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HRA Regular Session Meeting Date: 08/13/2012 By: Darren Lazan, Housing & Redevelopment Authority 5. 2. Information Title: Consider Award of Construction Project - North Commons Background: At the regular meeting of the HRA on July 10, 2012, the HRA approved plans and specifications for North Commons, the 17 lot subdivision on HRA property. This work consists of the grading, utilities, street, and storm sewer improvements necessary to develop the proposed property. When plans and specifications were ordered, the project scope was used to develop a pro -forma which was presented to the HRA for approval. This pro -forma contemplates the cost of development, city development fees, and proceeds remaining for the HRA. This pro -forma was approved by the HRA and contemplated a break-even proposition for the HRA at an average lot price of $35,000. This presumes all development costs and development fees were paid to the city, and the HRA received their land costs back from the sale of these lots. The first of these lots is under contract for sale at $35,000. Bids were received and opened Tuesday August 7th, 2012. Three contractors bid the project. One contractor bid all 8 sections of the proposed work, while two other contractors combined to cover all 8 sections. The apparent low bid was in the amount of $461,752.00 and was proposed by Dave Perkins and Sauter and Sons. The pro -forma estimate for construction costs was roughly $330,000. The $160,000 difference can be accounted for in a couple significant components. During the review of the plans by LRRWMO, they requested our project meet the new requirements of the Generation 3 plan which would have added considerable cost to the project. While we were able to negotiate a reasonable solution, there were still items added to the plans that were not contemplated in the original approvals for this area, or in the original pro -forma. • The addition of an outlet pipe from the existing North Commons pond. • Additional fill to create a greater separation from the high water elevation. • Modifications to the existing storm water system. There were additional costs for grading and import of material due to proximity to the site. The original pro -forma contemplated material available for this project from the area now excavated as Lake Ramsey. When the HRA agreed to allow that material to be used for fill on BOTH Armstrong Boulevard and Sunwood Drive we depleted the available material. We will now open a second borrow area east of the tree line and west of proposed Center Street. There were higher grading costs associated with that effort. Finally, the project is carrying both the initial contribution for the park construction, as well as the additional costs associated with the soil corrections approved by the HRA. This is currently approximately $40,000. Notification: Observations: