HomeMy WebLinkAboutAgenda Report - August 20, 2014 C-20AGENDA ITEM CWZ0
•. CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to Lodi House, a California non-
profit corporation, in Connection with the Purchase of Property Located at 238 S.
Pleasant Avenue and 221 W. Lodi Avenue
MEETING DATE: August 20, 2014 City Council Meeting
PREPARED BY: City A tome 's Office
RECOMMENDED ACTION: Authorize City Attorney to Issue "Comfort Letter' to Lodi House, a
California non-profit corporation, in connection with the purchase of
property located at 238 S. Pleasant Avenue and 221 W. Lodi
Avenue.
BACKGROUND INFORMATION: The former Pine Street Auto Building, located at 238 S. Pleasant
Avenue and 221 W. Lodi Avenue potentially overlies the PCE/TCE
Central and Busy Bee contamination plumes. The site was con-
nected with the contamination, and the City has entered settlement agreements with all known
responsible parties.
David Hiramoto and William Kagawa, owners of the site are in negotiations to sell the property to Lodi
House, a California non-profit corporation. The Buyers are concerned about the potential for the City to
pursue recovery against them upon their purchase of the site. 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 Buyers or their successors. Based upon my understanding that the Council does not
desire to expand the litigation and the settlement kvith the owners of the site, I recommend the Council
authorize me to issue a "Comfort Letter" in the form attached hereto.
FISCAL IMPACT: N/A
FUNDING AVAILABLE: N/A
Approved:
nine agdich
City Attorney
CITY HALL CITY O F L O D I JANICE D. MAGDICH
221 WEST PINE STREET City Attorney
P.O. BOX 3006 CITY ATTORNEY'S OFFICE
LODI, CALIFORNIA 95241-1910
(209) 333-6701
(209) 333-6807 FAX
August 21, 2014
Ms. Suzanne Mangum
Executive Director, Lodi House
801 South Washington Street
Lodi, California 95240
SUBJECT: Lodi House Property Purchase
238 S. Pleasant Avenue and 221 W. Lodi Avenue
Dear Ms. Mangum:
Lodi House, a California non-profit corporation, is in the process of purchasing property
located at 238 S. Pleasant Avenue and 221 W. Lodi Avenue, situated within or near the
Lodi Busy Bee Plume and Central Plume Areas (Areas). The Areas are groundwater
plumes containing Tetrachloroethene (PCE). The City of Lodi has entered into
settlements with all of the parties who are known to have contributed contamination to
the Areas and has undertaken the obligation to clean up the contaminated soil and
groundwater in the Areas.
This letter will confirm that the City Council authorized me at its meeting on August 20,
2014, to affirm that the City of Lodi will not pursue environmental claims against Lodi
House, or its successors or assigns under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), or under any other environmental liability
theory (such as nuisance) for the contamination in the Areas. This statement of intent
does not apply to liabilities that could arise if Lodi House, 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,
Janice D. Magdich
City Attorney
cc: City Council
City Clerk