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HomeMy WebLinkAbout1993/08/02 - ADMIN - Agenda Packets - Economic Development Authority - RegularAGEND A ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PAR K, MINN ESOTA Monday, August 2, 1993 6:45 p.m. 1. Call to order 2. Roll call 3. Approval of minutes of July 19, 1993 meeting JJjf fvl 4. Approval of agenda for August 2, 1993 JJ/ G H- {5 -O 5. Reports Park Nicollet Medical Center 5-0 a. Extension of deadline for construction commencement at Tower Place and extension of date for establishment of hazardous substance tax increment subdistrict -O ) Action: Motion to approve extensions l)/('tt b. Construction Manager agreement for the construction of Tower Place parking ramp Action: Approve and authorize Executive Director to enter (/l/).J into a Construction Manager agreement with Kraus-Anderson ( 5_0 c. Pile foundation system for the parking ramp at Tower Place Action: Approve plans and staff and EDA Construction bids for the project 6. Unfinished business specifications and direct city J]/j_[ Manager to advertise and receive '/[ 6-0 . ~q~ a. STS Consultants, Ltd.: Contract amendment - Services at -//'- former Wilkins Pontiac site ) lH! j Action: Motion to authorize execution of contract amendment :)I? 7. New Business 8. Communications and Bills a. Monthly financial statement b. Vendor claims 9. Adjournment or#/4 ;/Cr# 6o R E Q U E S T- FO R E D A A C T IO N DATE Aug. 2, 1993 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Administration /rs ITEM: Extension of deadli ne for Phase I con- APPROVED: struction commencement at Tower Place NO. Sa and extension of date to est ab 1 i sh the Le Administrative Asst. hazardous subdistrict tax increment BACKGROUND subdistrict The construction schedule in the private development contract between the EDA and Park Nicollet Medical Center Holdings (the redeveloper) of the Tower Place site stipulates that the deadline for construction commence- ment shall be July 31, 1993 (Section 9.3(c). The contract states that the EDA and redeveloper anticipate that there may be changes to the construction schedule, such changes only to be made as a result of unavoidable delays or by mutual agreement. If the changes are by mutual agreement, it shall be in the form of either amendments to the private development contract or amendments to the construction plans. ) The deadline for establishment of the hazardous substance tax increment sub- district was June 15, 1993 but was delayed until the EDA meeting on June 21. This did not, nor will not, delay or harm Park Nicollet Medical Center Holdings financing or constructing of the project elements. The purpose for the amendment is to c 1 ari fy in the contract that the date for est ab 1 ish- i ng the subdistrict was after June 15. (Section 6.3(a)). Discussion The redeveloper is requesting an extension of the deadline for Phase I construction commencement from July 31, 1993 to September 30, 1993. (See letter from Park Nicollet attached). The Authority is requesting an extension of the date to establish the hazardous substance tax increment subdistrict from June 15, 1993 to June 30, 1993. Recommendation: It is recommended the EDA authorize an amendment to the private development contract between the EDA and Park Nicollet Medical Centerr Holdings to: PUBLIC WORKS ApDpqOVAL AINED FINANCE APPROVAL OBTAINED CO M M U N 1 I Y DUE VELOH. APPROVAL OBTAINED APPROVAL OBTAINED MANAGER'S J1l APPROVAL OBTAINED Cl ,v1_.,, COUNCIL ACTION: MOTION BY 2NDBY TO ----------- ----------- ------ l . E x t e n d t h e d e a d l i n e f o r c o n s t r u c t i o n c o m m e n c e m e n t o f P h a s e I o f t h e T o w e r P l a c e s i t e f r o m J u l y 3 1 , 19 9 3 t o S e p t e m b e r 3 0 , 19 9 3 ; 2 . E x t e n d t h e d a t e t o e s t a b l i s h t h e h a z a r d o u s s u b s t a n c e t a x i n c r e m e n t s u b d i s t r i c t f r o m J u n e 15 , 19 9 3 t o J u n e 3 0 , 1 9 9 3 . a t t c h . O P ark N ico llet M ed ica l C en ter 5000 Wes: 39tn Street Minnaadlis, Minnesota 55416 812/92773123 C July 22, 1993 JUL 2 8 1gs Mr. Charlie M eyer, Executive Director St. Lo uis Park Economic Development Authority 5005 Mi nnetonka Boulevard St. Lo uis Park, Minnesota 55416 ) Dear Mr. Meyer: A ccording to the term s of the Red evelopment Agreement entered into between PNMC Holdings and the St. Louis Park Economic Development Authority, the commencement date of th e co nstru ction of the PNMC Holdings portion of th e projec t is July 30, 1993. As you kn ow , w e have bee n aggressively proceeding with planni ng, th e due diligence proc ess for finan cing, an d appro val of th e Indirect Sour ce Permit (ISP) from the MPCA to adhere to th e pro po sed sched ule. W ith in the curre nt schedule, we have been unable to complete all of the work necessary to commence by July 30, 1993. PNMC Holdings respectfully requests an extension of the com m en cem ent date until September 30, 1993, W e will continue to aggressively move forw ard to complete the necessary steps to achieve the am ended date. Please forw ar d thi s req uest to th e Economic Development Authority for their approval. Sincerely, , A y c<kt John R. DeCoster, Director Real Estate Services c: Phil Boelter Doug Franzen Randy McKay Joseph Mitlyng Jim Steiler Bill Telleen R E Q U E S T- F O R E D A A C T I O N DATE August 2, 1993 AGENDA SECTION: NO. 5 Reports ORIGINATING DEPARTMENT: Administration ITEM: Construction manager agreement for the construction of Tower Place No.9 parking ramp APPROVED: \~inistrative Asst. BACKGROUND Background The City Manager presented a report to the EDA at its June 14, 1993 study session that discussed entering into an agreement with Kraus-Anderson at a 3% fee to supervise and coordinate on behalf of the City the construction of a parking ramp at the Tower Place site. ) The June 14 report included a list of advantages and disadvantages. The City Manager recommended that the EDA approve a contract with Kraus-Anderson stating that a construction manager arrangement will allow for an early and orderly construction process that would outweigh most of the disadvantages of the arrangement. At that time, the EDA appeared receptive to the plan and requested that a formal report be prepared for its consideration. Discussion Perhaps the primary consideration for using a construction manager is that City staff is already heavily involved with other aspects of the Tower Place project, and the availability of staff time to coordinate the construction of the parking ramp under the desired schedule is questionable. Provisions of the agreement would include: 1. Kraus-Anderson would not be allowed to bid on any construction contracts. 2. Kraus-Anderson's role is analogous to a primary contractor: they recommend award of contracts to the EDA for all subcontractors using the competitive bidding process. (continued) PUBLIC WORKS " 7O V AL +- 4N E D FINANCE APPRO VAL O BTAINED COMMUNITY UEVELUH. APPROVAL OBTAINE D APPRO VAL OBTAINED MANAGER'S APPROVAL /}, 9, OBTAINED /47 COUNCIL ACTION: MOTION BY 2ND BY TO 3. Contracts for the foundation and footings, structure, mechanical and electrical would be awarded separately and in stages as construction progresses. Recommendation: It is recommended that the EDA approve and authorize the Executive Director to enter into a construction manager agreement with Kraus-Anderson for all activities related to the construction of the parking ramp for the Tower Place project. R E Q U E S T F O R E D A A C T IO N DATE August 2, 1993 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Administration ITEM: Pi 1 e foundation system for the parking APPROVED: ramp at Tower Place NO. 5c ®L Administrative Asst. ) Background The Redevelopment Agreement (3-30-93) with Park Nicollet Medical Center Holdings includes a provision whereby the redevelopers may develop in conjunction with City staff the specifications for the public elements of the Tower Place project (namely, the parking ramp and public infrastructure) prior to the City's conveyance of the Tower Place land and then sell the designs to the EDA once the EDA is prepared to advertise for and receive bids. The City Charter requires that the above-listed project elements must go through the public bid process. Discussion One feature of the construction manager form of contract is that it allows the various project elements to be staged as plans are developed. This, in turn, allows for an early start of construction. At this time the plans and specifications for the parking ramp pile foundation system are ready to be placed for bidding. City staff has reviewed and approved the construction plans for this portion of the project. If the EDA were·to authorize staff tonight receive bids on the pile foundation system, for award of contract could be presented to 7 with the start of construction to thereafter. to advertise for and then a recommendation the EDA on September follow immediately Recommendation: It is recommended the EDA approve the plans and specifications for a pile foundation system for the Tower Place parking ramp and authorize and direct City staff and the EDA's PUBLIC WORKS ·o PRO VAL y- INED >- FINANCE APPRO VAL OBTAINED COMMU NL I Y UE VtLUH. APPROVAL OBTAINED APPROVAL OBTAINED MANAGER'S APPROVAL / /2J osTAIN= / AJ } I COUNCIL ACTION: MOTION BY 2ND BY TO c o n s t r u c t i o n m a n a g e r t o a d v e r t i s e a n d r e c e i v e b i d s f o r t h e p r o j e c t . S t a f f n o t e : A r e p o r t o n t h e c o n s t r u c t i o n p l a n s a n d s p e c i f i c a t i o n s fo r t h e p a r k i n g r a m p a r e s c h e d u l e d t o b e p r e s e n t e d t o t h e E D A o n A u g u s t 1 6 . A t th a t t i m e , s t a f f w i l l r e q u e s t t h a t t h e E D A a p p r o v e th e p l a n s a n d a u t h o r i z e s t a f f t o p u t t h a t p o r t i o n o f t h e p r o j e c t o u t f o r b i d . • R E Q U E S T- F O R E D A A C T IO N DATE August 2, 1993 AGENDA SECTION: NO. 6 Unfinished Business ORIGINATING DEPARTMENT: Public Works ITEM: NO. 6a Contract Amendment - STS Consultants Ltd services at the fo rmer Wilkins Pontiac site APPROVED: q /J ~ • .I- dames N. Grube <Zr Director of Public Works ) Synopsis: T his report addresses the current contract relationship the Economic Development Authority (EDA) has with STS Consultants Ltd (STS) for professional services related to the preparation of the former Wilkins Pontiac (Wilkins) site and recommends the EDA authorize execution of an amendment to the professional services contract. Background: Presently the EDA has a contract with STS to provide professional services related to the preparation of the former Wilkins site (5100 Excelsior Boulevard) for redevelopment. STS has provided oversight in the removal of asbestos containing material, demolition of the Wilkins building, removal of underground tanks, and remediation of environmental impacts. The professional services contract is in the amount of $53,400. Discussion: Prior to demolition of the Wilkins building in the second quarter. of 1993, site preparation activities proceeded without significant incident; however, on May 25, during floor slab removal, the demolition contractor advised STS that discolored soils with a strong odor had been encountered. At the direction of EDA staff, STS directed the contractor to excavate test pits west of the building. The test pit excavation. was conducted on June 2, and approximately 500 cubic yards of used oil impacted soils were generated. In conjunction with the soil excavation, STS retrieved soil samples for laboratory analysis and notified the Minnesota Pollution Control Agency (MPCA) of the encounter. On June 8, 1993 an additional 110 cubic yards of lead impacted and petroleum impacted soils were excavated at the site. At the direction of EDA staff, STS oversaw the excavation of additional test pits at the site and additional soil sampling occurred. In addition, soil borings were taken at various locations and soil samples were retrieved for further analysis to determine the extent of petroleum and lead impacts. The additional activities were conducted between June 15 and June 28. It was not until early July that laboratory results confirmed that the soils had been impacted by lead and used oil. Records generated during the Wilkins building demolition and subsequent soil remediation process indicated that hydraulic lift pits located in the vehicle repair area were identified as major contributing factors to the used oil impacts. (continued) PUBLIC WORKS Ar> VAL o. a= APPROVAL OBTAINED APPROVAL OBTAINED APPROVAL OBTAINED executive Director APPROVAL /) }-,,, oerzuvs AJ7 COUNCIL ACTION: MOTION BY 2NDBY TO ----------- ----------- ------ As a result of the contractor and STS activities of May and June, 1993, the bulk of the impacted soils have been stockpiled, characterized and are prepared for disposal. In addition, STS has identified the location and quantified the volume of impacted soils which must be removed. At the direction of EDA staff, STS has prepared soil handling and disposal documents for review and approval by the MPCA. Preliminary discussions with MPCA staff indicate approvals are imminent. Staff directed that the above STS, contractor, and laboratory activities be expedited to render the site prepared for development by September 1, 1993 so that the site redeveloper could begin site improvements in September or October. Financial considerations: On July 19, 1993 staff reported to the EDA that STS' activities of late May and June were beyond the original scope of the professional services contract and that it was likely that up to $38,000 had been expended during that time. In STS correspondence received in late July, the extra costs were determined to be $28,803.30, a 54 percent increase over the approved contract amount of $53,400. In addition to the additional $28,800 cost incurred through mid-July, it is estimated STS will incur an additional $32,100 in costs to complete all field oversight, reports and testing necessary to gain approvals from the MPCA. Based on the information provided above, the STS contract should be amended from $53,400 to $114,303.30 (say $114,400). A review of the Wilkins site preparation budget indicates the amendment of the STS contract to $114,400 will essentially exhaust the $258,000 total budget. Staff is in the process of updating the total budget for the site preparation based on MPCA response to EDA/STS soil handling and disposal proposals. A more complete budget summary should be available by August 16, 1993. In the meantime, it is imperative that the EDA and STS continue their efforts to complete site remediation activities by September 1, 1993 so MPCA clearances can be attained by October 1, 1993. Recommendation: It is recommended that the Economic Development Authority authorize execution of a contract amendment with STS Consultants Ltd, increasing the contract amount for professional services related to the preparation of the former Wilkins Pontiac site (5100 Excelsior Boulevard) to $114,400. cmr \ August 2, 1993 ED A TO: Economic Development Authority THROUGH: Charlie Meyer, Executive Director, ( FROM: Kathleen McBride, Finance Directs--/!!' Don Rambow, Asst. Finance Director JU/ SUBJECT: July, 1993 EDA Monthly Statement ) The Combining Statement of Revenue and Expenditures, the Individual Statement of Revenue and Expenditures and the Schedule of Investments provides in summary form the financial position of the EDA. Revenue co 11 ect ions reflect the May tax increment settlement received from Hennepin County and interest received on investments which matured during July. Significant expenditures reflect reimbursement for the Cityscape Project pursuant to the June 26, 1992 memo, legal services for April and demolition work on the Wilkin's site. e St. Louis Park Economic Development Authority Combining Statement of Revenue and Expenditures Budget and Actual For Period Ending July 31, 1993 YTD Balance Percent Collected/ Uncollec./ Collected/ Budget Expended Unexpend. Expended Revenue -------- --------- --------- --------- ------- Tax increment $2,331,371 $1,593,027 $738,344 68% Rent 4,680 2,730 1,950 58 Interest 555,000 528,508 26,492 95 Transfers 4,057,652 504,000 3,553,652 12 Refunds & Reimburse 175,000 225,000 (50,000) --------- --------- --------- Total Revenue 7,123,703 2,853,265 4,270,438 40 --------- --------- --------- Expenditures ------------ Administrative Salaries 84,000 26,500 57,500 32 Employee benefits 17,170 5,345 11,825 31 Supplies & other chgs. 5,420 2,181 3,239 40 Legal 7,200 1,922 5,278 27 Contractual 1,700 600 1,100 35 Planning 10,000 17,491 (7,491) 175 --------- --------- --------- Total Administrative 125,490 54,039 71,451 43 --------- --------- --------- ) Project Cost Appraisal/survey Legal 75,000 70,466 4,534 94 Environ. analysis 43,300 23,905 19,395 55 Public improvement 6,743,500 390,086 6,353,414 6 Relocation/demolition 95,000 77,266 17,734 81 Property taxes 74,362 74,362 Acquisition 1,824,800 164,704 1,660,096 9 Environ. remediation 62,500 62,500 Referendum payment 340,000 340,000 Property Maintenance 16,500 2,257 14,243 14 Other services 30,500 3,667 26,833 12 Transfers 3,553,652 3,553,652 ---------- --------- ---------- Total Project Costs 12,859,114 732,351 12,126,763 6 ---------- --------- ---------- Debt Service Bond interest 504,000 252,000 252,000 50 Transfer 504,000 504,000 100 Inter-govt., City 620,000 620,000 100 Bond agent fees --------- --------- --------- Total Debt Service 1,628,000 1,376,000 252,000 85 ---------- --------- ---------- Total Expenditures 14,612,604 2,162,390 12,450,214 15 ---------- --------- ---------- Revenue over (under) Expenditures (7,488,901) 690,875 (8,179,776) (9) --------- --------- --------- --- .J --------- St. Louis Park Economic Development Authority Individual Statement Of Revenue And Expenditures For Period Ending July 31, 1993 Excelsior Oak Park Trunk Capital Debt Revenue Blvd Village Hwy 7 Projects Service Total ------- --------- -------- ------- -------- ------- ------- Tax increment $1,031,179 $199,755 $362,093 $ $ $1,593,027 Rent 2,730 2,730 Interest 327,497 34,422 41,920 108,331 16,338 528,508 Transfers 504,000 504,000 Refund/reimburse 225,000 225,000 --------- ------- ------- ------- ------- --------- Total Revenue 1,583,676 236,907 404,013 108,331 520,338 2,853,265 --------- ------- ------- ------- ------- --------- Expenditures ------------ Administrative Salaries 11,695 5,825 8,980 26,500 Employee benefits 1,811 1,126 2,408 5,345 Supplies & other chgs. 1,275 468 438 2,181 legal 641 642 639 1,922 Contractual 160 160 280 600 Planning 17,491 17,491 --------- ------- ------- ------- ------- --------- Total Administrative 33,073 8,221 12,745 54,039 --------- ------- ------- ------- ------- --------- Project Cost 'Appraisal/survey legal 70,466 70,466 Environ. analysis 21,205 2,700 23,905 Public improvement 12,371 377,715 390,086 Relocation/demolition 77,266 77,266 Property tax Acquisition 40,074 124,630 164,704 Re erendum payment Property maintenance 2,257 2,257 Other services 847 2,820 3,667 --------- ------- ------- ------- ------- --------- Total Project Costs 224,486 507,865 732,351 --------- ------- ------- ------- ------- --------- Debt Service Bond interest 252,000 252,000 Transfer 504,000 504,000 Inter-govt., City 620,000 620,000 Bond agent fees --------- ------- ------- ------- ------- --------- Total Debt Service 1,124,000 252,000 1,376,000 --------- ------- ------- ------- ------- --------- Total Expenditures 1,381,559 8,221 520,610 252,000 2,162,390 --------- ------- ------- ------- ------- --------- Revenue over (under) Expenditures 202,117 228,686 (116,597) 108,331 268,338 690,875 ========= ======= ======= ======= ======= --------- =.O ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY SCHEDULE OF INVESTMENTS JULY 31, 1993 Date Investments -------------------- Institution/Type Yield Purchase Maturity Balance ---------------- -------- -------- ------- 1st Banks - FC 5.21 12-03-91 08-02-93 $950,000 Park National - C.D. 4.55 05-05-92 09-13-93 1,000,000 Park Investment - Treas. 4.67 06-02-92 09-30-93 975,000 1st Banks - FHL 6.09 10-25-91 10-25-93 2,250,000 Dain Bosworth-Treas. 3.59 10-26-92 11-15-93 2,513,944 1st Banks - FC 3.77 12-10-92 12-01-93 750,000 Dain Bosworth - FC 4.03 07-08-92 12-02-93 1,000,000 Park Investment - C.P. 3.47 06-10-93 01-10-94 1,176,010 Park Investment - FNMA 4.08 07-10-92 01-10-94 955,000 Paine Webber - FHL 3.53 09-10-92 01-25-94 820,100 Dain Bosworth-Treas. 3.4 2 09-10-92 01-31-94 390,229 Park National - C.D. 3.75 02-02-93 01-31-94 500,000 1st Banks - FHL 3.9 2 08-10-92 02-25-94 465,443 1st Banks - FHL 4.30 12-01-92 02-25-94 1,060,759 1st Banks - FHL 5.35 02-28-91 02-28-94 500,000 ) 1st Banks - FC 5.8 0 04-01-92 04-04-94 1,000,000 Dain Bosworth - Treas. 3.75 10-13-92 04-15-94 1,013 ,055 1st Banks - Treas. 4.18 11-02-92 04-30-94 1,050,000 Dain Bosworth - Treas. 4.0 9 12-28-92 04-30-94 650,000 Dain Bosworth - FNMA 4.25 12-28-92 05-22-94 518,551 Park National - C.D. 3.50 03-01-93 05-22-94 1,000,000 Dain Bosworth- Treas. 3.61 03-31-93 07-31-94 1,015,208 Park National - C.D. 3.55 04-30-93 09-07-94 1,250,000 1st Banks - Treas. 3.57 07-07-93 09-30-94 1,015,757 4M Fund Various Open 1,019,763 ---------- Total Investments $24,838,819 ---------- Legend: C.D. = Certificate of Deposit C.P. = Commercial Paper F.C. = Farm Credit F.N.M.A. = Federal National Mortgage Assn. F.H.L.B. = Federal Home Loan Bank Treas. = U.S. Treasury Bonds Gov't Agencies = Term U.S. Government Securities V E ND O R CL A IM S E c o n o m i c D e v e l o p m e n t A u t h o r i t y -S t . L o u i s P a r k A u g u s t 2 , 1 9 9 3 V e n d o r F i r s t T r u s t C e n t e r M i n n . Su n P u b l i c a t i o n s N o b l e N u r s e r y R e t a i l In c . P o p h a m , H a i k , Sc h n o b r i c h C i t y o f St . L o u i s P a r k St r g a r -R o s c o e -F a u s c h In c . ST S C o n s u l t a n t s L t d . T O T A L D e s c r i p t i o n B o n d s & interest Publish & advertise Landscaping services Legal services - May Constr. cost-TH7 & La. Ave. Excel. Blvd. Traffic Study Engineering services Amount $ 252,000.00 36.00 15,553.99 16,761.00 1,432,044.92 4,485.60 17,550.68 $1,738,432.19 Accounting Dept._'--K'-'--.~-~~-L----Dated _ _,_z~~--t.L...L-f_'1_3_ Executive Director_r--~..,,c.•~~~~--✓'--· --=-~-'---~--Dated_)._',~M-~'---L-.-=:J- PO PHAM , HAIK, SCHNO BRICH, & KAUFMAN, LTD. REMIT TO MINNEAPOLIS OFFICE 3300 PIPER JAFFRAY TOWER 222 SOUTH 9TH STREET MINNEAPOLIS. MINNESOTA 55402 TELEPHONE 612--333-4800 DENVER OFFICE 1200 SEVENTEENTH STREET SUITE 2400 DENVER. COLORADO 80202 TELEPHONE 303-893- 1200 WASHINGTON OFFICE 1300 STREET N.W. SUITE 500 EAST WASHINGTON. D.C. 20005 TELEPHONE 202-962- 8700 MIAMI OFFICE 4000 INTERNATIONAL PLACE 100 S.E. SECOND STREET MIAMI, FL 33131 TELEPHONE 305--530-0050 Client No: 11959 Page: 17 St Louis Park Economic Development Authority June 30, 1993 PLEASE RETURN THIS PORTION WITH REMITTANCE ST LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY MATIER TIME PROFESSIONAL EXPENSES FEES 4 MEETINGS 2.0 HOURS $ 383.25 $ .00 5 ON THE A VENUE 17.9 HOURS $ 2,267.00 $ 52.89 ) 13 SUBURBAN 2.0 HOURS $ 420.00 $ .00 PLUMBING 14 PARK NICOLLET 29.0 HOURS $ 6,083.00 $ 10.78 15 TOWER SITE 35.9 HOURS $ 5,809.50 $253.57 WATER TOWER 11.1 HOURS $ 1,104.00 $377.01 16 REGISTRATION TOTAL: 97.9 HOURS 16,066.75 $694.25 Popham, Haik. Schnobrich, & Kaufman, LTD. 3300 Piper Jaffray Tower • 222 So. 9th St. • Minneapolis. MN 55402 5555511D NUMBER 41-0947885