IR seeking to finance bond for CTC demolition
IRON RIVER—The city of Iron River took the next steps toward the demolition of the former Coast to Coast building at the regular meeting of the City Council on Feb. 18.
City Manager Perry Franzoi reported that the city contacted three local banks, seeking bond financing for the project. First National Bank and Wells Fargo are still in talks, while Miners State Bank has decided not to participate at this time, Franzoi wrote in his report.
Also, the council decided to accept the demolition bid of $250,000 from Associated Constructors of Marquette, which is partnering with FA Industrial Services of Iron River. Estimated costs included in the bid were the actual demolition, demolition debris disposal, the common wall (with the neighboring Anderson building) sealing and capping and asbestos abatement of roofing material, among others.
The bid was $39,700 less than Moyle Construction, the second lowest of the six companies that placed bids.
Franzoi had recommended the city accept Moyle’s bid because Associated Constructors initially didn’t provide all information that he was seeking.
“The primary concern of our bid is protection of the Anderson building,” Franzoi said. “In the Associated bid package, there wasn’t any detail to address the common wall protection of the building. Subsequently, they supplied the information.”
Once the demolition plan included the proper criteria, Mayor Terry Tarsi was convinced to go with the low bidder.
“I want the building knocked down, I want the Anderson wall protected and I want people protected,” Tarsi said. “As long as its $250,000 when we get it done and it’s done the way we want it done, nobody has shown me why the city of Iron River should spend an extra $40,000 to tear down the building.”
The motion to accept the bid from Associated Constructors, contingent upon securing the bond financing, was passed 5-0.
The actual costs involved in the project will be higher than that, however.
“When we do make an award (to a bidder), there will be additional costs,” Franzoi said. “The issuance fee is for the bond to (attorneys) Miller Canfield and the contingency for construction.”
Franzoi reported that