HomeMy WebLinkAbout6.k. Amendment to Purchase Agreement - Canada Circle
EXECUTIVE SUMMARY
City Council Meeting: October 16, 2018
AGENDA ITEM: Amendment to Purchase Agreement-
Canada Circle
AGENDA SECTION:
Consent
PREPARED BY: Kim Lindquist, Community Development
Director AGENDA NO. 6.k.
ATTACHMENTS: Purchase Agreement Amendment (will be
forwarded when available)
APPROVED BY: LJM
RECOMMENDED ACTION: Motion to Approve 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 City Council approve a motion to amend the Purchase Agreement between the
Rosemount Port Authority and Symnabdre Properties LLC for the property at Canada Circle.