2005/09/14 Council Agenda Packet

• EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET r PROJECT TITLE: Consent COUNCIL BILL# ASARCO SMELTER 9/14/05 Action Originating Department Legal REDEVELOPMENT AREA— First Reading Contact Person Peter Camp ADVANCEMENT OF Second Reading Phone Number X 8624 ADDITIONAL CLEANUP Third Reading FOR AGENDA OF 9/14/05 COSTS Public Hearing Initialed by: Department Head _AL�_ CAA Council President -711(64.41-'" ' Location Preceding Action Attachments Department(s) Approval Res. 5504 designating blighted area (7/21/04) North Everett Res. 5505 community renewal plan (7/21/04) Approval of Contingent Funding Agreement Agreement (7/21/04 Amount Budgeted Expenditure Required Account Number(s): Budget Remaining Additional Required DETAILED SUMMARY STATEMENT: ASARCO filed bankruptcy and instructed the contractor cleaning up the smelter site to stop work. Barclay's North, Inc. agreed to purchase the vacant land when the Dept. of Ecology certifies the clean up is completed. ASARCO's bankruptcy jeopardizes both the clean up and the sale of the vacant land to Barclay's North. The City previously guaranteed a line of credit for the Housing Authority. Completing the sale to Barclay's North substantially reduces the City's financial risk. The Housing Authority estimates that ASARCO's cost to complete the cleanup will be approximately $900,000. The Dept. of Ecology agreed to increase its grant by$450,000. The Housing Authority agreed to contribute$225,000 from the profits of its sale of the Park Ridge condominiums, and the City agreed to contribute$225,000. The Housing Authority needs bridge financing, however, for the Ecology portion and for its portion. Ecology only disburses grant funds after payment of the vendor's invoices. The Housing Authority needs financial help to pay the invoices so it can then get the grant money. The proposed agreement provides the City will advance the money to complete the work and will be reimbursed by the Housing Authority when it receives funds from Ecology and profits of the sale of the Park Ridge condos. The proposed agreement also preserves any ability of the City and the Housing Authority to - pursue ASARCO. RECOMMENDATION (Exact action requested of Council): AUTHORIZE THE MAYOR TO SIGN AN AGREEMENT REGARDING THE ADVANCEMENT OF ADDITIONAL CLEANUP COSTS WITH THE EVERETT HOUSING AUTHORITY ' Ied i!