Minutes 09/23/2014 - Laserfiche WebLink

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September 23, 2014 • With its focus on maritime and industrial waterfront development the Portsmouth Port and Industrial Commission (PPIC) is well positioned to market the Properties for development. It is therefore desirable for the City and the School Board to convey the Properties to PPIC. • To obtain EPA and DEQ approval of the revised AWI Superfund remedy PPIC, as property owner, must execute agreements governing access, future maintenance, and repayment to DEQ of a $200,000 cost it will incur as a result of the remedy change. Repayment will be made when the Properties are sold for development or 2029, whichever is earlier. • Because PPIC is taking ownership of the Properties at the City's request, a Memorandum of Understanding (MOU) has been prepared. The MOU provides that PPIC will execute the necessary documents to change the Superfund remedy, and that the City will (1) be responsible for maintenance requirements while PPIC owns the Properties and (2) fund any portion of the $200,000 owed to DEQ which exceeds net sale proceeds. The City may also be required to sign agreements with DEQ and/or EPA to confirm the obligations it is undertaking through the MOU. Discussion: • By reaching agreement with DEQ and EPA and changing the Superfund remedy, the City will create brownfield development opportunities. Financial Impact: • It is anticipated that the ultimate benefit to the City's tax base from creating development opportunities will far outweigh the costs of maintenance and the DEQ repayment. Recommended Action: • Adoption of the resolution. Vision Principle: A Robust Economy for Working Men and Women. Next Steps Following Council Action: • The City Manager will execute the necessary Documents. Motion by Ms. Psimas, and seconded by Ms. Randall, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH THE PORTSMOUTH PORT AND INDUSTRIAL COMMISSION AND VARIOUS OTHER DOCUMENTS RELATED TO THE REVITALIZATION OF 3920 BURTON'S POINT ROAD AND AN ADJACENT STRIP OF LAND. WHEREAS, the School Board for the City of Portsmouth, Virginia (the "School Board") owns 3920 Burton's Point Road and the City of Portsmouth owns an adjacent strip of land (collectively, the "Properties"); and WHEREAS, the Properties are in the vicinity of, but not included within, the Atlantic Wood Industries Superfund Site (the "Superfund Site"); and WHEREAS, the existing Environmental Protection Agency ("EPA") Remedial Action Plan for the Superfund Site does not address possible contamination on the Properties and, in addition, would result in the construction of a large berm which would render other properties within the Superfund Site undevelopable; and WHEREAS, EPA and the Virginia Department of Environmental Quality ("DEQ") are amenable to modifying the Remedial Action Plan so that remedial activities are undertaken on the Properties and the height of the planned berm is reduced; and WHEREAS, these modifications would create future brownfield development opportunities to strengthen the Portsmouth economy and tax base; and