Agenda - Council Work Session - 03/29/2011

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CC Work Session Date: 03/29/2011 By: Brian Olson Engineering/Public Works Information Title: Consider demolition of property located at 14550 Armstrong Boulevard Item #: 2. 5. Background: Similar to the previous case, Staff was given direction to demolish the building contingent upon an agreement with the adjacent property owner that allow the use of the property for parking and would also require maintenance of the property in lieu of rent. (see attached case) Since that time there has been significant discussions regarding the property potentially being used as a go kart track. At a future date, the City Attorney will be bringing back an agreement between Mr. Karl Jansen and the City of Ramsey for some type of joint venture agreement for the operation of the go gart track. In the meantime, Staff is recommending that the building be razed separately from the property use agreement. In a meeting held with the Mr. Jansen, we agreed that the pavement would be left inplace and would be cut and removed further once the interim use permit is approved for the proposed use. If there is a reason that this project (the go kart track) does not move forward then the pavement would be removed in its entirety at a later time. Observations: It should be noted that there has been environmental concerns on this property and therefore there was a significant amount of environmental testing on this property during the acquisition process in 2009. Attached to this case is the Development response action Plan and Construction Contingency Plan that was approved by the Minnesota Pollution Control Agency as well as the indemnification agreement that we required as a condition of the purchase of the property. This indemnification agreement requires the prior property owner to pay for up to $150,000 of contamination (if encountered) and expires 36 months after closing. The City Attorney believes that the closing occurred in November 2009 but will verify this on Tuesday night. Staff will have some information for a proposal to complete a pre demo asbestos survey (typical in all demolitions) and an environmental contract that manages petroleum contaminated soils (if encountered). Staff will have an estimate for these activities before the meeting on Tuesday. Recommendation: Provide consensus on moving forward with the demolition process without any conditions. Funding Source: The funding for this demolition would come from TIF 4. Council Action: Provide direction to move forward with the demolition without a property use and maintenance agreement.