04-0518R

RESOLUTION AUTHORIZING PAYMENT TO MENARD, INC., FOR THE CITY'S SHARE OF COSTS ASSOCIATED WITH THE RECONSTRUCTION OF A SEGMENT OF ELINOR STREET AND OTHER PUBLIC IMPROVEMENTS RELATED TO THE REDEVELOPMENT OF THE MENARD'S STORE IN WEST DULUTH IN THE AMOUNT OF $17,500.

BY COUNCILOR STOVER:

WHEREAS, Menard, Inc., previously undertook and completed a project to redevelop the existing Menard's retail store in West Duluth; and

WHEREAS, a portion of the redevelopment involved various improvements or modifications to existing public infrastructure - including the reconstruction of and improvements to a segment of Elinor Street, the construction of a drainage ditch benefitting city-owned property and the relocation of an existing gas main; and

WHEREAS, city staff and Menards agreed that the most efficient method of accomplishing the necessary public street and drainage improvements would be for Menards to include this work as part of their project and for the city to agree to reimburse Menard's for the public share of the cost of this work; and

WHEREAS, city staff and Menard's also agreed that the most efficient method of accomplishing the necessary public gas system improvements would be for the city to complete this work and for Menard's to agree to reimburse the city for the cost of this work;

NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to pay Menard, Inc., the sum of $17,500 for the balance of the city's share of public infrastructure improvement costs, to be paid from the Stormwater Fund 0535, Department/Agency 500, Organization 1905, Object 5535.


STATEMENT OF PURPOSE:   This resolution authorizes the payment of the city's share of costs associated with the recent redevelopment of the Menard's retail store in West Duluth. During project design and development, it was determined that there a small number of project-related modifications would needed to be made to the public infrastructure on and/or adjacent to the Menard's property - including the reconstruction of a segment of Elinor Street, the construction of a drainage ditch to serve both Menard's and city-owned property and the relocation of an existing natural gas main. In order to best facilitate completion of this work, involved parties agreed that each would be responsible for identified portions of the necessary work, and would subsequently share in these costs as appropriate.

Following is a breakdown of these costs as agreed to between the parties:

City costs (due to Menard, Inc.):
50% of Elinor Street reconstruction (@ $35,000) = $17,500
Share of drainage ditch construction = $10,000
Total = $27,500
Menard's costs (due to city of Duluth):
  Share of natural gas main relocation = $10,000
Balance (due to Menard, Inc.) = $17,500

As the city's costs were directly associated with stormwater/drainage issues - both relative to Elinor Street and the city-owned property adjacent to Menard's property, the total associated amount of $27,500 would be debited against Fund 0535, Department/Agency 500, Organization 1905, Object 5535. As Menard's costs were directly associated with the relocation of the natural gas main, the associated amount of $10,000 would be credited against Fund 0520, Department/Agency 500, Organization 1905, Object 5535.