Acceptance of Grant and Approval of Contract:  Arizona Department of Environmental Quality Brownfields State Response Grant - Asbestos Abatement for the City of Flagstaff (for Midgley Market at 23 N. Beaver Street - aka The Lion and the Lamb Building)(Approve ADEQ grant contract for asbestos abatement).

The City owns the subject site which is contaminated with lead paint, asbestos, and mold.  This downtown building has been unoccupied and boarded up for over a decade.  If the City desires to redevelop the subject site, for example as a part of a Municipal Courts Facility, or if the City chooses to dispose of the property, abatement is required or appropriate.  This abatement work will change a City liability to an asset.

Subsidiary Decisions Points:  None.

The subject grant will pay for the entirety of the abatement and does not require matching funds.  Some staff time will be expended for associated work such as grant administration, bidding of the work, and construction contract administration.  While not currently anticipated, there may be some minor additional construction work needed (or desired) when the abatement work is complete.  This is an unfunded grant project and we will be using appropriation available in 001-09-402-3239-4-4421 which will have an offsetting revenue.

COUNCIL GOALS:
Effective governance

REGIONAL PLAN:
LU.3  Continue to enhance the region's unique sense of place within the urban, suburban, and rural context.
LU.9  Focus reinvestment, partnerships, regulations, and incentives on developing and redeveloping urban areas.
LU.11  Prioritize the continual reinvigoration of downtown Flagstaff, whose strategic location, walkable blocks, and historic buildings will continue to be a vibrant destination for all.
NH.1  Foster and maintain healthy and diverse urban, suburban, and rural neighborhoods in the Flagstaff region.
NH.2  Look to downtown Flagstaff as the primary focal point of the community character.
NH.6  Neighborhood conservation efforts of revitalization, redevelopment, and infill are compatible with and enhance our overall community character.
ED.7  Continue to promote and enhance Flagstaff's unique sense of place as an economic development driver.
ED.8  Promote the continued physical and economic viability of the region's commercial districts by focusing investment on existing and new activity centers.
ED.9  Promote redevelopment and infill as a well-established means to accomplish a variety of community economic, planning, and environmental goals.

No.

1)  Accept the Grant (Recommended):  A City liability becomes an asset, although we may need or want to do some minor additional work.
2)  Decline the Grant:  There is no advantage and funds for environmental clean-up will be needed in the future.

According to the date inscribed on the cornerstone over the front door, the building was constructed in 1927.  City directories show that beginning at least in 1929, the building was used for a food market.  Between at least 1948 and 1985, the building was used by successive sporting goods and liquor businesses.  Beginning at least in 1990, the building was used for a Christian bookstore (The Lion and Lamb) and as an office for Christian ministries.  It is not known when the building was no longer used for this purpose.  The City of Flagstaff acquired the property through condemnation in December of 2004.  The building is currently vacant and unoccupied due to extensive contamination (asbestos, lead, and mold).

It is anticipated that the abatement work, strictly performed, would render the building more structurally unsafe than it is today.  Therefore, the contract for this work will include additional work as required to leave the building and/or site in a non-hazardous condition.  As the least expensive method, this mostly likely means demolition of the entire building.   While it is staff's intention to explore cutting the property line walls and leaving the bottom few feet as a screen wall, this may not be aesthetically, structurally, or economically feasible.  The costs and the grant request were based on the demolition of the entire building as the most practical means to conclude the work with non-hazardous conditions.

The abatement contract will include obtaining the necessary permits to perform the work and these costs were also anticipated and included in the grant request.  To obtain a demolition permit, a Cultural Resource Study (CRS) is required first.  If the Phase I CRS recommends a Phase II CRS, staff would likely prepare this second report (drawings and photographs that document the building).

Over the entrance door of the building is a cornerstone block inscribed with "Midgley 1927".  The abatement work contract will include preserving that block and delivering it to a City owned storage location.  Staff contacted the family of the owner of Andy's Sporting Goods (a former occupant) and they have expressed initial interest in obtaining the cornerstone block.

On the Aspen Avenue side of the building is a biblical theme mural by Joe Sorren.  It is one of his earlier works, done while he was in college.  The stucco of the wall surface is poorly bonded to the glazed bricks behind.  This combined with the masonry wall construction makes salvaging the mural physically and economically infeasible.  The CRS would document the mural with photographs prior to demolition.

The Community Code Enforcement Program and the Community Design and Redevelopment Program have been installing bulletin boards in downtown to reduce illegal handbill posting and one such board is currently mounted on the Midgley Building.  The program staff are aware that the building may be demolished and have plans to relocate the bulletin board.

When the work of the grant is complete, the City may want to fence off the then open area (potentially a hole) where the building used to be, or the City may choose to pave the area for expanded parking.  Inexpensive options could involve the simple use of road base with the work performed by City crews.  These costs have NOT been included.  Also, unforeseen conditions have NOT been included and ADEQ will NOT consider additional funds should we encounter unforeseen conditions. 

The terms of the grant are such that the City must participate in ADEQ's Voluntary Remediation Program (VRP).  Through this program, property owners, prospective purchasers and other interested parties investigate or clean up a contaminated site in cooperation with ADEQ.  VRP results in a streamlined process for program participants who work with a single point of contact at ADEQ to address applicable cross-program remediation efforts.  ADEQ reviews these voluntary remedial actions and provides a closure document for successful site remediation that is accepted by all relevant ADEQ programs.  The cost of participating in the VRP is included in the grant amount but the funds will transfer directly (not passing through the City) making the effective grant amount $45,250.

Environmental clean-up of this site would aid the City's efforts on a variety of possible paths.  In the short term, the current Municipal Courts Facility could benefit from an expanded parking area.  Should the City choose to construct a new Municipal Courts Facility on this site, this work anticipates that project and reduces the costs for same.  Should the City choose to dispose of the property at some point, clean-up would be appropriate and this work anticipates that need.  At all times, eliminating an empty boarded up building from downtown is an advantage.

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