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AGENDA RECOMMENDATION |
Item No: 4.B.
Economic Development Authority
- Meeting Date:
- 09/14/2026
Agenda Item:
Motion considering Change Order 1 on Capital Improvement Project 11204; Mankato Scattered Sites EDA RAD Conversion Improvements.
Recommendation/Action(s):
Motion approving change order.
Summary:
The project as bid includes replacement of appliances, LVT flooring, concrete patios, driveways, sidewalks, electrical upgrades and fire alarm systems. This work takes place at various sites; these locations and the scope of work were identified through performing multi-site capital needs assessments performed by Dominion Due Diligence Group (D3G). The scope of work was the first 2 years of the 20-year schedule provided in the assessment.
The project feasibility report was presented to the EDA Board on October 15, 2025, at which time the resolution was adopted to move the project forward. The bid award was presented to the EDA on April 13, 2026, at which time the resolution was adopted to award the bid to Wilcon Construction.
Change Order No. 1
The added scope of work includes the replacement of 26 water heaters and 5 furnaces at various Mankato EDA scattered sites. This additional scope was identified by the U.S. Department of Housing and Urban Development (HUD) and incorporates Years 3 and 4 of the original 20-year capital needs schedule. The additional work was identified because the original eTool assessment is now two years old, requiring the EDA to address additional capital needs.
The rationale for adding this scope is related to HUD’s phased closing process, which involved converting smaller sites through the Section 18 conversion process (April 1, 2025) and now the larger sites through the Rental Assistance Demonstration (RAD) conversion process. This phased approach allows the EDA to retain and utilize all available reserve funding while addressing the identified capital improvements for the next two years.
The work included in change order 1 is to replace 26 water heaters at various Mankato EDA housing properties located at Hoffman St, Agency Rd. Mayvis Blvd, 5th Ave, Elm St. and Harpers Street. The work also includes replacing 5 furnaces at Mayvis Blvd. The change order also includes a time extension on the contract to reflect the delay from HUD on the property closing process. No work is allowed to begin until HUD completes their process. The new completion date is proposed for March 26, 2027.
The total cost for Change Order 1 is an increase of $105,270.00, roughly 49% of the total project cost. HUD is requiring this additional work to finalize the RAD closeout.
Staff recommend the EDA approve change order 1 and proceed with the RAD closeout process.
The project feasibility report was presented to the EDA Board on October 15, 2025, at which time the resolution was adopted to move the project forward. The bid award was presented to the EDA on April 13, 2026, at which time the resolution was adopted to award the bid to Wilcon Construction.
Change Order No. 1
The added scope of work includes the replacement of 26 water heaters and 5 furnaces at various Mankato EDA scattered sites. This additional scope was identified by the U.S. Department of Housing and Urban Development (HUD) and incorporates Years 3 and 4 of the original 20-year capital needs schedule. The additional work was identified because the original eTool assessment is now two years old, requiring the EDA to address additional capital needs.
The rationale for adding this scope is related to HUD’s phased closing process, which involved converting smaller sites through the Section 18 conversion process (April 1, 2025) and now the larger sites through the Rental Assistance Demonstration (RAD) conversion process. This phased approach allows the EDA to retain and utilize all available reserve funding while addressing the identified capital improvements for the next two years.
The work included in change order 1 is to replace 26 water heaters at various Mankato EDA housing properties located at Hoffman St, Agency Rd. Mayvis Blvd, 5th Ave, Elm St. and Harpers Street. The work also includes replacing 5 furnaces at Mayvis Blvd. The change order also includes a time extension on the contract to reflect the delay from HUD on the property closing process. No work is allowed to begin until HUD completes their process. The new completion date is proposed for March 26, 2027.
The total cost for Change Order 1 is an increase of $105,270.00, roughly 49% of the total project cost. HUD is requiring this additional work to finalize the RAD closeout.
Staff recommend the EDA approve change order 1 and proceed with the RAD closeout process.