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HomeMy WebLinkAbout1986-03-31 HRA Regular Meeting • MINUTES EDINA HOUSING AND REDEVELOPMENT AUTHORITY MARCH 31, 1986 Answering rollcall were Commissioners Bredesen, Kelly, Richards, Turner and Courtney. PHASE II CONDOMINIUMS APPROVED. Mr. Rosland indicated that the housing is going so well that it will be creating a cash flow problem. He reminded the Commissioners that Phase I included Phase I of residential, the park, the elderly high rise and one office structure. The cash flow problem is evidenced in Phases II through VII where there is approximately $2.5 million of public amenities yet to build. The whole project could conceivably be completed and sold out and moved into by the summer of 1988. The records indicate that we are serving the young people in the area of financial assistance. In addressing the cash flow problem, a method would be to sell approximately $22 to $3 million worth of bonds. Mr. Hughes showed an overview of the changes in the phasing plan approved by the Foundation. Staff recommends approval of this plan by HRA with the condition that Phase VII housing should be committed to at the same time that the Phase II office is committed. There being no further discussion, Commissioner Bredesen's motion to approve the revised phasing plan for the Condominiums, with the condition recommended by staff, was seconded by Commissioner Turner. Rollcall: Ayes: Bredesen, Kelly, Richards, Turner, Courtney • Motion carried. LAND SALE AGREEMENT & REDEVELOPMENT CONTRACT APPROVED. Mr. Hughes reported that the land sale agreement and redevelopment contract is proposed to be virtually identical for Phase II as for Phase I. The East Edina Housing Foundation has approved this contract. With HRA's approval of Phase II, a closing will be pursued on that particular piece of real estate in the near future, and there will be a commitment to install the public improvements and landscaping as done in Phase I. With no further discussion, Commissioner Turner's motion to approve the land sale agreement and redevelopment contract was seconded by Commissioner Kelly. Rollcall: Ayes: Bredesen, Kelly, Richards, Turner, Courtney Motion carried. AWARD OF BIDS CONTINUED TO APRIL 3, 1986. Mr. Rosland introduced the two packages of bids taken three weeks ago--Edinboro—ugh Outdoor Park and Residential Amenities, and the Enclosed Public Park. He indicated that we are over budget and therefore bringing the problem to the HRA. The developers have recently committed another $250,000 to the park, and the developers will also raise the housing contribution to park maintenance by another $24,000 each year. Mr. Rosland recommends that the $250,000 be put into the park trust fund for ongoing maintenance. Mr. Peter Jarvis of BRW explained that in reference to the Outdoor Park and Residential Amenities, the bid packages would be administered by Bor-Son, the City's Construction Manager. The bid packages actually make up one contract with a total of $510,045. From a real estate standpoint, there is more square footage of landscaping and finished space being done in Phase I than in all subsequent phases so that as • much as possible can be constructed at the onset. The long-term maintenance is the responsibility of the Homeowner's Association, with capital replacement being Minutes Edina Housing & Redevelopment Authority • March 31, 1986 Page Two the 100% responsibility of the Association. In order to accomplish the budget on this project, Mr. Jarvis explained that four deduct alternatives are included in the price. The fountain, an entry gate from the park into the residential area and two structural seating arbors on the residential amenities area have been deleted. The actual park benches were bid as deduct alternates, and it is recommended that these be taken out and delaying them until the final design is completed. The remaining money in the budget for a subsequent year is in the range of $75,000. In regard to the Indoor Park, Mr. Jarvis reported that over the last four years the budgeted amount of $5 million has not changed. $5,894,834 is the actual contract amount. The first cost estimate was on February 15, 1985 and was a total of $5,225,000. On March 5, 1985, Bor-Son's second estimate was $4,565,000, after identifying a dozen areas within which to cut down the cost. For the next six months, construction drawings were brought to about a 98% completion. A 98% set of drawings was given to Bor-Son in September; one month later, a very detailed cost estimate came back, and it was presented on October 15, 1985, at an amount of $5,200,000. A series of deduct alternates were structured thereafter that would be built into the bid package which would hopefully bring the total package within the $5 million budget. Of the 15 alternates structured, 12 were clearly deduct alternates and three were add alternates. Six of the twelve deduct alternates were accepted, as well as three voluntary alter- nates which is reflected in the $5,894,834 figure. Mr. Jarvis commented on four items which were included as a last resort: window washing, $87,500; a sophisticated automatic lighting system, $125,000; light bulb changing system, $40,000; emergency . heating system, $25,000. Mr. Jarvis indicated that the Construction Manager does not recommend that we re-bid. He believes that the quantity of work that is in the market place today is of such a load that if we re-bid it, the numbers might then again be higher. As a point of clarification, Mr. Jarvis explained that the Plant- scape bid of $359,122 is not the capital cost. Of that figure, $291,535.28 repre- sents the entire Plantscape overstory and understory in place. $67,586.72 is the full guarantee and warranty to replace anything and everything and a training program for the City Staff, so that after the year when the warranty expires the gardeners on the City Staff will be trained to manage and care for the plant material. The seven oleanders are contraversial in that they are poisonous; it is recommended that they be taken out. Mr. Rosland pointed out that the tax increment runs do support an additional $1 million of park costs which would be in Phase I alone. Phase I of housing will generate about $64,000 of tax income for the project; through Phase VII, that income goes up to about $465,000 a year total income for the project. Mr. Fraser of Bachman's spoke in concern about a conflict of interest; he was surprised that the Construction Manager, Bor-Son, was the successful bidder for Package XII, the Plantscape, and he would like to see the City consider his bid before the award is made. Mr. Jarvis explained that Bor-Son was the low bidder and is the recommended company for the award. Bor-Son's contract for the package is McCaren Design, Inc. , who is experienced in Plantscape installation. Mr. Rosland summed up the situation by stating that it will cost $510,000 for the Outdoor Park and Residential Amenities and $5.9 million on the Enclosed Public Park. He also pointed out that staff will be coming back to a regular Council Meeting to approve the sale of $3,000,000 worth of bonds for phases two through seven of the housing and the amenities which are committed. Mr. Jarvis hoped that the Council would take • into consideration the $250,000 contribution by the developers as an indication of good faith plus the increased maintenance charges; he does not recommend taking out any program areas, because on down the line they will all have a greater impact than we can now envision. Minutes Edina Housing & Redevelopment Authority March 31, 1986 Page Three Commissioner Kelly urged that the Park Board look at the bid packages before the Council makes a decision. Commissioner Bredesen indicated that he is skeptical about spending $5,000,000 on this sort of a park; he feels that it is not needed and is in an inaccessible area of the City. As a result, he does not support accepting the bids. Mrs. Lonsbury pointed out that the Park Board would be willing to look over the bids and would call a special meeting for April 3, 1986, at 7:30 A. M. As a result of this decision, Commissioner Richards moved to continue the HRA Meeting to April 3 at 4:00 P. M. so as to allow the Park Board an opportunity to go over the bid packages carefully and in detail and then submit their recommendation at the 4:00 meeting. This motion was seconded by Commissioner Turner. Rollcall: Ayes: Bredesen, Kelly, Richards, Turner, Courtney Motion carried. The HRA Meeting was adjourned by motion of Commissioner Kelly, sec ded Commissioner Turner, at 8:50 P. M. , and carried una jmously. Executive Direc r I