HRA 01/14/1988 - 6515Housing & Redevelopment Authority meeting
January 14, 1988
7:00 p.m.
PUBLIC COPY
City of Fridley
AGENDA
HOUSIlW. & REMMOMENT AUMCRITY MG. '1f MDAY, JANUARY 141 1988 Z: 00 P. M.
Location: Council Chamber (upper level)
CALL TO CEDER:
unr.r. rnr.r. •
APPROVAL OF MINUPES.
Housing & Redevelopment Authority Minutes: December 10, 1987
CONSIDERATION OF LCIJ LUNDGREN' S LETTER OF CREDIT . . . . . . . . . 1 - 1 -C
CONSS IDERAT ION OF CHANGE ORDER NO. 2 ON LAKE PO INTE SOIL
ENGINEERING . . . . .. . . . . . . . . . . . . . . . . 2 - 2 -C
CONSIDERATION OF CHANGE ORDER NO. 4 ON LANDSCAPING,
IRRIGATION & LIGHTING PROJECT AT LAKE POINTE . . . . . . . . . . . 3 - 3-B
CONSIDERATION OF RESOLUTION DESIGNATING OFFICIAL
DERBIMR1ES FOR THE FRIDLEY HRA . . . . . . . . . . . . . 4 - 4 -A
CONSIDERATION OF RECOMMENDATION FOR UNDERGROUND POWER
SERVICE ALCM RICE CREEK ROAD . . . . . . . 5 - 5-B
CLAIM . . . . . . . . .. . . . . . . . . . . . . .. 6 - 6 -H
OTHER BiSIlZSS :
QTY OF FRILLEY
HOUSIlN3. & RELEVELOPMENT AUTHORITY MINUTES, LECENBER 101 1987
Larry Ccumers, Virginia Schnabel, Duane Prairie, John Meyer
HERS ABSENT: Walter Rasmussen 11
OTHERS ENT: Jock Robertson, Executive Director of HRA
Rick Pribyl, Finance Director
Julie Burt, Asst. Finance Officer
Lave Newman, HRA Attorney
Lou & June Lundgren, 343 Kellogg Blvd., St. Paul
Alan Rouse, 1786 Hennepin Ave. S., Mpls.
Gerald Paschke, 7960 Ranchers Rd.
MM= by Mr. Prairie, seconded by Mr. Meyer, to approve the Nov. 12, 1987,
Housing & Redevelopment Authority minutes as written.
UPON A VOICE VOM, ALL Var= AYE, CHAIIt MON COMMERS DECLARED THE MOTION
CNRRIED UNANI DUSLY.
Mr. Lundgren stated the following day he would be meeting with the
Carnegie Evans group in Greenwich, Connecticut, on this project. 7hey
will be voting on the amount of the commitment that the Carnegie Evans
group is going to take.
Mr. Lundgren stated he had a tentative arrangement with the contractor,
J. L. 7hanpson, whose net worth was $60 million and whose largest job
has been about the same amount. Mr. 7hanpson has been in business for 30
years. He is going to put up letters of credit for the difference
between what the commitment is and the amount of money needed, so they
will have 100% financing. The arrangements are being made for Phase I
and Phase II. He stated he expected to hear late Friday afternoon on the
exact amount of the oonimitment. The actual application commitment would
probably not be available until the following Wednesday or 1hursday.
Mr. Lundgren stated he was still working, hopefully and optimistically,
on closing yet this year. He realized that was slightly more than two
weeks array. Whether they would be able to do that or not remained to be
seen. The people they are dealing with are used to making decisions
quickly.
Mr. Lundgren stated he believed the construction loan would also come
from the sane group backed by the commitment and the letters of credit
for the difference.
Mr. Lundgren stated he had given this information to Mr. Robertson that
morning, and he would keep Mr. Robertson informed of any further
developments.
Mr. Commers asked Staff what the expiration date was on Mr. Lundgren's
letter of credit.
Mr. Newman stated Mr. Lundgren's letter of credit expired on Feb. 1,
1988.
Mr. Lundgren stated there was another alternate commitment he was
supposed to hear from next week, but it was not a commitment with a
contract and with the equity; it was a cam, itment only for the mortgage.
Hearing no motions, Chairperson Coamers declared the item remained on the
table for further consideration. Ole
�. • •• M ; �• •� • ; • •� . F
NEVA Y Do M to V M •
Mr. Comers stated this project was tentatively approved in the past. He
stated it was his understanding it was still contingent upon the City
Manager making the determination of the proper location for the satellite
fire station.
Mr. Prairie asked if this would affect any other property owned by the
HRA in this area, because a duple of times in the past, they had people
interested in development in that area. Would this make future
development not feasible?
Mr. Robertson stated the City does own property south of this property on
Rice Creek Road. 7he property in question was a piece the HRA considered
a year ago as part of the townhouse proposal by Mr. Mochinski. At that
time, the rezoning was turned down by the City Council for a residential
project in that area.
Mr. Newman stated the neighborhood has been totally opposed to a rezoning
for any residential in this area. The neighborhood would prefer to keep
it commercial zoning.
Ms. Schnabel asked if there should be a public hearing for the type of
th ing.
Mr. Newman stated it was not a legal requirement. As long as the
construction of the satellite fire station was consistent with the
zoning, a public hearing was not required.
Ms. Schnabel stated that, as she remembered, there were a lot of soil
problems in this area.
Mr. Robertson stated that, undoubtedly, there would have to be some soil
correction.
Mr. Comers stated he would presume that this property would be used for
the satellite fire station. If the property was not going to be used
that way, then this action would be null and void.
Mr. Newman asked the HRA if they would want the deed to restrict the use
of the property.
Mr. Comers stated he did not think they should do that, but if the City
should decide not to use the property for a satellite fire station, then
the HRA should have control of the property again. He was concerned,
because the HRA does own land there; and if the City doesn't use the
property for a f ire station, then the land should not be used f or
anythinq else and the HRA should aet the cronerty back.
Mr. Newman stated the HRA coul d approve the resol uti on but di rect. S taf f
not to deliver the deed until the City is actually ready to proceed with
the construction of the fire station.
by Mr. Meyer, seconded by Ms. Schnabel, to approve Resolution No.
BRA 9 -1987, A Resolution (1) Authorizing Construction of a Satellite Fire
Station; (2) Requesting Transfer of Property from the Fridley HRA; and
(3) Retain Professional Services to Prepare Plans and Specifications for
the Fire Station.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
NOTION CARRIED UNANIMOUSLY.
Mr. Newman stated it was his understanding that Mr. Duane Prairie would
not be participating in this discussion.
Mr. Prairie stated that was correct.
Mr. Robertson called the Commission's attention to a letter addressed to
Mr. Paschke from Jim Robinson dated Nov. 3,19870, a response from Mr.
Paschke to Jim Robinson dated Dec. 81, 1987, along with a soil report and
two estimates on soil correction.
Mr. Robertson stated that in his letter, Mr. Paschke was responding to
some of the code questions raised by Staff. This was regarding an
offioe /warehouse development on the* corner of Main St. and 79th Ave. It
was originally thought to be a 40,000 sq. ft. building, but it has now
been downsized to 34,000 sq. ft. with 80 parking stalls. It will
require some parking easements and some easements on the drainage pond
property directly to the north as shown on page bb of the HRA agenda.
Mr. Robertson stated Mr. Paschke has agreed to most of the code questons
raised in the letter from W. Robinson. There was one outstanding issue,
and that was item (e), a proposed layout for overhead doors facing 79th
Ave. Staff asked Mr. Paschke to incorporate the doors on the northeast
side, and Mr. Paschke stated he could not, but recognizewd that the doors
have to be thoroughly screened f ram the right --of- way on 79th.
Mr. Paschke stated he would listen to any suggestions Staff had on
screening. He did not know how a 12 x 12 door could be screened. He
stated this was K-2 zoning, and it was common throughout this entire area
that every building has at least a 12 x 12 door facing 79th Ave. He
failed to understand the problem with a 12 x 12 door on that side.
Ms. Schnabel asked Staff why the HRA was involved in this kind of
discussion concerning code. Wasn't this something that should go to the
Appeals Commission or Planning Commission?
Mr. Robertson stated that in the past the HRA has considered consistency
of projects where the quality was above the average -type quality. The
quality question was involved here, both in the landscaping, screening,
and the type of material for the building itself. He stated Mr. Paschke
was proposing to come to the HRA with a request for assistance with the
project, and in the past the appearance of the project has been one of
the first criteria considered by the HRA.
W. Robertson stated he thought the issue here was whether this was going
to be an above average project or just a project that simply meets the
minimum of the code.
Mr. Commers asked the cost of the project.
Mr. Paschke stated the project would be around $1 million. '
Mr. Commers asked how much assistance Mr. Paschke was requesting.
Mr. Paschke stated he did not know at this time and was looking to the
ERA for that:. He stated the land cost was $165,000. That price was firm
and not negotiable. Then he had to add the cost of soil correction.
Mr. Commers asked what the lot size was.
Mr. Paschke stated he believed the lot size was around 2.4 -2.5 acres, but
the owner of the property was not basing the price on the usable land.
It was based on other than that; but, again, the price was not
negotiable.
Mr. Meyer stated it bothered him that in the arrival at an agreed -upon
price between a buyer and seller, samewhere along the line, the condition
of the land was not taken into account. In this day and age, it seemed
as though everyone knew that when there is land with poor soil, the price
would have to be dropped in order to make it attractive on the market.
Mr. Paschke stated he had no objection to what the owner of the property
thought the land was worth. The owner was not actively trying to sell
the property, but he was actively trying to buy it.
Mr. Commers stated what he heard Mr. Paschke saying was that it might not
be feasible to construct a $1 million building on that property with the
soil correction that was necessary unless the ERA gives him some
assistance.
Mr. Paschke stated that was absolutely correct. The land cost under the
building was excessive without BRA assistance. It was his understanding
that the reason the tax increment district was created in this area at
time time was because soave of the land was going to need correction and
some of it was going to be overly expensive to deal with. So, on an
overall basis, they were not going to look at one particular piece of
property and say it was too expensive to correct and should be left with
nothing built on it. If they said that, then it completely defeated the
purpose of the tax increment, and it was not fair for the increment to be
there. He stated he has created a tax base in this area now of millions
of doll ar s.
Mr. Commers stated all the BRA was saying was that the owner of the
property probably should carry a little bit of the burden also.
Mr. Paschke stated the owner of the property was not willing to do that.
The owner of the property has other uses for the ground, so the property
was worth 5165000 to him. Mr. Paschke stated that he was a willing
buyer if he could feasibly work out a project. He stated he -has picked
over all the ground in that area now that he could build on with very
little assistance from the HRA, compared to the taxes that have been
brought in.
Ms. Schnabel asked if the ground under the other existing buildings that
are out there now had the same poor soil conditions as this particular
piece of property, or did this property have different soil conditions?
Mr. Paschke stated three of the buildings had the same poor soil
conditions. He asked for assistance on those three buildings. He
received $10,000 for each of two buildings and was supposed to receive
$40#000 for the third building— $301,000 was funded to him but there are
still some arguments over the other $10,000 which he has never received.
So, for millions of dollars in tax base, he has received only $50,000 in
assistance.
M. Schnabel asked how much the soil correction costs were for one site
or all three sites.
Mr. Paschke stated he could not give Ms. Schnabel those figures. Me HRA
had the bids at the time for the properties the HRA assisted with. There
are some pieces of ground that are uncorrectable, and they did not
attempt to correct those areas. on one piece, they created a pond.
Mr. Commers stated that in the past, the City has tried to set a
percentage for the amount of assistance in relation to the overall value
of a project. Did Staff recall what that percentage was?
Mr. Robertson staffed he believed that second mortgages were 10-15%.BOM
Ms. Schnabel asked what Staff's recommendation was regarding this
proj ect.
Mr. Robertson stated that with all due respect to Mr. Paschke, he felt
they do have a consistency problem between the quality of construction
the HRA has assisted with in the past and the quality of construction
being proposed by Mr. Paschke.
Mr. Paschke asked if staff was saying that in order to get assistance, a
developer has to build superior standards over the building codes? If
that was the situation, then there was something wrong with the building
codes. He did not think that was a fair statement. 'This was M-2 zoning,
Fridley's heaviest zoning. He has put up 70 buildings in Fridley in 20
years, and he has been successful with his projects. What he was
proposing for his building was very nice looking. He showed the
Commissioners some pictures of the type of facade he was proposing for
the building. Architecturally, it meets or exceeds any of the standards
set by the City of Fridley, either now or in the past. He did not think
brick construction was a qualifying factor in the City of Fridley, nor he
did not think it ever had been.
Mr. Paschke shaved the HRA the building plans.
Mr. Commers stated there were some things here that were real
premature --in terms of the HRA determining what to do.
Mr. Paschke stated that before he goes ahead and spends a lot more money,
he needed to have some indication from the HRA that they would'be willing
to give him some assistance. If it was not feasible, he wanted to know
that.
Mr. Comers stated it was hard for the HRA to make that determination at
this time. It was something Mr. Paschke would have to work out with
Staff and then Staff dhould came back with some kind of recommendation
and the basis for that recommendation.
Mr. Meyer stated that if the HRA's guideline is to contribute 10% to the
cost of the soil correction, would that be enough assistance?
Mr. Paschke stated that was what he needed to know. If everything is
agreeable to both the City and himself, he would like to know what the
maximum was that the HRA would contribute.
Ms. Schnabel stated she felt they should get a collar figure and get that
settled ahead of time so they do not run into some of the same problems
they have had with the Lake Pointe Project. She was not opposed to
providing some type of assistance to Mr. Paschke, but she would like to
see the finalized plans and have some figures generated.
Mr. Paschke stated he would get .together with Staff and come up with
something reasonable.
Mr. Openers stated the HRA was willing to try to participate in some
meaningful mariner, but since this was the first time they had heard about
this project, it was difficult to put a collar amount on the assistance
at this time. He would recomend Mr. Paschke work with Staff between now
and the January meeting, and then Staff can give the HRA an update at the
next meeting.
4. CONSIDERATION OF CRAMP= RmMT TO FORGIVE ALL OR PART OF SECOND
:
Mr. Robertson stated that at the October meeting, the BRA had asked Staff
to give the HRA some background information on this. No action was
required at this meeting. the HRA could consider staying with the HRA's
policy as indicated in W. Newman's letter dated May 6, 1986, or they
could change the policy.
Mr. Comers stated that Mr. Robertson had indicated in his memo to the
HRA dated Dec. 4, 1987, that there were still seven homes with
outstanding mortgages. He felt there were more than seven hones left.
He thought they had had between 10 -15 hones at one point under this
program. Mhat has happened to the other homes he did not know, but he
knew they have not made any other concessions.
Ms. Schnabel stated that of the hones that might have been sold, could
they have been sold before the ten year period was up?
Mr. Newman stated the only way they could find out would be by checking
the County records. He supposed a home could have been sold without the
City knowing it.
Ms. Schnabel stated that over the 10 year period of time, what happens if
a house was "trashed" so the value goes way dawn? Does the HRA have any
control over that kind of thing?
Mr. Newman stated, no, the HRA would have no control over that.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to reaffirm the policy made
by the HRA with respect to the Large Family Home Assistance Program.
UPON A VOICE VOTE, ALL VOTnG AYE, CHAIRPERSON COMMERS DECLARED THE
NOTION CARRIED UNANIMOUSLY.
5. TNFORNsnMON ON POTENTIAL REmVERY OF CHME ORDER COSTS FOR LAKE POINTE
CORPORATE CENTER:
Mr. Commers stated that in the HRA agenda was a letter to the HRA f roan
Jock Robertson regarding this item.
W. Cimmers stated the issue was whether a claim should be made against
Subterranean at this time for what might be considered negligence on
their part in their initial reports and the initial way they did the job.
Mr. Meyer stated he was satisfied with the explanations on the part of
the various people from Sunde Engineering on whether they have kept
things separate, and even Subterranean' s, except for this last point.
1 here seemed to be a lot of other things involved besides Subterranean's
testimony.
Mr. Prairie stated Subterranean might have done an unsatisfactory job,
but he would hesitate their pursuing this with a lawsuit. He did not
think that was a meaningful way to solve a lot of things. The best
solution might be just not to use the services of Subterranean anymore.
Mr. Meyer stated he would agree with that.
Ms. Schnabel stated the fact that there already has been an arbitration
board involved has a tremendous impact on what the HRA's chances would be
in a lawsuit.
Mr. Comers asked if Staff had approached Subterranean regarding these
mistakes and asked whether Subterranean could accommodate the HRA in some
manner.
Mr. Robertson stated they had not.
Mr. Prairie stated that might be a good thing to do.
Mr. Meyer stated that as he had stated at the last meeting, he was
concerned that both Sunde Engineering and Subterranean Engineering are
submitting a lot of invoices, and to what extent are these invoices
reflecting the fact that they had to backtrack and spend time repairing
damage of their erroneous reports? Are they billing the HRA just
"willy- nilly" for everything? He hoped they were not. Maybe this
questions should be asked of Subterranean.
Mr. Comers stated Staff should discuss everything with Subterranean
openly and directly, tell them what information the HRA has received, the
questions that have been raised by the HRA about the bills, and request
that these questions be answered.
Zhe HRA members were in agreement.
l�i�� : u►.. • m • - k, v 0 C, "4 4 0 C, � - xs ; • 4 4 4. 111 , • 0 � •
1k,1 )D1 00 wsxm m1 �I big v
Mr. Robertson stated this was an informational item. Just that
afternoon, he had received a proposal frctm Business Development Services,
Inc. He stated he had not yet had time to analyze the prposal nor had
Mr. Neiman. Depending in what happens with the Lundgren project, they
micjlit decide to proceed with this.
MOTI 4N by Mr. Prairie, seconded by Ms. Schnabel, to approve the check
register as submitted by Staff.
UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE
NDTIDN CARRIED UNMINDUSLY.
F1 lei I v Awi51k
M011 by Mr. Prairie, seconded by Ms. Schnabel, adjourn the meeting. Upon a
voice vote, all voting aye, Chairperson C.ommers declared the December 10,
1987, Housing & Redevelopment Authority meeting adjourned at 9:15 pm.
Respectfully submitted,
Ly * Saba, Recording Secretary
OUSING and REDEVELOPMENT AUTHORITY
COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN
DUANE PRAIRIE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
//
10: MA Members
FROM: Jock Robertson, Community Development Director
DATE: January 8, 1988
REGARDIKG: Development Agreement with Lou Lindgren
On June 12, 1986, the HRA approved the restructured Development Agreement
with the Fridley Plaza Associates Limited Partnership and Louis R. Lundgren.
The Agreement states that the land in the southeast quadrant of Mississippi
Street and University Avenue N. E. will be acquired for the development of
multiple use development and whatever the HRA's cost is for the acquisition
of the property will be placed as a second mortgage on the proposed
development.
Section 4.5 of this Agreement provides that the developer's irrevocable
letter of credit to be provided on or before July 1, 1986, will be effective
until the date on which the Authority issues the Certificate of Completion or
Feb. 1, 1988, whichever shall occur earlier. It further states that if the
minimum improvements have not been substantially completed by Feb. 1, 1988,
or if there occurs an event of def aul t which remains uncured f or 60 days,
then the Authority may draw upon the entire amount of the letter of credit.
Section 4.3 of the Agreement states that the contractor shall commence
construction of the improvements on or before December 1, 1986, and Mr.
Lundgren has subsequently conceded that he has defaulted on the Agreement
under the provisions of Section 9.1, "Events of Default ". Therefore, Staff
recommends that the Authority draw the entire amount of the letter of credit
in the sum of $200,000 as partial liquidated damages and reimbursement of
expenses, with the understanding that all or a portion of the sum may be
refunded to Mr. Lundgren if he succeeds in successfully securing financing
for the project.
JR:ls
M -05-88
EXECUTIVE DIRECTOR: JOCK ROBERTSON 8431 UNIVERSITY AVE. (,6 12) 571 -3450
FRIDLEY, MN 55432 EXT. 11 7
1
J
THE
STEFAHEAD
BANK STATE BANK OF SPRINGFIELD
SPRINGFIELD, MINNESOTA 56067
TELEPHONE 1507) 723.4261
July 11 1986
IRREVOCABLE LETTER OF CREDIT #29131
TO: The Housing and Redevelopment Authority
in and for the City of Fridley, Minnesota
6431 University Avenue Northeast
Fridley, Minnesota 55432
We hereby issue an Irrevocable Letter of Credit
No. 29131 in favor of the.Housing and Redevelopment Authority
in and for the City of Fridley, Minnesota (the "Authority"),
for the account of Fridley Plaza Associates Limited
Partnership and Louis R. Lundgren (the "Developer ") which is
available by negotiation of the Authority's draft at sight
effective until the Authority issues a Certificate of
Completion (as defined in the Contract for Private
Development defined hereinbelow) or February 1, 1988P
whichever occurs first; for Two Hundred Thousand and no
hundreds Dollars ($200000.00), accompanied by a written
statement, substantially in the form of the written statement
attached hereto as Exhibit A, executed by the Executive
Director of the Authority or his designee, bearing the number
of the Letter of Credit and stating that the Authority and
the Developer and Fridley Plaza Associates Limited
Partnership, dated as of June 12, 1986, (the "Contract for
Private Development").
We hereby agree with the Authority that all drafts drawn
under and in substantial compliance with the terms of this
credit shall be duly honored on presentation.
a ..
1 -A
1 -B
This credit shall be construed in accordance with the
laws of the State of Minnesota including, in particular,'
Minnesota Statures, Section 336.5 -101 to 336.5 -117 (Uniform
Commercial Code, Article 5, Letters of Credit).
This letter of credit #29131 replaces and terminates
previous.letter of Credit No. 111385 -2 dated November 13,
1986.
Sincerely,
� w
Kevin Jensen
President
EXHIBIT A
TO: Kevin Jensen, President
The State Bank of Springfield
2 S. Marshall
Springfield, Minnesota 56087
The undersigned Executive Director (or designee of the
Executive Director) of the Housing and Redevelopment Authority
in and for the City of Fridley, Minnesota (the "Authority ")
hereby states that the amount of the draft accompanying this
statement covers the obligation of Fridley Plaza Associates
Limmited Partnership and Louis R. Lundgren (referred to herein
as the "Developer ") to the Authority provided for in Section
4.5 of the Contract for Private Development by and between
the Authority and the Developer, dated as of the 14th day of
November, 1985, as amended.
The Authority is entitled to draw on Irrevocable Letter
of Credit No. in light of [to be completed by Authority
with specific reference to Section 4.5 of the Contract
referred to hereinbelow)
The accompanying draft is drawn on Irrevocable Letter of
Credit No.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CI:Y OF FRIDLEY, :INNE-SOTA
By
Its
1-C
Engineering
Sewer
fm:3-
Water
Parks "R
Streets
Mai ntenance
MEMORANDUM
TO: Jock Robertson, Emcutive Director - HRA PW88 -10
FROM: Mark L. Burch, Asst. Public Works Director
DATE: January 11, 1988
SUBJECT: Change Order No. 2 and Final Payment to Subterranean
Engineering for Services on the Lake Pointe Site
We have prepared the final contract do=nEnts to ocaplete our contract with
Subterranean Engineering for their work on the Lake Pointe Development site.
Change Order No. 2 is necessary to cover the additional soil testing and
site inspection performed by Subterranean due to the extended period of
time required by the earthwork contractor to eoaplete this project.
Based on the recommendation of Sunde Engineering, Inc., we reecmTend that the
HRA approve Change Order No. 2 for $6,055.99 and authorize a final payment
to Subterranean Engineering of $3,202.59.
MLB /ts
7his is the cover letter for Change Order No. 2. Please insert in your
HRA agenda before Item 2.
--,L.
ri
CITY OF FRIDLEY
Engineering Department
6431 University Avenue
Fridley, Minnesota 55432
Date January 25, 1988
T0: Honorable Mayor and City Council RE: Est. No. FINM -
City of Fridley Per. Ending 12 -31 -87
6431 University Avenue Northeast For
Fridley, Minnesota 55432 Subterranean Engineering
6875 Highway 65, N.E.
Engineering Services for Lake Pointe Fridley, M 55432
STATEMENT OF WORK
Contract Item
tOTAI
i
stimated Unit Quantity Quantity Amount
uantities I Price This Est. To Date I To Date
=�CS
$75
2
SUMMARY:
Original Contract Amount
Contract Additions - Change Order Nos. 1 &_2
and arbitration expenses Fastest - Credit
Deductions Change Order Nos.
Revised Contract Amount
Value Completed To Date
SUB TOTAL
Amount Retained Q(0(. (1 (0 %)
Less Amount Paid Previously
AMOUNT DUE THIS ESTIMATE
S 70,707.65
f 8,469._ 24
( 1,687.30)
f
77,489-59
f /75,677.22
f 75,677.22
f — 0 —
f 72.474.63
f 3,202.59
2 -A
CERTIFICATE OF THE CONTRACTOR
I hereby certify that the performed and the
and materials
terms of the contract o
have an actual value under the contract of the amounts shown on this estimate (and
the final Quantities of the estimate
just and correct and no
Date --jkLI—A-L
By
ontractor Aut rived epresenta the e
CERTIFICATE OF THE ENGINEER
I hereby certify that I have prepared or examined this estimate, and that the
contractor is entitled to payment of this estimate under the contract for
reference project.
CITY OF FRIDLEY, INSPECTOR
By �31==--
C d By
100A /1091A
Date —J=—r)= o
Respecfully submitted,
CITY OF FRIDLEY,
By
nth L .
lic Works Director
2 -B
RJBLIC WCRIS DEPARTMENT
Engineering Division
CITY OF FRMLEY
Fridley, Minnesota
January 25, 1988
Subterranean Engineering, Inc.
6875 Highway 65, N. E.
Fridley, MST 55432
SUBJECT: Change Order #2 - Soil Testing and
Engineering Services
Gentlemen:
You are hereby ordered, authorized and instructed to modify your contract for
Soil Testing and Engineering Services by adding the following:
BDDIZM
i,m APPROM OM= UNIT PRICE AMOU
Additional Soil Testing and Inspection Services. . . . . . .$ 6,055.99
'TOTAL CHAFE ORDER #2 . . . . $ 6, 055.99
(MM INAL CONTRACT PRICE . . . . . . . . *$ 70, 707.65
CRAM E ORDER NO. 1. . . . . . . . . . . . S 812.50
ARBITRATION EXPEISSES. . . . . . . . . . e$ 1, 600.75
CREDIT FOR RMESM. . . . . . . . . . (S 1,687.30)
CHAFE ORDER NO. 2. . . . . . . . . . *0 6, 055.99
REVISED CONTRACT AMOUNT . . . . . . . . e6 77,489.59
Submitted and approved by John G. Flora, Public Works Director on the 25th day
of January, 1988. n
Prepared
Checked b
2 -C
Subterranean Engineering, Inc.
Pa ge 2
Change Order #2
January 25, 1988
Approved and accepted this I clay of (.���_, 1988 by Subterranean
Engineering, Inc.
SUBMM MEAN E MEERII;, INC.
Presi nt
Approved and accepted this day of , 1988 by the City Council of
Fridley, Minnesota.
WILAMM J. NEE MAYOR
N76 Ito M. QUPMHI, CITY MANPGER
3/6/4/6
og'ne
rn w Y r¢ 2 O O 3 t- V c3 -
MEMORANDUM
TO: Jock Robertson, Executive Director - H A PW88 -6
FROM: Mark L. Burch, Asst. Public Works Director
DATE: January 6, 1988
SUBJECT: Change Order #4 for Landscaping, Irr'igat'ion and Lighting
Project #168 for Lake Pointe
Change Order No. 4 for Landscaping, Irrigation and Lighting Project #168
is necessary due to the fact that an additional 110 square feet of Keystone
retaining Wall Was required red to adequately protect the steep bank On this
project. The additional retaining wall blocks were necessary because of
the steepness of the slope aril to protect an NSp per line which runs
along the top of the slope near the retaining wall.
The Change Order increases the square footage of Keystone retaining wall
from 2365 square feet to 2475 square feet and the unit price remains the
same as originally bid on the project at $8.00 per square foot. The total
increase for Change Order No. 4 is $880.00.
MLB /ts
Attachments
3
FWDLEY
PUBLIC WORIG DEPAMEN7
Engineering Division
CITY OF FRIDLEY
Fridley, Minnesota
January 14, 1988
Minnesota Valley Landscape, Inc.
9700 Bush Lake Road
Minneapolis, MN 55438
SUBJEM Change Order #4 - Landscaping, Irrigation
and Lighting Project #168
Gentlemen:
You are hereby ordered, authorized and instructed to modify your contract for
Storm Sewer & Watermain Project #169 by adding the following:
I= BM1C. OLVN= UNFP PRICE
Retaining Wall Keystone 110 Sq. Ft. $ 8.00 $ 880.00
'TOTAL CHANGE ORDER #4 .5 880.00
ORIGINAL CONTRACT PRICE (?roj. #168) . .$481,413.00
I
CHANGE ORDER N0. 1. .5 5,585.47
CHANGE ORDER N0. 2... . . . . . . . . . .5 11,872.00
CHANGE CIDER N0. 3. . . . . . . . . . . (5-431219.50)
CHANGE ORDER N0. 4. . . . . . . . . . . .5 880.00
REVISED OJNT A(T AMOUNT . . . . . . . . . 5 456, 53 0.97
Submitted and approved by John G. Flora, Public Works Director on the 14th day
of January, 1988. /0")
Prepared by
Checked by
3 -A
3 -B
Minnesota Valley Landscape, Inc.
Page 2
Change Order #4 - Project #168
January 14, 1987
Approved and accepted this '`'day of yC4 "t4`'y , 1988 by Minnesota Valley
'Landscape, Inc. ;,
MIMES TA VALLEY LMMCAPE, INC.
Pr side
---------- - - - - --
Approved and accepted this day of , 1988 by 'the City Council of
Fridley, Minnesota.
WIMIAM J. NEE MAYOR
WG IM M. QURFSHI, CITY MANX R
3/6/4/6
4
CITY OF FREDLEY
MEMORANDUM
7A: NASIM M. QiUtFSHI, CITY MANAGER
FROM: RICHARD D. FMIL, FINANCE DIRECTOR
SUB .TEXT: RESOLUTION DEISIGNATING OFFICIAL DE110SI7ORY
FOR THE HOUSING AMID REDEVELOIKE.NP AUTHORITY
DATE: JANUARY 8, 1988
The first meeting of every year, we always put this resolution on
the BRA agenda so the HRA can approve the official depository that
we use in conjunction with depositing of their demand accounts and
also for their investments. This resolution also directs which
signatures are necessary for the withdrawal of funds for both the
check writing process and for the withdrawal of investment funds.
RDP:sh
3/0/10/27
RFSQRTIDN NO. ERA - 1988
RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE
PRIEEZY HOOSIIG AND — - - ELDOSH?NT AUM30RITY
IT IS HEREBY RESOLVED that the Fridley State Bank is hereby designated as a
depository for the funds of this corporation.
IT IS FURTHER RESOLVED that checks, drafts or other withdrawal orders issued
against the funds of this corporation on deposit with said bank shall be
signed by two of the following:
Finance Director
City Manager
Assistant Finance Off icer
and that said bank is hereby fully authorized to pay and charge to the account
of this corporation any checks, drafts, or other withdrawal orders.
BE IT FURTHER RESOLVED that all transactions, if any, relating to deposits,
withdrawals, re- discounts and borrowings by or on behalf of this corporation
with said bank prior to the adoption of this resolution be, and the same
hereby are, in all things ratified, approved and confirmed.
BE IT FURTHER RESOLVED that any bank or savings and loan may be used as
depositories for investment purposes so long as the investments comply with
authorized investments as set forth in Minnesota Statutes.
BE IT FURTHER RESOLVED that the signatures of two of the following named City
employees are required for withdrawal of HRA investment funds from savings and
loan associations:
Finance Director
City Manager
Assistant Finance Officer
BE IT FURTHER RESOLVED that any brokerage firm may be used as a depository for
investment purposes so long as the investments comply with the authorized
investments as set forth in Minnesota Statutues.
PASSED AND ADOPTED BY THE HOUSING AND RET?EVELOR&W AUTHORITY OF THE CITY OF
FRIDLEY THIS DAY OF , 1988 .
ATTEST:
JOHN L. "JOCK" ROBERTSON
EXECUTIVE DIRECTOR
4 -A
5
OUSING and REDEVELOPMENT AUTHORITY
COMMISSION MEMBERS: LAWRENCE COMMERS, CHAIRMAN
DUANE PRARE VIRGINIA SCHNABEL WALTER RASMUSSEN JOHN MEYER
CITY OF FRIDLEY
ZO: HM Members
FROM: Jock Robertson, Ccamunity Development Director
DAZE: January 8, 1988
RWARDIIG: Rioe Creek Road Improvements
As we have developed plans and specifications for the Rice Creek Road
diversion project between Old Central Avenue and Highway 65, it has become
apparent that we should underground the overhead electric lines along the
north side of Rice Creek Road. this undergrounding would be consistent with
the undergrounding of electric utilities which we have already completed in
the City Center Project along Mississippi Street and consistent with the
desired visual quality for HRA projects.
therefore, I recommend that an additional budget of $1500,000 be approved for
the undergrounding work and that this work item be added to the plans and
specifications for the project. Some of this cost can be offset by
reallocating some of the other landscaping and roadway costs of the entire
project. I will keep you informed as the project details are produoed.
JR:1 s
M -04 -88
EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450
FRIDLEY, NIN 55432 EXT. 117
Engineering
Sewer
Water
Parks
Streets
Maintenance
MEMORANDUM
TO: Jock Robertson, Executive Director - HRA IW88 -9
FROM: John G. Flora, Public Works Director
DATE: January 8, 1988
SUBJECT: Rice Creek Road Improvements
At the November 12, 1987 HRA meeting, the body approved a Rice Creek Road
improvement project for a total amount of $600,000.00. This involved the
Wade of Rice Creek Road between Central Avenue and Highway 65 with medians
and intersection improvements in accordance with the University Corridor
concept.
Plans are being prepared by SEH and it is anticipated to advertise the
project early this spring for summer construction. In developing the plans,
it has been noticed that there are overhead electric lines along Rice Creek
Road. If the HRA was to be consistent in relocating the electric
distribution system underground, we should request NSP to schedule this work
in conjunction with the roadway improvements.
I have made rote of this item to the NSP representative but have not made an
official request for this work. I would estimate the cost to be in the
vicinity of 5150000.00.
If the HRA desires to do so, I would recommend they authorize the City to
negotiate with NSP to relocate the electric distribution system along Rice
Creek Road underground.
Based upon the November outline of projects, it would appear that this money
could probably be made available from the interest resulting from the delay
in the Highway 65 and other projects identified.
asp/ts
5 -A
FWDL�iY
5- B
RESOLUTION NO. HRA 7 - 1987
RESOLUTION AUTHORIZING IMPROVEMENT EXPENDITURES FOR
PROJECTS WITHIN THE TAX INCREMENT DISTRICT FOR
CONSTRUCTION IN 1988 '
WHEREAS, the HRA has reviewed improved public use and perception of the
University Avenue Corridor; and
WHEREAS, 'the HRA is concerned about the impacts of surface water quality in
the North Area improvement district and the Nature Center; and
WHEREAS, there is a requirement to divert some traffic off the Old Center
Avenue; and
WHEREAS, there is a need for parking in the Fridley Plaza area as a result of
redevelopment and expansion; and
WHEREAS, after discussion with the City Council, the HRA finds a need for
sharing the $1 million expense for improving water quality in the Moore Lake
Tax Increment District.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of
the City of Fridley, that the following projects and budgets be authorized for
construction in 1988:
a. University Avenue Corridor - $1.5 million
b. Public Parking Ramp - $1 million
c. Rice Creek Road Diversion - $.6 million
d. Moore Lake Water Quality - $.5 million
e. North Area Ponding - $.35 million
BE IT RESOLVED that the HRA staff be authorized to prepare the necessary
project documents for City Council action and subsequent contract
administration.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF FRIDLEY THIS 12TH DAY OF NOVEMBER, 987
yvy�Lvr/
LAWRENCE q. COMMERS
CHAIRMAN
ATTEST: -�
i i0 : " OC " ROBERTSO
E}CECUTIVE DIRECTOR
6
07- Jan -88 UPDATED
CITY OF FRIDLEY PUBLIC WORKS DEPARTMENT
6431 UNIVERSITY AVENUE N.E.
FRIDLEY, MINNESOTA 55432
FROM: City of Fridley Engineering Division RE: Estimate No. 9
Period Ending: 1 -01 -BB
TO: Honorable Mayor and City Council
City of Fridley
6431 University Avenue N.E. FOR: S.E.H.
Fridley, Minnesota 55432 222 East Little Canada Road
St. Paul,MN 55117
DATE:
HIGHWAY 65 IMPROVEMENT AREA
STATEMENT OF WORK
------------------------------------------------------------------------------------------- - - - - --
APPROVED
CONTRACT
AMOUNT THIS
TOTAL
CONTRACT ITEM
DATE - HRA
PRICE
ESTIMATE
AMOUNT
100 TWIN INTERSECTION PLANS
3114/85
$30,750.00
30,749.83
CHANGE ORDER NO. 1
10/8/87
21,362.55
21,362.55
WEST MOORE LAKE CONSTRUCTION
9111186
$39,800.00
HIGHWAY 65 PLANS
9/11/86
$55,500.00
55,500.01
CHANGE ORDER #1
4/9/87
$8,270.00
CHANGE ORDER #2
8/13187
$6,375.00
373.64
11143.09
CHANGE ORDER #3
10/8/81
$3,769.05
3,769.05
HIGHWAY 65 CONSTRUCTION
9/11/86
$59,000.00
RICE CREEK ROAD
PRELIM. PLANS
9/11/86
$7,100.00
7,100.00
DETAIL PLANS
8/13/87
$52,500.00
7,003.66
10,546.37
RICE CREEK ROAD CONSTRUCTION
8113/87
$50,500.00
OLD CENTRAL PRELIM. PLANS
8/13/87
$18,000.00
2,340.09
3,267.80
---------------------------------------------------
TDTAL
- - - -
-- $352,926.60 -----
$352,926.60
9,717. -- - -
9,111.59
-- 133,43----------- - - - - --
133,438.70
07- Jan -BB UPDATED
SUMMARY:
Original Contract Amount
Contract Additions - Change Order #1
Contract Additions - Change Order 42
Contract Additions - Change Order 13
Revised Contract Amount
Value Completed To Date
Amount Retained (5X)
Less Amount Paid Previously
AMOUNT DUE THIS ESTIMATE
ol
$313,150.00
$29,582.55
$6;375.00
$3,769.05
$352,926.60
$133,438.70
$0.00
$123,721.11
$9,717.59
6 —A
CERTIFICATE OF THE CONTRACTOR
I hereby certify that the work performed and the materials supplied to date under the terms of the contract f
project, and all authorized changes thereto, have an actual value under the contract of the amounts shown on
estimate (and the final quantities on the final estimate are correct), and that this estimate is just and cor
part of the 'Amount Due This Estimate' has been received.
By-- - - - - -- Date ------------------
Contractor's Authorized Representative (Title)
CERTIFICATE OF THE ENGINEER
I hereby certify that I have prepared or examined this estimate, and that the contractor is entitled to payme
estimate under the contract for reference project.
CITY OF FRIDLEY, INSPECTOR
Date ------------------
By--------------------------------- - - - - --
Checked By Respectfully Submitted,
------------------------- - - - - --
-------------------- - - - - --
John B. Flora, P.E.
Public Yorks Director
AAV
ENGINEER51 ARCNRECTS •PLANNERS
222 EASTLi 7LE CANADA ROAD, ST PAUL MINNESOTA 55117 612 484.0272
City of Fridley
6431 University Ave. N.E.
Fridley, MN 55432
ATTN: John Flora
Director of Public Works
INVOICE
December 21, 1987
OLD CENTRAL AVENUE
INVOICE NO. 1242 SEH FILE NO. 88069
FOR PROFESSIONAL SERVICES. FOR PERIOD OCTOBER 18 THRU NOVEMBER 14, 1987
For preliminary study for Old Central Avenue. In accordance with
your confirming letter.
Project Manager
$ 27.80
60.12
Project Engineer
2,198.03
Design Engineer
12.52
Drafter
27'87
Clerical
13.75 $2,340.09
Mileage
TOTAL AMOUNT DUE AND PAYABLE THIS INVOICE . . . . . . . . $2,340.09
'f tate of 3 uttt�s c, S8
COUNTY OF RAMSEY. CITY OF SAINT PAUL
Donald E. Lund In sad County and State. being duty swum.
Vice President
on oath. says. that he is _ services of the She value I eftre charge Inch the the tM w amounts chaff therefore are such as are avowed by and that no Apart �� of such
and of the value ihereuf charged:
account has been pad
Subsenbed and swum to before me "
My comma des 19
day of
19
6 -C
SHORT ELLIOTT ST PAUL, WISCONSIN
FALLS
HENDRICKSON INC
MINNESOTA WISCONSI N
i
OEN
MW
0
ENGINEERS • ARCHITECTS ■ PLANNERS
222 EAST LITTLE CANADA ROAD, ST PAUL, MINNESOTA 55117 612 484 -0272
City of Fridley
6431 University Ave. N.E.
Fridley, MN 55432
ATTN: John Flora
Director of Public Works
6 -E
INVOICE
December 14, 1987
T.H. 65 /LIGHTING
INVOICE NO. 1167 SEH FILE NO. 84142.02
FOR PROFESSIONAL SERVICES: FOR PERIOD OCTOBER 18 THRU NOVEMBER 14, 1987
For T. H. 65 street lighting from I -694 to Rice Creek Road.
Project Manager 6.5 hrs @ $55.58/hr = $361.27
Clerical .5 hr @ $24.74/hr = 12.37
TOTAL AMOUNT DUE AND PAYABLE THIS INVOICE . . . . . . .
MAXIMUM FEE: $6,375.00
INVOICED TO DATE: $1,143.09
64tate of ? SS
COUNTY OF RAMSEY. CITY OF SAINT PAUL
Donald E. Lund In said County and Stets, being duly swom,
on owh says that he is Vice President
�n �w � a uream� a g�s ry ee �a a ;d m ndered
of e recharged; that n charged tlreeta , services eleD law; Nett nopa of such
account has been paid
Subscribed and swam to before me this
My aamnoon expaes 19
day of
19
$373.64
$373.64
SHORT ELLIOTT ST. PAUL, CHIPPEWA FALLS,
WISCONSIN
HENDRICKSON INC
MINNESOTA
i
��
��
ENGINEERS I ARCNRECTS ■PLANNERS
222 E4STLIr E ,ANA�7A KOAD, ST P4�L, MINNESOTA 55117 612 4 84 -0272
City of Fridley
6431 University Ave. N.E.
Fridley, MN 55432
ATTN: John Flora
Director of Public Works
6-G
INVOICE
December 21, 1987
J
RICE CREEK ROAD
INVOICE NO. 1241 SEH FILE NO. 88057
FOR PROFESSIONAL SERVICES: FOR PERIOD OCTOBER 18 THRU NOVEMBER 14, 1987
For plans and specifications for reconstruction of Rice Creek Road
from T. H. 65 to Central Avenue. In accordance with your confirming
letter.
Project Engineer $ 165.32
Design Engineer 2,861.45
Technician 1,815.41
Drafter 100.20
Survey Crew 1,266.53
Clerical 38.45
Mileage & Expense 756.50 $7,003.86
TOTAL AMOUNT DUE AND PAYABLE THIS INVOICE . . . . . . . . $7,003.86
MAXIMUM FEE: $52,500.00
INVOICED TO DATE: $10,546.37
Mir
pbtt IIf i2iti8SD i� ss
COUNT' OF RAMSEY, CITY OF SAINT PAUL
Donald E. Lund In said County and state, being duty sworn.
on oath says the he is Vice President
of the Short•ElhoIl•Mendnckson, Inc.. that the foregoing account is just and true: that the services tharem charged were actuatly rendered.
and of the value therein dwged: that the tm or arnounm dceMed therefore are such as are allowed by law: and that no pan of such
account has been pad
Subsenbed and sworn to before me this day of
My common exp a 19
19
SHORT ELL1077 ST PAUL, ISCO NS IN W
HENDRICKSON INC MINNESOTA WISCONSI N
6 -H
C L A I M S
1701 - 1708