Minutes 03/22/2016 - Laserfiche WebLink

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March 22, 2016 Discussion:  Acquiring the Vane Property and incorporating it into the Superfund program would substantially increase the redevelopment potential for the PPIC Property and the Vane Property, both by lowering the height of the EPA berm and by increasing the size of the developable site.  Incorporating the Vane Property into the Superfund program would require the amendment of existing agreements (or the execution of new agreements) by and among the City, PPIC, EPA and DEQ.  The agreements for the Vane Property would be contain substantially the same terms as the agreements for the PPIC Property: - PPIC would agree to reimburse DEQ for the costs incurred by the state to place the property in the Superfund Program. The reimbursement amount is estimated to be approximately $250,000 and would not be due until the earlier of the sale of the property or the year 2029. - The City would provide assurances to EPA and DEQ that routine maintenance will be performed on the property (e.g. grass cutting, etc.) until it is conveyed to a third party, and to PPIC that the City intends to be responsible for any portion of the DEQ reimbursement not covered by net sale proceeds of the property. - PPIC would use its own funds to acquire the Vane Property and have the right to recover its costs from any available net proceeds from the sale of the property. Financial Impact:  Making the PPIC Property and the Vane Property more marketable should result in significant net revenue, both from the sale of the properties and from the tax revenues after their ultimate development. This revenue should significantly exceed the costs of acquiring the property ($409,900 purchase price to be paid by PPIC) and of reimbursing DEQ (approximately $250,000). Recommended Action:  Adoption of the resolution. Vision Principle: A Robust and Prospering Economy. Next Steps Following Council Action:  The City Manager will execute the necessary Documents. Motion by Dr. Whitaker, and seconded by Mr. Cherry, 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 3930 BURTON’S POINT ROAD. WHEREAS, at the request of the City, Portsmouth Port and Industrial Commission (PPIC) took title to the former Portsmouth Public Schools maintenance facility property at 3920 Burton’s Point Road and made the property available for use by the U.S. Environmental Protection Agency (EPA) in conjunction with the Atlantic Wood Industries Superfund Site remediation, with the overall strategic goal of maximizing future revitalization, tax revenue, and employment potential in the area; and WHEREAS, PPIC has made an offer to purchase adjacent property at 3930 Burton’s Point Road (Tax Parcel 0387-0030) for its assessed value; and WHEREAS, the revitalization, tax revenue, and employment potential in the area will be further increased if PPIC is able to acquire the property at 3930 Burton’s Point Road and incorporate it into the Atlantic Wood Superfund remedy on substantially similar terms as apply to the former School property;