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HomeMy WebLinkAbout09-14-2020 EDA Minutes ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF September 14, 2020 The meeting was called to order at 5:30 pm by Chair Szurek. Members Present: Novitsky, Buesgens, Schmitt, Herringer, Murzyn, Williams and Szurek. Staff Present: Aaron Chirpich (Community Development Director), Kelly Bourgeois (City Manager), Mitchell Forney (Community Development Coordinator), and Christy Bennett (Recording Secretary). CONSENT AGENDA 1.Approve the minutes from the meeting of September 8, 2020. Questions from Members: There were no questions. Motion by Buesgens, seconded by Murzyn to approve the consent agenda as presented. All ayes. MOTION PASSED. Business Items: 1. 4441 Central, Hazardous Material Abatement Contract BACKGROUND: Forney shared that the City is looking to approve bids for the removal of hazardous material from 4441 Central Ave NE. In March of 2020 the EDA purchased the property located at 4441 Central Ave NE through the Commercial Revitalization Program. It was the ultimate goal of the EDA to demolish the blighted single family residential house on the property, and prepare the site for redevelopment. In order to keep the price of demolition down, Community Development staff saw it necessary to bid out the removal of hazardous materials separate from the demolition. The scope of work submitted in the bid request included the removal of asbestos containing materials, appliances, and accessories containing hazardous materials. In response to the request for bids, the EDA received 2 quotes. The quote submitted by Robinson Environmental Inc. was determined to be the low qualified bid for the abatement work at $2,632. Robinson Environmental Inc. shall furnish the services and necessary equipment to complete all work specified in the scope of work. All work will be performed in accordance with OSHA regulations, Minnesota Department of Health Asbestos Abatement Rules, and other applicable Federal and State regulations. Robinson Environmental Inc. shall insure proper clean up, transport, and disposal of hazardous and asbestos containing materials. Bid Spreadsheet: Company Total Hummingbird $ 3,375.00 Environmental LLC. Robinson $ 2,632.00 Environmental, Inc. STAFF RECOMMENDATION: Staff recommends awarding the low bid for abatement at 4441 Central Ave NE to Robinson Environmental Inc. Questions from Members: Szurek asked what constituted the need for the hazardous materials contract. Forney said that, consistent with many buildings in Columbia Heights, there are asbestos-laced tiles. For 4441 Central Ave specifically, there is a room with asbestos tile, as well as some windows that are glazed with asbestos. In addition, there are multiple appliances throughout the building with hazardous materials in them that need to be removed. Herringer asked if the demo bid for the property is still out. Forney confirmed that bids are open until 9/25 for the demolition. Forney said there is one bid in so far for the demolition Szurek asked if the EDA will have to go through this process again for accepting a bid for the demolition. Forney confirmed yes. EDA IN AND FOR THE CITY OF COLUMBIA HEIGHTS CONTRACT FOR REMOVAL OF ASBESTOS, AND OTHER HAZARDOUS MATERIALS FROM 4441 UNIVERSITY AVE NE, COLUMBIA HEIGHTS For valuable consideration as set forth below, this Contract dated the __ day of____, 2020, is made and entered into between the Economic Development Authority in and for the City of Columbia Heights, a public body corporate and political created pursuant to the laws of the State of Minnesota ("EDA") and Robinson Environmental, Inc. a Minnesota corporation ("Contractor"). CONTRACT DOCUMENTS 1. Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract and the Exhibit A Proposal dated September 5, 2020, prepared by Contractor attached hereto as for the removal of asbestos- containing materials, and removal of other hazardous materials in preparation for demolition of the residential property located at 4441 Central Ave NE, Columbia Heights, Minnesota (“Property”). The survey prepared by Angstrom Analytical, Inc. dated June 30, 2020 (“Survey”) identifies certain hazardous materials that shall be removed by Contractor Exhibit B from the Property and is attached hereto as . The Contract, Proposal and Survey shall comprise the total agreement of the parties hereto. No oral order, objection, or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. THE WORK 2. The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the Proposal as removal of asbestos-containing materials, and removal of hazardous and solid waste materials identified on the Survey, excluding the fuel tanks, in preparation for demolition of the residence located on the Property. As part of the Work, Contractor agrees to remove all excess material from the Property. CONTRACT PRICE 3. The EDA agrees to pay Contractor the sum of $2,632.00 in exchange for Contractor furnishing labor and materials for the Work at the Property, payable within 30 days of Contractor’s completion of the Work. Contractor may start work on this project upon its execution of this Contract. COMPLETION DATE/LIQUIDATED DAMAGES 4. Contractor shall complete all Work on or before September 30, 2020. ("Completion Date"). Due to the difficulty in ascertaining and establishing the actual damages which the EDA would sustain, liquidated damages are specified as follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every calendar day that the Contract shall remain uncompleted beyond the Completion Date of September 30, 2020, Contractor shall pay the EDA $50.00 per day as liquidated damages. INSURANCE 5. Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following insurance coverage, and listing the EDA and City as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b. Workman's Compensation: Statutory Amounts This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 day’s written notice to the EDA of intent to cancel. The certificate must further provide that Contractor’s insurance coverage is primary coverage notwithstanding any insurance coverage carried by the City or EDA that may apply to injury or damage relating to the maintenance or repair of the City streets or rights-of-way by either the City, EDA or any employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services described herein. All insurance is subject to the review and approval of the Columbia Heights City Attorney. LAWS, REGULATIONS AND SAFETY 6. Contractor shall give all notices and comply with all laws, ordinances, rules and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the Work and the safety of the public. INDEMNIFICATION 7. To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the EDA, its agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. ASSIGNMENT 8. Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities without prior written consent of the EDA. NOTICE 9. The address and telephone number of Contractor for purposes of giving notices and any other purpose under this Contract shall be 4716 67th Ave N, Brooklyn Center, MN 55429, 763-566-4242. The address of the EDA for purposes of giving notices and any other purposes under this Contract shall be 590 th 40 Avenue NE, Columbia Heights, MN 55421. IN WITNESS WHEREOF , the parties to this Contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS Hummingbird Environmental LLC 29929 County 5 Blvd Red Wing MN 55066 522 Concord Street North, Mailing Address: Suite 400, South St. Paul, MN 55075 (651) 457-4699 AsbestosJoe@yahoo.com PROPOSAL / CONTRACT Mitchel Forney FOR: 763-706-3674 mforney@columbiaheightsmn.gov Project: 4441 Central Ave NE Columbia Heights Removal and disposal of the ACM and hazardous materials as listed on the survey by Angstrom Analytical. 1. ACM >>>$2,500.00 2. Hazardous >>> $875.00 TOTAL: $3,375.00 NOTE: POSSIBLE EXTRAS: CONTRACT PRICE The contract Price for the work shall be: $3,375.00 HUMMINGBIRD will invoice for completed work as it deems appropriate; invoices shall be paid by Client on a net thirty-day (30) basis at HUMMINGBIRD address shown above. Authorized Hummingbird Environmental Signature Authorized Client Signature Joe Yager/__________________ By: By: ___________________ Its: Project Manager Its: Date: 9-4-2020 Date: Robinson Environmental, Inc. th 4716 67 Ave. N. Brooklyn Center, MN 55429 Ph: 763-566-4242 - Fax: 763-566-4681 Date: 09/05/2020 Proposal For: City of Columbia Heights, MN. Attn: Mitchell Forney asbestos removal at 4441 Central Ave. NE MPLS., MN. Robinson Environmental Inc. will performUsing licensed asbestos workers, following all Minnesota OSHA, MDH and MPCA rules and regulations for the removal of asbestos. Robinson Environmental Inc. will furnish all labor, materials, equipment disposal and Insurance for project. SCOPE OF Work: Removal of asbestos sheet vinyl flooring in kitchen, windows containing ACM. 2 washers, 1dryer, 1 furnace, 1 refrigerator, 2 stoves, 1 chest freezer, 1 water heater, 1 window AC. PRICE: 2,632.00 Timothy Robinson Motion by Schmitt, seconded by Novitsky, to accept the low bid of Robinson Environmental Inc. for the removal of all hazardous materials located at 4441 Central Ave NE; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 2. Approve Land Sale to BPOZ Columbia Heights, LLC for Redevelopment of EDA Owned Property and Approval of TIF Agreement for Same. BACKGROUND: Chirpich said the EDA is required to hold a public hearing to approve the sale of EDA owned land. The EDA is also required to hold a public hearing for the final approval of tax increment financing agreements. The redevelopment of the 3989 Central Avenue site includes both components. Therefore, to prepare for the land sale and final TIF approval, staff published a notice to hold a September 14, public hearing. However, due to the complex nature of the project, the final purchase, redevelopment, and TIF agreements are not ready for EDA approval. Rather than cancel the public hearing and republish for a new hearing, staff request that the EDA to open the public hearing and continue the hearing to September 21. Questions from Members: There were no questions. Motion by Schmitt, seconded by Buesgens, to continue the public hearing to September 21, 2020 at 6:00 p.m. Other Updates Chirpich said he wanted to share some updates about the various contracts being worked on. The first and biggest agreement is the purchase and re-development agreement. This agreement outlines the sale of the City owned and the EDA owned property that the City conveyed to the EDA in the past. Simultaneous to the closing, a new deed will be recorded. As it stands right now, there is City and EDA owned sites, which the development agreement reflects. This complicates it to a degree, going between entities. Chirpich said within this contract, the EDA will have the TIF agreement. This will be the first time that the TIF Note amount will be memorialized in contract form. Chirpich said he is happy to share, that while still a large number, the overall amount of TIF assistance has decreased. Staff has also been discussing some of the finer points with Ehlers and working with Atlatus on the clawback provisions specific to if the project over performs, whether the TIF Note will then decrease. Those provisions exist, but they can be under different terms, depending on the TIF agreement. An escrow account also had to be built in to cover the demolition costs that have been taken on by the City. Chirpich said there has been a lot of negotiating around these items over the past couple of weeks. Chirpich said there are several other ancillary agreements, as well, that need to be, in Staff’s estimation, to at least 95% completion for next week, so that the EDA is comfortable approving the sale, as these agreements support the sale. Chirpich said the first is the Transfer Agreement, which dictates the terms of the transfer of the City Hall condo back to the City. City Hall will be one condo within the larger project, so a transfer mechanism needs to be built in to give City Hall back to the City. Within that agreement, there is a component of City upgrade costs. Throughout this project, there has been talk about the base condo unit and then any City upgrades that are specific to enhancing City Hall to distinguish it as City Hall. This includes facade improvements, additions of stone, and streetscape elements, as well as the City Hall entrance from the City Hall space into the structured City Hall parking. There is a vestibule that extends into that area to make it a more embellished entrance. These agreements account for an estimation of those costs, which will be escrowed at closing into an account that Alatus can access as the improvements have been completed. The estimation for these costs is available now and is being reviewed. Staff thinks that Alatus has done a nice job compartmentalizing the upgrades vs the base unit. This is in a good place to be brought to the Council to decide if the City wants to keep all of the upgrades discussed or to scale back. Chirpich said the governing documents for the condo relationship, the Condo Declarations and By-Law agreements, are also being looked at. Right now, there will be two unit owners, the multi-family and the City. The cafe/coffeeshop is built into the multi-family owner’s side as one unit. The City has made several turns on the Condo Declarations and By-Laws and they are at a point where Staff wants to be able to hand them off and say that we are comfortable with the sale. The actual Declarations do not get approved until there is a functioning board and there is ownership in place in the condos. Within that agreement, there is a sub- agreement, which is being called a parking licensing agreement. There are two parking components to City Hall; the first is for City Hall parking that is directly outside of City Hall that’s for customers, residents, people going to City Hall other than staff, and for Council Members. The spaces immediately outside of City Hall will be under the control of whoever owns the City Hall condo portion forever. There is also a shared parking agreement for stalls that are in the multi-family parking, which will rotate between usage by City staff during the day and apartment residents using it in the evening. We don’t take ownership of those spaces through the Condo Declarations; it’s an agreement to license or rent those stalls in that space, because of the shared agreement. Chirpich said there are layers and layers of agreements, but we are starting to hone in on all of these, so hopefully we will be ready to do the sale review next week and then move pretty swiftly to closing on 9/30. Buesgens asked about EDA representation on the board. Chirpich said that the EDA will have 1 vote. The multi-family has approximately 95% ownership by square footage and the City condo has slightly over 5%. The EDA will have 1 vote out of 3. Buesgens asked if the vote will be a staff person. Chirpich said that is still being determined, but right now, the prevailing wisdom is that it would be a staff person. There are provisions within the condo agreement for things that are very important to the City that are going to require a 100% vote; for example, the Condo Association couldn’t decide that they are going to take away our parking. Another important element is the shared HVAC system. The VRF units are all located on one end of the building, including the City Hall units, in the space shared by the multi-family unit, where the EDA needs an access agreement. The EDA will own and maintain that unit inside the multifamily space. Chirpich said the City’s team at Barna, Guzy & Steffen has a condo expert that has represented the City well. It is a significant document, because this is the City’s chance to prepare for a future where Alatus won’t be the owner of the multi-family unit if they sell or if the City decides to sell their space; we are trying to account for 50 years from now and preserving as many rights as possible. Buesgens asked if it has been decided what percentage of the association costs like maintenance outside the building, shared areas, etc. that the City will be paying for; is it 5% like the representation on the Association board? Chirpich said our assessment amount would be the square footage ratio of 95/5%. Outside of that, there is a capital improvement account, which Staff is still ironing out the details for what we would be depositing in that account annually for replacement things not covered by the day to day maintenance account. This will have a similar ratio. There are some non-traditional items that the City may take over, like our exterior façade, because we have some more expensive elements, as well as having, for example, the immediate right to deal with graffiti if it arises. Kevin Hansen and the City’s facilities team are taking a look at the nuances of this; this would typically be an Association maintained piece. This is one potential deviation that Staff is exploring. The Licensing Agreement for parking would be separate from all of that. Szurek asked if the City will be part of the board at their Association; the whole building will be one part and the City will be the other part of the Association. Chirpich said that yes, there will be two units, the multi-family and the café/restaurant will be one unit and City Hall will be the second unit. Schmitt said that at first, there were concerns with their not being enough office space for personnel, but with the changes to business that Covid-19 is causing, more people are working from home. Even though the City couldn’t foresee this, thankfully we are able to downsize and consolidate and it seems to really be working. Schmitt expressed thanks for the work done on this project. Motion by Schmitt, seconded by Novitsky, to adjourn the meeting at 5:57 pm. All Ayes. MOTION PASSED. Respectfully submitted, Christy Bennett Secretary