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AGENDA RECOMMENDATION |
Item No: 4.A.
Economic Development Authority
- Meeting Date:
- 10/14/2025
Agenda Item:
Resolutions accepting feasibility report and ordering project for Capital Improvement Projects 11203 & 11204; Orness Plaza and Mankato Scattered Sites RAD Conversion improvements.
Recommendation/Action(s):
Adoption of the attached resolutions
Summary:
In August 2024, the Housing Division contracted Dominion Due Diligence Group (D3G) to perform a Capital Needs Assessment (CNA) on select public housing units in Mankato in preparation for the RAD conversion. The Capital Needs Assessment identifies Critical and Non-Critical repairs that the Department of Housing and Urban Development (HUD) requires the Mankato EDA to perform in conjunction with the RAD conversion. HUD mandated that repair contracts are executed in advance of the conversion to address the repairs identified in the CNA and requires the specified repairs to be completed within 12 months of the conversion. The public housing units that were assessed include Orness Plaza (101 units), 500-512 Agency Road (4 units), 2005-2021 Hoffman Road (5 units), 617 E. Elm Street (3 units), 601-605 Harper Street (5 units), 1617-1621 5th Avenue (6 units), and 913-925 Mayvis Boulevard (6 units).
The CNA identified the following types of critical and non-critical repairs including: parking lot pavement markings, audio/visual alarm installation, tree maintenance, plumbing, HVAC, fire panel upgrades, flooring, ceiling tile, appliances (ranges & refrigerators), miscellaneous exterior concrete repairs and maintenance, sewer and water service upgrades, design/construction administration services to convert one unit into an ADA compliant property, electrical upgrades (GFI installation), deck maintenance, exterior pressure washing, and kitchen cabinet replacement. The report generated property specific repairs and multiple contracts will be required due to different wage rate definitions.
The project is proposed to be funded by the 2026 Mankato EDA Housing Capital Budget. The estimated cost of the necessary improvements is $760,551.02. The required repairs to Orness Plaza, 500-512 Agency Road, 2005-2021 Hoffman Road, 617 E. Elm Street, 601-605 Harper Street, 1617-1621 5th Avenue, and 913-925 Mayvis Boulevard are being proposed to start in February 2026 and are expected to be completed in December 2026.
The estimated costs and funding sources for the project are as follows:
Staff recommends the Economic Development Authority accept the project feasibility report, order city staff to prepare final plans and specifications, and instruct the Executive Director to advertise for bids in accordance with the requirements of law.
The CNA identified the following types of critical and non-critical repairs including: parking lot pavement markings, audio/visual alarm installation, tree maintenance, plumbing, HVAC, fire panel upgrades, flooring, ceiling tile, appliances (ranges & refrigerators), miscellaneous exterior concrete repairs and maintenance, sewer and water service upgrades, design/construction administration services to convert one unit into an ADA compliant property, electrical upgrades (GFI installation), deck maintenance, exterior pressure washing, and kitchen cabinet replacement. The report generated property specific repairs and multiple contracts will be required due to different wage rate definitions.
The project is proposed to be funded by the 2026 Mankato EDA Housing Capital Budget. The estimated cost of the necessary improvements is $760,551.02. The required repairs to Orness Plaza, 500-512 Agency Road, 2005-2021 Hoffman Road, 617 E. Elm Street, 601-605 Harper Street, 1617-1621 5th Avenue, and 913-925 Mayvis Boulevard are being proposed to start in February 2026 and are expected to be completed in December 2026.
The estimated costs and funding sources for the project are as follows:
| ITEM | COST |
| Orness Plaza Improvements | $548,086.19 |
| Mankato Scattered Sites Improvements | $143,323.83 |
| TOTAL CONSTRUCTION | $691,410.02 |
| Construction Contingency — 10% | $69,141.00 |
| TOTAL PROJECT COST | $760,551.02 |
| FUNDING SOURCE | AMOUNT | PERCENT |
| 2026 Housing Capital Fund | $760,551.02 | 100% |
| TOTAL FUNDS | $760,551.02 | 100% |
Staff recommends the Economic Development Authority accept the project feasibility report, order city staff to prepare final plans and specifications, and instruct the Executive Director to advertise for bids in accordance with the requirements of law.