09-04-81 agenda
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HOUSING AND REDEVELOPMENT AUTHORITY
Off ice of Executive Director
HRA Letter No. 31
Agenda September 4,-1981
Housing and Redevelopment.
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Selection of Developer, FHA Section 235 Houses
On August 17, 1981, the HRA authorized the advertising for
bids to construct two FHA Section 235 houses. -The advertisement
was published, a bid opening was held September 2, 1981; and one
proposal from Lida. Construction, Inc. was received fro $101,568.
At this time, it is requested that the HRA authorize the Chairman.
and the Executive Director to enter into a construction contract
with Lida Construction, Inc. for the bid amount.
The houses proposed for construction by Lida Construction
are basically the same as those presented to the HRA in May, 1981.
Approximately 1,200 square feet in area, four bedrooms, one and.
three quarter. bath, patio door, deck or patio area ,. slide-by win-
doves, masonite lap siding, ceramic the bath, vinyl kitchen and
bath floors, carpeting, appliances, driveway parking area and en-
ergy efficiency to code standards... The exceptions are that the
woodwork would be mahogany rather than oak, and the cabinets will
be manufactured rather than custom built. Sodding the yards will
be done next spring rather than this fall and will not be included
in the contract.
The selling price of these homes by the HRA will be $52,800
each. This is $4,032 more than the construction contract amount.
of $101,568. Previously, it was anticipated that a contract with
Lida Construction would be in the amount of approximately $98,000
to $100,000, but not to exceed $100,000. The $4,032 balance which
remains after sale of the houses, and paying the contractor, will
be utilized for closing costs and the installation of the sod in
the spring. On July 20, 1981 the HRA approved the basic elements
of a contract to be used for the construction of the homes. It
is proposed that the contract to be executed between the HRA and
Lida Construction follow that same form.
If the contract with Lida Construction is approved today,
construction can begin within a few weeks with completion during
the end of November, 1981. The house plans, in addition to having
been previously approved by the HRA, have also been approved by
FHA for inclusion in the 235 Program.
HRA Letter No. 31 -2- September 4, 1981
It is recommended that the HRA adapt the attached resolution
which accepts the bid submitted by Linda Construction, Inc., approve
the bid minutes and tabulations, and authorize the Chairman and
Executive Director to execute the contract with Lida Construction,
Inc.
Respectfully submitted,
~1!``,~,
Karl Nollenberger
Executive Director
KN/eja
cc: Community Development Director
Administrative Services Director
Finance Coordinator
Housing and Redevelopment Coordinator
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HOUSING.-AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD
Bid Opening
September 2, 1981
Two Unit Section 235
Housing Construction
A meeting of the Administrative Staff was called by Acting Executive Director
Joyce Wilde, who announced that the purpose of the meeting was to receive,
open and read aloud bids for a Two Unit Section 235 Housing Construction Project,
as advertised in the official newspaper on August 19 and 26, 1981.
Present: Joyce L. Wilde
Don Fondrick
Eileen Anderson
Marcia Hale '
Bruce Nordquist
The following bid was submitted and read aloud:
Bidder Amount of Bid
Lida Construction $101,568.00
Bid Security Amount of Security
Letter of Credit $.10,000.00
Bank Money Order $ 156.80
T1
HRA RESOLUTION NO.
.RESOLUTION AUTHORIZING ACCEPTANCE OF BID
AND EXECUTION OF A CONSTRUCTION AGREEMENT FOR
FHA SECTION 235 HOUSING
WHEREAS, the Housing and Redevelopment Authority (HRA) has
determined that there is a need for moderate income housing in
the City of Richfield; and
WHEREAS, the HRA has acquired sites for this housing which
are legally described as:
Part of Lot 9, Block 2, Kendale Addition; and
Part of Lot 5, Block 4, Betcher's Addition,
Hennepin County, Minnesota; and
WHEREAS, specifications have been developed and approved
by the HRA for construction at each site; and
WHE RE AS, the HRA authorized bids to be received and bids
were formally opened at 11:00 a.m., September 2, 1981;_and
WHEREAS, the bids were evaluated based on the specifications;
an d
WHEREAS, the bid proposal, from Lida Construction Inc.,
was found to have proper form and proper
bid security with detailed plans acceptable to the HRA;- and
WHEREAS, Lida Construction Inc. proposes to construct two
FH.A Section 235 houses for a total cost of $101,568 , utilizing
these plans, as modified, and approved by the HRA and FHA; and
WHEREAS, a construction agreement will be utilized to ensure
that Lida Construction Inc. performs in accordance with plans
and specifications.
NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT
AUTHORITY OF RICHFIELD:
1) that the bid from Lida Construction Inc. for constructing
two FHA Section 235 houses for $101,568 is accepted;
2) that the Chairman and Executive Director are authorized
to execute a construction agreement with Lida Construction, Inc.;
3) that the Executive Director is authorized to release the
bid security once the contract has been executed.
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Passed by the Housing and Redevelopment Authority of
Richfield this 4th day of September, 1981.
Thomas E. Harms, Chairman
ATTEST:
Michael Freeman, Secretary
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