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HomeMy WebLinkAbout6.g. University of Minnesota Land Acquisition ciT�r aF Ros�Qorrr EXECIITIVE 3UMMARY FOR ACTION CITY COUNCIL MEETING DATE: NOVEMBER 6, 1990 AGENDA ITEM: UNYVERSITY OF MINNESOTA AGENDA SEGTI4N: LAND ACQUISTTION OLD BUSINESS PREPARED BY: STEPHAN JILK, �ITY ADMINTSTRATOR AGENDA }��IYI � ! i � ATTACHMENTS: MEMQ OF NOV. 2, 1990 A P D BY: - LTR OF OCT 30, 1990 & LTR OF OCT 25, 1990 ' � This item consists af informatian relating to the administrator's discussion with members of the 1aw firm of Hoimes & Graven concerning the acquisition of the University of Minnesota property and a recommendation to consider regarding the use of the firm for legal services on this project. RECOMMENDED ACTIONz MOTION to approve the use of the firm of Holmes and Graven for services outlined in the letter of Oct. 30, 1990 from Charles LaFevere and to direct the City Administrator to receive cost estimates fram Holmes & Graven of services to be provided and to limit the expend iture for the services to $3000 until a cost estimate is received and further expenditures are approved. COIINCIL ACTION: Approved . TO: Mayor Napper Council Members Klassen, Oxborough, Willcox, Wippermann FR4M: Stephan Jilk, City Administrator DATE: November 2, 1990 RE: U of M Land Aequisition Per your direction I have contacted a 1aw firm with expertise in the areas of real estate, economic development, environmental issues and governmental law to discuss the concept of the aequisition of the University property, USPCI and the County's Resource Recovery Project. The firm I contacted, and had a subsequent meating with, was the firm of Holmes & Graven. The decision to contact this firm was based on the information I had received through the RFP far legal services that this firm and others had submitted. I had discussion with David Kennedy, one of the principals of the firm and David put together a team of attorneys which he felt would be appropriate based on the issues I related to him ovex the phone. I met with that team on 1d-23-90. The team consisted of: - Charlie LeFevere - Public Finance, Government Law Bob Lindall - Real Estate, Environmental Law Ron Batty - I,andfill Issues (Medina City Attorney) Public Finance, Governmental Law I had a good meeting in discussing many relevant issues regarding the University property, the county's project and USPCI. Attached is a letter from Charlie LeFevere outlining their firms understanding of issues which need review, research and determination of position on. Although the directive was clear to me that I was to choose a firm with whieh to work on the University issue, I felt it would be a good idea to share with you the information provided by Charlie LeFevere so that you can get a broad picture of the potential magnitude of the issues and the depth of involvement the firm may be playing. I believe the extent of this firms involvement (or any cansultant which would provide the kind of service we are asking) is passibly much more extensive than we would have imagined because of the known and potential issues to resolve. This project could involve many levels of ' government, private and public agencies and may well be the most extensive develapment program we may embark an. Funding for this level of service is not available now in our general fund. Support for this funding may be something to be cansidered from EDA funds or future reimbursement from Dakota County. With that I would also suggest that you consider a motion: To apprave the use af the firm of Holmes and Graven for services as outlined in the letter of 10-30-90 from Charles LeFevere and to direct the City Administrator to receive from Halmes & Graven a cost estimate of services to be provided and to limit the expenditure for these services to $3000 until a cost estimate is received and further expenditures are appraved. H4LMES & GRAVEN CHART�RED Attorrteys at Law 478 Pillsbury Center,Minneapolis,Minnesota 55402 RDSERT A.A4SOP (Gt2)33?93A, .1u41E A.LAW6F.R PAUi.D.EAERTSCHI Facsimilc(6}2)337-43I0 CifARLES L.LEFEVERE RONAI.D H.HA7TY JOHN M.LEFEVRF..JR. M�Rv J.BREnnEn RoBeRT J.LInDn1.�. STf:PHEN J.BUBCL ROBERT C.CARLSON LaUaA K,MoI.tET CHRISTINE M.CHALE DANIEI.R.NEESQN JOHN B.DE�N WRITER'S d[RECT DIAL BARBnen L.PottTwqaU ROBERT J.D£IKE MARY FRANCES SKAI.A MARI'G.DOBS�NS JAMBS M.STRQMMEN JEFFR£1"EKC � � . . � � � � � � �STE4'ENM.�TALLEM1 � . STEFAKIF:N.GALEY. � � � e� � � . � � � JAMf,S J.THOMSON,JR. . . . � DAVID�L.GRA!'EK � . . � � � .J3��92'1'S . . . � . � . � LARRY M.H'ER7NEIM . � fORR�IKE A.HEIN£ � . � � . � . � � � BONNIE L.WILKINS JA:ME9 S.�MOI.MES . � � � � � � . � � . � _ � � � DAYID J.KF.Nti�EDY . � . � � . � . . � � � . :OF:CQt'KSEl. � . � JUHK R.LARSOti � � . � . . . � � . �ROBERT L..DA\'IDSOk � . .. WF.1.1.1\GTO�H.LAK' � . . . � � � � � . �JOHN�G.HOES('HI.EN� � '. October 30, 1990 �������� Mr. Stephan Jilk City Administrator Cityof,8osemount ' ,'"��.;� ;; " 1�9(� P.O.Box 510 _ CL�'��'� 2875 - 145th Street VVest ' ��Fi_�� Rosemount, MN 55068 CSTY G�F R�SEM�UNT Dear Steve: We enjoyed meeting with yau last week. Rosemount is obviov.sly facing a number of very complicated and ehallenging i�ues, and we are loaking forward to workinn on them urith you and the city staff. In order to deal effeetively with the various issues f.acing the City, we will want to identify the City's long-term objeetives as soon as possible. Establishing these objectiues and how most effeetively to achzeve them w�l involve a number of tasks. Amon� these are: inventary the current Iand uses on t:�e University of �11linnesata �roperty and th�e on nearby land which could be affeeted by potential uses of the University site; determine the extent and nature of eontamination on the site and possible methocb, cost, effectiveness, and time of remediatian; prepare a market analysis to identify realis�ie potential land uses for the site; and deterrnine whefher various activities should be undertaken by the Gity operating as an EDA, HRA, or possi�aly a Port Authority. It seems likely that the adoption of a long:term comprehensive plan far the entire site may take a good deal of time and effart. Therefore, it will proba;k�ly be neeessary to deal with more immediate concerns prior to the eornpletion of sueh a eomprehensive pZan. Two such concerns whieh we identified last uTeek were the USPCI Project and the Caunty Ineinerator. Because these projects are already underway, we wiIl probably want to eoncentrate our initiel efforts on one or both of these two projects. : ' : At a fairly early date, the Couneil Members should sornehow be involved in the process so that they are fully apprised of the staff's efforts on these matters and`can provide necessary policy direction. You may also wish to consider establishing a working graup Mr. Stephan Jilk October 30, 1990 Page 2 _ which should be directed by you and might include, among oth�rs: the City Planner, representatives of our offiee, interested eouncil members, fiseal c�nsultants, appraisers, environmental. engineers, and market ana3.ysts. I have also seen other consultants used to good advantage is sueh working groups, particularly on matters involving sensitive issues such as environmental matters and health concerns. Such additional eonsultants include public relations consultants, poIl takers, and politicat analysts. However, I would recommend that our next step be for three peaple in rny office to meet with you and Dean Johnson, and any ather staff inembers whom you feel should be included, to review the matt�rs related to the Universitv af Minnesota site in much greater deta�. We will want to go over at least the histary and status of the USPCI Project and the county ineinerator, and identify baekground documents which we may need for our tasks. It would be helpful to review any chronologies of events to date whieh have been prepared on either of these projects. It would also be helpful if relevant reports, documenis and f�es could be assembied for our review. At the meeting, we should attempt to define work tasks and assign responsibility and time tables for their completion. From our initial meeting last week; it would seem that issues to be diseussed and possible work tasks tobe identified would ineiude the foll.owing: - 1, THE UNNERSITY OF NMINNES4TA PROPERTY GENER,ALLY. a. Discuss the history and progress of discussions with the University about the sale of the property and how such diseussions should be pursued in the future. b. Identify the authority and procedures for sale of University property. c. Aseertain whether uses on the University property are, in fact, exempt from local control, either zoning control or other paliee,power regulation. d. Determine �vhether the University is willing to discuss: {1) Sale of the property in phases or separate pareels. (2) Sale direetly to private developers approved by the City. (3) Carrying finaneing far sales either to the City or to others. (4) Indernnificatian for contamination problems. (5) Some sorY of control (sueh as options, development a�reements or right of first refusal) by the City short Qf an outright purehase. (6) Payments in lieu of taxes. e. Describe current provisions relating fo the U'niversity property in the guide plan and the zoning code. f. Identify ways in whieh the City can secure some measure of control over the property wh�e minimizing both eost of acquisition and expo5ure to liability far involvement with contamination. Mr. Stephan Jilk Oetober 30, 1990 Page 3 2. ]SSUES ftELATING TO CONTAMINATION ON THE UNNERSITY S1TE. a. Determine the nature, location and extent of contarninetion. b. Identify possible responsible parties whieh might include DuPont,the United States Army, George's Used Auto Body, the City of Minneapolis, and other tenants of the University. Evaluate the willingness and ability of these parties to finance clean-up efforts. e. Determine possible means of remediation for �own contamination problems, and the cost and timing of such efforts. d. Attempt to deterrnine possible sources of funding for such remediation, including establishment of a hazardous substanee tax increment financing district. e. Review arrangements with the University of Minnesota for the rur�l water _ _ system. f. Determine whether the City h�s environmental. insurance other than that provided in the standard LMCIT policy. g. Evaluate the effect of lrnown contaminatian on the potential for development of the site. h. Consider attempting to secure an indemnification contraet from the University of l�iinnesota. Review the legal authority and limitations on the power of the University ta execute sueh an inflemnification agceement. Review the statutory limitations on liability of the University. i• �plore with the PCA the extent to whieh they would help to expedite clean-up and neeessary approvals for development of the University site. j. Relating to purchase af all or of part of the TJniversity property: (1} Identify the appraiser who is revietirin6 the University property. (2) Determine who is the ciient of the appraiser. (3) Determine what a�sumptions the appreiser is making coneerning the presence of contamination an the site. (4) TJetermine how the appraiser is dealing with irnprovements on the property (i.e. Do the improvemznts inerease the value of land, is the land being eonsidered as having the value of cleared land, or is the cost of demolition and removal of improvements reducing the �roperty value, ete.). (5) �etermine whether the City shauld discount the purchase priee �ecause of the pre.sence of contamination. {s) T�iscuss whether all or a portian of the purchase price s'�ould be escrowed for clean-up, perhaps to be released 'for individual parcels as the Pollution �ontrol Agency signs off, or, perhaps to be held until all of the proQerty is released by the PCA. Mr. Stephan J�k 4etober 30, 1990 Page 4 k. It would be he3pful far Bob Lindall of our offiee to meet with the PCA and review their f�es to begin to gain an understanding of these and other issues related to coatamination of the sits. 3• ISSUES RELATED TO THE USPCI PftOJECT. a• R.eview the nature, history and status of the projeet. b• Examine the reasons for the City's desire to relocate this projeet to the University of Minnesota site. c. Deterrnine how the City can best avoid ineurring liability for the existing contarnination on the site as well as any contamination or other expasure to liability wfiich might oceur as a result of operations of the USPCI projeet. This would involve both direct liability (such as a suit against the City for negligence) and indirect or practical liability (such as the need by the City to protect its citizens by praviding alternative sources of potable water, etc.). d. Determine how to require USPCI to pay all City costs related to their project. e. Discuss whether the City wiil have any involvement in finaneing (tax inerement, IDBs, etc.). f• Consider ways of avoiding a transfer of title throuoh the City so that the City may be able to avoid potential. pollution Iiability. g• Review current zoning and guide plan provisions relating to the new site. h. Develap an action plan for directing the project to the new site. i. Review ways in whieh the City will secure impaet fees, tipping eharges, etc. J• Review the status of environmental review for the project to dafe and future environmental review and required proceedings for state permits. �etermine whether a new site is, or may be, contaminated and whether the -- PCA ean assist in expediting necessary approvals. k• Identify potential public risks associated with the projeet (e.�. contamination of ground water, spills, etc.} and ways in which USPCI can protect and indemnify the City, ineluding finaneial guarantees (escrow, bond, insurance, letter of credit, ete.). 4• ZSSUES RELATFD TO THE COUNTY INCINERATOR PROJECT. a. RevieSN the history and status of the projeet. Mr. Stephan Jilk October 30, 1990 Page 5 b. Discuss how the City can secure from the County impact fees, expense reimbursement, and any ather benefits for whieh the City migh# qualify as a host community. c. Discuss how the City can secure an agreement from the Gounty to protect' the City from costs assoeiated with environmental groblems. d. Discuss the relationship between the City and Empire Township. (1) Consider a Joint Powers Agreement with the Township. (2) Discuss how to maximize the benefits to the City despite the fact that the majority of the property to �e aequired for the facility may be within the Township. e. Determine the status of discussions between the County and the University of Minnesota. -f. Identify the powers and-limitations on t�e powers of the City to regulate the County incinerator. g• Diseuss the relationship of this project with the zoning code and guide pl�n prouisions. h. Identify other waste management facilities whieh could be included at this site in the future. i. Discuss whether there are actually any advantages to the City in acquiring title to the University pronerty. That it, would ownership of the site actually increase the �ity's control vis-a-vis the eounty. j. Review the speeial legislation authorizing Dakota Cotuity to pay Host Community Impaet Fees. In discussing all of these issues, we should eontinue to keep in mind that special legislation can be very useful in dealing with unusual cases such as this. I will give you a call later this week so that we een arrange a meeting to begin to go over these matters. Again, we are all looking forward to working with you on this project. Very truly yours, Charles L. LeFevere CLL:rsr RS125-006 HOLMES & GRAVEN c�xa�n DAVID J. K�NN�DY 470 Pillsbury Center,Minneapolis,Minnesota 55402 Attorney at Law (612)337-9300 Direct Dial(612)337-9232 October 25, 1990 Mr. Stephen Jilk City Administrator City of Rasemount P;O. Box 510 , 2875 145th Street West R.osemount, Minnesota 55068 Dear Steve: We enjoyed meeting with you on Tuesday and are looking forward to working with yau on the U. of M. property and related issues. We did not diseuss our fees or billing arrangements on Tuesday, but I am assuming that the billing structure we set out in our proposal of May 24, 1990 is satisfactory. That structure is as follows: Senior Attorneys (Directors) $120/hr Associate AttorneYs $95/hr Paralegals and Clerks $62/hr We'll also bill the City for out-of-pocket expenses and advanees made on the Cityts behalf. We'll bill monthly and can prepare the bills in any detail or form you request. Thanks again for the opportunity to serve the City of Rasemount. You very truly, ; Dauid J. Kennedy DJK:caw cc: Charlie LeFevere