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03/30/1998COMMUNITY REDEVELOPMENT AGENCY SPECIAL MEETING CITY OF CLEARWATER March 30, 1998 Present: Rita Garvey Chair J. B. Johnson Trustee Robert Clark Trustee Ed Hooper Trustee Karen Seel Trustee Michael J. Roberto City Manager Kathy S. Rice Deputy City Manager Bob Keller Assistant City Manager/CRA Director Pamela K. Akin City Attorney Cynthia E. Goudeau City Clerk Brenda Moses Board Reporter The Chair called the meeting to order at 9:00 a.m. at City Hall. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM #2 - New Business: Letter Agreement with Information Management Resources (IMR) for discussion only The Assistant City Manager said he anticipates another special CRA (Community Redevelopment Agency) meeting on Thursday to make a decision on IMR’s proposed letter of agreement between the City, CRA, and IMR. Progress is being made with IMR regarding the purchase of the annex site. Some issues center around title and environmental issues. William L. Pence, City’s Representative, said IMR has concerns regarding the possibility of environmental conditions on the annex site that were not initially considered and might preclude them from proceeding with their development plans. Excluding 2 items previously disclosed, IMR may under certain circumstances deem the property to have an unsatisfactory environmental condition and terminate negotiations. This agreement details those conditions. The City has the right to remediate those conditions in a specified 90-day period. Negotiations are taking place with the FDEP (Florida Department of Environmental Protection.) The agreement provides reimbursement to IMR for environmental costs at closing, and costs associated with an Unsatisfactory Environmental Condition or unresolved title concerns. The reimbursement limit is $50,000: a) $3,000 for title concerns, and b) $47,000 for environmental concerns. In response to a question, Mr. Pence felt the letter of agreement was reasonable in light of the investment IMR has already made. The title work and the 90-day timeframe will not be issues. IMR has experienced costs associated with consultants and environmental legal counsel. The City’s costs will be supplied to the Commission when available. In response to a question, Mr. Pence said it is typical to provide a written indemnity to property for potential contamination liability. The indemnity only covers the current contamination and does not include third party claims. If a claim arose regarding contamination that was unfounded, the City would have the obligation to defend against the claim. In response to a question, Mr. Pence said should IMR not purchase the site, comprehensive data will have been compiled prior to negotiations with other interested parties. The City will continuously monitor and sample wells at a cost of $2,000 to $5,000 per quarter, depending upon degradation frequencies. In response to a question, Mr. Pence said should sufficient contamination exist, the FDEP can require a deed restriction limiting the perspective purchaser’s ability to draw ground water from the site for irrigation or drinking water purposes. It was noted this agreement is one of many. ITEM #3 - Assistant City Manager Verbal Reports A special CRA meeting is scheduled for 7:00 p.m. April 2, 1998. ITEM #4 - Other Business - None. The meeting adjourned at 9:39 a.m.