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Resolution No. 98- 5. Proposed Redevelopment-Mr. Michael Douglas proposes to operate a non-water related business at the facility. The proposed business would not involve the discharge of wastewater, except for the discharge of domestic wastewater due to employees working at the site. 6. Michael Dou;las' Request-Mr. Douglas indicates that he will provide the future remediation described in paragraph No. 4 above, if the Regional Board issues a waiver of liability for the groundwater cleanup. Douglas seeks a commitment form the Board that he and any successor in interest will not be named as responsible parties for cleanup of existing groundwater contamination or salts discharged to soils at the site by previous landowners. 7. Board Authority- On 9 July 1996,the State Water Resources Control Board Executive Director issued a memo regarding the release of liability for prospective purchasers for regional water board consideration in evaluating such requests. The memo addresses agreements between regional water boards and owners or prospective purchasers of polluted property, including covenants not to sue. Pursuant to the Board's statutory authority,the Board can enter into agreements whereby the Board covenants not to name prospective purchasers,tenants,lenders, and related parties in enforcement actions for remediation of polluted properties if such agreements are sufficiently in the public interest. 8. Benefits of Redevelopment-The site has been inactive since meat processing operations ceased in 1991. The site has been extensively vandalized and fires have burned some site buildings. Redevelopment of the property would have economic benefits to the local community and to the public at large. The proposed redevelopment would employ an unknown number of persons with payroll and income taxes accruing to the State and County. Anticipated annual real estate taxes are estimated at$12,112. Currently, back taxes and penalties amount to $783,599. If the proposed sale of the property proceeds, all taxes and penalties will be paid to San Joaquin County. 9. Potential Concerns and Resolution: Various parties have approached Board staff over the past seven years and expressed interest in purchasing the site. None of these parties pursued purchase of the property after they were informed of the potential liability for cleanup of the site. a 10. CEQA: Execution of a Mutual Release and Covenant Not to Sue is not a"project" as defined by ,�. the Public Resources Code Section 21065 and 14 CCR 15378 (a) and is therefore exempt from the California Environmental Quality Act. t 11. Public Notice: The Board provided notice of its intention consider this matter at the 27 February 1998, Board meeting and provided an opportunity for interested persons to comment on the draft resolution and its attachments. 12. Public Meetinty g: The Board, at a public meeting,heard and considered all comments pertaining to the proposed Prospective Purchaser Agreement. NOW,THEREFORE BE IT RESOLVED, that the Board authorizes the Executive Officer to negotiate sign and execute an agreement with Mr. Douglas containing a Mutual Release and Covenant Not to Sue that is essentially similar to Attachment 1 to this Resolution.