5. HRSR 11-07-2011•
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MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Annie Deckert, Director of Economic Development
DATE: November 7, 201 I
SUBJECT:. 716 & 720 Main- Maintenance Update
ATTACHMENTS•
• Memorandum re: 716 & 720 Main Street-Maintenance update dated 10-31-11
•
The attached memo was provided to the HRA on October 31, 2011, and outlines the
detailed history of the HRA buildings located at 716 and 720 Main Street, as well as the
occupancy of 716 Main Street by the Elk River Area Arts Alliance (ER.AAA). A summary of
this memo will be provided at the November meeting.
Conversations with the Arts Alliance confirmed that they had several reasonable
opportunities for a new location, and they plan to vacate the building by November 6.
Staff will obtain all keys and secure the building after it is vacated.
Staff will provide an update on the measures taken in the interim in preparations for a
potential snowfall.
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N:\Departments\Community Development\Economic Development\Houlton Buildings\Demolition\11-7-11 building update.doc
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MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Annie Deckert, Director of Economic Development
DATE: October 31, 201
SUBJECT:. 716 & 720 Main- Maintenance Update
ATTACHMENTS:
• Inspection summary from Building Official Bob Ruprecht re: 716 Main Street
• Memorandum from Loucks Associates dated 9-27-11 re: 716 & 720 Main St.
• Memorandum from Building Official Bob Ruprecht re: 720 Main Street
BAC KG ROU N D
In 2006, the HRA purchased 716 and 720 Main Street in Elk River with the intent to expand
downtown surface parking. In November of 2007, the HRA discussed the Elk River Area
Arts Alliance's (ERAAA) request to occupy 716 Main Street and authorized staff to draft a
lease agreement with the ERAAA for the use of the site, with the understanding that this
was a temporary location. In December of 2007, the HRA authorized approval of the lease
agreement for $1 /term. Since 1998, the City of Elk River has contributed $97,300 to the
ERAAA.
In January of 2008, the ERAAA began occupying 716 Main Street. Long term intentions
and building maintenance costs were discussed by the HRA approximately 10 times since
2008. Each time it was the consensus of the HRA to utilize the buildings for long term
parking, in addition to putting minimal expense into the maintenance of the buildings.
In January of 2010, the ER.AAA began covering the insurance payment of $109.08/mo.;
prior to that it was covered by the HRA. On December 14, 2010, the ERAAA held an open
house to discuss exploring the idea of acquiring the First National Bank of Elk River
property. On January 3, 2011, David Raymond, ERAAA Chairman of the Board, provided
an update to the HRA indicating that architectural renderings have been completed for the
First National Bank building and that they would be hiring a firm to do a feasibility study. If
the project was feasible, they would undertake a capital campaign to raise the funds. Mr.
N:\Departments\Community Development\Economic Development\lloulton BuildingsVvlaintenance\10-31-11 building update.doc
Raymond indicated that the ERAAA was not asking the HRA for financial assistance at this
time.
On June 6, 2011, the HRA considered a lease extension for the ERAAA.. Mr. Raymond
indicated the ERAAA continues to explore their options for relocating and that the First
National Bank proposal is still a concept and no formal agreement has been worked out.
The HRA authorized a 1-year extension with the ERAAA for the building (lease not signed).
Since then, the ongoing maintenance costs have increased and building conditions
deteriorated.
On July 11, 2011, the Arts Alliance (720 Main Street) experienced significant leaks in the
gallery due to the weather. On July 13, 2011, City of Elk River 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.
On August 19, city staff and Loukes Associates Building Consulting Group inspected the
HRA buildings in addition to the meat market building to review their condition. The
inspection determined the center building has failed roof trusses. Because of this condition,
Loucks recommends that no one enter this building until a 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 720 Main
Street building was "red tagged" by the Building Department on September 23, prohibiting
anyone from entering the building.
On October 3, 201.1, the HRA authorized staff to proceed with obtaining proposals for
costs to demolish the 716 and 720 Main Street buildings. Inspections from both Building
Official Bob Ruprecht and Loucks and Associates show that a heavy rain or snow may cause
the roofs to leak or collapse. Both inspection summaries are attached to this memo.
In speaking with City Attorney Peter Beck, the city provided notice to the ERAAA vacate
716 Main Street by November 6, 2011. This was made pursuant to the city's police power to
abate the threat to the public's health, safety and welfare posed by these buildings. Allowing
occupancy within the buildings puts the city at risk and liable for any damage which may
occur to the public and/or 716 Main Street (ERAAA) and 724 Main Street (Meat Market).
Mr. Beck also voiced his concerns in regard to temporarily repairing 720 Main Street through
the remainder of the Arts Alliance's lease.
League of MN Cities insurance representative Mary Eberley also advises taking extreme
caution in allowing any occupancy of the buildings because of the building's condition. Any
damages which may occur may result in a claim against the city. The HRE has a Shared Wall
Agreement with the meat market which indicates the HRA is responsible for all/any damage
to the meat market which may result from 716 and 720 Main Street.
On October 27, Building Official Bob Ruprecht, ERA_AA representatives David Raymond
and Ron Touchette, Greg Duerr of Structural Design Associates (on behalf of the ERAAA),
Denny Chuba from Chuba construction and I inspected 720 Main Street. The inspection
echoed comments from previous inspections (see attached memo dated 10-31-11).
N:\Departments\Community Development\Economic Development\lloulton Buildings\Maintenance\10-31-11 building update.doc
Staff is working with Randy Schumacher, The Schumacher Group, LLC, to obtain quotes
for the preliminary surveys required to be executed before putting together the bid
specifications. Staff will move forward to obtain demolition quotes and anticipates bringing
forth a bid contract for the HRA's consideration at their December 5, 2011, meeting.
Staff has worked closely with David Raymond from the Arts Alliance to identify a new
location for their business. Staff has provided several potential locations, property manager
contacts, in addition to speaking with Denny Welsh, property manager of Jackson Place
commercial space in downtown Elk River.
N:\Departments\Community Development\Economic Development\Houlton Buildings\Maintenance\10-31-11 building update.doc
Deckert, Annie
From: Ruprecht, Bob
Sent: Monday, July 25, 2011 3:26 PM
To: Deckert, Annie
Cc: Ruprecht, Bob
Subject: 716-720 Main St.
Annie,
I visited the Arts Alliance and Auto parts store(716 and 720 Main St) on July 13, 2011 to look at some roof problems and
the potential repairs. The rubber membrane roof on both buildings is in very poor condition. The insulation board under
the rubber membrane of the flat roofed Art building appears to be completely saturated with water. There have been
multiple patches placed on the existing membrane and it is very difficult to see which of the patches are failing. The
only sure fix would be to take the existing membrane off completely to the decking, re-insulate and apply a new
membrane that would extend partially up the parapet walls. More patching could possibly slow the leaks but would
need to be done soon as to not fight the cold and snow.
The rounded, barn style roof of the parts store also has a rubber membrane roof with multiple leaks that are difficult to
follow. The membrane has shrunk substantially away from the side walls and would be very difficult to repair. A new
membrane on this roof would also be recommended. I also looked at the inside roof framing members. It is a hand
framed type construction and some of the frame members are fractured. I believe this is a more serious issue as a
substantial snow load could cause a partial collapse. The roof has a substantial sag and I would recommend a structural
engineer to design a repair. At minimum the snow should be removed on a regular basis to minimize the risk of a
collapse.
Feel free to contact me with any questions you may have.
Bob R.
Bob Ruprecht ~ City of Elk River ~ 13065 Orono Parkway ~ Elk River, MN 55330 ~ 763.635.1000 Office
763.635.1090 Fax ~ www.ci.elk-river.mn.us
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MEMORANllUM
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 detailed 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 building and the easterly building 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
a. Repair Building
i. Re-Construct Roof
1. Repair/Re-build Trusses
2. Re-Roof both building
ii. Re-build basement floor
$75,000-100,000
$30-40,000
$40-50,000
$ 5-10,000
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2. Demolish Interior building
a. Separate roof from adjoining walls
b. Remove contamination
c. Demolish building and basements
d. Fill in basements
e. Restoration
f. Restore building east and west walls
$95,000-120,000
$10,000
$10,000
$70,000
$3,000
$2,000
Unknown
3. Demolish Interior building and Art Center $97,000-125,000
a. Separate roof from adjoining west wall (Deli) $5,000
b. Remove contamination $10,000
c. Demolish building and basements $75,000
d. Fill in basements $5,000
e. Restoration $2,000
f. Restore building east Deli wall 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 wall 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
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Elk~~ MEMORANDUM
River
TO: HRA
FROM: Bob Ruprecht, Building Official
DATE: 10/28/201 I
SUBJECT: 716 and 720 Main St. NW
I was asked by Annie Deckert, Director of Economic Development, to inspect the buildings
at 720 and 716 Main St. in July of 2011 to identify areas that were leaking into the 716
building during the winter. At that inspection, I noticed the fractured truss in the 720
building and recommended contacting a structural engineer for inspection.
Louks and Associates were contacted by the HRA and an inspection was completed on
August 19, 2011. An informal report was prepared by Louks and presented to the HRA.
It was determined that a formal property assessment needed to be performed to fully
understand the complexity of a possible demolition of the buildings. In their preliminary
inspection, Louks recommended that no one enter the building until a further detailed
investigation and either the building is demolished or repaired.
It is my concern that complete failure of the 720 roof truss may also cause damage to the
716 and 724 Building.
The occupants of 716 Main St. (Elk River Area Arts Alliance) asked for the opportunity to
conduct an inspection with their structural engineer. That inspection took place on October
27, 2011. Gregory J. Duerr, a structural engineer from Structural Design Associates, Inc.,
completed the inspection with me, Annie Deckert, Ron Touchette and David Raymond
from the ERAAA, Denny Chuba of Chuba Construction present.
The inspections by Louks and Associates and Structural Design Associates, Inc., confirm my
determination that the 720 roof truss is nearing complete failure. Occupancy of the 720
building should be severely restricted. To ensure the structural integrity of the adjacent
buildings, a snow mitigation plan should be developed for 720 Main St. to minimize the risk
of a roof failure. Further, I recommend shoring the failing truss from below, which would
substantially reduce the risk of failure until the property survey is completed and further
actions are decided.
P~INENEU 8~
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