The former Arnolt Corp. building on East Durbin Street will be demolished this year. Photo by David Slone, Times-Union.
The former Arnolt Corp. building on East Durbin Street will be demolished this year. Photo by David Slone, Times-Union.
Warsaw Redevelopment Commission on Monday approved the agreement between the city of Warsaw and Green Demolition Contractors Inc. for the demolition of the former Arnolt Corp. building.

The Board of Public Works and Safety awarded the bid to Green and approved the contract on Friday after the Chicago-based company came in with the lowest quote at $178,800.

Warsaw Community Economic and Development Director Jeremy Skinner said at the time, they were looking at two different funds to pay for the demolition, which was why the Board of Works approved it, but now it will be fully funded out of the Redevelopment Commission general fund.

“We have $200,000 in that fund for capital improvements,” he said, so the fund will pay for the demolition. “Since it will come out of redevelopment, I need your approval for the contract.”

If there are any overcharges in the demolition of the building and additional funds are needed, Skinner said the good thing is that the Board of Works already approved the bid and contract.

George Clemens, who sits on the Board of Works and on the Redevelopment Commission, said, “I know the city was surprised we got that many bids and very happy that we can get it done for that price. Look at the size of that structure. I was very surprised.”

The other six bids that came in for the demolition were: Saber Demolition Corp., Warners, N.Y., $370,000; Dore & Associates, Bay City, Mich., $292,300; Chuck Shane Excavating, Akron, $198,000; Kreager Group Inc., Fort Wayne, $247,690; Advanced Excavating & Demolition LLC, Macon, Ohio, $217,750; and Baumann Enterprises, Garfield Heights, Ohio, $368,000.

Skinner said there was quite a range, but with a grouping at the high end, a grouping at the low end and some in the middle, the city felt it was a “good bid.”

Mike Klondaris, Commission and Common Council member, asked what would happen “should we run into a situation similar to what’s happened down at the old waterworks building where the contractor says there’s stuff we didn’t know about, we’re not aware of it, they’re not aware of it? I don’t think we want to find ourselves in a position like what’s going on down there.”

During the demolition of the former Indiana American Water building for the mixed-use building of the North Buffalo Street project, a boarded-up basement was discovered and that halted the demolition and project.

Responding to Klondaris’ question, Skinner said, “So the bid is based on the bid (specifications) and those specs are kind of specified out, so if there are some unknowns, like a big gaping hole that needs filled in, then they can present to us a change order and we’ll review that change order based on the price of materials and so forth. If they were to come back with something that was unacceptable, then we could basically not do it and contract out with someone else to fill it.”

He said with the contract, specifications and everything else they do, they try to limit that issue, though they can’t cover all the issues.

“We don’t know what we don’t know,” Skinner said.

Commission President Tim Meyer said under the foundation, nobody knows what might be down there.

Klondaris asked if there were any requirements to keeping the dust down during the demolition. Skinner said there were none beyond the usual, and he estimated that once demolition begins, it will be done in about a week.

“I don’t see this being very long,” Skinner said.

Commission Vice President Rick Snodgrass made a motion to approve the contract, Klondaris seconded it and it was approved 4-0. Commission member and Common Councilman Jeff Grose was absent.

The former Arnolt Corp. building is at 2525 E. Durbin St. The city took ownership of the building after it was in receivership for a number of years. Real America plans to turn the property into a multi-family housing development.

In other business, the Commission:

• Approved claims, including $12,484.40, $2,758.75 and $2,722.90 to Wessler Engineering for the Airport Road lift station; $63.40 to the Times-Union for advertising of the Arnolt demolition bid; $3,124.60 to SES Environmental, an asbestos contractor, for identifying the shingles on the Arnolt building; $284 to Barnes & Thornburg LLP for ongoing legal services regarding the Gatke memorandum of understanding; $62,568.75 to Regions Corp Trust for a bond payment for Warsaw Commons; five bond payments to Huntington National Bank for $141,485 for Winona PVD, $53,700 for Winona PVD, $24,812.50 for Winona PVD; $85,000 for Buffalo Street project, $187,500 for Airport Industrial Park and $950 for annual administration fee; and $3,870 to Cornerstone for the ongoing design for the park next to the Warsaw Municipal Airport.

Klondaris asked about the findings from SES on the shingles on the Arnolt building. Skinner said the shingles were asbestos but they were not friable (easily crumbled), so there’s no special requirement for moving them other than they have to go to a landfill and “not dumped into someone’s back yard.”

• Reviewed the annual information for continuing disclosure compliance from municipal advisors Baker Tilly for the fiscal year ended Dec. 31, 2021. Skinner told the Commission it was just for their information and no action was required. Meyer will sign the document and Clemens will attest to it.

• Reviewed an electronic meeting policy resolution from the Association of Indiana Municipalities. Skinner also will send the Commission a copy of the Common Council’s policy and ask city attorney Scott Reust to attend the Commission’s July meeting. No action was taken Monday.

• Heard the July meeting will move to 4 p.m. July 11 because of the holiday on July 4.