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RESOLUTION APPROVING DEDA RESOLUTION 19D-48 AUTHORIZING AN AGREEMENT WITH RACHEL CONTRACTING, LLC FOR DEMOLITION OF THE PASTORET TERRACE BUILDING IN THE AMOUNT OF $148,683.
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CITY PROPOSAL:
WHEREAS, the Duluth Economic Development Authority (“DEDA”) is the owner of the Pastoret Terrace Building and the Robeson Ballroom Building (together the “Pastoret”) located at the intersection of N. 2nd Avenue E. and E. 1st Street; and
WHEREAS, DEDA approved resolution 18D-25, approving an environmental assessment worksheet (“EAW”) to evaluate the existing condition of the Pastoret and demolition thereof as the necessary and most reasonable action to address the condition thereof, and the EAW was subsequently approved by the appropriate government agencies; and
WHEREAS, pursuant to DEDA resolution 18D-38, DEDA applied for a demolition permit to raze the Pastoret building, obtained plans and specifications for the demolition, and advertised for bids for such demolition; and
WHEREAS, a bid opening was held on Friday, December 13, 2019, and the lowest qualified bid was by Rachel Contracting, LLC to demolish Pastoret in an amount not to exceed $148,683; and
WHEREAS, pursuant to city council Resolution 10-0229, city council approval of any expenditure over $100,000 by DEDA is required; and
WHEREAS, DEDA approved DEDA Resolution 19D-48 at its regular meeting of December 18, 2019, authorizing award of a contract to Rachel Contracting, LLC to demolish the Pastoret on its bid of $148,683.
NOW, THEREFORE BE IT RESOLVED, that pursuant to Resolution 10-0229, the city council hereby approves resolution no. 19D-48 of the Duluth Economic Development Authority authorizing a contract in the amount of $148,683 with Rachel Contracting, LLC for the demolition of the Pastoret Building and the Robeson Building located at the intersection of N. 2nd Avenue E. and E. 1st Street.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize a DEDA contract to cause the demolition of the Pastoret Terrace building and associated Robison Ballroom. City purchasing officials conducted the bid process on behalf of DEDA. Seven bids were received and evaluated. Based on the analysis of the bids received, Rachel Contracting, LLC was selected to proceed with the demolition project, at a cost not to exceed $148,683. DEDA anticipates issuing a Notice to Proceed to the selected contractor following approval.
Pursuant to Resolution 10-0229, city council approval of any expenditure over $100,000 by DEDA is required.