5.4B. SR 12-13-2004
Item # 5.4B
MEMORANDUM
TO:
Mayor and City Council
FROM:
stephen Rohlf, Building and Environmental Administrator
"51Z
DATE:
December 13, 2004
SUBJECT:
Hamilton Property
Staff would like to discuss several issues regarding the property located at 13913 Highway
10. A vicinity map is attached to this memo.
Background
Custom Motors
13913 Highway 10 was formerly used as an automobile salvage yard called Custom Motors.
Liesch and Associates conducted a Phase II Environmental Assessment of the property for
the city in 1993, after the junk vehicles were removed. Residual contamination from the
junkyard was found, which has yet to be cleaned up. The types of contamination that were
found, such as Gasoline Range Organics, were types that don't migrate rapidly and,
therefore, posed no immediate threat to adjacent properties at the time.
A copy of the Phase II Environmental Assessment was provided to American Park
Investments, represented by Russell Hamilton, when they purchased the property. They
were told at the time that cleanup was necessary prior to the property being redeveloped into
another use. The redevelopment of the property has taken a lot longer than the city
anticipated and cleanup should not wait any longer.
Staff did an inspection on July 9, 2002 and ordered the buildings on the property razed or
repaired and the contamination from the automobile salvage yard remediated. From that
time until May of 2003, Building and Environmental staff dealt with several issues at this site
such as unlicensed vehicles and potential commercial uses on the property. With no
headway with the property owner regarding the buildings or contamination from the
junkyard having been made, the issue was turned over to Chris Johnson, City Attorney in
May of 2003.
Several meetings between Mr. Hamilton, his attorney and city staff followed, culminating in
a meeting on November 5, 2003, at which a timetable for removal the buildings on the site
and the cleanup of the contamination was agreed to by all parties involved. The deadline for
these actions was October 31, 2004. The letter attached to this memo dated November 6,
2003 contains this timetable.
Staff next met with Mr. Hamilton, his attorney, his environmental consultant and a potential
developer of the property on September 22, 2004. The letter attached to this memo dated
September 29, 2004 goes into detail about what was discussed at this meeting.
Reportedly, Mr. Hamilton's environmental consultant had trouble getting a work plan for
the investigation of the contamination approved by Minnesota Pollution Control Agency
(MPCA) and it would now be too late to complete this work and the potential cleanup in the
2004 construction season. Staff informed Mr. Hamilton the MPCA approval in question
had nothing to do with the buildings on the site being removed and that their
recommendation to the City Council would be to take immediate legal action if the October
31, 2004 deadline for this item was not met. Mr. Hamilton argued to keep the pole barn on
the site to store the equipment he would need to do the cleanup. Staff agreed to this and the
older white building, the one in the worse shape has since been removed. Mr. Hamilton's
environmental consultant contends a new realistic deadline for the cleanup is August 31,
2005.
Mr. Hamilton would like the city to sponsor a Contamination Remediation Grant. This
grant would pay up to 75% of the cost of investigating the extent of the contamination and
cleanup. The city would be responsible for the other 25% of these costs. Under this grant,
the property would either have to be redeveloped into a use that produces jobs (it is
currently zoned residential) or workforce housing.
RC RoIl-offs
This was the site of illegal burning of refuse by the RC Roll-off Company in 2002.
Contamination from that incident was remediated at a cost of $74,673.72 in the summer of
2002 by (MPCA). The City of Elk River reimbursed MPCA out of its Landfill Abatement
Funds. Other costs associated with this crime, including such items as Police and Street
Department time, came to $35,114.09.
The owner of RC Roll-offs was convicted of a felony and has paid the city $10,000 in
restitution. With the exception of the issue of reimbursement of city costs, this issue is
resolved. Mr. Hamilton would like to discuss forgiving these costs with the City Council.
Discussion topics:
~ Should the city agree to the proposed August 31, 2005 deadline for removing the
remaining building on the site and the cleanup of the residual contamination from
the Custom Motors Junkyard or immediately start legal action?
~ Should the city participate in a 25% cost-sharing grant for cleaning up this site?
~ Is work force housing appropriate in this location?
~ Should the city and can the city assess the cost of the RC Roll-off cleanup to the
property?
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13065 Orono Parkway
Elk River, MN 55330
November 6, 2003
Subject: Property located at 13919 Highway 10, Elk River, MJlT
Dear Mr. Hamilton:
As per our meeting on November 5, 2003 (attended by yourself, Bruce Johnson, Allan Gibas,
Rebecca Haug, Chris Johnson and me) the following timeframe for cleaning up environmental
and safety concerns on your property located at 13919 Highway lOin Elk River was discussed
and agreed to:
. Environmental investigation of the site shall be completed by May 31, 2004. The work
plan for the investigation shall be approved by MPCA (Minnesota Pollution Control
Agency) as pali of the VIC (Voluntary Investigation and Cleanup) program and copied to
the city for review.
. Cleanup of contamination and debris found during the investigation shall begin in the
spring of2004 and shall be completed by October 31, 2004. Testing, as required by
MPCA, shall be conducted to verify the cleanup is complete. Al1 test results shall be
copied to the city.
. All buildings on the property shall be removed by October 31, 2004. A demolition
permit shall be obtained from the City of Elk River for the removal of the buildings prior
to this work commencing. Prior to the issuance of a demolition permit a qualified
consultant shall be retained to assess potential contaminates in these buildings. Proper
documentation of the assessment shall be provided to MPCA and copied to the city as
pali of the demolition pennit submittal. Records of proper disposal ofthe demolition
debris shall be provided to the city.
. By November 30, 2004, all information necessary to obtain a certificate of completion
under the VIC pi"ogram shall be submitted to MPCA and copied to the city.
Once you know what work is required on the property and you have cost estimates for this work,
city staffwil1 schedule a discussion at al1 appropriate City Council meeting to discuss the city's
cost associated with the RC Roll-off clean up. I trust the aforementioned timefraJ.ne is acceptable
to you. If you have any questions, please feel free to cal1 me at (763) 635-1061.
Sincerely,
~L~dmmi"~O;
Phone: 763.441.=74W ""'3S- _ /0(, I
Fax: 763.44H42--5 '" 3 S- - 10 7 0
www.cLelk-rivermn.us
13065 Orono Parkway
Elk River, MN 55330
September 29, 2004
Russell Hamilton
1572 West Van Buren Ave.
St. Paul, MN 55104
Subject: Testing and Remediation of Contamination at 13913 Highway 10, Elk River, MN
Mr. Hamilton,
September 22, 2004 Meeting
On September 22, 2004 a meeting was held at Elk River City Hall to discuss testing and
remediation of contamination on property you own located at 13913 Highway 10, Elk River,
Minnesota.
Those present at this meeting included: yourself; Allen Gibas, your attorney; Stephen
Rohlf, City Building and Environmental Achninistrator; Rebecca Haug, City Environmental
Technician, Bruce Johnson, your environmental consultant; DJ. Bakken and Dean Otterson,
potential developers of the property; Cathy Mehelich, City Director of Economic
Development; Heidi Steinmetz, City Assistant Director of Economic Development; and
Michele McPherson, City Planning Director.
Issues Discussed at the September 22, 2004 Meeting:
Deadline for investigation of contamination on the site. At our November 5, 2003 meeting,
May 31, 2004 was agreed to as the deadline for the completion of the investigation at the
site. Bruce Johnson indicated that, although a work plan for the investigation was submitted
to the Minnesota Pollution Control Agency (MPCA) under the Voluntary Investigation and
Cleanup (VIe) program on April 6, 2004, it had not been approved by MPCA until just
recendy. According to Mr. Johnson, this caused a delay in meeting the May 31, 2004
deadline. Also agreed to at the November 5, 2003 meeting, the City is to be copied on the
work plan as approved by MPCA for the investigation. As of the date of this letter I have
not received this document.
Phone: 763.635.1000
Fax: 763.635.1090
www.d.elk-river.mn.us
Cleanup of the site. At our November 5, 2003 meeting, October 31, 2004 was set as the
deadline for the completion of the cleanup and testing to verify the cleanup of the site.
You contend that the delay in the approval of the investigation work plan by MPCA made it
impossible to meet this deadline.
Potential Brown Field Grant. You reiterated your desire to apply for a Department of
Employment and Economic Development (DEED) ''Brown Field" grant to aid financially
in the cleanup of the site. This topic was first discussed at an April 4, 2004 meeting. As
discussed with the potential developers of the site, the property is zoned residential and will
need to be developed into "Affordable Housing" to qualify for a DEED grant. City staff
cautions that the conversations held at our April 4, 2004 and September 22, 2004 meetings
should not be construed as city support for the concept of affordable housing on this
property or support for a brown field grant. This support can only come from the Elk River
City Council. The Elk River City Council will need to approve resolutions in support of the
grant and the concept of affordable housing on this site. Cathy Melelich is the lead city
contact for the DEED grant process and Michele McPherson is the lead city staff person to
pursue the plat concept as part of this process.
Removal of the buildings on the site. October 31, 2004 was set as a deadline for the removal
of the two building on the site. At our September 22, 2004 meeting you indicated a desire to
leave the pole barn structure on the property to store equipment that you will be using
during the cleanup of the contamination on the site. As discussed, you will need to be
properly certified through MPCA to perform the cleanup of the site. Past issues and
concerns with the current contamination on the site have elevated the level of concern
regarding your property. The issue of this structure remaining through the cleanup will need
to be discussed with the Elk River City Council. However, staff sees no reason for delay in
the removal of the other structure on the property. In the opinion of the Building
Department this building is dangerous and there is no reason to delay its removal.
New deadline for testing and cleanup of the property. In order to comply with DEED grant
deadlines (that no work on a qualifying project takes place earlier than six moths prior to
application) Bruce Johnson suggested the following new deadlines:
~ Testing begins after November 1, 2004.
~ A Remedial Action Plan (RAP) will be submitted to MPCA on or before April 30,
200S. MPCA has 60 days to approve the RAP, which they may amend.
~ Cleanup completed by August 31,2005.
~ Pole barn removed from site by October 31, 200S.
~ Certificate of Compliance copied to the city as soon as it is available.
Note: The City still expects the older white structure removed from the site by October 31,
2004.
City staff will get direction from the Elk River City Council regarding the issues discussed at
our September 22, 2004 meeting and relay their desires onto you. The Council may not
agree with supporting the grant and the new timetable and require that the activities listed
occur sooner. If you have any questions or feel the contents of this letter do not accurately
reflect what was discuss at our meeting, please call me.
Sincerely,
ental Administrator
- Stephen Rohlf, Building and Envir
cc. Allen Gibas
Attorney at Law
Suite 320
1422 West Lake Street
Minneapolis, MN 55408
Summit Envirosolutions
Bruce Johnson, PG
1217 Bandana Boulevard North
St. Paul, MN 55108
Bakken Building and Remodeling
. D. J. Bakken and Dean Otterson
PO Box 130
Big Lake, MN 55309
Chris Johnson, City Attorney
Cathy Mehelich, City Director of Economic Development
Michele McPherson, City Planning Director
Rebecca Haug, City Environmental Technician
Heidi Steinmetz, City Assistant Economic Development Director
Patrick Klaers, City Administrator