The Waterfront - Consider Schematic Design Process for Determining the Community Building Cost 

Background
As part of the city's community park system planning, a water-centric park known as The Waterfront has been envisioned for more than a decade in Ramsey's downtown. In 2023, the mass grading for the park was completed as part of the preparation of pad-ready development of the entire northwest quadrant of The COR.  Presently, the city is Advertising for Bids for a trail that will circumnavigate the 7-acre pond and connect the park to the adjoining residential areas and larger community.  Throughout and during the last 10 years of planning for the park, city leaders have simultaneously heard a common refrain from many residents that they desire more family destinations, more restaurants, a 'splash pad' and a community center. These resident propositions have most recently coalesced as a proposed project that would address those aspirations.

Over the last year, the Park & Recreation Commission performed a detailed analysis of how a park building could best serve the community— this process resulted in a concept for an approximate 36,000 gross square foot two-story building, consisting of mass timber construction; and including dining, balcony, patio and beer garden, room rental and fitness areas, large indoor play area, and banquet space.  The proposed structure with indoor and outdoor program areas is essentially a modern community center, with outdoor water-play elements replacing a traditional public swimming pool and gym.

At the City Council work session on April 9th, the Council reviewed the overall concept plan for the community building and also examined details and operational pro forma on a public private partnership that would provide for the preponderance of the operating costs for the food and beverage aspects of the building in the first years, with a transition to a partnership that projected revenue in subsequent years, all the while by providing services to residents. Other operational and maintenance costs for the building and grounds were highlighted, but additional revenue relative to the indoor playground and climbing wall were not included.  As general information, attached is the contract between Morrissey Hospitality and the City of Coon Rapids.  If Ramsey were to move forward with the project, we would craft a management contract that fits our needs.

The work session discussion included 'high-level' construction cost estimates of $1M to $3M for the water play and other outdoor site development, and estimates of $18M to $20M for the proposed 36,000 square foot community building—and perhaps another $2M for fixtures, furnishings and equipment.  The discussion continued with the acknowledgment that to fully consider this project, two things should occur; first, that accurate cost estimates must be determined, and only thereafter an advisory question can be formulated for inclusion on the November General Election ballot, such that residents would have an effective voice in supporting the funding of the proposed project.

Purpose
This case seeks authorization to proceed to Schematic Design for the community building, as described at the April 9th work session by Gregory Houck, Principal Architect with Cuningham. The ballot question language would be considered by Council, after the 8-week Schematic Design process concludes, resulting in an accurate building construction cost estimate (+/- 5%).

A Public Hearing was conducted in December 2023 on the city-wide Capital Improvement Plan, and park improvements in Ramsey's downtown were identified as a proposed 2024 project.  Additionally, if an advisory question is placed on the November General Election Ballot, the city would prepare information on the project to include amenities and benefits as well as financial impact on the property tax levy.  This would be disseminated through the website, social media, QCTV, handouts at events and the Ramsey Resident.

Observations
Following the work session consensus to proceed to develop more accurate cost estimates (Schematic Design), the attached proposal was received by Cuningham that addresses the scope of work and the approximate 8-week time-frame (such that Council can consider a ballot question by an August 2024 deadline). This proposal describes that the "Architect builds on the concept design services and establishes a design vision: the parameters and principles that will guide the Project forward in alignment with Owner’s brand and mission. Tasks during this phase include: program development, circulation diagrams, net and gross area calculations, initial site design, building character studies, material research, and coordination with design team consultants as necessary, and Owner progress meetings (weekly)."

This would result in a preliminary building model which includes preliminary building plans, preliminary building sections, preliminary building elevations, as well as the required mechanical, electrical, plumbing, and structural engineering, for a stipulated sum of $267,500. 

Alternatives
Alternatives include:
1) Not proceeding to Schematic Design at this time.
2) Proceeding with Schematic Design.
3) Some other unspecified option.

Staff recommends proceeding with Schematic Design, which will be valuable information even if the Council chooses not to move forward with The Waterfront community building within the next year(s).

Funding for the preliminary design and identifying the probable costs (Schematic Design) for The Waterfront community building would be appropriate from the Park Trust Fund, which has a present balance of approximately $7.4M.

Staff recommends that the Council authorize the Schematic Design phase for the proposed Waterfront community building to determine probable construction costs for this prominent and valuable investment for the community.

Based upon discussion; motion to authorize the City Administrator to enter into an agreement with Cuningham for Schematic Design services for the proposed Waterfront community building, at a not-to-exceed cost of $270,000 from the Park Trust Fund.