07-25-13 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting — Thursday, July 25, 2013 6. NEW BUSINESS B. Airport Economic Development Area (1) continued... electrical equipment, metals and arsenic in on -site soils and chlorinated solvents and petroleum in on -site groundwater. The Commission sought to recover a portion of the environmental costs from third - parties associated with former activities at the sites, hiring the environmental specialist law firm of Plcws Shadley Racher & Braun LLP to represent it. Challenges included the fact that some potentially responsible parties and their insurers no longer existed or were insolvent. Nor were all environmental testing, remediation and disposal costs even potentially recoverable. The ten -year effort took the Commission's attorneys to federal and bankruptcy courts in several states and through Indiana's court system up to the Indiana Supreme Court twice. Key victories included proving that an existing company was the successor to Studebaker's automotive manufacturing liabilities and defeating statute of limitations claims. The effort required at least half a dozen mediations and settlement meetings resulting in 10 settlements. The amounts are confidential at the demand of the litigants paying them, but they yielded the Commission a total of approximately $5.6 million to offset environmental remediation costs. The Commission thanks the Studebaker National Museum and its staff, who helped the Commission's attorneys, found essential historical documents, as well as the dozen or so retired Studebaker and Oliver employees who also provided much helpful information. The total costs of the entire Studebaker /Oliver Plow Works project to date are approximately $26.8 million. The major costs include approximately $16.2 million in demolition, $3.6 million in land purchase and business relocation, $2.3 million in capital improvements, $2.8 million in engineering and $1.9 million in related professional services. $6.0 million of these costs have been paid for by state and federal grants. Environmental costs of $6.7 million are included in the numbers mentioned above, in the demolition, engineering and professional services categories. While most of the work is complete, both the Studebaker and Oliver areas are still in the Voluntary Remediation Program of the Indiana Department of Environmental Management. Additional groundwater testing and possible remediation will continue until the VRP program has been completed. Ms. Schey asked if there are copies of this summary available. Ms. Kolata responded that she has copies and will distribute them following her presentation. Ms. Schey asked if the Airport Economic Development Area will receive the $5.6 million from this settlement. Ms. Kolata responded that it will not. Some of the money was originally being deposited in a Redevelopment grant fund, but now the bulk of the money is in the loss recovery fund, on a separate line. Over the years, the City of South Bend has