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HomeMy WebLinkAbout2015 09-28 EDAPEDA MEETING City of Brooklyn Center September 28, 2015 AGENDA 1.Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2.Roll Call 3.Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) 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 1. September 14,2015—Regular Session 4.Commission Consideration Items a. Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 5900 Shingle Creek Parkway (Brookdale Square Commercial Center) Requested Commission Action: —Motion to adopt resolution. 5. Adjournment FDA Age ten 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 SEPTEMBER 14, 2015 CITY HALL - COUNCIL CHAMBERS 1.CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 8:41p.m. 2.ROLL CALL President Tim Willson and Commissioners April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were Executive Director Curt Boganey, Finance Director Nate Reinhardt, Public Works Director/City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Planning and Zoning Specialist Tim Benetti, City Attorney Troy Gilchrist, and Denise Bosch, TimeSaver Off Site Secretarial, Inc. 3.APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Ryan moved and Commissioner Myszkowski seconded to approve the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. August 24, 2015 - Regular Session Motion passed unanimously. 4.COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2015-19 CALLING FOR A PUBLIC HEARING REGARDING SALE OF LAND LOCATED AT 5649 BROOKLYN BOULEVARD. Director of Business and Development Gary Eitel introduced the item, discussed the history, and stated the purpose of the proposed resolution. President Willson pointed out that Novak-Fleck, Inc. does plan to build a new home on the site. 09/14/15 -1- DRAFT Mr. Eitel stated that the new home would be sold to someone in the affordable home income bracket. President Willson stated that given what is happening in this general area, he feels this proposal is appropriate. Mr. Boganey stated that the underlying land use is residential according to the Comprehensive Plan. Commissioner Ryan moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2015-19 Calling for a Public Hearing Regarding Sale of Land Located At 5649 Brooklyn Boulevard. Motion passed unanimously. 5. ADJOURNMENT Commissioner Ryan moved and Commissioner Myszkowski seconded adjournment of the Economic Development Authority meeting at 8:50 p.m. Motion passed unanimously. 09/14/15 -2- DRAFT EDA Age iii FDA ITEM MEMORANDUM DATE: September 28, 2015 TO: Curt Boganey, City Manager FROM:. Gary Eitel, Director of Business & Development SUBJECT: Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 5900 Shingle Creek Parkway (Brookdale Square Commercial Center). Recommendation: It is recommended that the Economic Development Authority consider approval/adoption of Resolution Accepting Bid and Awarding Contract for Demolition of EDA Owned Property Located at 5900 Shingle Creek Parkway (Brookdale Square Commercial Center). Background: On November 12, 2013, the EDA adopted Resolution No. 2013-17, which resolution authorized the acquisition of Lot 1, Block 1, Brookdale Square 2' Addition (former Brookdale Square Shopping Center) to facilitate redevelopment opportunities within the Opportunity Site. On December 23, 2013, the closing with Brixmor Properties occurred and the EDA became the owner of this 23.2 acre commercial site containing the 185,885 sf. Brookdale Square Shopping Center, which included the following buildings: o 5900 Shingle Creek Parkway, a 135,949 sf multi-tenant commercial strip center, anchored by Pep Boys Manny, Moe, & Jack of California: a 23,000 sf. anchor tenant with a 20 year lease (1998 —2018) with four, 5 year options remaining; o 5801 John Martin Drive, former Miracle Empowerment Center (aka. Cinema I, II, III), which had a lease through January 31, 2015; o 5800 Shingle Creek Parkway, Ocean Buffet Restaurant (former T. Wrights restaurant), which has a 10 year lease through October, 2021 with one 5 year renewal option; and o 5810 Shingle Creek Parkway, former Brookdale 8 Movie Theater (vacant when acquired). During 2014, the short term leases that Brixmor had with tenants within the Brookdale Square multi-tenant building expired. The EDA retained the consultant services of GES (Groundwater and Environmental Services) to prepare Asbestos and Regulated Materials Reports for the above buildings, with the exception of the Ocean Buffet Restaurant & Pep Boys tenant space; and staff continued to promote the site for mixed use Planned Unit Development with emphasis on market rate apartments. On February 1, 2015, the lease at 5801 John Martin Drive expired. Mission: Ensiiiing an attractive, clean, safe, inclusive community that enhances(lilceS f/ic quality of life for of/people widpresen'es the public trust I ai 7i U V Dk L I kA [I] 1II ,1IJYAI On March 9, 2015, the EDA accepted an investigative report and findings by LHB, Inc. that the buildings within the Brookdale Square property and 5939 John Martin Drive meet the qualifications of blight and code violations that would enable the EDA to establish either a Redevelopment District or a Renewal and Renovation Program for this area. The EDA subsequently adopted EDA Resolution No. 2015-05, a Resolution Designating Buildings as Structurally Substandard (Opportunity Site). On May 26, 2015 the EDA adopted Resolution No. 2015-08, approving a request by Pep Boys to terminate their lease on June 30, 2015. GES (Groundwater and Environmental Services) updated their Asbestos and Regulated Materials Reports to include the former Pep Boys and Weight Watchers tenant spaces. On June 26, 2015, the EDA adopted Resolution No. 2015-11, which accepted a bid and awarded a contract to All Metro Excavating for the demolition of the former Miracle Empowerment Center located at 5801 John Martin Drive. On August 17, 2015, All Metro Excavation completed the demolition of the former Brookdale 8 Movie Theater. August 27' - September the Brookdale Square parking lot was used by Metro Transit as a Park & Ride Site for the State Fair. On September 16, 2015, All Metro Excavating received their Notice to Proceed with the demolition of 5801 John Martin Drive. The contract provides for a completion within 60 days of issuance of the Notice to Proceed. Demolition of 5900 John Martin Drive: On August 13, 2015 and August 20, 2015, notice of demolition bid advertisement were published in the official newspaper which set a mandatory pre-bid meeting date for September 1, 2015, and a bid opening date for September 10, 2015. The pre-bid meeting included 6 contractors which viewed the property and expressed an interest in receiving the bid package. The base bid provided for the demolition of the 133,949 sf. Brookdale Square multi-tenant building and the removal of its foundations and footings with the exception of the western portion of the commercial center previously occupied by Pep Boys and Weight Watchers. The 23,000 sf. leased to Pep Boys included an auto service area with 11 floor lifts. Based on the City's experiences with the demolition of 6121 Brooklyn Boulevard (former Cars With Heart/Chrysler Auto Dealership), it was staffs opinion that bidding this area separately would provide the most competitive bidding process and provide the EDA with the option to delay the removal of this portion of the foundation pending future development for this portion of the project. Mission: Ensuring an attractive, clean, safe, inclusive communit)' that enhances the quality of life for all people and preserves the public trust On September 10, 2015, the following bids were received by the city for the demolition of 5900 Shingle Creek Parkway: • Rachel Contracting $228,662 Bid Alternate #1 $35,181 TOTAL:$263,843 • Veit & Company Inc.$277,669 Bid Alternate #1 $22,669 TOTAL:$300,338 • Carleton Companies $312,000 Bid Alternate #1 $60,000 TOTAL:$372,000 • Carl Bolander & Sons $329,000 Bid Alternate # 1 $20,000 TOTAL:$359,000 • Frattalone Companies $335,600 Bid Alternate #1 $14,000 TOTAL:$349.600 The lowest responsive and responsible bidder has been determined to be Rachel Contracting, providing a base bid of $228,662 and a bid alternate #1 in the amount of $35,181. Rachel Contracting, an experienced demolition contractor, was used by Gatlin Development in 2011 for the removal of the Brookdale Mall for the initial phase of Shingle Creek Crossing and in 2013 for the demolition of the Food Court Building. The EDA has also successfully used Rachel Contracting for the removal of 6121 Brooklyn Boulevard (formerly Cars with Heart! Chrysler Auto Dealership) building and again for the removal of its foundation and footings which included asbestos removal, oil waste traps, floor drains and some contaminated soils. The attached resolution provides for awarding the demolition contract for the base bid and bid alternate No. 1 to Rachel Contracting and authorizing the Executive Director to execute the contract. Budget Issues: The demolition costs for the buildings within Brookdale Square Commercial are being funded from Tax increment District 3. Strategic Priorities: • Targeted Redevelopment Mission: Ensuring an attractive, clean, safe, inclusive conimunitv that enhances the qil(tlltI' of life for all people and preserves the public trust Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR DEMOLITION OF EDA OWNED PROPERTY LOCATED AT 5900 SHINGLE CREEK PARKWAY (Brookdale Square Commercial Center) WHEREAS, on August 13, 2015 and August 20, 2015, notice of demolition bid advertisement were published in the official newspaper which set a mandatory pre-bid meeting date for September 1, 2015 and a bid opening date for September 10, 2015; and WHEREAS, at the September 1, 2015 pre-bid meeting included 6 contractors which viewed the property and expressed an interest in receiving the bid package; and WHEREAS, the base bid provided for the demolition of the 133,949 sf. Brookdale Square multi-tenant building and the removal of its foundations and footings with the exception of the western portion of the commercial center previously occupied by Pep Boys and Weight Watchers; and WHEREAS, the bid alternate #1 separated the removal of the foundation and footings of the 23,000 sf1 leased to Pep Boys, which included an auto service area with 11 floor lifts; and WHEREAS, on September 10, 2015, the following bids for the demolition of 5900 Shingle Creek Parkway were received: Rachel Contracting $228,662 Bid Alternate #1 $355181 TOTAL: $263,843 Veit & Company Inc.$277,669 Bid Alternate #1 $2209 TOTAL: $300,338 Carleton Companies $312,000 Bid Alternate #1 $60,000 TOTAL: $372,000 Carl Bolander & Sons $329,000 Bid Alternate # 1 $20,000 TOTAL: $359,000 Frattalone Companies $335,600 Bid Alternate #1 $14,000 TOTAL: $349.600 WHEREAS, the bids have been reviewed and Rachel Contracting has been determined to have provided the lowest responsive and responsible bid for the demolition of the Brookdale Square Commercial Center located at 5900 Shingle Creek Parkway: NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center. 1. That the EDA Director is hereby authorized and directed to enter into the Contract for Demolition Services with Rachel Contracting for 5900 Shingle Creek Parkway, Brooklyn Center, Minnesota. September _28,_2015 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. -I L I-A 1. 3h, Iz 0 I IN K /LJ L) ' V L] LlPi it 2. L WD • cz *i 1 Ii - 1 LO 5, 66 1 1 le ui TIM E \ J EDA Meeting September 28, 2015 ResolutionAcceptingBidandAwarding  ContractforDemolitionofEDAOwned PropertyLocatedat5900ShingleCreek Parkway(BrookdaleSquareCommercial Center). Southern Southern Area: Area: 47.36 47.36 acres lying north of Bass Lake Road and south of John Martin Drive, anchored by acres lying north of Bass Lake Road and south of John Martin Drive, anchored by the EDA properties (the former Brookdale Square and Brookdale Ford sites)the EDA properties (the former Brookdale Square and Brookdale Ford sites) On September 10, 2015, the following bids were received by the city for the demolition  of 5900 Shingle Creek Parkway: Rachel Contracting$228,662Total: $263,843  Bid Alternate #1$ 35,181 Veit & Company Inc$277,669Total: $300,338  Bid Alternate #1$ 22,669 Carleton Companies$312,000Total: $372,000  Bid Alternate #1$ 60,000 Carl Bolander & Sons$329,000Total: $359,000  Bid Alternate #1$ 20,000 Frattalone Companies$335,600Total: $349,600  Bid Alternate #1$ 14,000 AdoptResolutionAcceptingBidandAwardingContractfor  DemolitionofEDAOwnedPropertyLocatedat5900Shingle CreekParkway(BrookdaleSquareCommercialCenter).