§ 161.007 ENVIRONMENTAL CONTROLS AND RESTRICTIONS.
   All development in the Railyard Environmental District shall be subject to the environmental controls and restrictions listed in this section. As part of the purchase of any surplus or other real property of the city in the Railyard Environmental District, the developer shall comply with any existing deed restrictions and must agree to do the following:
   (a)   An experienced, qualified, environmental consultant such as a registered professional engineer with a Petroleum Release Remediation Certification shall be retained by the developer to perform an environmental assessment in compliance with DENR criteria. If requested, the city may authorize the developer to perform the environmental assessment prior to purchase of any railyard property from the city to a developer. If an environmental assessment is not performed prior to purchase, it must be performed prior to the design phase of any development of the site.
   (b)   If the environmental assessment reveals the existence of regulated substances in groundwater at levels exceeding DENR groundwater quality standards or in soils exceeding the DENR soil remediation criteria or EPA risk-based screening criteria, the requirements in paragraphs (1) through (7) of this subsection apply.
      (1)   The developer’s environmental consult-ant shall develop a plan to remediate or clean up the contaminated area (“Clean-Up Plan”). The Clean-Up Plan must be approved by DENR and the city prior to remediating or cleaning up the site.
      (2)   Following approval of any required Clean-Up Plan, the developer must comply with the plan and clean up or remediate the property to meet DENR standards.
      (3)   In the alternative, if the developer does not clean up or remediate the property to meet DENR standards and DENR determines that allowing such contaminants to remain in situ would be acceptable or prudent in light of the proposed use of the property, the developer shall place a deed restriction or covenant on the property prior to final DENR approval and prior to any development of the property. If a required deed restriction or covenant is not placed on the property, the city may deny any city permit or approval for development, including, but not limited to, construction or building permits, platting, replatting, or subdivision platting, or a certificate of occupancy for such property.
      (4)   Any required covenant or deed restriction must be suitable to apprise future owners of regulated substances on the property and continuing DENR regulatory requirements, if any, and the requirements of this chapter. The covenant or deed restriction shall be submitted by the developer to the city attorney and DENR at least 30 calendar days prior to development. The language of any such covenant or deed restriction is subject to the approval of the city attorney. Following approval, the developer shall promptly record the covenant or deed restriction on the property.
      (5)   The city may deny any city permit, approval, or certificate for any development activities or property uses which would be contrary to the terms of any deed restriction or covenant required under this chapter.
      (6)   As part of the transfer of any of the above-described property from the city, the city shall reserve the right to deny approval of any future construction or building permit, certificate of occupancy, plat, replat, or subdivision plat for such property in the event: (i) the property has not been cleaned up or remediated under this chapter to the extent required; or (ii) a covenant or deed restriction has not been placed on the property if required; or (iii) the developer seeks a building permit or approval of a use which, if granted, would be contrary to the terms of any deed restriction or covenant required under this chapter.
      (7)   The city engineer may, after consul-tation with the DENR, consent to release any deed restriction or covenant if any required removal or remediation is completed or no further action is required by the DENR and monitoring demonstrates that the release of the deed restriction or covenant is consistent with the objectives in this chapter and the purposes of the covenant or deed restriction.
   (c)   Any development over, under, through, or on property in the Railyard Environmental District shall conform to the requirements listed below:
      (1)   Installing any wells to use or access groundwater for any potable purposes or for connecting groundwater to the municipal water system is expressly prohibited. Monitoring wells may be installed. Installation of wells for nonpotable uses including, but not limited to, closed loop geothermal systems, construction dewatering, and sump pump collection systems may be authorized by the city environmental storm water manager after consultation with the DENR, provided such uses are not otherwise prohibited by city ordinance or state law.
      (2)   Development may be undertaken only after the developer has obtained authority from the DENR, if any is required. Regardless of the size of the parcel to be developed, the developer must submit a Notice of Intent with the DENR prior to development and must comply with the current DENR General Permit for Storm Water Discharges Associated with Construction Activities.
      (3)   The minimum engineered environmental control required for soil remediation is removal of the top six (6) inches of soil from the area to be developed and replacement with uncontaminated soil. Additional work may be required by the city engineer or DENR based on specific design and construction, and environmental review by a qualified consultant as required by this chapter.
   (d)   Description, history, source document, and engineering controls.
      (1)   The property within the Railyard Environmental District was purchased by the city as part of its Downtown Sioux Falls Rail Yard Redevelopment Project (5th to 11th Street Corridor).
      (2)   History. This site was previously used for railroad operations. A Phase I and Phase II Environmental Site Assessment (ESA) was conducted in 2008. Contaminants of Concern (COC) identified on site included Total Petroleum Hydrocarbons (TPH), Polycyclic Aromatic Hydrocarbons (PAHs), and lead. Exceedances of commercial and/or residential standards of COCs in soils down to the bedrock were identified in some areas. Minor remedial activity has or will occur (see Engineering Controls) as part of the “Downtown Sioux Falls Rail Yard Redevelopment Project.” This remedial activity does not allow for unlimited use and unrestricted exposure at the site. Therefore, engineering and institutional environmental controls have been established to reduce or eliminate potential future exposure.
      (3)   Source document. Prior to future land use or development, the developer shall review, at a minimum, the following documents which are available from the city engineer: 1) the August 2013 Downtown Sioux Falls Rail Yard Redevelopment Project Environmental Assessment and Section 4(f) Evaluation; 2) September 26, 2013, Finding of No Significant Impact; and 3) August 31, 2015, Purchase and Sale Agreement and environmental commitments contained therein. Prior to future zoning development, the developer shall review any available site-specific information available from the South Dakota Department of Environment and Natural Resources.
   (e)   Procedures for Railyard Environmental District.
      (1)   When considering whether to accept, approve, or issue permits or otherwise grant authority for any work in the Railyard Environmental District, each of the city-permitting authorities listed in this chapter shall consider whether the means and methods proposed by the developer and its environmental consultant(s): (a) are consistent with the objectives listed above; (b) meet the requirements of the environmental controls listed in this chapter to the extent applicable; and (c) meet the criteria for approval or permitting required under other city ordinances for the activity under review.
      (2)   In addition to the requirements of this chapter, review and permitting for development in the Railyard Environmental District shall include all other city requirements. In the event other city requirements are inconsistent with the requirements of this chapter, then the more stringent requirement applies.
      (3)   New land uses or changes in land use, as well as any new developments, or any changes from current uses which are within the Railyard Environmental District will be reviewed by the chief planning and zoning official and forwarded to the city environmental/storm water manager for review to provide applicable requirements to maintain compliance with this ordinance. The procedures in Chapter 160.449 Downtown Planned Unit Development of the Ordinances of the City of Sioux Falls apply in addition to any requirements in this chapter.
(Ord. 73-18, passed 8-21-2018)