Rachel Contracting, Minneapolis, submitted the low bid for demolishing some of the buildings and a city parking lot where a new Mower County Jail and Justice Center will be built.

The firm was awarded a contract at Monday night’s regular meeting of the Austin City Council.

The city of Austin has agreed in a development agreement to make available two city blocks (Fourth to Second Avenues Northeast, First to Second Streets Northeast) to the county for construction of a two-story 128-bed jail and justice center in downtown Austin.

The current development agreement calls for the property to be cleared and ready for construction of the new facilities by Dec. 31.

Also Monday night, the Austin City Council awarded a contract to low-bidder VCI Environmental, Lakeland, for abatement of the same properties prior to their demolishment.

The bids ranged from VCI Environmental’s low bid of $57,265 to Dennis Envionmental’s bid of $102,400.

Four abatement bids were received, according to Steven Lang, assistant city engineer, who explained the bids to the Council Members.

The city received seven bids for the demolishment work. The bids ranged from the low of $104,863 to a high of $224,900.

The project will involve the demolition of six buildings and one city parking lot, including the former Usem’s Inc. auto dealership (more recently an Austin Medical Center – Mayo Health System storage building), Showgirls Saloon, Thirsty’s Bar, Farmers Insurance, Beltone and Culligan businesses.

Missing from the list are Steve’s Pizza, Anytime Fitness and the Palacio Bar and apartments building.

Negotiations continue for the properties.

Both the demolishment and abatement work will be funded from the city’s building fund, according to Lang.

Craig Hoium, community planning director, explained the renewal of the city’s floodplain management plan and progress in its implementation.

Prior to Monday night’s work session, the mayor and Council Members toured a downtown floodplain project site.

In other action Monday, the Austin City Council:

— Set a public hearing for 5:30 p.m. Nov. 3 for street assessments.

— Granted the Austin Planning and Zoning department to authority to contact property owners for the removal of junk and/or illegally stored vehicles at: 904 Ninth Avenue Southwest, 408 Second Street Southeast, 1212 Fourth Avenue Southeast and 1312 Ninth Avenue Northwest.

— Acknowledged completion of a development agreement with Wal-Mart and release of a letter of credit to the corporation after public infrastructure at the new store along 18th Avenue Northwest was completed. The work included signal lights, public streets, trails and sanitary and storm sewers. Mower County and Austin Utilities must also approve the infrastructure work.

— Approved change orders for a wastewater treatment plant industrial digester project. Bids were awarded to Magney Construction for the $3.6-million project on the industrial side of the WWTP, according to Lange. The project will be 100 percent paid by Hormel Foods Corporation and involves the rehabilitation of the two digesters, aeration tank and piping as well as controls. The work will conclude in the 2009 construction season. Hormel Foods Corporation gave its approval to the change orders.

— Approved engineering services for a new Cedar River pedestrian bridge adjacent to the Roosevelt (Fourth Street Southeast) bridge over the river. According to Lange, the city received a federal grant to pay for 80 percent of the construction costs. Bolton & Menk, Inc. submitted the low bid of $34,750 to perform the engineering and design of the pedestrian bridge.