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Lockport to pursue cleanup of leaking tanks at 1728 State Street with TIF fronting and state reimbursement
Summary
City staff and V3 Environmental described a plan to remove underground tanks and remediate contamination at 1728 State Street (Tassoni Properties), using TIF funds to front costs and pursuing state leaking underground storage tank (LUST) reimbursement; ownership transfer is pending.
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Lockport staff told the City Council they will move forward with environmental remediation at 1728 State Street, known as Tassoni Properties, after investigations found underground storage tanks and other site contaminants.
"This parcel in particular has a few other challenges in there with the demolition of the building. The state won't cover that. We're gonna need to kinda shore up a retaining wall to to protect the parcel integrity in the home above it," Ben, a city staff member, said. He described a V3 Environmental proposal of roughly $243,000 and recommended adding contingency so the city can use TIF funds to cover costs the state does not reimburse.
Ryan Hartley with V3 told the council the firm believes prior investigations provide a sufficient data set and that the likely remediation scenario would be "early action" removal of tanks and associated soils. "Our goal would be to have this all cleaned up with in what's called early action," Hartley said, describing steps: remove tanks, take confirmation samples, and turn in reimbursement paperwork to the state.
Staff said the city plans to front costs with TIF funds and seek reimbursement through the state's Leaking Underground Storage Tank (LUST) program. Ben told the council the city estimates the net cost will likely be closer to $300,000, and staff recommended a not-to-exceed authorization of $365,000 to account for contingencies; the TIF balance was reported at about $700,000.
The city has not yet taken ownership of the parcel; Ben said legal action is underway to secure a deed in lieu of foreclosure before remediation work begins. V3 noted the primary risk would be if contamination has migrated offsite; if that occurs, state contingencies exist for additional reimbursement. Investigations indicated tanks' last known active use was around 1975 and that records do not show an official abandonment.
City staff said the plan includes addressing a retaining wall that supports neighboring property above the site; the wall will be part of the packaged remediation effort to stabilize the parcel for future reuse. Staff also said the site may ultimately become a parking lot once cleaned, though future reuse and marketability remain undecided.
Council and staff discussed timing; staff said work will begin after deed transfer and state coordination so reimbursements can be sought. V3 and city staff will return with any required contract approvals and further budget specifics.

