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Environmental Covenant for Former Dubuque Hardwoods SiteMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Environmental Covenant for former Dubuque Hardwoods Site DATE: April 13, 2011 Mi hael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director Dubuque AA- AmedcaCity 1 I 2007 The City purchased the Dubuque Hardwoods site on 5 Street in the Port of Dubuque to facilitate the redevelopment of the area. The site had a leaking underground storage tank which has contaminated the soil and groundwater on a portion of the property. The City has been monitoring the site for several years, as required by the Iowa Department of Natural Resources (DNR). The latest Site Monitoring Report has shown that the contamination is not moving and does not impose a risk given the current conditions and use of the property. The DNR will not require additional monitoring of the site if the City places an environmental covenant on the property which prohibits drinking water wells on the site. Economic Development Director Dave Heiar recommends City Council approval of an environmental covenant on Lot 2 Riverwalk 9 Addition in the Port of Dubuque to prohibit drinking water wells on the property. This will allow the site to be reclassified as No Action Required by the Iowa DNR. I concur with the recommendation and respectfully request Mayor and City Council approval. Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director SUBJECT: DATE: April 11, 2011 Environmental Covenant for former Dubuque Hardwoods Site Dubuque hitid All- AmdlcaCity 2007 INTRODUCTION This memorandum asks for City Council action placing an environmental covenant on the former Dubuque Hardwoods site in the Port of Dubuque. BACKGROUND The City purchased the Dubuque Hardwoods site on 5 Street in the Port of Dubuque to facilitate the redevelopment of the area. The legal description for the property is Lot 2 of Riverwalk 9 Addition. The site had a Leaking Underground Storage Tank (LUST) which has contaminated the soil and groundwater on a portion of the property. The City has been monitoring the site for several years as required by the Iowa DNR. DISCUSSION The latest Site Monitoring Report has shown that the contamination is not moving and doesn't impose a risk given the current conditions and use of the property. The DNR will not require additional monitoring of the site if the City places an environmental covenant on the property which prohibits drinking water wells on the property. Closed - loop geothermal wells are not prohibited by the covenant. Alliant Energy has a utility easement on a small portion of the site. Their legal counsel has advised not to be a party to the environmental covenant. Counsel for the Iowa DNR has determined that they do not need to be a party to the covenant. RECOMMENDATION It is recommended to approve the attached resolution approving an environmental covenant on Lot 2 Riverwalk 9 Addition in the Port of Dubuque to prohibit drinking water wells on the property. This will allow the site to be reclassified as No Action Required by the Iowa DNR. ACTION STEP The action is to approve the attached resolution. Environmental Covenant Recorder's Cover Sheet Type /Title of document: Environmental Covenant Return Document to: Kevin S. Fimstahl, Acting City Clerk City of Dubuque 50 West 13th Street Dubuque, IA 52001 563 -589 -4121 Preparer Information: Julie Oriano Stanley Consultants 2658 Crosspark Road, Suite 100 Coralville, IA 52241 319.626.5330 Taxpayer Information: City of Dubuque City Hall 50 W 13 St Dubuque, IA 52001 -4864 Doc ID 007042230009 Type GEN Kind MISCELLANEOUS. Recorded: 05/10/2011 at 10:43:35 AM Fee Amt: $49.00 Page 1 of 9 Dubuque County Iowa Kathy Flynn Thurlow Recorder F11e2011- 00006654 Grantor: City of Dubuque Holder /Grantee: City of Dubuque Legal Description: Lot 2 of Riverwalk Ninth Addition in the City of Dubuque, Dubuque County, Iowa Prepared /Return to: David Heiar, Economic Development, 50 W. 13 Street, Dubuque, IA 52001 (563) 589 -4393 RESOLUTION NO 129 -11 RESOLUTION APPROVING AN ENVIRONMENTAL COVENANT ON LOT 2 OF RIVERWALK NINTH ADDITION IN THE PORT OF DUBUQUE. Whereas, property in the Port of Dubuque had a Leaking Underground Storage Tank; and Whereas, recent reports show the environmental contamination is at a level that does not require additional monitoring; and Whereas, the Iowa Department of Natural Resources requires an environmental covenant be placed on the property to prohibit drinking water wells on the property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Environmental Covenant for Lot 2 of Riverwalk Ninth Addition is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute said Covenant on behalf of the City of Dubuque and the City Clerk is authorized and directed to attest to his signature. Section 3. That the City Clerk is to record the covenant at the Dubuque County Recorder's Office. Passed, approved and adopted this 18 d) ril, 2011. 1 Atte air Roy D. Buol, Mayor anne F. Schneider, City Clerk F: \USERS \Econ Dev \Environmental \Dubuque Hardwoods\20110418 Reso approving DBQ hardwoods EC.doc (Paq. 1 of 14) PROJECT: 6118.7 1111111111111111111 Doc ID: 006939710014 Type: OEN Kind: SUBDIVISION PLAT Recorded: 09 /23/2010 at 04:04:41 PM Fee Ant: 874.00 Pao. 1 of 14 Dubuoue County Iowa Kathy Flynn Thurlow Recorder Fi4e2010- 00012178 PREPARED BY: LAWRENCE A. BOYER L.S. 9761 WHKS & CO., 1701 ROUTE 35 NORTH, EAST DUBUQUE, IL 61025 (815)747 -8833 N.A.P. MATCH SHEET 3 LINE SHEET 2 LOT 1 LOT 2 LOT A COMBINED INTO LOT B COMBINED INTO LOT C COMBINED INTO LOT D COMBINED INTO TOTAL AREA SURVEYED Survey Requested By: CITY OF DUBUQUE PLAT OF SURVEY RIVERWALK NINTH ADDITION IN THE CITY OF DUBUQUE, DUBUQUE COUNTY, IOWA INDEX SHEET INDUSTRIAL SURD 2 LOT ''I LOT S1Y CORNER LOT 2 OF 1 RIVERWAU( SI%THi ADDITION SE'LY LINE LOT 2 OF I RIVERWALK 13TH ADDITION BASIS OF BEARING IS DUBUQUE AREA GIS AREA SURVEYED EAST FIFTH STREET EAST FIFTH STREET BELL STREET BELL STREET WHKS & Co. ENGINEERS PLANNERS Lv41 SURVEYORS 1701 ROUTE 35 NORn1 EAST DUBUQUE, IL 81027 -5534 815 -747 -8133 CENTERLINE OF RIGHT OF WAY CHORD DEFINI1ION CURVE DATA CENTRAL ANGLE 102 ° 56'19' (102'43'10) LENGTH 1715.64' (1712') \ RADIUS 955.3T (6' CURVE) .P' 6.187 ACRES 12.500 ACRES 0.067 ACRES 0.174 ACRES 0.016 ACRES 0.267 ACRES 19.211 ACRES ?LAWRENCE A. z BOYER 9761 .. '••....... *.. T} , PElrr1 1 3313 \ 1,.. IOWA S'LY RIGHT OF WAY LINE CHICAGO CENTRAL & PACIFIC RAILROAD (FORMERLY DUBUQUE AND DUNLEITH BRIDGE COMPANY RIGHT OF WAY) SCALE IN FEET 1' m 200' •e 4 .N 1, 0 100 200 \ 4 1$ q, f L 3 41 _ OEQ 32F� SHEET 2 OF 7 S it 1,Oti:1 ELY CORNER LOT 2 OF 1 RIVERWALK 515111 ADDITION LEGEND FOUND T -BAR WITH CAP 9761 FOUND CUT "X" IN CONCRETE PLACED T- BAR WITH CAP 9761 PLACED CUT "X" IN CONCRETE SURVEYED BOUNDARY LINE EASEMENT LINE RECORD N.A.P. DHICA • 0 400 NOT PART OF THIS PLAT DUBUQUE HARBOR IMPROVEMENT COMPANY ADDITION 1 hereby certify thot this land surveying document was prepared and the related survey work was performed by me or under my direct p oral supervision and that I am a duly licensed Land under the la 000fff the State of lowo. X907 p A Dote Lawrence A. Boyer License Number 9761 Date of Survey March 1, 2009 My license renewal dote is December 31, 2010 Sheets covered by this seal: 1 Through 7 of 7 eittElAt OW SHEET 1 OF 7 Book , Page , File Number 2010 - 00012178 Legend • Soil Boring /Monitoring Well Location ' N_ Road Centerline Notes: 1. 2009 Aerial photograph obtained from the City of Dubuque GIS Department. 0 75150 300 450 600 Feet Stanley Consultants INC. January 2011 SITE VICINITY MAP - 2009 Former Dubuque Hardwoods 205 E. 6th St. Extention Dubuque, Iowa Figure 4 ENVIRONMENTAL COVENANT This environmental covenant is established pursuant to Iowa Code chapter 455I entitled Uniform Environmental Covenants Act (see also 2005 Iowa Acts, Senate File 375). The City of Dubuque, hereafter "grantor" or "holder /grantee ", and the Iowa Department of Natural Resources (Department) in its capacity as an agency, enter into this environmental covenant for the purpose of subjecting the property described below to certain activity and use limitations in accordance with the terms and conditions as . specified and the authorities granted the Department in Iowa Code section 455B.103(7), section 455B.474(1)(f)(4) "f', Iowa Code chapter 455I, and Department rules in chapter 567 Iowa Administrative Code (I.A.C.) 135. 1. Affected Property. The grantor is the fee title. owner of the property identified on the attached plat maps (see Exhibit "A ") and legally described as: Lot 2 of Riverwalk Ninth Addition in the City of Dubuque, Dubuque County, Iowa. Hereinafter, the affected property will be referred to as "the property." 2. Risk Management and Institutional Controls. The City of Dubuque has conducted a soil and groundwater investigation and risk assessment (tiered site assessment) of the property in accordance with Department rules in chapter 567 I.A.C. 135. This assessment constitutes an environmental response project as defined in Iowa Code section 455I.2(5). The purpose of this environmental covenant is to manage the risk of future exposure to existing soil and/or groundwater contamination at the site by limiting specified land use activities at this property, establishing affirmative obligations, and enforcing the terms of this covenant. 3. Tiered Assessment Reports. Department files reference the UST source site located at 205 East 6th Street Extension by Registration No. 8601860 and LUST NO. 8LTN99, and by the name Dubuque Hardwoods Inc. The Department approved a low risk classification for the site on March 20, 2000. The Site Monitoring Report dated January 7, 2011 proposes a no further action classification with the use of institutional controls. The Department, in a letter dated , approved the response action for this property. -1- 4. Reopening. The signatories acknowledge that failure of the activity and use limitations to serve their intended purpose including the prevention of exposure to contamination could result in the Department reopening its review and regulation of the contaminant condition on the property as provided under the terms of this covenant, Iowa Code chapters 455B and 455I, and applicable Department administrative rules. 5. Identity of Grantor and Holder /Grantee). GRANTOR: City of Dubuque HOLDER/GRANTEE: City of Dubuque AGENCY: Iowa Department of Natural Resources 6. Representations and Warranties. The grantor warrants to the other signatories to this covenant the following: a. The grantor is the sole fee title owner of the property; b. The grantor holds sufficient fee title to the property to grant the rights and interests described in this covenant free of any conflicting legal and equitable claims; c. With the exception of an Underground Electric Line Easement held by Interstate Power and Light Company and recorded in the Office of the Dubuque County Recorder (instrument number 2010 -14348 ); and a Visibility Corridor Easement held by the City of Dubuque and recorded in the Office of the Dubuque County Recorder (instrument number 2006- 9265), the grantor has identified no other persons holding legal or equitable interests, including, but not limited to, contract buyers, mortgage holders, other consensual lien holders and lessees. The grantor has and secured the consent of the easement holders by signatures on this covenant. 7. Running with the Land. This environmental covenant is perpetual and runs with the land as provided in Iowa Code section 455I.9 until modified or terminated. The terms of this environmental covenant are binding on the grantor and all successors in interest, assigns and all transferees acquiring or owning any right, title, lien or interest in the property and their heirs, successors, assigns, grantees, executors, administrators and devisees. The term "transferee," as used in this environmental covenant, shall mean any future owner of any interest in the property or any portion thereof, including, but not limited to, owners of an interest in fee simple, contract buyers, mortgagees, easement holders and/or lessees. 8. Activity and Use Limitations and Terms. The property is subject to the following activity and use limitations: -2- a) No drinking water or non - drinking water wells as defined in Iowa Department of Natural Resources Rule 567 Iowa Administrative Code 135.2 and as subsequently amended shall be installed within the boundaries of the property. For purposes of reference, drinking water well is defined as (according to Iowa Administrative Code, Chapter 135.2): "Any groundwater well used as a source for drinking water by humans and groundwater wells used primarily for the final production of food or medicine for human consumption in facilities routinely characterized with the Standard Industrial Codes (SIC) group 283 for drugs and 20 for foods. (or the North American Industry Classification System (NAICS) Codes of 3254 for drugs and 311 for food)." Non - drinking water wells are defined as (according to Iowa Administrative Code, Chapter 135.2): "Any groundwater well (except an extraction well used as part of a remediation system) not defined as a drinking water well including a groundwater well which is not properly plugged in accordance with department rules in 567- Chapters 39 and 49." b) The following exceptions apply: a. Closed -loop geothermal wells are not restricted on the property by this environmental covenant. b. Monitoring wells are allowed to determine current site conditions for property transactions or as may be required by law. c. As otherwise provided for in Paragraph 10 below. 9. Notice of Non - Compliance. Any property owner or subsequent transferee of an interest in the property shall notify the Department as soon as possible of conditions which would constitute a breach of the activity and use limitations in paragraph eight (8) if they have actual knowledge of these conditions or would reasonably be deemed to have knowledge within the normal course of administration of their property interest. 10. Access to Property. Reasonable access to the property is granted the Department or any authorized representative of the Department, public or private, for the purpose of implementation, monitoring and enforcement of the terms of this environmental covenant. The Department, its authorized representatives or other persons entitled to access shall provide the current owner of the property with reasonable notice, an explanation of the reasons for entry and the scope of onsite activities prior to access. 11. Groundwater Hazard Statement Notice. The signatories and all subsequent transferees required to submit a groundwater hazard statement under Iowa Code section 558.69 shall make reference to this environmental covenant in substantially the following form: THE INTEREST CONVEYED IS SUBJECT TO AN ENVIRONMENTAL COVENANT, DATED [ date: month, day, year] RECORDED IN THE DEED OR OFFICIAL RECORDS OF THE -3- COUNTY RECORDER ON [ date: month, day, year] IN [document, book and page, or parcel number]. THE ENVIRONMENTAL COVENANT CONTAINS THE FOLLOWING ACTIVITY AND USE LIMITATIONS: [language that describes the activity and use limitations exactly as it appears in the environmental covenant, paragraphs 8(a) and 8(b).] 12. Modification and Termination. Modification or termination of the terms of this covenant shall comply with the standards in Iowa Code chapter 455I and applicable Department administrative rules. The terms of this environmental covenant may be modified or terminated by written consent of the Director of the Department, the then current fee simple title owner and all original signatories (unless exempted under the provisions of Iowa Code section 455I.10(1) "c" in accordance with and subject to the provisions of Iowa Code section 455I.10). The termination or modification is not effective until the document evidencing consent of all necessary persons is properly recorded. If not by consent, any modification or termination of this environmental covenant shall be in accordance with Iowa Code section 455I.9 and such additional terms as specified in this covenant. 13. Enforcement. The terms of this environmental covenant may be enforced in a civil action for injunctive or other equitable relief by the signatories and those persons authorized by and in accordance with Iowa Code section 455I.11. 14. Severability. If any provision of this environmental covenant is found to be unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 15. Governing Law. This environmental covenant shall be governed by and interpreted in accordance with the laws of the State of Iowa. 16. Recordation. Within thirty (30) days after Department approval of this environmental covenant, the grantor shall record the environmental covenant in the same manner as a deed to the property with the Dubuque County, Iowa, Recorder's Office. 17. Effective Date. The effective date of this environmental covenant shall be the date upon which the fully executed environmental covenant has been properly recorded with the Dubuque County, Iowa Recorder's Office. 18. Notice. Unless otherwise notified in writing by the Department, any document or communication required by this environmental covenant shall be submitted to: 17. Effective Date. The effective date of this environmental covenant shall be the date upon which the fully executed environmental covenant has been properly recorded with the Dubuque County, Iowa Recorder's Office. 18. Notice. Unless otherwise notified in writing by the Department, any document or communication required by this environmental covenant shall be submitted to: 19. Subordination and Consent. By signing this environmental covenant, the signatories knowingly and intelligently acknowledge their consent to the terms of this agreement and agree to subordinate their interest in the property. GRANTOR and HOLDER/GRANTEE: ATTEST: State of Iowa Iowa Department of Natural Resources UST Section Supervisor Wallace State Office Building 502 E 9 Street Des Moines, IA 50319 County of Dubuque ) ss. ACKNOWLEDGMENTS DATE: DATE: Jeanne -F -S Im:od ' Kevin S. Firnstahl git _cder4r Acting City Clerk On this �' A day of cfna , 2011, before me a Notary Public in and for said County and State, personally a geared Roy D. Buol and Kevin S. Firnstahl, to me_ personally known, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa; that said instrument was signed on behalf of said City of Dubuque by authority of Resolution No. 129 -11 and that the said Roy D. Buol andKevin S. Firnstahl,as such officers, acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. blic for State of Iowa - 4//7 BRENDA FUGLSANO Commission Number 745661 My Comm. Exp. MAO 19, 2013 , Notary AGENCY: IOWA DEPARTMENT OF NATURAL DATE: � —,/ RESOURCES By: State of Iowa County Polk 4 684289.1 Roger L. Lande Iowa Department of Natural Resources ) ss. On this l day of j //J / , 20 // , before me personally appeared Rodger Lande, known to me o be the Director of the Iowa Department of Natural Resources or the lawful designee of the Director who executed the foregoing instrument, and acknowledge that this person executed the same as her volu tary act and deed. bli for State of owa LISA NISSEN COMMISSION NO. 721371 MYCO %77a EXPIRES Notary