1981-09-15 - Laserfiche WebLink

Home Browse Search

. ~. I I I Memorandum Mayor & Council September 15, 1981 Wine Bar Addition 4. Construction Coordination $ 6,000 The City has paid the architect $18,000 to date; this represents the remainder of the contract. 5. Additional Miscellaneous Operational Costs Not Included In Wine Bar Budget This includes: purchase of glassware, paper products, food inventory. As we got further into the project we realized that the wine bar budget estimate for this category was inadequate. $ 5,000 The total of these additional items if $97,600, and therefore total project cost is $453,287. The City's initial estimated budget of $250,000 was based on $100 square foot for a 2,500 square foot addition. Using the same $100 square foot x 3750 square foot addition one arrives at a cost of $375,000. Add to this figure over $50,000 worth of improvements to the package store, a contingency fund, and miscellaneous operational costs, and one comes very close to our overall cost of $453,287. It should be noted that additional operational costs for the wine bar are reflected in that budget for 1982. We do not feel it is appropriate to deal with this aspect of the budget at this time. Although total project cost could appear to be high, we are comfortable with it for the following reasons: 1. By our best estimate, using a figure of a general contractor who bid the entire job but submitted too late to be considered, the City saved in excess of $50,000 using construction coordination. 2. We remain confident that the building can be paid for in between three to five years. 3. We feel confident that the entire $25,000 general condition/contingency budget will not be spent. 4. Our confidence in the potential success of the lounge and the additional revenue generated in the package store as a result of the lounge addition, increases each day.