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Council awards E. Washington Ave. bid to local contractor, ties award to MMCDC special-assessment agreement
Summary
The Mahnomen City Council voted June 15 to award the East Washington Avenue street and utility contract to Gordon Construction of Mahnomen, Inc., contingent on a special-assessment agreement with Midwest Minnesota Community Development Corporation (MMCDC). The project bid totaled $174,705.49 and the estimated total project cost is $276,985.47.
The Mahnomen City Council on June 15 approved awarding the East Washington Avenue street and utility contract to Gordon Construction of Mahnomen, Inc., contingent on an executed special-assessment agreement with the Midwest Minnesota Community Development Corporation (MMCDC).
Tyler Madsen of Apex Engineering told the council that Gordon Construction submitted the low bid and that MMCDC had not finalized its sign-off; he asked the council to award the contract now to meet the 30-day bid-hold window. “The low bidder was Gordon Construction of Mahnomen, Inc. Mahnomen, MN, with a total bid of $174,705.49,” the engineer’s bid summary states, and Apex recommended awarding the contract “contingent upon an executed special assessment agreement between the City of Mahnomen and Midwest Minnesota Community Development Corporation (MMCDC).”
Council also approved a special-assessment agreement with MMCDC that identifies MMCDC’s share of the project costs and provides for a 10-year assessment at an interest rate of 2% above the city’s bond sale interest rate (the packet estimated the bond rate at 4%). The project-cost summary in the engineer’s materials lists a total project cost of $276,985.47 and an MMCDC assessment estimate of $234,403.92; the city portion for certain service replacements is shown separately in the engineer’s cost breakdown.
Councilmembers said moving forward now would preserve the low bid while the MMCDC agreement is finalized. The motion to award the bid contingent on the MMCDC agreement passed unanimously.
