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Home My WebLink About9E - Tupy Facade Improvement 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT' MEETING DATE: AGENDA #: APRIL 5, 2004 9E PREPARED BY: DONALD RYE, PLANNING DIRECTOR FRANK BOYLES, CITY MANAGER AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTIONAWARDING ADDITIONAL FA<;ADE IMPROVEMENT FUNDS TO HARRY AND GINA TUPY DISCUSSION: History On October 20, 2003, the City Council approved a resolution awarding fayade improvement funds to Harry and Gina Tupy in an amount not to exceed $5,000 for a project that was estimated to cost $9,792.50. Work was begun on the improvement early in the winter and is now complete. Current Circumstances On March 10, staff received a letter (copy attached) noting that significant additional costs have been incurred on the project to date. A new contractor was retained to complete the project and he has detailed the additional work that was necessary to complete the project (letter attached). The result is the cost of the project has increased by $6,107. Since the March 10 letter was received, staff has received' a copy of another invoice in the amount of $1,024 for additional work related to wiring for lights. As a result, the total proj ect cost has increased by $7,131 . Shown below are proj ect costs and requested assistance. Date of re uest Pro. ect Cost Cit Share 10/20/03 $9,792.50 $5,000.00 3/10/04 $6,107.00 $3,053.00 3/28/04 $1,024.00 $512.00 Total $16,923.50 $8,565.00 Status A roved Pendin Pendin Conclusion In essence, the City Council should decide whether it is willing to provide an additional City contribution of $3,053.00 for the March 10, 2004 request and $512.00 for the March 28, 2004 request for a total additional contribution of$3,565.00. L:\Community Dev\downtown facade\Tupyccrep405.doWWW. citvofpriorlake. com Phone 952.447.4230 / Fax 952.447.4245 ALTERNATIVES: RECOMMENDED MOTION: Issues The Council should consider the following in determining whether any additional funding should be provided: 1. At least some of the additional costs are related to work that had to be done which was unknown at the time of the first application. The March 10 letter from the contractor indicates they " discovered many rotted and unsupported structures. (They) made necessary repairs such as replacing all rotted studs, sheeting...". 2. A taller peak above the sign was added to the Hair Mate Building that was not shown on the original plans considered by the staff at the time of the first request on October 20, even though it is an improvement to the building exterior. 3. The bids secured by the Tupy's to complete the work were estimates only and allowed the contractor to bill for time and materials without any "cost not to exceed " provision. 4. A small part of the March 28 request is for taping and painting on the inside wall which is not part of the fa9ade improvement. To be sure, this request, if approved, will create a precedent for projects already approved or for future projects that incur costs higher than those estimated at the outset. This request also suggests a weakness in our procedure. To be proactive, we require only general sketches and descriptions of the work to be performed. We do not require "cost not to exceed" bidding or an acknowledgement that any increase in project costs beyond the original estimate are the sole responsibility of the business receiving the assistance. 1. Reject the requested increase or increases by adopting a motion and second to that effect on the basis that approval of the requests creates an undesirable precedent. 2. Approve the resolution authorizing one or both requests. Authorization of the requests will set a precedent for each of the 6 existing and 2 proposed proj ects which have been or may be approved under the current guidelines but are not yet completed. This will be true even if the Council provides the direction outlined in 3. below. 3. Direct the staff to amend the fa9ade improvement program in the areas mentioned above, namely, plans must show all anticipated improvements. Unanticipated improvements at the time of the initial funding will not be considered for subsequent funding. Second, quotes provided at the time fa9ade funding is requested are considered to be "cost not to exceed" quotes. The City will not provide assistance beyond that originally approved. 1. Alternative 1 and Alternative 3. L:\Community Dev\downtown facade\Tupyccrep405. _"",".......,.~.,~~_,',.~".,_"."..~..-'...,._,,_~._.~.__"'_~""";""~"'~_""'''''''0.4,_"_,,,__'A''''_''''''''~''',__,,,,.m,..~.."_.,_..__".......<.........._.~_~..........~.""~_"'~~~"'~~~...>_.~""...._~H~'""""_..__.~~,.-"'.......,_...._.~........-..-----~~_.........~"~.~"~. '< 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 04-XX RESOLUTION OF THE PRIOR LAKE CITY COUNCIL MOTION BY: SECOND BY: WHEREAS: On June 17th, 2002, the City Council adopted resolution 02-99 establishing a matching grant program to encourage Downtown building fa9ade improvements and providing funds for the program, and WHEREAS: The City Council has determined there is a need for a program of incentives to encourage businesses in the Downtown area of the City to renovate building facades, and WHEREAS: The City Council has determined such a program is in the public interest and serves a public purpose by encouraging the revitalization of the Down town commercial area, and WHEREAS: The City Council has adopted design guidelines for Downtown development in the City's zoning ordinance,. and . WHEREAS: Projects to be funded with the grant funds must be consistent with the design guidelines, and WHEREAS: Harry and Gina Tupy were granted favade improvement funds in an amount not to exceed $5,000 and have substantially completed the improvements, and WHEREAS: The applicant has presented documentation of significant additional costs that were not contemplated at the outset of this project, and WHEREAS: The City Council has been asked to approve an additional $3,565.50 to cover these increased costs. THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, 1. The recitals set forth above are incorporated herein. 2. The grant amount of up to $5,000 for Harry and Gina Tupy is hereby amended for the properties at 16203 and 16197 Main Avenue to a maximum of$8,565.50. 3. The grant amount is to be paid in an amount up to 50% of demonstrated costs related directly to fa9ade construction. In any case, the amount paid to the applicant shall not exceed the amount listed in 2. above. The City shall reimburse the applicant for actual costs incurred as demonstrated by paid invoices, cancelled L:\Community Dev\downtown facade\T~~~~ake.com Phone 952.447.4230 1 Fax 952.447.4245 checks, lien wavers or such other evidence of payment of eligible costs as the City in its sole discretion may require. Passed and adopted this 5th day of April, 2004. YES NO HAUGEN HAUGEN BLOMBERG BLOMBERG LEMAIR LEMAIR PETERSEN PETERSEN ZIESKA ZIESKA {Seal} Frank Boyles, City Manager City of Prior Lake L: \Community Dev\downtown facade\ Tupyrevisedres.doc RE/FACADE IMPROVEMENT March 10,2004 Attention Don Rye City of Prior Lake Reference: fa~ade improvement proposal Location: 16197 - 16203 Main Ave, Prior Lake Property owners: Harry & Gina Tupy Weare requesting additional funds to fund the completion of the improvements as per the proposal we accepted from best way construction. We have experienced an unexpected situation after our initial down payment to commence construction. The partnership of the Best Way Construction was dissolved leaving only one party responsible for contract to complete this project. We accepted this proposal not knowing that we would be subject to false promises. The proposal did not include some unforeseen work and materials that are now added to the cost of this project. Attached is the added cost of $5,657.00 due to Mike Ryan and Nick Lodermeier and arroximately $450.00 in extra cleanup cost and misc materials furnished by the owners. Our request is for the city of Prior Lake to share the extra $6100.00 from the Fa~ade improvement allotment funds. Thank. you for consideration. Harry & Gina Tupy ~1hrt I ~ ~~ M.\RCIl ). 200.+ ~"j ,: U\~=--;l i I MM -8. I.: l~j ATTENTION: HJ\RRY AND GINA TUpy REFEI~ENCE: Bl JILI>IN<.; IMPROVEMFNTS AND CONCERNS IIARRY AND G INA~ :I-l \.Jl I \VI: WLRI: ('( )NTRACTFD TO PERFORM TIlE FAC;ADE IMPROVEMENTS ON BUILDIN<.,S # 16197 AND # 16203 U )CAIVJ) ON MAIN STREFL PRlcm. LAKE. IMPROVEMENTS BFGAN WITH THE TEAR-OF! P!H KTSS WI: WFRL TO INSTALL NI':\V STANDIN(; SFAM METAL WIlEN WE DISCOVERED MANY 1(( } IIIJ) .'\NI) \ iNS\ 11'1'( H<TIT) STRI iC'r\IRI:S. WI: M/\I)/." NITLSS/\RY RFPAIRS Sl J(,ll AS, RIYI.!\CIN(; /\LL R<nTED STUDS, Slfi:ETING ANn A TALLER PEAK WAS ADDED ABOVE THE SIGN FOR HAlRMAn.:. ORI(iIN/\LLY TIlE PROPOSAL CALLED H)R A SMALL PITCH AND ONE PIECE CRICKEI TO PRI.:VLNT /\NY WATEI~, SNOW OR ICE BUILD-UP. DURING TIlE REPLACEMENT OF ROTTED !I<lfv! AND IH<AClN(; WI.: RI':ALlZI':D THAT ADDING A TALLER PEAK AT A STEEPER ANGLE Vv'OULD ,'\1 lOW lIS TO BI':TI"l-:R /\NCHOR TI II,: S'I1UJCTURE TO TIlE WALL OF TIlE BUILDING. 1'1 lIS SmIJeTIJRI: SIJPPORTS TilL SKiN FOR TIlE FOR HAIRMATE AND IS NOW UNIFORM WITII TilE PI./\KS or '1'111-: ,SlJRROIJNDIN<.j BIJSINFSSES. THE IMPLFMENTATION OF TillS SUPPORTIN(, SIRl Jell JRI-: l'ALI.L)) FOR HI JILDING I:RAME STRUCTURE, SHEETING, ICE AND WATER SHIELD AND II II-' SI;\NDIN<.; SLAM METAl.. Till" ()RI( lINAL PROPOS/\L HlR '1'111,: I-'A<.:AIW IMPROVEMENTS FOR TilE # 16197 AND # 16203 ON ivl/\IN SIRLLI OF PRl<)1{ LAKE NOTI~D TIIAT ANY ADDITIONAL CARPENTRY WORK WOULD IW HILI.IJ) PFR TIME AND MAIVRI/\L AS NEEDED ON BOTH BUILDINGS, WE SPENT A TOTAL OF 92 !\!)I)IIIONAL C'ARPENTRY I lOURS PLUS $1,127 FOR THE ADDITIONAL MATERIAL NEEDED TO COMPLLTL TillS TASK. ADDITIONAL l'IIARGFS OF $850.00APPLIFD WIlEN. DOUG BRANDT FIITTRIC PERH >l<rvll-:l) TI IF ELLCTRICAL WORK FOR DISCONNECTION, REMOVAl., RH'ONI>ITIONIN(; PLUS INSTALLlN<., AND RECONNECTfNG TIlE LIGHTED SIGNS AND TWO OUTSID!': 1./\ivWS. PI.F;\SI': VIFW TIlE ATT;\(,III':1) INVOICF LISTING TIlL TOTAL AMOUNT DUE FOR TIlE ADDITIONAL 11Mi'" ANI) MATI'RIAL NECLSSARY FOR ('OMPLLTION OF TIllS PROJECT. NOTE: TIILRI: IvlJ\.IOl( DLLi\ 'II'S TIIROU<.jJ lOUT OUR (lUEST Hm. 11 IE SUCCESSfUL COMPLLTtON OF THIS PROJECT TIlESE DELAYS WERE DUE TO THE UNFORESEEN ISSUES, MATERIAL AND THE I AHOR NITT>ED AS WFLL AS SOMF UNCOOPERATIVE WEATHER. Till' DOWN p/\ YMFNT or $5,000 QUICKLY SPJ.:NT IN THE MIDST OF TilE lJNhJRTUNAIT (iNH)RLSITNS LTC.. TIIROtJUIIOtJT TillS PROJECT. WITH NO OTHER OPTIONS, I WAS FORTUNATF LNOI l(ill ro PAI<TNFR WITII /\ FI-:LI.OW CONTRACTOR, "MIKE RYAN", l\1IKE WAS ABU': TO I.IN/\NCI: '1'1": PROJITT TO COMPI.FTION. THANK You FOR YOU TIME AND PATIENCE IN THIS MATTER. SINCI':RFl, '{. NICK LODERMEIER .~~=- MIKE RYAh.-f-t-41 ./ f;f 'Y"tJ~/j.e l ~s ),~. '^ b \J-. - ~ ~ -:J~ .~ ...") q ~\ JJltiJID ~1J(o)(~~ loJ(J3{ID~~\ 2911 !UXiT Of'. OUllI:H <:05101Jlf'R'S ORDER 1-10 PI-lONE .:jq 7 ..: CC;l>~-S:- :5-S--0C-( HEl.PER S 1 All liNG UA 1 L tJOi.-:,'''r j j' ORDEn 1 AKEN BY UIl I 10 III/Rtf p? L~/.;f.,/f r;,/..J~. A()I)IU,S~ Iblq7-r/6~c)5 /Ylti.f~Lf S'T cjJ fl." () ir L (4 ~ z- It LJ { Jon NAME AND l.OCA TlON Ji.:; /, <:, fa { [] OA V WORK [J CONTRACT f] EXTRA JOB PHONE yt? -(J t5':.-~ - d- 31' C-( Uti SCRIPTION OF WORK flIt Itlll)' TIOt/v....! C i:''''i:J b tit' C-r tJ 0 y I; ,}{.l'.-(oollecl 6.11 r::l.~C t<..cI e IJ1-lp1 rO u"Jf.1.t' if I- ~ ;;PI" I hUrlcbYl 'i~ Jb/1.'] .f" / fl' "}"0-5' i/tc/vde. . --..- Cl.'J * *'o.";E '2L~(.J '_ ., :/'. flIl/JI Ju,tJ1/"<-'" X ~";'fJPr IIoL.-'Y" -::::= p,-.x.J oLi _ lyl ti. t en 4.. { co "";, -f ..('0--( 6L/c1 1..(..< 0 t1..c.l ( -~ <I & 7' ,,'c.) e..' e (:4-'{\r c,"- \ ,,'0 t"rr l(.. \ f\.c.lvc.\.t' c:;;- .-. ._ . (t, \i\A.(j,) c-\...( " "(' <2,c . C' ~. \. c.\', +c.' () I. '\... .- l2\~ CSt: O~\..iI\e.L * '( 6 ec. () (/l~e c.. +- . 11 ...?.5 (,'; c:~ - \'i\Shl\.M1 5;"[<-1:'> + J (7,<.),,- L-.~ - b- --f fei~(~(J-lH..L4 &/4J[("{-" _.t-1r.__or''lWL4-( Afe/lc6?~{ -:::::: ~~....,o~ -jjtYlf:::;..,- \ ( C:ti\-\LUt\C..L <.\\J~ ._' _~o V\A....~l.e.+'D" TOTAL MATERIALS - ~ 7 c;v-- TOTAL LABOR 6?J:J ~ 35(....-' .. Thank fou Fbr Jour Bustne$S a c: PROMPT PAYMENT APPRECIATED ~lcw\.c.e, f)' (L. ~ ~ ex 3'" 'B_'7~-,~rOAK ~7Z-- TOTALAMOUHT 106 I] No one home '" Tolal amounl due Ll Tolal billing 10 for at>ove work: or be mailed alter completion 01 work Signature I hereby acknowledge the satislaclory completion ollhe above described work. . ~'.' : ------ - ;~', . ~ (, \ STATEMENT. .; From J..ar;;--~ k{':VK#4/20') _ ~~ ~ C /JIj 4-/<.K.. ~ f1~~PA!4L. r~ /1N, rS0379 - 3 /,lc,/o ~ TO-#~/! ~N.P a~+ NJ7y> Address L(zJ:.Q3.;. /6/97 /'f-9-/1V / M City ~/z,e L4-~, 11~ ~.5"'37~ Terms 11- \ / I I l I , I , i ta ~K J:)o~E. ~r /6/9 17 ~o I~;' 0.3 ~~/;., ~;i ~~ 9b ~/1U ~ Bb< e: ~~TT/~C #/l/a e~ wr~ r} 72:; - WCi. 'R. -;::"'02 L IG~T/~a , B Ih2s 3;20 00 R~ '!.o/\/5T~/J-e7/:Vt?. C~ Llkj ~i',j 7/e/;.</ .8L.T;e,J~.d~ ,~... '-fi V.€,S /(,0 00 Ti~ /s~ :P4/~n~G ~e2 ~7r~ la4'C#VP OFNeu/'" .. '~ ~'I j:fN J II ... ....._. e;o rl--l.: . /oe. ui 11--'<- i? II!.? ~ ~ If"" J:. 7ir~ i '~I vTI^'G ~~.~ Lue, ?u'e r A../.. /01/- L-L-.f-n D'A/ f /~ Ihe~ '180 00 Iv! 4- J ~/2i ~'- ?eod~;;"LJ ~ V tit VN e:...o $ j.LJol'l co ., "' .- . .. I..... . . . . I I ~: ,~