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Committee awards foundry demolition contract amid pending DNR soil review
Summary
The Finance and Property Committee voted to award the demolition contract for the former foundry at 339th Avenue South to MRD Group while DNR review of soil testing remains pending; funding may use a WEDC site-assessment grant and TIF 7 increment. The packet and the motion contain inconsistent bid amounts.
The Finance and Property Committee voted to award the demolition contract for the former foundry at 339th Avenue South to MRD Group, even as city staff await a Department of Natural Resources review of recently completed soil testing.
Mr. Kurts, who presented the project update, told the committee that “testing of the soils has occurred. A report from the consultant has been submitted to the DNR. I have not yet seen that report.” He said the city secured a site-assessment grant through WEDC “of up to $150,000 to cover the costs of testing, abatement, disposal, and building demolition.”
The packet provided to members identifies two bidders, MRD Group and Hoser Worldwide, and states the lowest of the two is $108,700. During the meeting Jeff Dennis moved “to award the bid results for Foundry located at 339th Avenue South Demolition Project to MRD for the amount of $18,700.” A committee member seconded the motion and the chair recorded the motion as passing with two votes in favor. The committee did not resolve the numeric discrepancy in the meeting record.
City staff emphasized that the award under consideration covers above‑grade demolition only. Mr. Kurts said the DNR’s soil findings will determine whether below‑grade work (foundations and slabs) should be left in place until a remediation plan is agreed with the agency. He said the WEDC grant can reimburse eligible disposal costs (including tipping fees) but cannot be used to pay city staff time or equipment; the city plans to seek reimbursement for eligible costs and may charge other eligible expenditures to increment in TIF 7.
Mr. Kurts described the work so far as “phase one,” consisting of site security, fence repairs and removal of a former transformer, and said a second phase would follow the DNR review and could require a hazardous‑waste consultant depending on contaminants found. After remediation the city intends to market the site for private redevelopment; planning documents suggest possible mixed‑use, low‑intensity commercial or multifamily development.
Next steps: staff expects the DNR to respond within about one to two weeks and will report back to the committee; the award to MRD Group is recorded in the meeting minutes, and staff must reconcile the packet bid amount and the motion amount in the official procurement record.
