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HomeMy WebLinkAbout03.18.24 Work Session PacketAGENDA Council Work Session Meeting 5:00 PM - Monday, March 18, 2024 Farmington City Hall, Conf Room 170 Page 1.CALL TO ORDER 2.APPROVE AGENDA 3.DISCUSSION ITEMS 3.1. Rambling River Center Renovations Provide direction regarding moving forward with the Rambling River Center as a single-phase project and issuing tax abatement bonds to pay for the unfunded portion. Agenda Item: Rambling River Center Renovations - Pdf 2 - 4 4.CITY COUNCIL COMMITTEE UPDATE 5.CITY ADMINISTRATOR UPDATE 6.ADJOURN Page 1 of 4 COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kellee Omlid, Parks & Recreation Director Department: Parks & Recreation Subject: Rambling River Center Renovations Meeting: Council Work Session - Mar 18 2024 INTRODUCTION: The facility master plan of the Rambling River Center (RRC) was approved by City Council on January 16, 2024. The City utilized the services of JLG Architects to develop the facility master plan. The cost estimate for all proposed renovation work, as outlined in the planning study, is $1,814,500. DISCUSSION: At the January 16 meeting, City Council asked about the timing of phases and completing the project as a single phase. If funds are available, it would be advantageous and more ideal to design, develop, and bid as a single project. The benefits include potential reduction in costs of between 10-15%, developing one bid package, and working with one contractor for the entire project. The project phasing costs are as follows: PHASE 1A: $1,085,000 PHASE 1B: $ 188,500 PHASE 2: $ 91,000 PHASE 3: $ 385,000 PHASE 4: $ 65,000 Total Budget All Phases: $1,814,500 The phasing plan is attached. Based on the feedback at the January 16 City Council meeting and subsequent discussions with City Staff, JLG Architects submitted a proposal to complete the full scope of proposed renovation work as a single-phase project. This is a high-level and preliminary cost estimate that will need to be confirmed as the design moves forward. JLG Architects will confirm cost information three times before bidding the project, including during schematic design, design development, and construction documents. This provides Staff and JLG Architects several opportunities to adjust to save money and keep the project within budget. Page 2 of 4 In condition facility the plan, facility the master improvements proposed the to addition in assessment of the RRC completed by Kraus-Anderson should be considered, evaluated, and incorporated into the construction documents for bidding. Specifically, exterior enclosures (control joints, tuckpointing, door and window replacements), HVAC equipment, and switchgear (electrical) replacement should be included in the overall project. There is $740,000 remaining in the FY 2023 Community Project Funding grant and the $50,000 donation from Minnwest Bank for the construction of the outdoor patio. As a reminder, $3,000 was paid to Dakota County Community Development Agency (CDA) to complete the Environmental Review and $7,000 paid to JLG Architects to develop the facility master plan. Staff identified one potential and most viable funding source to pay for the unfunded portion if the project is completed all at once. This is issuing tax abatement bonds. According to Northland Securities, tax abatement bonds are certainly a tool they see utilized for community center type projects. Northland Securities provided the following information regarding tax abatement bonds:  A basic bond structure is developed based on the project.  The City identifies parcels within the city whose City portion of taxes equal or exceed the principal amount of bonds based on the preliminary structure.  The City publishes notice of a public hearing to consider tax abatement, with the parcel identification numbers (PIDs) included (no names or other identifying information is included other than the PIDs).  If the City Council approves the Tax Abatement, the City can issue G.O. Tax Abatement Bonds.  The City annually certifies an Abatement Levy for the principal portion of the debt service and a Debt Service Levy for the interest portion, both are spread against all taxable parcels within the city, just as is the general operating levy or other debt service levies.  Nothing changes with the parcels identified for the abatement; for example, there is no indication of abatement, etc. on the tax statement. The parcel identification is simply a calculation of taxes that could be abated. At the Work Session, Staff will present the estimated tax impacts for properties for issuing tax abatement bonds to pay for the unfunded portion of the project. BUDGET IMPACT: To be determined based on proceeding as a single-phase project with or without Kraus-Anderson facility condition assessment items, multiple-phases projects over several years, interest rate for bonds, and bid results for the proposed project improvements. ACTION REQUESTED: Provide direction regarding moving forward with the Rambling River Center as a single-phase project and issuing tax abatement bonds to pay for the unfunded portion. ATTACHMENTS: Project Phasing and Costs Page 3 of 4 JLG 23148 | © 2024 JLG ARCHITECTSRAMBLING RIVER CENTER PLANNING 17 COSTS BY PHASE PHASE 1A Demolition cost $50,000 Construction cost $725,000 Design contingency (10%) $77,500 Construction contingency (10%) $77,500 Soft costs (20%) $155,000 Total Budget Phase 1A $1,085,000 PHASE 1B (EXTERIOR WORK) Demolition cost $5,000 Construction cost $140,000 Design contingency (10%) $14,500 Construction contingency (10%) $14,500 Soft costs (10%) $14,500 Lower due to exterior work Total Budget Phase 1B $188,500 PHASE 2 Demolition cost $10,000 Construction cost $55,000 Design contingency (10%) $6,500 Construction contingency (10%) $6,500 Soft costs (20%) $13,000 Total Budget Phase 2 $91,000 PHASE 3 Demolition cost $25,000 Construction cost $250,000 Design contingency (10%) $27,500 Construction contingency (10%) $27,500 Soft costs (20%) $55,000 Total Budget Phase 3 $385,000 PHASE 4 Demolition cost $8,000 Construction cost $42,000 Design contingency (10%) $5,000 Construction contingency (10%) $5,000 Soft costs (10%) $5,000 Lower due to limited work Total Budget Phase 4 $65,000 Total Budget All Phases $1,814,500 PROJECT PHASING AND COSTS Multi-purpose Room 1032 sf 68 occupants (tables / chairs) 147 (chairs only) Game Room 573 sf 28 occupants Work Room 124 sf 1 occupant 2ǕFH 200 sf 2 occupants Board Room 310 sf 10 occupants0HFK 348 sf Men Women Library 376 sf 7 occupants Coats 2ǕFH 102 sf 1 occupant Lobby 528 sf 1 occupant Fitness 1046 sf 20 occupants Toilet Craft Room 755 sf 37 occupants Train Room 588 sf 5 occupants .LWFKHQ 185 sf 3 occupants Men Women Toilet Storage Storage Storage Storage Banquet Room 2,153 sf 120 occupants (tables / chairs) 143 (chairs only) Entry Arbor Patio Seating 5HFUHDWLRQODZQ 6FUHHQHOHPHQW Trellis Garage Phase 4 Phase 3 Phase 1A Phase 1A Phase 2 Phase 1A AAAAAA Phase 1B - Landscaping Pa g e 4 o f 4