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RESOLUTION APPROVING DEDA RESOLUTION 20D-74 AUTHORIZING A CONSTRUCTION MANAGEMENT AGREEMENT WITH KRAUS-ANDERSON CONSTRUCTION FOR MAINTENANCE AND PRESERVATION OF THE PASTORET TERRACE/ROBESON BALLROOM BUILDINGS. (REPLACEMENT)
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CITY PROPOSAL:
WHEREAS, on August 31, 2020, the Minnesota Court of Appeals issued an opinion remanding to the St. Louis County District Court an action under the Minnesota Environmental Rights Act concerning the Pastoret Terrace and Robeson Ballroom buildings; and WHEREAS, the Minnesota Court of Appeals’ instruction to the St. Louis County District Court on remand was that the District Court “shall restore the temporary injunction against [the city’s and DEDA’s] demolition of the property during the pendency of this action and shall require [the city and DEDA] to perform all maintenance and repairs necessary to prevent the property’s further deterioration”; and
WHEREAS, the city and DEDA reasonably anticipate that the District Court will enter an order implementing the instruction from the Court of Appeals; and
WHEREAS, the city and DEDA reasonably anticipate that compliance with any court order implementing the instruction from the Court of Appeals will require construction management services as contemplated in DEDA Resolution No. 20D-74;
THEREFORE, BE IT RESOLVED, that pursuant to resolution 10-0229, the city council conditionally approves DEDA Resolution No. 20D-74 authorizing a construction management agreement with Kraus-Anderson Construction for services related to maintenance and preservation of the Pastoret Terrace/Robeson Ballroom buildings in an amount not to exceed $135,000; and
FURTHER RESOLVED, that the city council’s approval of DEDA Resolution No. 20D-74 is conditioned on entry of a court order or settlement agreement that would require construction management services as contemplated in DEDA Resolution No. 20D-74
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the execution of a construction management services agreement with Kraus-Anderson Construction to assist DEDA in performing maintenance as may be required of the Pastoret Terrace/Robeson Ballroom buildings in an amount not to exceed $135,000.
When DEDA acquired the buildings in 2016, it was for the purpose of redeveloping the property in a manner which would be beneficial to the neighborhood. As the buildings were known to be on the historic register, DEDA sought proposals which would best meet DEDA’s redevelopment objectives, including possible historic re-use of existing structures, and demonstrate sound economic viability. Having failed to receive and proposals that would satisfy DEDA’s objections and redevelop the existing structures, DEDA accepted the proposal from Merge LLC, which required the demolition of the buildings.
DEDA is defending ongoing litigation challenging demolition under Minnesota environmental statutory provisions. On August 31, 2020, the State Court of Appeals reversed an earlier District Court ruling and remanded the case back to the District Court with the order that DEDA “perform all maintenance and repairs necessary to prevent the property’s further deterioration”. The District Court has not yet issued specific guidance interpreting that language from the Court of Appeals.
Because “prevent[ing] the property’s further deterioration’ is likely to require a significant level of expertise in the areas of design, construction, and historic restoration as well as the ability to respond expeditiously to needs discovered in the course of that work, DEDA sought proposals from experienced construction management firms to assist staff in fulfilling the court’s order in the most cost-effective way possible.
Two proposals were reviewed and Kraus-Anderson Construction was selected as the best fit for the work that is needed to be done. They will assist an architect in the design of complex projects, do minor work on minor projects, assist Purchasing in bidding out the work in accordance with DEDA’s established policies and perform construction inspection to make sure that the work is properly performed.
On October 28, 2020, DEDA approved the contract with Kraus-Anderson Construction.