022420 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, February 24, 2020
President Kathi Hemken
Commissioner John Elder
Commissioner Cedrick Frazier
Commissioner Andy Hoffe
Commissioner Jonathan London
1. Call to order – EDA Meeting of February 24, 2020
2. Roll call
3. Approval of Minutes:
February 10, 2020
4. Resolution approving extension of completion date for remodeling contract with Day
Construction, LLC for 3924 Utah Avenue North (Improvement Project No. 1020)
5. Adjournment
EDA Meeting
Page 1 February 10, 2020
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes February 10, 2020
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 8:04 p.m.
ROLL CALL Present:
Absent:
Kathi Hemken, President
John Elder, Commissioner
Cedrick Frazier, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Susan Rader, Director of Parks and Recreation
Jeff Sargent, Director of Community Development
Bernie Weber, Director of Public Works
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Hoffe, seconded by Commissioner Frazier, to
approve the minutes of December 9, 2019. All present voted in favor. Motion
carried.
6027 WEST
BROADWAY
(IMPROVEMENT
PROJECT NO. 1038)
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
contract with Nitti Rolloff Services Inc. for hazardous material abatement, tree
removal, demolition of site improvements, well sealing, sewer lining, and water
service valve replacement at 6027 West Broadway (Improvement Project No.
1038).
Mr. Jeff Alger, community development specialist, explained in January of 2020
the EDA acquired the single‐family home located at 6067 West Broadway as part
of the city’s scattered site housing program. Bids were solicited to prepare the lot
for redevelopment. The low bid was submitted by Nitti Rolloff Services, Inc. for
$22,697. The work includes hazardous material abatement, tree removal,
demolition of the building and site improvements, well sealing, sewer lining, and
water service valve replacement. The city has used the services of Nitti Rolloff in
the past with good experiences. The EDA budget would fund the contract.
He stated the police and fire departments have conducted training exercises in the
structure.
EDA Meeting
Page 2 February 10, 2020
RESOLUTION 2020‐01
Item 4
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF
SERVICES INC. FOR HAZARDOUS MATERIAL ABATEMENT, TREE
REMOVAL, DEMOLITION OF SITE IMPROVEMENTS, WELL SEALING,
SEWER LINING, AND WATER SERVICE VALVE REPLACEMENT AT 6027
WEST BROADWAY (IMPROVEMENT PROJECT NO. 1038).” The motion for
the adoption of the foregoing resolution was seconded by Commissioner Frazier,
and upon vote being taken thereon, the following voted in favor thereof: Hemken,
Elder, Frazier, Hoffe; and the following voted against the same: None; Abstained:
None; Absent: London; whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by the executive director.
4215 LOUISIANA
AVENUE NORTH
(IMPROVEMENT
PROJECT NO. 1047)
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution approving
Purchase Agreement for the acquisition of 4215 Louisiana Avenue North
(Improvement Project No. 1047).
Mr. Jeff Alger, community development specialist stated the city has the
opportunity to purchase the distressed property at 4215 Louisiana Avenue North
for $125,000. The property has been vacant for many years and had an original
asking price of $400,000. The property is zoned Community Business. It was
originally constructed in 1961 as a single‐family home and later converted to office
space. Staff recommends the following actions for the site: demolition of the
structure, rezoning of the parcel, and construction of a new single‐family home
with a value of at least $350,000. It is anticipated that expenses associated with the
project would be approximately $181,300, revenue from the sale of the lot is
estimated at $62,000, resulting in a net loss of $119,300. He noted it is unlikely that
the property would be redeveloped without the city’s involvement. Funding is
available in the EDA budget.
RESOLUTION 2020‐02
Item 5
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE
ACQUISITION OF 4215 LOUISIANA AVENUE NORTH (IMPROVEMENT
PROJECT NO. 1047).” The motion for the adoption of the foregoing resolution
was seconded by Commissioner Hoffe, and upon vote being taken thereon, the
following voted in favor thereof: Hemken, Elder, Frazier, Hoffe; and the following
voted against the same: None; Abstained: None; Absent: London; whereupon the
resolution was declared duly passed and adopted, signed by the president which
was attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Frazier, seconded by Commissioner Elder, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:20 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\COMM DEV\2020\EDA\Scattered Site Housing\Q ‐ 3924 Utah Ave N Contract Extension 02‐24‐20.docx
Request for Action
February 24, 2020
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Jeff Alger, Community Development Specialist;
Jeff Sargent, Director of Community Development
Agenda Title
Resolution approving extension of completion date for remodeling contract with Day Construction, LLC
for 3924 Utah Avenue North (Improvement Project No. 1020)
Requested Action
Staff requests the EDA approve a resolution extending the deadline for completion of the remodel and
rehabilitation of the single‐family home at 3924 Utah Avenue North.
Policy/Past Practice
In the past, the city has renegotiated the terms of development contracts when circumstances call for
amendments that are necessary and/or beneficial to both parties.
Background
The Economic Development Authority (EDA) awarded a contract for the remodel and rehabilitation of 3924
Utah Avenue North to Day Construction in the amount of $173,671 in August of 2019. It included the base
bid of $158,794 and alternate #1 (remodel northeast second‐floor bedroom to create a master‐suite) at a cost of
$14,877. The contractor has requested an extension to the completion deadline required by the contract. The
contract calls for all work to be completed by February 19, 2020, and allows the city to pursue liquidated
damages of $100 per calendar day if the contract remains uncompleted after the deadline.
The project is nearing completion; however, the contractor is requesting a one‐month extension to the
completion deadline. If the one‐month extension were to be approved, the contract would require completion
of the project by March 20, 2020. During the rehabilitation process, significant roof damage was discovered,
resulting in a change order for its replacement. Additionally, city staff was in contact with an interested buyer
who had expressed interest in several upgrades to the property. The interested buyer elected not to move
forward with submitting an offer at the time, however, the negotiations delayed the design and finish
selection process for some items by a few weeks. The contractor also cited longer than anticipated lead times
on several products and difficulties scheduling subcontractors during the holiday season for the delay. For
these reasons, the contractor is requesting that liquidated damages not be applied and that the contract be
extended. In addition, the contractor has requested until May 15, 2020, to complete outdoor installations/
finishes that are weather dependent. This includes installation of the driveway and foundation plantings and
exterior painting. Final payment would not be issued until these items have been completed.
Recommendation
Staff recommends approval of a resolution extending the deadline for the rehabilitation contract with Day
Construction for the remodel and rehabilitation of the property located at 3924 Utah Avenue North to March
20, 2020. In addition, the deadline to complete outdoor installations that are weather dependent would be
extended through May 15, 2020.
Agenda Section
EDA
Item Number
4
Request for Action, Page 2
Attachments
Resolution
Extension request from Day Construction (February 17, 2020)
First amendment to remodeling contract
Contract
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 20-___
APPROVING EXTENSION OF COMPLETION DATE FOR
REMODELING CONTRACT WITH DAY CONSTRUCTION, LLC
FOR 3924 UTAH AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1020)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope (“EDA”) as follows:
WHEREAS, the EDA entered into a Remodeling Contract with Day Construction, LLC
(“Day Construction”) for the Rehabilitation of the property located at 3924 Utah Avenue North,
New Hope, MN (“Contract”) legally described as: “Lot 23, Block 6, Hopewood Hills, Hennepin
County, Minnesota” (“Property”) dated August 26, 2019; and
WHEREAS, paragraph 4 of the Contract states that Day Construction shall complete
performance under the Contract by February 19, 2020 which is the Completion Date; and
WHEREAS, Day Construction has requested two separate extensions to the Completion
Date in the Contract, depending on whether the Work is “weather dependent”: (1) extension
until March 20, 2020 for the completion of the Work that is located inside and is not weather
dependent; and (2) extension until May 15, 2020 for the completion of the Work that is “weather
dependent” such as exterior painting, driveway replacement and landscape plantings; and
WHEREAS, Day Construction has listed several reasons that delayed the timely
completion of the Work including: greater than expected time off around the holidays, delays
relating to discussions with potential buyer regarding selection of finishes, adding roof
replacement to Work items, and unexpectedly longer lead times on delivery of several products;
and
WHEREAS, it is in the best interest of the EDA to grant an extension to Day
Construction in order for Day Construction to complete the remodeling and rehabilitation of the
single family home on the Property in accordance with the City’s scattered site housing program
and policy; and
WHEREAS, the City staff is hereby seeking approval from the EDA of the amendment
to the Contract.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. That the amendment of the Contract between the EDA and Day Construction,
Inc., as set forth in the attached Exhibit A, is approved, it being in the best
interest of the EDA to assist Day Construction, Inc. in the successful remodeling
and rehabilitation of a single-family home on the Property in accordance with the
City’s scattered site housing program and polic y.
3. The President, Executive Director and New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions
are necessary or desirable, to amend the Contract.
Dated the 24th day of February, 2020.
____________________________________
Kathi Hemken, President
Attest: __________________________
Kirk McDonald, Executive Director
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11432 3924 Utah Ave N\Resolution Approving Extension regarding 3924 Utah Ave
N.docx
1
Jeff Alger
From:Matthew Day <matthew@day-construction.com>
Sent:Monday, February 17, 2020 6:52 AM
To:Jeff Alger; Stacy A. Woods
Subject:3924 Utah Extension
Good morning-
This email serves to formally request an extension for the project at 3924 Utah Ave N.
The reasons for the extension are:
-Greater than expected time off around holidays
-Potential buyer created delays in completing selections, and subsequently created scheduling delays as timeline
for selections was unknown and critical path work tasks couldn’t be scheduled, putting the project at the back of
the line for several vendors.
-Added roof replacement to project
-Unexpectedly long lead times on several products (tile, siding special order, cabinets)
We request an extension to March 20 for work that is not weather dependent, and an extension until May 15 for
weather dependent items including exterior paint, driveway replacement, and landscape plantings.
Thanks in advance for your consideration,
Matthew Day | Day Construction
Office: 651-565-7877 | Cell: 612-802-4907
www.Day-Construction.com
FIRST AMENDMENT TO REMODELING CONTRACT
THIS FIRST AMENDMENT TO REMODELING CONTRACT (this "Amendment") is dated
effective as of February 24, 2020, by and between The Economic Development Authority, in and for the City
of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota
("EDA") and Day Construction, LLC ("Contractor").
RECITALS
A. EDA and Contractor are parties to that certain Remodeling Contract for the Rehabilitation of 3924
Utah Avenue North , New Hope, Minnesota dated August 26, 2019 ("Contract"), for the
rehabilitation of that certain real property legally described in the Contract.
B. EDA and Contractor now wish to amend the Contract to extend the Completion Date.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth below, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Completion Date. The Completion Date as defined in Paragraph 4 of the Contract shall be extended
to March 20, 2020 for the interior Work and May 15, 2020 for the “weather dependent ” items
including exterior painting, driveway replacement and landscape plantings . All the remaining
terms shall remain the same.
2. Ratification. Except as expressly amended hereby, the Contract is fully ratified and confirmed and
continues in full force and effect.
3. Counterparts. This Amendment may be executed in any number of counterparts, which, when taken
together, shall constitute a complete and original instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and
year first above written.
The Economic Development Authority,
in and for the City of New Hope, a
public body corporate and politic created pursuant to
the laws of the State of Minnesota
________________________________
By: Kirk McDonald
Its: Executive Director
Day Construction, LLC
_________________________________
By: Matthew Day
Its: Chief Manager
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11432 3924 Utah Ave N\First Amendment to Remodeling Contract.docx