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7. HRSR 02-06-2012ITEM # 7. diver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Annie Deckert, Director of Economic Development DATE: February 6, 2012 SUBJECT: 716 & 720 Main Street Site Improvements BACKGROUND In 2006, the HRA purchased 716 and 720 Main Street in Elk River with the intent to expand downtown surface parking. On October 3, 2011, the HRA authorized staff to obtain proposals for costs to demolish the Main Street buildings. On December 12, 2011, the HRA approved a contract with Veit and Company for the demolition and removal of the buildings. The buildings were demolished and removed the week of December 26. Additional details can be found on the attached project summary from project manager Randy Schumacher with The Schumacher Group, LLC. DISCUSSION The purpose of this item is to discuss moving forward with the site improvements of 716 and 720 Main Street. Past strategic planning and goal setting efforts have resulted in the following which can be applied to the HRA site: 2009-2012 Economic Develo~iment Strategic Plan (adopted by the HKA, EDA and City Council in the summer of 2009) o Outlines rehabilitation and redevelopment as a key goal. The objective is to undertake strategies that facilitate rehabilitation and redevelopment of deteriorating commercial and residential areas to ensure private reinvestment and sustainability. One of the strategies is to identify potential. areas fox revitalization o Outlines community image and marketing as a key goal. The objective is to identify a desired image and strategies to effect necessary changes to achieve that vision • 2011 Vision and Goals (approved by the City Council in October 2010) o "Abounding in natural beauty, Elk River is a vibrant, historic river town that promotes an active lifestyle in an innovative and involved community offering unlimited opportunities." o Identified the completion of a brand plan a vital step in achieving the four goals outlined in the Vision • Elk Kiver Brand Plan (approved implementation of plan by the EDA and City Council in September 2011) o Downtown identified as Elk River's sense of place and identity; suggested to be the center of Elk River's community voice o Identified as the destination-focused center of community social life by our community 0 32% of those in the metro who had visited Elk River, came to visit the downtown o Suggested enhancing streetscapes and amenities would encourage site selectors and investors Discussions with various downtown business owners throughout the past couple months, and with the River's Edge Business Association in January of 2012 indicate a high interest in additional parking with aesthetic amenities. Reoccurring ideas included planters, benches, outdoor dining tables and attractive landscaping. Business owners also mentioned utilizing the location fox events (Farmer's Market, street dance, etc.) and the creation of one trash enclosure for the dumpsters from the businesses on the block. RECOMMENDATION Downtown Elk River is the core of our community and staff feels there's a tremendous. opportunity to create additional parking, and to design the space in such a way that it creates a small gathering space for downtown patrons and increases the attractiveness of our downtown. Staff has developed several concept ideas internally, however does not have the technical expertise to create the architectural renderings, cost estimates, etc. Staff recommends working with a landscape architect to create concepts for the design of the area, incorporating information from discussions with the HRA and downtown businesses (similar to the process used with the construction of River's Edge Commons). With HRA authorization, staff will begin working with an architect immediately and return to the HRA with design options (including cost estimates) for discussions at a future meeting. FINANCIAL IMPACT The HRA has budgeted $60,000 for the downtown plan in the Other Professional Services line item. Discussions with Jeremy Barnhart, Downtown Task Force staff liaison indicate that costs for the architectural design may come out of this line item as well. ATTACHMENTS: • Project summary from project manager Randy Schumacher dated 1-13-12 1-13-12 Annie, As per your request, here is a summary of the 716 & 720 Main Demolition Process: October -mid-November 2011: ^ Established & completed the following work plan: - Pre-condition survey of 724 (Butcher Shop) - Conduct exploratory demolition of 720 -Obtain asbestos abatement survey - Develop plans & specs & scope of work - Establish work agreement -Advertise for bids Late November -mid-December 2011: ^ Advertised for bids Nov 19 ^ Mandatory walk-thru on Nov 29 ^ Bid Opening Dec 6 ^ Staff meeting w/low bidder, Veit Dec 15 Late December 2011 ^ Environmental abatement process started Dec 22 -During removal the roof started to drop and all workers left the building. Veit was called to shore up the sagging trusses with screw jacks. - After building was safe, balance of abatement was completed. ^ Regulated waste contractor completed all bulb, ballast and switchs Dec 23. Week of January 3, 2012: ^ Jan 3: All utilities to both buildings were confirmed as cut and Veit mobilized for demolition. Per Braun Engineering recommendations, manual separation of buildings at 720 and 724 took place. Roof sections were removed and trusses were individually cut and removed. The entire building at 720 down by 4:00 pm, with the exception of the. north wall facing Main Street. No damage was done to the building at 724 ,the Butcher Shop. Veit's crew did an outstanding job with a very tenuous demo situation. ^ Jan 4: Balance of building 720 and the building at 716 demolitions took place. - After removing several layers of floor the in the 720 building this morning, we sent some new colored the and mastic to the lab for evaluation. It came back with higher levels of asbestos and therefore the concrete floor must be deposited in a landfill rather than being recycled. I will work with Veit on a fair change order. In the afternoon we unearthed an unmarked fuel oil tank in the back of the 716 building. We left it in place and will address it when the floor is removed either Thursday or Friday.. ^ Jason Hanlon, the structural engineer who completed the Assessment of Demolition report will be on site to review the brick wall left in place adjacent to the butcher shop. He will give you a written recommendation for options on maintenance, and address any issues dealing with structural integrity. ^ Friday 1-6-12: Thursday morning started out by running into an unknown waterline curb stop in the back of the 720 building. City crews shut off the water further down the block and then turned it off at the newly located box. Veit put in a post next to the box for future location purposes. Backfilling was completed on the basement of the 720 building. All concrete flooring was removed and taken to the landfill due to the asbestos the found in that section of the building. 90% of the sheet metal and steel was trucked off site for recycling. 75% of building debris was trucked off site to the landfill. ^ I had a meeting with the structural engineer and Bob from your inspection department to review the stability of the brick wall adjacent to the butcher shop. The engineer will forward his findings to you in a brief report outlining the issues we discussed. We will be unearthing the footing of that wall today to determine options for any necessary corrections prior to Veit's departure. The concrete basement floor and walls of the 716 building will be removed on Friday as well as backfilling. On Monday, we will address the fuel oil tank and final cleanup of the site. ^ Veit excavated the footings on the brick wall next to the butcher building today. They are only 22 inches down and should be 42 inches to meet the frost footing requirements. Bob and I talked about this on Thursday. Please talk to Bob and let him know about the footing depth. Some type of insulation will need to be installed to prevent the footing from heaving from frost action. ^ Veit exposed the fuel tank but left it in place. We needed to determine if any fuel was in the tank. There was only about 6 inches in the bottom and that will be pumped out prior to removal on Monday. Luckily, the tank is very small and hopefully there is no soil contamination. It does have transit board around it for fire proofing purpose. That has high levels of asbestos in it and will have to be removed with a lined truck. Veit is prepared to handle that on Monday as well. ^ The last of the 716 building basement should be loaded out on Monday. ^ Overall, the project is taking a little longer than expected, however, that is due to the difficulty in building separation. Until we unearth the tank on Monday, we really won't know the time issue. I have a petroleum inspector scheduled for a Monday visit. Week of January 9, 2012 ^ Jan 12: Veit is in the process of installing the shallow footing insulation per Braun's recommendation. They said Bob was on site to supervise the installation. I left Bob a message to get back to me, I wanted to make sure he was satisfied. ^ Veit agrees that when they return in the spring to do the permanent utility cuts, that would be a better time to take the proctor tests for soil compaction. One season of frost -thaw will help the site prior to surfacing. Braun's engineer, Mark also agrees with that plan. ^ Jason from Braun emailed you & Bob a copy of wall stability and recommended maintenance. You should get a hard copy in the mail as well. If you don't, please let me know. ^ I will be meeting with Veit next week to get copies of manifests and change orders for the tank removal and asbestos the removal. ^ Also street sweeping took place yesterday. ^ I have not heard anything from Carlson on the DRO soil samples yet. If you need any clarifications on the above information, let me know. Randy