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HomeMy WebLinkAbout4.c. Canada Circle Purchase Agreement Amendment E X E C U T I V E S U M M A R Y Port Authority Meeting Date: October 16, 2018 AGENDA ITEM: Amendment to Purchase Agreement- Canada Circle AGENDA SECTION: Old Business PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 4.c. ATTACHMENTS: Amendment (will be forwarded when available) APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve the Purchase Agreement Amendment ISSUE In March, the Port Authority and City Council approved a purchase agreement Symnabdre properties LLC for a lot off of Canada Circle. Based upon the previously completed Phase II for the adjoining landfill site, and recent testing undertaken by the PCA, there are additional questions regarding potential impacts to the site. An amendment to the purchase agreement was approved in July to give the City more time to address potential environmental concerns. The issues are somewhat resolved at this time although as part of the City’s discussions with the MPCA, we are required to conduct another test in ‘winter conditions’ which is slated for November 1, 2018, the soonest the testing can be conducted. In light of the fact that the winter season is fast approaching the applicant has decided not to start construction until the spring. This also pushes back the purchase of the site. Both parties continue to be supportive of the project. Staff is bringing an amendment to the Port Authority and City Council for action to amend the purchase agreement to have a closing by March 1, 2019. At this point, staff is working with the MPCA to confirm final remediation that may be needed. It appears the primary issue is removal of soils that are part of a gas or oil spill caused by the previous gas station on the site adjacent to the property Mr. Bry will be purchasing. The extension recognizes that there will be further conversation about the cost of clean-up and potential cost sharing. These discussions will occur after the November testing. Other than the contamination issue and timing for closing, the amendment modifies the total purchase price as the lot size has been decreased slightly to remove the land where the gas station was previously located. The amendment would not change the other terms of the approved Purchase Agreement. RECOMMENDATION Staff recommends the Port Authority approve a motion to amend the Purchase Agreement between the Rosemount Port Authority and Symnabdre Properties LLC for the property at Canada Circle.