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5. HRSR 10-03-2011ITEM #5. ~' MEMORANDUM TO: Housing & Redevelopment Authority FROM: Annie Deckert, Director of Economic Development DATE: 3 October 20 I SUBJECT: 716 & 720 Main- Maintenance Update ATTACHMENTS: • Memorandum from Loucks Associates dated 9-22-11 re: 716 & 720 Main St. BAC KG RO U N D In 2006, the HRA purchased 716 and 720 Main Street. The primary purpose of this purchase was to be able to expand surface and possible deck parking downtown. Since then, the HRA has maintained the buildings with minimal maintenance, however within the past two years, the ongoing maintenance costs have increased (i.e.: roof repairs, HVAC systems, etc.). Since 2009, approximately $4800 in roof maintenance costs has been incurred. Maintenance includes roof repairs (not guaranteed by contractor because of roof condition) and exterior paint. At the Apri14`'', 2011 HRA meeting, the HRA discussed different options regarding their long term intentions of 716 and 720 Main Street to determine how maintenance issues will be handled and directed staff to research the cost of removing the buildings in addition to determining what (if any) portions of the wall between the Elk River Meat Market and 716 Main Street are shared. Additionally, the HRA confirmed the properties would be needed for parking in the future, however the need is unclear at this time. On July 11`" 2011, the Arts Alliance (720 Main Street) experienced significant leaks in the gallery due to the weather. On July 13`", 2011, Building Official Bob Ruprecht and building maintenance staff inspected the two buildings to determine the maintenance needs and recommended obtaining an inspection from a structural engineer to determine improvements necessary moving forward. DISCUSSION On August 19`'', staff and Loukes Associates Building Consulting Group inspected the HRA buildings in addition to the meat market to review the condition of the building. The inspection determined the center building has failed roof trusses. Because of this condition, N:1Departments\Community Development\Economic Development\Houlton BuildingsVvtaintenance\10.3.11 Maintenance.doc Loucks recommends that no one enter this building until further detailed investigation is complete and either the building is demolished or repaired. They went on to say that snow and/or roof loads have the potential to collapse the roof of the building. The attached report provides further detail and outlines approximate cost for 1) building repair and 2) building demolition (excluding the meat market). Fire Marshall Cliff Anderson red tagged the building on Friday, September 23`d which prohibits anyone from entering the building. The attached cost estimates factor in keeping the meat market intact. Staff is seeking direction on how to proceed. Options for consideration include: 1. Repair building - 720 Main Street o Attached cost estimates do not include any repairs of 716 Main Street 2. Demolish 716 Main Street a. Additional inspections would be required prior to demolition 3. Demolish 716 & 720 Main Street and explore options for additional parking a. Additional inspections would be required prior to demolition It is imperative to move forward before there is a heavy snowfall to avoid the risk of roof collapse. An uncontrolled roof collapse could put people at risk and could also damage adjacent buildings. If the HRA chooses to move forward with demolition, bids will be solicited. N:1DepartmentslCommunity DevelopmentlEconomic DevelopmentlHoulton Buildings~Nlaintenance110.3.11 Maintenance.doc t SSUCIATES MEMORANDUM TO: Annie Deckert, Economic Development Director City of Elk River FROM: Jeffrey A. Shopek, P.E. DATE: September 27, 2011 SUBJECT: 720 Main Street Elk River, Minnesota On August 19, 2011, Loucks Associates (Jeff Shopek, P.E, Jared Andrews), Building Consulting Group, Inc( BCG) . (Mark Duncan, P.E.) and several members of the city staff visually reviewed the condition of the building. Loucks' has significant experience in the demolition process; BCG has significant experience in structural engineering and evaluating buildings for structural integrity. The visual observation was very preliminary and was preformed to provide the City of possible options of repair or demolition. This work was completed without compensation and therefore is very general in nature. Also, in order to perform a complete evaluation of the options, additional investigation work will need to preform as well as incorporating other professionals into the team. The retail center is comprised of three separate buildings that have been connected together during each expansion phase. The Deli is located on the westerly portion of the site and is intended to remain. The center space was previous occupied by NAPA Auto Parts and is now vacated. The center building has failed roof trusses. Because of this condition, we recommend that no one enter this building until further defailed investigation is complete and either the building is demolished or repaired. Snow and/or rain roof loads has the potential to collapse the roof of this building. The easterly building is occupied by an art gallery. Our understanding the long term goal of the City is to remove the center bu i Id i ng and the easterly bu i Id ing and leave the Deli in place. The area of the two removed buildings could allow the parking lot to the north to be expanded. We have outlined three options with potential costs to achieve the City goals; 1) Repair the buildings; 2) Demolish the middle building or 3) Demolish the two easterly buildings 1. Keep Building $75,000-100,000 a. Repair Building i. Re-Construct Roof 1. Repair/Re-build Trusses $30-40,000 2. Re-Roof both building $40-50,000 ii. Re-build basement floor $ 5-10,000 1 of 4 2. Demolish Interior building $95,000-120,000 a. Separate roof from adjoining walls $10,000 b. Remove contamination $10,000 c. Demolish building and basements $70,000 d. Fill in basements $3,000 e. Restoration $2,000 f. Restore building east and west walls Unknown 3. Demolish Interior building and Art Center a. Separate roof from adjoining west b. Remove contamination c. Demolish building and basements d. Fill in basements e. Restoration f. Restore bu i Id i ng east Deli wal I $97,000-125,000 wall (Deli) $5,000 $10,000 $75,000 $5,000 $2,000 Unknown 4. Professional Services $35,000 a. Civil Engineering $10,000 i. Demolition Plans and Specs- Bid Documents b. Structural Engineering $10,000 i. Building separation details c. Environmental Engineering $10,000 i. Identify hazardous materials d. Architect $5,000 i. Deli wal I restoration We would welcome the opportunity to provide detailed proposals for completing this work for the City of Elk River. Please call with any questions at (763)-496-6715 (office) or (612) 237-8506 (cell). 2 of 4 Photo .Ioure~al: ~» 3 of 4 F'l+uto 5 - °`Faire+d"Truss Frarrr+ng ,, _~, ~,,, Photo 8- "'Fa+if~ed"' Truss Searing 4 of 4 P1~o1o 7 - `1Fariled" Truss Franeing