn Settling Party agrees that with respect to any suit or claim for contribution brought by it for matters related to this Agreement, it will notify U.S. EPA in writing no later than 60 days prior to the initiation of such suit or claim. Each Settling Party also agrees that, with respect to any suit or claim for contribution brought against it for matters related to this Agreement, it will notify u.S. EPA in writing within 10 days of service of the complaint or claim upon it. In addition, each Settling Party shall notify u.S. EPA within 10 days of service or receipt of any Motion for Summary Judgment and within 10 days of receipt of any order from a court setting a case for trial, for matters related to this Agreement. 47. In any subsequent administrative or judicial proceeding initiated by U.S. EPA, or by the United States on behalf of U.S. EPA, for injunctive relief, recovery of response costs, or other appropriate relief relating to the Site, Settling Parties shall not assert, and may not maintain, any'defense or claim based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion, claim-splitting, or other defenses based upon any contention that the claims raised in the subsequent proceeding were or should have been brought in the instant case; provided, however, that nothing in this Paragraph affects the enforceability of the covenant not to sue by U.S. EPA set forth in Section X of this Agreement. XIV. RETENTION OF RECORDS 48. Until 10 years after the effective date of,this Agreement, each Settling Party shall preserve and retain all records and documents now in its possession or control, or which come into its possession or control, that relate in any manner to response actions taken at the Site or to the liability of any person for response actions conducted and to be conducted at the Site, regardless of any corporate retention policy to the contrary. 49. After the conclusion of the document retention period in the preceding paragraph, Settling Parties shall notify U.S. EPA at least 90 days prior to the destruction of any such records or documents, and, upon request by U.S. EPA, Settling Parties shall deliver any such records or documents to U.S. EPA. Settling Parties may assert that certain documents, records, or other information are privileged under the attorney-client privilege or any other privilege recognized by federal law. If Settling Parties assert such a privilege, they shall provide U.S. EPA with the following: 1) the title of the document, record, or information; 2) the date of the document, record, or information; 15 3) the name and title of the author of the document, record, or information; 4) the name and title of each addressee and' recipient; 5) a description of cne subject of the document, record, or information; and 6) the privilege asserted. However, no documents, reports, or other information created or generated pursuant to the requirements of this or any other judicial or administrative settlement with the United States shall be withheld on the grounds that they are privileged. If a claim of privilege applies only to a portion of a document, the document shall be provided to U.S. EPA in redacted form to mask the privileged information only. Settling Parties shall retain all records and documents that they claim to be privileged until U.S. EPA has had a reasonable opportunity to dispute the privilege claim and any such dispute has been resolved in Settling Parties' favor. 50. By signing this Agreement, each Settling Party certifies individually that, to the best of its knowledge and belief, it has: a. conducted a thorough, comprehensive, good faith search for documents, and has f~lly and accurately disclosed to U.S. EPA, all information currently in its possession, or in the possession of its officers, directors, employees, contractors or agents, which relates in any way to the ownership, operation or control of the Site, or to the ownership, possession, generation, treatment, transportation, storage or disposal of a hazardous substance, pollutant or contaminant at or in connection with the Site; b. not altered, mutilated, discarded, destroyed or otherwise disposed of any records, documents or other information relating to its potential liability regarding the Site, after notification of potential liability or the filing of a suit against the Settling Party regarding the Site; and c. fully complied with any and all U.S. EPA requests for information regarding the Site pursuant to Sections 104(e) and 122(e) of CERCLA, 42 U.S.C. ~~ 9604(e) and 9622(e), and Section 3007 of the Resource, Conservation and Recovery Act, 42 U.S.C. ~ 6927. XV. NOTICES AND SUBMISSIONS 51. Whenever, under the terms of this Agreement, notice is required to be given or a document is required to be sent by one Party to another, it shall be directed to the individuals at the addresses specified below, unless those individuals or their successors give notice of a change to the other Parties in 16 writing. Written notice as specified herein shall constitute complete satisfaction of any written notice requirement of this Agreement with respect to U.S. EPA and Settling Parties. As to U.S. EPA: John J. O'Grady Remedial Project Manager U.S. EPA, Region 5 (SR-6J) 77 West Jackson Boulevard Chicago, Illinois 60604 and Kevin C. Chow Assistant Regional Counsel U.S. EPA, Region 5 (C-14J) 77 West Jackson Boulevard Chicago, Illinois 60604 As to Settlina Parties: William G. Hawkins, Esq. William G. Hawkins and Associates 2140 Fourth Avenue North Anoka, Minnesota 55303 XVI. INTEGRATION/APPENDICES 52. This Agreement and its appendices constitute the final, complete and exclusive agreement and understanding among the Parties with respect to the settlement embodied in this Agreement. The Parties acknowledge that there are no representations, agreements or understandings relating to the settlement other than those expressly contained in this Agreement. 53. The following appendices are attached to and incorporated into this Agreement: Appendix A is a summary of the Authority's and City of Andover's acquisitions of properties at the Site and contains the legal descriptions of the Properties; Appendix B is a summary of the Settling Parties' expected total approximate costs for the acquisition, remediation, and re- development of the Properties as part of a planned commercial/light industrial park; 17 Appendix C is a map of the Site; Appendix D is a list of clean-up and investigation workplans,reports, and other documents supplied to U.S. EPA by the Settling Parties pertaining to the Settling Parties' remediation under the MPCA's VIC Program. All workplans, reports, and related documents pertaining to the Settling Parties' remediation, including, but not necessarily limited to, those identified in Appendix D, are incorporated by reference. XVII. PUBLIC COMMENT 54. This Agreement shall be subject to a public comment period of not less than 30 days pursuant to Section 122(i) of CERCLA, 42 U.S.C. 5 9622(i). In accordance with Section 122(i) (3) of CERCLA, U.S. EPA may modify or withdraw its consent to this Agreement if comments received disclose facts or considerations which indicate that this Agreement is inappropriate, improper or inadequate~ XVIII. EFFECTIVE DATE 55. The effective date of this Agreement shall be the date upon which U.S. EPA issues written notice that the public comment period pursuant to Paragraph 54 has closed and that comments rece~ved, if any, do not require modification of or U.S. EPA withdrawal from this Agreement. XIX. TERMINATION 56. If any Party believes that any or all of the obligations under this Agreement are no longer necessary to ensure compliance with the requirements of this Agreement, that Party may request in writing that the other Party agree to terminate the provision or provisions establishing such obligations; provided, however, that the provision or provisions in question shall continue in force unless and until the party requesting such termination receives written agreement from the other party to terminate such provision or provisions. 18 IT IS SO AGREED: U.S. Environmental Protection Agency By: William E. Muno Superfund Division Director U.S. Department of Justice By: Lois J. Schiffer Assistant Attorney General Environment and Natural Resources Division 19 Date Date THE UNDERSIGNED SETTLING PARTY enters into this Agreement'in the matter of U.S. EPA Docket Numb~L , relating to the South Andover Superfund Site, Andover, Anoka County, Minnesota: FOR SETTLING PARTY: City of Andover 1685 CrosJ~'Wleeoulevard NW Andover, Minnesota 55304 [Address] By: Its: [Name] Mayor [Date] By: Its: Clerk 20 THE UNDERSIGNED SETTLING PARTY enters into this Agreement in the matter of U.S. EPA Docket Number , relating to the South Andover Superfund Site, Andover, Anoka County, Minnesota: FOR SETTLING PARTY: Andover Econcmic Developnent Authority [Name] 1685 Crosstown Boulevard NW Andover, Minnesota 55304 [Address] By: [Name] [Date] Its: Chairman By: Its: Executive Director 21 APPENDIX A DESCRIPTION OF PROPERTIES ACQUIRED BY ANDOVER ECONOMIC DEVELOPMENT AUTHORITY AT THE SOUTH ~OVER SITE 1. Property acquired under Warranty Deed dated June 17, 1997 from James O. Liesinger and Arlene F. Liesinger, husband and wife, through negotiation and act of purchase. Leqal D~scriotion: Parcel 1: The north 417.416 feet of the west 241.708 feet, except the westerly 33 feet of the Northwest Quarter of the Northeast Quarter of the Southeast Quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota; and Parcel 2: The south 241.708 feet of the west 241.708 feet of the Southwest Quarter of the Northeast Quarter of the Southeast Quarter of Section 34, Township 32, Range 24, except the westerly 33 feet and the southerly 33 feet thereof, Anoka County, Minnesota together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: the lien of all unpaid special assessments and interest thereon. 2. Property acquired under Warranty Deed dated March 25, 1996 from William J. Packard, through negotiation and act of purchase. Leqal Descriotion: The South 208.708 feet of the North 626.124 feet of the West 241.708 feet, as measured along and parallel with the West and North lines of the Northeast 1/4 of the Southwest 1/4 Section 34, Township 32, Range 24, Anoka County, Minnesota; except the West 33.00 feet thereof. 3. Property acquired through eminent domain from Richard A. Heidelberger on August 22, 1996. Leqal Descriotion: That part of the Northeast Quarter of the Southwest Quarter, Section 34, Township 32, Range 24, Anoka County, Minnesota, as follows: Commencing at the Northwest corner thereof; thence East along the North line thereof 241.708 feet; thence South parallel with the West line 626.124 feet to the point of beginning; thence South parallel with the West line thereof 208.708; thence West parallel with the North line thereof to the West line thereof; thence North on the West line thereof 208.708 feet; thence East parallel with the North line thereof to the point of beginning. (Subject to easement for road purposes over the westerly 33 feet thereof.) Together with any appurtenant easements that provide access to such parcel. 4. Property acquired under Warranty Deed through negotiation and act of purchase from Richard A. Heidelberger on June 2, 1997. Leaal Descriotion: Parcel 2: The East 208.708 feet of the West 241.708 feet, of the Northeast Quarter of the Southwest Quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota. Except the North 834.832 feet, as measured along and parallel with the West ,line thereof. Also except the South 241.708 feet, as measured along and parallel with the West line thereof. Parcel 3: An undivided one-half interest in the following described property: The west 33 feet of the Northeast Quarter of the Southwest Quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota, lying south of the north 834.832 feet, and lying north of the south 241.708 feet thereof, as measured along the west line of said Northeast Quarter of the Southwest Quarter. 5. Property acquired under Warranty Deed dated May 5, 1995 from David Clyde Heidelberger, through negotiation and act of purchase. Leaal Descriotion: The West 483.416 feet of the South 241.708 feet of the Northeast Quarter of the Southwest Quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota, except the west 241.708 feet thereof. Together with a non-exciusive easement for ingress and egress over the West 33 feet of the Northeast Quarter of the Southwest Quarter of said Section 34, and over the South 33 feet of the West 241.708 feet of the Northeast Quarter of the Southwest Quarter of said Section 31. Seller warrants that Seller does not know of any wells on the described real property. 6. Property acquired under State Deed dated August 4, 1995 from the State of Minnesota, through tax forfeiture. Leaal Descriotion: The South 241.708 feet of the Northeast Quarter of the Southwest Quarter (NE 1/4 of SW 1/4) of Section 34, Township 32, Range 24, except the West 483.416 feet thereof; subject to easements of record, excepting and reserving to the said state, in trust for taxing districts concerned, all mineral and mineral rights, as provided by law. Further, the lands conveyed by this deed are not eligible for enrollment in a State of Minnesota funded program providing compensation for conservation of marginal land or wetlands. 7. Property acquired under State Deed dated May 6, 1997, from the State of Minnesota, after tax forfeiture. Leqal Descrintion: That part of the Northeast Quarter ~f the Southwest Quarter (NE 1/4 of SW 1/4) of Section 34, Township 32, Range 24, described as follows: Commencing at the Northwest corner of said quarter, quarter, thence East along the North line thereof 841.708 feet to the point of beginning, thence South parallel with the West line of said quarter, quarter 626.124 feet, thence West parallel with said North line 534 feet to intersect with a line parallel with and 307.708 feet East of West line thereof (as measured parallel with said North line), thence South parallel with said West line to a point 241.708 feet North of South line of said quarter, quarter (as measured parallel with said West line), thence East parallel with said North line to East line of said quarter, quarter, thence North along said East line to intersect with a line parallel with and 417.416 feet South of the North line of said quarter, quarter (as measured along said East line), thence West parallel with said North line 241.708 feet, thence North parallel with said East line 417.416 feet to said North line, thence West along said North line to the point of beginning. 8. Property acquired under Warranty Deed on December 5, 1997 from Marian F. Heidelberger, through negotiation and act of . purchase. Leqal Descrintion: That Part of the Northeast Quarter of the Southwest Quarter, Section 34, Township 32, Range 24, Anoka County, Minnesota, described as follows: Commencing at the Northwest corner of said Northeast Quarter of the Southwest quarter; thence Easterly along the North line of said Southwest Quarter on an assumed bearing of South 89 degrees 04 minutes 36 seconds East a distance of 764.93 feet to the actual point of beginning of the land to be described; thence South 09 degrees 03 minutes 28 seconds East a distance of 167.02 feet; thence North 89 degrees 04 minutes 36 seconds West a distance of 118.16 feet; thence North 41 degrees 30 minutes 50 seconds West a distance of 208.62 feet; thence North 0 degrees 07 minutes 06 seconds East a distance of 10.52 feet to the North line of said Northeast Quarter of the Southwest Quarter; thence South 89 degrees 04 minutes 36 seconds East a distance of 230.13 feet along said North line to the point of beginning. 9. Property acquired under Quit Claim Deed on March 27, 1998 from parmak, Inc., through negotiation and the act of purchase. Parcell: quarter of follows: That part of the Northeaat one-quarter of the Southwest one- Section 34, Township 32, Range 24, Anoka County, Minnesota as Commencing at the Northwest corner thereof, thence East along the North line thereof 841.708 feet; thence South parallel with the West line thereof 417.416 feet; thence West and parallel with the North line a distance of 534 feet to the point of beginning of the land to be described; thence West 66 feet to a point of intersection with a line parallel with and distant .241.708 feet East of the West line thereof as measured along a line parallel with the North line thereof; thence South parallel with the West line of said Northeast Quarter of the Southwest Quarter to a point 241.708 feet North of the South line of said Northeast Quarter of the Southwest Quarter measured parallel with the West line thereof; thence East parallel with the North line a distance of 66 feet; thence North and parallel to the West line to the point of beginning. Parcel 2: The West 33 feet of the Northeast Quarter of the Southwest Quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota, lying south of the north 834.832 feet, and lying north of the south 241.708 feet thereof, as measured along the west line of said Northeast Quarter of the Southwest Quarter. 10. Property acquired under Quit Claim Deed dated December 1, 1997, from Parmak, Inc., through negotiation and act of purchase. Parcell: That part of the Northeast one-quarter of the Southwest one- quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota, as follows: Commencing at a point on the North line distant 241.708 feet East of the Northwest corner thereof thence South parallel with the West line 417.416 feet; thence East parallel with the North line thereof 600 feet; thence North parallel with the West line thereof 417.416 feet; thence West along the North line thereof to the point of beginning. Except that portion described as follows: That part of the Northeast Quarter of the Southwest Quarter, Section 34, Township 32, Range 24, Anoka County, Minnesota, described as follows: Commencing at the northwest corner of said Northeast Quarter of the Southwest Quarter; thence easterly along the north line of said Southwest Quarter on an assumed bearing of South 89 degrees, 04 minutes, 36 seconds East a distance of 764.93 feet to the actual point of beginning of the land to be described; thence South 09 degrees, 03 minutes, 28 seconds East a distance of 167.02 feet; thence North 41 degrees, 30 minutes, 50 seconds West a distance of 208.62 feet; the~ce North 0 degrees, 07 minutes, 06 seconds East a distance of 10.52 feet to the north line of said Northeast Quarter of the Southwest Quarter; thence South 89 degrees, 04 minutes, 36 minutes East a distance of 230.13 feet along said north line to the point of beginning. and That part of the Northeast Quarter of the Southwest Quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota, as follows: Commencing at a point on the North line a distance of 841.708 feet East of the Northwest Corner ~~erec~; ~hence South parallel with the West line thereof a distance of 417.416 feet to the point of beginning of the land to be described; thence West and parallel with the North line a distance of 534 feet to a point of intersection with the line parallel with and distant 307.708 feet East of the West line thereof as measured along a line parallel with the North line thereof; thence South parallel with West line of said Northwest Quarter of the Southwest Quarter a distance of 208.708 feet; thence East a distance of 534 feet as measured along a line parallel with a North line thereof; thence North and parallel to the West line to the point of beginning. 11. Property acquired under Warranty Deed dated March 25, 1996 from William J. Packard, through negotiation and act of purchase. .Leqal Descrintion; That part of the Northeast Quarter of the Southwest Quarter of Section 34, Township 32, Range 24, Anoka County, Minnesota described as follows: Commencing at a point on the North line of said Northeast Quarter of Southwest Quarter 33 feet West of the Northeast corner thereof; thence continue West along the North line of said Northeast Quarter of Southwest Quarter a distance of 208.708 feet; thence South and parallel with the East line thereof a distance of 417.416 feet; thence East and parallel to the North line thereof a distance of 208.708 feet; thence North and parallel to the East line thereof a distance of 417.416 feet to the point of beginning. 12. Property acquired 1995 from Terance husband and wife, under Warranty Deed dated November 25, R. Richardson and Lori Ann Richardson, through negotiation and act of purchase. Leqal Descrintion: The West 550 feet of Lot 1 of Watts Garden Acres in Grow Township, according to the plat thereof on file in the office of the Registrar of Titles, Anoka County, Minnesota. Torrens Certificates: Nos. 39249 and 40426. 13. Property acquired under Warranty Deed dated July 21, 1995 from John Sandeen, Jr. and Barbara J. Sandeen, married, through negotiation and act of purchase. Leqal Descrintion: The, West 924 feet excepting the East 344 feet thereof, and excepting the West 550 feet of Lot One (1), Watts Garden Acres in Grow Township, according to the plat thereof on file in the office of the Registrar of Titles of Anoka County, Minnesota AND The East 344 feet of the West 924 feet of Lot 1, Watts Garden Acres in Grow Township, according to the plat thereof on file in the office of the Registrar of Titles in Anoka County, Minnesota. Torrens Certificate Number: 40427 (the west 924' exc the east 344' & west 55') Torrens Certificate Number: 46139 (the east 344' of west 924') 14. Property acquired through eminent domain from Charles E. Mistelske on December 15, 1997. Leqal Descrintion: Lot Three (3) of Watts Garden Acres in Grow Township according to the plat thereof on file in the office of the Register of Titles of Anoka County, Minnesota. APPENDIX B DEVELOPMENT COSTS INCURRED OR TO BE INCURRED BY ANDOVER ECONOMIC DEVELOPMENT AUTHORITY AND CITY OF ANDOVER CITY OF ANDOVER REQUEST FOR COUNCIL ACTION " DATE: March 4, 1998 AGENDA SECTION EDA ORIGINA T1NG DEPARTMENT Executive Director/ Richard Fursman ITEM NO. ~~~mercial Park Report The Economic Development Authority is requested to review the preliminary report on the status of the Commercial Park. Additional research is required before the absolute accuracy of the figures presented can be verified. A worksheet indicating project parameters and objectives is still being worked on and final numbers and estimates are being calculated. The report is however, a good snapshot of the project to date, aqd is accurate relative to the largt: numbers involved. I will be presenting additional information and updates at the meeting. PRELH'v~"J Jf-\RY MEMORANDUM DATE: TO: FROM: RE: February 26, 1998 Economic Development Authority Richard Fursman Commercial Park Report This report is designed to provide an insight into the history of the commercial park development, and some detail as to the remaining work to be done, options and budget limitations. History: ' The idea of converting the salvage yard area to a redevelopment site was initiated in the late 1980's with the establishment of the tax increment financing districts (TIF). It became evident by 1994-95 that the TIF money being collected would surpass debt requirements by at least $12 million. The Frontage Road: In 1993-94, plans were established for the development of a frontage road along Bunker Lake Boulevard and then south along Kottkees bus service. This project took $1 million from TIF surpluses and is still in the process of being assessed. Buying Salvage Yards: Minnesota Pollution Control Agency began it's clean-up of the superfund site located in the salvage yards in 1995. The City soon after began negotiations to buy and remove the polluting operations. The following costs have been associated with acquiring yards to date: Salva2e Yard Land ACQuisitions Actual Wilbur Auto Parts Andover Auto Parts ATV Sandeen, John Leisinger Best Auto Parts Mistelske, Charles (relocation benefits) Mistelske, Charles (condemnation) Prater, Edward( eminent domain) Heidelberger, Rick (duplex) Heidelberger, Rick (relocation for tenants) Heidelberger, Rick (land and cleanup) Heidelberger, Rick (parcels 2 and 3) M.R. Olson $845,666.23 259,605.00 306,524.20 470,000.00 152,734.61 372,032.20 19,437.00 62,500.00 33,207.69 78,900.00 11,100.00 125,820.00 37,886.60 393,546.72 Mom's Auto Salvage Mom's Auto Salv::ge (relocation) Mistelske, Charles Tax Ladies PRELIM ' " 227,740.15 'NAF/y 158,000.00 390,000.00 13,504.00 Subtotal $3,958,204.40 Other Expenditures Legal Fees (''''!'!!!lercia' 9lvd. Extension 112,263.90 71,977.33 2,077,148.99 Total Expenditures $6,219,594.62 Bond Proceeds Remaining 52,357,~55.3~ , Other Resources Assessment Proceeds (94 Frontage Road).... Environmental Grant............... ........... .......'. First year land sales (est.)............................. Contam ination Escrow................... ............... MSA Reimbursement................................... I nterest Income..................... .... ...... ......... ..... subtotal................... 287.518 500.000 150.000 40,000 463.600 100.000 51,5.'1,118 MODey left for project 53,898,573 FUTURE EXPENDITURE S $ Commercial Auto: Commercial Auto Parts is the last of the salvage yaros on the south side of Bunker. With the purchase of and clearing of this yard comes the final stages of development. Land and Buildings Award $520.000 (Presently in appeals court) Will likely be a higher amount. Moving Expenses: As high as $500.000 Mr. Mistleske has crushed a significant amount of his inventory. The crushed or sold inventory is not eligible for moving expenses. This item may well be lower cost, though it is to soon to tell. Miscellaneous site clean-up: The site \":ll have some remaining contamination investigation and mitigation work. It is difficult to determine what the cost will be until further excavations are done. Site GradingIPondinglSoils Corrections: A large amount of soil will be moved from the eastern (Jay Street) side of the project area to the center of the site. Large excavations for ponding will take place in the center of the site as well. Some soil 2 corrections will be required up front to remove unstable material from the general, area. Other soil corrections, for specific building pad3, may need to be delayed until the site is sold, arid then "custom graded." Road/Pathway/UtiIity Development: Two north-south links between Bunker and Commercial Boulevards have been identified. The timing of these roads is linked again to available funds. At least one of these routes is needed for some development to occur. It will be and EDA decision as to what the priorities are. Miscellaneous Legal/Consultant Fees: $50,000 Strateg ic Concerns Release from EPA: The City is working closely with EPA officials to clear the site of all liability. This is an important element when it comes time to selling the proper!;'. Our City Attorney, Mr. Hawkins, has been in contact with the EPA attorney to finalize language to release any future property owner from liability and costs associated with the superfund clean-up. TIF legislation: Significant changes in the TIF law could have a negative impact on ~he City's capacity to pay off bonds. The potential for the most damage would come in the form of changing the tax rate for industrial and commercial properties. If the tax rate on commercial and industrial property falls again, the amount ofTIF dollars collected would be greatly reduced. The City has bonded in anticipation of continuing tax receipts from the TIF district, if the tax receipts shrink too much, the ability to pay off bonds willl-,e jeopardized. In light ofthi~ problem, I will be informing our Senator and Representative of the probable negative impact on Andover. Wetlands and Development: Staff is currently working with the watershed board to find a way to develop the park and improve the conditions of the existing wetlands. The plans of the City impact significantly wetland area on the site. Staff is presenting the argument that the wetlands are of poor quality and should be moved or reconstr.:cted. The planners, Leanord - Parker, have designed a number of features on the site which if done according to the plan. will require a significant amount of soil correction. PRELIMINARY 3 , I "'r.....,,- . t.-...... 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I ! -' .1 I. ft al III "" :I .j,l IQ III \lIo ~ III .j,l IQ :a III CJ IQ ... "" :I ~ III .j,l 0004 al I c: o l.t'l aJ So. ::3 O'l .... L.... APPENDIX D LIST OF WORKPLANS, REPORTS, AND OTHER DOCUMENTS PERTAINING TO SETTLING PARTIES' REMEDIATION OF THE SOUTH ANDOVER SITE UNDER MPCA'S VIC PROGRAM Document Title Interim Response Action Plan: Mom's Auto, Commercial Boulevard Northwest Development Site, Andover, Minnesota, Maxim Project No. 9717221, City Project Number 94-33C Author Maxim Technologies, Inc. Date 2/11/98