Approve Grading for the Creation of 5 Lots - Test Plot Development at North Commons

As the Housing and Redevelopment Authority members will recall, the proposal to move forward with the development of North Commons included the creation of 5 lots to the west side of the park along Zeolite Street.  These lot locations are also the site of the test plots to ascertain the value and direction of the City's topsoil specification - which remains a question that emerged through the 2011-12 development cost study process.

On February 28th, 2012, the HRA directed staff to proceed with the various elements of the park, the topsoil 'experiment' and grading for the lot creation.  Staff subsequently issued a Request for Quotation for hauling, earthwork and the placement of topsoil (sans the topsoil for the 4 test plots, which will be done as part of the irrigation RFP).  The RFQ was divided up into differing line item quotes to identify what amount of the work to be performed was attributable to the lot creation, and what costs should be assigned to the park.

Four (4) quotes were received on April 4th, 2012 for all of the earthwork and low sum total quote was for $28,000 for the cost associated with the lots and $4,000 for the balance of the park work. (The highest quote was $149,690.)

The Topsoil importation and spreading for the lots and park was $14,400 (not including the 'specialty' topsoil associated with the test plots, which will be determined as part of the irrigation RFP).  Based upon the area, approximately 10% or $1,400 of topsoil hauling and would be an associated lot creation expense, and the rest of the $14,400 ($13,000) is attributable to the park's construction.

Additionally, there are two other services that need to be ordered before or concurrent with this grading and hauling activity, and that is wetland delineation at $350, and soil boring and testing for the fill and compaction of the 5 lots at a range estimated to be between $800 and $1,200 dollars. The wetland delineation may be considered 50% associated with the lots, the other half the park.  Similarly, the silt fence and MPCA permit of $2,470 may be considered a shared expense between the two land development endeavors. The boring and testing is solely a pad-ready lot expense.

The purpose of this case is to primarily to address the earthwork for the creation of the five lots to be sold for single family homes, and provide the grading and application of topsoil for the larger park space. Staff is in the process of determining the costs for the various other aspects of the test plots and North Commons' development as eluded to above, and these elements will go before City Council later this spring.

The investments this case discusses are summarized below:

Development of the 5 lots
$28,000 hauling, grading
$1,400 topsoil
$1,200 soil boring and testing
$175 Wetland delineation
$1,270 silt fence and permit
$250 seeding estimate (non-test areas)
$1,000 contingency
$33,295 TOTAL

Earthwork for North Commons
$4,000 hauling and grading
$13,000 topsoil
$175 Wetland delineation
$1,270 silt fence and permit
$2,250 seeding estimate (park areas)
$1,000 contingency
$21,695 TOTAL

Funding for the single family lots to be sold is proposed to come from the COR Revolving Fund, which has a balance of $72,500 from the formulaic assignment of the first installment of land sales to the Flaherty & Collins' project.  (First payment received of $250,000 @ .29%)  It should be noted that before, or at the conclusion of the topsoil testing project in the end of October 2012, the lots can be listed with a broker, and the proceeds paid back to the COR Revolving Fund at the time the lots are sold, (meanwhile the HRA can embark upon the process to plat these lots).

Funding for the earthwork associated with the park is proposed to be from the Park Trust Fund, and would be authorized by City Council following HRA approval of the creation of the 5 lots as outlined above.

The earthwork for the 5 lots to be created for sale would be funded by the COR Revolving Fund in the amount of $33,295.

The grading, hauling and topsoil spreading for North Commons would be funded by the Park Trust Fund in the amount of $21,695.

Motion to approve earthwork for the 5 lots to be created from the COR Revolving Fund in the amount of $33,295.

Motion to recommend City Council approve the grading, hauling and topsoil spreading for North Commons concurrent with the lot grading, and funded by the Park Trust Fund in the amount of $21,695.