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HomeMy WebLinkAbout2014-11-12 PACKET 04.C.01. To: Economic Development Authority Ryan Schroeder, City Administrator From: Ryan Burfeind, PE, Project Engineer Date: November 6, 2014 Re: Demolition of 8797 & 8811 West Point Douglas Rd Background The Langdon neighborhood, just south of Highway 61, east of Jamaica, has been designated as a future multi-modal transit facility location and also as a redevelopment opportunity. As such, it has been the ongoing direction of the EDA to acquire and land bank property within the neighborhood as it becomes available if priced efficiently. Resulting, is that the EDA has acquired roughly 11 acres within Langdon over the past decade (see enclosed). One of the properties in EDA ownership is 8797 and 8811 West Point Douglas Road, referred to as the former Cottage Grove Auto site. The property is about three acres in size and currently has both a residential structure (rambler) and a metal commercial building located thereon. Until recently the residential structure was occupied with a tenant in occupancy at the time of EDA property acquisition. It is proposed at this time that the EDA consider demolition of the two structures in preparation for redevelopment opportunities. Discussion The City has received four quotes for the demolition and removal of the structures at 8797 & 8811 West Point Douglas Rd. Below is a summary of the quotes received. More detail regarding these prices can be seen in the attached quotes. Contractor Quoted Amount Low Veit & Company, Inc. $18,473 #2 Rumpca Excavating, Inc. $18,668 #3 Rumpca Enterprises $22,200 #4 JM Excavating $25,195 It should be noted that the City had been delaying demolition of the residential structure until such time as the tenants had vacated the property. Further, while we did not market the commercial property for tenancy we had considered a short term, five year tenant in the recent past. However, to upgrade the building to meet tenant and code requirements we would have experienced in excess of a $100,000 expense which would have driven rents beyond market levels. Moreover, any tenancy of the building would have limited opportunity to take advantage of development opportunities for the site. Currently the Fire Department is proposing a controlled burn of the residential structure, which nd is scheduled to take place on November 22. The quotes received reflect removal of the debris once the structure has been burned. An asbestos inspection was also completed by ShelterTech Corporation for the two structures, at a total cost of $1,255. Asbestos containing materials were identified during these inspections. The quote from ShelterTech to remove and dispose of the asbestos containing materials is $1,170. Additional work is required regarding the onsite well and septic system. Prior to demolition the septic system will need to be pumped, at an estimated cost of $426 by Pinky’s Septic Pumping. The well will also need to be sealed, which can occur after the building has been demolished. Washington County currently offers a grant program for 100% reimbursement of well sealing costs when they are located within a City’s drinking water supply management area (DWSMA) or an area of known contamination. While the well at this property is not located in the Cottage Grove DWSMA, it is located in an area on known contamination so it is eligible for 100% reimbursement. Currently the 2014 grant funds have been depleted, so the City will be applying for funding in 2015. The funding for well sealing needs to be approved prior to any well sealing work taking place. The final cost for demolition of the structures is removal of certain fixtures prior to the demolition process. This includes items such as light fixtures and thermostats. The City received a quote from J & J Contracting for fixture removal at a cost of $1,200. A summary of the total costs related to demolition are summarized in the table below. Item Contractor Cost Building Demolition Veit & Company, Inc. $18,473 Asbestos Inspection & Report ShelterTech Corporation $1,255 Asbestos Removal/Disposal ShelterTech Corporation $1,170 Septic Tank Pumping Pinky’s Septic Pumping $426 1 Well Sealing TBD $0 2 Fixture Removal J & J Contracting $1,200 Total $22,524 Notes 1. Estimated Cost Only 2. Pending Washington County Grant Approval Recommendation It is recommended the Economic Development Authority approve the demolition of 8797 & 8811 West Point Douglas Road and award the project to Veit & Company, Inc. in the amount of $18,473.