JULY 27, 2016 EDA Meeting

July 27, 2016


Economic Development Authority
MEETING MINUTES – July 27, 2016
Saint Peter Community Center – Saint Peter Room

Call to Order
The meeting was called to order at Noon by President Bob Southworth.

Attendance was taken with Southworth, Jerry Pfeifer, Cory Abels, James Dunn, Marilyn Rundell, Jay Hansen and John Kvamme in attendance.  Community Development Director Russ Wille and Southwest Minnesota Housing Partnership Architect James Arentson were also present.

Approval of Agenda
Motion by Pfeifer to approve the agenda as presented.  The motion was seconded by Cory Abels.  All voted in favor and the agenda was approved.

Approval of Minutes
Motion by Rundell, seconded by Abels to approve the minutes of the June 23, 2016 meeting as presented.  All voted in favor of the motion.

Traverse Green Speculative Homes
Wille and Arentson presented the proposed specification of speculative homes to be built in Traverse Green.  The specifications were prepared in anticipation of soliciting bids for construction. 

Wille noted that the specifications have received a preliminary review of Building Official Dean Busse.  Mr. Busse will also review the bid documents prior to solicitation. 

John Kvamme questioned why the bid documents referenced a “wood foundation”?  Arentson indicated that the bid document was in error and thanked Kvamme for noticing the discrepancy.  The foundations are proposed to be constructed of concrete block.

Arentson noted that the bids suggest the installation of a active radon ventilation system as an bid alternate.  Southworth questioned whether the radon system should be included in the base bid for the homes.  Kvamme asked if it would be less expensive to undertake installation of the radon system during construction.  It was determined that it would be advantageous to install the active radon ventilation system as part of the base construction bid.

Arentson noted that the bids require the speculative home building to landscape and establish the turf in the yard(s).  The covenants require that the builder provide for the planting of one tree on the private property.

The infrastructure contractor installing the roads will be required to establish the grass within the boulevard.  Boulevard trees will be provided by the City and installed in accordance with the adopted standards.

Arentson reviewed the four bid alternates which include: 

  1. The installation of a Heat Recovery Ventilation System in lieu of a balanced exhaust ventilation.
  2. Increasing the attic insulation to R-49.
  3. Installation of 2” rigid insulation below the basement floor slab.
  4. Poured concrete foundation in lieu of concrete masonry unit (block).

The EDA members agreed to the solicitation of base construction bids as well as bids for the four alternates.

The EDA reviewed preliminary sworn construction statements.  The statements suggest anticipated construction bids of $160,000.  When soft costs and lot costs are added, the anticipated sales price would approach $195,000.

The competitive sealed construction bids are due in the office of the Community Development Director by 10:00 a.m., Monday, August 29, 2016 and will be publically opened at 10:30 a.m. in the Traverse des Sioux Room of the Saint Peter Community Center.

Kvamme stated he would like the tree list reviewed by the Public Works Department.  Wille will contact them.

A motion was made by Pfeifer, seconded by Kvamme to introduce Resolution No. 2016 – 07 entitled, “Resolution Authorizing The Solicitation Of Bids For The Construction Of Three Spec Homes Within.”  All members voting aye, the Resolution was passed and adopted.

Only one lot within Traverse Green has been reserved by a private buyers.  It appears that up to 7 homes will be constructed during the first season in Traverse Green.

The City Council will hold a public hearing regarding the proposed changes to the Revolving Loan guidelines suggested by the EDA.

The Regional Economic Development Alliance will hold their annual meeting on October 5, 2016 at Gustavus Adolphus College.  The EDA President will receive an invitation to the event.

With no further business to conduct, Pfeifer moved to adjourn the meeting.  The motion was seconded by Rundell. All voted in favor.  Meeting adjourned.