Title/Name/Summary
Norman's Cleaners - Environmental Remediation
History
As the Village Board of Trustees is aware, Norman's Cleaners operated at the former Orland Park Plaza shopping center for many years. During these years of operation, the property was exposed to various dry cleaner solvents (some of which are no longer allowed to be used by the dry cleaning industry). The Village has been working with Norman's (Richard Villaume - owner) on an environmental remediation plan for the site. The Village has also retained Edward Cooney as our environmental consultant, who has been working with Norman's, the State of Illinois' Environmental Protection Agency (IEPA), and the State of Illinois' Dry Cleaners Remediation Fund (DCRF).
Under the current law, Norman's is responsible for the cleanup of the contamination of the site beneath the former dry cleaning site, but the law does not have the urgency of time. The owner has petitioned the State's (DCRF); however, the actual funding of the remediation project may not be for years. Additionally, the Village would not control the clean-up project and would result in the Village having to constantly monitor the work to ensure that it is at the standard that we desire. This would likely be a multi-year process and would include additional Village costs. The Village has been informed by Mr. Villaume that he has limited funds availabe to complete the remediation without some assistance from the Village. Though the Village could legally pursue Norman's to clean up the site, this would likely result in lengthy multi-year litigation and legal expenses that could be used to redevelop the site.
Finally, time is of the essence. Jefferson Street runs a few inches from the limits of the dry cleaner. And the cleanup, if completed expeditiously, clears the way for the University of Chicago project and the related public infrastructure work that needs to be done. Given this background information, staff is recommending approval of an Environmenal Remediation Agreement that will allow for the timely advancement of the project.
Overview of Scope and Terms of Agreement
Village environmental consultant estimates $251,408 in cleanup costs
-Oxidation treatment of PERC, then removal to clean disposal facility
-Estimate was approved by State Dry Cleaner Fund
-Clean to Tier I - Residential standards
-Deliverable is NFR letter from IEPA
Village will pick up $14,455 of incremental costs between residential and commercial cleanup levels.
Norman's will be responsible for $236,953 of commercial cleanup cost, which is reimbursable from the DCRF Fund.
Norman's will contribute $75,000 cash, "down payment" towards costs.
Village will loan $161,953 to Norman's under a Promissory Note.
-20-year amortization
-5-year balloon payment
-Interset rate at 1/2 of Prime (consistent with Revolving Loan fund amount)
-Can be increased by Village if project costs are higher, but only for verified expenses related to cleanup costs
-Loan will only be drawn upon approval by Village and consent of consultant for project cleanup costs
-Monthly P/I payments required by Norman's
-Expect DC Fund reimbursement to take 3-3.5 years to receive
-Norman's will offer property on Oak Park Avenue in Tinley Park as collateral, estimated value of $300,000.
If the Village Board concurs with the terms described above, staff will work to finalize the agreement.
Recommended Action/Motion
I move to approve an Environmental Remediation Agreement with Norman's Cleaners, as outlined above and authorize the Village Manager to execute the necessary documents.