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