07-446Council File # � 7
Green Sheet # �3q5a
RESOLUTION
411�l�T PAUL, MINNESOTA 3p
Presented by / ` �
Reso[ution Establishing a Stay in Implementation of Council File #06-838,
An Order to Remove or Repair 537 Maunt Curve Boulevard
� WHEREAS, the Saint Paul City Council adopted Council File #06-838 on September 20, 2006 an Order to
2 Remove or Repair the buildings at 537 Mount Curve Boulevard; and
4 WHEREAS, this action was taken based on the recommendation of the legislative hearing o�cer following an
5 August I S and September 6, 2006 legislative hearing and a September 6 and September 20, 2006 CiTy
6 Council public hearing on the matter; and
8 WHEREAS, in this process, inforcnation was reviewed and testimony indicating that conditions were
9 advisable before a grant of 180 days for the rehabilitation of the property should be granted by the City
lo Council, these conditions being:
n
� z 1) the $5,000 performance deposit must be posted;
I3 2) the vacant building fees must be paid;
ia 3) a code compliance inspection must be completed
t 5 4) a work plan demonstrating an understanding of the scope of the project, including those items
i6 covered in the code compliance inspection report;.
i� 5) a financial plan demonstrating the capacity to complete the project; and
i 8 6) the use of a competent project manager to ensure the project contract .
t9
zo WHEREAS, at the conclusion of 180 days the rehabilitation was far from being at the required halfway mark
2I to qualify for an extension by the building official, according to The report of Jim Seeger the City's Building
zz Inspector for vacant buildings, and, therefore the $5,000 performance deposit was forfeited and an additional
z3 legislative hearing was conducted to assess the situation and develop a recommendation on whether additional
za Council action was warranted; and
zs
z6 WHEREAS, additional testimony and materials were reviewed in a legislative hearing conducted on April 17,
27 2007 which indicated the above conditions were insufficient for ensuring the completion of the rehabilitation;
28 and
29
3o WHEREAS, based on this review, the legislative heazing officer recommends that the City Council grant an
3 t additional I 80 days for the rehabilitation of this property, given that the following conditions are met:
32
33 1) the $10,000 performance deposit must be posted;
34 2) a work plan demonstrating a) an understanding of the scope of the project, including those
35 items covered in the code compliance inspection report; and b) providing specific 1-month
36 benchmarks for completion of all aspects of the rehabilitation;
3� 3) a revised financial plan demonstrating the capacity to complete the project; and
38 4) the use of a competent project manager to ensure the project confract.
39
4o WHEREAS, the conditions have been met according to both the legislative heazing officer and the vacant building
4i program manager; and
42
43 WHEREAS, if the City Council takes no action to stay the implementation of Counci] File #06-838, the City will
aa cause the buildings at this property to be removed, thus eliminating the public nuisance they pose;
as
46
537 Mount Curve Boulevard: Stay Resolution, Page 2 of 2
� b 7" `/`�(�
z
3 NOW, THEREFORE, BE IT RESOLVED, that the City grants a stay in the implementation of Council File #06-838
a until October 19, 2007; and be it
6 RESOLVED, that the City Council conditions this graM of 180 days upon the successful completion of the work plan,
� which shall be reviewed on a monthly basis by the vacant building program manager, a representative of the building
a official and the legislative hearing officer, where a lack of progress shall cause the legislative hearing officer to
9 forward the matter to the CiTy Council for potential action; and be it
to
t� RESOLVED, that City Council action taken based on a lack of progress may include lifting of this stay and
12 implementation of Council File #06-838 which could result in the demolition of structures on this property; and
13
14 RESOLV ED, that the City sha11 continue to consider this property a nuisance as defined by the legislative code, and
li therefore subject to nuisance abatement procedures, until a certificate of code compliance is issued by the City's
i6 Building Official indicating that the building(s) are safe and habitable.
Yeas Nays Absent
Benanav /
Bostrom �/
Harris �/
Helgen �/
Lantry ,/
Montgomery �
Thune �
/� O�
Adopted by Council: Date ,/� �JG��
Adoption Certified by Council Sec etary
BY� ✓O' �L,G>ii�
Approved by ' r: Date �� b
�
Requested by Department of.
�
Form Approved by City Attorney
�
Approved by Mayor for Submission to Council
�
� Green Sheet,Green Sheet G.reen Sheet Green Sheet Green Sheet Green Sheet �
07 5'y.6
co ���
Cotrtad Person 8 Phone:
Marcaa Mcertnond
Must Be on Council pgenda by
Doc. Type: RESOLUTION
E-0ocumerrt Required: Y
Dowment Contact: Vda
Contact Phone:
Tofal fl of Signature Pages _
Q4MAY-07
y
Assign
Number
Por
Routing
Order
(Clip All Lowtions for Signature)
Green Sheet NO: 3039527
0 omN I
1 omc7 De entDirector
2 ' Clerk GS Clerk
3
4
5
Resolution establislilng a stay in implementation of C.F. #06-838, an Order to Remove or Repair 537 Mount Curve Boulevazd.
Planning Commission 1. Has this person/firm ever worked under a contrad for this departmenY?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirm ever been a city employee?
Yes No
3. Dces this person/firm possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
Advantages If Approved:
Disadvantaqes If Approved:
DisadvanWges If Not Approved:
Transaction:
Funtling Source:
Financial Information:
(Explain)
CostlRevenue Budgeted:
Activity Number:
May 9, 2007 4:53 PM Page 1
04l30/2607 16:26
6516990616
BARTSH LAW �FFICE
PAGE 01/01
O �-c/4�b
BARTSH LAW Ok�CE, PA.
790 C�ve[az.n A'vE So. Stm'a 214 Fitc��n Opr�ce C�;rp[�
Sr. PA,uL, M1v 551 z6-1958
6$1 699.060I FAX 651 699-0616
Reed Banet
Park Edge Corxstxuction
2193 Scheffer Ave.
St Paul, MN 55116
Re: S37 Mount Curve Blvd.
Dear Reed:
Apri130, 2007
T just spoke with Marcia Moermond. She had one last question on how
payments to the subs will be reported to the city. As you know, paz of your
cantract for 537 Mt Curve requires you to;
"Manager sha21 ezzgage sub-contractors to per#'orm work hereunder and
shall pay said subcontractars out o£ escrowed funds provided by Owner."
.4rxd to ".,, furnish monthly pro�ress reports to the City of St. �aul."
As pazt of your zxionthty reports to the City, would you please include
information on the payments that were made each month? The city wishes to
ensure contractors are being paid in a timely manner out of the escrow
account. I'm not sure what exact form this needs to take, but szgned llen
waivers wauld be one form of proof of payment. Copies o£ the cancelled checks
zxught be anotkzer. As long as they are shown you are paying the bills, they
should be OK.
Assuming t12e project gets the go ahead from City Councxl, I wnuid do t2�.e
firs� progress report one montkz from when John gets the approval and evezy 30
days thereafter until the project is complete. I think there will also be monthly
inspections by LEIP, If you have any questions, give me a call.
Very Truly urs,
.�_.. _.
F a�
SMB/g1
Ca John Goodman
Marcia Moermoxxd
P E � C ��-�y�
April 24, 2007
PARK EDGE CONSTRUCTION CO.
Marcia Moermond
I,egislative Hearing Officer
City of St. Paul
15 VJest Kellogg Blvd: 3`� Floor
St. Paul, Minnesota 55102-1615
Re. John & Shazon Goodman
537 Mount Curve Blvd.
Dear Mazcia,
Pursuant to the hearing last week, enclosed please find the following documentation:
1)
2)
3)
4)
5)
6)
7)
Construcfion Documents-Full sized and reduced
Construction Schedule
Construction Management Agreement between PECC and the Goodman's.
(Please note that the agreement requires monHily updates to the city.)
Proof of paid in full contract.
Resume for PECC and Reed Banet
Construction cost estimate with list of all major sub-contractors
Construction Escrow Account which covers total costs
We anticipate pulling the permit some time tomorrow contingent on CiTy Council
approval of the time extension. It is our sincere hope that you will consider this
documentarion a positive step in resolving this matter and forward it to the council with
your endorsement. Should you or your staff have any questions conceming this material,
please feel free to contact me at either 651-698-8052 or 612-670-0798.
Sincerely,
P e Fdge Construc 'on Co.
Reed A. Banet
President
cc. Shawn Bartsh
John Goodman
• Park Edge Construction Co. •
2193 Scheffer Avenue • St. Paul, Minnesota 55116-1161
• Fax/Modem: (651) 698-0264 r Phone: (651) 698-8052 •
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PECC
PARK EDGE CONSTRUCTION CO.
2193 SCHEFFER AVENUE
ST. PAUL, MINNESOTA 55116-1161
PH: (651) 698-8052 FAX: (651) 698-0264
DATE: 4/20/2007
PROJECT NO. 07.�3.01
PROJECT: GOODMAN RESfDENCE
537 MOUNT CURVE BLVD.
PREPARRED BY: REfD A. BANET
CONSTRUCTION SCHEDULE
WEEK OF CONTRACTOR DECRIPTION OF WORK
5(7/2007 GOPHER ONE-CALL MARK UTtLITIES
RAYCO START EXCAVATIONIDEMO
HOME CUST. REMOVE pEBRIS IN BASEMENT, CUT HOLE
5/14l2007 RAYCO COMPLETE EXCAVA710NIDEMO
GRAF POUR FOOTINGS, START BLOCKWORK
SHAW/STEWART DELIVER ROUGH LUMBER
B1FFS DELiVER PORT-A-POTTY
5121/2007 GRAF CONTINUE BLOCKWORK
5/28/2007 GR.4F FINISH BLOCKWORK
KREMER-DAVIS WATERPROOFING
AMER. STRUCTURAL DELIVER STEEL
HOME CUST. INSTALL COLUMN AND RE-ENFORCE BEAM
6/4l20�7
6/11 /2007
C:7fE:7fdd41
6/25/2007
7/2J2007
7t2120�7
7/16/2007
CONNECT
HOME CUST.
CONNECT
R,4YC0
BROLL
HOME CUST.
BROLL
CONNECT
HOME CUST.
GRAF
BROLL
CONNECT
HOME CUST.
VITO
SROLL
HOME CUST.
VITO
VICTORIA
V{�T�RIA
DONNELLY
VICTORIA
DONNELLY
GRAF
START FRAMING, DEMO BACK WALL
START ROUGH WIRING
CONT(NUE ROUGH FRAMING, SHORE BSMT
CONTINUE WIRING
INSTALL DRAIN TILE, SACKFILL & GRADE
START ROUGH PLUMBING
CONTiNUE FR,4MING, REMOVE SHORING
CONTINUE PLUMBING
CONTINUE ROUGH WIRWG
FINISH FRAMING, INSTAL� WINDOWS/DOORS
POUR BASEMENT FLOOR
FiNiSH ROUGH-IN
FINiSH ROUGH-1N
FINISH WINDOWS/DOORS, START ROOFING
START A/CNENTALATION
INSTALL HEATING
FINISH ROOFING
FINISH A/C-VENTlLATION
START ROCKING
F9NTINU� ROCKIN�
START STUCCO
START TAPING
CONTINUE STUCCO
POUR STOOP, PATIONS AND WALKS
D7-yy�
WEEK OF CONTRACTOR
7/23/2007 VICTORlA
7/30/2007
8/6/2007
8/13/2007
8/20/2007
8J27/2007
9/3/2Q07
9/10/2007
DONNELLY
SHAW STEWART
GUTTERS
VICTORIA
DONNELLY
HOME CUST.
VICTORIA
DONt�1EltY
HOME CUST.
CERAMiC TILE
HOME CUST.
CERAMIC TILE
KROLL
CONNECT
HOME CUST.
KROLL
CONNEC7
OWNER
HERB'S
CABINETS
HOME CUST.
OWNER
HERB'S
DECRIPTION OF WORK
CONTINUE TAPING
CONTINUE STUCCO
FINISH LUMBER/MILLWORK DELIVERED
lNSTA�L GUTTERS 8� DOWNSPOUTS
CONTINUE TAPING
FINISH STUCCO
FINISH CARP ON EXISTIIVG HOUSE
FINISH TAPING � SANDING
�{h1tSH STUCCO
CONTINUE FINISH CARPENTRY
INSTALL CERAMIC TILE
CONTINUE FINISH CARPENTRY
FINISH CERAMIC
START FIN15H PLUMBING
DEVISE OUT HOME
CONTINUE FINISH CARPENTRY
START FINISH PLUMBING
DEVISE OUT HOME
INSTALL LANDSCAPING
EXTERIOR PAINTING
DELIVER
CONTINUE CARPENTRY
F�NISH LANDSCAPING
PRIME WALLS AND TRIM
FLOORING INSTALL WOOD FLOORING
HERB'S PAINT INTERIOR, VARNISH WOOD
HOME CUST. INSTALL CABINETRY, FIREPLACES & HDWE
FLOORING FINISH AND VARNISH HARDWOOD FLOORS
HERB'S FINISH PAINTING
MPLS. GLASS INSTALL SHOWER GLASS
OWNER CLEAN-UP SITE
9/17l2007 HERB'S
CONNECT
VITO
KROLL
FLOORING
HOME CUST.
OWNEf2
9/24/2007 ALL SUB'S
PECC
10/1/2007 OWNER
FINISH TRIM AND TOUCH-UP
INSTAL� TRIM PlATES
INSTALL GRILLS & REGISTERS
FINISH INSTALL FIXTURES
INSTALL LINOLEUM & BASE
INSTALL COUNTERS
CLEAN-UP ISVTERIOR
FINAL INSPECTIONS
BUILDING FINAL & C.O.
START MOVE IN.
v �
CONSTRUCTION MANAGEMENT AGREEMENT
This Agreement made the 20"' day of April, 2007 by and between Pazk Edge
Construction Co., hereinafter called the Manager and John & Shazon Goodman,
hereinafter called the Owner.
Witnesseth, that the Manager and the Owner for the consideration named agree as
follows:
ARTICLE 1. SCOPE OF THE WORK
The Manager shall manager all suppliers and sub-contractors needed to perform
the work shown on the drawings and/or described in the specifications entitled Exhibit A,
as annexed hereto as it pertains to 537 Mount Curve Boulevazd, St., Paul, Mn SSS 16.
ARTICLE 2. TIME OF COMPLETION
The work to be performed under this Agreement shall be commenced on or before
May 7, 2007 and shall be substantially completed on or before September 30, 2007. Time
is of the essence. The following constitutes substantial completion of the work pursuant
to this agreement:
Completion of all work as needed to receive a Certificate of Occupancy is by the
St. of St. Paul.
ARTICLE 3. THE CONTRACT PRICE
The Owner shall pay the Manager for material and labor to be performed under
this Contract the sum of Ten Thousand Dollars ($ I 0,000.00), subject to additions and
deducuons pursuant to authorized change orders.
ARTICLE 4. PAYMENTS
Payment of this contract price sha11 be made before April 24, 2007.
ARTICLE 5. GENERAL PROVISIONS
1) The work shall be completed in a workman-like manner and in compliance
with all buiiding codes and other applicable laws.
2) The contractor shall furnish monthly progress reports to the City of St. Paul, as
per City Agreement.
3) To the extent requires by law all work shall be performed by indviduals duly
licensed and authorized by law to perform said work.
4) Manager shall engage sub-contractors to perform work hereunder and shall pay
said sub-contractors out of escrowed funds provided by Owner.
5) Manager shall fiunish Owner with appropriate releases of waivers of lien for
all work performed or materiais provided at the time of the nest periodic payment is due.
• Park Edge Cahstruction Co. •
2193 Scheffer Avenue • St. Paul, Minnesota 55116-1161
• Fa�Modem: (651) 698-0264 • Phone: (651) 698-8052 •
0 7- yyG
6) all changer orders shall be in writing and signed by the Owner and Manager,
and shall be incorporated in, and become a part of the contract.
7) Contract warrants that all sub-contractors, and their employees, are adequately
insured and proof of said insurance is on file with the Manager
8) In the event that the Owner cannot secure approval from the City of St. Paul for
the project, this agreement will become null and void and all disbtused funds shall be
retumed to the Owner.
ARTICLE 6. OTHER TERMS
1) Contractor shall coordinate all sub-contractors in such a manner as to minimize
internction with the neighborhood.
Signed this ' C'�� day of AP2i�, , 2007
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• Park Edge Ca'�strucfion Co. •
2193 Scheffer Avenue • St. Paul, Minnesota 55116-1161 •
• Fax/Modem: (651) 698-0264 • Phone: (651) 698-8052 -
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John & Sherry Goodman
2197 Scheffer Avenue
St. Paul, MN 55116
TERMS 4 Da s
QUAIJTl7Y
Construction
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JOHN CHARLESGOODMAN
SHARON M GOODMAN
2197 SCAEFFER AVE
PRICE
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SAINT PAUL MN 55116-1161 � a�Q7
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fOMER OqDER NO.
07.03.01
SPERSON
DESCRIPTION
ement fee for 537 Mount Curve Blvd.
Thank You
AMOUNT
$10,00 .00
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PECC
PARK EDGE CONSTRUCTION CO.
CORPORATE & PERSONAL RESLJME
CORPORATE:
Name: Park Edge Consmiction Co.
Founded: 1961
Incorporated: 1987
Officers: Reed Banet-President
Function:
Job History:
June Banet-Secy
General Contractor, Construction Managers and designers
Commercial, Industrial, Govemment and Residential
Our primary purpose is construction management, even as a General
contractor
Since 1997, we have completed 597 jobs in and around the twin cities
area.
Major Projects:
1997: University Centre @ 1919
Hmong American Partnership
1998: TGUAgape-1919 University Ave.
Ramsey counTy Mental Health
1999: Minnesota Gang Strike Force
Ma11 azea remodel-Spruce Tree Centre
2000: Entry & Cooridor Remodel-EBT Office
2001: Applebaum Residence
Community Leanung Centre
1745 university avenue
Wilkerson-Guthman-Johnson
2002: Feed Management Systems
Ramsey County Mental Health
2003: Spruce Tree Ramp Remodel
2004: Fi�tegra
Community drug/Midway Chamber
National Resource Conservation
Midwest Pubiishing
2005: E.M.O.I.C.
2006: Ramsey County Corrections
$2,300,000.00
$ 286,000.00
$1,150,000.00
$ 397,000.00
$ 105,000.00
$ 175,000.00
$ 325,000.00
$ 205,000.00
$ 362,000.00
$ 245,000.00
$ 143,000.00
$ 181,000.00
$ 65,000.00
$ 119,800.00
$ 224,300.00
$ 64,400.00
$ 76,500.00
$ 76,600.00
$ 216,000.00
$ 138,200.00
Construction Volume is presently at or above $1,100,000.00/year with a minimum of
60 projects completed per year.
• Park Edge Construction Co. •
2193 Scheffer Avenue • St. Paul, Minnesota 55116-1161 •
• Fax/Modem: (651) 698-0264 • Phone: (651) 698-8052 •
U 7-yy�
REED BANET:
Bom: September 7, 1952
Wife: June Banet
Children: Brett-U of M Graduate
Michelle-L'Academie de Cuisine Cnaduate
Education: Cmaduated Osseo High School 1970
University of Minnesota-
3 years towazd triple major-Physics, Math & Mech. Engineering
Numerous courses in construcrion management and engineering
Worked under Bertrani Getsug P.E. from 1975 to 1984
Experience: 1975-1987 Construction Manager/Tenant Coordinator for Paster
Enteiprises. Handled retail, office and residential jobs. Reponsible for all
Phase including design, bidding, financing and consh�uction management.
Handled approxirnate 100 projects per yeaz.
1987-Present . President of Patk Fdge ConstrucUOn Co. Responsible for
Design/build projects. Although PECC is a General contractor, all work is
Done by sub-contractors. We also design and create construction
Documents for most projects. We average anywhere from 60-100 projects
Per yeaz.
• Park Edge Construction Co. •
• 2193 Scheffer Avenue • St. Paul, Minnesota 55116-1161 •
• Fax/Modem: (651) 698-0264 • Phone: (651) 698-8052 •
bank. �
F�c� 5r�r 5�+�is Guaranrcd C
711 Cleveiand Avenue South
Saint Paul, MN » 116
Apri] 24, 2007
Dear John,
� >- yy�
Per your request, I have set up an escrow account�for Sharon and you
for the 537 Mount Curve property. Your total funds available are $300,000.00.
�"� � c �
arol A. Jorgensen
Personal Banker
651-695-6205
,, . . a�,.�
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❑�I
RECEIPT
Payment #: 519348
Payment Date: April 24, 2007
JOHN C GOODMAN
2'197 SCHEFFER AVE
ST PAUL MN 55116-1161
CITY OF SAINT PAUL
O�ce of License, Inspections and
Environmentai Protection
8 Fourth Street East, Suite 200
Saint Paul, Minnesota 5 51 01-1 0 24
Phone:(651)266-9090
Fax:(651)266-9124
www.liep.us
Amount Paid: $70,000.00
Payment Type: CREDIT
Transactio Description
Pro}ec�;Locati n ��S37�N
�� k
�rv` ��a�.+
05 - 073691
Vacant Building Prelim
SUB TYPE: CATEGOI
TYPE: VACANT BUILDING
❑1/31/05: Snow/ice on sidewalk
3
TYPE: SINGLE FAMILY
FEES
Performance Deposit 10,000.00
TOTAL 10,000.00
07-yy6
SUMMARY FOR PUBLIC HEARIl�TG
537 Mount Curve Blvd
Legislative Hearing - Tuesday, Apri117, 2007
The building is a two-story, masonry and wood frame, single family dwelling, with a detached,
two-stall, masonry and wood frame garage on a lot of 16,117 square feet.
According to our f les, it has been a vacant building since April 25, 2002.
The current property owner is John C Goodman / Sharon M Goodman, per AMANDA and
Ramsey county property and t�ation records.
There have been two (2) Si JMMARY ABATEMENf NOTICES issued for:
- Removal of rubbish & garbage in yard
On June 7, 2006 an inspection of the building was conducted, a list of deficiencies which
constitute a nuisance condition was developed and photographs were taken. An ORDER TO
ABATE A NiJISANCE BLJILDING was posted on June 16, 2006 with a compliance date of July
17, 2006. As of this date this property remains in a condition which comprises a nuisance as
defined by the legislative code.
The Vacant Building registration fees are current.
Taxation has placed an estimated market value of $279,100 on the land and $224,200 on the
building.
As of Aub st 22, 2006, a Code Compliance inspection has been completed.
As of April 10, 2007, the $5,000.00 performance bond has been forfeited.
Real Estate taYes are current.
Code Enforcement Officers estimate the cost to repair this shucture is $100,000 to $150,000.
The estimated cost to Demolish is $10,000 — 12,000.
NHPI, Division of Code Enforcement Resolution submitted for consideration orders the property
owner to repair or remove this siructure within fifteen (15) days, if not the resolution authorizes
the Division of Code Enforcement to demolish and assess the costs to the property.
OFFICE OF LICENSE, MSPECTIONS AND
ENVIRONMENTAL PROTECTION
.. Bob Kessler, Dirutor R� �� i /� //
C/ `7`7(0
CTI'Y OF SAINT PAUL
Christopher B. Coleman, Mayor
April 12, 2007
Re-inspection Report
COMMERCEBUILDING Telepkoner 651-266-9090
SFourthStreetEas{Suite200 F¢csimile: 651-266-9099
StPaul,Minneso1a551 01-1 0 2 4 Web. www.(iep.us
Re: 537 Mount Curve Blvd, Owner John C. Goodman
File#: OS 073691 VB3
On March 30, 2007 I inspected 537 Mount Curve Boulevard to see how much prog�ess had been
done.
The bond of $5000.00 was posted on August 31, 2006; the 6 month expiration date was March
3, 2007. At the time of inspection very little of the scope of work on the Code Compliance
report was done.
The kitchen was gutted at time of inspection. There was no Plumbing or Mechanical Permits for
the property. The Electrical Permit was for new service hookup only and no interior elech
work. The only Building Permit posted was for squurel damage repair and to remove old
plaster.
At most 10% of the work is done.
Sincerely,
James L. Seeger
Code Compliance Officer
JLS:sIh
AA-ADA-EEO Employer
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LEGISALATIVE HEARING MINLJTES FOR APRIL 17, 2007 Page 8
Progress report on 537 M� Curve Blvd.
The foliowing appeazed: Shawn Bartsh, 790 Cleveland Avenue #214, attomey representing the
property owner; John Goodman, 2197 Scheffer Avenue, the property owner; and Reed Banet, Pazk
Edge Construcrion, 2193 Scheffer Avenue, General Contractor.
Marcia Moermond stated that there had been a hearing on this matter in August, 2006 to consider the
rehabilitation of this property. On September 20, 2006, the City Council recommended granting 180
days to rehabilitate property. The properiy was re-inspected after the 180 days had passed and had not
achieved the 50% mark for rehabilitation. She would make a recommendation conceming this
property to the City Council for their consideration.
Steve Magner, DSI, reported that this property had been vacant since Apri125, 2002. At the last
hearing, it was indicated that it had been vacant prior to 2002. The current owners were John
Goodman and Sharon Goodman. Previously, they were issued a building deficiency list and ordered to
abate the nuisance condition which was posted on June16, 2006 with a compliance date of July17,
2006. As of this date, the property remained in a condition which comprised a nuisance as defined by
the Legislative Code. The vacant building fees were current. The estimated tax value was $279,100
on the land and $224,200 on the building. The code compliance inspection was completed. As of
Apri110, 2007, the $5,000 performance bond had been forfeited based on Mr. Seeger's determinarion
that 50% of the project had not been completed by the time he had re-inspected the property. The
tases were current. The rehabilitation was estimated to be in excess of $100,000 to $150,000 based on
the scope of the work that needed to be done. The estimated cost to demolish the building was
$10,000 to $12,000.
Ms. Moermond stated that she asked Jim Seeger, DSI-Licensing, for a progress report on the
rehabilitation of the property. According to Mr. Seeger, approximately 10% of the work had been
completed after the 180 timeline had elapsed. Ms. Moermond stated that a large, vacant house with no
plumbing, heating, mechanical system, problems with the roof, was considered a public nuisance. At
the previous hearing, Mr. Goodman indicated he wished to put an addition on the house; however, she
had indicated that it was her desire, as well as the neighborhood's desire, to first abate this public
nuisance. She asked where they are at and whether they were requesting more time at this point.
Ms. Bartsh stated they never saw a copy of Mr. Seeger's letter and requested a copy.
Mr. Goodman stated that the letter was recent and he had not worked on the house for a few weeks
because he went on vacation. Ms. Moermond responded that the building permit was pulled on day
179. Ms. Bartsch stated that according to the contractor, more than 50% had been done.
Ms. Moermond asked where John's brother, Daniel, was as far as being the project manager as there
were signed documents that he was to be the project manager. Ms. Bartsh responded that Daniel was
no longer the project manager and John had hired a professional contractor.
Reed Banet, Park Edge Conshuction, stated his company had been in the construction business since
1961 and he had owned the company since 1983. Their primary responsibility was in construcrion
management. He had done a number of projects such as this and was occasionally hired to deal with
difficult situations where property owners had not done their job. He was considered quite
lrnowledgeable and he always got the job done on time.
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LEGISALATIVE HEARING MINLJTES FOR APRiL 17, 2007 Page 9
Ms. Moermond asked about Mr. Banet's relarionship with Home Customizers, Inc. Mr. Banet
responded that he does not have a relationship with them. They would be a subcontractor hired by
John and he would manage them and make sure things were done correctly. A number of line items
had been completed such as the electrical services were now in place. The items that had not been
completed were items that he believed were not essential to complete at this tune and it was his
opinion that those items would be completed with the planned addition to the house. According to Mr.
Seeger, he considered the electdcal, plumbing and mechanical the major issues in the house that had
to be completed.
Ms. Moermond stated that she has no posirion on the proposed addition and her only concern was
abating the nuisance condition. She asked why she should believe the next six months would be any
different than the last six months. Mr. Banet responded that the owners had signed a contract with him
and agreed to pay him to do the job, they had applied for a pernut and the work was ready with the
exception of two items: energy and beam calculations. Both items had been completed and were
ready to be approved by Licensing. He did not feel it was wise or reasonable to expect Licensing to
issue a permit when the City Council decision was hanging over the whole project. He presented a
copy of the plan that indicated the elevation of the building along with a timeline for the scheduled
work that needed to be completed. Mr. Banet stated that he believed the work could be completed by
August 31, 2007, which was the one year of the original order by the City Council. They had received
approximately 75% of the bids for this project and were ready to hire the subcontractors once they
received City Council approval. Mr. Csoodman had demonstrated that he had the assets to complete the
project and subcontractors would be paid in a timely fashion. Mr. Goodman had also met with a few
of the neighbors regarding their concerns and he would be willing Yo provide his name and cell phone
number to the neighbors so they could call him with any questions or concerns. The plan was to
improve this house, make it an asset to the neighborhood, have the work completed by August 31 and
would attempt to show as much compassion to the neighbors while this project was going on.
Ms. Moermond indicated to Mr. Banet that she would need a resume, a list ofprojects that he had
completed as well as a list of professional credentials. Mr. Banet responded he would have those items
to her the following day.
Russell Nelson, 546 Mt. Curve Boulevard, stated that he lived across from 537 Mt. Curve. Thirteen
years of continuous vacancy is a concern for safety, aesthetics, and health for this neighborhood. He
was afraid for the neighborhood children because of the situation with this house. He was not
interested in the reason the house had been vacant for 13 years. The owners had been given ample
opportunity to fix it up.
Bruce Hoppy, 531 Mt. Curve Boulevard, stated that his family lived north of this house. They had
moved into the neighborhood in June, 2006 and he would like to remain cordial with the Goodmans
concerning this situation. He was concerned that the sign from the previous builder was still posted on
the front of the building and he questioned if there was a contract in place. He hoped that the problems
with this property did not happen again and that the owners had a firm contractor for this project. He
appreciated what the City had done and hoped the Goodmans would follow through with rehabbing
this home.
Mr. Banet stated that he was aware of some of the history of this property. He indicated that the
property had been cleared of debris and brush, fencing had been put up to keep people off the site, and
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LEGISALATIVE HEARING NIINUTES FOR APRIL 17, 2007 Page 10
the building was locked. It was their intent is to move forward as soon as they received City Council
approval. After that, the excavation work could begin within the following two weeks.
Ms. Bartsh stated that since last August, there had been a lot of work done on the inside of the house.
Ms. Moermond stated that last fall, Daniel, John's brother, was going to be project manager. Ms.
Bartsh responded that she believed Daniel would do the job, however, unbeknownst to her or to Mr.
Goodman, Daniel was gone for a period of time over the winter.
Ms. Moermond asked about Home Customizers. Ms. Bartsh responded they were never the general
contractor and were only hired to do the code compliance and fix the soffits. Ms. Moermond
responded that the work plan stated they were the general contractor. Mr. Banet responded that Home
Customizers was a general contractor and they would like to be the general contractor for the project,
however, their prices were not reasonable. Mr. Goodman pulled the pernut himself and was willing to
hire the subcontractors with Mr. Banet managing them.
Mr. Magner stated that he would like to see Mr. BaneYs name on the documentarion. There were now
two problems: one was financial and the other was there was no long-term control of the project as
there did not seem to be one person in control of this project. On August 15, 2006, Mr. Goodman's
brother indicated that all these issues would be resolved because he was going to take care of things.
Mr. Magner requested the following: a complete breakdown of the costs, have costs rolled into the
contract, haue contracts signed for the general scope of the project, have major contracts signed with
the subcontractors, define where the funds were going to come from and have a signed contract with
Mr. Banet as the manager. These documents were necessary in order for the Legislative Hearing
Officer to make a recommendation to the City Council. Given the circumstances, he would be
unwilling to make a recommendation for additional time.
Ms. Bartsh stated that hiring Mr. Banet was a step in the right direction. She suggested that perhaps
they could meet with Ms. Moermond on a bi-monthly basis on progress reports. She also stated that at
the last hearing, Mr. Goodman submitted financials documentation indicating his financial
wherewithal to complete the project.
Ms. Moermond stated she would like new financial documentation as there needed to be an assurance
that money continued to be available for the completion of this project and suggested the funds be
escrowed. It was her opinion that a third party needed to be in charge of signing the checks.
Mr. Goodman stated that Home Customizers was retained to go through the compliance list to make
sure it the project was feasible and could be done and was not hired to put on the addition. Ms.
Moermond responded she had Home Customezers listed as the general contractor on the work plan
that had been submitted and she did not care about the addirion. It appeared that they did not wake up
to this fact until the 180 days had expired. Ms. Bartsh responded that Home Customizers and Mr.
Banet had a different percentage of what work had been done and they believed that 50% of the list
was completed. Ms. Moermond responded that the work was done in the last few weeks which was
beyond the six month deadline granted.
Mr. Banet asked if there was particular way Ms. Moermond wanted the money dispersed. As for the
construction schedule, he would provide a detailed list of what contractors would be there when and
would provide this information to Ms. Moermond the following day.
d 7
LEGISALATIVE HEARING MINUTES FOR APRIL 17, 2007 Page 11
Ms. Moermond stated they would need to provide the following: 1) a modified work plan to include a
construction schedule with contractor names and addresses; 2) a cost breakdown for each category; 3)
a financial plan showing that the money was available and separated so that someone else was
responsible for signing the checks for this project. She also stated that she would require monthly
progress reports on the project and that a$10,000 bond needed to be posted. Mr. Magner added that
this was refundable when they completed the project.
Ms. Moermond stated that another possibility was that this properiy be sold to someone that was
capable of completing the rehab. The other possibility was that it be ordered to be demolished. She
believed it was in everyone's best interest to resolve this issue. She stated that she had a low level of
confidence in the owner completing the project. She would prepare a resolution for the City Council's
consideration concerning her recommendarion on the rehabilitation of this property which would be
before the Council at another Public Hearing. She indicated that all of the conditions needed to be met
befare she would make a decision to move forward on this project.
Ms. Bartsh asked if there was a reason to delay getting a permit to start the excavation. Ms.
Moermond responded they would need to pull the permit, however, the $10,000 bond would need to be
posted before a permit would be issued. Mr. Magner stated that Licensing would need to be notified
that the bond was increased to $10,000.
A letter was faaced and mailed to Ms. Bartsh on April 24 requesting the following documentation:
1. A modified work plan indicating the following:
a) a construction schedule with the dates that items will be completed;
b) names and addresses of all the contractors; and
c) a cost breakdown for each item.
2) A financial plan indicating the following:
a) the financial wherewithal to complete the rehabilitation of the property;
b) a separation of financing to complete this project indicating someone other than the owner
would be responsible for ensuring all contractars were paid in a timely manner; and
3) A$10,000 performance deposit posted with DSI-Licensing.