07-09-1990 EDA MIN - Laserfiche WebLink

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Economic Development Minutes July 9, 1990 Page 2 . COMMISSIONER GONGOLL MOVED TO AUTHORIZE THE CITY TO FINALIZE THE TAX INCREMENT FINANCING PLAN FOR THE DENTAL CLINIC, TO NOTIFY THE COUNTY AND SCHOOL DISTRICT SO THAT THE THIRTY DAY TIME PERIOD CAN BEGIN, AND TO SET A TIF #8 PUBLIC HEARING DATE FOR AUGUST 13, 1990. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 7-0. 5. Downtown Fire Site Presentation and Discussion/Jim Trucker. Accent Real Estate Company. Ltd. Don Heinzman indicated that Elmer Anderson has requested a transcript of this portion of the EDA meeting due to the fact that he could not attend the meeting because he was hospitalized. . Mr. Trucker addressed the EDA and indicated that he had been requested to provide the City with building options and associated costs regarding the hole in the ground site located at 605 Main Street. Mr. Trucker indicated that he looked at the project as three separate issuesj one being complete construction including three floors and the foundationj another being the foundation costj and the third being the option of filling in the site and terracing it for a park. Mr. Trucker indicated that according to information from a soils report by Braun Engineering, the soil has poor compaction and further that there may be contaminated soil 14.5 to 15 feet below the surface. He indicated that soils information received from a report by Braun Engineering indicated that there was a heavy petroleum odor approximately 14 feet below the existing floor slab in the southeast corner of the hole in the ground site. Mr. Trucker stated that the total cost for the foundation, which would include earth work, concrete, masonry, pre cast and structural steel, would be approximately $182,500. He stated that this would be the cost to get the area ready for building. Mr. Trucker then discussed with the EDA the complete construction of the site which includes three floors and the foundation. He stated that the pricing of the construction part of this project was based on earth work, concrete, masonry, aluminum windows and entrances, drywall, roofing, ceramic tile, etc. He stated that he based the price on a tenant being able to move into the building and that the cost for this construction would be about $1,050,000. Mr. Trucker then discussed with the EDA the cost involved to make the area into a park. He stated that based on his best estimate of earth work, concrete, and utility cutoffs, the total cost for making the site into a park area would be approximately $103,000. . The EDA discussed the fact that prior to anything being done, soil correction work may have to be completed. The EDA discussed who the responsibili ty would fall on regarding the contaminated soil. Mike Mulrooney stated that the value of the property will be affected by the contaminants and the soil conditions and the type of building to be buil t on the property. Discussion was held by the EDA regarding the City's responsibility in purchasing the property with the knowledge that the property may be contaminated. Commissioner Kropuenske stated that any loan institution would be very cautious, and perhaps unwilling, to loan money until the contamination is taken care of.