Minutes - Council - 11/14/2006 - Laserfiche WebLink

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Agency in the amount of $295,000. Bids were received for this project on Wednesday, November 8, 2006, and came in much lower than the estimated amount. The low bidder is Team Earthworks Inc. with a bid in the amount of $177,672.00. A letter of recommendation from ProSource Inc. is included in the Council's packet. Mr. Olson advised staff recommends adopting the resolution for Improvement Project 06-33 awarding a contact for the removal of contaminated soils on the St. Paul Terminals Property to Team Earthworks Inc in the bid amount of $177,672.00. Councilmember Cook inquired about the funding source for the project. Public Works Director Olson replied the City has received a grant from MPCA and the remainder will come from TIF District No. 2. Motion by Councilmember Pearson, seconded by Councilmember Cook, to adopt resolution 06- 11-348 for Improvement Project 06-33 awarding the contract for Removal of contaminated Soils on the St. Paul Terminals Property to Team Earthworks Inc. in the bid amount of $177,672.00 Motion carried. Voting Yes: Mayor Gamec, Councilmembers Pearson, Cook, Elvig, Jeffrey, Olson, and Strommen. Voting No: None. Case #9A: Consider Leases for Property at 6745 Highway 10 (Anchor's Away Building) City Attorney Goodrich reviewed that the City has purchased the property at 6745 Highway 10, known as the Anchor's Away building through the RALF Funds Program. Two businesses are interested in leasing space in the building from the City. Midwest Car Care, LLC, A Minnesota Limited Liability Company, would like to lease the lube and carwash portion of the building. The remaining part of the building is cold storage for Boat/RV storage and K & K Sharp, LLC would like to lease this area. Mr. Goodrich reviewed that Council approved the two leases in concept on September 22, 2006. Marty Fisher has been negotiating the actual lease terms. In drafting the actual leases, a conflict has arisen in that Midwest Car Care desires space for 25 cars in the fenced in area. K & K Sharp is unwilling to share the fenced in area. Neither party at this time is willing to compromise. Midwest Car Care says the inability to have the 25 spaces is a deal breaker and K & K Sharp says giving Midwest Car Care spaces is a deal breaker. Without a compromise by the parties, they are at an impasse. Midwest Car Care states that it is willing to lease the entire site from the City and pay the property taxes if the City is unable to negotiate a lease with K & K Sharp. K & K Sharp has leased the adjacent NAU building from the City and use of the Anchor's Away building cold storage area is important to its operation. Mr. Goodrich indicated staff would like direction from the Council on how to proceed in resolving the current impasse. Mr. Fisher stated during the course of the lease negotiations it has become apparent the two tenants have a problem with the parking that is designated in the rear of the facility. The two tenants had a discussion and did not come to an agreement. He also met with both tenants at the site on separate occasions to discuss where the parking has been designated to be and if there was any compromise they could come to. From Midwest Car Care's perspective, they indicated there was no middle ground. From Mr. Sharp's perspective, he has been through something City Council / November 14, 2006 Page 14 of 31