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The Mounds View Vision A Thriving Desirable Community Item No: 06A Meeting Date: July 8, 2019 Type of Business: EDA Business Administrator Review: ____ City of Mounds View Staff Report To: EDA President and Commissioners From: Brian Beeman, Assistant City Administrator Item Title/Subject: Resolution 19-EDA-327 A Resolution Accepting Quote For Asbestos Abatement And Site Clearing/Grading Introduction: The EDA has purchased the Skyline Motel site as a redevelopment opportunity and a recent investigation revealed that there is asbestos present. The EDA intends to demolish all of the current structures through a controlled burn. However, before the structures can be demolished a licensed asbestos abatement contractor must remove the asbestos. Once the asbestos has been properly removed the Fire Department can begin their training. Three licensed asbestos abatement contractors walked through the Skyline Motel buildings and all three have submitted quotes to remove the asbestos. Phase I is the removal of the asbestos and Phase II is the removal of any and all debris from the site after the controlled burn, including the removal of the septic tank and underground storm shelter. Once all debris has been removed, the demolition contractor will fill the holes and level the site so that it is shovel ready and buildable for next developer. Company 2 did not submit a Phase II quote in time for this meeting. Bid Comparison Company 1 Company 2 Company 3 Phase I $122,690 Phase I $92,850 Phase I $95,400 Phase II $65,700 Phase II $ N/A (Didn’t submit) Phase II $54,000 Total: $188,390 Total: $92,850 Total: 149,400 Discussion: After reviewing all three asbestos abatement quotes and contracts staff and Kennedy & Graven are recommending that the EDA consider resolution 19-EDA-327, a resolution accepting quote for asbestos abatement and site clearing/grading. Strategic Plan Strategy/Goal: Create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and support redevelopment & development. Financial Impact: Redevelopment projects typically take a loss on the front end of the deal. However, revenues are recovered in the long-term through property taxes, community investment, the creation of more jobs, and an improvement to the property. There would potentially be no financial impact to the EDA in a situation where the EDA would be able to recover the money invested into the purchase of the property. If the EDA is successful in creating a TIF district then according to Ehler’s the EDA can recoup their costs of the project.