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HomeMy WebLinkAbout1993/10/04 - ADMIN - Agenda Packets - Economic Development Authority - Regular\ , AGENDA ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA October 4, 1993 1. Call to order 2. Roll call 3. Approval of minutes Ly/GD 6c b. September 13 special meeting JJ/ a-+ b - 0 4. Approval of agenda for October 4, 1993 JJ/ /_M a. September 7 meeting (o- O 5. Reports a. Suburban Plumbing project 1. Approval of exterior color of structure b. Park Nicollet project J/GH- o ) 1. Request for time/extension from Frauenshuh to commence construction C/l'J J (o-o 2. Request for time extension from Park Nicollet to commence construction 1 GV\J\ - ~-D 3. Award of bid for parking ramp a. Bid tabulation: Tower Place parking ramp foundation system GHZ) lo- b. Bid tabulation: Tower Place parking ramp G(©/JJ d, TN G/'JJ- b-0 c. Oak Park Village 1 . Oak Park Village parking lot - J/6 Q Closed meeting: Claim for damages on Wilkins Pontiac site (pending litigation) /N O ] -0 6. Communications and bills a. September financial statement b. Vendor claims 7. Other business /MM to J1/CH tG-o 8, Adjournment - REQUEST FOR EDA ACTION DAT£October 4, 1993 AGENDA SECTION: Reports NO. s ORIGINATING DEPARTMENT: Comm unitv Development ITEM: Approval of Exterior Color - Suburban Plumb ing Structure NO. 5a David Hagen, Director BACKGROUND At the special EDA meeting on Septemb er 13 the construction plan was approved subject to approval of the exterior color of the proposed building prior to conveyance of land owned by the EDA for the project. A buff colored drive-vit (stucco-like) and tan burnished block exterior with a reddish accent stripe is proposed for the building. Color samples of the proposed exterior will be available at the meeting. Blue is the predominant accent color used in the Highway 7 corridor. To enhance the sense of identity of the corridor it is recommended that blue accenting be used. R ecomm endation By motion approve the color scheme proposed with the condition that blue rather than red be used as the accent color. 4463:GEN44 PUBLIC WORKS PPROVAL \ 3 TAINED FINANCE APPROVAL OBTAINED COMM APPROVAL OBTAINED APPROVAL OBTAINED ! Executive Director APPROVAL OBTAINED ACTION: MOTION BY 2NO BY TO R E Q U E S T FO R E D A A C T IO N DATE October 4, 1993 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Coiiini 'y Development ITEM: NO. Request for Time Extension from Frauenshuh to Commence Construction ,. APPROVED: # David Hagen, Director 2£) F BACKGROUND In the construction schedule in the private development agreement between the EDA and Frauenshuh Companies of the Tower Place commercial site, it is stipulated that the deadline for construction commencement shall be September 30, 1993 (Section 9.3(c) .) The contract states that the EDA and Frauenshuh Companies 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. Discussion ) Frauenshuh Companies is requesting an extension of the deadline for Phase 1 construction commencement from September 30, 1993 to April 1, 1994 (see letter from Frauenshuh attached). It is a requirement of the ISP as issued that the off-site roadway improvements be complete before Phase 1 is occupied. The off-site roadway improvements will be completed by about July 1, 1994. It will take Frauenshuh about three months to complete construction of the first of the commercial components. If construction of that component begins on April 1 it will be completed by July 1. The value of the property and improvements as of January 1, 1994 dictates the taxes that will be generated in 1995. Under the Contract for Private Redevelopment, Frauenshuh has agreed to pay full taxes on the project in 1995 even though the improvements may not be completed by January 1, 1994. Recommendation: It is recommended that the EDA authorize an amendment to the private development contract between the EDA and Frauenshuh Companies to extend the deadline for construction commencement Phase 1 of the Tower Place commercial site from September 30, 1993 to April 1, 1994. 4459:GEN43 PU8LIC WORKS APPROVAL C JED \Joss»Joss»loss»ANN»Also»ANNONA»~ FINANCE APPROVAL OBTAINED COMMUNI I 1 Ut VELU APPROVAL APPROVAL~- OBTAINED OBTAINED Executive Director APPROVAL / -». OBTAINED (CL!} ACTION: MOTION BY 2ND BY TO Septem ber 29, 1993 FRAUENSHUH COMPANIES A DIVERSIFI ED PROPERTIES GROUP Mr. Charlie Meyer, Executive Director St. Louis Park Economic Development Authority 5005 Minnetonka Boulevard St. Louis Park, MN 5 5416 RECEIVED SEP 3 O 1993 ADMINISTRATION CITY OF ST. LOUIS PARK Dear Mr. Meyer: Pursuant to the terms of the Redevelopment Agreement entered into between Frauenshuh Companies and the St. Louis Park Economic Development Authority, the commencement date of the construction of the Frauenshuh Companies portion of the project is September 30, 1993. As you know we have been working diligently to adhere to this scheduled date. However, as you are also aware the Indirect Source Permit ("ISP") which was received last week, precludes us from opening our retail development until substantial completion of the off-site roadway improvements is achieved. According to the current schedule for the roadway improvements, substantial completion of the off-site roadway improvements will not be achieved until July or August, 1994. Due to the short construction time frame associated with our retail buildings (approximately 4 months), a 4th quarter of 1993 construction start, would mean that our buildings would sit empty, not producing rent, for a period of 4 to 5 months. As this is not economically feasible, we need the ability to start construction in the 2nd quarter of 1994 and as such we request an extension of our construction commencement date under the Redevelopment Agreement until April 30, 1994. We will be requesting an amendment to the ISP so that we could occupy our buildings prior to substantial completion of the off-site improvements. We will continue to vigorously proceed with development of our project, with the hope that we might be afforded an earlier occupancy opportunity. We will continue to aggressively move forward to ccmplete the necessary steps to achieve the amended date. Please forward this request to the Economic Development Authority for their approval. Sincerely, £ENS Randy McKay cowwsviEs, J ., cc: David Frauenshuh Robert Straughn Doug Franzen John DeCoster 900 LASALLE PLAZA 800 LASALLE AVENUE MINNEAPOLIS, MN 55402 (612) 342-2200 r v1al frnrtiirit Fr nlru@r RE Q U E S T - FOR EDA ACTION DATE ---------- Oct. 4, 1993 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Administration ITEM: Park Nicollet request for time extension APPROVED: for Phase l construction at Tower Place NO. 5b2 Robert Larson BaCKground 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 commencement 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. At its August 2, 1993 meeting, the EDA and the redeveloper agreed to extend the deadline for construction commencement to September 30, 1993. Discussion The redeveloper at this time is requesting another extension of the deadline for Phase 1 construction commencement from September 30, 1993 to November 1, 1993 (see letter from Park Nicollet attached). The value of the property and improvements as of January 1, 1994 dictates the taxes that will be generated in 1995. Under the Contract for Private Development, Park Nicollet has agreed to pay full taxes on the project in 1995 even though the improvements may not be completed by January 1, 1994. Recommendation: It is recommended the EDA authorize an amendment to the private development contract between the EDA and Park Nicollet Medical Center Holdings to extend the deadline for construction commencement of Phase 1 of the Tower Place site from September 30, 1993 to November 1, 1993. PUBLIC WORKS A rogQV AL AINED FINANCE APPROVAL OBTAINED COMMUN1 I Y UEVELUH. APPROVAL OBTAINED APPROVAL OBTAINED MANAGER'S~ APPROVAL OBTAINED COUNCIL ACTION: MOTION BY 2ND BY TO R E Q U E S T F O R E D A A C T IO N DATE October 4, 1993 AGENDA SECTION: NO. ORIGINATING DEPARTMENT: Community Development ITEM: Park Nicollet Project Approval of Construction Plans NO. David Hagen, Director BACKGROUND According to the Contract for Private Redevelopment, prior to commencement of construction of any Project Element, the Authority is required to approve construction plans for that element. Construction plans for the Park Nicollet Medical Center West Lot Building Phase I and the Mall Medical Office Building Phase I have been submitted and were approved by the City as part of the PUD. Recommendation By motion approve the construction plans for the Phase I West Lot Building and the Phase I Mall Medical Office Building. ) 4464:GEN44 PUBLIC WORKS APPROVAL ·"4AINED O FINANCE APPROVAL OBTAINED COMUNI I 1 UVtELuH. APPROVAL OBTAINED APPROVAL OBTAINED Executive Director APPRoAL. /2 osrweo 'l7 ] I ACTION: MOTION BY 2NOBY TO Park Nicollet Medical Center 5000 West 39th Street Minneapolis, Minnesota 55418 612/927/3123 { September 29, 1993 Mr. Charlie Meyer, City Manager City of St. Louis Park 500 5 Minnetonka Bo ulevard St. Lo uis Park, Minnesota 55416 ) Dear Charlie: As you are aware, PNM C Holdings is scheduled to close on the bond sal e on September 30, 1993. With the quantity and complexity of documentation that had to be executed to accomplish the closure, we have been unable to finalize all the documents required for the conveyance of the land. PNM C Holdings respec tfully requests an extension from the ED A on the commencement deadline until November 1, 1993, to allow for completion of the doc uments for conveyance. PNM C has executed an early conveyance agreement and work has actually proceed ed under that agreement. Thank you for your ear ly attention to this matter and if you would like to discuss further, please let me know. Sincerely, ~ Czf~(, ;t,e!},.Ji,;_, I c·-r hin R. DeCoster, Director eal Estate Services c: Phil Boe lter Bob Larson Joseph Mitlyng Jim Steilen Bil! Telleen . >' RE Q U E S T- F O R E D A A C T IO N DATE Oct. 4, 1993 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Administration ITEM: Bid tabulation: Tower Pl ace parking ramp NO. 5b - 3b APPROVED: Robert Larson ) Background Bids were received and opened September 22, 1993 for the construction of the Tower Place parking ramp. Advertisement for bids was published in the St. Louis Park Sailor on August 25 and September 1, 1993 and in the Construction Bulletin on August 27 and September 3, 1993. Bid documents were also made available for examination at the Minneapolis Builders' Exchange, St. Paul Builders' Exchange, Rochester Builders' Exchange and the Fargo Builders' Exchange. The project was bid as a single prime contract with combined general, mechanical and electrical bids meaning that one general contractor is to be awarded the contract for construction. Bid tabulation The summary of the bid tabulation is listed here from apparent low to high bid: Bidder Adolfson & Peterson Knutson Construction PCL Sheehy Construction Lovering & Johnson Analysis of bids Base Bid $4,263,000 $4,418,000 $4,485,000 $4,691,000 $4,776,000 Add Alternate $35,000 $37,000 $35,000 $35,000 $34,850 Total Bid $4,613,000 $4,455,000 $4,520,000 $4,726,000 $4,810,850 The lowest total bid appears to have been submitted by Adolfson & Peterson. The add alternate for the project was to be an upgrade on the pre-cast concrete finish over and above what was originally discussed with and approved by the EDA. Since it is not a necessary element of the project, staff will recommend that the add alternate not be included in the contract award. PUBLIC WORKS A qQVAL IND FINANCE APPROVAL OBTAINED COMMUN1 1Y UEVtELUH. APPROVAL OBTAINED APPROVAL OBTAINED MANAGER'S/], y > . APPROVAL:((/ ZN( OBTAINED COUNCIL ACTION: MOTION BY 2ND BY TO ------------ ------------ ------ ) There are three outstanding issues yet to be resolved by Park Nicollet as part of the Development Agreement. Staff recommends that these three items become a contingency to the award of contract for ramp construction. They include: approval of the road improvements by the Minnesota Department of Transportation; closing on the land; and a Letter of Credit or cash for costs in excess of the $4.5 million that had been approved by the EDA and Park Nicollet Medical Centers in the Redevelopment Agreement for the construction of the parking ramp. The Redevelopment Agreement stipulates that the redeveloper shall pay all costs in excess of $4.5 million for the construction of the parking ramp. Ramp costs include the pile foundation system, the construction of the ramp, architectural fees and the construction manager fee. In discussion with Park Nicollet staff on Thursday, Sept. 30, they consented to the EDA awarding contracts for the construction of the parking ramp and the parking ramp foundation system with the three contingencies noted above and agreed to pay for all costs in excess of $4.5 million. Recommendation: It is recommended the EDA approve Adolfson & Peterson, Inc. as the lowest responsible bidder for the construction of the Tower Place parking ramp, adopt the attached resolution accepting the bid of Adolfson & Peterson for the construction and authorize execution of a contract in the amount of $4,263,000 contingent upon these three items: 1. Approval by MnDOT of the off-site road improvements; 2. Closing on the land for the Tower Place site; 3. Park Nicollet supplying the EDA with a Letter of Credit or cash for all costs in excess of the $4.5 million for the ramp construction. Evaluation of contractor recommended for the project: Adolfson & Peterson has done a large variety of projects in the Minneapolis- St. Paul metropolitan area. The company is well respected, financially stable and comes with excellent references. R E Q U E S T F O R E D A A C T IO N DATE October 4, 1993 \~------------,--------:----=-----:-::::--:-=:::-:=---------, AGENDA SECTION: ORIGINATING DEPARTMENT: Community Development NO. ITEM: Park Nicollet Project Approval of Construction Plans NO. David Hagen, Director BACKGROUND According to the Contract for Private Redevelopment, prior to commencement of construction of any Project Element, the Authority is required to approve construction plans for that element. Construction plans for the Park Nicollet Medical Center West Lot Building Phase I and the Mall Medical Office Building Phase I have been submitted and were approved by the City as part of the PUD. Recommendation By motion approve the construction plans for the Phase I West Lot Building and the Phase I Mall Medical Office Building. ) 4464:GEN44 PUBLIC WORKS APPROVAL <-4[NED FINANCE APPROVAL OBTAINED COMM APPROVAL OBTAINED APPROVAL OBTAINED Executive Director APPROVAL OBTAINED ACTION: MOTION BY 2ND BY TO REQUEST- FO R EDA ACTION DATE October 4, 1993 ------------ AGENDA SECTION: Reports NO. ORIGINATING DEPARTMENT: Parks and Recreation ITEM: Oak Park Village Parking Lot 5C1 NO. ) Background: At an EDA/Council study session on June 21, 1993 staff was authorized to initiate design work for construction of a 70-car bituminous parking lot with concrete curb and gutter in the south end of Oak Park Village. At a subsequent study session, following completion of design work and specifications, staff was directed to solicit a project proposal (in the form of a change order) from Midwest Asphalt, a paving company currently under contract with the City, for construction costs of the Oak Park Village parking lot. The proposal from Midwest Asphalt (see Public Works report for Council meeting - attached) is $52,788, which is $6,222 less than the original engineer's estimate. Funding: It is proposed that funding for this project be shared between the City and the EDA. A $20,000 appropriation is included in the 1993 Park Improvement Fund Budget. The balance of $32,788 is fundable with tax increment financing as an improvement to the expanded Oak Park Village redevelopment project. Recommendation: Staff recommends that the EDA approve construction of a ! bituminous/concrete parking facility at the south end of Oak Park Village and authorize the expenditure of $32,788 of tax increment funds from the Oak Park Village TIF District. I i I # I I # . PUBLIC WORKS FINANCE COMMUN1 I Y DUE VELUH. MANAGER'S ~ ··oROVAL APPROVAL APPROVAL N APPROVAL APPROVAL FAINED OBTAINED OBTAINED OBTAINED OBTAINED COUNCIL ACTION: MOTION BY 2ND BY TO October 4, 1993 ED A TO: Economic Development Authority THROUGH: Charlie Meyer, Executive Director~ FR OM : Kathleen McBride, Finance Director/\i+ Don Rambow, Asst. Finance Director SUBJECT: September 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 collect i ans refl ect interest received on investments which matured ) during September. Significant expendit ures refl ect reimbursement to the City for EDA salaries and expendit ures fr om April through September, 1 ega 1 fees for June and July and environmental costs associated with the Park Nicollet project. St. Louis Park Economic Development Authority Combining Statement of Revenue and Expenditures Budget and Actual For Period Ending September 30, 1993 YTD Balance Percent Collected/ Uncollec./ Collected/ Budget Expended Unexpend. Expended Revenue Tax increment Rent Interest Transfers Re funds & Reimburse Total Revenue ) Expenditures Administrative Salaries Employee benefits Supplies & other chgs. Legal Contractual Planning Total Administrative Project Cost Appraisal/survey Legal Environ. analysis Public improvement Relocation/demolition Property taxes Acquisition Environ. remediation Referendum payment Property Maintenance Other services Transfers Total Project Costs Debt Service Bond interest Transfer Inter-govt., City Bond agent fees Total Debt Service Total Expenditures Revenue over (under) Expenditures $2,331,371 $1,593,027 4,680 3,510 555,000 720,648 4,057,652 504,000 175,000 248,333 7,123,703 3,069,518 4,054,185 84,000 17,170 5,420 7,200 1,700 10,000 125,490 75,000 43,300 6,743,500 95,000 74,362 1,824,800 62,500 340,000 16,500 30,500 3,553,652 504,000 504,000 620,000 61,681 12,444 3,684 2,889 1,200 21,977 103,875 121,764 97,393 1,844,889 98,641 164,704 3,902 4,064 $738,344 1,170 (165,648) 3,553,652 (73,333) 22,319 4,726 1,736 4,311 500 (11,977) 21,615 (46,764) (54,093) 4,898,611 (3,641) 74,362 1,660,096 62,500 340,000 12,598 26,436 3,553,652 12,859,114 2,335,357 10,523,757 504,000 504,000 620,000 1,628,000 1,628,000 14,612,604 4,067,232 10,545,372 (7,488,901) (997,714)(6,491,187) ========= --------- ========= 68% 75 130 12 43 73 72 68 40 71 220 83 162 225 27 104 9 24 13 0 18 100 100 100 100 28 13 St. Louis Park Economic Development Authority Individual Statement Of Revenue And Expenditures For Period Ending September 30, 1993 ~) Excelsior Oak Park Trunk Capita 1 Debt Revenue Blvd Vi 11 age Hwy 7 Projects Service Total ------- --------- -------- ------- -------- ------- ------- Tax increment $1,031,179 $199,755 $362,093 s s $1,593,027 Rent 3,510 3,510 Interest 447,925 48,225 53,256 147,757 23,485 720,648 Transfers 504,000 504,000 Re fund/reimburse 248,333 248,333 --------- ------- ------- ------- ------- --------- Total Revenue 1,727,437 251,490 415,349 147,757 527,485 3,069,518 --------- ------- ------- ------- ------- --------- Expenditures ------------ Administrative Salaries 24,047 12,991 24,643 61,681 Employee benefits 4,310 2,500 5,634 12,444 Supplies & other chgs. 1,782 890 1,012 3,684 Legal 964 963 962 2,889 Contractual 610 235 355 1,200 Planning 21,977 21,977 --------- ------- ------- --------- Total Administrative 53,690 17,579 32,606 103,875 --------- ------- ------- --------- ) Project Cost Appraisal/survey Legal 115,857 5,907 121,764 Environ. analysis 94,693 2,700 97,393 Public improvement 12,371 1,832,518 1,844,889 Relocation/demolition 98,641 98,641 Property tax Acquisition 40,074 124,630 164,704 Referendum payment Property maintenance 2,257 1,645 3,902 Other services 847 3,217 4,064 --------- --------- --------- Total Project Costs 364,740 1,970,617 2,335,357 --------- --------- --------- Debt Service Bond interest 504,000 504,000 Transfer 504,000 504,000 Inter-govt., City 620,000 620,000 Bond agent fees --------- ------- --------- Total Debt Service 1,124,000 504,000 1,628,000 --------- ------- --------- ------- --------- Total Expenditures 1,542,430 17,579 2,003,223 504,000 4,067,232 --------- ------- --------- ------- --------- Revenue over (under) -O Expenditures 185,007 233,911 (1,587,874) 147,757 23,485 (997,714) --------- ------- ========= ======= ======= --------- --------- ------- --------- ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY SCHEDULE OF INVESTMENTS SEPTEMBER 30, 1993 Date Investments -------------------- Institution/Type Yield Purchase Maturity Balance ---------------- -------- -------- ------- 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 01-25-94 800,000 Dain Bosworth-Treas. 3.42 09-10-92 01-31-94 390,000 Park National - C.D. 3.75 02-02-93 01-31-94 500,000 1st Banks - FHL 3.92 08-10-92 02-25-94 460,000 1st Banks - FHL 4.30 12-01-92 02-25-94 1,040,000 ) 1st Banks - FHL 5.35 02-28-91 02-28-94 500,000 1st Banks - FC 5.80 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. 4.09 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 1,000,000 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 1st banks - FHL 3.84 09-20-93 09-20-95 1,000,000 4M Fund Various Open 317,728 ---------- Total Investments $23,125,045 ========== 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 om ic D e v e l o pm en t A u th o r i ty -S t . L ou i s P a rk O c t o b e r 4 , 199 3 V en d o r D e s c r ip t i on Am ou n t B r a u n In te r t e c En g i n e e r in g L e g e n d T e c h n i c a l Se rv i c e s C . S . M cC r o s s a n Co n st r u c t i o n MN P o l l u t i on Co n t r o l A ge n cy N ob l e N u r s e r y R e ta i l , In c . Pu m p & Meter Service, Inc. S & T Lawn Service, Inc. USPCI TOTAL Professional services Professional services Services Services Landscaping services Services Services Services $ 1,730.25 2,110.00 18,2OO.75 334.67 22,419.58 2,891.82 1,355.00 5,906.01 $ 54,948.08 Accounting Dept. ~~-k~ Executive Director ~~ pr a s #/3sol#s a o 34 .Jo 23 )