7.4. HRSR 07-06-2020 - Laserfiche WebLink

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��i City of Elk ' Request for Action River To Item Number Housing and Redevelopment Authority 7.4 Agenda Section Meeting Date Prepared by General BusinessJuly 6, 2020 Amanda Othoudt,EDD Item Description Reviewed by Main Street and Gates Redevelopment Project— Cal Portner, City Administrator Award Demolition Contract Reviewed by Action Requested Authorize,by motion,the executive director to engage in a contract for the demolition of buildings located at 326 Gates Avenue NW,and 414, 420, 426 and 430 Main Street NW,in addition to two accessory structures at 406 Main and 419 3rd Ave NW with [the chosen contractor] in an amount not to exceed $ and authorize the executive director and the chair to execute the contract in a form acceptable to the HRA attorney, the chair and the executive director. Authorize,by motion,the executive director to engage in a contract with Techtron Engineering, Inc. Environmental Solutions for pre-demolition asbestos testing of buildings located at 414, 430, 420 Main Street NW, and 326 Gates Ave NW in an amount not to exceed $2,600 and authorize the executive director and the chair to execute the contract in a form acceptable to the HRA attorney,the chair and the executive director. Background/Discussion At their October 7, 2019, meeting,the HRA and the City Council adopted resolutions designating 326 Gates Ave NW, 414, 426 and 430 Main Street NW as structurally substandard prior to demolition or removed to create a redevelopment or renewal and renovation Tax Increment Financing (TIF) district based on the TIF Analysis Findings dated September 6, 2019, completed by LHB, Inc. The HRA engaged LHB,Inc. to conduct an inspection on two additional properties acquired by the HRA to determine if the proposed district meets the requirements. On June 1, 2020,LHB found 406 Main St NW to be structurally substandard under the definition set forth in the Minnesota Statutes, Sections 469.174 to 469.1794. On June 1, 2020, the HRA authorized staff to negotiate a contract with a demolition contractor and bring it to the commission for final action. Staff received demo estimates from three companies to demo for five of the seven properties. Otting House Movers,LLC is seeking to purchase and remove the remaining two properties. Pre-demolition asbestos testing must be completed prior to demolition. Techtron Engineering has provided an estimate to identify asbestos containing materials at each site. The HRA will realize a cost savings by having asbestos inspections done separate from the demolition contract. Financial Impact The estimated project budget is $1,300,000 which includes acquisition,insurance,maintenance, appraisal, and demolition costs. The HRA will utilize reserve funds for the purchase and demolition of the properties. The Elk River Vision A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional p D W E H E D D Y service, and community engagement that encourages and inspires prosperity ,g /` UR