03-06-2023 HRA MIN - Laserfiche WebLink

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Housing and Redevelopment Minutes Page 2 March 6, 2023 ----------------------------- 6.1 HRA Housing Rehabilitation Loan Update Mr. Mollan presented the staff report. He noted 9 additional contacts regarding the loan program resulting from the ERMU mailer, which generated 3 new loan applications in process. He stated one loan was supposed to close but the applicant withdrew due to "too much paperwork" and will complete the rehabilitation project with savings. The HRA asked Mr. Mollan to reach out to CEE for feedback and loan document information regarding the withdrawal. 6.2 Demolition Contract for 724 Main Street Mr. O'Neil presented the staff report. He indicated for the past 3-4 weeks they have been working with the low bidder Veit to initiate demolition work for the building at 724 Main Street. Veit further investigated the site to inspect the property and clarify areas of their $64,500 bid and due to the age of the building and the unknown conditions that may come up during the demolition process, they may experience things requiring change orders and/or separate contracts. He noted that written documentation will clarify the demolition work to be completed. Mr. O'Neil stated they learned the water turnoff is broken and an alternative is to leave the_ south foundation wall in place, which has the advantage of shoring up that side of the building, and no sidewalk pavers would be removed allowing for a smooth property line connection. Additional items have been discovered such as an irrigation junction box which�� l) is 10 inches from the edge of the building and will work with the water contractor. Approval of the contract tonight should include the possibility of a few add -on costs that may arise during the demolition process. Commissioner Cannon asked if he felt the bid amount and $20,000 stated in the staff report would be sufficient. Mr. O'Neil felt comfortable that it would be under but is working with unknowns. Commissioner Ovall stated he was surprised that demolitions costs for this project are so high, comparing it to previous demolition costs. He noted this is three times that amount and is having a hard time reconciling these costs. Mr. O'Neil stated the demolition costs were indeed higher than he was anticipating and explained some reasons for the cost: the building is quite a bit larger than a residential home, with 3200 square feet of materials, with 10-12 inches walls of concrete and hard materials and require addition hauling costs for the extra material. Some material contains asbestos, some of which will be mitigated prior to demo, and a large portion of asbestos containing materials requires a special haul to the Becker landfill. Commissioner Ovall commented when considering future property acquisitions to get more accurate demolition costs before committing. He didn't like to spend that much money on this project, noting these costs were really surprising. 01