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95-160ORIGINAL Presented By Referred To CiTY nF Council File # �.S-� �G� Green Sheet # RESOLUTION �Il�'�AUL, MINNESOTA Committee: Date y� VJI�EREAS, Saint Paul Public Aealth has requested the City Council to hold public hearings to consider the advisabiliry and necessity of ordering the repair or wrecking and removal of a concrete commercial building located on properiy hereinafter refened to as the "Subject Proper[y" and commonly known as 835 Arcade Street. This properry is legally described as foilows, to wit: That part of L.ot 2, Block 3, Andrew Addition, overlying the following parcels: Lots 11 to 18, inclusive, Block 39, Schurmeier's Subdivision of Blocks 38 and 39 of Arlington Hills Addition, that part of adjoining Whitall Street, formerly Dorr Street, vacated, lying Easterly of the extension across said street of the Southwesterly line of said I.ot 14 and West of the extension across said street of the centerline of adjoining Weide Avenue, and that part of the West half of adjottung Weide Street, formerly Weide Avenue, vacated, lying between the extensions across said street of the South line of said Lot 18 and North line of I,ot 13; L,ot 16, and that part of adjoining Whitall Street, formerly an unnamed street, vacated, lying between the extensions across said street of the East and West lines of said L,ot 16; That part of Lot 17 lying Northerly of a line extending from a point on the South line of I,ot 15 distant 8.3 feet East from the Southwest corner of said Lot 15 to the Northwest corner of I,ot 25; Lot 19 and that part of adjoining Whitall Street, formerly an um�amed street, vacated, lying between the extensions across said street of the East and West Lines of said Lot 19; all in Charles Weide's Subdivision of Block 40 of Arlington Hills Addition to St. Paul. WHEREAS, based upon the records in the Ramsey County Recorder's Office and lnformation obtained by Saint Paul Public Health on or before 7anuary 4, 1995, the following are the now known interested or responsible parties for the Subject Property: Lawrence Pregon, Quadrelle Rea1ry, One West Avenue, Larchmont, NY 10538-2412; Andrew Realry Corp., Two East Avenue, Larchmont, NY 10538; Sheehy Construction Co., 360 Larpenteur Avenue W., St. Paul, MN 55113; Jeff Erickson, 2039 Idaho Avenue East, St.Paul, MN 55119. WHEREAS, Saint Paul Public Health has served in accordance with the grovisions of Chapter 45 of the Saint Paul Legislauve Code an order identified as an "Order to Abate Nuisance Building(s)" dated October 29, 1991; and WHEREAS, this order informed the then I�own interested or responsible parties that the structure located on the Subject Property is a nuisance building(s) pursuant to Chapter 45; and WHEREAS, this order informed the interested or responsible parties that they must repair or demolish the structure located on the Subject Property by November 29, 1941; and WHEREAS, the enforcement officer t�as posted a placard on the Subject Property declaring this building(s) to constitute a nuisance condition; subject to demolition; and WHEREAS, this nuisance condition has not been conected and Saint Paul Public Health requested that the City Clerk schedule public hearings before the Legislative Hearing Off"icer of the City Council and the Saint Paul Ciry Council; and q5-IC.o •�� • The Saint Paul Ciry Council hereby makes the following order: 1. The above referenced interested or responsible parties shall make the Subject Property safe and not detrimental to the public peace, health, safety and welfare and remove its blighting influence on the community by rehabilitating this structure and conecting all deficiencies as prescribed in the above referenced Order to Abate Nuisance Building(s) in accordance with all applicable codes and ordinances, or in the alternative by demolishing and removing the structure in accordance with all applicable codes and ordinances. The rehabilitation or demolition and removal of the structure must be completed within five (5) days after the date of the Council Hearing. 2. If the above corrective action is not completed within this period of time the City of Saint Paul, Public Health, Housing Code Bnforcement Section is hereby authorized to take whatever steps are necessary to demolish and remove this structure, fill the site and charge the costs incurred against the Subject Property pursuant to the provisions of Chapter 45 of the Saint Paul I.egislative Code. 3. In the event the building is to be demolished and removed by the City of Saint Paul, all personal properry or fixtures of any kind which interFere with the demolition and removal shall be removed from the properry by the responsible parties by the end of this time period. If all personal property is not removed, it shall be considered to be abandoned and the City of Saint Paul shall remove and dispose of such property as provided by law. 4. It is further ordered, that a copy of this resolution be mailed to the owners and interested parties in accordance with Chapter 45 of the Saint Paul Legislative Code. Reque5ted by Department of: Adoption Certified by Council Secretary By: Appr By: L . ' -� - _� i.r•� Form Approved by City Attorney By: �E�+/�- !� Z..S=4S' Approved by Mayor for Submission to Council BY:�� �� .��� Adopted by council : Date � aS.� �� l��-� �IS-I�D WHEREAS, the interested and responsible parties have been served notice in accordance with the provisions of Chapter 45 of the Saint Paul I.egislative Code, of the time, date, place and purpose of the public hearings; and WHEREAS, a hearing was held before the Legislative Hearing Officer of the Saint Paul City Council on Tuesday, February 7, 1995 to hear testimony and evidence, and after receiving testimony and evidence, made the recommendation to approve the request to order the interested or responsible parties to make the Subject Property safe and not detrimental to the public peace, health, safety and welfare and remove its blighting influence on the community by rehabilitating this structure in accordance with all applicable codes and ardinances, or in the alternative by demolishing and removing the structure in accordance with all applicable codes and ordinances. The rehabilitation or demolition of the structure to be completed within five (5) days after the date of the Council Hearing; and WHEREAS, a hearing was held before the Saint Paul City Council on Wednesday, February 15, 1995 and the testimony and evidence including the action taken by the Legislative Hearing Officer was considered by the Council; now therefore BE IT RESOLVED, that based upon the testimony and evidence presented at the above referenced public hearings, the Saint Paul City Council hereby adopts the following Findings and Order concerning the Subject Property at 835 Arcade Street: 1. That the Subject Property comprises a nuisance condition as defined in Saint Paul I,egislative Code, Chapter 45. 2. That the costs of demolition and removal of this building(s) is estimated to exceed three thousand dollars ($3,000.00). 3. That there now exists and has existed multiple Housing or Building code violations at the Subject Property. 4. That an Order to Abate Nuisance Build'ang(s) was sent to the then known responsible parties to conect the deficiencies or to demolish and remove the building(s). 5, That the deficiencies causing this nuisance condition have not been corrected. 6. That Public Health has posted a placard on the Subject Property which declares it to be a nuisance condition subject to demolition. 7. That this building has been routinely monitored by the VacantlNuisance Buildings Code Enforcement Program. 8. That the known interested parties and owners are as previously stated in this resoluuon and that the notification requirements of Chapter 45 have been fulfilled. l � 1 [ � O Public Health 298-4153 01- vY fATED GREEN SHEET N° 19155 ID11TfAVDATE 1NRfAVDATE DEPqRTMENTDIRECTOR CfTYCOUNCIL CITYATTOP.NEY v q7VCLERK FOF BU�GET OIRECTOR � FIN. & MGT. SERVICES DIR. � MAYOR (OR 0.SSISTAN'n � February 15, 1995 TOTAI # OP SlGNA7URE ACTION REQUESTED; AlL IACATIONS FOR SIGNATURE) City Council to pass this resolution which will order the owner(s) to remove or repai.r the re£erenced building(s). IE trie owner £ails to camply with the resolution, Public Aealth is ordered to remove the building. The subject property is located at 835 Arcade Stxeet. _ PLANN1NCa CAMMISSION _ CIVIL SERVICE COMMISSION _ CIB COMMITfEE _ _ STAFF _ _ DISTRICTCOURT _ SUPPORTS WHICH CAUNCII OBJECTNE? PEHSONAL SERYICE CONTRACTS MUST ANSWER TfiE FOILOWING QUESTIONS: 1. Has this person�rm ever wwked under a coniract for this department? YES NO 2. Has this personftirm ever been a ciry employee? YES NO 3. Does this personttirm possess a skill not normally possessetl by any currertt city employee? YES NO Ezplain all yes a�swers on aeparate sheet a�d attaeh to green sheet INITIATINCa PROBLEM, ISSUE, OPPOflTUNITV (WHO, What, When. Whare. Why) This building(s) is a nuisance building(s) as defined in Chapter 45 and a vacant building as defined in ChapGer 43 of the 5aint Paul Legislative Code. The owners, interested parties and responsible parties known to the Enforcement Officer were given an order to repair or remove the building at 835 Arcade Street by November 29, 1991, and have failed to comply with those orders. The City will eliminate a nuisance. JAN 27 1995 ����'� ��f°§s,.` �������� �4A� �9 1995 ���� :�������� DISADVANTAGES IFAPPROVED: The City will spend funds to wreck and remove this building(s). These costs will be assessed to the property, collected as a special assessment against the property taxes. g �d,,i..-. , 5' - _°-- • � '=a '`� iea:o-.ri..>f.i s��wa'.ej.$i �4�'Si �`•+Y J(�,� 3 �. �3�5 �.�,.,����,�,.�, ����...�.., .d�.� A nuisance condition will remain unabated in the City. This buiTdingTs�wi�l continue'to blight the community. TOTALAMOUNTOFTHANSAC7fON $ $440,000 Nuisance Housing Abatement FUNDING SOURCE FINANCIAL INFORMATION (EXPLAIN) COSTfREVENUE BUDGE7ED (CIRCLE ONE) 33261 AC7IVITY NUMBER YES NO 9s -I�o 7. Resolution ordering the owner to remove or repair the referenced building, located at 618 Whitali Street. If the owner fails to comply with the resolution, Public Health is ordered to remove the building. Legislative Hearing Officer reeommends approval � Resolution ordering the owner to remove or repair the referenced building, located at 835 Arcade Street. If the owner fails to comply with the resolution, Public Health is ordered to remove the building. Legislative Hearing Officer recommends approvai SUNIlVIARY FOR PUBLIC HEARIlVTG 835 Arcade Street Legislative Hearing - Tuesday, Rebruary 7, 1995 City Council - Wednesday, February 15, 1995 9s-��D This properiy consists of a concrete commercial buiiding, the attached metal structure over Azcade Street, the two accessory sheds and any associated debris, junk and building residue. The lot has a SQUARE FOOTAGE of 189,912. According to our files, the building has been vacant for approximately 10 years, and a registered vacant building since 1989. On October 25, 1991 an inspection of the buiiding was conducted, a list of deficiencies which constitute a nuisance condition had developed and photos were taken. An ORDER TO ABATE A NIJISANCE BiJII,DING(S) was issued on October 29, 1991 with a COMPLIANCE date of November 29, 1991. As of this date the nuisance condition has not been abated. The City HAS Had to BOARD this building which has resulted in assessments to the property. There have been eleven (11) SUMMARY ABATEMENT NOTICES issued for nuisance law violations, including: removal of improperly stored or accumulated refuse including garbage, tires, branches, metal drums and other debris; repair metal fence; cut and remove tail grass, weeds and rank plant growth; secure all points of entry including but not lirnuted to, rear door, north side fence, shed on north side, west side doors, south side openings, windows on north side below eight feet, garage on north side and north side doors. Two CITATIONS were issued to the owner far failure to maintain an unoccupied building in a secure manner; and failure to maintain e�terior property free from refuse. The attached letters are from Lieutenant Greg Pye of The Saint Paul Police, East Team and Fire Marshall Steven Zaccard. As of March 15, 1994 the Vacant Building REGISTRATION FEES in the amount of $200.00 have been paid. Housing Code Bnforcement estimates the minimal cost of repairing this structure(s) is undeterminable, and the estimated cost to DEMOLISH is $250,000.00. The Public Health Resolution submitted for consideration orders the property owner to repair or remove this struciure(s) within �ve (5) days, if not the resolution authorizes Pubiic Health to demolish and assess the costs to the property. DEPARTMEN7 OF POLiCE �Cs�l�a C(TY OF SAINT PAUI INTER-0FPICE COMMUNICATION T0: CHARLES A. VOTEL PROGRAM MANAGER DIVIS?ON OF PUBLIC HGALTH CODG ENFORCEMENT L'ROM: LIEllTENANT PYE SUBJECT: WHIRLPOOL BLDG. DATE: APRIL 3, 1992 On s-2�-92 at abouc 11:57 P.?�:. a Saint Paui Pulir? Squad was sent to the old SJhirlpool buiLding on Arcade ;?ar Y7e13s. They were sent there to invescigate a r_om�laint tha[ eresp.+ssers ha� zn[.ered che siCe and w2re doin� damage co !�he prop2r[y. llpu�; �rn v,�1, Lh2 OCtir_er rh2:ked Cne properLy 6uL was not able [o Iind anyune. in �h� process oL goiro Lrom :�.;z Iloor to che othzr, th2 O[ticer �aas going do'a�� sume s�airs ChnC �,�2r2 ]`:tered �ei�h debris, ice and suot Irom a 2ar1i?r (ir? ir,sid2 the bu�ldin�. Tt OLIic2r slipp2d .vnd tell do:an Lhe sLairs causing a 1„ceraCioi; [u his ielC thu-; ;ind a contusiur/aorasio�; [o his Corearm. The a���ury �::as noc ex[ensive �ue I i�eL this �ncidenc �ndica�es a broader uruolem. inis building has t=_?r vacanc Eor rumerous years a��d is no� 52r_w There are a i;umber oC 6roken - ��indours throughuur ch DLI]jQI1�0 �{S ��J? as i[ be�r,o acr_essiblz Cr.om severa�. suurr_es. Once i��side the building, there a�e sev�ca� hazards such �s ��pe�7 alev2tor shalts end gei�er deceriora�ion oL the Uuildiug. In addition tc the incidents tha� rzquirz a poiir_e response, I b=_li�ve that thzre hav2 bee-, ins[ar:ces where the Fire Dzpartmen[ had to be rallzd to ex�;nguish Lires o; one nature or another. Since I am una�.�are oL �he exaec address �oL [he build'.ng it is nut passible to deC2rmine the exart number oi r_i11s t� that buiLding. The i;earest intersertion ,s �r_adeJ�;el'.; <<;;d sirr_e Ja,uary , 199i, �here have been ni:;z�y (90) r_aiis Lor s_rvir_e to �hac Lor_�tion. I:oould susper_t that a good perr_zntage oI [hat �igure are to th2 Whirlpool butldin=. The purpose oL this memo :s �o make you a�aare of the orobtems at this site in che hop2s tha[ sc.eps will oe �a'r.en by �he owner Co resulve the prublem and avo!d Cueure injuries or inridents. ii yov have any questions, Ceel Iree to con�act ma at 291-1111, exc. 565. T_-ank you Lor your atten�ion [o �his macter. =�� Captain Wills ':�.ti 75.5� �'s-��� CTTY OF SAIlVT PAUL Nonn Co1rn:Qi�, ,Nayor NiEMORANDUM DEP,-�TMENT OF FIRE :. V D S.�.FEI'Y S cRVICES Trmodry R, Fu(lrr, Firc CGiej DNISION OF FQ2E PREVEtiTJON Sterui Zcc�prd, Fire N.¢rsfw[ 1� Eart E[e�a�Ji Smcer 7dtpl:one: 612-228-6230 Sain� Pa�d, MNS5701 Fats''im[r: 612-225-6241 T0: Asst. City Attorney Peter Warner FROM: Fire Marshaf Steven Zaccard `�� DATE: January 3, j995 RE: Demotition of Dangerous Structure at 835 Arcade St. - Former Whir{pooi Sui{ding The former Whirlpool Suifding which is uacant at 835 Arcade St. constitutes a"dangarous structure" under Leg. Code Sea 43.02 and 45.03 as well as an "Unsafe Builair�g" under Mn Uniform Fire Code Sac. 2.201(b), copy attached. Therefiore, ( urge you to take the necessary Iegal actions to cause this dangerous and unsafe building to be demolished immediately. Since this building vdas vacated and the fire sprinklers shut oif on October 7, 1985, the fise dapartment has responded to nineteen(19) fire calls - most of them were actual fires. There has been at least one extra-alarm fire. There have been firefighters in}ured fighting fires in this building and others neariy injured by faffing through the many unprotected floor openings in this building created by missing structura( pa�s. Any more f+res in this building have the significant poten#ial to seriously injure or even kifi firefighters. Aiso since the b�ilding was vacated �nre have received seven(7) complaints and made twenty-seven(27) tinspections of this vacant and deteriorated building. This building has caused us a significant work load, and it's not even occupied. This building goes beyond being a public nuisance. It is a dangerous fire trap. Countless attempts to secure the building from trespass have failed - we still have arson fires there. And although the buildting is not supposed to be occupied, it sometimes is occupiec+ by trespassers and poses a serious life safety risk to firefighters who must suppress the fire no matter what the va(ue of the propert,�. � s- �� a RE: 835 ARCADE ST. Page Two January 3, 1995 Chief Fuller and 1 cannot, in good conscience and professional duty, permit this hazard to continue. No mefhod other than demolition will abate this hazard. Pfease initiate the speediest City Councii action possible to demolish this building. Thank you. cc: Janice Rettman Tim Fu41er Gary Trudeau Kathy Owens Phi4 Owens Chuck Votel Attachments 2.201-2.203 � ' f� 199T UNIFORM F(RE CODE � , (b) Unsafe Buildings. Buildings or structures which are stsucturally unsafe or not provided with adequate egress, or which constitute a fire hazard or are ( otherwise dangerous to human life, orwhich in reIation to existing use constitute a ; =� > hazazd to safety or health or pubiic welfare, by reason of inadequate maineenance, ' �:dilapidation, obsolescence, fire.hazard, disaster damage or abandonment as � , specified in this code or any other ordinance, are, for the puzpose of this section, �-= � unsafe buildings. Such unsafe buildings are hereby declared to bepublic nuisances and shail be abated by repair, rehabilitation, demolition or removai. See the� �. procedure specified in Chapters 4 through 9 of the Uniform Code for the ,� . Abatement of Dangerous Buildings. / � �vew �onsiruct�on and Aiterafsons Sec. 2.202. (a) GeneraI. Construction oz work for which fire department approval is required shall be subject to inspection by the chief and such construction or work shall iemain accessible and exposed for inspection purposes untii appzoved by the chief. :�pproval as a result of an inspection shall not be construed to be an approval of a violation of the provisions of thas code or of other ordinances of the jurisdiction. Tnspections presuming to give authority to violate or cancel the prov3sions of this code oz of othez ozdinances of the jurisdiction shall not be valid. Tc shall be the duty o£the pe; mit appiicant or contractor orboth to cause the work to _emain accessible and exposed forinspection purposes. Neither the chief nor the jurisdiction shall be liahie for expense entailed in the removal or rep]acement of any mater%al required to allow inspection. (b) Ins�ection Requests. Tt shali be the duty of the person doing the work authorized by a permit to notify the chaef that such work is ready for inspection. The chief is au[horized to require that every request for inspection be filed not less than one working day beiore such inspection is desired. Such requests may be in writing or by te]ephone at the option of the chief. Tt shall be the duty of the person requesting any required inspections to provide access to and means for proper inspection of such work. Investigatians Sec. 2.203. The fire department is authorized to investigate promptly the cause, oricin and circumstances of each and every fue occurring in the jurisdiction involving loss of life or in}ury to person or destruction or damage to property and, if it appears to the bureau of investigation that such fire is oi suspicious origin, they are authorized to take immediace charge of all physical evidence relating to the cause of the fire and are authorized to pursue the investigation to i[s conclasien. The chief is authori2ed to investigate tne cause, origin and circums[ances of unauthorized releases of hazardous materials. The police department is authorized to assist the fire department in its investigations when requested to do so. �S-Ica ` ;� _ ;;� ;,,i � � .. � ��. , ' f 1 � ,, ,% i';> 6 a CII'Y OF SAINT PAUL lamcs Schcibcl, Mayor October 24, 1991 LIEPARTi.SENT OF C04(MUNITY SERVICES Roy Garza, Director � � '��� DMSION OF PUBIIC HEAL7FI HDUSING CODE PROGRd;dS S55 CedarSne<t 612-292-7i77 Saint Pattf, MN SSIO]-2260 Order to Abate Nuisance Building(s) Andrew Realty Corporauon c/o Quadrelle Realty Services 2 East Avenue Larchment, NX 10538-2419 Dear Sir or Madam: The VacantiNuisance Buildings Code Enforcement Unit of �he Division a� I'ublic Healfh hereby� declares the premises located at: 835 Arcade Street and legai(y described �s foilows, to wit: Andrew Addition Lot 2 B1k 3 to comprise a nuisance condition in vialation of the Saint Paui IRgislative Code, Chapter 45.02, and subject to demolition under auttiority �a� Cha�tez� 45.11. On October 25, 1991, a Building Deficiency Inspection Report was compilecl >md tlie fellowing conciitions were-observed. Ttiis Iist af deficiencie,s is nnt necessarily all the deficiencies prssent at this �z:�ae, '?'has building(s) is subject to the restrictions of Saint Paul Ordinance Chapter 3�,03 and shaIl noi agaia b� used for occupancy until such time as a Certificate af Cr»plianc� az u fie; �afi�aze of Occup�ncy has been issued. All repairs must �ae in accorda,�ce wi�h :��pro�; ir i� cc;dcs, Changes or additions fo the eIectrical system, mechanical spstem, �Iumbing s�st.2zn may necessitate updating or upgrading the systems involved. Order to Abate - 835 Arcade Streee October 29, 1991 Page: 2 �i s- tG �? 1. This structure is vacant and open on alI vpper floors. The building is void of alI electrical, plumbing and mechanical components, except some old boilers and broken toiiets on the first floor. 2. Almost all windows aze broken out. The concrete walls, floors and ceilings inside are deteriorating and the exterior walls are deteriorating from age and lack of maintenance. 3. Refuse is minimal, however some bumed debris andicates vandals have started one oz more fires. Vandals continue to break into the building and the yard areas and parking lot aze an attractive nuisance to children, vagrants and adolescents. 4. The building has been a Registered Vacant Building with the Division of Public Health since Ju1y of 1989_ � 1. This strucf�i.�e is vacant and open on all upper floors. The building is void of a11 electrical, plumbing and�mechanical components, except some old boilers and broken toilets on the first floor. � 2. Almost a11 windows are`b oken out. The concrete walls, floors and ceilings inside are deteriozating and the exten�alls are deteriorating from age and lack of maintenance. 3. Refuse is minimal, however some�ed debris indicates vandals have started one or more Fires. Vandals continue to break into e building and the yard areas and parking Iot are an attractive nuisance to children, vagrants�a,nd adolescents. 4. The building has been a Registered Vacant Buiiding with the Division of Public Health since July of 1989. As owner, agent or zesponsihie party, you are hereby notified that if these deficiencies and the resulting nuisance condition is not conected by November 29, 1991 the City of Saint Pau1, Division of Public Heaith wili begin a substantial abatement pzocess to demolish and remove the building(s). The costs of this demolition, including administrative cosfs will be assessed against the property taYes as a special assessment in accordance with law. As first remediai action, a Code Compliance Inspection must be obtained from the Building Inspection and Design Divisian, Room 445, City Hall/Courthouse, (612)298-4212. Thas inspection will identify specific defects, necessary repairs and legal requirements to correct this nuisance condition. �s-1G� Order to Abate - 835 Arcade Street October 29, 1991 Page: 3 You may request the City demolish tfie building(s} by contacting the Enforcement Officer at {612}298-4153. Please be advised that all owners and interested parfies or lienholdezs of record must also sign this document. As an owner or responsible parry, you are required by law to provide full and complete disciosure of this "Order to Abate" to all interested parties, all present or subsequent renters and any subsequent owners. If you sell, transfer, or convey in any manner, the ownership or responsibility for this property, you must within seven (7) days, notify the Enforcement Officer with the names and addresses of any new owners or zesponsible parties. The Enforcement officer is required by law to post a piacard on this property which declares it to be a"nuisance condition", subject to demoTition and removal by the City. The Division of Public Heaith is further required to file a copy of this "Order to Abate° with the Ramsey County Recorder's office and the City Clerk's Office. If cozrective action is not taken within fhe time specified in this order, the Enforcement Officez will notify the City Council that abatement action is necessary. The City Clerk will then schedule dates for Public Hearangs before the City Council at which time testimony will be heard from a11 interested parties. After this hearing the City Council will adopt a resolution stating wbat action if any, it deems appropriate. If the resolution calls for abatement action the Councii may either order the City to take the abatement action or fix a time within which this nuisance must be abated in accordance with the provisions of Chapter 33 of the Saint Paul I,egisiative Code and provide that if corrective action is not taken within the specified time, the City shall abate this nuisance. If you have any questions or request additionai information please contact Charles Votel between the hours of 8:00 and 9:3� a.m. at (612) 298-4153. Sincerely, C el � � Program Supervisor VacandNuisance Buildings Code Enforcement Program CV:jm cc: S. Pemberton, PED - ITousing City Clerk Ramsey County Recorders Office rc�-u�-yb FRI 14:54 PORT flUTH, OF ST PAUL FAX NO 612 223 5198 SA1NT PAUL PC?R7 AUTH4RITY MEMORANDUM DA7E: Fehruary 3, 1995 TO: Councif Person Devid Thune Councii Person Janice Rettman Cflunci! Petson Ntarie Grimrr� Dr. Neal Holtan, Direcfor Department of Aublic Heaith FROM: Kenneth R. Johnson� SUBJECT: Wfiirlpooi Build;ng 17 Demolition P, 02/�2 �S-f�o 1 understand that the City of Saint Pau!'s Public Heafth Department is moving forward with the demolition of Whir(pool Bui{ding 17 and the skyway, and f want you to know of the Saint Pau! �ort Authority's strong support of the demolition of this structure. The Port Aufhority has Ioaked at the redevefopment potential of this buiiding twice over the last several years and each time has determined that the best redevefapment option for this property is ta demolish the structure. Alfhough one wauld intuitively look at a struciure of fhat size and substance and think that the property could be reused somehow, our estimates of rehab costs, under a variety of scenarios, and the poterrtial income derived from the prc�ject would ieave a gap of over $3,000,000, Our estimates are based on construction estimates from our engineering consu4tant and sevewal inspections of the property, Also, to test our assumpUons in the markef, we have faken severa{ prospective tenants through the buiidtng and have been unable to secure any interest in the praperfy from a bona Fde tenant. As the Port Authorify moves forwatd with the redevelopment of the Phalen Cotr�dor area, our efforts will be furthered by having the bui(ding remaved rathgr than remaining a blight and safety hazard as wel! as a reminder of the jobs Whir►pooi took with it when if ieft the �ast Side. Thank you for your aftention to this impartant matter. if you have any ques#ions, please give me a cafl. sjs cc: Mayor Norm Coleman Patrick Seeb Larry guegyer Lorrie Louder David Stokes Jerry Strathm�n . CITY OF SAINT PAUL Norm Colemaq Mayor RECE��ED To: Council President David Thune Counc�7member Jerry Blakey Councilmember Marie Grimm Councilmember Dino Guerin Councilmember Mike Fiarris Councilmember Roberta Megard Councilmember Janice Rettman From: Marie Franchet��� Mara O'Neill (�1 Re: Date: Purpose Building 17 February 14, 1995 DEPARTMENT OF PI.ANNING & ECONOMIC Dh'VELOPMENl' Ltary D. Buegle, Direcwr c�g..1� u w�xFo� sveu r�rw„� ezz-zcc-6�on SaintPaul, MN55102 Facsimilc� 612-228-3261 �'EB 15 1995 CO UNCfLMElygER MARIE GRlMM The purpose of this report is to advise the City CouncIl of a proposal presented by the attorney of Building 17's owner at a meeting with Mayor Coleman on February 9th. The PED Credit Committee reviewed the proposal at its meeting on February 13th and recommends that the City Council consider delaying action on the demolition of Building 17 for up to 6� days during which time it would be espected that the owner prepare a definitive proposai for the renovation of the buildang. Background Building 17 is a three-story, reinforced �ncrete frame building contauung 176,555 square feet. It has been vacant since about 1985 when the Whirlpool Corporation closed its opetations on the East Side of Saint Paul. The Whirlpool site was purchased by Andrew Realty Corp. of New York for a three phase development. The first phase of the Seeger Square development included the development of a Rainbow grocery store on the east side of Arcade Sueet and a small strip mall across d�e street. The second phase included the development of a Drug Emporium and the Ramsey FamIly Physicians clinic. These two phases are complete. Phase three was to include the redevelopment of Building 17. A total of about $12 million in private financing was invested in the first rivo phases of the development. In addition, the City/HRA K:ISFIARED�tvICf'�BLDG57CC J L��C�11I1CII�S 1. Project information to be included in a definitive proposal 2. Proposal I.etter dated February 9th from Larry Pregon with attachments cc: Mayor Norm Coleman Larry Buegler Ed Starr Larry Pregon Ron Zamansky � 3 - �'S — lc. ° provided a 5350,000 "ITF loan for the development of the ciinic along w�ith two L3RAP grants of about $75,000 each to assist tenants in the deveIogment. Since October 1991, Building 17 has been under orders as a nuisance building under the City's Nuisance and Vacant Building Ordinance. Over the last several years, staff has assisted the owner's marketing attempts by including the building in our inventory of available property along with referring clients to the site and to the property manager of the building, Quadrelle Reatty of New York. In April 1992, the City and ESNDC proposed to the owner a use of URAP gant funds to paint the building to make it less of an eyesore provided the owner matched the grant with private funds. Apparently, the owner was unwilling to in}ect additional cash into the bu�7ding at that time. Later in 1992, the owner submitted a redevelopment proposal to the City requesting $750,000 in Ciry financing to redevelop Building 17. It appeared that this amount of funds would have been sufficient to provide only minimal rehab of the building. The owner had no tenants lined up nor was any additional private financing included in the groposal. Current Situarion Independent of and separate $om all afforts by PED staff to help move forward the possible compietion of the th'ud phase of the Seeger Square development, the City through its Public Health Department, with input from concerned citizens, has considered the building as a public nuisance and has aimed toward the process of demolition of the building. PED staff is requesting that this demolition pracess be placed on temporary hold until the proposal recently put forward by the owner can be evaluated more fuliy. Pcoposal Submitted February 9th At a meeting in the Mayor's office on February 9th, Ron 7amansky, attorney for the owner of Building 17, indicated that the owner would be willing to prepay the outstanding TfF loan noted above, provided that the City would invest the prepaid funds into improvements at Building 17. Mr. Zamansky proposed thai the unprovements would enhance the building's appearance, alleviate community concerns, and rnake the building more mazketable to prospective tenants. (As you will recai, ihe balance of the TIF loan is about $280,000. 1fie Credit Committee and the HRA Board recently approved an exchange of collaterai on this loan in order to allow the owner to refinance the first snortgage £mancing. As part of this refinancing, HRP. will exchange a second mortgage for cash or cash equivalents equat to the loan balance. In addition, Mr. Zamansky has indicated that the owner expects to inject an additional $1.3 million into the Seeger Square project.) Staff Is requesting that the City Council delay taking action on the demoliUon of Bnilding 17 for ug to 60 days to permit the owner to prepare a definitive proposal for the renovation of the building for the Credit Committee to evaluate. The HRA Board of Commissioners would have Yo approve any use af the prepaid 'TIF funds. The attachments herewith include a summary Qf the items expected to be part of the owner's proposaL x:�s�xr.nuKCmscncncc — a —' , �5-I4� Summary of Project Information to be Included in Proposal • Sources and Uses of Funds Statement for the inirial improvements to be made to the property and Sources and Uses of Funds Statement for the full renovation of the building. � Detailed line item cost estimates of initial improvements to be made to the building. • Timetable for completion of uutial improvements and final renovation and occupancy. • Proposed terms and condiflons of any prospective City financing. • List of tenants for the building and any further documentation regarding the feasibility af renovation of the building. � Preliminary pro�-forma for the completed project. • Financial Statements for the owner for the past three years. rE9 9 '95 I3:38 Quadrelre .�eaZty �5er�ic�s� � ANi51ON Of TH� WADRELIE G'IaUP.!!7G 3�tANAGEMENT a CEA5ING a SA�ES e AA?RA7S�cLS � CAt�SUL7kti7S February 9, 1995 Hanorabie Norm Coleman 15 West Kellogg . . 390 City Hall St. Paul, Minnesota �Si02 Nfr. Ran Zamansky �amansky Professional Associa�ion 4924 IDS Tower 80 South �ighth Street Minneapalis, Minnesota 55402 RE: 835 Arcade Street Buitding #17 St. Pau�, Minnesota Dear Mayor Coleman and Ran: FRGE.062 As a result of the Public Hearing before the Legislative Hearing Officer on Tuesday, February 7, 1495, enclosed please find the following: 1. A 3ist of $280,000 in Pmposed Improvements related #o the rehabilitation of Buiiding I7, and related structures. 2. OveraIl Perspective of fhe Improvements Please be advised zvith reference to 3he Irnprovements, that our cantractor is aQplying for a buiiding permit today, to accomplish the improvernents as soon as possible. � � Member ot �� 6��� Iatem�rt3onttCwrnclt L� y OfShopptnQGmers . �� rr[xcroa• . � k.w.c.or�.� - FEB 9 �95 13:39 February 9, 1995 Page 2. ' FRGE.GO� a � � The owners again reitezafe their offer to provide �280,000 in cash to accomplish the improvements. This is a reaffirmation of our proposal on 1/11/95 to the City, and again offered at the Hearing, which has never been responded #o. The funds are in the cash escrow that is security for the balance of the Tax Fncrement Financing District Loan, provided ta assist in accomplishing the Ramsey Famiiy Physicians tenancy. We propose to pay off the Ioan in its entircty, provided the City of St. Paul allows us to use the payoff funds to rehabilitate Building 17. I am also enclosing a memorandum from Windsor/Faricy Architects dated 7anuary 31, ]99�, establishuag that the Building is structurally saund, and can be rehabilitated. Please note we will need maxunu.m flexibiliry and co- aperation on the part af the City of St. Paul to have the Building comply with present codes {Exiting, ADA, etc.). Also cnclosed is documentation from CB Commercial, experts in industrial leasing, con�rming the severe lack af quality industrial properties on the �as# Side, the_ City of St. Paul and the Twin Cities in general. Building 17 contains more vacant industriaI space than the entire East Side combined. 'This market analysis conf'u�ns our consistent belief that the highest and best use of Bnilding 17 is rehabilitation �n demolition. The above constitutes our immediate response to the issues raised at the Legislative Hearing. We are canf'ident that our action wili comply with the requests by the City for rehabilitation of the $uilding, and also the improvemcn�s sgecificaIly a�dress District 5 and the neighborhood's concerns related to Building I7. We wouid hope fherefore, that our contemplated actions wi21 persuade the City of St. Paul to reject the concept that Building 17 be demolishad. FEB 9 '95 13:39 February 9, 1995 Page 3. PAGE.��4 'l�e Iong range goal of the owners of BuiIciing 17 is to complete Phase 3II of fhe PUD, in a inanner which allows the co-existence of the Phalen Cozridor initiative with the redevelopment of Buitding 17. In that regazd, I am enclosing a sita plan and three (3) per�pectives which. show the co- existence and depict a project where tha East Side of St. Paul, specifically Seeger Square, is the "GATEWAY" to tha Phalen Corridor. With your support a�d t3�� City's concurrence, the owners will commence work unmedixtely. The completion of the plan relies on the caoperation and financial assisfance of our corporate neighbors and the Ciry of St. Paul, and the support of the community. Very truly yours, QUADRELLE RBAI.TY SERVICES o� � �'�� �. Lawr:.:tce Przgon �� ` Property Manager cc: Stuart Lichter w/enclosures � Gerry Wendel w(enciosures Barry Lang wJenelosures encios. LP:ks � BUIL.AING .# 17 PROPROSEDiMPROVEMENTS FEBRUARY 9,1995 I�\4PROVEMENT I SECURE BUILDIII�G OP£t�AC:5 WlTEi CONCRh`TE SIACK NEW I20LLING STEEI. DOORS ANA METAL S700FtS RYa40VE GUARA SHACK II PAINT BUILDIl`IG TO MATCH SEEGER COLORS INCI.UDThG ACC�i3T STRIPE III REMOVE LQADR�IG DOCK ALQNG Tf� RAiLROAD TRSCKS RE SKiN TFI� CANOPY ROOF AND REMOVE ALL WINDOWS REMpVE ALL DUCTWORK ETC ON Tf� EXTERIOR N ENCT.OSE THE SKYWAY SUPPORT WiTfi CONCRE'IE BLOCK TO MATCH SEEGER SQt3ARE AND PAINT V R�PAINT TIiE SKY�i'AY TO MATCH SEEGER SQUARE PROVIDfi TWO t2) TI.LL�MLNATED SIGNS ON THE TOP OF TI-� SKYWAY "SEEf�'Eft SQUARE" AND ELEC.TRII�Y YI REPS,AC� ROOF COPING Aiv� REPAIIt ROOF{S) VII GEI�'ERAL COND�'IONS/ Iv1TSC£LLANEOUS $tTDGET $ 540,004 $35,OL10 535,000 $b5,Q00_. 555,UD0 $20,OOQ $10,000 VI1I ARCE�'I'ECTURAL,ENGINEER�i'G,CONST MGMT,PROFFEES 520,000 TOTAL 5280,000 Page 1 �[S-l�� ,,�; ;� � _ . w-= _ ... . . . -� _ -- - �� , �' ; ' ' TO: File MEMORANDUM RE: Se�ger Square, Bui(ding �17 W/F Project No. 8527-9301 DATE: 31 January 1995 FROM: Jim Cox - WinsodFaricy Architects, Inc. We have reviewed this buiiding and its conneciing skyway bridge from a structural and leas2 layout si2ndpoint. The bay sized and struc;ural column spacing a((ow for multip(e usa ten�nts wiih high cailing heights to accommodate various build-oufs. The heavy concrete strucfura! coiumn and slab systems pravide extra fioor ioad capacity for industriat tYpe uses. — - i nis she(( buiiding can eas�iy be infecrated info the Seeger Square buiIding s:yie simply by applying a coat of paint, nE�v windows, 2nd some entr2nc� graphics. The skyway could be used as a community sp2ce or simply p2inied, signed �nd pres2nied 2s a gateway to the East Side retaif businesses. Exterior lighting, 12ndscapir�g �nd p2rking iat overlayment wi11 be required to make �his Iast remaining Whirlpool structure a useiul building and compiete the '1985 2Qproved plar�ne�l development, which designates ihis building as a combination reiail and light industry component, providing jabs to the East Side. � . ez.es��s is:ai CA CUMxr�tc]�), . JZtiA7, J?S7A1'i3 (3kf�i17: 17;f:. DIIOy�CRAOC Ak'.I .LfA(<AC.'�A1LKI' r LCbiS� ),t/�L LYW9 7}q(y�( ��Vy�� ��.�+t Pebruary 6,1945 Mr, Lawrencc Pregon Pmperiy Manager QIlAAKSLL& REALTY SERY2CE5 Oue West Avenue I.archmont, NY 7 0538-2447 Dcar ATr. Pre�an: Upc�n our review of tH� i»dustrial marke( data for SL Paul, it is our op3nion that 4ie lin�ing is right to tbdevelop Bpi3ding �l7 of Seegcr Squa�ti, Tlic am�unt of available industrial spacc in St, PauI has diminished cubstan4ially. The:e is 338,000 square feet of avuilable indusirial spACe, of wdiich 174,000 squsre Peet is Building #171z 3e:ger Square. The vacancy rato for industriscl �mperiy }n S� Paul is currently 3.d3°tv, nc� only vaca��t industrial space on ttu east side is your building. T6erefore, r��� befieve the detnand for indusu•ia1 space cvn support �ur propased renovadon of Bnilding #17. Enclose6 you will �nQ data supportiiig tiiis opinion. CB CDNd1ERC I AL �s-tc.o 6� �� � COMMERC[AL 1.OGtt�'1f01116�! }�L�M'�21 Vda would appi'CCiBtd tl�c chancc to fittthcr discuss thc Tcflovazton of Duilding n17 with you. Our experience i» i�asing siinilar bulldii3gs in St. Paul wl11 provide vslue in your decisioi� m�i:ing process WO IQDIC fQS'S}'dTQ fC1 5pC9}:111� �i1�1 `�OU SOD31 Sinc�rCly -- �� 2 ���'"C'� Thomus D, Stmon soniar Assooiata (6i2) 924•4663 � ���� Stc�lio�s A. Bray Associate (6S2)924-4G77 Enciosure xiir.nas.s�x