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HomeMy WebLinkAbout2001-04-24 - AGENDA REPORTS - PORTA BELLA BROWNFLD STRATEGY (2)CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented b/ UNFINISHED BUSINESS DATE: April 24, 2001 SUBJECT: PORTA BELLA BROWNFIELD — STRATEGIC DIRECTION DEPARTMENT: Planning and Building Services RECOMMENDED ACTION City Council to direct staff to work with various stakeholders to develop a proactive strategy to clean up contamination in and around the Porta Bella site. This will include public education, development agreement amendments, infrastructure financing strategies, and multiple agency coordination. City Council direct the City Manager to enter into a month-to-month extension of the lease agreement between the City and Santa Clarita, LLC for the Commuter Rail Station Site (Metrolink) beginning May 1, 2001, subject to City Attorney approval. Overview of April 3, 2001 Study Session The City Council conducted a study session on April 3" in which it received a presentation on brownfields clean-up strategies, specifically as they relate to the Porta Bella property. The City Council as well as several stakeholder agencies and community representatives expressed a strong desire to clean up the groundwater contamination under and around the Porta Bella property. The City Council is considering mechanisms to facilitate the clean-up of the Porta Bella property in order to accomplish community goals for significant infrastructure solutions and to clean-up the contaminated groundwater. Presentations made to the City Council at this study session included the following key points of interest to the City of Santa Clarita. The full presentation is included in the • Federal Superfund designation is not a viable option; Federal EPA tries to push the obligation of brownfield clean-up to the state and local level; California has a very sound clean-up process through the APPROWED DTSC Agenda Item 47 • The most effective brownfield clean-ups have occurred when local governments take a proactive leadership position • Local communities are the most threatened by contamination and can derive the most benefits from their clean-up • The City has a vested interest to act now: • Migration of groundwater contamination • Acquisition of the Metrolink site • Completion and operation of Golden Valley Road • Via Princessa extension • Local government leadership ensures the satisfaction of local goals are a top priority of the clean up strategy • Site clean-up and restoration is critical to the City's long-term sustainability in terms of protecting the environment, securing the human health & safety of residents, maximizing use of existing infrastructure and services within the City's core, and improving the economic and social health of a blighted property • Porta Bella is a community problem that can only be solved by collaboration with all community stakeholders • The Porta Bella site can be cleaned to a safe level • If SCLLC goes away, Whitaker will conduct minimal clean up at a slower pace, just enough to satisfy their consent decree with DTSC; they have no vested interest to expedite clean up, particularly the groundwater; it is anticipated that if left to Whitaker, they could spend many years pursuing legal issues before any actual soil or groundwater clean up occurs. • If SCLLC goes away, DTSC "orphan funds" will not be available because this site does not meet the criteria that no traceable property owner is known. DTSC would enforce the consent decree with Whitaker before pursuing these funds • If the City does not participate in a solution, the following consequences will occur: • Environmental/health and safety • Infrastructure and public facilities • Economic • Political and public perception • Staff presented success stories from the following cities: • Hercules, California • Dominguez Hills, California • Chandler, Arizona • Glen Cove, New York • Summary of learnings from these examples: • A sense of urgency is important and the local government is best positioned to push for fast effective solutions • Active City participation is vital • It is important for the local community to have a clear vision • Educating the community is a key factor • Addressing these issues with all key stakeholders is necessary • The Enforceable Agreement has been signed between SCLLC and DTSC and includes the following key provisions: • Protection and preservation of public health is paramount • Priority is placed on groundwater remediation • Safeguards are in place, particularly compliance with California Health and Safety Code • DTSC has authority to issue a stop work order if "any activity may pose an imminent or substantial endangerment to the health or safety of people on the site or in the surrounding area, or to the environment." • Penalties and financial responsibilities are described. Metrolink Lease Extension On March 23, 1999, the City Council approved a Memorandum of Understanding (MOU) between the City and Santa Clarita LLC, the owners of the Porta Bella property. On April 13, 1999, the City Council approved a modification to the existing Metrolink lease agreement, which extended the term of the lease for the Commuter Rail Station Site (Metrolink). Under the original terms of the Development Agreement between the City and the owner of the Porta Bella property, the property owner would deed the property to the City upon the recordation of their first subdivision or the City would purchase the Metrolink site by April 21, 1999. Since the property owner could not record the first subdivision by April 21, 1999, and funds were not available for the City to purchase the site, a lease extension was requested and subsequently approved. Five extensions to the lease agreement have occurred since April 1999. Throughout this process, City staff and the applicant been negotiating the terms of the Development Agreement amendment and other proposed changes to the existing Porta Bella project. As staff continues to work with Santa Clarita LLC, a month-to-month lease agreement extension for the Metrolink station is required. This extension would begin on May 1, 2001, with a provision that either party shall have the right to terminate the lease upon giving 100 days prior written notice to the other party. ALTERNATIVE ACTIONS The above recommendation reflects the staff presentation and community comments during the April 3" City Council Study Session. However, the City Council could chose not to take a proactive position. FISCAL IMPACT No fiscal impacts are anticipated by this action. However, the strategy, which will return to the Council for approval will likely include specific fiscal impacts and these will be fully described at this time. ATTACHMENTS April 3, 2001 City Council Study Session presentation — available in the City Clerk's reading file Sixth Amendment of Lease for Commuter Rail Station Site JJL:Iep lambertlportabellalagnrpt.4-24.doc SIXTH AMENDMENT OF LEASE This Sixth Amendment ("Amendment") is dated as of , 2001 and is by and between Bermite Recovery, L.L.C., a Delaware limited liability company ("Lessor") and the City of Santa Clarita, a municipal corporation ("Lessee"). Recitals. 1.1 Lessee and Lessor's predecessors -in -interest entered into that certain Second Commuter Rail Station Site Lease with Option to Purchase dated as of April 21, 1996, as amended on March 31, 1999, June 29, 1999, December 20, 1999, February 29, 2000 and December 12, 2000 (collectively the "Original Lease") for premises used as a public passenger commuter rail station (the "Premises"). 1.2 The parties wish to extend the term of the Original Lease on the terms and conditions more specifically set forth below. 1.3 Capitalized terms used herein shall have the meaning defined in the Original Lease unless otherwise defined herein. 2. Extension. The term of the Original Lease, as hereby amended, shall be extended on a month-to-month basis, commencing May 1, 2001, provided, however, that either party shall have the right, in such party's sole and absolute discretion, to terminate the Lease upon the giving of one hundred (100) days prior written notice to the other ply. 3. Limitation on Amendment. Except as expressly provided herein, the Original Lease and any amendments or releases of or relating to the Original Lease shall remain in full force and effect. 4. Ratification. By scrivner's error, Santa Clarita, L.L.C. was the identified "Lessor" under the Amendments dated February 29, 2000 and December 12, 2000 when such "Lessor" should have been identified as Bermite Recovery, L.L.C., a Delaware limited liability company. Accordingly, Bermite Recovery, L.L.C., a Delaware limited liability company, does hereby ratify, confirm, agree to and accept, as its own act and as if it had been named therein as "Lessor", each of the Amendments dated February 29, 2000 and December 12, 2000. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written. Approved: CITY OF SANTA CLARITA City Attorney Attest: Lo BERMITE RECOVERY, L.L.C., a Delaware limited liability company City Clerk By: Remediation Financial, Inc. Managing Member Lo Myla D. Bobrow, President & CEO Remediation Financial, Inc.