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Serving Northern St. Louis County, Minnesota

TEDA seeks plan to address Abrahamson property

Jodi Summit
Posted 4/18/18

TOWER- The Tower Economic Development Authority recommended, at their April 12 meeting, that the city seek to conduct environmental testing to detect possible below-ground contamination at the old …

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TEDA seeks plan to address Abrahamson property

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TOWER- The Tower Economic Development Authority recommended, at their April 12 meeting, that the city seek to conduct environmental testing to detect possible below-ground contamination at the old Classy Cars site on Main Street, currently owned by Ron Abrahamson Sr. This would be the first stop to remediating any possible problems at the now-vacant building.

While an old petroleum leak on the grounds of the site was remediated when the underground gasoline tanks were removed in 1998, the building had an indoor hydraulic lift for working on automobiles, so there is the potential for non-petroleum contamination underneath the building.

A potential buyer for the building is estimating it may cost up to $67,500 to have the site “shovel ready,” which includes any needed remediation along with the removal of the old gas pumps and concrete structures, and underground gas lines. The buyer is planning retail and furniture production space on the ground floor, and four apartments on the second floor.

A soil vapor test is required as the first step in a remediation plan. This test must be done once in the winter and once in the summer. The estimated cost for this testing is $2,100. Once these tests are complete, further assessments and possible remediation, including installation of an underground monitoring system, may be required.

The winter phase of testing must be done while frost is still in the ground, so if not completed soon, will have to wait until next winter.

TEDA members discussed the project, which is complicated by the fact that the building is not owned by the city, and the potential buyer needs the pollution liability issues resolved before completing a purchase of the building.

“It’s kind of a catch-22,” said TEDA Chair Steve Peterson Sr.

TEDA will look into options for grant funding through state programs for any remediation needed, and what programs are available for privately-owned versus city-owned properties.

“We are all in agreement this is the type of development we’d like to see on Main Street,” said TEDA member Joan Broten. “But how do we do it legally?”

If the current interested buyer decides not to purchase the building, the issues surrounding the remediation are still of concern, TEDA members noted, since they will need to be corrected before the building can be reoccupied.