Discussion:
The redeveloper, Deco Shakopee, LLC (Enclave) has run into some substantial cost overruns, largely because of environmental issues. The soils were found to have Perchloroethylene, a colorless liquid that is also called tetrachloroethylene, PERC, or PCE. It is primarily used for dry cleaning fabrics and degreasing metals. There was evidence of a leak from the adjacent former dry cleaning site to the east. The material is highly regulated because it is a known high risk chemical. The Minnesota Pollution Control Agency (MPCA) was notified and they have released the City of Shakopee, Shakopee EDA and Deco Shakopee from liability for the contamination but required that the material be removed from the site and disposed of in a regulated manner, not to a typical landfill. Also, the former city hall foundations that were previously holding up the sidewalk alley and street, were found to have additional asbestos containing materials on the walls and footings. These materials must also be handled and disposed of in a regulated landfill.
The redeveloper was also faced with additional costs for undergrounding and moving the electrical transformers that serve the northern portion of the block. The moving of these items and the new duct bank are the city's responsibility under the agreement with Shakopee Public Utilities.
The redeveloper paid the EDA $250,000 at the closing on the property. This was not contemplated in the original agreement and the EDA has been holding these funds. The Amendment gives these funds back to the redeveloper. The modification also calls for the city to participate in the street tree replacement of up to $50,000 paid for out of the city's tree fund. The city standard for new trees in the downtown to be planted in Silva Cells that allow the roots to grow down and out without damaging the sidewalks. This lessens potential maintenance and trip hazards while also allowing for a healthier tree. The trees planted along Lewis Street are in these cells. The University of Minnesota has been monitoring the initial growth and stability and has found less die back and more growth in these trees than others not in the cells.