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HomeMy WebLinkAbout3.B. Acquisition of 234 1st Avenue West 1.111114111 Consent Business 3. B. SI-IAKOPEE TO: Economic Development Authority FROM: Samantha DiMaggio, Economic Development Coordinator DATE: 05/19/2015 SUBJECT: Acquisition of 234 1st Avenue West Background The property located at 234 1st Ave. West is a former gas station and convenience store that is currently owned by Scott County as a result of tax forfeiture. The County has already paid to remove both the underground gas tanks and the above ground gas pumps from the site and the parcel has been enrolled in theMinnesota Pollution Control Agency (MPCA) Petroleum Brownfields Program (see attached letter). The County is preparing to offer the property for sale and has given the City the first option to purchase. Located at the corner of 1st Ave. and Atwood St., the 0.44 acre property sits on the edge of downtown and approximately two blocks east of the location where Rahr Malting is making a significant investment in new buildings. In its current state, the property appears to be a likely candidate for yet another used car lot or similar operation. However, with the other planned redevelopment in the corridor and increased traffic once the 101 bridge project is complete, there could be a higher and better use of the site. For example, the Laurent Building, which sits on the eastern corner of this same block, has an assessed value of$575,000 and is home to multiple businesses and jobs. Similarly, a once vacant lot on the other end of 1st Avenue was recently purchased and became the home of a new dental office -- contributing valuable tax base,jobs and economic activity to the corridor. The Planning Commission has found acquisition of this property to be consistent with the 2030 Comprehensive Plan and the EDAC has made a recommendation that the EDA acquire this property. Action Sought Adopt a motion authorizing the acquisition of 234 1st Avenue West for $106,626 from the Property Acquisition and authorizing the appropriate EDA officials to execute the necessary documents to finalize the acquisition. Attachments: Approval Letters Cost Breakdown , Minnesota Pollution Control Agency 4:re� - 520 Lafayette Road North I St.Paul,Minnesota 551554194 i 651-296.6300 • 800-657-3864 1651-282-5332 TTY I www.pcastate.mn.us I Equal Opportunity Employer April 1,2015 • Ms.Samantha DiMaggio City of Shakopee 129 Holmes Street Shakopee,MN 55379 RE: Petroleum Storage Tank Release Site Tank Removal Verification Site:Former Q Petroleum,Former Avanti Station,Former Shakopee Kwik Mart, 234 1st Avenue W,Shakopee Site ID#:LEAK00000671,LEAK00012852,LEAK#19383(PB4753) Dear Ms.DiMaggio: The Minnesota Pollution Control Agency(MPCA)Petroleum Brownfields Program staff has reviewed the following documents regarding the above-referenced petroleum storage tank release site(the Site): • MPCA leak site file LEAK00000671,LEAK00012852,LEAK00019383 and associated documents. • The MPCA TALES/tanks database. -Based upon our review of the information contained in the above documents,MPCA staff has concluded that four petroleum storage tanks from which the release occurred have been removed from the Site. The removed underground storage tanks(UST)included three 5,000-gallon gasoline UST(s)and one 4,000-gallon gasoline UST. Due to the fact that the tank(s)from which the release occurred has been removed,the Commissioner of the MPCA has determined that the City of Shakopee will not be a responsible person as defined in Minn.Stat. §115C.021(2014),for any release from these tanks.The Commissioner is authorized to make this determination under Minn.Stat.§115C.03,subd.9(c)(2014). This determination extends to the heirs and assigns of the person to which it originally applies,if the heirs and assigns are not otherwise responsible for the release. This letter represents the views of the MPCA,and is based upon information disclosed to the MPCA as of the date hereof.This letter should not be construed to release persons who are"responsible persons" under Minn.Stat.§115C.021(2014)from liability for petroleum storage tank releases,which have originated at the Site.Issuance of this letter does not imply that petroleum.storage tanks are not present at other locations on the Site. Depending on your circumstances,this letter may or may not be construed as releasing any party from liability under state or federal law.If you have questions concerning your particular situation,the MPCA recommends that you discuss your concerns with your legal counsel. - 1 Ms.Samantha DiMaggio • Page 2 April 1,2015 If future development of the Site or the surrounding area is planned,it should be assumed that petroleum contamination is present.State law requires that persons properly manage contaminated soil and water they uncover or disturb.The MPCA Petroleum Brownfields Program can assist with reviews and approvals of Response Action Plans required to address environmental risk from petroleum contamination.If contamination is encountered during future development work,the MPCA staff should be notified immediately. Please be advised that the determination made in this letter is subject to the disclaimers found in Attachment A.If you would like to obtain information regarding petroleum contamination at the Site, • please call the Petroleum Brownfields File Request Program at 651-757-2309 or 651-757-2799.If you have any questions regarding this letter,please contact me at 651-757-2502 or mark.koplitz@state.mn.us. Sincerely, • 7/fra 04/ Mark Koplitz Project Leader • Petroleum Re -diation and Redevelopment Section Remediation Division MK:mcb Attachment • cc: Ryan.Spencer.,WSB.•Associates, Inc:;Minneapolis ' • • • • • - i ATTACHMENT DISCLAIMERS Site: Former Q Petroleum, Former Avanti Station,Former Shakopee Kwik Mart MPCA PROJECT NUMBER: LEAK00000671, LEAK00012852,LEAK#19383(PB4753) 1. Reservation of Authorities The MPCA Commissioner reserves the authority to take any appropriate actions with respect to any release,threatened release,or other conditions at the Site.The MPCA Commissioner also reserves the authority to take such actions if the voluntary party does not proceed in the manner described in this letterorif actions taken or omitted by the voluntary party with respect to the Site contribute to any release or threatened release,or create an imminent and substantial danger to public health and welfare. 2. No MPCA Assumption of Liability The MPCA,its Commissioner and staff do not assume any liability for any release,threatened release or other conditions at the Site or for any actions taken or omitted by the voluntary party with regard to the release,threatened release,or other conditions at the Site,whether the actions taken or omitted are in accordance with this letter or otherwise. 3. Letter Based on Current Information • All statements,conclusions and representations in this letter are based upon information known to the MPCA Commissioner and staff at the time this letter was issued.The MPCA Commissioner and staff reserve the authority to modify or rescind any such statement,conclusion or representation and to take any appropriate action under his authority if the MPCA Commissioner or staff acquires information after issuance of this letter that provides a basis for such modification or action. 4. Disclaimer Regarding Use or Development of the Property The MPCA,its Commissioner and staff do not warrant that the Site is suitable or appropriate for any particular use. 5. Disclaimer Regarding Investigative or Response Action at the Property Nothing inthisletter is intended to authorize any response action under Minn.Stat.§1158.17,subd.12. Page 1 of 1 Minnesota Pollution Control Agency 520 Lafayette Road North I St.Paul,Minnesota 55155-4194 1651-296-6300 800-657-3864 1651-282-5332 TTY I W uw.pcastate.mn.us I Equal Opportunity Employer April 2,2015 i 9 Ms.Samantha DiMaggio City of Shakopee 129 Holmes Street Shakopee, MN 55379 RE: Petroleum Storage Tank Release Site File Closure Confirmation 5t Site: Former Avanti Station 5683,2341 Avenue W,Shakopee Site ID#: LEAK12852(PB4753) Dear Ms. DiMaggio: The above-referenced site was the location of a petroleum storage tank release reported on July 27,1999.The file pertaining to the petroleum storage tank release at the site was closed on July 17,2000. As of the date of this letter,MPCA staff are not aware of any information which would change the site's closure status.This includes the information contained in the"Phase I Environmental Site Assessment"dated November 4,2014,prepared by WSB&Associates, Inc.As a result,pursuant to Minn.Stat.§115C.03,subd.9(c) (2014),the Commissioner hereby confirms that a petroleum release has occurred at the site,and the M PCA has issued a file closure letter and closure status has not been revoked. This confirmation extends to the successors and assigns of the entity to which it originally applies, if the successors and assigns are not otherwise responsible for the release. If future development of the site or the surrounding area is planned,it should be assumed that petroleum contamination is present.State law requires thatpersons properly manage contaminated soil and water they uncover or disturb,even if they are not the party responsible for the contamination.For some properties,special construction may also be needed to prevent the further spreading of the contamination and/or to prevent petroleum vapors from entering buildings or utility access shafts:The MPCA Petroleum Brownfields Program can assist with reviews and approvals of Development Response. ( Action Plans required to address environmental risk from petroleum. contamination. If contamination is encountered during future development work,the MPCA staff should be notified immediately. This letter represents the view of the MPCA,and is based upon information disclosed to the MPCA as of the date hereof.Depending on your circumstances,it may or may not be construed as releasing any person from liability under state or federal laws. If you have questions concerning your particular situation,the MPCA recommends that you discuss your concerns with your legal counsel. it 1 Ms.Samantha DiMaggio Page 2 April 2,2015 For specific information regarding petroleum contamination at this site or to review the file please call the Petroleum Remediation File Request Program at 651-757-2799.Please be advised that the determination made in this letter is subject to the disclaimers found in Attachment A.If you have any questions regarding this letter,please call me at 651-757-2502. Sincerely, ‘,#0 ark Koplitz Project Manager Petroleum Remed':tion and Redevelopment Section Remediation Div% on MK:mcb Attachment cc: Ryan Spencer,WSB&Associates, Inc. 1 ATTACHMENT A DISCLAIMERS Former Avanti Station MPCA PROJECT NUMBER: LEAK12852(PB4753) 1. Reservation of Authorities The MPCA Commissioner reserves the authority to take any appropriate actions with respect to any release,threatened release,or other conditions at the Site.The MPCA Commissioner also reserves the authority to take such actions if the voluntary party does not proceed in the manner described in this letter or if actions taken or omitted by the voluntary party with respect to the Site contribute to any release or threatened release,or create an imminent and substantial danger to public health and welfare. 2. No MPCA Assumption of Liability The MPCA, its Commissioner and staff do not assume any liability for any release,threatened release or other conditions at the Site or for any actions taken or omitted by the voluntary party with regard to the 1=, release,threatened release,or other conditions at the Site,whether the actions taken or omitted are in accordance with this letter or otherwise. 3. Letter Based on Current Information All statements,conclusions and representations in this letter are based upon information known to the MPCA Commissioner and staff at the time this letter was issued.The MPCA Commissioner and staff reserve the authority to modify or rescind any such statement,conclusion or representation and to take any appropriate action under his authority if the MPCA Commissioner or staff acquires information after issuance of this letter that provides a basis for such modification or action. 4. Disclaimer Regarding Use or Development of the Property The MPCA,its Commissioner and staff do not warrant that the Site is suitable or appropriate for any particular use. • 5. Disclaimer Regarding Investigative or Response Action at the Property Nothing in this letter is intended to authorize any response action under Minn.Stat.§1156.17, subd. 12. r Page 1 of 1 ( fi Minnesota Pollution Control Agency 520 Lafayette Road North 15t Faul,Minnesota 55155-4194 I 651-296-6300 800-657-3864 1651-282-5332 TTY I www.pca.state.mn.us I Equal Opportunity Employer April 2,2015 Ms.Samantha DiMaggio City of Shakopee 129 Holmes Street Shakopee, MN 55379 RE: Petroleum Storage Tank Release Site File Closure Confirmation _ Site: Former_Ct Petroleum,234 lstAvenue...W,Shakopee__ __ ....__ ___._..__ ___________ Site ID#: LEAK671(P84753) Dear Ms. DiMaggio: The above-referenced site was the location of a petroleum storage tank release reported on August 18, 1988.The file pertaining to the petroleum storage tank release at the site was closed on December 24, 1997.As of the date of this letter,MPCA staff are not aware of any information which would change the site's closure status.This includes the information contained in the"Phase I Environmental Site Assessment"dated November 4,2014,prepared by WSB&Associates, Inc.As a result,pursuant to Minn.Stat.§115C.03,subd.9(c) (2014),the Commissioner hereby confirms that a petroleum release has occurred at the site,and the MPCA has issued a file closure letter and closure status has not been revoked. This confirmation extends to the successors and assigns of the entity to which it originally applies, if the successors and assigns are not otherwise responsible for the release, If future development of the site or the surrounding area is planned,it should be assumed that: petroleum contamination is present.State law requires that persons properly manage:contaminated soil and water they uncover or disturb,even if they are not the party responsible for the contamination. For some properties,special construction may also be needed to prevent the further spreading of the contamination and/or to prevent petroleum vapors from entering buildings or utility access shafts.The MPCA Petroleum Brownfields Program can assist with reviews and approvals of Development Response Action Plans required to address environmental risk from petroleum contamination, If contamination is encountered during future development work,the MPCA staff should be notified immediately. This letter represents the view of the MPCA,and is based upon information disclosed to the MPCA as of the date hereof.Depending on your circumstances,it may or may not be construed as releasing any person from liability under state or federal laws.If you have questions concerning your particular situation,the MPCA recommends that you discuss your concerns with your legal counsel. Ms.Samantha DiMaggio Page 2 April 2, 2015 For specific information regarding petroleum contamination at this site or to review the file please call the Petroleum Remediation File Request Program at 651-757-2799. Please be advised that the determination made in this letter is subject to the disclaimers found in Attachment A.If you have any questions regarding this letter, please call me at 651-757-2502. Sincerely, Fq ,‘,/ ark Koplitz Project Manager Petroleum Reme•'.tion and Redevelopment Section Remediation Division MK:mcb Attachment cc: Ryan Spencer,WSB&Associates, Inc. ATTACHMENT A DISCLAIMERS Former Q Petroleum MPCA PROJECT NUMBER: LEAK671(PB4753) 1. Reservation of Authorities The MPCA Commissioner reserves the authority to take any appropriate actions with respect to any release,threatened release,or other conditions at the Site.The MPCA Commissioner also reserves the authority to take such actions if the voluntary party does not proceed in the manner described in this letter or if actions taken or omitted by the voluntary party with respect to the Site contribute to any release or threatened release, or create an imminent and substantial danger to public health and welfare. 2. No MPCA Assumption of Liability The MPCA,its Commissioner and staff do not assume any liability for any release,threatened release or other conditions at the Site or for any actions taken or omitted by the voluntary party with regard to the release,threatened release,or other conditions at the Site,whether the actions taken or omitted are in accordance with this letter or otherwise. 3. Letter Based on Current Information All statements,conclusions and representations in this letter are based upon information known to the MPCA Commissioner and staff at the time this letter was issued.The MPCA Commissioner and staff reserve the authority to modify or rescind any such statement,conclusion or representation and to take any appropriate action under his authority if the MPCA Commissioner or staff acquires information after issuance of this letter that provides a basis for such modification or action. 4. Disclaimer Regarding Use or Development of the Property The MPCA,its Commissioner and staff do not warrant that the Site is suitable or appropriate for any particular use. 5. Disclaimer Regarding Investigative or Response Action at the Property Nothing in this letter is intended to authorize any response action under Minn.Stat. §115B.17,subd.12. Page 1 of 1 ti,y ; Minnesota Pollution Control Agency 520 Lafayette Road North I St Paul,Minnesota 55155-4194 1651-296-6300 800-657-3864 1651-282-5332 TTY I www.pca.state.mn.us I Equal Opportunity Employer g I 11 April 2,2015 r- I Ms.Samantha DiMaggio City of Shakopee 129 Holmes Street Shakopee, MN 55379 RE; Petroleum Storage Tank Release Site File Closure Confirmation Site: Former Shakopee Kwik Mart,2341St Avenue W, Shakopee Site ID#: LEAK19383(PB4753) 'Dear Ms. DiMaggio: The above-referenced site was the location of a petroleum storage tank release reported on July 27,1999.The file pertaining to the petroleum storage tank release at the site was closed on July 17,2000. As of the date of this letter, MPCA staff are not aware of any information which would change the site's closure status.This includes the information contained in the"Phase I Environmental Site Assessment"dated November 4,2014, prepared by WSB&Associates,Inc.As a result,pursuant to Minn.Stat.§115C.03,subd.9(c)(2014),the Commissioner hereby confirms that a petroleum release *. has occurred at the site,and the MPCA has issued a file closure letter and closure status has not been revoked. This confirmation extends to the successors and assigns of the entity to which it originally applies,if the successors and assigns are not otherwise responsible for the release. If future development of the site or the surrounding area is planned,it should be assumed that petroleum contamination is present.State law requires that.persons properly manage contaminated soil and water they uncover or disturb,even if they are not the party responsible for the contamination. For some properties,special construction may also be needed to prevent the further spreading of the contamination and/or to prevent petroleum vapors from entering buildings or utility access shafts.The MPCA Petroleum Brownfields Program can assist with reviews and approvals of Development Response Action Plans required to address environmental risk from petroleum contamination.If contamination is encountered during future development work,the MPCA staff should be notified immediately. This letter represents the view of the MPCA,andis based upon information disclosed to the MPCA as of the date hereof. Depending on your circumstances,it may or may not be construed as releasing any person from liability under state or federal laws. If you have questions concerning your particular situation,the MPCA recommends that you discuss your concerns with your legal counsel Ms.Samantha DiMaggio Page 2 April 2,2015 For specific information regarding petroleum contamination at this site or to review the file please call the Petroleum Remediation File Request Program at 651-757-2799. Please be advised that the determination made in this letter is subject to the disclaimers found in Attachment A. If you have any questions regarding this letter,1please call me at 651-757-2502. Sincerely, ark Koplitz Project Manager Petroleum Remecation and Redevelopment Section Remediation Di , ion MK:mcb Attachment cc: Ryan Spencer,WSB &Associates, Inc. • • } ATTACHMENT A DISCLAIM ERS Former Shakopee Kwik Mart MPCA PROJECT NUMBER:LEAK19383(PB4753) 1. Reservation of Authorities The MPCA Commissioner reserves the authority to take any appropriate actions with respect to any release,threatened release,or other conditions at the Site.The MPCA Commissioner also reserves the authority to take such actions if the voluntary party does not proceed in the manner described in this letter or if actions taken or omitted by the voluntary party with respect to the Site contribute to any release or threatened release,or create an imminent and substantial danger to public health and welfare. 2. No MPCA Assumption of Liability The MPCA, its Commissioner and staff do not assume any liability for any release,threatened release or other conditions at the Site or for any actions taken or omitted by the voluntary party with regard to the release,threatened release,or other conditions at the Site, whether the actions taken or omitted are in accordance with this letter or otherwise. 3. Letter Based on Current Information All statements,conclusions and representations in this letter are based upon information known to the MPCA Commissioner and staff at the time this letter was issued.The MPCA Commissioner and staff reserve the authority to modify or rescind any such statement,conclusion or representation and to take any appropriate action under his authority if the MPCA Commissioner or staff acquires information after issuance of this letter that provides a basis for such modification or action. 4. Disclaimer Regarding Use or Development of the Property The MPCA, its Commissioner and staff do not warrant that the Site is suitable or appropriate for any particular use. 5. Disclaimer Regarding Investigative or Response Action at the Property Nothing in this letter is intended to authorize any response action under Minn.Stat.§115B.17,subd.12. Page 1 of 1 Shakopee Gas Station Charges & Fees Required to Purchase Tax-Forfeited Lands Purchase Price $100,000 State Assurance Fee (3% of Sale Price) $3,000 State DEED Tax (.33% of Sale Price) $330 Conservation Fee $5 State DEED Fee $25 Recording Fee $46 County Administration Fee $150 *Petro Fund Application Fee $3,000 Sheriff Fee $70 Total Due $106,626 *It is anticipated that the County will receive some sort of reimbursement which will then be forwarded on to the City as well as any portion of the$3,000.00 that is not used during the application process. Use of Funds Received From Sale Purchase Price $100,000 Costs Incurred by Scott County $47,157.75 Amount To Distribute $52,842.25 20% to County Park Fund $10,568.45 Remaining Balance $42,273.80 40% to Scott County $16,909.52 20% to the City of Shakopee $8,454.76 40% to the School District $16,909.52