HRA 03/10/1988 - 29651�',
�
�.
QTY OF FRIDLEY
. • � � -� �� � • •� � r� � �. �,• � �� � �� • i: � .� .
C'AT T• TO ORDER;
Chairperson Commers called the l�aarch 10, 1988, Housing & Redevelognent
Authority m+eeting to order at 7:05 p. m
ROLL CALL;
Members PresQnt: Larry Conaners, Dtaane Prairie, John N�eyer
Memloers P,bsent:
Others Present:
virginia Schnabel, Walter Rasmussen
Jock Robertson, EYcecutive Direc�or of T�A
Rick Pribyl, City Finan�e Director
Jul ie Bur�, Asst. Finance Off icer
Dave Newman, HIZA Attorrbey
3im Casse rly, 215 S. llth St. . Mpl s.
Norman Brody, Brody & Associates
Lou & Jime Lundgren, 343 Rellogg Blvd. ,
A1 an Rouse, 17 86 Henr�pin Ave. So.
Revir� Rouse, 2200 Fir�t Bank Plaae East,
Steve Bill�ngs, 5215 Linaoln St. I�L E.
Geralc7 Sunde, Stuide Engirieering
Jai Swh, 12 Islanc7 Road, St. Paul
St. Paul
Mp]. s.
ApvR[�vAT. OF FEB�tLrAUV 11. 1985. HOUST� & • EVEIAPMEI� AtTPH�Rrrv MT �rrFG;
� by Mr. l�yer, sewnded by Mr. Ptai.rie, to approve the February 11,
1988, Housing & Redevelopnent Authority minutes as written.
UPON A VOICE VOl�, ALL V� A�, Q�A�RPERSCi�i pJNIl�+�RS DEQ,ARID THE I�TION
CARRIED UNANIl+�USGY.
App��� OF FEB_Ri1A�av 25, ]988. SPECLAr 130USING & REDEVELOpMElV� AUTHORITY
N�NUTES N�'1'ING:
MOrION by Mr. Prairie, seaonc�cl by Mr. Meyer, to a�ove the Feb. 25, 1988,
�ecial F%using & Reclevelo�merit Authority meeting minutes.
UPON A VOICE VOI�, ALL VO.�IlQG AYE, Q3AII8PERS� Q�P'�RS DEQ,ARID Ti3E NIOTION
C�tRIED U1�ilVIl�iJSLY.
� �� }I� �1.2_� •.� • • - ��I'1�L- � . • 11/�{,l_.i_
Mr. Robertson stated that after the special meeting on Feb. 25th, staff inet
several times with Nlr. Ltuzdgren and Mr. Jacrobsen to review the financing
arrangPments anol the pro forma As the agenda was being prepared on March
4, three issues remained outstanding, anc7 staff suggested an absolute
deadl�.ne of a week f rom Nlarch 11 to try to resolve the following three
issues:
-1-
: ri �. � �.�� �iL_�aaui��±_ � ��l4?,�� �+� ���4� � � ; �: �
r-.� (]a The outl ine Mr. Lunclgren and Mr. Jaoobsen presenteol seemecl to raise some
questi� of an adclitional $1 mill ion of f inancing of which both Ndr.
Newr�an and h�m9elf had diff iculty in inderstanding.
(2) Mr. Llmclgren's pro forma whic,h includes property tax asst�n�ions in the
operational expense area which were one-third to one-half of what the
City Assessor estimates the ta.xes will be on the project qiven Mr.
L�a���s ��.�5.
(3) Mr. L�algren irasists on a first option of all subsequent phases of the
project--the elderly housing, tYie shopping, anc3 the off ice complex.
Although that was originally tmderstoocl to be part of the develo�xnent
agree�nent, there was some q�estion in staff's mind whether the HRA sti11
wants, e�en if all the ather questions are resolved, to continue the
first option.
l�r. RQbertson asked Nir. Ltmdgren if he w�tea first o�ion on all the rest
of the ghases through ca].erbbdar year 1988.
Mr. L�dgren stated, yes, on all phases excep� the fourth phase, the off ice
phase.
Mr. Robertson stated that, sul�equently, Ndr. Ltandgren haa said he woulc�
pre�re some wmparables on the property tax questions. Those arrived on
Tuesday. March 8, and the City Asses�r hacl looked at those numbers. Mr.
� Mad�en had responded on Marct� 9, essentia].ly disputing the conclusions Mr.
Limdgren haol made. As a result, Mr. Newman and he met Wednesday afternoon
and �ncludec3 that the differenoes in tax dispute were a alifference by a
factor of 2, Mr. Ltmdgren's being abotat half of what Mr. Mac�sen hacl come up
with. N1r. Robertson statecl he then wrote a letter to Mr. Ltmdgren (includeal
in the HRA Information Packet at the meeting) esseritially saying that staff
ooulc] not reoom�end the City pr�eea with this kind of discrepancy in taxes.
He deliverec] the letter to Mr. Ltmdgren at �n on Wec�esday. l�ir. L�dgren
met with his oonsultants and ca�ne taack requesting an early meeting before
the HRA meeting to discuss an outl ine of an approach to narraw the qap. At
7:00 p.m. j�st before the HRA meeting, they w�re still discussing how that
gap aould be narraved. Obviously, they still needed more time.
Mr. Commers statecl that in reading the Feb. 25th HRA minutes, he t�olerstoocl
that the letter of credi.t will sta11 be reoogni�ed throu� March 25; anol, if
the issues can be resolved, staff has the righ� to make a determination at
this point.
1U1rr. Newman stated that was oorrect. If nothing is done on �he letter of
credit, ttiaen it will autcunatically be tendered to the HR�i on March 25.
1Hr. Commers asked if there was anything the HRA could do this ev�.ng, other
than to reoeive the infornnation an� let staff ooratinue to rieg�tiate with Mr.
Ltmdgren.
Mr. Newm�ir� stated the issue staff needs a sense of direction on was the
�, question pertaining to Mr. L�clgren's desire to have an option to develop
-2-
��1 _�: s�!_�� !1�v!�� s��4�!�.t4� v��� u����. �
�� the balance of the property.
Mr. Con�aners statecl the original. oontract provided that Mr. Lunclgren woula
have those developaent ri�ts, but the original v�ntrac;t is no longer v�lid.
lY[r. Newman stated it was his taZderstanc7i.ng that if, in fact, staff feels the
ntBnbers make sense and they can move forward with this and go with the
additional 90 day period so Mr. L�agren can make the loan appl ication, at
that time they wuulol be precludinq any di.scussions with ather �velopers on
tYae entire site. 7�iere seems to be some interest among developers to do
retail � some of the other portions of the site. Staff needs to know
wl�ether the HRt� feels Qomfortable in staff precluding the exploration of
ather opportLmities whi.].e Mr. L�agren makes his loan a�licati�.
Mr. Prairie stated he felt if the first two issues could be resolved in
those 90 days, the third issue was not a great problsn.
Mr. Newman statea it was the sense of staff at tlgis point that they are
tn�ortab],e rea�uQnending that first op�ion becatse if the first option was
graritec7, staff would prohab].y effectively be preclucled frcm developing other
parcels renaining on the site during this construction season
Mr. Commers stated it was now Nlarch 10 and the HRA has not been approached
with any type of formality on any ather parvels. He did not see ho�a anyone
would be able to � anything in 90 days.
^ N[r. Prairie agreed. He statedl that for as long as this has taken, another
90 days was a pretty short period of time. Obviously, they want to have
thiss site �eveloped as soon as possible.
Mr. Comaners statec7 he felt it was the ooncensus of the HRA that if staff is
able to resolve the ather issues that Mr. Lumclgren be granted the 90 aa�
first ri�t of refusal. on the ather paroels for further developnent, based
on the HRA's inderstanc7i.ng that any r�gotiations would have to be completed
by March 25.
Mr. Meyer and Mr. Prairie agreed they �uld not have a problc�n with that.
Mr. Ltmdgren stated that if they reach satisfactory negotiations by March
25, wi�n did the 90 days start?
1�ir. �ommers stated that if staff can resolve the�e issues satisfactorily
with Nir• L�clgren► staff haci the authority to aukhorize 1Kr. Lumdgren to go
ahead, and he will rnt have to oome l�ack before the H�.
Mr. L�dgren stated he has felt fram the beginning and he thought the HRA
felt similarly that this was a mixed use proj ect in which there was
wnsi�rable benefit in having a taiifiecl type project, architecturally and
otherwi.se.
Mr. Meyer stated at the Feb. 25th special HRA meeting, Mr. �undgren had
^ talked ab�ut now looking at local contractors for the project. He just
-3-
: ��� �: i��� �L� -.�)�V��sl � ��Y: � : i�4 �1�I�1� i' ul_ ��M: 1 ��
�..� wanted Mr. Ltm�gren to lalow that he was not so o�noerned aboiat wl� might be
building the project, but tnder what circ�mnstances would the builder hold
more pc>wer to decide what qoes on in the project than either Mr. L�c7gren or
the HRA?
Mr. L�dgren stated he felt Mr. Meyer's present and past oom¢nents regarc7ing
the builder were made with a great deal of j�stification. He stated he felt
tYie same way. At the preserit time, he was negotiating very closely and felt
that within the time fra�►e of tYiese negotiations, he would have finished
negotiations with Rrause Anderson, a local and substantial firm. His
arrangement with then woulol be strictly an irlvitational bid situation. 7hey
would build the building for a f ixed siun per f ixed specif ications. They
tnrould not be involvec�l fir�ancially and they vx�tald not have any ownership in
the kxailding.
Mr. Comaners wished Mr. LLmdgren good luck with these neg�tiations.
2, �OI�S�ERA_'i'TON OF A MOQ�' L�� C�IO1�iS DEVF:rr�nmF:�vr AgZ_�nm; �, gp�rtson
stated he haa asked Jim Casserly to be at iche meeting to answer any
questions the SRA members might have. I3e stated Mr. Casserly vras in
agreement with the alternative progosed by staff for a��00,000 land
write-down i.n the developnerit agreeaent. 7ti�e agre�nent shoulcl then include
a$400,000 special assessnerit for ptab].ic improvenents over ten years with
principle and irlterest.
^ Mr. Casserly stated there was a�nsiderab�.e aost irravvolved in the ponding,
relocation of storm sewers, bike �ths, li�iting, and irrigation systems,
all of which the develoger has agreed to cb, but these thinqs are on publ ic
right- of-ways. Lenders just are rzot very excitec7 about loaning money for
those kinds of �mprovenents, because they g�t r� security interest for those
impravenents.
Mr. Casserly statec7 they have hacl disscussions with city staff and it wouldl
certainly I�e helpful to the developer and help pro�note the proj ect if they
coul� ha�e an arrangennent as has been suggested.
Mr. Newman stated staff feels that by tsing the special �essnent approach,
it was prol�ably a more secure �aay of doing it than by going through the
prooess of trying to glaoe a seo�nd mortgage on the property.
Mr. Co�ners statecl this was the basic approach the HRA had agree� upon all
along for this project in terms of using financing for the public
improvenents.
Mfr. Casserly state� Mr. �rody was also at the meeting to answer any
questions.
Mr. Meyer asked about the �363,000 cost for soil correction ira Exhibit A,
Cost of Imprwenerits.
Mr. (�sserly stated it was his �clerstanding that part of the problen was
^ there was a fair aao�t of ooncrete in there, aricl they think it is probably
-4-
�"�
�"\
:�� � � ��+�.��?±!a�u!�+ _. ���� ' 4�_ 4�i�� �: vrt���: �
denolition debris fran the freeway interchan�.
Mr. Brody stated their engineer� have to do more stuc�ying anc7 they have to
do s�me more �oil borinc� to find out exact].y Y�w extensive the problem is.
He stated the $363,000 was a high end figure asstmiing the worst case
scerbario.
Nlr. Co�ners asked if the city hacl any records of what was dumped on that
site.
Mr. Robertson stated they have some partial reaorc�s, but they �uld provide
to the develc�per whatever irafor�aaton they have on the f ill that was diunped
on the site.
Mr. Meyer asked what woulcl happen if the best situation occurrecl, and the
c3eveloper only needea $100,000 for soil correction, and the HRA had already
gone ahead and authorizecl the $400,000?
Mr. C�sserly stated what was �ing requested was not the $�84,250, but
5400,000, � even if there were np soil oorrec�ions, there would stil be in
the r�eiclhborhood of $500,000 of impro�ements the developer is willing to dQ.
Mr. Newman stated he would remind the HRA that this work was for both
developnents--the health club and the retail. T'he estimated market value
was $13,200,000 when oompleted. At $400,000 assistanae, that works out to
be ab�ut 3�-�robably a lawer peroentage af assistance than they provided to
Varitage Com�nies.
Nlr. �eTewmara stated if the HRA was a�rEortable with the agreanerrt, staff will
have to sit down with the developer �d prepare a developne.nt aontract where
they can start deal ing with �ne of the specif ics. I3e would 1 ike the HRA to
make a m�ion ir�olicating their appr�al of the wnc�pt and to direat staff
to prep3re the o%velo�n�nt oontract for rEView at the next meeting.
� bY Mr. Meyer. secondecl by Mr. Prairie, to approve the concept in
terms of assistance for the Moore Lake Conmmons develogner�t and to authorize
staff to prepare the develognent contract for review at the next HRA
meeting.
i � r a • � •� • � � � i •.� �. r•: ���I� r. � �• �� i • i�� � �� �� • ��. .� �� ,� � .
�, . . � � � r. . �� :� •�
«� 1,� 1� �I• � • • �(I �I �i��� � �l l� �� � � . • I��l y � 1 i � •
N ti�.ul� �_T�� � - - - - -
Nlr. l�obertson stated that at the Fel�
for an adc3itional breakdown of oosts.
to present his reasoning.
llth HRA meeting, the HRA had asked
He had askec� Mr. Fl or a to do that and
I�lrr. Flora statecl that in his February 26, 1988, memo to the HRA he was
trying to bring to the HRA's attention that as they go into these projec:ts
^ (University Avenue Corridor �Iic,�iway 65 causeway, Rice Creek Roa� parkway) ,
-5-
:�:� �; ��i ?i�L�_!J�v!�!_ ����? �� 4� ui��� i:. u►= Ly: �
� there is a a�ritinual mairrtenanoe requir�nent associated with these proj ects
to put then � 1 ine.
Mr. Flora statec7 it was brou�it to his attention that as Lake Pointe was
wming to fruition, there was going to be the neea for mairitenance on the
site, an� they do not have any property awr�ers there to take care of the 40+
acres of grass, sprinkling system, �bris, etc. It was beyonc3 the City's
foroes to take care of that large a parael of land. Because the sprinkler
syst�n was so a�mplex, staf� was suggesting they goo out for a c�ontract with
some f inn to maintain the lands throu�i fihe stmQaer period.
Mr. Flora stated they really c7� not know what the �sts are qoing to be.
They felt $25,000 was a ca0007 nignber to spend frca� April to October to have
the site mairitained. Also, based upon last year's water usage and the
extensio� of the existing water systea, they are looking at around 58,000
just for water to keep the area green. They were asking that the HRA
authorize the City to a�vertise for a aoritractor to take care of the Lake
PoirYte site this swarner.
Nir. Consners statecl that after the HRA reoeived Mr. Flora's msao at the last
meeting, they had a discussion relative to wY�ther or r�t it might be more
appropriate or just as easy for the Public Works De�rtment to add a couple
of temporary stma�er enployees to oover that mai.ratenanoe.
Ntr. Flora stated the grass cutting alone would not be too bad. The
sprinkler system was the problea
Mr. Commers asked if the City could get a separate sprirakler system
mainteraanoe agre�nerit.
Mr. Flora stated they probably oould, tut there �oula be some grob7.ens, too,
with the City �ol a oontractor b�th involved. It was just a lot neater to
have ce�e o�ntractor responsihle for the wl�le area.
Mr. Prairie stated he thought it would be cheaper to have all the
mai.ritenanoe dor�e by one aontractor.
Mr. Commers stated that he wou].d like staff to get two bids--one for
maintenance of the entire site and one for maintenance of just the
sprinkl ing system to see if there was any sic�if icant dif f er ence in co st s.
However, it dia sounol like it would probably be better to have one
writractor for a7.1 the mairatenanoe.
Mr. Nieyer stated he agreec� with Mr. Flora that it would be better to have
the site maintair�ed by the same f irni. He also agreed with Mr. Commer s that
it woulch�'t hurt to have the City ask for two bids.
Mr. Flora stated he would be willing to break the specs down.
� by Mr. Pr�irie, sewnded by Mr. Meyer, to direct city staff to � out
for bic�s for the mairitenance of the Lake Poirr�te site aiuing the 1988 growing
r^--, season.
-6-
:_� � i. _ :��?�L� �a�v�! :_ 1��! � 4+�. v���!!�_ �� u����.� i
�--� UPON A VOICE VOI'E, ALL VOPIl�TG AYE, QiAIEBPERS011T �P+Il'�IltS DEQ,I3RED THE N�TION
C�RRIED UllTt�NIl�[JS'[,Y.
Mr. C�onm►ers thanked Mr. Flora for wming to the meeting.
. «� �}. �► a�•_�_�_ •� � � «� �z�L � M�4� Y���u � �� iai�� • � �a_ �� �..!�_ � z.�!� � �,
�� ��-�4' �� • ��_� �L4�_ � � � ��! {� _ �� —
Mr. F7.ora statecl Mr. S�de was requesting the HRA to extend his aontract for
ariother 58,900 in order to oomplete the engir�ering work associated with the
Lake Poirite util ities ana street systen.
Mr. Com�ers asked why the oontract had to be extenc3ecl ancl why the work was
not intt�ed in the origir�al oontract.
Mr. S�mo1e stated that originally they ha� a fixed contrac�. Twice last year
they came in for chanc�e orders--one in early spring anc7 one in Sept. For
the chang� order in Sept�nber, tlney triecl to estimate what they thought it
would cost to aompletely finish the work, assuning the work would be done in
1987. Ho�wever, the work was not ahl.e to be completed before winter. N[r.
Flora asked him to pregare another change order for coming back an�
basically doing the work that was not �rie last fall.
Mr. Stmde �tated that for some rea�n the c�arb and storm sewer contractor
did not want to �ome l�ack in �til Park Construction was completely done
� with thei r work. Svnde Engineering hac� assuned that �ome of the wor k woul al
have been c1�r�e ooncurrently, but it did not work out that way.
MUrION bY 1"[r. N9eyer, sewndecl by ld1r. Prairie, to approve the contract with
Su�de Engineering to firni.sh staking and do the construction iraspection at
Lake Pointe, estimated wst - $�,900.
�i'�' � • M • •� 1 � 1 •: � 1'�'��i' � �. �• �l� l�' � �i � � � �.• � �
�'` '� ' 1 � 1 � 1� . 1 �`�' `i
k�,,_ �� a��_z�1 • � • � au a�i «� ��Lk�.:� ��'. �4+__� ��;�i' a�_ �� . . ;! �� .���I
Mr. Robertson stated the street improvenents to the Lake Poircte develoFaaent
site will Yae wmpletec3 this spring. �e o�ntract for these improvanents was
let in 1986 ancl the succ�ssful law bidder was H& 5 Asphalt, Inc. Sinoe the
o�ntract was let two years ago, there have been increases in the cost of
raateri�].s.
Mr. Robertson stated that af ter the meeting ag+enda was pre�.red, Mr. Alewmari
aclvisec� him that there mi�t be saane gray legal question as to whether or
not init pri�es can be changed without a rebidding of the entire oontract.
Mr. Robertson stated that he had not had a chanae �o discuss this with l�rr.
Newman }�efore the meeting, but there was the alterr�ative that H& S Asphalt
o�uld exercise to aontin� the eontract at the original bid unit prices.
r�� year the HRA did pay H& S As�a1t a renobi.]. iation f ee of S2, 800 . If
,r"�, that was s�till appropriate, that would be an alternative that c:ould be
-7-
�
�"�
�
�"�
: �:1 _ �, i�ii ?1,��_,�J'�V���a_ Q_ ��� � ' 44 ���� ._�,. �4ii�.� 1
offered. Staff cotald see if they want to do that versus competitive
biading.
Mr. Prai.rie a�ke�l if H& S Asghalt o�u].� have finished the job last year.
Mr. S�c� stated he thought if everything had gone the way they thought
things woul� go, S& S Asphalt would have finisheol. But, after the cold
spell the wnditions were riot very goo� for asplialting.
Mr. Newman stated the State Statute states tlzat they can authorize a change
order if they are increasing quantities, providing the quantity is not
greater than 25� from the amount originally bid. Tl�e Statute does not
provide for changing tmit prives through a chanc�e order as that a�nstittates
a substantial change. When H& S F,sphalt originally bicl the proj ect the
first time, tliey wanted to extend the c]ate when construction would begin.
At that time, maybe even that c]nange oonstituted a substantial change f rom
the von�ract. Achnittedly, last year the �RA c7id agree to mobilization
changes which was soanewhat questioraable I�t they felt there were a lot of
pro}alaas that were r�t the fault of the aontractor who wanted to proceea in
ara expeditio�s fashion. However, he did not think they were facing those
kinc3s of restraints this year. Atso, the HR� had no way of knowing if the
increases were fair and reasonable. He stated botYa he anol Mr. Pribyl were
very �comfortabl.e about this.
Mr. Cananers statecl that beca�e of the iraformation they had received f rom
their legal ooimsel, staff should qo back to H& S Asphalt ancl inform them
that there was �mne lec�dl q�stion as to whether the HRA coulcl approve an
increase in init pricing at this late c�ate. If there was any other �vay in
wlv.ch the �iRA could acc��nodate H& S As�ialt, then staff should let the HRA
lmow.
MOTION by Mr. Prairie, seconded by Mr. Meyer, to table any further
disctassion on the wnsideration of a revis�ecl crontract for street completion
at Lake Pointe with H& S Asphalt tmtil fur�ther information is reoeived f ran
staff.
UPON A VOIC� VOPE, ALL VOPIIVG A�, CHI�PERS�T �11y���RS DECLARID THE MOTION
CARR?ED UN�TIl�USGY.
• ��Il �'i_ � � • '�t��i�l_ �l �i.li�__,_ �� �1i •�� _ _ �� ' il��_ �
Mr. Robertson stated the City Council had reviewec� this preliminarily on
Monday, March 7, and the City CoLmcil had raised some questions about the
appropriateness of the housing clensity, consiclering that the traffic
imprwsaerrts with Fii�way 65/Central Avenue have not been scheclule� yet.
Woula the develognerrt, if it pro�ecl5 this Qonstruction season, cause tuiclue
loads on the residential streets direc�ly to the n�orth?
1Kr. Robertson stated he and Mr. Newman met with the developer, Charles Cook,
this week and suggested Mr. Cook meet with the City Cotuicil to try to
resolve these issues Y�efore proceeding any further. F�rltially, he can go
with half the project imder the current zoning Mr. �ok woula like to do
�
� �� _ .�� • i �f�?� ��_,���14���? ' �i�� � � ��_ V���{� �._ 11�z_�<�i: _ 1
� the wY�le project which would be a better project and it would have a lot
more merit for the �RA to participate in in some way.
Mr. R+�bertson stated that because of the questions raise� by the City
Co�cil, Mr. Cook had adviseal him to have this as ar� ir�formational item only
for the flRA at this time. Mr. Cook will be meeting with the City Co�cil to
try to resolve the issues raised and when those isst�s are resolve�, he will
a�me Y�ck to the HR�1.
Mr. Newman skatecl it was also e�,alained to l�rc. Cook in their meeting that
the assi�ttanee he is requ�sting f raa the HRA was probably c�eater than what
the HRA has ger�rally prwide� in the �st. He bel ievecl Mr. Cook was merely
maki.ng that request in or�r to have a c�� f irnn position in which to begin
his r�gotiations.
Mr. Conuners stated there was a similar project before the HRA by 011ie
Erickson for this sa�ne property. He stated staff should get a copy of the
minutes when that �oject was discussed, because there were isst�s raiseol at
that time.
���L����V�z_ _ � �.� .�'�_ 1.!'j�1�i�� i ��i.��__ M���� �� ��� _.S, ' ���i��
1Kr. Robertson statecl that in November �aff informed the I3RP, of the process
whereby the floo�ed walkways were being replaced by bridges. At that time,
he haol tol� the HRA he would keep them up to da�e on how the project was
^ proceeding. He stated the original bu�get appropriatea by the HRA in
Novenber vaas for $350,000, and they are still imder that luclget amowit. He
stated he woul� continue to keep the FiRA posted of the progress.
8. S�ASMS (1721 - 1730) :
� by Mr. Meyer, seoonc�d },y Mr. Prairie, to approve the check register
as preserited.
�• • � • � � � � �e , M- •�a�- r; . �• � �• � � � � �� . . •
�, . . � , �,r � :r �
• � :ra�� � �� ._�
a. City Hall R�todel ing
Mr. Nleyer stated he hacl read a re�ent article in the Fridley Fbcus about
the remodel i.ng of City I�all. I�e read that the Ci ty had gone the
oonstruction manao�r rotate rather than going out for bids for a general
o�oritractor. Dic1 the HRA have any say a.n that process?
Mr. Robertson stated the HRA was involved in a meeting with the City
CA�ci1 regarding the renoo�].anc� but at that time, this was not on the
table. He stated he did inform the HRA that Boarman had suggestecl to
the City Cotmcil that the City q+� with a�onstruction manager.
� Mr. Prairie statec] he wondered what reasons Boannan had for suggesting
_c}
: r� � �. .. � �?i/?�.!a�uia��:�_ �_�,��l:,� � �G� uiala,�Y �: ur_ :.�: i
� that, bec��e Park Construction's experienoe with o�nstruction manac�eers
' had not been good at a7.1, fro�a the awwr�r's standpoint.
Mr. Meyer stated he really dicl not imderstand the reasoning behind cping
with a construction manager to su�rvise the �nstruction. What
ooncerned him was that if the HRA was �ing to be in on the "crash
landing", ttaey should be in on the "take-off" too. The HRA has a
responsibil ity to the proj ect irb some fashion. Usually the oraly time a
v�nstruction mar�c,�er of a fast track situation really c�ins something is
wY�en somne designated d�llars can be saved because a job is cbne 3, 4, 6
�ths early, and when the arcllitect/engineers haven't started their
johs yet anal the work has to be phased.
Mr. Prairie stated that initially the reasoning socui ls good, but from
lv.s experienoe, it has not been goocl to go with a v�nstruction manager.
General contractors who have been around a long time stake their
reputation on nbing a gc�od job. He did no�t think construction managers
ha� been aroimcl too long and have very little net worth. If things do
not work out, they just fold up. A general contractor an� a
sub,contractor have to live witta each other. 7l�e oonstruction managers
can c10 whateaer they want and it just doesn't alvrays work. Park
Construction has not bia some johs beca.use a construction manager was
�oing the proj ect. And, then you do riof always get the lawest prive.
Mr. Comaners stated staff should take these concerns, regarcling a
^ aonstruction manager versus a c�neral oontractor and the fact that the
HRA was not oonsulted before a decision was made, to the City Council
ana then oome back with some answers to the r�ext HRp, meeting.
Mr. Robertson stated that in order to try to firiish the job as quickly
as possilale becat�e of the ciisruption in the operatons in the Civic
Center, it was felt it would be c�ntrollecl better by having an on-site
�or�struction supervisor representing the client and setting up the
bi�iin�
Mr. Meyer stated he tndlerstaod what Mr. Robertson was saying but he �vas
still puzzled by the decision.
Mr. Robertson statea he woulcl �ertainly try to take the HRA's concerns
to the City Coimcil and brirag back some answers.
Mr. P�yer stated he would 1�.ke the HRA's aonaerns preserite� prior to the
sic�ing of the aontract.
�������!��
� by Mr. Prairie, eeoonded �i Mr. Meyer, to adjourn the meeting. Upon
a voiae vate, all voting aye, Ci�airperson Commers declarec7 the Nlarch 10,
19�8. Housing & Redevelopaent Authority meeting adjourned at �:49 p.m.
Respectfully subaittecl,
� a�
L Saba� oorchng Secretary
-10-