ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director with a Request to Approve a CONTRACT with RIVER CITY DEMOLITION, in the Amount of $82,500.00, for the Demolition of Properties Located at 801 NE PERRY and 803 NE PERRY.
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BACKGROUND: The City of Peoria has received a court order allowing for the demolition of properties located at 801 and 803 NE Perry. Both properties are in a major state of disrepair. During the demolition case, the City hired Dewberry Architects Inc. to provide a cost estimate for a full rehabilitation of the property located at 801 NE Perry. Their summary stated, "The apartment building at 801 Perry is in a deteriorated state of disrepair and will require significant work to make the building habitable. Taking into account the current state of the building, code requirements, and historic requirements, the cost to renovate this building to eight (8) occupiable units could range from $1.3 million to $1.7 million." They went on to state further, "Current market rents in the area of 801 Perry would not appear to support the renovation investment necessary to provide safe, code compliant housing." Attached to the Council Communication is the report from Dewberry Architects Inc.
The City released a bid for the demolition of 801 and 803 Ne Perry. The following bids were received:
Contractor |
Bid |
River City Demolition |
$82,500 |
Ironhustler Ex |
$136,400 |
FCI Ex |
$96,205 |
Jimax Corp |
$83,795 |
River City Demolition was the low bidder. River City Demolition currently has the residential demolition contract with the City of Peoria and has the knowledge and expertise to handle a demolition of this magnitude.
Please note that the bid price for the demolition includes the cost to demolish the apartment building at 801 NE Perry and the residential structure at 803 NE Perry. In addition, the cost for required environmental testing is included. The cost to remediate environmental issues is not included in the cost of demolition.
FINANCIAL IMPACT: Commercial demolitions, emergency demolitions and demolition in historic districts are charged to the demolition account 101-1915.507.36-20.
NEIGHBORHOOD CONCERNS: The demolition of these two properties will remove two vacant blighting influences to the neighborhood. Concerns have been expressed regarding the demolition of two properties in a historic district.
IMPACT IF APPROVED: Properties will be demolished.
IMPACT IF DENIED: Properties will remain standing causing a public safety hazard as concerns are starting to grow regarding state of disrepair and further deterioration.
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: 000-37-150630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Attractive Neighborhoods with Character: Safe and Livable
2. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Reduce crime.
3. Have an efficient government.
DEPARTMENT: Community Development