Redevelopment Takes Last Step on PVD Bond
July 28, 2016 at 4:25 p.m.
By David [email protected]
On the bond issue, City Planner Jeremy Skinner said, “It’s a resolution to dispose of the personal property to Winona PVD, along with a resolution with a bill of sale to be signed. Like I said, it’s the final step in the Winona PVD process. We went through the advertisement, we received no bids. We wait 30 days and we dispose of the property. That’s the steps right there.”
The Commission approved the resolution and bill sale.
The resolution states, in part, that the Commission previously declared the Northern Economic Development Area to be an economic development area, approved an economic development plan for the area and designated it as a tax increment finance allocation area.
Winona PVD Coatings LLC operates a wheel-coating facility at 1180 Polk Drive consisting of a 130,000-square-foot building, with a new 101,000-square-foot building across the street at 1095 Polk Drive. Winona PVD undertook the expansion into the new building to increase its manufacturing capacity by an estimated 720,000 wheels per year by introducing a second coating line. In order to accommodate the expansion, Winona PVD wants to construct an approximately 80,000-square-foot expansion to the new building to accommodate new manufacturing equipment.
The Commission and city council previously approved and entered into an economic development memorandum of understanding dated Nov. 2 with the company and Winona PVD Equipment Corp., in which Winona PVD agreed to pursue expansion of the site to accommodate additional equipment and the Commission agreed to take certain actions to provide certain economic incentives to Winona PVD, including acquisition of equipment.
The Commission purchased the equipment and after purchasing it wanted to dispose of it to make the equipment available for use by Winona PVD.
The Commission previously determined the fair market value of the equipment, and on Oct. 5 determined how to acquire and dispose of the equipment to be made available to Winona PVD.
After advertising the equipment, and not receiving any qualified bids for it, the Commission authorized Monday the disposition of the equipment to Winona PVD for $1.
The bill of sale states, in part, the City of Warsaw Redevelopment Commission “hereby sells, assigns, transfers and conveys to Winona PVD Coatings LLC ... all of its right, title and interest in and to all personal property as described.” The property includes equipment such as a pre-treat and powder coat wheel finishing system, enclosed track overhead conveyor, stainless steel pretreat system, gas fired convection ovens and Fanuc material handling robots.
Speaking on the change order for the Mariners Drive project, Skinner told the Commission, “As we went through it, rather than bringing multiple change orders, we thought it would be best to just do one change order.”
The one change order was for $70,238.53, and the Commission approved it.
“The reason for the change order is, initially, as we went through the project, our intent was to do asphalt all the way over the existing concrete. Once the old asphalt was milled off the concrete, what we originally had anticipated was about 20 percent replacement of the concrete. That ballooned to about 50-60 percent replacement,” Skinner said.
After much consideration and cost comparison to repour the concrete sections that were bad versus just tearing them out and laying asphalt down, Skinner said it was cheaper to tear out the bad concrete and put down new asphalt.
“We still did manage to save maybe 30 percent of it, maybe less, of the concrete that was out there,” he said. “... We went with a cement subsoil stabilization, and then built a new asphalt road over that subsurface treatment. So that was the bulk of the change order.”
The contract total came in at $620,000. The initial engineer’s estimate was $650,000, Skinner said, “so we’re still under what the original cost estimate was.”
The bid price was $550,000. When the bids were opened, Skinner said they were surprised they were so much lower than the engineer’s estimate, but they got some “pretty good” asphalt prices.
He also said, “I feel like, overall, the project’s gone pretty well. We had some things that we kind of thought we might run into, not knowing what was (underneath), we knew it was pretty easy to tell that 20 percent of it was bad. What we didn’t know was when we peeled off the asphalt, what was going to be under the rest.”
Skinner estimated they rebuilt about 60 percent of the road, when what was originally intended was to just asphalt it. With the improvements that were made, Skinner said he, Street Superintendent Jeff Beeler and City Engineer James Emans felt that was the best-case scenario.
The Commission also:
• Approved the following claims: Troyer Group, $32.50, for work on Mariner Drive; City of Warsaw, $600,000, for its pledge to the old sewage district bond, which comes out of the Northern TIF district; Phend & Brown, $240,899.67, for the Mariner Drive project; Kosciusko REMC, $35.34, for street lights at Tech Park; Regions Bank, $97,297.50, for the city hall bond; Faegre Baker Daniels, $38,388.38, and H.J. Umbaugh, $40,581.60, associated with the Winona PVD bond, will be paid out of the bond proceeds; and Phend & Brown, $187.759.58, for the Mariner Drive project.
• Heard from Skinner that the Buffalo Street project survey work is taking longer than anticipated so that’s still being done.
“I expect maybe we’ll have something in the next two to three weeks,” he said.
• Heard from Skinner that the copy of the closing statement letter on the Winona PVD Bond Series 2015 was just for the Commission’s information.
• Heard from Commission Vice President Rick Snodgrass that it’s been a great year and that the Commission got a lot of work done and he was proud of the work they did get done.
• Heard from Skinner that the Commission will have some money come January to tear parts of the old Gatke manufacturing plant down.
• The next meeting is at noon Jan. 4 in the city council chambers at city hall.[[In-content Ad]]
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On the bond issue, City Planner Jeremy Skinner said, “It’s a resolution to dispose of the personal property to Winona PVD, along with a resolution with a bill of sale to be signed. Like I said, it’s the final step in the Winona PVD process. We went through the advertisement, we received no bids. We wait 30 days and we dispose of the property. That’s the steps right there.”
The Commission approved the resolution and bill sale.
The resolution states, in part, that the Commission previously declared the Northern Economic Development Area to be an economic development area, approved an economic development plan for the area and designated it as a tax increment finance allocation area.
Winona PVD Coatings LLC operates a wheel-coating facility at 1180 Polk Drive consisting of a 130,000-square-foot building, with a new 101,000-square-foot building across the street at 1095 Polk Drive. Winona PVD undertook the expansion into the new building to increase its manufacturing capacity by an estimated 720,000 wheels per year by introducing a second coating line. In order to accommodate the expansion, Winona PVD wants to construct an approximately 80,000-square-foot expansion to the new building to accommodate new manufacturing equipment.
The Commission and city council previously approved and entered into an economic development memorandum of understanding dated Nov. 2 with the company and Winona PVD Equipment Corp., in which Winona PVD agreed to pursue expansion of the site to accommodate additional equipment and the Commission agreed to take certain actions to provide certain economic incentives to Winona PVD, including acquisition of equipment.
The Commission purchased the equipment and after purchasing it wanted to dispose of it to make the equipment available for use by Winona PVD.
The Commission previously determined the fair market value of the equipment, and on Oct. 5 determined how to acquire and dispose of the equipment to be made available to Winona PVD.
After advertising the equipment, and not receiving any qualified bids for it, the Commission authorized Monday the disposition of the equipment to Winona PVD for $1.
The bill of sale states, in part, the City of Warsaw Redevelopment Commission “hereby sells, assigns, transfers and conveys to Winona PVD Coatings LLC ... all of its right, title and interest in and to all personal property as described.” The property includes equipment such as a pre-treat and powder coat wheel finishing system, enclosed track overhead conveyor, stainless steel pretreat system, gas fired convection ovens and Fanuc material handling robots.
Speaking on the change order for the Mariners Drive project, Skinner told the Commission, “As we went through it, rather than bringing multiple change orders, we thought it would be best to just do one change order.”
The one change order was for $70,238.53, and the Commission approved it.
“The reason for the change order is, initially, as we went through the project, our intent was to do asphalt all the way over the existing concrete. Once the old asphalt was milled off the concrete, what we originally had anticipated was about 20 percent replacement of the concrete. That ballooned to about 50-60 percent replacement,” Skinner said.
After much consideration and cost comparison to repour the concrete sections that were bad versus just tearing them out and laying asphalt down, Skinner said it was cheaper to tear out the bad concrete and put down new asphalt.
“We still did manage to save maybe 30 percent of it, maybe less, of the concrete that was out there,” he said. “... We went with a cement subsoil stabilization, and then built a new asphalt road over that subsurface treatment. So that was the bulk of the change order.”
The contract total came in at $620,000. The initial engineer’s estimate was $650,000, Skinner said, “so we’re still under what the original cost estimate was.”
The bid price was $550,000. When the bids were opened, Skinner said they were surprised they were so much lower than the engineer’s estimate, but they got some “pretty good” asphalt prices.
He also said, “I feel like, overall, the project’s gone pretty well. We had some things that we kind of thought we might run into, not knowing what was (underneath), we knew it was pretty easy to tell that 20 percent of it was bad. What we didn’t know was when we peeled off the asphalt, what was going to be under the rest.”
Skinner estimated they rebuilt about 60 percent of the road, when what was originally intended was to just asphalt it. With the improvements that were made, Skinner said he, Street Superintendent Jeff Beeler and City Engineer James Emans felt that was the best-case scenario.
The Commission also:
• Approved the following claims: Troyer Group, $32.50, for work on Mariner Drive; City of Warsaw, $600,000, for its pledge to the old sewage district bond, which comes out of the Northern TIF district; Phend & Brown, $240,899.67, for the Mariner Drive project; Kosciusko REMC, $35.34, for street lights at Tech Park; Regions Bank, $97,297.50, for the city hall bond; Faegre Baker Daniels, $38,388.38, and H.J. Umbaugh, $40,581.60, associated with the Winona PVD bond, will be paid out of the bond proceeds; and Phend & Brown, $187.759.58, for the Mariner Drive project.
• Heard from Skinner that the Buffalo Street project survey work is taking longer than anticipated so that’s still being done.
“I expect maybe we’ll have something in the next two to three weeks,” he said.
• Heard from Skinner that the copy of the closing statement letter on the Winona PVD Bond Series 2015 was just for the Commission’s information.
• Heard from Commission Vice President Rick Snodgrass that it’s been a great year and that the Commission got a lot of work done and he was proud of the work they did get done.
• Heard from Skinner that the Commission will have some money come January to tear parts of the old Gatke manufacturing plant down.
• The next meeting is at noon Jan. 4 in the city council chambers at city hall.[[In-content Ad]]
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