HomeMy WebLinkAboutContract 1690September 5, 2002
Mr. Randy Schurnacher
Community. Development Department
City of Columbia Heights
590 40~h Avenue N.E.
Columbia Heights, MN 55421
Re:
Contract for Consulting Services
Industrial Area Redevelopment Plan
Dear Mr. Schumacher:
This letter outlines a Scope of Services, Fee Schedule and other elements which together
constitute an agreement between the City of Columbia Heights, hereinafter referred to as the
CITY, and Hoisington Koegler Group Inc., hereinafter referred to as the CONSULTANT for
professional planning services for the Industrial Area Redevelopment Plan, hereinafter referred to
as the PROJECT.
United Properties Role
The City of Columbia Heights has selected United Properties to assist in the development plan so
as to assure that market issues are accurately represented. United will be involved in each task
outlined in the redevelopment plan. Key areas of participation will be during the development of
the Market Study and addressing all financing issues. United shall be instrumental in
recommending direction throughout the planning process, particularly at the checkpoint intervals.
As information is collected, it shall be forwarded to United to assist them in providing market
direction for a buildable and successful plan. It is anticipated that upon plan completion, United
Properties will work with the City to implement the redevelopment plan based on the
recommended outcomes.
The CITY and CONSULTANT agree as set forth below:
PURPOSE
The purpose of the Industrial Area Redevelopment Plan is to prepare a feasible redevelopment
plan that will include a building program, general design plan, development phasing and required
public financial participation that is based on current and expected future market demand.
A. BASIC SERVICES - WORK PLAN
1. Task 1 - Understand the Existing Environment
Redevelopment modifies an existing built environment. The characteristics of the existing
environment determine the issues and opportunities for redevelopment. The outcome of Task 1
will be a map and supporting information that describes the existing physical environment and the
potential issues affecting redevelopment. To create a clear understanding, HKGi will:
City of Columbia Heights
Industrial Area Redevelopment Plan
September 5, 2002
Pa, ge 2
1.1 Collect, review and evaluate previous plans, land controls and other municipal
information related to the project area. Establish Geographic Information System (GIS)
database of all physical data (from City and other public sources). Collected information
will include but not be limited to:
· Public and private objectives
· Aerial photos
· Zoning ordinance
· Comprehensive Plan
· Property inspection records
· Available boundary and topographic surveys
· Street and public and private utility plans
· Past land use and traffic studies
· Floodplain/wetlands/retention pond data
· Easements and covenants
1.2 Review land use and development plans for adjacent areas.
1.3 Use existing data to build a Geographic Information System (GIS) database for the
redevelopment area and adjacent properties. At a minimum, parcel level data will
include:
· Property valuation/real estate taxes
· Parcel size
· Building size
· Contours and soils
· Age of structure
· Right-of-way
· Current use
· Property owner
· Comprehensive Plan designation
· Zoning classification
· Building Inspections records
1.4 Identify utility lines and easements within the project area.
1.5 Determine and collect additional data needed to update and supplement existing
information.
1.6 Prepare "feature maps" illustrating the characteristics of the project area.
1.7 Prepare photo inventory of parcels in project area.
City of Cohmbia Heights
Industrial Area Redevelopment Plan
September 5, 2002
Page 3
1.8 Conduct analysis to determine parcel qualification as "improved" under the Tax
Increment Financing Act
1.9 Complete windshield survey and preliminary assessment of structure qualification as
"substandard" under the Tax Increment Financing Act.
1.10 Review existing information collected by City Staff relating to potential environmental
issues that must be addressed in redevelopment of parcels in the projects area.
1.11 Determine need and undertake Phase 1 Environmental Site Assessment on the project
area. A Phase 1 ESA will involve:
· Site reconnaissance for indications of environmental concerns and the
presence of monitoring wells.
Review of a database report of environmental sites within the redevelopment
area and within ASTM specified radii of the boundary of the area to
determine potential impacts to soil and groundwater from on-site and off-site
SOUrCes.
Review of available documentation regarding known environmental
releases/cleanups within the development area.
Review of historic aerial photographs, city directory listings and Sanborn
Fire Insurance maps, if available, to interpret past site uses.
· Interview of local authorities regarding historic land uses in the area.
· Building walk-throughs if access is arranged by the city.
· Preparation of a summary report with recommendations for Phase II ESA
work, including soil and groundwater sampling.
1.12 Determine the preliminary ability to use Tax Increment Financing, Tax Abatement and
other financial redevelopment tools.
1.13 Assemble a broad inventory of qualifying redevelopment grant funds administered by
the Metropolitan Council, the Department of Trade and Economic Development
(DTED), the Minnesota Housing Finance Agency (MI-IFA), and the Minnesota
Pollution Control Agency as well as Federal grant funding sources.
2. Task 2 - Understand the Market
A successful redevelopment plan results in private redevelopment. This requires an
understanding of the market and economic forces that encourage and support private
redevelopment in the project area. The outcome of Task 2 will be a general description of
proposed highest and best market driven project options. The analysis will determine highest
and best market driven:
· Building uses over the next five and ten years.
· Building capacity (square feet or units/density)
· Land prices, lease rates and unit prices.
This task will be conducted at the same time as Task 1.
City of Columbia Heights
Industrial Area Redevelopment Plan
Se£tc'rnber 5, 2002
Page 4
2.1 Determine market demand for industrial and specialized office uses. - (Prepared by
United Properties under separate agreement with the CITY.)
2.2 Determine market demand for housing.
· Analyze growth trends and demographic characteristics of the identified
draw area.
· Analyze housing values and housing appreciation trends in Columbia
Heights and the surrounding area for all housing market segments.
· Calculate demand for for-sale and rental housing products.
· Recommend optimum housing development that would maximize the
potential for the property.
· Assess redevelopment issues and marketing considerations given the site, its
location and adjacent existing development and proposed redevelopment.
· Assess product phasing and redevelopment timeframe.
2.3 Extract relevant information on retail market from 2002 Downtown Columbia Heights
Market Study - (Prepared by United Properties under separate agreement w/th the
CITY.)
3. Task 3 - Checkpoint 1
The planning process will give the City Council, and staff, some key decision points. These
decision points allow the City to (1) become knowledgeable about redevelopment issues,
opportunities and constraints in a timely manner and (2) make adjustments to the scope of work
(if needed) based on the findings in the completed tasks. This approach minimizes the risk of
"surprises" at the end of the planning process.
3.1 Prepare summary of findings from Tasks 1 and 2.
3.2 Present findings in a City Council work session.
3.3 Determine need for adjustments and recommend direction.
4. Task 4 - Determine Redevelopment Plan Options
There is no single "right" development plan for the industrial area. Typically, various
redevelopment options are possible. The options possess different strengths and weaknesses.
The outcome of Task 4 will be development options that are market driven. In creating and
exploring these options, the HKGi team will:
4.1 Identify a list of potential short temi (2003 - 2008) and long-term (2008 - 2013)
development options appropriate for the project area based on current and expected
market demand, and City and developer objectives.
4.2 Prepare two (2) redevelopment plans based upon market demand and City and
developer objectives. The plan options will feature:
Alternative parcel combinations and site layouts.
4.3
4.4
4.5
4.6
4.7
City of Columbia Heights
Industrial Area Redevelopment Plan
September 5, 2002
Page 5
· Varying patterns of development and land use.
· Probable infraslructure needs (Public-road, stormwater, water/sewer and private-
telecommunications, gas, electric)
· Options for renovation of existing structures.
· Options for enhanced transit connections.
· Determine potential amenities such as walks, trails, street and pedestrian lighting,
signs, and landscaping.
· Sequencing of redevelopment projects.
Determine property owners interest in selling - (Prepared by United Properties under
separate agreement with the CITY.)
Identify priorities and implications for acquiring properties in project area.
Determine approximate acquisition, demolition and relocation costs and prepare a
preliminary redevelopment financial analysis for high priority projects.
Review draft concepts with United Properties to receive input on use, density, location
and timing.
Make revisions as needed to the redevelopment options.
5. Task 5 - Determine Feasibility
Financial feasibility has both public and private elements. Redevelopment often requires public
investments to remove physical and economic barriers to redevelopment. The public investments
must seek to create an environment that attracts and sustains private investment in a manner
desired by the City. The outcome of Task 5 will be redevelopment plan options that are feasible
and are most likely to result in private redevelopment.
5.1 Receive preliminary development budget, and cash flow analysis from United Properties
for project options proposed in Task 4.
5.2 Conduct feasibility analysis. This analysis will analyze the financial feasibility of the
redevelopment projects. The purpose of this analysis is to approximate the public and
private financial participation and rcmm of a feasible redevelopment project.
5.3 Identify the public actions needed to facilitate the redevelopment options proposed in
Task 4. These actions will include environmental reviews, government approvals,
condemnation, infrastructure, site assembly and site preparation.
5.4 Compare the financial feasibility of the proposed redevelopment options.
e
Task 6 - Checkpoint 2
6.1 Assess redevelopment options using the City's objectives and market parameters. In
addition, assessment criteria may include public cost, traffic generation, development
phasing, land use compatibility, environmental impacts, fiscal impacts, and
infrastructure needs.
6.2 Apply screening criteria to each of the concepts.
6.3
City of Columbia Heights
Industrial Area Re&vdopment Plan
SeptemberS, 2002
Page6
Present redevelopment options that best meet both public and private objectives in a
City Council work session.
6.4 Select a preferred redevelopment option.
7. Task 7- Prepare Final Redevelopment Plan
I-IKGi will prepare all pertinent text, graphics and tables into a final redevelopment plan. The
plan serves two purposes. First, the plan serves as a tool for encouraging and guiding the
redevelopment of the project area. The plan also records the information and findings generated
through the planning process. The outcome of Task 7 will be a redevelopment plan that is feasible
and meets the public and private objectives.
7.1 Refine the redevelopment plan, building upon the alternate redevelopment scenarios,
and the conslructive comments of the City.
7.2 Prepare general design guidelines for buildings and site amenities. These guidelines
will provide a sufficient level of detail to convey the "vision" and specific enough to
develop an estimate of cost to implement each project in the plan.
7.3 Prepare an implementation strategy documenting the steps required to implement the
recommended redevelopment plan, including key public actions required for
implementation and the preferred sequencing of actions. The implementation strategy
will also identify required government agency approvals.
7.4 Prepare a draft redevelopment plan for review by the City. The draft plan will include
progress reports, diagrams, maps, photographs, text, and summaries of all market
information, along with an executive summary of key study recommendations regarding
both "process" and "product".
7.5 After review and approval of the draft plan, prepare a camera-ready original of the final
plan (paper and digital form) for use by the CITY in printing.
Next Steps
At the conclusion of the planning process, the City will be in a position to enter into a partnership
with a private developer(s) to proceed with implementation. Implementation actions may
include:
Amendment of Comprehensive Plan and zoning ordinance.
· Undertaking additional environmental investigations and analysis for high priority sites.
· Preparation of Development Response Action Plan as basis for remediation actions.
· Create and undertake process for public finance tools.
· Design public improvements, if needed.
· Seek f'mancial assistance f~om non-City sources.
· Initiate steps for the parcel(s) designated for initial redevelopment.
City of ¢ohmbia Heights
Industrial Area Redevelopment Plan
September 5, 2002
Page 7
B. ADDITIONAL SERVICES
The CONSULTANT and the CITY must agree in writing to amend this Contract for
additional services related to the Project and compensation for such services. The following
services have not been requested by the CITY but are available, upon authorization, fi:om the
CONSULTANT.
1. Meetings in addition to those specified in Paragraph A above.
2. Services or Deliverables not specifically identified in Paragraph A above.
C. FEES FOR PROFESSIONAL SERVICES
The CONSULTANT agrees to complete the scope of work contained in Paragraph A in
exchange for professional fee compensation as noted below. The CITY agrees to pay the
CONSULTANT for services rendered as follows:
For the CONSULTANT'S Basic Services described in Paragraph A above, a fee based on
the CONSULTANT'S current hourly rate schedule (see Attachment A) not to exceed
Sixty Five Thousand, Four Hundred Thirty Dollars ($65,430.00), including reimbursable
expenses.
For the CONSULTANT'S Additional Services described in Paragraph B, a fee based on
the CONSULTANT'S current hourly rate schedule plus incidental expenses or a
negotiated fee.
Statements will be submitted to the CITY on a monthly basis as work is completed and
shall be payable within 30 days in accordance with this Agreement.
The CONSULTANT reserves the right to suspend services if the CITY is delinquent in
making payments in accordance with this Agreement.
All original documents, electronic files, and study's generated by this consultant or his
sub-consultants, shall be the sole property of the City of Columbia Heights. The
CONSULTANT shall reserve the right to use information created as part of the project
for internal purposes and for external marketing efforts.
D. CITY'S RESPONSIBILITY
The CITY shall be responsible for the following:
Assembly of background information including, but not limited to paper and/or digital
copies of all former comprehensive plans, aerial photographs, base maps, inventory data,
U.S. Census information, traffic and transportation information and available CAD/GIS
mapping, limited to those that are reasonably available.
2. Mailing lists, printing, postage and the mailing of invitations for public meetings.
3. Arrangements for public meetings.
City of Columbia Hdghts
Industrial Area Redevelopment Plan
September 5, 2002
Page 8
Ee
4. Reproduction of all interim reports for distribution to the CITY Board, City Council and
other city boards and commissions.
5. Printing of the final document.
COMPLETION scm~,DULE
The services of the CONSULTANT will begin upon CITY approval and will, absent of
causes beyond the control of the CONSULTANT, be completed within four (4) months from
notice-to-proceed date.
At the beginning of the project, the CONSULTANT will prepare an overall project schedule
identifying meetings, task completion dates, etc. The CONSULTANT will continually
update the project schedule throughout the course of the work
F. SUB-CONSULTANTS
To complete aspects of the Project as described in Paragraph A, the CONSULTANT shall
make separate agreements with other qualified fn'ms listed in this paragraph. The
CONSULTANT shall coordinate the work of Sub-Consultants as part of the work of the
Project. The CONSULTANT shall not remove the involvement of identified tn'ms or add the
involvement of mentioned firms without written consent from the CITY. The identified
Sub-Consultants for the Project are:
1. STS - Environmental Site Analysis
2. Maxfield Research - Market Analysis
G. NONDISCRIMINATION
The CONSULTANT agrees not to discriminate by reason of age, race, religion, color, sex,
national origin, or handicap unrelated to the duties of a position, of applicants for
employment or employees as to terms of employment, promotion, demotion or transfer,
recruitment, layoff or termination, compensation, selection for training, or participation in
recreational and educational activities.
H. EQUAL OPPORTUNITY
During the performance of this Contract, the CONSULTANT, in compliance with Executive
Order 11246, as amended by Executive Order 11375 and Department of Labor regulations 41
CFR Part 60, shall not discriminate against any employee or applicant for employment
because of race, color, religion, sex or national origin. The CONSULTANT shall take
affirmative action to insure that applicants for employment are employed, and that employees
are treated during employment, without regard to their race, color, religion, sex or national
origin. Such action shall include, but not be limited to, the following: employment,
upgrading, demotion, transfer; recruitment or recruitment advertising; layoff or termination,
rates of pay or other forms of compensation; and selection for training, including
Ciry of Cohrabia Fleights
Industrial Area Redevelopment Plan
September 5, 2002
Page 9
apprenticeship. The CONSULTANT shall post in conspicuous places available to employees
and applicants for employment notices to be provided by the Government setting forth the
provisions of this nondiscrimination clause. The CONSULTANT shall state that all qualified
applicants will receive consideration for employment without regard to race, color, religion,
sex, or national origin. The CONSULTANT shall incorporate the foregoing requirements of
this paragraph in all of its subcontracts for program work, and will require all of its
subcontractors for such work to incorporate such requirements in all subcontracts for program
work.
I. TERM, TERMINATION~ SUCCESSORS AND/OR ASSIGNS
The Term of this Agreement shall be concurrent with the work authorized and shall be in
accordance with the schedule to be established between the CITY and the
CONSULTANT.
2. Either party may terminate this Agreement by written notice to the other party at its
address by certified mail at least ten (10) days prior to the date of termination.
3. Neither the CITY nor the CONSULTANT shall assign, sublet or transfer its interest in
this Agreement without the written consent of the other.
4. The time schedule shall not apply and/or time extensions will be allowed for any
circumstances beyond the control of the CONSULTANT.
5. This Agreement shall be governed by all applicable laws.
6. Upon temfination, Consultant shall be entitled to fees earned through the effective date of
termination.
DISPUTES
In the event the CITY and CONSULTANT are unable to reach agreement under the terms of
this contract, disputes shall be resolved using alternative dispute resolution (ADR).
REVOCATION
If this agreement is not signed and accepted by both parties within 90 days of the contract
date, it shall become null and void.