Regular 5.
Regular City Council Meeting
- Meeting Date:
- 12/14/2009
- TITLE
- Public Hearing on Downtown Library Facility Project Options
- PRESENTED BY:
- Mary Murphrey, Library
- Department:
- Library
Presentation:
PROBLEM/ISSUE STATEMENT
On November 23, 2009, City Council delayed action on a new Library in order to allow more time to explore options and hold a public hearing on the three options for a downtown Library facility presented to the City Council at its November 2, 2009 Work Session.
At its October 8, 2009, meeting, the Library Board of Trustees approved recommending to the City Council that the Library be moved to an expanded and renovated Gainan’s building, with a project cost of $14,749,000. Construction would be funded through issuance of federal ARRA Recovery Zone bonds at an effective rate estimated to be 3.7%. This option would permit the current Library facility and parking lots to be sold for development.
Staff also presented to the Council at its November 2 Work Session an option to renovate the existing Library facility, with a project cost of $15,000,000. Construction again would be funded through issuance of federal ARRA Recovery Zone bonds at an effective rate estimated to be 3.7%. Library unobligated cash reserves of $1,000,000 would pay costs to move Library operations to leased operating and storage space during construction and to move back to the renovated building after its completion. This option would not permit the Library facility and parking lots to be sold for development. It also would require leasing of space that the Library cannot use in the current downtown facility to an appropriate tenant.
Staff also presented to the Council at its November 2 Work Session an option to demolish the existing Library facility and build a new one on the site already owned, with a project cost of $17,340,000, including $500,000 in demolition costs. Construction would be funded through issuance of federal ARRA Recovery Zone bonds at an effective rate estimated to be 3.7%. Library unobligated cash reserves of $1,000,000 would pay costs to move Library operations to leased operating and storage space during construction and to move back to the renovated building after its completion. This option would not permit the Library facility and parking lots to be sold for development.
At its October 8, 2009, meeting, the Library Board of Trustees approved recommending to the City Council that the Library be moved to an expanded and renovated Gainan’s building, with a project cost of $14,749,000. Construction would be funded through issuance of federal ARRA Recovery Zone bonds at an effective rate estimated to be 3.7%. This option would permit the current Library facility and parking lots to be sold for development.
Staff also presented to the Council at its November 2 Work Session an option to renovate the existing Library facility, with a project cost of $15,000,000. Construction again would be funded through issuance of federal ARRA Recovery Zone bonds at an effective rate estimated to be 3.7%. Library unobligated cash reserves of $1,000,000 would pay costs to move Library operations to leased operating and storage space during construction and to move back to the renovated building after its completion. This option would not permit the Library facility and parking lots to be sold for development. It also would require leasing of space that the Library cannot use in the current downtown facility to an appropriate tenant.
Staff also presented to the Council at its November 2 Work Session an option to demolish the existing Library facility and build a new one on the site already owned, with a project cost of $17,340,000, including $500,000 in demolition costs. Construction would be funded through issuance of federal ARRA Recovery Zone bonds at an effective rate estimated to be 3.7%. Library unobligated cash reserves of $1,000,000 would pay costs to move Library operations to leased operating and storage space during construction and to move back to the renovated building after its completion. This option would not permit the Library facility and parking lots to be sold for development.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may:
- Approve Resolution 1, agreeing with the Library Board recommendation to hold a March 2010 election on the proposed move of the Library to an expanded and renovated Gainan's building at an estimated cost of $14,479,000; orApprove a March 2009 election on the proposed renovation of the existing Library facility at an estimated cost of $15,000,000; or
- Approve Resolution 2 to hold a March 2010 election on the proposed renovation of the existing Library at an estimated cost of $15,000,000.; or
- Approve Resolution 3 to hold a March 2010 election to demolish the current Library and build a new Library on the existing site at an estimated cost of $17,340,000; or
- Approve another alternative; or
- Take no action.
FINANCIAL IMPACT
Total cost of Option 1 over the 20-year life of the debt service of bonds at 3.7% and annual contract for deed payments is estimated to be $22,100,000. This takes into account use of $1,000,000 in Library unobligated cash reserves to reduce the project cost, but does not take into account the revenue that would be realized from sale of the existing building and parking lots, which is currently unknown.
Total cost of Option 2 over the 20-year life of the debt service of bonds at 3.7% is estimated to be $22,900,000. This takes into account use of $1,000,000 in Library unobligated cash reserves to pay for temporary leased space and moving costs during construction.
Total cost of Option 3 over the 20-year life of the debt service of bonds at 3.7% is estimated to be $26,200,000. This takes into account use of $1,000,000 in Library unobligated cash reserves to pay for temporary leased space and moving costs during construction.
Total cost of Option 2 over the 20-year life of the debt service of bonds at 3.7% is estimated to be $22,900,000. This takes into account use of $1,000,000 in Library unobligated cash reserves to pay for temporary leased space and moving costs during construction.
Total cost of Option 3 over the 20-year life of the debt service of bonds at 3.7% is estimated to be $26,200,000. This takes into account use of $1,000,000 in Library unobligated cash reserves to pay for temporary leased space and moving costs during construction.
BACKGROUND
The Library Board toured the Gainan's facility in late 2008 and subsequently directed staff to evaluate the feasibility of the Library moving into the space when Gainan's vacates it in approximately two years. The Library contracted with CTA Architects to conduct a feasibility study, conceptual design and cost estimates, which were presented to the Library Board at its meeting on May 18, 2009. At its October 8, 2009, meeting, the Library Board of Trustees approved recommending to the City Council that the Library be moved to an expanded and renovated Gainan's building.
This recommendation was compatible with the City's approved CIP for the past several years, which currently includes $13,383,684 for upgrading, remodeling, expanding or replacing the current facility in fiscal year (FY) 2012. To this number, an estimated additional cost of $1,250,000 for renovation of the 4th floor must be added, for a total project cost of $14,633,684. This cost does not include any funding for moving to leased space and back after the renovation. These estimates are based upon a study for renovating the current Library facility that the City Council contracted for with A&E Architects, which completed it in February 2004.
The 2004 study was in response to the defeat of a general obligation bond election for a new downtown Library facility in 2002. Prior to the election the City Council rejected the six recommended sites in the vicinity of the current Library facility and directed staff to secure a buy/sell agreement between 4th and 3rd Avenues North and North 25th and 26th Streets, which was accomplished. The bond issue for the total project costs including site acquisition was estimated to be $12,000,000. Immediately prior to the election, the City Council rejected the buy/sell agreement, so there was no site identified at the time of the election.
This recommendation was compatible with the City's approved CIP for the past several years, which currently includes $13,383,684 for upgrading, remodeling, expanding or replacing the current facility in fiscal year (FY) 2012. To this number, an estimated additional cost of $1,250,000 for renovation of the 4th floor must be added, for a total project cost of $14,633,684. This cost does not include any funding for moving to leased space and back after the renovation. These estimates are based upon a study for renovating the current Library facility that the City Council contracted for with A&E Architects, which completed it in February 2004.
The 2004 study was in response to the defeat of a general obligation bond election for a new downtown Library facility in 2002. Prior to the election the City Council rejected the six recommended sites in the vicinity of the current Library facility and directed staff to secure a buy/sell agreement between 4th and 3rd Avenues North and North 25th and 26th Streets, which was accomplished. The bond issue for the total project costs including site acquisition was estimated to be $12,000,000. Immediately prior to the election, the City Council rejected the buy/sell agreement, so there was no site identified at the time of the election.
STAKEHOLDERS
A forward-thinking approach to improving the Downtown Library was one of the strategies developed by the Council in response to the Citizen Survey and Community Conversations. The Library Board of Trustees recommends the Gainan's project as the lowest-cost option to meet the demand for an improved downtown library building as expressed by the Citizen Survey, Community Conversations and the current Library Strategic Planning process.
CONSISTENCY WITH ADOPTED POLICIES OR PLANS
As mentioned earlier, the CIP currently calls for remodeling of the Library in FY 2012. An expedited election schedule is being requested because ARRA bonds must be issued no later than December 31, 2010. It is anticipated that construction would begin in December 2011 and conclude in December 2012. The recommended relocation of the Library to the former Gainan's site would free the current, valuable location for sale, which has been a long-desired goal of the City Council.