HomeMy WebLinkAboutAgenda Report - February 7, 2007 E-08AGENDA ITEM E 445
A& CITY of Lom
*W COUNCIL COMMUNICATION
TM
AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to Rivergate Partners, L.P. in
Connection with the Potential Sale of the former Cottage Bakery Restaurant
Located at 203 S. School Street.
MEETING DATE: February 7, 2007 City Council Meeting
PR PA Q-!jY: City A ornev's Qffice _
RECOMMENDED ACTION: Authorize City Attorney to Issue "Comfort Letter" to River -gate
Partners, L.P. in Connection with the Potential Sale of the
former Cottage Bakery Restaurant Located at 203 S. School
Street.
BACKGROUND INFORMATION: The former Cottage Bakery Restaurant site potentially overlies two
Pce/Tce contamination plumes, the Central Plume and the Northern Plume. However, investigation to
date by the City and other defendants has uncovered no evidence that the site contributed to the
contamination.
Rivergate Partners, LP, owners of the site are in negotiations for the potential sale of the site. The
purchasers are concerned about the potential for the City to pursue recovery against them upon their
purchase. This concern could be allayed through the issuance of a "Comfort Letter" which would with
certain qualifications indicate the City's determination not to pursue the current owners or their
successors. Based upon my understanding that the Council does not desire to expand the litigation and
the lack of any evidence that this site contributed to the contamination, I recommend the Council
authorize me to issue a comfort letter in the form attached hereto.
FISCAL IMIIIPACT: N/A
FUNDING AVAILABLE: NIA
Approved:
APPROVED:
Blair King, City Manager
CITY HALL
221 WEST PINI; STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209)333-6701
(209) 333-6807 FAX
February 14, 2007
Via FacsirnMe and 10ail
Mr. Terry Knutson
Rivergate Partners, L.P.
203 S School Street
Lodi, California 95240
CITY OF LODI
CITY ATTORNEY'S OFFICE
Re: 203 S. School Street, Lodi, CA
Dear Mr. Knutson:
D. STEPHEN SCHWABAUER
City Attorney
JANICE D. MAGDICH
Deputy City Attorney
Rivergate Partners, L.P owns property located at 203 S. School Street in Lodi situated
within the Lodi Central Plume Area ("CPA"). The CPA is a groundwater plume
containing Tetrachproethene (PCE). Rivergate Partners and its predecessors in
interest are not known to have contributed to the contamination in the CPA and the City
of Lodi has entered into settlements with all of the parties who are known to have
contributed contamination to the CPA, and has undertaken the obligation to clean up the
contaminated soil and groundwater in the CPA.
This letter will confirTn that the City Council authorized me at its meeting on February 7,
2007 to affirm than the City of Lodi will not pursue environmental claims against
Rivergate Partners, L.P. or their successors or assigns under CERCLA, or under any
other environmental liability theory (such as nuisance) for the contamination in the CPA.
This statement of intent does not apply to liabilities that could arise if Rivergate Partners
or its successors or assigns actually contribute at some future date to the
contamination.
If you have any questions or concerns regarding this matter, please contact me.
Sincerely,
D. STEPHEN SCHWA ER
City Attorney
DSSIpn
cc: City Council
City Clerk