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2003-04-08The regular April 8, 2003 meeting of the Mound Housing and Redevelopment Authority is scheduled to begin at 7:10 p.m. Kandis Hanson Executive Director ~~ • A~F,NnA MOUND HOUSING AND REDEVELOPMENT AUTHORITY APRIL 8, 2003 7:10 P.M. PAGE 1. OPEN MEETING 2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS 3. ACTION APPROVING MINUTES: MAR 25, 2003 REGULAR MTG 1-2 •4. ACTION ON RECOMMENDATION TO SET BID DATE FOR 3-10 DEMOLITION OF LONGPRE BUILDING 5. ADJOURN ,. MOUND HOUSING AND REDEVELOPMENT • MARCH 25, 2003 The Housing and Redevelopment Authority of and for the City of Mo nd, Minnesota, met in regular session on Tuesday, March 25, 2003, at 7:00 p.m. in t e council chambers of city hall. Members Present: Acting Chair Mark Hanus; Commissioners Bob B~own, David Osmek and Peter Meyer. Members Absent: Chairperson Pat Meisel Others Present:. City Attorney John Dean, Executive Director Kandis anson, City Clerk Bonnie Ritter, Community Development Director Sarah Smith, City E gineer John Cameron, Sarah Carlson, Tom Stokes, Chuck Alcon. 1. OPEN MEETING Acting Chair Mark Hanus called the meeting to order at 7:00 p.m. 2. APPROVE AGENDA MOTION by Brown, seconded by Osmek to approve the agenda. All voted in favor. Motion carried. • 3. APPROVE MINUTES MOTION by Brown, seconded by Osmek to approve the minutes oft a regular meeting of March 11, 2003. All voted in favor. Motion carried. 4. MANAGEMENT REPORT FOR INDIAN KNOLL Sarah Carlson presented her report. MOTION by Osmek, seconded by Brown to approve the March, 200 bills. All voted in favor. Motion carried. 5. ACTION ON RECOMMENDATION TO SET BID DATE FOR DE OLITION OF LONGPRE BUILDING Hanson reported that the League of Minnesota Cities Insurance Tru conducted a routine loss control survey, resulting in concern over the Longpre Bu Iding. Demolition of the building has been studied from all angles and suggests going head to set bid date with the intent of seeing if the bids come in where the contracto s estimate, which is in excess of $100,000. The building is wedged in close to two oth r businesses, one of which is attached at the roof line, and their foundations are depen ent upon each other. This building also fronts on two county roads, resulting in the eed for permits to close the roads during demolition. Brown asked if the bidding process could be done for $1,000 and Cameron answered • that it could. -1- HRA Minutes -March 25, 2003 • MOTION by Brown to authorize city staff to proceed with the bidding process to demolish the former Longpre building.- Motion died for lack of a second. Discussion followed regarding the feasibility of going through the bidding process if there are no funds available to proceed with the demolition. It was noted that at the specia( meeting of April 1St, special bonding needs are to be discussed and possible funding for the demolition can be added to this discussion. MOTION by Osmek, seconded by Hanus to table action on this item until the next HRA meeting. The following voted in favor: Osmek, Hanus and Meyer. The following voted against: Brown. Motion carried. 6. ADJOURN MOTION by Osmek, seconded by Hanus to adjourn at 7:25 p.m. All voted in favor. Motion carried. Acting Chair Mark Hanus • Attest: Bonnie Ritter, City Clerk • 2 -2- 0 5341 Maywood Road • Mound, MN 55364 (952) 472-3190 MEMORANDUM To: Mound Housing and Redevelopment. Authority From Matt Simoneau, Building Official /Sarah Smith, Comm. Dev. Director Date: March 20, 2003 Re: Former Longpre Building - Authorization by HRA to Advertise for Bids Background As the HRA is aware, the City purchased the former Longpre building in 2001 and planned to demolish the structure shortly thereafter. During preparation of the bid documents, a number of conditions were identified which significantly increased the cost of the project therefore the HRA opted to delay the demolition until the adjacent structures could be removed at the same time. Since that time, numerous concerns have been raised from both City staff and the public about the building including possible safety hazards (ie. falling bricks and/or exterior material, increased potential for fire and vandalism, failing roof system, hazardous materials, etc.) Additionally, negative • comments regarding the building's appearance are continually heard by City staff and off tiers. As the HRA may be aware, City crews removed loose bricks and stucco from the building last summer following an inspection by the Building Offical. Additionally, a volunteer crew painted the exterior boards as suggested by the Planning Commission in an attempt to minimize the building's "boarded up" appearance. LMC1T Loss Control Inspection The League of Mrnnesota Cities Insurance Trust (LMCTI~, the City's insurance carrier, conduc~l a routine inspection in February 2003 to evaluate the bur3ding. The following problems were identified: • Stucco falling on the sidewalk on the west side of the building • Bricks falling to the ground on the east side of the building • Wall buckling on the east side of the building • Wood awnings deteriorating and falling on the-north and west sides • Close proximity and shared walls with neighboring buildings • • Asbestos containing items in the irrterior of the building -3- As stated in their Febniaiy 20, 20031etter, the LMCTf has requested a response from the City within 60-days to address how the City intends to respond to their concerns. Manbers of the HRA are • advised that the LMCIT has strongly recommended that the City again consider demolition of the Longpre building as it seems to have continued to deteriorate since their 2001 inspection. Preliminary Estimate Based on recent discussion(s) with a demolition contractor who specializes in "infill building removal" it is estimated that it could cost between $100,000 - $125,000 to renwve the binding. At this time, City staffis working on a number of possible financing options to pay for the project'and will further this discuss this issue at the meetinng. StatFRecommendation Over the course of the last month, City staff; including the City Manager, City Engineer, Public Works Director, Fire Chief Building Offiaal and Finance Director have met several tunes to discuss the issue(s). At this time, City staff is recommending that the HRA authorize City staff to proceed with the bidding process to demolish the former Longpre building. City staff will be present at the March 25~' I-iRA meeting to provide additional comment regarding this matter and respond to questions from HRA members. Attachments • Letter from LMCIT dated Febnaaiy 20, 2003 • • Advertisement for Bid for Building Demolition • Memorandum from City Engineer dated August 24, 2001 • • Page 2 -4- • 4 LMC League of Minnesota Cifies L'ities promofing exce~lerice LEAGUE OF MINNESOTA CITIES INSURANCE TRUST Loss Control Services Administration: c/o Berkley Risk Administrators Company, LLC 222 South 9t" Street, Suite 1300, Minneapolis, Minnesota 55402-3332 Phone: (612) 766-3172 Fax: (612) 766-3199 Web Site: www.lmnc.org February 20, 2003 Ms. Kandis M. Hanson City Manager City of Mound 5341 Maywood Road Mound, MN 55364 Dear Ms. Hanson: A routine loss control survey was recently conducted concerning the Longpre building on Commerce Boulevard. This was in conjunction with the City's participation in the League of • Minnesota Cities Insurance Trust (LMCIT) property, liability and workers' compensation. program. The purpose of my visit was to assist the city in the reduction of potential loss through loss control and risk management activities. 01-02/03 At the time of our loss control survey, we discussed the demolition of the "Longpre building" on Commerce Boulevard. In reference to the April 23, 2001 memo written by Bernie 5zczesniak LMCIT, Loss Control Consultant, "the building will require significant interior and exterior renovation; and deterioration of the exterior of the building was noted. Once the city owns the building it should consider demolition as soon as practicable to prevent further liability to the city. Extreme care should be taken when doing demolition to prevent any damage to the adjacent buildings." The problems with the building noted on the day of my survey February 07, 2003 included: - Stucco falling to the sidewalk on the west side of the building. - Bricks falling to the ground on the east side of the building - Wall buckling on the east side of the building - Wood awnings deteriorating and falling on the north and west sides - Close proximity and shared walls with neighboring buildings - Asbestos containing items in the interior of the building outlined in the STS survey of 2001 The Risk.~lV,ianagement problems associated with the building may present hazards to the public. - You may` find that these. issues. may be moxe cost effectively addressed by the demolition of the • building versus renovation. It is again recommended that the city strongly consider. demolition of the Longpre building as it seems to have continued to deteriorate since our last visit in 2001. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER -5- r, Page 2 • The long-term benefits and successes that can be enjoyed by a cooperative, self-insurance organization depend upon .serious and careful consideration of loss control recommendations. In that context, we ask that you keep us informed of the steps you take to address these loss control recommendations. Therefore, please. respond within 60 days of your receipt of this letter regarding the status of how you intend to respond to these loss control recommendations. I appreciate the time and courtesy extended to me at the time of my loss control visit. If I can be of any assistance befoxe my next. visit,. please- da nothesitate_ta_contact_me_ _ _ __ . _. Sincerely, ,~ Lori A. Severson, M.S. Loss Control Consultant Berkley Risk Administrators Company, LLC cc: Mr. Gino Busnario, Finance Director 5341 Maywood Road Mound, MN 55364 Arthur J Gallagher & Co./Youngdahl • 7825 Washington Ave S. Suite 300 Minneapolis, MN 55439 Recommendations and comments are provided for loss control and risk exposure improvement purposes only in conjunction with the insurance program referenced above. They are not made for the purpose of complying with the requirements of any law, rule or regulation. We do not infer or imply in the making of these recommendations and comments that all sites were reviewed or that all possible hazards were noted. The final responsibility for conducting loss control and risk management programs must rest with the insured. • -6- ADVERTISEMENT FOR BIDS CITY OF MOUND HOUSING AND REDEVELOPMENT AUTHORITY • DEMOLITION AND SITE CLEARING LONGPRE BUILDING Sealed proposals will be received by the Mound City Clerk until 11:00 A.M. Wednesday, Apri130, 2003 at the City of Mound Offices, at which time they will be publicly opened and read aloud, for the furnishing of all labor, equipment and materials to complete the demolition and site clearing of the Longpre Building at 2300, 2308, and 2310 Commerce Boulevard. The bids will be considered by the Mound Housing and Redevelopment Authority at their meeting on Tuesday, May 13, 2003. All proposals shall be addressed to: Bonnie Ritter, City Clerk City of Mound 5341 Maywood Road Mound, Minnesota 55364 and shall. be secul'ely sealed and shall be endorsed on the outside with the statement "Demolition and Site Clearing, Longpre Building" and shall be on the Bid Form included in the specifications for the project. Copies of the plans and specifications and other proposed contract documents are on file with the • City Clerk and at the office of McCombs Frank Roos Associates, Inc., 15050 23rd Avenue North, Plymouth, Minnesota 55447. Plans and specifications for use in preparing bids may be obtained at the offices of the Engineer. upon payment of $30.00 per set (includes MN sales tax), which is NON- REFUNDABLE. Each bidder shall file with his bid a cashier's check, certified check, or bid bond in an amount of not less than five (5) percent of the total amount of the bid. No bid may be withdrawn within sixty (60) days after the bids are opened. The HRA I-eserves the right to reject any and all bids and waive any informalities or irregularities therein.. Mound Housing and Redevelopment Authority Pat Meisel, Chairperson ATTEST:. Bonnie Ritter, City Clerk and HRA Secretary s:l~nain:\Mou 13314\spec~\adforbid2003 • -7- _~ FRA August 24, 2001 Ms. Kandis Hanson, City Manager City of Mound 5341 Maywood Road Mound, Minnesota 55364 SUBJECT: HRA City of Mound Longpre Building Demolition MFRA #13314 Dear Kandis: As you are aware, we were directed by the HRA to proceed with the bidding process for demolition • and site clearing of the Longpre property recently acquired by the City. During preparation of the bidding documents, a number of conditions became apparent that could add significant cost to this project. We are estimating that the additional cost to demolish the Longpre building separately from the attached building to the south and the structure within three feet to the east could easily exceed $60,000. The following are conditions that now exist which will add to the demolition expense and would have little or no impact on cost if delayed until the adjacent structures can be removed at the same time: - Connection to Larson Printing building to the south. The Longpre building has a full basement, whereas it appears the attached building is a slab on grade with frost footings. At a minimum, the south wall and possibly short sections of both the east and west wall of the Longpre building would need to be left in place to prevent structural damage to the Larson building. Many more precautions would also be required in the demolition of the Longpre building as a separate undertaking than if both buildings could be removed at the same time. - Available Working Space. The area of the Longpre property, beyond the building is very limited; therefore either construction easements would be required or the majority of the demolition must be accomplished from the two streets, which are both Hennepin County Roads. This would require special permitting from Hennepin County and would probably result in partial road closings and additional cost to the project. • -8- Ms. Kandis Hanson, City Manager August 24, 2001 Page 2 • - Lauer Building. The removal of the Lauer building at the same time is not as critical, however some cost saving could be realized if done as a package. For the reasons stated, we are recommending that the demolition of the Longpre building be delayed until control of the Larson and Lauer properties are obtained and demolition of all three buildings can be undertaken at the same time. If you have any questions or need additional information, please contact us. 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