As new asphalt paved the way along Lake Street as part of the Panoway (Lake Effect) Project Phase 1, a $10 million request for Phase 2 stalled at the state Capitol.
Courtesy Lake Effect Conservancy/City of Wayzata
A week-long special session ended Saturday morning with many items still on the table.
One of these includes a bonding bill.
But even if legislators passed a bonding bill, both the House version, HF107, and the Senate version, SF4, did not include the $10 million the city of Wayzata had asked for.
This is the second time Wayzata’s request did not make the cut.
In May, as the regular session wrapped up, Panoway Project Phase 2 was not on the final version of bonding bills before the legislature.
This hasn’t deterred the city.
“We fully anticipate being a part of the bonding bill and need the funding in order to move forward Phase 2,” said Wayzata City Manager Jeff Dahl. “It’s a long process of obtaining public funds, though, that may continue beyond this year.”
With a lot of unfinished business in St. Paul, the Legislature could be called back for another session in July.
That means Wayzata’s $10 million ask may have another chance.
In an effort to secure state funds, the city hired Lockridge, Grindal, Nauen PLLP in August of 2019 to advocate for Wayzata.
The firm was initially hired on a 12-month, $40,000 contract.
“We have no interest in ending our partnership with LGN on capturing public funds to assist in meeting the initiatives of the City,” said Dahl.
Back in October, Wayzata city officials hosted the Minnesota Senate Capital Investment Committee to educate them on the importance of a boardwalk and ecological restoration along the shoreline of Lake Minnetonka as a part of Phase 2.
In January, Minnesota Gov. Tim Walz recommended a $10 million for a grant to the City of Wayzata.
But funding Panoway Phase 2 is not limited to a $10 million request of the state.
In 2016, the city council approved an agreement with the Lake Effect Conservancy.
“The Wayzata Conservancy role in support of the City of Wayzata’s efforts to bring forward Panoway are as follows: Advocacy, Fundraising, and Project Coordination,” said Conservancy Board Chair Andrew Mullin.
Mullin says that the Conservancy has pledges of nearly $2 million dollars.
But that number could be negatively impacted because of the current economic downturn.
“The Covid pandemic and resulting recession/depression have made an already challenging fundraising task even more difficult and will likely place some of our private pledges to date at risk,” said Mullin.
Pledged money aside, Mullin says the Conservancy’s cash balance as of May 31, was $201,224.90.
“The project will continue to evolve and the City with support from the Conservancy will pursue both regional and state public dollars in addition to private support for Panoway on Wayzata Bay to complement any funding we may receive from bonding,” said Mullin.
Mullin says the Conservancy plans to have some community engagement events on or around Phase 1 construction completion this fall.
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Panoway (Lake Effect) Project Phase 1 is already underway – reconstructing Lake Street from Barry Avenue to Broadway Avenue, creating a multi-use park, and extending the Dakota Rail Regional Trail.
Panoway (Lake Effect) Project Phase 2 includes the restoration of the Section Foreman House, building a boardwalk along the lakefront, and restoring the Lake Minnetonka shoreline.
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Panoway (Lake Effect) Background
In February of 2011, the city council appointed a Lakefront Task Force to research and provide a recommendation for the future of the City’s lakefront.
The city council adopted the Report of the Wayzata Lakefront Taskforce in January of 2012.
In March of 2014, the city council adopted the Wayzata Lakefront Final Framework Report.
Wayzata selected Civitas as the design team for the Lake Effect Signature Park schematic design in September of 2015.
On December 15, 2016, the city council approved an agreement with the Lake Effect Conservancy as a part of Resolution 29-2016 which defined the scope of the Lake Effect Project and its next steps.
That agreement states that the Conservancy will actively raise Private and Philanthropic Funding.
This is a part of the Panoway on Wayzata Bay (Lake Effect) Project Phase 1.
Right now, part of it looks like a sandbox (as you can see on the WayzataLive.com web cam), but soon it will transform into something different.
A Plaza Park will replace a surface parking lot at Lake Street and Broadway Avenue.
The Panoway Project is currently in Phase 4B.
Courtesy City of Wayzata
The big question now – when will the project be complete and when will Lake Street open again?
“Full completion is later this summer,” said Wayzata City Manager Jeff Dahl. “We are hopeful, however, to open up the 600 block sidewalk and street to pedestrian and vehicular traffic over the next few weeks.”
The city allocated roughly $9 million toward the first phase of the project.
It recently used $25,000 of a contingency fund to speed up the project and pay overtime for construction workers.
“This will be primarily used to work longer days during the work week as well as on Saturdays,” said Dahl. “We hope that we will gain a week’s worth of work so we can get out of the way even quicker, so our business can get back up and running.”
“We are grateful for the patience and support of the local community and the City as we continue to build momentum on the Panoway Project,” said Jessie Houlihan, President of Stahl Construction.
He stated that restaurants can open for outdoor sit-down dining beginning on June 1.
There must be six feet between customers. Staff must wear masks. Max capacity is 50 people. Restaurant reservations are required.
“As people venture out and doors open, we hope everyone safely ventures out to support their local businesses,” said Houlihan. “When you do so, please stay mindful of pedestrian and directional signage indicating the available routes.”
Panoway on Wayzata Bay (Lake Effect) Background
In February of 2011, the city council appointed a Lakefront Task Force to research and provide a recommendation for the future of the City’s lakefront.
The city council adopted the Report of the Wayzata Lakefront Taskforce in January of 2012.
In March of 2014, the city council adopted the Wayzata Lakefront Final Framework Report.
Wayzata selected Civitas as the design team for the Lake Effect Signature Park schematic design in September of 2015.
On December 15, 2016, the city council approved an agreement with the Lake Effect Conservancy as a part of Resolution 29-2016 which defined the scope of the Lake Effect Project and its next steps.
That agreement states that the Conservancy will actively raise Private and Philanthropic Funding.
The Wayzata City Council will host a workshop and city council meeting Tuesday, April 7 via video conference. The workshop is scheduled to start at 5:45 p.m.
The video conference method is a precaution due to the concern about the spread of COVID-19.
Members of the public may submit comments or questions about items on the agenda in advance by various means:
The current Capital Improvement Plan (CIP) includes $200,000 for business impact mitigation tactics.
City staff met with business owners to discuss specific tactics including “open for business” signage as well as complimentary valet services for the downtown area.
But considering the COVID-19 outbreak, the city is looking at different ways to allocate the funds.
Executive orders from the governor, have greatly impacted how local businesses operate and have created a very quiet Lake Street.
The city is now looking at waiving or reducing liquor licenses, health licenses, and sidewalk café permit fees.
As the city runs a cost analysis and gathers more input from businesses, it is looking at two distinct groups of businesses – those whose front door is directly on the street closure and those whose front door is within a certain proximity of the street construction.
Due to the virus pandemic, the city cancelled a Lake Street construction groundbreaking event and is considering using those funds for a “Back in Business” community event once businesses fully open their doors again.
During the workshop, the city council will also be addressing business owner Stacy Carisch’s proposal to construct heated sidewalks in the public right-of-way along the 600 block of Lake Street East. Carisch owns the Marquee Building.
Carisch is proposing the city pay half of the approximated $415,000 project.
It wasn’t that long ago, late October in fact, that Wayzata city officials hosted the Minnesota Senate Capital Investment Committee to educate them on the importance of a boardwalk and ecological restoration along the shoreline of Lake Minnetonka as a part of Panoway’s (formerly Lake Effect) Phase II.
Minnesota Gov. Tim Walz ultimately recommended $10 million for a grant to the City of Wayzata.
The money is a part of a $300 million proposed investment in water quality and infrastructure projects which is part of the 2020 bonding bill.
Phase II includes the restoration of the Section Foreman House, building a boardwalk along the lakefront, and restoring the Lake Minnetonka shoreline.
Phase I is already underway – reconstructing Lake Street from Barry Avenue to Broadway Avenue, creating a multi-use park, and extending the Dakota Rail Regional Trail.
Of course, virtually everything in our lives have changed the past few months. The COVID-19 outbreak has shifted the way we live, the way we work. Stay home is the new norm.
But one thing hasn’t changed since late October; the bonding bill being discussed at the Capital is still alive.
You see, the hundreds of millions of dollars the state is spending to battle COVID-19 comes from a different pot.
“In government, there are different buckets of money concerning state finances,” said Rep. Jerry Hertaus (Greenfield) who represents Wayzata at the Capitol. “Revenues are going to be greatly and negatively affected resulting from COVID-19 resulting from shutting down so much of our private sector economy.”
But the bonding bill is a different story.
“Bonding is borrowed money aside from the general fund. In light of an economy needing to be kick started again, public spending is often helpful for the near term,” added Hertaus.
“The legislature is focused, at the moment, on addressing the emergency needs and overall situation with the COVID-19 pandemic,” said Sen. Paul Anderson (Plymouth) who has co-authored the Senate bill with Sen. David J. Osmek (Mound) seeking money for the Wayzata project. “Although we haven’t lost sight of the importance for passing a bonding bill this session, we do need to put the safety and well-being of Minnesotans ahead of those discussions at this time.”
Much like the state legislature, the immediate focus for the City of Wayzata is the community’s safety.
“All bonding-related efforts have ceased in order to give the needed attention to addressing public health and the COVID-19 pandemic,” said Wayzata City Manager Jeff Dahl.
As things unexpectedly changed in the past couple of months in Wayzata, the state and the nation as a whole, it’s impossible to predict what will happen between now and the end of the legislative session in mid-May.
But we do know that, for now, the $10 million for Panoway Project’s Phase II is still on the table.
“I would expect there to be a bonding bill this year,” said Sen. Hertaus. “The size of it is yet to be determined and the challenge will be to define those projects that would provide the greatest amount of benefit. Some would say separating the local needs from the wants. Whether or not the Lake Effect (Panoway) project in Wayzata is to be included is not certain. We will have to wait and see.”
“While the City’s focus right now is primarily on addressing the public health crisis, we are in full support of bonding dollars for Phase II if a bonding bill should move forward,” said Dahl.
“When the bonding bill comes back into the conversation in the weeks to come, rest assured we will be advocating strongly for the Lake Effect (Panoway) project to be included,” said Anderson.
Wayzata.com will continue to track the bonding bill progression and the status of the bills directly related to Wayzata’s project.
The Wayzata City Council will hold a special city council meeting on Thursday, Feb. 27 at 7 p.m.
The special city council meeting was primarily scheduled to review and potentially approve bids for Phase 1 of the Panoway (Lake Effect) project.
The city received a total of 18 bids for eight separate projects.
City staff is recommending the following awarding of contracts:
Kelleher Construction (Cast-in-Place Concrete) – $282,473.
Hollenback & Nelson, Inc. (Architectural Precast and Masonry) – $383,500.
Metro Manufacturing (Metal) – $236,917.
New Look Contracting Inc. (Earthwork and Utilities) – $2,839,000.
Curb Masters (Site Concrete) – $2,165,875.70.
Greenspace Companies Inc. (Landscaping and Irrigation) – $529,600.
City staff is recommending a rebid on both Electrical (target cost $1,287,250) and Asphalt Paving (target cost – $392,568).
The updated construction cost assuming electrical and asphalt stay within budget is $9,190,061 which is $140,271 (1.5%) over the budget of $9,049,790.
The city is planning a property/business owner open house March 2 and a groundbreaking ceremony April 18.
Stahl Construction was retained by the city to manage the bidding process.
At a Feb. 18 Wayzata City Council workshop, city officials reported an update on the first phase of the Panoway Project funding.
Courtesy Panoway Project/City of Wayzata
There is $200 thousand budgeted for mitigation efforts – to help local businesses during the Lake Street construction.
$100 thousand of that will be designated to a potential valet parking system to help get customers to and from restaurants, shops and other businesses.
The valet system would be available for a three-month period.
The hub of the valet system would be centered at the intersection of Lake Street and Broadway Avenue.
“That needs to be presented, assuming that we are generally supportive of that dollar amount, to the businesses to get their feedback,” said City Manager Jeff Dahl at the Feb. 18 workshop.
Increased communication, inventory, and additional risk insurance would make up the other $100 thousand for mitigation.
The initial phase includes Lake Street, Lake Street Plaza, and the Dakota Rail Regional Trail.
The Panoway Project is a part of the Capital Improvement Plan (CIP) as its own fund (officially named the Lakefront Improvement Fund).
Courtesy Panoway Project/City of Wayzata
Overall construction cost is projected at $9,049,790.
A re-bid for the construction work that is a part of Phase 1 of the Panoway Project went out January 30.
The bids were due Thursday, Feb. 20.
At the Nov. 19 city council meeting (Nov. 19), a professional services agreement with Stahl Constructionfor construction management services for Lake Effect’s first phase was approved.
The agreement includes $25,200 pre-construction services, approximately $100,000 for construction management, $50,000/month for construction services and $4,260/month for reimbursable expenses.
The expectation is that the Stahl expenses will decrease the overall project costs.
Lake Effect’s first phase essentially consists of Lake Street, Lake Street Plaza and the Dakota Rail Regional Trail Extension.
Stahl was brought in after bids for the first phase came in double the estimated costs earlier this year. The city council rejected those bids in July.
Stahl has been gathering feedback from Lake Street businesses and other stakeholders that will be impacted by the construction which is expected to last from March until September.
Meanwhile, Minnesota Gov. Tim Walz is recommending $10 million for a grant to the City of Wayzata for a boardwalk and for ecological restoration along the shoreline of Lake Minnetonka as a part of the Panoway Project’s Phase 2.
The money is a part of a $300 million proposed investment in water quality and infrastructure projects.
At a Feb. 18 Wayzata City Council workshop, city officials reported an update on the first phase of the Panoway Project funding.
Courtesy Panoway Project/City of Wayzata
There is $200 thousand budgeted for mitigation efforts – to help local businesses during the Lake Street construction.
$100 thousand of that will be designated to a potential valet parking system to help get customers to and from restaurants, shops and other businesses.
The valet system would be available for a three-month period.
The hub of the valet system would be centered at the intersection of Lake Street and Broadway Avenue.
“That needs to be presented, assuming that we are generally supportive of that dollar amount, to the businesses to get their feedback,” said City Manager Jeff Dahl at the Feb. 18 workshop.
Increased communication, inventory, and additional risk insurance would make up the other $100 thousand for mitigation.
The initial phase includes Lake Street, Lake Street Plaza, and the Dakota Rail Regional Trail.
The Panoway Project is a part of the Capital Improvement Plan (CIP) as its own fund (officially named the Lakefront Improvement Fund).
Courtesy Panoway Project/City of Wayzata
Overall construction cost is projected at $9,049,790.
A re-bid for the construction work that is a part of Phase 1 of the Panoway Project went out January 30.
At the Nov. 19 city council meeting (Nov. 19), a professional services agreement with Stahl Constructionfor construction management services for Lake Effect’s first phase was approved.
The agreement includes $25,200 pre-construction services, approximately $100,000 for construction management, $50,000/month for construction services and $4,260/month for reimbursable expenses.
The expectation is that the Stahl expenses will decrease the overall project costs.
Lake Effect’s first phase essentially consists of Lake Street, Lake Street Plaza and the Dakota Rail Regional Trail Extension.
Stahl was brought in after bids for the first phase came in double the estimated costs earlier this year. The city council rejected those bids in July.
Stahl has been gathering feedback from Lake Street businesses and other stakeholders that will be impacted by the construction which is expected to last from March until September.
Meanwhile, Minnesota Gov. Tim Walz is recommending $10 million for a grant to the City of Wayzata for a boardwalk and for ecological restoration along the shoreline of Lake Minnetonka as a part of the Panoway Project’s Phase 2.
The money is a part of a $300 million proposed investment in water quality and infrastructure projects.
On Tuesday, Wayzata city officials will give an update of the latest funding plan for the first phase of the Panoway Project (Lake Effect) which includes Lake Street, Lake Street Plaza, and the Dakota Rail Regional Trail, prior to consideration of bids.
At the Nov. 19 city council meeting (Nov. 19), a professional services agreement with Stahl Construction for construction management services for Lake Effect’s first phase was approved.
The agreement includes $25,200 pre-construction services, approximately $100,000 for construction management, $50,000/month for construction services and $4,260/month for reimbursable expenses.
The expectation is that the Stahl expenses will decrease the overall project costs.
Lake Effect’s first phase essentially consists of Lake Street, Lake Street Plaza and the Dakota Rail Regional Trail Extension.
Stahl was brought in after bids for the first phase came in double the estimated costs earlier this year. The city council rejected those bids in July.
Stahl has been gathering feedback from Lake Street businesses and other stakeholders that will be impacted by the construction which is expected to last from March until September.
Meanwhile, Minnesota Gov. Tim Walz is recommending $10 million for a grant to the City of Wayzata for a boardwalk and for ecological restoration along the shoreline of Lake Minnetonka as a part of the Panoway Project’s Phase 2.
The money is a part of a $300 million proposed investment in water quality and infrastructure projects.
Minnesota lawmakers went back to work on Tuesday. The new session is scheduled to go through mid-May. The bonding bill will be one of the big talking points.
Wayzata is like many communities asking for the state’s help with locally-based projects.
There will be plenty of back and forth in St. Paul in developing what the final bonding bill will comprise.
The Wayzata City Council will hold a special city council meeting on Thursday, Feb. 27.
City staff told Wayzata.com that the special city council meeting was primarily scheduled to review and potentially approve bids for Phase 1 of the Lake Effect (Panoway) project.
Stahl Construction was retained by the city to manage the bidding process.
“We’re going to plan on moving forward with the solicitation of bids on the 30th (of January),” said city manager Jeff Dahl at Tuesday’s city council workshop.
Previously, the re-bids for the project were scheduled to go out in mid-February.
The new January 30 bid solicitation date will afford more time for the bidding process.
At the Nov. 19 city council meeting (Nov. 19), a professional services agreement with Stahl Construction for construction management services for Lake Effect’s first phase was approved.
The agreement includes $25,200 pre-construction services, approximately $100,000 for construction management, $50,000/month for construction services and $4,260/month for reimbursable expenses.
The expectation is that the Stahl expenses will decrease the overall project costs.
Lake Effect’s first phase essentially consists of Lake Street, Lake Street Plaza and the Dakota Rail Regional Trail Extension.
Courtesy Lake Effect Conservancy/City of Wayzata
Stahl was brought in after bids for the first phase came in double the estimated costs earlier this year. The city council rejected those bids in July.
“We have targeted a construction open house at the end of February,” said Stahl Construction President Jessie Houlihan.
Stahl has been gathering feedback from Lake Street businesses and other stakeholders that will be impacted by the construction which is expected to last from March until September.
“Get in, get out and do whatever it takes to get it done as quickly as possible,” said Gianni’s owner Terri Huml. “The thing that concerns me the most is that intersection (Lake Street & Broadway Avenue). That’s going to be closed during Mother’s Day and Easter.”
Meanwhile, Minnesota Gov. Tim Walz is recommending $10 million for a grant to the City of Wayzata for a boardwalk and for ecological restoration along the shoreline of Lake Minnetonka as a part of the Lake Effect project’s Phase 2.
The money is a part of a $300 million proposed investment in water quality and infrastructure projects.
Stahl Construction, the company authorized to rebid Phase I of the Panoway construction project, will summarize the feedback it received recently from Lake Street businesses.
The agreement includes $25,200 pre-construction services, approximately $100,000 for construction management, $50,000/month for construction services and $4,260/month for reimbursable expenses.
The city stated these costs will be paid out of the Lake Effect Fund and were previously unplanned.
The expectation is that the Stahl expenses will decrease the overall project costs.
Lake Effect’s first phase essentially consists of Lake Street, Lake Street Plaza and the Dakota Rail Regional Trail Extension.
Stahl was brought in after bids for the first phase came in double the estimated costs earlier this year. City council rejected those bids in July.
Courtesy City of Wayzata/WCTV
On Tuesday, Stahl and city staff will discuss valet parking, construction work during off hours and increased signage.
In addition to discussing the construction project, the city council will talk about the marketing and communications plan.
According to the city council workshop packet, the marketing and communications plan will cost $100,000. The city will pay for $70,000 and the Lake Effect Conservancy will pay for $30,000.
Goff Public, True Voice Communications and Fuzzy Duck created a proposal for the work.
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