Consideration and Approval of Consulting Contract:  Innovation Mesa Business Accelerator and Emergency Operations Center.

1) Award the Architectural and Engineering Design Professional Services Contract to APMI, Inc. of Scottsdale, Arizona in an amount not to exceed $604,071, including a $40,000 contract allowance and a 775 calendar day contract period; and 
 2) Approve Change Order Authority to the City Manager in the amount of $55,000 (10% of contract amount excluding allowance) for unanticipated or additional items of work; and
3) Authorize the City Manager to execute the necessary documents.

• Provide for Architectural and Engineering design services for the Innovation Mesa Business Accelerator – Emergency Operations Center project

• The total project cost is estimated to be $7,762,500
• Funding is broken down as follows:
  • $4,000,000 – Federal EDA Grant
  • $2,662,500 – City match via Bond Capacity
  • $1,100,000 – Northern Arizona University

• Retain, expand and diversify economic base
• Effective governance

• Council approved an Economic Development Administration grant on November 6,  2012 for the Innovation Mesa Business Accelerator

• Approve the award as recommended.
• Direct staff to continue negotiations with APMI, Inc. to reduce their scope and fee.
• Reject approval of the award and direct staff to re-advertise the Request for Statements of Qualifications.  This would have the effect of delaying the project for approximately 3 months.
• Reject approval of the award.  This option would have the effect of the City not proceeding with design and construction of the project and forfeiting the EDA Grant.

The Science and Technology Park was conceived in 2003, and during the 2004 election, bonds in the amount of $61.2 million were approved by the voters to advance the project. The bonds are paid with revenue from the project and not property tax revenue. McMillan Mesa was chosen as an ideal site due to the existing, nearby USGS Campus. Through investigation, a critical part of the science park would be a business incubator for entrepreneurs and business start-ups. An overall science park master plan was developed around 2005.
 
The master plan included a remodeled USGS Campus, a 10,000 square foot business incubator, and a science park on nine acres of adjacent land. The business incubator (Phase 1) was constructed in 2008 through a U.S. Department of Commerce Economic Development Administration (EDA) grant and is currently operated by Northern Arizona Center for Entrepreneurship and Technology (NACET), a separate private non-profit.
 
Innovation Mesa  Business Accelerator and Emergency Operations Center is intended to be the first of three buildings located adjacent to the USGS Campus and the business incubator (Phase 1), and will include a 25,000 square foot building featuring wet and dry labs/office space (80%) and light manufacturing space (20%), a conference room/alternate secondary EOC, and server facilities. The primary purpose of Phase 2 is to provide space for Tier 2 companies and graduates of NACET.  The facility will also grow business start-ups and advance entrepreneurship and economic gardening programs within the region.  In addition it will help to retain and expand existing businesses while creating 300 jobs. The building will feature a secondary or alternate EOC (as part of the conference room).  This alternate EOC will be used should disaster related circumstances arise and warrant the need by either City and/or County personnel. It is not the intent for the City to act as developer for the remaining 50,000 square feet of this campus. Rather, upon completion of Phase 2, an evaluation will be done with Council to determine the disposition of the remaining development.

APMI, Inc. was selected by a four-member evaluation committee as the best qualified service provider for the Innovation Mesa Business Accelerator- Emergency Operation Center Project pursuant to the evaluation and ranking process per A.R.S. 34-603 and modified by H.B. 2579.  All sub-consultants chosen by AMPI for their team are located and operate their businesses in Flagstaff.

 
APMI, Inc. will prepare contract bid-ready plans and specifications and provide construction and post-construction services in accordance with the attached Scope of Services.  Design completion is anticipated by April 2014, award of the construction contract by May 2014 and Certificate of Occupancy by May 2015.

Project expenditures will be funded as follows:
- EDA Grant share of $4,000,000
- City Bond Capacity of $2,662,500 repaid through tenant leases in the facility
- Northern Arizona University contribution of $1,100,000
 
The project is currently funded in the amount of $1,074,000 in account No. 404-2439-691 for FY 14. 
 

Innovation Mesa Business Accelerator and Emergency Operations Center project will provide "soft landing" space for Tier 2 companies and graduates exiting NACET’s incubation program, and allow new companies wishing to enter the program to have space in Phase 1. This project is intended to create over 300 jobs and $20 million in private investment within the first three years of operation. The addition of wet and dry laboratories in this next phase is critical to expand and grow existing companies in the region as there are no other, known existing lab space for them to locate to. This project will allow our community to retain local businesses that may have otherwise left the region to seek these types of services and facilities.

Specifically, this project will benefit four groups:

• High technology and bioscience startups will result from technology transfer and commercialization of research conducted by NAU faculty and students
• Local entrepreneurs will become more competitive in the global market through the technical and business advice from NACET staff and their statewide mentors group
• Existing firms and new firms will locate facilities in Northern Arizona to take advantage of the Innovation Mesa’s facilities and to be near growing industry clusters. However, this facility is unlikely to compete with existing commercial facilities due to small lease areas, non-traditional finance terms, and filling a lack of lab space.
• Native American culturally specific businesses will be encouraged to expand their service areas through guidance from and access to NACET staff and business leaders serving on NACET's Advisory Committee

 
Lastly, the purpose of the project is twofold: It will enable the City of Flagstaff to create an environment to recapture job losses by providing a facility for incubator graduates to expand and grow their businesses.  Secondly, it provides other agencies a secondary emergency operations center for first responders to efficiently deliver vital services to communities and tribal nations during natural disasters. The facility helps build economic resiliency through long term economic stability in the community.

Collaborate - This project is a shared vision with state, local, and private entities. This collaborative partnership involves the City of Flagstaff, Arizona Commerce Authority, Northern Arizona University, Economic Collaborative of Northern Arizona, Northern Arizona Council of Governments, and Northern Arizona Center for Entrepreneurship and Technology. This collaborative partnership has already shown a proven ability to work together to advance the economic needs of the region.
 
Staff presented the project to the Northern Arizona Council of Governments in the spring of 2012 and received full support of the project. On June 12, 2012 staff presented the project to Council outlining the EDA grant and business pro forma.  In addition, on August 30, 2012, staff conducted a public meeting as part of the Public Participation Plan associated with a Rezoning Application for Innovation Mesa - Phase 2.