Loading...
HRA Agenda 02-21-1989 SpecialAGENDA SPECIAL MEETING MD?MCRLLO HOUSING AND REDEVELORIENT AOTHORM Tuesday, February 21, 1989 - 7:00 p.m. City Ball Members: Chairperson Al Larson, Lowell Schrupp, Ben Smith, Everette Ellison, Tom St. Hilaire, 011ie Eoropchak, BRA Director City Staff: Rick Wolfsteller, Jeff O'Neill 1. Call to order. 2. Consideration of reviewing and awarding bids on demolition of Stelton'a Laundromat and Jones Manufacturing building. 3. Consideration of proposal by west Prairie Partners for tax increment financing. 4. Adjournment. I BRA Agenda - 2/21/89 2. Consideration of reviewing and awardsnq bids on demolition of Stelton's Laundromat and Jones Manufacturing building. (R.W.) A. REFERENCE AND BACKGROUND: Nine bide were received for the demolition of the Jones and Stelton buildings on February 10, at 10:00 a.m., and ranged in price from $5,200 by Schluender Construction of Monticello to a high of $18,300 by Schreder Excavating of Sauk Rapids, Minnesota. As part of the bid requirements, the City had requested a bid security consisting of a bid bond, certified check, or cash equivalent in the amount of 5 percent of their bid. The apparent low bidder, Schluender Construction for $5,200, submitted a personal check as their bid security, which does not meet specifications as outlined. The second low bidder, Veit Construction of Rogers, did provide a 5 percent bid bond, and their bid totaled $6,969.13. Although the City or the BRA can waive certain irregularities in the bidding, it is recommended from the City staff and also the City Attorney that since a majority of the bidders were aware that Schluender only submitted a personal check, we may be establishing quite a precedent if we accept this as the low bid when he did not follow specifications. As a result, it is staff's opinion that the HRA should consider the second low bidder, Veit Construction, in the amount of $6,969.13. B. ALTERNATIVE ACTIONS: 1. Award the bid to the low bidder, Schluender Construction, for $5,200. 2. Award the bid to the second low bidder, Veit Construction, for $6,969.13. 3. Throw out all the bids and start over. C. STAFF RECOMMENDATION: Although the staff to concerned about spending an extra $1,700 when it may not be necessary, we are also concerned about awarding the contract to Schluender when he did not follow the specifications by submitting a personal check. If it becomes common knowledge that a bidder does not have to comply with the specificatione, it could set precedence in the future for similar occcurrences. As a result, the staff would feel more comfortable in awarding the bid to Veit Construction. D. SUPPORTING DATA: Bid tabulation. BID TABULATION DEMOLITION SPECIFICATIONS JONES AND STELTON BUILDINGS V FEBRUARY 10, 1989 - 10:00 A.M. Name Bid Security Bid Amount Veit Construction 58 Bid Bond S 6,969.13 1400 Veit Place Rogers, MN 55374 Carlson Construction 58 Money Order $10,750.00 Route 5, Box 24-C Buffalo, MN 55313 Kennedy Excavating 58 Certified Check $ 8,500.00 East Highway 12 Benson, MN 56215 Schluender Construction• 58 Personal Check $ 5,200.00 Route 4, Box 303 Monticello, MN 55362 Schreder Excavating 5% Money Order $18,300.00 8770 Town Hall Road NE ' Sauk Rapids, MN 56379 b Fell Trucking 6 Exc. 5% Bid Bond $13,700.00 Route 4, Box 216 Waseca, MN 56093 Spindler Construction 58 Bid Bond $ 81991.00 Route 4, Box 118 Austin, MN 55912 J e D Enterprises 5% Bid Bond $ 9,780.00 5095 Lavaque Road k Duluth, MN 55803 S 6 L Excavating 56 Bid Bond $12,000.00 800 South Highway 10 St. Cloud, MN 56301 •NOTE: Specifications called for a 5% bid socurity consisting of cash, money order, certified check, or bid bond. Personal check doen not meet requirements. HRA Agenda - 2/21/89 3. Consideration of proposal by West Prairie Partnere for tax increment financing. (R.W.) A. REFERENCE AND BACKGROUND: Mayor Ren )taus, along with Chairperson Al Larson, have been approached by members of the West Prairie Partners requesting the HRA meet with the developers to review the possibility of using tax increment financing as an incentive tool to help clean up a blighted area consisting of the Reed property and the Gills Auto property along Highway 75. As you are aware, the West Prairie Partnership owns the former Temple Baptist Church property, and they are looking at alternatives for developing this property and the adjacent Gills Auto and Dan Reed parcels. It is their opinion that possibly the HRA may have to get involved in same sort of tax increment financing incentive if this project is to proceed on a feasible basis. Although a specific proposal has not been presented, I believe the HRA is certainly willing to meet with the developers to hear their concerns and ideas. After discussion on the item, the HRA may or may not be ready to make a recommendation to the City Planning Commission and the City Council regarding their proposals. Their mein reasons for meeting with the HRA at a special meeting is to receive your input prior to the next Planning Commission meeting in March, as it may have a bearing on their request for rezoning some or all of the property for multiple family e use. I think ideally the developers, along with myself, would like to see the property develop into a townhouse nature) but this may not be economically feasible for West Prairie Partners or any other developer. I believe the HRA should explore other options which may come up at this meeting.