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HomeMy WebLinkAbout1995 09-11 EDAP Regular Session - 1 EDA AGENDA CITY OF BROOKLYN CENTER 11 SEPTEMBER , 1995 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Agenda and Consent Agenda -The following items are considered to be routine by the Economic Development Authority and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes - Commissioners not present at meetings will be recorded as abstaining from the vote on the minutes. 1. August 14, 1995 - Regular Session 4. Commission Consideration Items a. Resolution Approving One (1) Brooklyn Center Economic Development Authority Deferred Loan (File No. H -135 [8061]) 4 b. Staff Report on 6637 Humboldt Avenue North 1. Resolution Approving Specifications and Authorizing Advertisement for Bids for Structure Removal at 6637 Humboldt Avenue North C. Discussion Item: Scattered Site Housing Redevelopment Program and Sale of Lot at 6601 Bryant Avenue North d. Staff Report on 6645 Bryant Avenue North -This single- family property is in foreclosure and may be available for acquisition by the EDA for single - family redevelopment. e. Resolution Approving the Preliminary Brooklyn Center Economic Development Authority Budget for the Year 1996 Pursuant to MSA Chapter 469.107, Subdivision I d��r f. Resolution Requesting the City of Brooklyn Center to Levy Taxes for the Benefit of the Brooklyn Center Economic Development Authority for the Year 1996 :5. Adjournment Council Meeting Date September 11, 1995 31 City of Brooklyn Center Agenda Item Number _� 2 Request For Council Consideration • Item Description: EDA Minutes - August 14, 1995 - Regular Session Department Approval: (q G. Brad Hoffman, Director of Community Development Managers Review /Recommendation: No comments to supplement this report Comments below /attached Recommended City Council Action: Summary Explanation: (supporting documentation attached Yes ) August 14, 1995 - Regular Session Barb Kalligher was absent from the meeting and the minutes will reflect her abstention from the vote on these minutes. MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION AUGUST 14, 1995 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Myrna Kragness at 9:12 p.m. ROLL CALL President Myrna Kragness, Commissioners Kathleen Carmody, Debra Hilstrom, and Kristen Mann. Also present were Interim City Manager Cam Andre, Director of Public Services Diane Spector, Director of Community Development Brad Hoffman, City Attorney Charlie LeFevere, and Council Secretary Connie Beckman. Commissioner Barb Kalligher was absent. APPROVAL OF AGENDA AND CONSENT AGENDA President Kragness inquired if any Commissioner requested any items be removed from the consent agenda. No requests were made. There was a motion by Commissioner Mann and seconded by Commissioner Carmody to approve the August 14, 1995, agenda and consent agenda as printed. APPROVAL OF MINUTES There was a motion by Commissioner Mann and seconded by Commissioner Carmody to approve the minutes of the July 24, 1995, EDA meeting as printed. The motion passed unanimously. EDA CONSIDERATION ITEMS RESOLUTION NO. 95 -23 Commissioner Debra Hilstrom introduced the following resolution and moved its adoption: RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY DEFERRED LOAN (FILE NO. H -134 [8060]) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kristen Mann, and the motion passed unanimously. 8/14/95 - 1 - ADJOURNMENT There was a motion by Commissioner Mann and seconded by Commissioner Carmody to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 9:13 p.m. President Recorded and transcribed by: Connie Beckman TimeSaver Off Site Secretarial 8/14/95 -2 - Council Meeting Date 9/11/95 31 City of Brooklyn Center Agenda Item Numbe Request For Council Consideration • Item Description: Resolution Approving One (1) Brooklyn Center Economic Development Authority Deferred Loan (File No. H -135 [8061]) Department Approval: Tom Bublitz, Community Development S ecial' Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommendation: Staff recommends motion to adopt Resolution Approving One (1) Brooklyn Center Economic Development Authority Deferred Loan (File No. H -135 [8061]). • Summary Explanation: (supporting documentation attached Yes ) This information: is private and not available to the general public. Staff has received one application for a rehabilitation deferred loan (file no. H -135 [8061]). Attached is the homeowner's application and recommendation for work to be performed on the home. The applicant filed the initial application for the deferred loan program in November 1992, which is the date that established the applicant's position on the deferred loan program waiting list. The attached application dated August 1, 1995, is the date of the applicant's formal income verification application which is completed by Hennepin County staff once the applicant reaches the top of the waiting list. The home /applicant has not received a previous deferred loan under the program. The 1995 market value for file no. H -135 [806 1] is $78,800, and the exterior of the home does not meet the exterior maintenance requirements of the program and will require residing. In order to reduce the amount of work needed on this project, the building inspector has made a list of work items to be performed by the homeowner. The list is attached to the work specifications. • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY DEFERRED LOAN (FILE NO H -135 (80611) WHEREAS, the Brooklyn Center Economic Development Authority established a Home Rehabilitation Deferred Loan Program to assist low and moderate income individuals in the maintenance and repair of their homes; and WHEREAS, the Brooklyn Center Economic Development Authority has received one (1) application (file no. H -135 [8061]) from eligible individuals to receive deferred loan assistance; and WHEREAS, an inspection by the City of Brooklyn Center has determined that the work is necessary and appropriate under the Brooklyn Center Economic Development Authority Deferred Loan Program; and WHEREAS, the cost of the proposed deferred loan application is estimated at $15,000. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that: 1. The Brooklyn Center Economic Development Authority does approve the one (1) housing rehabilitation deferred loan application (file no. H -135 [8061]) as recommended by staff. 2. That the work be performed as recommended in the request for council consideration form dated September 11, 1995, and that the applicant be directed to obtain the necessary bids for staff review and approval. 3. The e ro ct shall not exceed p � o ed the deferred loan amount of $15,000. Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. URBAN HENNEPIN COUNTY HOUSING REHABILITATION PROGRAMS 0 FILE SUMMARY Funding: DBG Def: MHFA Def: MHFA Rev: MHFA Access: Other: Client: 0AN I On+ Address: City: = KLgN 6 � Zip: 55 Phone: 5jl - _— App'n Rec d: *� Process Begun: Completed: # Weeks: Eligibility Established: (date of earliest verification): Age: ( -H Sex: Ethnicity: W Marital Status: &4 Handicapped Household: (� # Residents: 5 # Renters: Age of House: Gears Resident: Market Val: $ - Z �—= of' Adjusted Mkt Val - (Mkt Val x 110 %) + 50% max loan: $ Equity (or adjusted equity) : $ r ]7 k k�k�k�E: �. c�F�t�Y��Y�E�k��Y�E k�Y *:r�F��Fk�F�F�t�F�F�F-k� For multiple incomes of one type enter totals below & show verifications on reverse. Income Source Monthly $ Verified Within 120 days? Salary Z 2JL� '1 2�D y!� Self - Employment SS SSI AFDC I Support/Maintenace I Rent Pension Interest Other Total monthly income: $ 2 . TT L � Monthly expenditures: $ T_—' -- (List on reverse) Affordability: $ lLl (CO (if negative, within 5% of monthly income? ) Ann'1 Income: $ :� Eligible income for h'hold in city: $ Assets: $ 29 Z.(�Q (If verification required, list on reverse) Title Verified: Zoning Verified: Inspected: Scope Out: Complete Bids: MEMORANDUM TO: Tom Bublitz, Community Development Specialist FROM: David Fisher, Building Inspector DATE: September 23, 1995 SUBJECT: Rehabilitation grant for 7049 Regent Avenue North Owner: Jay & Marlene Paskewich H -135 (8061) The subject property is a 2 bedroom rambler built in 1959. Homeowner takes pride in their home. Siding repair would help this property blend into the community. The City Assessor has valued this property at $78,800. ELECTRICAL - Furnish materials, accessories, fittings and equipment and perform work as required to place the electrical system in a complete, proper and legal operating condition. Upon completion, the electrical work in the dwelling shall be in compliance with the requirements of the FHA minimum standards, NEC and State codes. $ Code electrical service. Specify all other electrical code work not listed below and the cost per work item. $ Install hard wired smoke detectors with battery back up in all bedrooms and hallways adjacent to bedrooms. $ Relocate electrical mast through roof. $ Code electrical service. Specify all other electrical code work not listed above and the cost per work item. Electrical Total:$ MECHANICAL- All mechanical work shall be in compliance with the State Mechanical Code And the Uniform Mechanical Code. $ Replace gas valve with listed lever handle on existing furnace. $ Provide combustion air for existing furnace & water heater. $ Replace existing "B" vent for furnace and water heater to code. $ Install new central air conditioning unit, UL listed, Carrier or approved equal, minimum SEER 10.0 and for complete assembly. Wire on a separate circuit. Connect to existing furnace ductwork. Properly size unit for area. Specify brand and size: Mechanical Total: $ SEPTEMBER 6, 1995 7049 REGENT AVE N PAGE #2 OF 6 PLUMBING - All work performed shall be in compliance with the State and local applicable plumbing code requirements. The system shall be in a health -safe and proper worker order. Contractor shall be responsible for obtaining all necessary permits prior to starting work. $ Code plumbing system. Specify all other plumbing code work not listed below and the cost per work item. $ Install a new 40 allon, energy saves natural as AGA or UL listed water 9 gY 9 , heater; State or equal. Properly connect to gas line, plumb and vent unit. Haul away old unit. $ Provide backflow preventer on all outside spigots and laundry tub. $ Remove garbage disposal and plumb to code. Plumbing Total: $ FLOORING $ Install new resilient floor covering in kitchen and living room entry. Remove existing covering, unless contractor specifies otherwise. Clean and repair surface. Install 1/4" structural grade plywood and new sheet vinyl floor covering; Armstrong, Sundial or equal. Owner's choice of color and pattern. $25.00 sq yd, installed, allowance. Edging of floor covering shall be covered (discuss and confirm material and finish with owner). BASEMENT FLOORING $ Install new carpet and pad, FHA approved and meeting MPS fire -rated compliance. Armstrong or equal. Remove existing carpet and pad. Installation shall include all accessories of standard quality as required for the carpet and pad used. Owner's choice of color and pattern. $25.00 sq yd, installed, carpet allowance. Haul away all debris from removal /installation. $ Install tack down strip at entry to bathroom. EXTERIOR DOOR $ Install new side exterior steel insulated door, 1 -3/4" minimum thickness, flush, prehung unit with or without window of owner's choice. Castlegate or equal. Install new hardware, threshold, weatherstripping and lockset. Key alike to other doors and supply owner with 2 keys. Reuse casing and trim. Reinstall existing storm /screen door. EXTERIOR DOOR REPAIR $ Repair rear door to porch. Repair threshold and replace door knob key alike to other doors and supply owner with two keys.. SEPTEMBER 6, 1995 7049 REGENT AVE N PAGE #3 OF 6 WEATHER SEAL EXTERIOR DOOR $ Weather seal front exterior door. EXTERIOR STORM DOOR REPAIR $ Repair side storm /screen door so closes properly. INTERIOR DOORS $ Replace missing basement interior door, laundry room interior door, and left bedroom interior door, 1 -3/8" minimum thickness, hollow core, hardwood veneer (wood shall blend with surrounding millwork), flush, prehung unit. Install with new hardware. Reinstall casing. Apply painter's finish of owner's choice. HOUSE WINDOW $ Replace broken glass on kitchen window. HOUSE WINDOWS $ Install window replacements, vinyl framed with welded corners and thermal barrier, insulating glass, full screen and locking device. Alcoa, Benada or equal. Set new units in existing openings. Insulate cavities. Haul away old units with storms and screens. Replace all windows except basement windows. One window opening in each bedroom shall comply with egress code requirements. Owner's choice of color and type of windows. Specify type of window and total # of replacements: BREAK DOWN COST WINDOWS PER WINDOW $ 1 KITCHEN WINDOW $ LIVING ROOM WINDOW PICTURE AND TWO SIDE WINDOWS $ 1 LIVING ROOM WINDOW $ 1 BATHROOM WINDOW $ 1 WINDOW RIGHT BEDROOM $ 1 EGRESS WINDOW RIGHT BEDROOM $ 1 EGRESS WINDOW LEFT BEDROOM $ 1 WINDOW LEFT BEDROOM $ 3 BASEMENT FAMILY ROOM WINDOW $ 1 LAUNDRY ROOM WINDOW SEPTEMBER 6, 1995 7049 REGENT AVE N PAGE #4 OF 6 BASEMENT EGRESS WINDOWS $ Install 2 egress windows in basement bedroom, casement type and size for egress. Confirm window location with owner. Install new unit with new hardware, caulking, weather stripping, locking device, insulating glass, screen, framing and casing for complete assembly. Marving or equal. Metal clad exterior covering shall be with thermo- barrier. Apply painter's finish to wood of owner's choice. Install area well of galvanized metal or treated wood of owner's choice around exterior of window. Fill base of area well with 1'-0" drainage rockfill. Area well shall be sized for easy exit from window opening. If depth of area well is 30" or more, contractor shall consult with local building department for code requirements. Installation shall be in compliance with State and local building codes. SOFFIT VENTILATION $ Provide soffit ventilation per UBC every 6 to 8 feet. 8 by 12 inches in size. SIDING $ Install new steel siding to match existing siding. Install Tyvek or equal moisture barrier, flashing and sealant as required to provide weather tight walls. All accessories shall match siding, unless contractor specifies otherwise. Owner's choice of color and design of siding. Allside, alcoa or equal. Rework items that interfere with the siding installation. New siding shall be installed to line with lap as recommended by manufacturer. All accessories shall color match siding. Installation to meet State and local building codes and /or manufacturer's specifications (whichever is most restrictive). SOFFIT & FASCIA $ Cover entire eave area with .019 baked enamel prefinished aluminum, Alcoa or equal. Replace rotten and damaged boards. Materials shall be lapped for proper drainage. Apply aerated material to vented soffit area and ensure soffit venting that is open to attic area for unobstructed air flow. Owner's choice of color. WINDOW & DOOR TRIM $ Cover entire eave area with .019 baked enamel prefinished aluminum, Alcoa or equal. Replace rotten and damaged boards. Materials shall be lapped for proper drainage. Apply aerated material to vented soffit area and ensure soffit venting that is open to attic area for unobstructed air flow. Owner's choice of color. SEPTEMBER 6. 1995 7049 REGENT AVE N PAGE #5 OF 6 ROOF VENTS $ Remove existing roof vent and replace with five new vents GUTTER & DOWN SPOUTS $ Install new gutters and downspouts, baked enamel prefinished aluminum, Alcoa or equal. Gutters shall be 5" seamless, secured to the roof edge 36" or less on center and pitched to facilitate drainage. Downspouts shall be 2" x 3" corrugated, secured to wall and with an installed extension, extending a minimum of 6' -0" out from downspout. Owner's choice of color, Install new at same location as removed and for complete assembly. Dispose of old, removed gutters and debris. Straps shall not be installed on top of shingles. Examine, clean, and repair /replace if necessary, any adjoining work on which the gutters and downspouts are in anyway dependent for proper installation. HANDRAILS $ Install handrail to front and side steps. Owner has handrails $ Provide grippable handrail on all stairs from patio. $ Install gaurdrail on patio. Between deck and patio. $ Install guardrail on stairs from patio. POST AND BEAM $ Flash top of beam for porch and deck. $ Level deck and porch. KITCHEN CABINETS $ Repair existing kitchen cabinets. Or install new merillat cabinets in same location. Replace counter top with self edge formica and 4" splash back. (Owner's choice of color). $ TOTAL CONTRACTOR NAME: ADDRESS: PHONE: HOMEOWNER NAME: Jay & Marlene Paskewich ADDRESS: 7049 REGENT AVENUE NORTH, BROOKLYN CENTER, MN 55429 HOMEOWNER PHONE 561 -9047 H -134 (8060) CONTRACTOR SIGNATURE DATE SEPTEMBER 6, 1995 7049 REGENT AVE N PAGE #6 OF 6 HOMEOWNER TO DO LIST JAY & MARLENE PASKEWICH 7049 REGENT AVENUE NORTH BROOKLYN CENTER, MN 55429 POST AND BEAM $ On porch & deck fill all holes in joist hangers with joist hanger nails. $ Provide 2 lag bolts 16 inches on center into rim joist on porch & patio. ELECTRICAL WORK $ Install GFI outlet in basement bathroom. $ Replace bathroom fan in basement and provide wall switch. $ Replace all missing switch plate cover and outlet covers throughout dwelling. $ Verify lights in all rooms in basement are wired to code and secure all lights to junction box at ceiling. $ Wire laundry room to code. INTERIOR DOORS $ Replace missing strike plate on bathroom door. $ Replace missing molding around door to dinning room door. HOMEOWNER'S SIGNATURE DATE s Council Meeting Date / 9/1 11 / } 95 3 City of Brooklyn Center Agenda Item Number l L! Description: Item Descri P Request For Council Consideration • Staff Report on 6637 Humboldt Avenue North, Including Resolution Approving Specifications and Authorizing Advertisement for Bids for Structure Removal at 6637 Humboldt Avenue North Department Approval: Tom Bublitz, Community Development S ci 1�) Manager's Review /Recommendation: fy No comments to supplement this report Comments below /attached Recommendation: Staff recommends approval of Resolution Approving Specifications and Authorizing Advertisement for Bids for Structure Removal at 6637 Humboldt Avenue North. • Summary Explanation: su orting documentation attached Yes ( PP b ) At the July 27, 1995, work session, there was a consensus agreement among councilmembers to not use the EDA -owned fourplex at 6637 Humboldt Avenue North for an interim use, but to ultimately market the site for redevelopment. Also, at the July 25 meeting, staff was to report back on the project at a later date. PRELIMINARY ANALYSIS OF 6637 HUMBOLDT AVENUE NORTH BUILDING In a walk - through of the fourplex at 6637 Humboldt Avenue North, staff observed that the condition of the building is comparable to the fourplexes removed for the Park and Ride project on Brooklyn Boulevard. For the Park and Ride facility, the specifications for removal of the fourplexes included an option to purchase and move the building or demolish the building. The fourplexes on the Park and Ride site were purchased and moved. The bids on the purchase and removal of the fourplexes on the Park and Ride site ranged from $2,000 to $4,000. Based on preliminary inspections, it is anticipated that a comparable price could be achieved for the 6637 building. Preliminary estimates for demolishing the 6637 building range from $15,000 - 18,000, including disconnection of the utility services. In addition to demolition costs, there may be some asbestos abatement costs for this property. Samples of linoleum and ceiling material were collected and sampled, and the flooring samples proved positive • for asbestos. As a result of the positive test results on the linoleum, some asbestos abatement would be required if the property would be demolished. For the linoleum asbestos abatement only, the costs could be 53,000- 4,000. These costs are based on past contracts for asbestos abatement and are not actual quotes. Request For Council Consideration Page 2 Staff is recommending the specifications included with this report be used for removal of the structure • at 6637 Humboldt Avenue North with the option for moving or demolishing the property. In either case, demolition or purchase of the property, bids will be brought back to the EDA for final consideration. • • • CITY 6301 SHINGLE CREEK PARKWAY OF BROOKLYN CENTER, MINNESOTA 55430 31 BROOKLYN CITY HALL: 569 -3300 CENTER FAX: 569 -3494 TECHNICAL SPECIFICATIONS AND CONTRACT DOCUMENTS FOR RESIDENTIAL • STRUCTURE REMOVAL AT 6637 HUMBOLDT AVENUE NORTH FOR THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER BID OPENING: 11:00 A.M. October 3, 1995 SET NUMBER CONTRACT FOR MULTIFAMILY STRUCTURE REMOVAL AT 6637 HUMBOLDT AVENUE NORTH BROOKLYN CENTER, MINNESOTA TABLE OF CONTENTS COLOR PAGE NO. Official Notice to Bidders White 1 Instructions to Bidders and Specifications White 2 -13 Bid Proposal Yellow 14 -17 Affidavit of Non - Collusion Yellow 18 Sample Insurance Certificate Pink 19 OFFICIAL NOTICE TO BIDDERS RESIDENTIAL STRUCTURE REMOVAL BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY OWNER: The City of Brooklyn Center Economic Development Authority (ED) hereby gives notice that sealed Proposals will be received in the office of the Deputy City Clerk, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota, for the following described Project: Residential Structure Removal at 6637 Humboldt Avenue North, Brooklyn Center, Minnesota The major quantities of the work are as follows: Removal of One (1) Fourplex Multifamily Unit (Move or Demolish) TIME: Sealed bids will be received until 11:00 A.M. local time, on the 3 day of October, 1995, at the Brooklyn Center City Offices, at which time and place the Deputy City Clerk and the Community Development Director, or their designated representative, shall publicly open and read aloud the bids. Proposals arriving after the designated time will be returned unopened. • BIDS: To be considered, bids must be sealed and addressed to the Deputy City Clerk, City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. Bids shall be endorsed with the name and address of the Bidder and the Contract for which the bid is being submitted. CONTRACT DOCUMENTS: Copies of Proposal Forms, Plans, and Specifications may be obtained from the Community Development Department, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. BID SECURITY: No bid will be considered which is not accompanied by a cash deposit, certified check, cashier's check, or satisfactory bid bond payable to the Brooklyn Center EDA in an amount of not less than five hundred dollars ($500.00). BID REJECTION: The City of Brooklyn Center EDA reserves the right to reject any and all bids, waive any informalities in bidding, or to accept the bid or bids which best serve the interest of the City of Brooklyn Center EDA. (Published by the authority of the Economic Development Authority in and for the City of Brooklyn Center on the 20th day of September, 1995, in the Brooklyn Center Sun -Post) -1- BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY INSTRUCTIONS TO BIDDERS AND GENERAL SPECIFICATIONS FOR RESIDENTIAL STRUCTURE REMOVAL Sealed bids will be received at the office of the Deputy City Clerk, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota, for the purchase, removal and /or salvage of the building designated on the bid proposal form according to the following specifications. 1. TIME FOR SUBMISSION OF BIDS Sealed bids will be received at the above address for removal of these structures as listed on the bid proposal form until 11:00 A.M., local time, October 3, 1995. EXAMINATION OF SITE All bidders are expected to visit the site to inform themselves as to existing conditions. Failure to do so shall in no way relieve the successful bidder from performing the work as required for completion of the contract. Viewing of the structure at 6637 Humboldt Avenue North is scheduled for 10:00 A.M. on September 21, 1995, and 10:00 A.M. on September 26, 1995. All interested parties shall meet at 6637 Humboldt Avenue North, Brooklyn Center, on either of • these dates. 2. AT TIME OF SUBMITTING BID A. The attached Affidavit of Non - Collusion must be completed and returned with the proposal. Failure to include said affidavit shall result in rejection of the bid. B. Bids shall be submitted on the original copy of the Bid Proposal Form. C. All bids submitted must contain a bid security of $500. Security shall be in the form of a certified check, cashier's check or bid bond payable to the Economic Development Authority in and for the City of Brooklyn Center (EDA). BID SECURITY, as outlined above, is not to be confused with the PERFORMANCE SURETY referred to herein. D. Any payments submitted to the Economic Development Authority in and for the City of Brooklyn Center in connection with the bid items herein must be in the form of a CERTIFIED CHECK, CASHIER'S CHECK, MONEY ORDER OR BID BOND made payable to the Economic Development Authority in and for the City of Brooklyn Center (EDA). PERSONAL CHECKS ARE NOT ACCEPTABLE. E. AWARD NOTIFICATION 1. Written notification to the successful bidder of the acceptance of such bid will be made by the Brooklyn Center EDA within 10 calendar days after the opening of bids. In the event that the successful bidder fails or refuses to enter into a Contract, the EDA reserves the right to award the contract to the next responsible bidder. 2. Failure on the part of the successful bidder to furnish the required Performance Surety within 10 days after the issuance of Notice of Award shall be considered proof that the successful bidder has elected to abandon the purchase and /or forfeit the bid security, not as a penalty, but as liquidated damages sustained by the Brooklyn Center EDA as a result of such failure. F. RETURN OF BID SECURITY All bid securities except those of the two highest purchase bidders or the lowest demolition bidders will be returned within five calendar days after the date of the opening of bids'. The bid security of the second high bidder will be • returned within 30 calendar days after the bid opening. The bid security of the successful bidder, if not used in part payment of the sale price, will be returned upon the posting of the required performance surety and the full payment of the sale price. 3. BID ACCEPTANCE The contract will be awarded to the highest responsible bidder if a purchase item or to the lowest responsible bidder if a demolition item for each item in the Proposal. The EDA, however, reserves the right to accept or reject any or all bids, waive informalities therein and generally award contracts to the highest responsible bidder for purchase and to the lowest responsible bidder for demolition based on each item in the proposal as is determined to be in the best interest of the EDA. Bids made in pencil will be rejected. Proposals may be withdrawn any time previous to the hour of opening bids, but no Proposal may be withdrawn for a period of thirty (30) days after the time indicated for the opening of bids in the Advertisement for Bids. A. Post Bid Information - Qualifications of Bidders The successful bidder may need to submit the following bidder's qualification statement which will include the following: • 1. To demonstrate his /her qualifications for the project, each bidder must submit written evidence that the bidder involved: a. Maintains a permanent place of business. b. Has adequate equipment to do the work properly and expeditiously. C. A financial statement or letter of credit from a financial institution showing the bidder has financial resources to meet all obligations stated herein. d. A statement declaring that the contractor is licensed in the State of Minnesota as required for demolition work. 2. Experience - Name and location of at least three (3) projects of twenty thousand ($20,000) or greater in the last five years. Project references shall be accompanied b the name address and telephone number of P Y � P the purchaser of the services. At least two (2) of the above type projects referenced shall have included municipal or public projects. 4. FOLLOWING AWARD NOTIFICATION A. After award notification the successful bidder shall submit the full amount of the bid as well as the PERFORMANCE SURETY, as noted in the advertisement for bids. The amount of the Performance Surety shall be 100% of the amount of the bid and will be held on deposit by the Brooklyn Center EDA to ensure proper completion of the terms of the bid contract according to the Bidding Instructions and Specifications. B. A Bill of Sale will be delivered to the successful bidder for each bid item after the receipt of (a) the full amount of the bid, (b) the performance surety, (c) the certificate of insurance, and (d) a copy of the Building Removal Permit from the City of Brooklyn Center Community Development Department. There will be no fee for the City permit. However, the successful bidder shall pay the State surcharge, if any. C. The successful bidder shall give 48 hours notice to the Community Development Director or his designated representative before the structure is to be removed. D. No bids item shall be sold, transferred, or conveyed to a third party prior to receipt of a Bill of Sale. Any assignment of the successful bidder's interest in a bid item at any time during the Contract shall not relieve him of the responsibilities thereof. E. Following the removal of salvage of structures, successful bidder must notify -4- • the Community Development Director or his designated representative so that acknowledgement of satisfactory completion may be noted through the release of the bidder's performance surety. 5. GENERAL SPECIFICATIONS A. The successful bidder shall furnish all labor, material and equipment and shall perform all services and work required to purchase, move, demolish or salvage the listed structures in strict accordance with these specifications and in accordance with the state and local ordinances pertaining to the moving and salvaging of buildings and structures. B. No oral interpretation of information shall be given to any bidder, and any request for such shall be made in writing and addressed to Tom Bublitz, Community Development Specialist, City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. C. IT IS EXPRESSLY UNDERSTOOD AND AGREED TO BY THE BIDDER THAT RIGHT AND TITLE IN THE STRUCTURE WHICH MAY BE PURCHASED BY HIM DOES NOT CREATE ANY RIGHT OR TITLE TO LAND OR PREMISES UPON WHICH THE BUILDINGS AND STRUCTURES ARE NOW LOCATED. 6. DETAILED SPECIFICATIONS A. PERMITS AND /OR LICENSES All bidders contemplating the wrecking, salvaging or removing of buildings over a trunk highway, city street, county or township road shall ascertain in advance the conditions under which a permit for such wrecking or moving will be granted by the appropriate authority. Traffic shall not be obstructed unless under permit of the proper authority. THE SUCCESSFUL BIDDER SHALL, AT HIS OWN EXPENSE, OBTAIN ALL REQUIRED LICENSES AND PERMITS. B. CONDITION OF PREMISES 1. The City of Brooklyn Center assumes no responsibility for the condition of the buildings and structures in this contract, nor their continuance in the existing condition after the delivery by the City of Brooklyn Center of a Bill of Sale. All damage or loss by reason of fire, theft or other casualties to the buildings and structures in this contract and purchased by the bidder shall be at the risk of the bidder, i -5- ® and no damage or loss shall relieve the successful bidder from any obligations under his bid following the delivery of a Bill of Sale. 2. All items left in or on the premises, whether deemed of value or trash, shall be removed by the bidder and shall not be stored, buried, or burned on the site. The are must be clean subject to inspection by the Community Development Director or his designated representative from the City of Brooklyn Center. The successful bidder will assume responsibility for removing the contents of all structures that are awarded to him. 3. The successful bidder, as a function of: a. Moving a structure, shall remove all partitions, wood, piping, concrete foundations, concrete slabs, concrete walls (structural concrete and block) and debris from the basement. The basement shall be filled with a granular material containing no rock in excess of 1 1 /2" to the existing ground and covered with 4" of topsoil and seeded with MNDOT mixture 500. b. Demolishing of a structure shall remove all partitions, wood, piping, concrete foundations, concrete slabs, concrete walls • (structural and block) and debris from the basement. C. Either a move or demolition shall remove all accessory buildings, sheds or other above ground structures, concrete steps, slabs, sidewalks and any concrete or bituminous driveway or parking lot pavement and dead trees. Any structures that leave a depression of greater than 1 foot shall be granular filled, topsoil and seeded as per "a." above. 4. The successful bidder shall: a. Affect only those trees and shrubs so designated for trimming or removal, to accomplish the removal of the structure as marked by the EDA. Trees affected by trimming shall be painted with an acceptable tree sealing paint. All stumps shall be cut flush with ground level and all wood removed from the site, and all costs of same shall be borne by the successful bidder. The bidder shall be assessed damages for any unauthorized removals, based on a rate of S 150 per tree removal in excess of 4". Before final acceptance of the site, the successful bidder shall remove all surplus and discarded materials, equipment and -6- • rubbish; and all parts of the work site shall be left in a condition acceptable to the EDA. b. When earthwork has been performed on the removal site, the successful bidder shall restore at the direction of the Community Development Director or his designated representative those areas that have been altered, such as cut banks or ruts. The sites shall be left smooth. C. Before any work so indicated in a and b above is started, contact must be made by the successful bidder with the City for approval of the anticipated work and successful bidder must indicate his plan for removal indicating the scope of work and removal route. d. The bidder will be responsible for maintenance of the entire property, including but not limited to litter /debris pickup, grass mowing, weed removal, trimming of storm damaged trees, for the entire duration of the contract, on each item until released by the City. Failure of the successful bidder to maintain the entire property in a satisfactory condition shall be cause for City forces to perform said maintenance; the cost of which shall be billed to the bidder. 5. The successful bidder shall provide and maintain all proper or necessary signs and lights as safeguards to the public and of the elimination of all hazards. This includes the correct and effective placement of snow fence, or similar barrier, around the exposed basement immediately upon lifting house off of foundation and until the basement is backfilled. A. No structure shall be lifted from its foundation until evidence has been presented to the City that all appropriate permits, licenses, etc., have been obtained. It is explicitly stated and hereby made a condition of the contract that structures shall not be left "jacked -up" off of their foundations and unremoved from the site for a period exceeding five (5) calendar days. Failure of the successful bidder to remove "lifted" structures within five days shall be considered in default of the contract. Only the permitting authority for moving of structures shall be deemed acceptable for an extension. 6. WATER AND SANITARY SEWER DISCONNECTION SHALL BE CONTRACTED BY THE EDA SEPARATE FROM THIS CONTRACT. -7- 7. Termination of gas, electric, telephone or cable service shall be completed by or supervised by the utility company or unit owning the service. The successful bidder shall also secure the necessary permits for such work from the proper authority. Electric, telephone, cable television, and other wires shall be disconnected in strict accordance with the rules and regulations of the utility and city ordinances. All expenses arising from or in conjunction with the performance of the provisions of this paragraph shall be borne by the successful bidder. All utility terminations shall be completed and shall be approved by the owner prior to issuance of a demolition permit by the city. A. Prior to any removal or demolition work or the start of any excavation work, contractor to call for and locate all underground utilities and have each disconnected at property lines. B. Insurance Requirement A SAMPLE CERTIFICATE OF INSURANCE IS ATTACHED Prior to the issuance of a bill of sale, certificates of all insurance required on a form (ACORD) approved by the City, signed by an authorized representative of the insurance carrier and stating that all provisions of the specified requirements are satisfied. The certificates shall be submitted directly to the Community Development Director for review and approval by the City Attorney. The bidder shall not begin any work until the City has reviewed and approved the insurance certificates. The notice to proceed that is issued shall be subject to such approval by the City. 1. LIABILITY INSURANCE a. Required insurance and amounts as follows: i. Commercial General Liability including the following: Premises /Operations Coverage, Products /Completed Operations, Independent Contractors Liability, Contractual Liability Coverage, to comply with Indemnification Agreement O Limits of Liability shall not be less than: -8- $2,000,000. Each Occurrence $2,000,000. General Aggregate $2,000,000. Products /Completed Operations Aggregate Combined Single Limits for Bodily Injury and Property Damage Liability ii. Business Automobile including the following: All Owned Automobiles, Hired Automobiles, Employer's Non Ownership Liability Limits of Liability shall not be less than: $2,000,000. Each Occurrence Combined Single Limits for Bodily Injury or Property Damage Liability, or the equivalent. iii. Worker's Compensation Insurance and Employer's Liability • Limits of Liability shall not be less than: Coverage A,: Statutory Coverage B,: Bodily Injury by Accident $100,000 Each Accident Bodily Injury by Disease $100,000 Each Person $500,000 Policy Limit b. The policy shall be a standard form policy provided for by a carrier approved by the State of Minnesota and shall not contain any exclusions that will restrict coverage on any operations performed by this contractor or any subcontractor thereof. C. The policy or policies shall afford Contractual Liability coverage to provide coverage for the Indemnification Agreement. • -9- 0 d. It is a condition of the Contract that the policy or policies waive any or all governmental immunity as a defense in any action brought against the insured or any other party to the contract, up to policy limits. e. The policy shall further provide insurance to cover all of the successful bidder's operating exposures and the operation of vehicles. f. Approval of the insurance by the EDA shall not in any way relieve or decrease the liability of the successful bidder hereunder, and it is expressly understood that the EDA does not in any way represent that the above specified insurance or limits of liability are sufficient or adequate to protect the successful bidder's interest or liabilities. g. In the event of cancellation of any of the policies, the company issuing the Certificate of Insurance shall provide 30 days written notice to the EDA. Failure to do so shall impose obligation and /or liability upon the issuing company. Certificate of Insurance forms shall be drafted or altered to reflect these conditions. 2. Property Insurance, Builder's Risk The contractor shall procure and shall maintain such insurance for and in behalf of the contractor, the Brooklyn Center EDA, the City of Brooklyn Center, all subcontractors as joint insureds; all as their interest may appear. The insurance shall cover the insurable value of the contract, together with all materials located at a job site during the entire period of the construction, and until said project is accepted in writing by the Brooklyn Center EDA. The insurance shall be of a type known as "Builder's Risk" on a complete value form and shall insure against the perils of "all risk ". 3. DEDUCTIBLES All responsibility for payment of sums resulting from any -10- deductible provision, corridor, or self - insured retention • conditions of the policy or policies shall remain with the Contractor. 4. ERRORS AND OMISSIONS Any insurance agent that provides coverage for this contract shall have in force Errors and Omission coverage with limits of not less than $1,000,000 occurrence and $1,000,000 aggregate. 5. INDEMNIFICATION The successful bidder shall indemnify and hold harmless the EDA and City of Brooklyn Center, its elected officials, commissioners either elected or appointed, officers, agents and /or employees from and against all claims, damages, losses or expenses, including attorney fees, for which they may be held liable, arising out of or resulting from the assertion against them of any claims, debts or obligations resulting from or arising out of directly or indirectly, the performance of this Agreement ® by the contractor, his employees, agents or subcontractors. D. WAIVER OF CLAIMS AND RIGHTS OF LIENS Work for removing or salvaging the building or structure shall be carried on in a manner that will not result in damage to any other structures, shrubs, trees or sod. The bidder agrees to be solely liable for and to save the Brooklyn Center EDA and City of Brooklyn Center harmless from any and all liability which may arise by reasons of any act or conduct of the bidder, his agent or employees while engaged in the execution of the agreement. I The bidder also agrees to waive all claims and rights of lien against the Brooklyn Center EDA and the premises on which the structure or buildings now stand for all labor, skill, machinery and materials used and furnished by the buyer, his agent, employees or subcontractors. -11- • E. COMPLETION DATE 1. The successful bidder shall complete the removal or salvage of the buildings or structures and complete all backfill placement on or before November 20, 1995. Unless a written time extension has been granted by the Community Development Director beyond the specified date, the successful bidder shall be considered to be in default. At such time the City of Brooklyn Center may repossess the structures and retain the performance surety and purchase monies, not as a penalty but as liquidated damages. Should the purchasers wish to redeem the defaulted structure, he may do so within 30 days of the specified removal date, by the payment of liquidated damages to the City of Brooklyn Center for each day after the completion date, until removal of the subject structure is completed. These liquidated damages shall be as follows: $30.00 per calendar day, regardless of purchase price. • At the time these liquidated damages are paid to the City of Brooklyn Center and all other provisions of the specifications are met, the City of Brooklyn Center will release the performance surety to the purchaser. 2. Supervision of the work shall be performed by the City of Brooklyn Center through its Community Development Director or his duly authorized representative and performance of the obligations of the successful bidder is subject to the acceptance of the work by the City of Brooklyn Center. F. FAILURE TO PERFORM In the event the Community Development Director determines that any of the provisions of the Bidding Instructions and Specifications have not been complied with by the successful bidder, the Community Development Director may declare the bidder in default and give the bidder written notice demanding that the defaults be corrected by a time to be specified in such notice. If the successful bidder does not correct the defaults within the time specified, the Community Development Director -12- • may consider all property, materials and equipment remaining on the building site to have been abandoned by the bidder for the Brooklyn Center EDA to dispose of as it sees fit; may take over the work and prosecute the same to completion; and the bidder shall be liable to the Brooklyn Center EDA for any and all costs incurred by the Brooklyn Center EDA as a result of the bidder's default. If the performance surety is inadequate to cover such costs, the bidder shall remain liable to the Brooklyn Center EDA for the excess. In addition, the full sale price or payment price will under all circumstances be retained by the City of Brooklyn Center. G. ASBESTOS SURVEY An asbestos survey will be undertaken by the Brooklyn Center EDA if the property is to be demolished. If asbestos abatement is required, the City shall contract this service prior to issuing a permit for demolition. • -13- e PROPOSAL FOR RESIDENTIAL STRUCTURE REMOVAL AT 6637 HUMBOLDT AVENUE NORTH, BROOKLYN CENTER, MINNESOTA BIDDER: ADDRESS: ZIP TELEPHONE: BIDS TO BE OPENED AT 11:00 A.M. ON OCTOBER 3, 1995 Economic Development Authority Board of Commissioners 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 Commissioners: The undersigned, as Bidder, having examined the site and having studied the Contract Documents for the Work and being familiar with all factors and conditions affecting the Work and cost thereof, hereby proposes and agrees to enter into a Contract with the Economic Development Authority in and for the City of Brooklyn Center (EDA) to supply all labor, equipment, tools, materials, and skills necessary for the following work, all in accordance with the Contract Documents and any subsequent addenda issued thereto: RESIDENTIAL STRUCTURE REMOVAL AT 6637 HUMBOLDT' AVENUE NORTH BROOKLYN CENTER, MINNESOTA The undersigned Bidder understands the quantities of Work as shown herein are approximate only and are subject to increase or decrease, and proposes to do the Work whether the quantities are increased or decreased, at the unit price stated in the following Schedule of Prices and the unit rice as bid shall constitute compensation in full for the respective items. P P P • -14- • RESIDENTIAL STRUCTURE REMOVAL FOR 6637 HUMBOLDT AVENUE NORTH Bid Bid Item Address Description Quantit Unit 1. 6637 Humboldt Avenue North THE STRUCTURES MUST BE COMPLETELY REMOVED ON OR BEFORE In response to the terms herein specified, the undersigned, if award is tendered, agrees to be compensated for the removal of the items of property on the Bid Proposal Form, at the bid price quoted opposite each item. The undersigned agrees as follows: 1. To perform the demolition and removal for indicated price. 2. Within ten (10) calendar days after Award of Contract to execute a Contract for the work involved, and to furnish the Brooklyn Center EDA a satisfactory Performance Surety as stated in Item 4 of Instructions to Bidders. 3. That this Proposal cannot be withdrawn for a period of thirty (30) days after the date and time scheduled for the opening of bids. 4. That the Brooklyn Center EDA reserves the right to reject any and all bids, to waive irregularities and informalities therein and further reserves the right to award the Contract in the best interests of the Brooklyn Center EDA. In guarantee of sincerity of purpose in entering this bid, the undersigned encloses a certified check, a cashier's check, or a bid bond, in an amount of five hundred dollars, made payable to the Brooklyn Center EDA. It is agreed that this amount is subject to forfeiture to the OWNER in the event the undersigned fails to execute the prescribed Contract and submit the required Performance Bond, and Insurance Certificates to the OWNER within ten (10) calendar days after issuance of Notice of Contract Award. This is to acknowledge receipt of addenda numbered , and • -15- • IF AN INDIVIDUAL, PARTNERSHIP, OR NON - INCORPORATED ORGANIZATION: Respectfully Submitted, By: (Signature of Bidder) Title: Name and Address of Bidder: (Name) (Address) (City and State) Names and Addresses of Firm Members: • IF A CORPORATION: Respectfully submitted, By: (Signature of Bidder) Title: • -16- • Name and Address of Bidder: (Name) (Address) (City and State) Incorporated under the laws of the State of President: (Name) (Address) Secretary: (Name) (Address) Treasurer: • (Name) (Address) • -17- • AFFIDAVIT OF NON - COLLUSION STATE OF MINNESOTA ) )SS COUNTY OF ) I, , being first duly sworn to depose and say that (your name) I am the authorized representative of (Name of individual, partnership or corporation submitting bid.) and that I have the authority to make this affidavit for and on behalf of said bidder, that I state to the best of my knowledge and belief, that said bidder has not either directly or indirectly entered into any agreement, participated in any collusion or otherwise taken any action in restraint of free competitive bidding in connection with this proposal or bid submitted on • (Date) That the contents of the bid were not communicated by the bidder or its employees or agents to any person not an employee or agent of the bidder or of the surety furnished with the bid proposal prior' to the official opening of the bid, and that I have fully informed myself regarding the accuracy of the statements made in this affidavit. Signed by bidder or his authorized representative Subscribed and sworn to before me this day of , 19_ (Notary Public) My Commission expires 19_ -18- - SAMPLE-Contracts over S15 U00 Con Cost ACORN) CERTIFICATE OF INSURANCE ISSUE DATE (MWOOTYY) PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CERTIFICATE TH CERTIFICAT' DOES NOT AMEND EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. I COMPANIES AFFORDING COVERAGE COMPANY LETTER A INSURED COMPANY 8 LETTER COMPANY G. LETTER COMPANY D LETTER �..- COMPANY E LETTER iCOVERAGES I THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REOUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS 1 CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. i EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. C0 ;tTR TYPE Of INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION DATE (MMIOD(YY) DATE (MM(OOrM LIMITS 1 GENERAL LIABILITY 1 ' GENERAL AGGREGATE S 2, 0 Q Q, Q Q o COMMERCIAL GENERAL LIABILITY PgOOUCTS•COMP/OP AGG. S 2,000,00() i CLAIMS MADE OCCUR. (specify) X OWNER'$ b CONTRACTOR'S PAOT. PERSONAL 6 AOV. INJURY S X Contractual EACH OCCURRENCE S 2, 000, 00u FIRE DAMAGE (Any one fire) S AUTOMOBILE LIABILITY MED. EXPENSE (Any one peescn) S ANY AUTO COMBINED SINGLE 5 2, QQO, Q(JQ X ALL OWNED AUTOS LIMIT SCHEDULED AUTOS BODILY INJURY S X HIRED AUTOS (Per person) • X NON -OWNEO AUTOS BODILY INJURY (Per accident GARAGE LIABILITY PROPERTY DAMAGE S EXCESS LIABILITY - UMBRELLA FORM e EACH OCCURRENCE S S OTHER THAN UMBRELLA FORM AGGREGATE WORKER'$ COMPENSATION STATUTORY LIMITS AND EACH ACCIDENT s 10 0, 0 0 0 EMPLOYERS' LIABILITY DISEASE —POUCY LIMIT $ 500 EASE —EACH EMPLOYEE S 1 000 OTHER OIS - DESCRIPTION OF OPERATIONS/ LOCATIOHSNEHICLES /SPECIAL ITEMS - .y Policy to include a waiver of any or all Governmental Immunity � List project and work CERTIFICATE HOLDER ? CANCELLATION Economic Development Authority SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE in and for the City of Brooklyn Cent EXPIRA30 OATE IEOF. THE ISSUING COMPANY WILL ERCE77OR 301 Shingle Creek Parkway MAIL OAYS1VRIITEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE Brooklyn Center, MN 55430 LEFT. r rE� TlGTA '�tCtf(LZ'*'�{A��;gp.•E + gL Attention: Community Development CI m1L-,T'-C7r`Nrm& Director AUTHORIZED REPRESENTATIVE AcoRO 21 - 7rgo) _19 J .t= C,Arnan r nnanAer nra tooe Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR STRUCTURE REMOVAL AT 6637 HUMBOLDT AVENUE NORTH WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center purchased the fourplex apartment building located at 6637 Humboldt Avenue North for purposes of redevelopment as part of the EDA's scattered site redevelopment program; and WHEREAS, specifications for removal of the building at 6637 Humboldt Avenue North have been prepared by EDA staff; and WHEREAS, the EDA desires to proceed with the removal of the EDA -owned property at 6637 Humboldt Avenue North. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that: 1. Said plans and specifications for the demolition of 6637 Humboldt Avenue North as prepared by EDA staff are hereby approved. 2. The Deputy City Clerk shall prepare and cause to be inserted in the City's official newspaper an advertisement for bids for the removal of the 6637 Humboldt Avenue North building in accordance with the approved plans and specifications. The advertisement shall be published in accordance with Minnesota Statutes, shall specify the work to be done, and shall state the time and location at which bids will be opened by the Deputy City Clerk and the Community Development Director or their designees. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the EDA on the issue of responsibility. No bids will be considered unless sealed and filed with the Deputy City Clerk and accompanied by cash deposit, cashier's check, bid bond, or certified check made payable to the Brooklyn Center EDA for five hundred dollars ($500.00). 3. All costs related to the 6637 Humboldt Avenue North removal project shall be charged to the Economic Development Authority special operating fund. Date President EDA RESOLUTION NO. The motion for the adoption of the foregoing resolution was duly seconded by commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Council Meeting Date 9 // 1 11 /95 31 City of Brooklyn Center Agenda Item Number 7 is tion: Item Descri Request For Council Consideration P Scattered Site Housing Redevelopment Program and Sale of Lot at 6601 Bryant Avenue North Department Approval: Tom Bu blitz, Community Development Speci Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommendation: Staff recommends soliciting proposals from Howard Bohanon Homes and David Brandvold for th aP P e purchase of 6601 Bryant Avenue North. • Summary Explanation: (supporting documentation attached Yes ) In June of this year, the EDA -owned lots at 6601 Bryant and 5900 Emerson Avenue North were offered for sale. Staff sent out 13 letters to builders and developers working in Brooklyn Center and surrounding suburbs. No responses were received for either of the two lots. One of the builders specifically interested in the lots indicated that the lots were priced too high to make single- family construction profitable. At the July 25, 1995, Council Work Session, the City Council discussed redevelopment of the FDA's scattered site lots. At that time, staff indicated that one of the ways to initiate interest in developing the scattered site lots would be to begin discussions directly with builders capable of building and marketing single- family homes on these lots. After the July 25 meeting, staff began discussions with individuals who had access to single - family builders. One of these individuals was Mr. Bill Kemp with Short Elliot Hendrickson, Inc., a consulting firm that has done as substantial amount of work with the City in the past. Mr. Kemp contacted Scherer Brothers Lumber and requested a recommendation for any builders that could possibly successfully work in the "in -fill" housing market. Scherer Brothers recommended two builders who, in turn, contacted staff. After an initial conversation, one of the builders has not expressed any continued interest in the lots. Mr. Howard Bohanon with Howard Bohanon Homes, however, has had several conversations with staff regarding constructing homes on the EDA lots. • Mr. Bohanon has expressed interest in purchasing the EDA lot at 6601 Bryant Avenue North and constructing a single- family home on the lot. He has indicated he would build the house on a speculative basis this fall so it would be ready for the spring preview of homes in 1996. Additionally, he has expressed an interest in marketing other available EDA lots using the 6601 home as a model. The marketing of the EDA lots would not entail a formal agreement between the EDA and Mr. Request For Council Consideration Page 2 Bohanon, but staff believes marketing the EDA lots in this manner would be advantageous to both the City and the builder. The attached document entitled, Procedures for Submission of Offers and Counteroffers for the Purchase of 6601 Bryant Avenue North, Brooklyn Center, Minnesota" has been used in the past for the acceptance of offers and staff recommends it be used for the acceptance of offers for 6601 Bryant Avenue North. Mr. Bohanon has constructed a number of homes in Brooklyn Park. Staff has been able to contact one of the building inspectors in Brooklyn Park who has given a positive report on Mr. Bohanon's home construction in Brooklyn Park. Additionally, I, along with Building Official Clay Larson and Building Inspector Dave Fisher, did a walk - through of one of Mr. Bohanon's model homes in Brooklyn Park and both inspectors found the workmanship and finish work in the home to be of good quality. The proposed time line for the sale of 6601 Bryant Avenue North is shown by the following: • Offers /proposals for the purchase of 6601 Bryant reviewed by the EDA on September 25, 1995. If an offer is accepted, the EDA would then seta public hearing on the terms and P � P g conditions of the sale of the property as required by state law. • The EDA would hold a public hearing on the terms and conditions of the sale of the 6601 Bryant property on October 23, 1995, and at that time a purchase agreement and contract for deed would be presented to the EDA for their approval. • • After the October 23 meeting, and approval of the purchase agreement and contract for deed, a closing on the property would be set up as soon as possible thereafter. Since other builders previously contacted expressed no interest in the purchase of EDA lots, I am not recommending soliciting these contractors again. The only contractors that appear to be interested in the 6601 Bryant Avenue lot are Mr. Howard Bohanon and Mr. David Brandvold. Mr. Brandvold declined to make an offer on the previous sale of the lots due to the price of the lots. Mr. Bohanon has also expressed a concern that the $24,000 price on the 6601 Bryant Avenue North lot is a bit high for the market. The data we have with regard to lot values shows that the $24,000 value is probably close to being in line with the market; however, given the fact that the builder would be constructing a house on a speculative basis, I would recommend that we consider lowering the lot value to $22,000 in light of the risk of constructing a spec house on the property. Also, since we initially offered the lot to Mr. Brandvold at $24,000, I would recommend that we offer the same proposal to Mr. Brandvold as we offered to Mr. Bohanon. Also enclosed with this request form is a drawing and floor plan of the home Mr. Bohanon is considering for the 6601 Bryant lot. Staff will be prepared to discuss this item in more detail at Monday's meeting. • Procedures for Submission of Offers and Counteroffers for the Sale of 6601 Bryant Avenue North, Brooklyn Center, Minnesota 1. The Brooklyn Center Economic Development Authority in and for the City of Brooklyn Center (EDA) is accepting offers for the purchase of certain real property described in the attached notice. 2. Offers must be submitted in writing pursuant to the attached notice. As specified in the attached notice, all offers must include an architectural rendering (elevation) of the single- family home proposed for the lot. The drawings should include front, rear, and side elevations of the proposed home, and specify the square footage of the home. Submissions must include a description of landscaping to be provided and must specify type of exterior materials for siding, soffit, doors and windows. 3. Persons submitting offers can examine and review all offers submitted and revise their offers until the date and time specified in the attached notice. The EDA reserves the right to accept or reject any and all offers. 4. Prior to the sale of the property to the Buyer, the EDA (Seller) shall approve the terms of the purchase agreement and contract for deed for the property. The Seller will hold a public hearing on the terms and conditions of the proposed sale pursuant to Minnesota Statutes, Section 469.029, Subdivision 2. 5. As p art of the conditions of the purchase agreement and contract for deed and prior to construction of any improvements on the property, Buyer shall submit to Seller a design proposal for such improvements for approval by the Seller. Seller shall approve construction of such improvements only upon a determination, in the absolute and sole discretion of the Seller, that the public interests would be served by construction of such improvements. No improvements shall be constructed on the property which are not consistent with such approved design proposal. 6. The Buyer will not be required to pay the Sewer Availability Charge (SAC) for development of this property. City of Brooklyn Center EDA Single- Family Lot for Sale The Economic Development Authority (EDA), in and for the City of Brooklyn Center, will accept written offers for one single - family lot located at 6601 Bryant Avenue North. The legal description is as follows: That part of Lot 43 lying easterly of a line running from a point in the north line thereof, distance 163.3 feet west from the northeast corner thereof, to a point in the south line thereof, distance 163.28 west from the southeast corner thereof except street, Lot 43, Auditor's Subdivision 310 to Hennepin County The EDA reserves the right to accept or reject any offer. The minimum offer to be considered is $22,000. The lot is zoned single - family Rl. Offers will be accepted for new, single- family home construction only. All offers must include building plans, including elevations, of the single- family home proposed for the lot. Submit offers to the Brooklyn Center Economic Development Authority, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. Offers and counteroffers will be considered until 2 p.m. on September 19, 1995. For further information, contact Tom Bublitz at 569 -3433. •z: , _s,.„r � E ,� � w � � - � �' a• ► .� • 0 / 1 \ 1 i F 1 f t . r%\ (� •� � •\ .r' �•`" t �: ".3,. -Zc '1"'�'� r '" (1 � t � mi f 1� 1� ��1 1 � ^ �,� �\ t ,I, '•, {♦ .�� �- •� y� Y«- as••'�r.`,"� `•� ( 11 f it 1 •�. 1 1 � 1' �, • �.�♦�P\ • ( p� 1� ��\ ... �� - :�. � tl 1 � \ •,t` ��` �' %• i' \� 1 %.�: t� � «�`, `�. �a� �� = . �• ��" Nnr� uttutt� ,tutc nat�semmuwont�tt -��•� ���� �' ��� : "� - Ilnnunnn■■nu�q BWy � _ 1' l• � t i Ifr • _ —��� `I /. - d� -- � "'Weed.. tuna �= . II:d11111114Wi WHIM BEE O R ```��`' T 1� III; �= ...� = = � = .m �- �.■i'� ■11111,. / /:��� •��ME -• •ems • Master .�� -• •• •.• Bedroom E►�!� A wl: ■ I / • = SW /■ Room 4th Level Opt Foyer Kitchen — 1 t � • - - - Garage i i 'g Council b1ceting Date 9111195 31 City of Brooklyn Center Agenda Item Number Request For Council Consideration • Item Description: Staff Report on 6645 Bryant Avenue North Department Approval: Tom B Litz, Community Development S ecia Manager's Review /Recommendation: No comments to supplement this report Comments below /attached Recommendation: Summary Explanation: (supporting documentation attached Yes ) • Approximately 18 months ago, the single-family property located at 6645 Bryant Avenue North became b YP ro P vacant and was sold in a foreclosure sale by the Department of Housing and Urban Development (HUD). The property is again vacant and is in the process of foreclosure. At the present time, Twin City Federal holds the mortgage on the property and has started the foreclosure process. Normally, there is a six month redemption period on foreclosures at which time the purchaser can redeem the mortgage on the property and take it out of the foreclosure process. Because the property is vacant and the bank was able to get an "Affidavit of Vacancy" when the City posted it for lack of water service, the redemption period has been reduced to five weeks. After the five week redemption period is over and the owner has not redeemed the property, it is my understanding from talking to a representative of Twin City Federal that the EDA would then have a 30 day time period to purchase the property before it goes back to HUD since it is an FHA insured mortgage. As an FHA insured mortgage, Twin City Federal will not sell the property for anything less than the mortgage amount since they will receive that amount from HUD. At the present time, the TCF representative could not legally disclose the mortgage amount; however, the last sale of the property, according to our assessing records, was at $45,000. The City's current assessed value of the property is $65,300. The reason for the large discrepancy between the last purchase price and the City's assessed value is that the assessing staff has been unable to get access to the property for an evaluation since 1989, and since foreclosure sales are considered distressed property sales they are not used to • value property. V Included with this memorandum is a report from the City's building official with regard to the condition of the house. The building official was able to view the interior of the property with an agent of Twin City Federal assigned to maintain the property. The building official's report is included with this request form and as he has noted, the interior of the property does not appear to warrant rehabilitation Request For Council Consideration Page 2 of the property but would suggest that this property is a candidate for demolition and removal from the • neighborhood. If the EDA is interested in acquiring this property for demolition and removal and potential redevelopment, staff will monitor the status of the property and come back to the EDA as soon as property becomes available and a purchase price is known. Staff will have photos of the property's exterior available for Monday's meeting. • MEMORANDUM TO: Tom Bublitz FROM: Clay Larson, Building Official DATE: 6 SEPT 95 RE: 6645 Bryant Ave N I have visited the referenced premises and in my opinion it is a poor candidate for rehab. The cost of interior repair plus bringing the exterior up to neighborhood standards I would estimate in the $30,000 to $35,000 range. The following items are noted: - Although the lot is large, 103 x 129, the site suffers from minimal lawn care and no landscaping. - Exterior surfaces of the house need repair and paint. - The roof is a combination of flat and pitched areas. The pitched areas appear to be in poor condition. Windows and doors need replacing. New combination windows and storm doors were installed but have been vandalized. - The plumbing system has been vandalized and heavily damaged. Fixtures are missing. - Basement is wet and mildewed. It is in very poor condition. - The house was full of trash, garbage, and rodents. Most of this has been cleaned up. Council Meeting Dace X 9 // 11/95 City of Brooklyn Center Agenda Item Number Request For Council Consideration Item Description: 1996 City Manager's Preliminary E.D.A. Budget and Preliminary E.D.A. Property Tax Levy Department Approval: Brad Hoffman, Community De velopm Dir r Z2 je Manager's Review /Recommendation: , No comments to supplement this report Comments below /attached Recommended City Council Action: I recommend your favorable consideration of the attached resolutions establishing the E.D.A.'s preliminary budget and preliminary property tax levy. • Summary Explanation: (supporting documentation attached ) The E.D.A. is limited by state law to a property tax levy of no more than 0.01813% of the City's taxable market value. For 1996, we recommend levying the maximum which will raise $177,220 less $5,317 for the 3 % estimated uncollectible allowance, for a net revenue of $171,903. The E.D.A. will also receive a variety of other revenues as shown on the attached budget resolution. The E.D.A. is the City's primary vehicle for carrying out housing programs and economic redevelopment. • Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING THE PRELIMINARY BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1996 PURSUANT TO MSA CHAPTER 469.107 SUBDIVISION 1 WHEREAS, the Brooklyn Center Economic Development Authority has considered the preliminary budget and finds that this budget is necessary for the operation of the Brooklyn Center Economic Development Authority during the year 1996. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority for the City of Brooklyn Center that the budget of the Economic Development Authority for said City shall be: 1. APPROPRIATIONS: Administration $152,087 Redevelopment 396,876 Rehab of Private Property 100,777 Special Studies / Projects 34,306 TOTAL APPROPRIATIONS $684,046 2. ESTIMATED REVENUES: General Property Taxes $171,903 Intergovernmental Revenue CDBG 270,083 Investment Earnings 105,000 Transfer from H.R.A. Fund 137,060 TOTAL REVENUE BY SOURCE $684,046 BE IT FURTHER RESOLVED that a copy of this resolution be submitted to the City Council of the City of Brooklyn Center. Date President RESOLUTION NO. The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. I 7 1 Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION REQUESTING THE CITY OF BROOKLYN CENTER TO LEVY TAXES FOR THE BENEFIT OF THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY FOR THE YEAR 1996 WHEREAS, Minnesota statutes currently require certification of a preliminary tax levy to the Hennepin County Auditor on or before September 15, 1995 and a final tax levy on or before December 28, 1995. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center as follows: Section 1: That the Economic Development Authority requests the City of Brooklyn Center to levy a property tax for the benefit of the Economic Development Authority, for the year 1996 at a rate not to exceed 0.01813% of taxable property, real and personal, situated within the corporate limits of the City of Brooklyn Center, Minnesota and not exempted by the Constitution of the State of Minnesota or the valid laws of the State of Minnesota, for the purpose of maintaining the E.D.A. Special Operating Fund pursuant to MSA Chapter 469.107, Subdivision 1. Section 2: The City of Brooklyn Center will include the Economic Development Authority's tax levy in the City of Brooklyn Center's preliminary tax levy to the Hennepin County Auditor on or before September 15, 1995, and a final tax levy on or before December 28, 1995. Date President The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted.