| ITEM #: 13. DATE: 06/06/2022 AI #:947 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | TERMINATION OF EASEMENTS ASSOCIATED WITH ABANDONED CITY WELL SITE #4. |
| STAFF PRESENTER(S): | Linda Beals, Real Estate Coordinator |
SUMMARY
Approval of the termination of the Well Site Easement and the Water Line Easement for abandoned City Well Site #4, located southwest of Van Buren Street and Litchfield Road.
Recommendation
Approve the Termination of Easements associated with the abandoned City Well Site #4. (Linda Beals, Real Estate Coordinator)
FISCAL IMPACT
There will be no fiscal impact to the city in the fiscal year 2022 or future years related to the termination and release of these easements.
BACKGROUND AND PREVIOUS ACTIONS
On or about March 5, 1963 the Universal March Corporation, a Delaware corporation provided two perpetual easements to the Town of Goodyear. One of the easements was for Well Site #4 and the second one was for the associated water line (the “Easements”).
In approximately 1985, the well located on the site known as Well Site #4 was abandoned by the Town of Goodyear due to presence of TCE and perchlorate in the groundwater caused by the chemical disposal practices of Unidynamics/Phoenix, Inc, a Delaware corporation (“Unidynamics”), Crane Co., a Delaware corporation (“Crane”) and their corporate predecessor, and the closure of which became the subject of a claim and counterclaim between the UPI, Crane and the City.
In January 2006, Council approved a Settlement Agreement and Release by and between UPI, Crane, and the City (“2006 Settlement Agreement”), which in addition to other terms and conditions, required: a.) UPI and Crane to abandon and close Well Site #4 at their sole cost and expense; and b.) the City to transfer ownership of the well to Crane Co. The settlement agreement was silent regarding the easements.
The City executed and recorded the Notice of Transfer of Well Site #4 as recording number 2007-0871815 in the official records of Maricopa County on August 1, 2007, transferring all rights to the well to UPI and CRANE. Then in January 2008, Crane completed the closure of the well and filed a Well Owner’s Notification of Abandonment for Well Site #4 with the Arizona Department of Water Resources.
In approximately 1985, the well located on the site known as Well Site #4 was abandoned by the Town of Goodyear due to presence of TCE and perchlorate in the groundwater caused by the chemical disposal practices of Unidynamics/Phoenix, Inc, a Delaware corporation (“Unidynamics”), Crane Co., a Delaware corporation (“Crane”) and their corporate predecessor, and the closure of which became the subject of a claim and counterclaim between the UPI, Crane and the City.
In January 2006, Council approved a Settlement Agreement and Release by and between UPI, Crane, and the City (“2006 Settlement Agreement”), which in addition to other terms and conditions, required: a.) UPI and Crane to abandon and close Well Site #4 at their sole cost and expense; and b.) the City to transfer ownership of the well to Crane Co. The settlement agreement was silent regarding the easements.
The City executed and recorded the Notice of Transfer of Well Site #4 as recording number 2007-0871815 in the official records of Maricopa County on August 1, 2007, transferring all rights to the well to UPI and CRANE. Then in January 2008, Crane completed the closure of the well and filed a Well Owner’s Notification of Abandonment for Well Site #4 with the Arizona Department of Water Resources.
STAFF ANALYSIS
Goodyear Industrial Properties, LLC, a South Carolina limited liability company (“GIP”) is in the process of developing the property which includes the area encumbered by the Easements as part of the JDA Commerce Center and neither the City or GIP has been able to find record of the City specifically terminating their interest in the Well Site #4 Easement or the associated Water Line Easement.
The termination of the Well Site #4 easements is consistent with the intent of the 2006 Settlement Agreement, and the City has confirmed there is no current or future use for the Well Site #4 Easement or the associated Water Line Easement. Therefore, staff is recommending the city terminate the Well Site #4 easements as described in the Termination of Easements attached hereto.
The termination of the Well Site #4 easements is consistent with the intent of the 2006 Settlement Agreement, and the City has confirmed there is no current or future use for the Well Site #4 Easement or the associated Water Line Easement. Therefore, staff is recommending the city terminate the Well Site #4 easements as described in the Termination of Easements attached hereto.