The loan, to be funded from sales tax dollars for economic development, is for clean up costs related to work completed by Comstock Construction at Building 20 on the former Imation campus.
Alisa Mitskog, at large alderman, said the CDC intends to pay back the loan within two years.
|
Advertisement |
While council members gave their support for the clean up and preparing the building for Bobcat Co., they stressed concern on a lease agreement with the former tenant, Giant Snacks LLC, and if they’d reimburse the CDC for the most recent cleaning.
The agreement indicates Giant Snacks would work with Braun Intertec, a third party environmental engineering company hired by the CDC, to return the building to a satisfactory condition to the landlord and tenant. And although Giant Snacks hired its own contractor, Service Master, to clean the facility, a report issued by Braun Intertec indicated sodium chloride in dust throughout the production area was still present. A salt neutralizing product had to be used over again, followed by a sealant. A second report revealed much of the residue was removed, but severe corrosion and rust wasn’t remediated.
Comstock Construction completed the cleaning process to the landlord’s liking.
“The CDC felt morally responsible to turn over a building in good condition,” said Harris Bailey, CDC chairman. “We can only hope our former tenant does fulfill their responsibilities under the lease.”
Bailey could not speak for the entire CDC board on whether they’d take any legal action against the building’s former tenant.
“We’ll have to cross that bridge when we come to that,” Bailey said.
Whether CDC receives compensation from Giant Snacks or not, Bailey assured the council they have the capability of paying the loan back within two years.
Citizen wrote on Nov 4, 2009 11:51 AM: