PRECA 06-01-1994 - Laserfiche WebLink

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Council Meeting Minutes Page 8 May 10, 1994 Consent Agenda, continued 7. CONSIDERATION OF APPROVAL OF THE CHANGE ORDERS IN THE AMOUNT OF ($98,042.00). 8. CONSIDERATION OF APPROVAL. TO AWARD FAMII.Y SERVICE CENTER SPRINKLING CONTRACT TO MIDWEST FIRE PROTECTION AT A TOTAL CONTRACT COST OF $49,348.00. 9. CONSIDERATION OF APPROVAL TO WATVE THE READING AND ADOPT THE RESOLUTION INDICATING CITY OF NEW BRIGHTON'S INTENT TO OPT OUT FROM FUTURE OAK GROVE LANDFILL TRUST LITIGATION. S Ayes - 0 Nayes, Motion Cazried. Public Hearing,- None Council Business Fulton presented information regazding potential construction of a third floor on the Family Service Center. The Council previously approved the construction of the 72,000 sq. ft. two-story facility designed to accommodate a potential 17,200 sq. ft. third floor azea. The additional squaze footage would result in a 89,200 sq. ft. building. The construction of this footage would cost approximately $700,000 and require $500,000 to finish the space for tenancy. Fulton noted that these figures are conceptual and may be less at the final design stage. The possible amount of net area to lease would vary between 80-85% resulting in rental space of 13,760 sq. ft. Based on budget assumptions, the building would need to demand first yeaz square footage rents between $12.73-$16.36. Because of the status of the facility's construction, there may never be a better time than now to construct the third floor. Any rental rates would cover the cost of the third floor, uttgities and operational costs. At this time, the Mounds View School District does not. have interest in expanded space. Because of opinions expressed by private developers supporting the third floor, staff has requested Towle Realty to perform a mini mazket study to inventory current occupancy rates of facilities within the New Brighton market. Fulton noted that the one difficulty in the decision to move forwazd is that there is no current tenant identified for this space. Scenario A assumes that the City would commence repayment on the debt service in 1995. Based on budget assumptions, the budding would need to demand first year squaze footage rents between $12.73 to $16.36. Under this scenario, the breakeven point would be $16.36 per sq. ft. Scenario B assumes that locating tenants may take time and there would be an attempt to defer some of the debt service costs untd a later date.. Based upon budget requirements, a $12.00 per sq.' ft. rental rate would equal about 7896 of the budding to be occupied in Year 1 in order for the project to be successful. Projecting ahead,.-; rental rates of $16.26 per sq. ft. would be required in Yeaz 1996. ~- Consent A eg nda Change Order to Family Service Centel Report 94-110 Family Service Center Sprinkler System Report 94-111 Oak Gorve Landfill Litigation Report 94-112 Resolution 94-057 Council Business Family Service Center Third Floor Expansion _ Report 94-115 C f t.