11/13/12 - Laserfiche WebLink

Home

HRA Regular Session Meeting Date: 11/13/2012 By: Darren Lazan, Housing & Redevelopment Authority Information Title: Consider Award of Construction Contract - North Commons 5. 2. Background: Earlier this year, the HRA rejected all bids for the work associated with North Commons, a 17 lot subdivision in the residential area north of Bunker Lake Boulevard, after bids received were higher than expected. The project was subsequently value -engineered, and rebid with a larger bidding and construction window. On October 30th, 2012, a bid opening was held for the modified plans and construction schedule. Fourteen bids were received ranging form the apparent low bidder at $417,372.22 and the high bid at $590,040.50. The development team and the city engineer have reviewed the bids and determined that County Line Excavating is the lowest qualified bidder, and subject to receipt of their insurance requirements are capable of completing the project. Notification: Observations: The development team has prepared an updated development pro -forma of the North Commons project and will provide a detailed review at the meeting. The North Commons project presents a particular challenge to develop as it has an unusual shape, was never provided adequate sewer and water services, and there are a number of unresolved stormwater issues that make it a challenge to develop. At best, North Commons is a break-even proposition as a development, but the City will realize considerable upside in the completion of the project as it recovers development fees, provides increased tax base, adds homes to the community to share in the completion of the roads, etc. As you recall, the improvements to the park that were completed contemplate a portion of the funding coming from the sale of these lots. Additionally, the park dedication dollars received will help fund future improvements. The HRA is currently under contract for the first lot in the development, and if the project proceeds will market the sites to other area builders. Reception to these lots has been fairly good with local builders as the lots in this neighborhood have been selling and construction has been steady. The HRA has the option to reject all bids and has no obligations to proceed with the project if it so determines. Recommendation: The development team recommends the HRA proceed with the proposed project and award the contract to the apparent low bidder - County Line Excavating. Funding Source: Land sale proceeds and Stormwater Fund - Internal loan form landfill trust fund. Council Action: