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HomeMy WebLinkAboutCRC-01-29-09CRC Meeting January 29, 2009 1 CARMEL REDEVELOPMENT COMMISSION Meeting, Thursday, January 29, 2009 President Ron Carter called the meeting to order at 6:37 p.m. Commission members Jeff Worrell, Bill Hammer, Carolyn Anker and Rick Sharp were present, constituting a quorum. Also present were Mayor Brainard, Karl Haas, Les Olds, Sherry Mielke, Andrea Stumpf and Matt Worthley. Others present: From Shiel Sexton Co.: Mike Anderson, Tony Eisenhut, Ryan Anderson From CSO Architects: Dan Moriarity, Brandon Bogan Others Present: Rick Osborn, Melanie Hayes, Darrell Norris The Pledge of Allegiance was said. Carmel City Center Bid Package #5 – Sloped Topping Slab Mr. Olds reported that bids were received at a previous CRC meeting. The Construction Manager has interviewed the low bidder and examined his proposal and has recommended the Commission award the contract to Lithko Contracting, Inc. in the amount of $436,000. The work should begin March 2009. Ms. Anker moved to award the contract for Parcel 5, Carmel City Center Phase I Sloped Topping Slab to the lowest responsive bidder, Lithko Contracting Inc., in the amount of $436,000. Seconded by Mr. Hammer and unanimously approved. Contract for Parcel #47 Duke Energy Mr. Olds reported the contract was for utility relocation and was within the established budget for CRC’s participation in the Parcel 47 project with Keystone Development Corporation. The contract is within the cost estimate prepared for overall utility relocation which was $165,000. The work can be completed within two weeks. The utility relocation work is not in relation to the relocation of the Peele House, although various overhead lines may have to be moved when the house is in transition. Discussion ensued regarding the logistics and determined route of the moving of the Peele House. Mr. Hammer moved to approve awarding the contract to Duke Energy for the utility relocation for Parcel 47 in the amount of $50,261. Seconded by Mr. Worrell and unanimously approved. Installment Purchase Contracts re: PAC Funding Mr. Haas stated that approval was given at a previous CRC meeting to establish a master loan program to help finance installment contracts for sellers for the CRC. In order to participate in that program, the sellers need to be approved by the Commission and then certified to the bank underwriting the master loan program, which is Regions Bank. The first set of contracts for which funding is available is $17.5 million. Mr. Olds and Mr. CRC Meeting January 29, 2009 2 Haas have made recommendations to the Commission with respect to the installment contracts that were approved totaling in the amount of $17.5 million. Mr. Worrell moved to authorize the President to enter into the Installment Purchase Contracts as identified, and authorize the President and Secretary to instruct Regions Bank as stated. Seconded by Mr. Hammer. Mr. Sharp moved to amend the motion to include “that the contract seller under each of those Installment Purchase Contracts is “Qualified Developer” and, as such, qualifies for a “Developer Loan” as part of the Master Loan Program established with Regions Bank.” Seconded by Mr. Worrell and passed unanimously. Mr. Sharp moved to approve the motion as amended. Seconded by Mr. Worrell and passed unanimously. Mr. Haas provided further detail of the Master Loan Program with Regions Bank and explained to obtain available funds, a number of conditions need to be met which include the Commission entering into an installment purchase contract and then making a motion that those installment contracts and that the developers and sellers for those contracts qualify for participation in the program. The program is set up so they are able to finance the improvements being made for the CRC with low interest rates. Adequate TIF revenues need to be maintained and resources on the part of the CRC so it is clear the contract payment will be made by the CRC. Performing Arts Center Alternates Mr. Sharp questioned Mr. Olds if the approval of the alternates affects the approval of the base bids. Mr. Olds explained the PAC Bid Package 5 – Interior Finishes was rebid and did not include any alternates. If certain alternates are approved, the base bid contract totals for Bid Package #5 will need to be modified including the stone flooring/carpet bids. The total for the package is $1,122,695.00. Mr. Haas stated approving the base bids at this time worked from both a legal and procedural standpoint. Mr. Olds stated the Commission could approve the bids at this time, subject to the final approval of the ad-alternates. Mr. Sharp suggested establishing a base line by approving the base bids with the Construction Manager responsible for tracking the changes in the bids as alternates are approved. Mr. Sharp moved to accept the bids as submitted and seconded by Mr. Hammer. Mr. Carter read the bid totals for construction contracts from Bid Package #5 rebid totaling $1,122,695.00 including: - Decorative Stone from Santa Rosa Tile in the amount of $101,700 - Ceramic Tile from Chance Brothers Tile in the amount of $221,495 - Wood Stage Flooring from Cincinnati Floor Company, Inc. in the amount of $206,500 CRC Meeting January 29, 2009 3 - Carpet and Resilient Flooring from Certified Floor Covering Services in the amount of $593 Mr. Sharp requested to clarify the total amount for Certified Floor Covering Services is $593,000 not $593. Mr. Sharp also asked if the total amount of the bid package falls under the $116 million as already approved. Mr. Olds stated that it did. Mr. Worrell questioned which base bids related to the alternates up for approval. Mr. Olds stated the important bids are decorative stone, which amount would increase if the alternate was selected. The carpet and resilient flooring would also change. The base bid package passes unanimously. Wood Flooring in Auditorium Mr. Sharp moved to approve RPAC Alternate 1, Wood Flooring in Auditorium, in the amount of $407,125.00, subject to available funding. Seconded by Mr. Hammer and unanimously approved. Ms. Anker requested Mr. Moriarity to comment on the acoustical qualities of having a wood floor. Mr. Moriarity explained the wood would provide a better environment for the concert hall and is fully recommended by ARTEC. Mr. Hammer questioned the construction sequencing and the chance of damaging the concrete floor if they had chosen that option. Discussion ensued. Mr. Sharp stated he felt the wood flooring affects the acoustics and has never been in a concert hall that did not have the wood floor and so would support the upgrade to wood flooring. Mr. Worrell stated he will support the upgrade due to the acoustic factor as well. Stone Flooring in the Main Lobby Mr. Carter stated the cost of replacing carpet in the Main Lobby is $110,000 with a 5-7 year life expectancy, therefore the staff has recommended an upgrade for stone flooring in the lobby. Mr. Hammer questioned the location of the stone floors and the type of traffic they would receive. Mr. Moriarity stated the stone would be included in the main lobby surrounding the hall and that there was a possibility of using the areas for food service or dining areas. Discussion ensued regarding the spec of carpeting and cost of replacing it in comparison with the cost and durability of the stone. Mr. Carter stated he felt the Mayor would raise the additional funds over and above $90 and that the Commissioners should look at these upgrades both from a “lifecycle” standpoint as well as a “look” standpoint. Commissioners should also consider inconsistent carpet changes in regards to design as well as the improbability of upgrading CRC Meeting January 29, 2009 4 aspects of the building in the future. He also stated the cost of the project would increase 1.28%-1.3% if all upgrades are approved. Mr. Sharp stated he agreed with the Construction Manager that they were working with an approved $118,850,000 construction budget as presented at a previous meeting. He expressed concerns on how the budget was approved and by whom it was approved. With the current construction costs of approximately $116 million, as well as the $2 million in contingency funds, the project, without having approved the first upgrade, is already over budget by $26,858,000 (based on original $92 million budget). Any upgrades approved this evening are being approved with borrowed monies. Mr. Sharp stated that even with the additional funds, the concert hall isn’t complete and the theatre hasn’t been built yet either. He questioned at what point to stop a budget that is currently 29% over budget and expressed disappointment in the fundraising efforts to this point. Mr. Hammer questioned Mr. Haas on the interim funding source and asked if the funds would come from this funding source until additional funding could be raised. Mr. Haas stated the funding sources would be used on other portions of the project (such as the energy center, theatre) rather than the upgrades up for approval this evening. The lease agreements will be paid over the course of 20 years from the 902 General Fund which is the excess TIF revenue received each year. With the current financial forecasts, there is sufficient additional TIF to support the payment of the loans. Mr. Hammer stated that some upgrades in question are located in areas that are revenue- producing areas such as the multipurpose room used as a banquet facility and meetings or receptions in the founder’s room. The stone-floor is not a revenue-producing facility or acoustic enhancement, yet will create a lessening of maintenance over the years. He acknowledged it was too late to look into other materials at other costs which may result in the delay of the opening. Ms. Anker agreed it was too costly to go back and find other materials and bids for the flooring which may delay the opening. She stated it was better to take the cost now as to keep the maintenance cost down significantly in the future. Ms. Anker moved to approve Alternate 2, Stone Flooring in the Main Lobby in the amount of $612,650 subject to available funding. Seconded by Mr. Hammer. Mr. Worrell stated he has previously voiced his concern regarding the upgrades and had stated he would only vote for the wood flooring in the auditorium, but that after listening to the debate and various reasons for adding the stone to the lobby, he has chosen to vote for this upgrade. The motion passes 4-1 (Mr. Sharp opposed). Wainscot in Auditorium Mr. Sharp referenced a three year forecast provided to the Commission and asked if the projected 2009 installment purchase contracts for the master loan program of $25 million CRC Meeting January 29, 2009 5 was the amount the CRC anticipated to receive. Mr. Haas stated it would be spent on the theatre and the parking garage. Mr. Sharp questioned the $6.5 million projected revenue from the sale of the energy center. Mr. Olds stated they are in the process of evaluating the energy center operation and calculate how much generated power and how many tons of cooling and heating can be produced which then can be contracted and sold to the operator of the concert hall, theatre or existing city buildings. It is the hope of the Commission that a private entity would purchase the energy center. Discussion ensued regarding the three-year forecast. With the approval of the Master Loan program, an additional $40-$45 million is available to fund the entire project, including the concert hall, small performance theatre and energy center, which is in addition to the original $92 million budget. Mr. Hammer requested an update on the construction schedule and anticipated completion deadline from Mr. Anderson of Shiel Sexton. Mr. Anderson stated he did not think the December 2010 completion date was in jeopardy at this time. Ms. Anker requested an overview of the acoustical affect of wainscoting in the auditorium. Mr. Moriarity explained that ARTEC has stated any variation on the texture of the walls has an affect on the sound by diffusing and enhancing the sound. Mr. Carter hands his “gavel” to Mr. Hammer, Vice President of the Commission (7:54 p.m.). Mr. Carter stated that, in writing, it was indicated to the public that the PAC would be built with $90 million but there would also be $40-$50 million in additional funding to add design and acoustical amenities to the building and to put together an endowment for the foundation that will operate the facility. He stated the project was not over budget and that the CRC is approving the upgrades that the foundation would have been approving at this time. He reiterated his belief that the community will raise the additional funds. (8:02 p.m. – Mr. Carter takes the “gavel’ back). Mr. Sharp stated the Mayor was quoted in the Indianapolis Star that the facility would be built for $90 million and public donations would pay for the enhancements. Ms. Anker moved to approve Alternate #3, wainscoting in the auditorium, in the amount of $72,328.00, subject to available funding. Seconded by Mr. Hammer and passed 4-1 (Mr. Sharp opposed). Wainscot in Lobbies Mr. Sharp questioned the acoustical nature of wainscoting in the lobby. Mr. Moriarity stated the wainscoting in the lobby is not an acoustical factor as it is in the auditorium and is merely an aesthetic and durability enhancement. The current base bid is painted drywall. No motion was presented to approve the wainscot in the lobbies. Multi-Purpose Room Upgrade CRC Meeting January 29, 2009 6 Ms. Anker stated the multi-purpose room has the potential to be a revenue generating source of the facility. She asked Mr. Moriarity to explain what was included in the base bid. Mr. Moriarity stated the base bid included a vinyl flooring At $19,456.00, Ms. Anker stated it was a relatively low dollar figure that could potentially assist with the revenue generating nature of the room. Mr. Hammer agreed the Commission could see a return by including the upgrade and making it both functional and attractive. Mr. Worrell requested an overview of the use of the multi-purpose room and the durability of the different types of flooring. Discussion ensued. Mr. Hammer moved to approve Alternate #5 in the amount of $19,456 for the Multi- Purpose Room Upgrade, subject to available funding. Seconded by Ms. Anker and passed 3-2 (Mr. Sharp and Mr. Worrell opposed). Donor Amenity Room Upgrade Ms. Anker requested that Mr. Moriarity give an overview of the differences between the base bid and two options for upgrades. Mr. Moriarity explained the base bid includes carpet, drywall, border and drywall ceiling. The first upgrade is to add additional painted wainscot, painted coffered ceiling and wood floor. The second upgrade is to include a stained wood wainscot as well as a wood floor and stained wood coffered ceiling. Mr. Hammer commented that the upgrade for this room was a revenue enhancement based on the feedback given by the General Manager of the Schermerhorn Center in Nashville, TN. Mr. Hammer moved to adopt Alternate #6, the Donor Amenity Room Upgrade, in the amount of $80,079, subject to available funding. Seconded by Mr. Anker and passed 4-1 (Mr. Sharp opposed). Stone Borders at Second Lobbies Mr. Hammer requested an explanation how this upgrade differed from the stone flooring. Mr. Moriarity explained the stone borders would be present in the upper lobbies and only borders at the edge of the wall, as the floor is carpeted. This is purely an aesthetic upgrade. No motion was presented to approve the Stone Borders at Second Lobbies. Stone Flooring in Elevators Ms. Anker questioned Mr. Moriarity about the durability of the floor of an elevator. Mr. Moriarity explained the elevator are public and are located in the main lobby. They would receive less traffic than the lobby, although the carpet would need to be replaced in the future. CRC Meeting January 29, 2009 7 Mr. Hammer questioned if there was any difference in the type of floor coverings included in the American Disabilities Act Handbook? Mr. Olds stated there was nothing like that in the handbook. He stated that often carpet in elevators needs to be replaced on a yearly basis due to the wear and tear by traffic. The cost of the carpet may be insignificant but the labor to replace the pieces may be significant over the years. Mr. Carter equivalent of replacing the cost of the carpet compared to installing the stone flooring would most likely occur in approximately four years. Mr. Worrell moved to approve replacing the carpet in the elevators with stone flooring at a cost of $4,900, subject to available funding. Seconded by Mr. Hammer and passed 4-1 (Mr. Sharp opposed). Alternate Box Office Elevation Mr. Moriarity gave an overview of the upgrade and explained it could be executed at a later date once the function is assigned to that particular space. No motion was presented to approve the Alternate Box Office Elevation. Box Tier Restroom Upgrades Mr. Moriarity explained the bathrooms are located at the upper level and have a “subway” tile included as the base bid. The upgrade includes marble tile which is purely an aesthetic enhancement. No motion was presented to approve the Box Tier Restroom Upgrades. Mr. Carter stated the amount of upgrades approved that evening total $1,196,538. Old Business No old business at this time. New Business No new business at this time. Adjournment Ms. Anker moved the meeting be adjourned and seconded by Mr. Hammer. The meeting was adjourned at 8:32 p.m.