Cemstone deal in Spring Lake Park delayed again

The Spring Lake Park City Council approved a fourth amendment to the purchase agreement with Cemstone Products Company Nov. 4.

The purchase agreement, signed Aug. 21, transfers the property at 8502 Central Ave. NE from Cemstone, a company that manufactures concrete, to the city of Spring Lake Park for $585,000. The city will use the existing building to house public works and police department equipment.

Still waiting on test results from the Minnesota Pollution Control Agency, the council extended Cemstone’s due diligence period a fourth time, from Nov. 8 to Nov. 22.

The state agency was called in when soil samples indicated a potential spill in late August.

Cemstone has received a verbal response from the MPCA that the spill is “not significant,” City Attorney Jeff Carson said at the council meeting Nov. 4, but until it is in writing, the due diligence period needs to be extended.

Carson and City Administrator Dan Buchholtz said they were fairly certain this would likely be the last extension.

Once Cemstone procures written confirmation from the MPCA that everything is in order, City Engineer Phil Gravel will go through and examine the MPCA’s report before the purchase is finalized.

The delays have not been all bad for the city.

“We probably saved $10,000 in property taxes because the proration happens at closing,” Buchholtz said.

“Saving money is always a good thing,” Councilmember Bob Nelson said.

The city plans to use a capital improvement bond to finance the purchase of the Cemstone building. Its sale is scheduled for Nov. 18.

Olivia Koester is at olivia.koester@ecm-inc.com

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