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HomeMy WebLinkAbout12-29-1982S RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 24 - December 29, 1982 Agenda Item A-1 President Postier called the meeting to order at 4:00 P.M. with the following members present: President Postier, Aldermen Allen, Bluhm, Duffy, Powers, Solinger and Strain. Absent: None Aldermen Powers moved, Duffy seconded., to approve the minutes of the December 20, 1982 meeting as written. Ayes (7), Nays (0). Motion carried. E-2 The Council considered a.request to pay an additional $7000 to $8000 on Project 8210 - Fred Schuster Industrial Park. The amount was for an increased street section on Industrial Drive, the total cost of which amounted to $20,817. Steve Kvenvold, City Administrator, indicated that a letter from Industrial Opportunities, Incorporated (I01) was understood by the City to indicate that I01 would pay for the total cost; Mr. Bagne from I01 understood that the City would be paying its share. Roger Plumb, Director of Public Services, stated that the Public Services Department did not want to recommend expenditure of the moni( due to the fact that proceeding with"such excavation at this time of year is not a good idea. Public Services is in agreement that the project will need added stone but would opt to completing it in the spring rather than this time of year. Mr. Plumb stated that through- out the project Public Services staff have recommended delaying the road phase until next spring; at that .time, City participation would be recommended. Jay Bagne, 2018 26th Avenue N.W., wished to be heard. Mr. Bagne stated that the additi.onal width of the street was required by the City; hence, the reason for the additional cost to the City. Mike Gowin, 4002 11th Avenue N.W., McGhie and Betts, wished to be heard. Mr. Gowin stated that it was necessary to do the work at this time due to the problem of getting large equipment into the site in the spring; Telex wants to move into their building in May. Aldermen Bluhm moved, Powers seconded, that the project proceed at this time with the City's participation in costs up to $8000.00; and in the spring, I01 takes full responsibility for surface failures that arise. Discussion followed. Alderman Strain asked that Public Services make the determination if the roadway is sufficient in the Spring or if additional fill and work will be needed. Such additional costs would be the full respon- sibility of IOI. Mr. Bagne was asked by President Postier if I0I concurred with the responsibility they would need to fulfill in the Spring if the.curreni work proved inadequate. Mr. Bagne answered yes. 1882 RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA Adjourned Meeting No. 24 - December 29, 1982 Agenda Item E-2 E-1 Ayes (6), Nays (0). Abstain (1). Alderman Allen abstained. Motion carried. Resolution No. 579A-82 was adopted. Riverside Partners requested approval for the issuance of $750,000.00 in Industrial Revenue Bonds for the Riverside Building Project. Bond in the amount of $1,600,000.00 had been previously issued for the pro- ject. Terry Hall, Assistant City Attorney, stated that a title insurance company would guarantee that there were no liens on the property and would handle all.monies. Two smaller insurance companies would be purchasing the bonds. The Council questioned whether the.issuance of the additional bonds would guarantee that the local contractors would be paid. Mr. Hall stated that he had asked for a list of creditors previously but had not received such to date. Wishing to be heard was Mr. Harvey Swenson, Riverside Partners, 500 North Robert, St. Paul. Mr. Swenson stated that liens total slightly over $500,000. Most of the liens relate to the Riverside Gardens Restaurant project. The patio and landscaping work has not been com- pleted. Very little work is left on the patio, some electrical work, but mainly fill and rough grading. The Partners stated that if the over-all general contractor did not finish the work, they would assume full responsibility for finishing it. Mr. Hall stated that some type of committment was needed to insure that,the work would be completed. There is currently no performance bond between the general contractor and the Partners.: Mr. Fred Suhler, City Attorney, stated that if the proposal for Industrial Revenue Bonds is accepted, we take the Partners at their word that the work will be completed. Mr. Hall recommended that a performance bond in the amount necessary for the work and rough grading in the walkway be obtained. Mr. James Wengler, Riverside Partners, 500 North Robert, St. Paul, wished to be heard. Mr. Wengler stated that the important objective is to see what it would take to finish the walkway and do it. Mr. Dan Berndt, 505 Marquette Bank Building, wished to be heard. Mr. Berndt stated that the general contractor had stopped working simply because he had not been paid; the general contractor also has a lien on the property. Mr. Berndt further stated that the general contract- or and subcontractors would be paid individually from the title in- surance company those monies owed them. Alderman Powers asked that if the general contractor is paid, does a bond need to be obtained in order to guarantee the finishing of the work. I I RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL CITY OF ROCHESTER, MINNESOTA I Adjourned Meeting No. 24 - December 29. 1982 Agenda Item E-1 Mr..Berndt.replied that the patio and walkway are both a part of the contract with the general contractor and that no performance bond would be needed. Mr. Suhler stated that since the contractor has not been paid, a breach of contract has occurred and the contractor does not have to finish the work. All of the Riverside Partners, James Wengler, Harvey Swenson, and Louise Hill agreed that if the patio is not completed by Riverside Gardens, they will complete the project. Wishing to be heard was Ron Seeger, 228 Northwestern National Bank Building, representing Benike Construction Company. Mr. Seeger asked on behalf of Benike that the Council approve the issuance of the bond! Benike has completed the work, paid their subcontractors (approximat- ely $300,000) but have not yet been paid themselves. Sub -contractors not yet paid were working independently of Benike on the Riverside Gardens project. Aldermen Duffy moved, Allen seconded, to,adopt Resolution No. #580-82 approving the issuance of Industrial Revenue Bonds for the Riverside Project in the amount of $750,000. Ayes (7), Nays (0). Motion carried. Having no further business, Aldermen Allen moved, Bluhm seconded, to adjourn the meeting until 2:00 P.M. on January 3, 1983. Ayes (7), Nays (0). Motion carried. Judy Kay Scherr, Deputy City Clerk