|
Item 4.
|
| City Council Work Session | |
| Date: | 08/16/2021 |
| Title: | Stillwater Building Updates |
| Presented by: | Iverson Jessica |
| Department: | City Hall Administration |
| Presentation: | Yes |
RECOMMENDATION
The purpose of this presentation is to provide the due diligence investigative report findings to Council. The presentation will also further discuss the financing of the project, project costs, background, and timeline.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
In August 2019, the City of Billings issued a Request for Proposals (RFP) for law and justice/city hall facilities to accommodate the City's current and future facility needs. Several proposals were received and the RFP committee selected the Stillwater Building located at 316 N 26th Street based on the suitability of the building to meet the City's needs for the foreseeable future (50+ years). Once the Stillwater Building was selected, the city administrator created a negotiation committee that included council members, Boyette, Purinton, Joy, Shaw, Neese, as well as Iffland, Zoeller, Iverson and architect Randy Hafer. The City entered into a negotiation and due diligence phase, ultimately resulting in negotiating the proposed buy-sell agreement for the City to purchase the entire building in its current state for $17 Million.
At the July 13, 2021 City Council meeting, Council voted to approve entering into the contingent buy-sell agreement which initiated the investigation phase. City staff employed several subject-matter experts to conduct investigations and provide reports on the condition of the building's systems and components. An executive summary and the reports are attached to the memo. The reports indicate that the building is generally in good condition for its age with some aging components and systems that will need replacement within the next 1-10 years.
At the July 13, 2021 City Council meeting, Council voted to approve entering into the contingent buy-sell agreement which initiated the investigation phase. City staff employed several subject-matter experts to conduct investigations and provide reports on the condition of the building's systems and components. An executive summary and the reports are attached to the memo. The reports indicate that the building is generally in good condition for its age with some aging components and systems that will need replacement within the next 1-10 years.
ALTERNATIVES
No action is needed at this time, however Council may provide further direction to staff based on the presented information.
FISCAL EFFECTS
The previously established estimated total project cost is $29,600,000 for the purchase of the building, design, and build-out.
The investigative findings indicate that there may be some formerly unanticipated expenses that could increase the total project cost and require additional capital expenses over the next several years.
The investigative findings indicate that there may be some formerly unanticipated expenses that could increase the total project cost and require additional capital expenses over the next several years.
SUMMARY
Please review the attached summary and reports to better understand the inspection findings. The final decision to remove contingencies and finalize the purchase of the Stillwater building is scheduled for the September 13, 2021 City Council meeting.