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EPA Brownfiel Gr Ap Port of DbqMEMORANDUM December 9, 2002 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:EPA Brownfleld Cleanup Grant Application for Petroleum Contaminated Property in the Port of Dubuque The EPA administers an environmental cleanup grant program that provides funding for petroleum-contaminated properties. A city may apply for up to $200,000 per site in grant funding. The proposed application will provide funding for a project that will cleanup the petroleum contaminated soil and groundwater found at the former Molo Oil Company site near the riveffront east of Bell Street. Part of the property is currently used as a parking lot with the remainder being vacant land; however, the vacant land portion of the site includes property that will provide for the expansion of the Grand Harbor Resort's water park in a future Phase 2 development. Economic Development Director Bill Baum recommends the City Council endorse the submission of an application for the EPA Brownfieid Cleanup Grant. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM December 4, 2002 TO:Michael Van Milligen, City Manager FROM:William Baum, Economic Development Director SUBJECT:EPA Brownfield Cleanup Grant Application for Petroleum Contaminated Property in the Port of Dubuque Introduction This memorandum requests City Council approval of a Resolution endorsing a Brownfield Cleanup Grant application to the U. S. Environmental Protection Agency (EPA) for petroleum contamination cleanup in the Port of Dubuque. Discussion The EPA administers an environmental cleanup grant program that provides funding for petroleum-contaminated properties owned by a municipality. Previously, petroleum cleanup was not an allowed activity under this grant program. A city may apply for up to $200,000 per site in grant funding. The proposed application will provide funding for a project that will cleanup the petroleum contaminated soil and groundwater found at the former Molo Oil Company site near the riverfront east of Bell Street. Part of the property is currently used as a parking lot with the remainder being vacant land; however, the vacant land portion of the site includes property that will provide for the expansion of the Grand Harbor Resort's waterpark in a future Phase 2 development. The attached Resolution authorizes the City Manager to make application for the EPA grant funding. The City has already completed environmental assessments of the property and has identified a proposed method of remediation that will not substantially disrupt use of the public parking lot. The remediation process, which may take as long as three years to complete, is estimated to cost $570,620. The City will pay for costs above and beyond the grant funds received with monies budgeted for Port of Dubuque redevelopment. Recommendation I recommend that the City Council endorse the submission of an application for the EPA Brownfield Cleanup Grant. This project will allow the cleanup of valuable riverfront property in the Port of Dubuque for eventual reuse, including the expansion of the Grand Harbor Resort and Waterpark. Action Step The action is to adopt the attached Resolution. Attachment F:\USERS~Pmyh re\WPDOCS',E PA~E PAa pp,M EM,d oc RESOLUTION NO. 645-02 A RESOLUTION ENDORSING THE SUBMISSION OF A BROWNFIELD CLEANUP GRANT APPLICATION TO THE U. S. ENVIRONMENTAL PROTECTION AGENCY FOR CLEANUP ACTIVITIES IN THE PORT OF DUBUQUE. Whereas, the City of Dubuque is interested in promoting further economic development opportunities in the Port of Dubuque area in order to retain and attract new job creating businesses to this community; and Whereas, the City of Dubuque and its America's River partners are investing over $188 million in the Port of Dubuque; and Whereas, petroleum contaminated property in the Port of Dubuque may hinder further investment in and development of key riverfront property; and Whereas, the U. S. Environmental Protection Agency, through its Brownfield Cleanup Grant program, has monies available for the cleanup of contaminated properties owned by municipalities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque hereby endorses the application to the U. S. Environmental Protection Agency for Brownfleld Cleanup Grant funding in the amount of $200,000 to cleanup petroleum contaminated property in the Port of Dubuque. Section 2. That the City Manager is authorized to sign, on behalf of the City Council, the application for EPA Brownfleld Cleanup Grant funding. PASSED, APPROVED and ADOPTED this 16th day of December, 2002. Terrance M. Duggan, Mayor Karen M. Chesterman, Deputy City Clerk F:\USE RS',Pmyh re'~WPDOCS~EPA~EPAapp.res.doc