Review Quotes for Renovation of Old Town Hall

The purpose of this case it to determine if the Renovation of Old Town Hall is feasible.

The EDA reviewed the framework of a Town Hall Renovation and Lease with Small Town Girl Boutique. The EDA was generally supportive of the concept which included estimated renovation cost approaching $50,000 and a breakeven point of about 5 years.  On June 22, 2021, the City Council supported the EDA recommendation to obtain quotes and to determine if the project was feasible.

Staff has been working diligently to obtain quotes for this project.  Contractors are very busy right not and materials and labor are very expensive. Most contractors were too busy to take on the extra work at this time.  Staff solicited quotes from six local contractors but only received two quotes:

1) Quote 1 (rough quote for ballpark price)                      $111,900
2) Quote 2 (Complete Quote)                                          $139,270

Both quotes far exceed the preliminary budget of $50,000. The low quote is more than double the RCP estimate.  Staff is concerned that the source of the original cost estimate was understated and that the current contactor environment is compounding timing of this project is leading to inflated costs. Staff has reached out the prospective tenant and asked if waiting for a better rate environment would be acceptable. The prospective tenant indicated that if the renovation does not occur very soon she will likely look for another location.

Staff is looking for direction.

N/A

Based on the quotes received staff is not comfortable bringing quotes to the City Council for review without an EDA recommendation to do so.  Based on the lowest quote (certainly subject to change) the estimated original breakeven point goes from 5 to 10+ years.   The only complete quote is from Quote 2, the quote from Quote 1 is a rough estimate and would need to be refined if the EDA were to consider recommending awarding a quote.  Discussion relating to a acceptable budget amount or course of action would be welcomed.  The EDA will need to review the information presented and ultimately come to a recommendation on how to proceed in relation to the Renovation of the Old Town Hall.

If it is determined that now is not the best time to renovate the Old Town Hall the City will not have a tenant with sincere interest in the building.

Alternatives:

Renovation

1. EDA recommend to the City Council to put the Old Town Hall Restoration Project on hold until the rate environment improves. 
2. EDA recommend to the City Council to get complete bids and to consider moving forward with the Town Hall Renovation with the increase project costs. 
3. Something else

Funding for the renovation could be provided by the City EDA Fund Balance or potentially the Anoka County HRA Fund.

Based on Discussion

1) Motion to have EDA recommend to the City Council to put the Old Town Hall Restoration Project on hold until the rate environment improves. 

2) Motion to have EDA recommend to the City Council to get complete bids and to consider moving forward with the Town Hall Renovation with the increased project costs.

3) Something else