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HomeMy WebLinkAboutAgenda Report - March 1, 2017 C-11CITY OF LODI COUNCIL COMMUNICATION TM AGENDA ITEM C41 AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to TSH Inc., a California Corporation, in Connection with the Purchase of Property Located at 210 West Pine Street, and 1 and 11 South Church Street MEETING DATE: March 1, 2017 PREPARED BY: City Attorney's Office RECOMMENDED ACTION: BACKGROUND INFORMATION: Authorize City Attorney to Issue "Comfort Letter" to TSH Inc., a California Corporation, in connection with the purchase of property located at 210 West Pine Street, and 1 and 11 South Church Street. The property located at 210 West Pine Street, and 1 and 11 South Church Street, overlies the PCE/TCE Central contamination plume. The site was not connected with the litigation, and the City has entered settlement agreements with all known responsible parties. Monte and Lauri Merrill, owners of TSH, Inc., are in negotiations to purchase the property from the owner Fred G. Heagarty. 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 to contribute toward the groundwater cleanup. The Council has not indicated a desire to expand the litigation to the owners of the site. Therefore, City Council is requested to authorize the City Attorney to issue a "Comfort Letter" in the form attached hereto. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. Approved: O —Jance D. Magdich City Attorney CITY HALL 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6701 (209) 333-6807 FAX March 2, 2017 Todd M. and Lauri K. Merrill dba TSH, Inc. 220 South Church Street Lodi, California 95240 CITY OF LODI CITY ATTORNEY'S OFFICE SUBJECT: TSH, Inc., Property Purchase 210 W. Pine Street, 1 & 11 South Church Street Dear Mr. & Mrs. Merrill: JANICE D. MAGDICH City Attorney JOHN P. FUKASAWA Deputy City Attorney TSH, Inc., a California Corporation, is in the process of purchasing property located at 210 W. Pine Street, and 1 & 11 South Church Street, situated within or near the Lodi Central Plume Area (Area). The Area is a groundwater plume 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 Area and has undertaken the obligation to clean up the contaminated soil and groundwater in the Area. This letter will confirm that the City Council authorized me at its meeting on March 1, 2017, to affirm that the City of Lodi will not pursue environmental claims against TSH, Inc., a California Corporation, 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 TSH, Inc., a California Corporation, 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 CITY HALL 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6701 (209) 333-6807 FAX March 2, 2017 Todd M. and Lauri K. Merrill dba TSH, Inc. 220 South Church Street Lodi, California 95240 CITY OF LODI CITY ATTORNEY'S OFFICE SUBJECT: TSH, Inc., Property Purchase 210 W. Pine Street, 1 and 11 South Church Street Dear Mr. & Mrs. Merrill: JANICE D. MAGDICH City Attorney JOHN P. FUKASAWA Deputy City Attorney TSH, Inc., a California Corporation, is in the process of purchasing property located at 210 W. Pine Street, and 1 and 11 South Church Street, situated within or near the Lodi Central Plume Area (Area). The Area is a groundwater plume 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 Area and has undertaken the obligation to clean up the contaminated soil and groundwater in the Area. This letter will confirm that the City Council authorized me at its meeting on March 1, 2017, to affirm that the City of Lodi will not pursue environmental claims against TSH, Inc., a California Corporation, 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 TSH, Inc., a California Corporation, 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