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050817 EDA Meeting PacketEDA MEETING City Hall, 4401 Xylon Avenue North Monday, May 8, 2017 Commences upon adjournment of the City Council Meeting President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Eric Lammle Commissioner Jonathan London Call to order - EDA Meeting of May 8, 2017 2. Roll call 3. Approval of Minutes: • March 13, 2017 • May 20, 2017 4. Resolution approving contract with Nitti Rolloff Services, Inc. for demolition of site improvements, utility work, tree removal, and site grading of 3751 Louisiana Avenue North (improvement project no. 993) 5. Adjournment City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 EDA Minutes March 13, 2017 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 9:08 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Jonathan London, Commissioner Staff Present: Kirk McDonald, City Manager Aaron Chirpich, Community Development Specialist Tim Fournier, Police Chief Valerie Leone, City Clerk Chris Long, City Engineer Jeff Sargent, Director of Community Development Bernie Weber, Acting Director of Public Works Stacy Woods, Assistant City Attorney APPROVAL OF Motion was made by Commissioner Hoffe, seconded by Commissioner Elder, to MINUTES approve the minutes of February 27, 2017. All present voted in favor. Motion Item 3 carried. BOISCLAIR LOAN President Hemken introduced for discussion EDA Item 4, Resolution approving Item 4 the Hennepin County Housing and Redevelopment Authority's loan to the Boisclair Corporation as a 2016 Affordable Housing Incentive Fund program loan recipient for property at 8007 Bass Lake Road. Mr. Jeff Sargent, director of community development, explained Boisclair Corporation has received a loan from Hennepin County Housing and Redevelopment Authority and the local jurisdiction must approve the owner of the property as the loan recipient. The Park Acres development at 8007 Bass Lake Road has been governed by a project -based Section 8 Housing Assistance Payment contract since its inception in 1978. It also received low income housing tax credits for a 15 -year period. The owner is in the process of re -syndicating the low income housing tax credits for an additional 15 -year period. Park Acres is deemed a Preservation priority and received some funding for building improvements. Additional funding was necessary to complete the required improvements, and Hennepin County Housing and Redevelopment Authority has authorized a preliminary loan of up to $400,000. He stated renovations greater than $5,000 per unit will be made to the complex. EDA Meeting Page 1 March 13, 2017 Ms. Lori Boisclair was recognized. She stated the property includes six buildings with apartments and townhomes totaling 41 units. She stated they were built in 1978 and 1979 and since 1990 there was only one substantial rehab project. Commissioner London noted there were 67 police calls to the property in the last 12 months. Ms. Boisclair indicated she receives monthly reports and believes the figure mentioned by Mr. London is inaccurate. Chief Fournier pointed out the number includes medical and alarm calls. He noted calls on crime -related instances are much lower. Ms. Boisclair commented that the property will realize $4.8 million in improvements. She noted there is a three-year wait list for new occupants and there is a low turnover rate. She noted the corporations perseverance with the competitive loan process as they applied three consecutive years before being successful. The EDA thanked Ms. Boisclair for undertaking the improvements. RESOLUTION 2017-03 Commissioner Lammle introduced the following resolution and moved its Item 4 adoption "RESOLUTION APPROVING THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY'S LOAN TO THE BOISCLAIR CORPORATION AS A 2016 AFFORDABLE HOUSING INCENTIVE FUND PROGRAM LOAN RECIPIENT FOR PROPERTY AT 8007 BASS LAKE ROAD". The motion for the adoption of the foregoing resolution was seconded by Commissioner Elder, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle; and the following voted against the same: London; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 993 President Hemken introduced for discussion EDA Item 5, Resolution authorizing Item 5 the acquisition of 3751 Louisiana Avenue North by the city and Economic Development Authority through redemption as a junior creditor (improvement project no. 993). Mr. Aaron Chirpich, community development specialist, stated the title to the property would be retained by the EDA if the city succeeds in acquiring the property. RESOLUTION 2017-04 Commissioner Elder introduced the following resolution and moved its adoption Item 5 "RESOLUTION AUTHORIZING THE ACQUISITION OF 3751 LOUISIANA AVENUE NORTH BY THE CITY AND ECONOMIC DEVELOPMENT AUTHORITY THROUGH REDEMPTION AS A JUNIOR CREDITOR (IMPROVEMENT PROJECT NO. 993)". 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, Hoffe, Lammle, London; and the following voted against the same: None, Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adoptedsigned by the president which was attested to by the executive director. EDA Meeting Page 2 March 13, 2017 ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner Elder, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:20 p.m. Respectfully submitted, lam644rte. Valerie Leone, City Clerk EDA Meeting Page 3 March 13, 2017 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 EDA Minutes March 20, 2017 Special Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 6:00 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Jonathan London, Commissioner Staff Present: Kirk McDonald, City Manager Rich Johnson, HR/Admin Services Director Valerie Leone, City Clerk Chris Long, City Engineer Susan Rader, Director of Parks and Recreation Jeff Sargent, Director of Community Development Stacy Woods, Assistant City Attorney Also Present: Stacie Kvilvang, Ehlers ALATUS PURCHASE President Hemken introduced for discussion EDA Item 3, Resolution authorizing & DEVELOPMENT the execution of a purchase and development agreement with Alatus New Hope, AGREEMENT LLC (project no. 964). Item 3 Mr. Jeff Sargent, director of community development, thanked the EDA for holding a special meeting to consider approval of a loan for the cost of a Variable Refrigerant Flow (VRF) HVAC system as part of the development agreement for Alatus for the project at 8400 Bass Lake Road. He stated at the February 27 EDA Meeting the majority of the EDA supported the concept subject to the terms of the loan being brought back to the EDA for approval. He asked Stacie Kvilvang of Ehlers to review the terms and conditions. Ms. Kvilvang stated the development agreement that was agreed to at the end of last year has not yet been signed so the loan will be incorporated into the agreement as section 3.11. She stated the loan is up to $344,000 for five years at 4% interest. She noted 4% is reasonable as the EDA is earning less than 1% on its funds in the bank. Ms. Kvilvang also pointed out the necessity of storm water pond improvements located on the city's golf course (rip rap along the pond's edge) that will be undertaken by Alatus as part of their project but the city will be required to reimburse them approximately $70,000. She stated this will be added to the development agreement as Section 4.3(h). EDA Meeting Page 1 March 20, 2017 She also stated Section 4.3(d) of the agreement was updated to address other golf course items: trash enclosure on the golf course property will no longer need to be relocated, and Alatus will construct the joint entrance and some minor modifications to the golf course's parking lot. Ms. Kvilvang stated the resolution before the EDA approves the updated purchase and development agreement, authorizes the TIF note and allows the EDA to enter into a loan agreement. President Hemken inquired of the terms of the TIF note. Ms. Kvilvang stated it is still 23 years and the principal note and term remains unchanged. Commissioner London inquired whether the value of the building will be increased by $700,000 for the alternate HVAC system. Ms. Kvilvang stated the valuation will likely not be increased based on the HVAC system. She noted they will have a marketable advantage and the energy savings will be passed on to the tenants. Commissioner London asked whether there are any federal tax incentives available. Ms. Kvilvang stated she is not aware of any but there may be an Xcel Energy rebate. Commissioner London inquired of the return amounts to the developer. Ms. Kvilvang stated the cash on cash return is 10%. She stated investors are putting 30% cash ($14 million) into the $43 million project, the annual return is the cash on cash, and the industry standard is a minimum of 10%. She noted Commissioner London was referring to a cash on cost return and in the metro area investors typically want that figure to be between 6.5 and 7%. EDA RESOLUTION Commissioner Elder introduced the following resolution and moved its adoption 2017-17 "RESOLUTION AUTHORIZING THE EXECUTION OF A PURCHASE AND Item 4 DEVELOPMENT AGREEMENT WITH ALATUS NEW HOPE, LLC". The motion for the adoption of the foregoing resolution was seconded by Commissioner Lammle, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle; and the following voted against the same: London; Abstained: None; Absent: None; 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 London, seconded by Commissioner Elder, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 6:16 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting Page 2 March 20, 2017 Request for Action May 8, 2017 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Aaron Chirpich, CD Specialist Agenda Section EDA Item Number 4 Agenda Title Resolution approving contract with Nitti Rolloff Services, Inc. for demolition of site improvements, utility work, tree removal, and site grading of 3751 Louisiana Avenue North (improvement project no. 993). Requested Action Staff requests approval of a resolution awarding a contract for the demolition of all site improvements, utility work, tree removal and site grading for the property located at 3751 Louisiana Avenue North, to the low and responsible bidder, Nith Rolloff Services, Inc. in the amount of $21,457. Policy/Past Practice When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to present contracts to the EDA for consideration. Background The EDA has recently acquired the single-family home located at 3751 Louisiana Avenue North as part of the Scattered Site Housing Program. The EDA has directed staff to take the necessary steps in preparing the home for demolition in order to facilitate the creation of a new buildable lot. This contract award includes the demolition of all site improvements, replacement of the water service valve, lining of the sanitary sewer service, tree removal, and limited site grading. Requests for quotes were sent to four contractors. Staff received two bids and the results are as follows: • Leaden Excavating, Inc. $23,850 • Nitti Rolloff Services, Inc. $21,457 Funding EDA funds will be used to pay for this project on the front end. Following the sale of the vacant lot, the EDA will be reimbursed by Hennepin County with Community Development Block Grant funds. Experience with Recommended Contractor The EDA has worked with the recommended contractor on three previous scattered site housing projects. Nitti Rolloff Services, Inc. was the selected contractor for demolition and site grading work at 912162nd Avenue North, 4415 Nevada Avenue North and 5400 Yukon Avenue North. Staff had a good experience working the contractor and has no concerns with hiring them for this project. Attachments • Resolution • Bids Received • RFQ and Bid Specifications I:\RFA\COMM DEV\Development\Q & R Award Demolition Contract for 3751 Louisiana Avenue Improvement Project 993 58-17.docx EDA RESOLUTION NO. 17 - RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF SERVICES, INC. FOR DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE REMOVAL AND SITE GRADING OF 3751 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT NO. 993) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the Economic Development Authority in and for the City of New Hope ("EDA") acquired that certain real property located at 3751 Louisiana Avenue North, New Hope, MN (the "Property") with the intentions of redeveloping the Property; and WHEREAS, City staff intends to redevelop the Property in accordance with the City's scattered site housing program and policy and return the Property to the tax rolls for the benefit of all taxing jurisdictions; and WHEREAS, City staff is exercising due diligence to correct the Property's blighted condition by performing an environmental cleanup of the Property to be followed by the demolition of all buildings on the Property, utility work, tree removal and site grading of the Property; and WHEREAS, Nitti Rolloff Services, Inc submitted a proposal for demolition of site improvements, utility work, tree removal and site grading ("Work") that meets all of the Project Specifications and is the low bid; and WHEREAS, it is in the best interests of the EDA to enter into a contract with Nitti Rolloff Services, Inc. for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Nitti Rolloff Services, Inc. as the duly qualified contractor to perform the Work. 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 selection of Nitti Rolloff Services, Inc. as the Contractor to perform the demolition of all building and site improvements located at the Property, utility Attest: work, tree removal and site grading of the Property pursuant to the Project Specifications is approved, it being in the best interest of the EDA and City to prepare the Property for redevelopment in accordance with the City's scattered site housing program and policy. 3. That the payment of $21,457 to Nitti Rolloff Services, Inc. to perform the Work is hereby approved. 4. 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 complete the demolition, utility work, tree removal, well sealing and the re -grading of the Property in accordance with the contract to be prepared by the City Attorney. Dated the 8th day of May 2017. Kirk McDonald, Executive Director Kathi Hemken, President Property Owner: City of New Hope Property Address: 3751 Louisiana Avenue North P.I.D. (17-118-21-34-0051) For a price of $ o? 1i `f S7 eyq, the contractor named below proposes to fully complete the work in accordance with the attached specifications for demolition, site grading, tree removal and utility work at 3751 Louisiana Avenue North, no later than June 9th, 2017. Name of License Contractor IQ3.s 1 ,-k41 �oIl of[ C 10" Q!t1,c;es r, N, e-, 3 Ia; > MVI SST 3 E-mail Address: da,,, n • 14, co"WI.c P ,,,-t s. ca,., v Title: l/' 6 J 1'e J' Date:—�//7 = n� Property Owner. City of New Hope Property Address: 3751 Louisiana Avenue North P.I.D. (17-118-21-34-0051) For a price of $_434_�b_, the contractor named below proposes to fully complete the work in accordance with the attached specifications for demolition, site grading, tree removal and utility work at 3751 Louisiana Avenue North, no later than June 9th, 2017. Name of Contractor: License Number. M ti 2 O G l�4 � Telephone: to 12- 1 9D -- I C '� E-mail Address: Mets aP.FzsCxe liL.(Jv� Contractor Signature: Date:... S� I Title: From: City of New Hope Subject: Request for quotes for demolition, site grading, utility work and tree removal at 3751 Louisiana Avenue North. Overview: The City of New Hope is the owner of the property addressed as 3751 Louisiana Avenue North, (P.I.D. # 17-118-21-34-0051). The City is requesting quotes for demolition of all building and site improvements at this location followed by re -grading of the primary excavation area, tree removal, and installation of utility improvements. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on the back door, code 4401. Please call Aaron Chirpich in the Community Development Department with any questions, 763-531-5114. Proposals must be completed on the enclosed bid form and submitted by 1:00 p.m. on May 2nd, 2017. Proposals may be submitted by U.S. Mail, e-mail or in person; please note the enclosed bid form must be used. City staff will review the submitted proposals and forward them to the City Council. City staff expect the Council to select a demolition contractor at their May 8th meeting. The selected contractor would be required to complete the work in accordance with the attached specifications no later than June 9th 2017. Submit proposals to the following: Attn: Aaron Chirpich City of New Hope Community Development Department 4401 Xylon Ave, North New Hope MN, 55428 achirpich@ci.new-hope.mn.us Property Owner: City of New Hope Property Address: 3751 Louisiana Avenue North P.I.D. (17-118-21-34-0051) For a price of $ . the contractor named below proposes to fully complete the work in accordance with the attached specifications for demolition, site grading, tree removal and utility work at 3751 Louisiana Avenue North, no later than June 9th, 2017. Name of Contractor: License Telephone: E-mail Address: Contractor Signature: Date: A. Scope of Work 1. General a. Contractor shall furnish all labor, materials and equipment, and shall perform all service and work required to remove the buildings, structures and improvements from the site, and post demolition grading of the site, in strict accordance with these specifications and in accordance with all applicable ordinances and laws pertaining to removal of buildings, structures, grading and erosion control. Following demolition, contractor is to install silt fencing around the entire perimeter of the site b. Contractor shall thoroughly review these specifications and examine the site to evaluate existing and proposed conditions prior to making a quote. Failure to do so shall in no way relieve contractor from performing the work as required or be grounds for a claim for extra payment. 2. Demolition and Disposal of Buildings and Site Improvements a. All buildings and site improvements on the site shall be removed and properly disposed. Demolition to include, but not limited to stairs, ramps, floor slabs, equipment bases, driveways, aprons, foundation walls and footings, and other structure components, appurtenances and contents associated with each structure, unless noted otherwise. Include removal of all out -buildings and landscaping timbers. b. All demolition materials, substrates, debris, waste, or other materials shall be collected, stored, handled, managed, and disposed in accordance with currently accepted practices at an approved, licensed, or permitted facility in accordance with applicable federal, state, and local ordinances, rules, and regulations. 3. Backfill, Compaction and Grading a. No demolition material shall be left in, or placed in any excavation. All excavations unless otherwise noted, shall be back filled with clean imported granular material. Imported material shall be placed in 1 foot lifts and compacted to no less than 95% standard proctor density. Contactor shall provide the City with third party sampling, analysis and reports to demonstrate that 95% compaction has been achieved. b. The finished grade shall be determined by matching the existing average grade of the excavation areas prior to demolition. The final grade shall maintain pre demolition drainage patterns. No imported topsoil is required. c. Upon completion of the finished grade, contractor shall immediately hydroseed all disturbed areas of the site. 4. Tree and Vegetation Removal a. City staff have marked all trees (1) for removal with green paint. The stump shall be pulled from the ground and hauled away. Stump pits shall be back-filled. Contractor is to include removal of the marked tree in the demolition bid 5. Abandonment of Wells a. The city does not know of any wells on the property. Discovery of any wells shall require contractor to halt the demolition work until well sealing can be completed. Contractor is not entitled to additional compensation for any delays resulting from the necessity to halt demolition work for such well sealing, except that the completion deadline shall be extended in proportion to the delay. 6. Utilities a. Contractor shall be responsible for calling Gopher State One Call for the location of any underground utilities prior to commencement of demolition and site grading work. b. The city has ordered the disconnection of electricity (Excel Energy) and natural gas (Centerpoint Energy) services for the property. Contractor shall field verify disconnections prior to demolition. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the pole prior to demolition. c. Contractor is to coordinate the shut off of water with Public Works to ensure that the water is off before termination of the water service. Contractor is to remove the water line all the way to the curb stop. Contractor is to install new curb stop and box as Dart of the water disconnection. Document and mark on-site, the location of the service termination. Inspection by the City will be required prior to backfilling of the trench. d. Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer line should be removed to within 3 feet of the property line and the remaining service stub shall be lined with CIPP lining all the way to the main Once lined, cap the end in preparation of connection to the new home. Document and mark on-site, the location of the service termination. Inspection by the City will be required prior to backfilling of the trench. 7. Asbestos, Hazardous Materials and Household Goods a. The City has contracted with Angstrom Analytical for the completion of a demolition survey for the property. All asbestos, hazardous materials and household goods identified by Angstrom, will be removed from the property by a licensed abatement contractor hired by the city. Discovery of any additional apparent asbestos containing or other hazardous materials by the demolition contractor during demolition shall require contractor to halt the demolition work until testing and abatement (if applicable) is completed at the City's expense. Contractor is not entitled to additional compensation for any delays resulting from the necessity to halt demolition work for such testing and abatement, except that the completion deadline shall be extended to accommodate the delay. Do not include asbestos, hazardous materials and household goods removal in your bid 8. Permits and Inspections a. Contractor will complete and submit the City of New Hope demolition permit application. Permit fees for the demolition permit will be waived, however the State surcharge will still be collected as the City can not waive that portion. Contractor shall have the work inspected prior to backfilling the primary excavation. The private water and sewer service terminations will also be inspected by City Public Works staff. A separate water and sewer disconnection permit must be secured from the City. The same fees will be waived for this permit. b. If any permits from other governmental agencies are required, contractor shall, at contractor's own expense, secure such permits, pay any fees and complete any inspections required by same, and provide a copy of the permit to the City. c. Contractor shall submit "Notification of Intent to Perform a Demolition" Form to the MPCA. 9. Miscellaneous Provisions, and Notices a. Contractor shall erect and maintain all necessary barricades and warnings to adequately safeguard workers, adjacent property, and the public. b. The demolition and clearing of the site shall be carried out in such a manner to preclude damage to adjacent property or public right-of-way. c. Contractor is to provide dust control during demolition by watering the home. Water is available at no cost from the City by accessing adjacent hydrants. Please notify New Hope Public Works one week in advance to coordinate hydrant connection. d. Submission of a proposal will constitute an incontrovertible representation by contractor that contractor has complied with every requirement of these specifications and attachments thereto; that without exception the proposal is premised upon performing and furnishing the work including but not limited to the specific means, methods, techniques, sequences, procedures or precautions expressly required by these specifications and attachments thereto; that contractor has received from City satisfactory written resolution of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and attachments thereto are generally sufficient to indicate and convey understanding of the terms and conditions for performing and furnishing the work.