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.