HomeMy WebLinkAbout1988 06-30 EBFA1
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MEMORANDUM
TO: Gerald G. Splinter, City Manager
FROM: Brad Hoffman, EDA Coordinator -1
DATE: June 30, 1988
SUBJECT: Schematic Design and Cost Analysis of Earle Brown Farm
At the July 7, 1988, joint meeting of the EDA and the Earle Brown
Farm Committee, we would like to cover a number of subjects and
will be anticipating a final action relative to programs
(building use). The schematic design phase of the project is
complete and has been reviewed with most of you. Since that
time, Heskin Resource Group, Inc. has completed a cost analysis
of the program. With the cost data and some additional financial
information to be received July 6, 1988, from Springsted, it will
be necessary to give a final directive relative to the program
before any further work can go forward. Assuming an acceptance
by the EDA of the schematic design, the architects can start the
hard line drawings for the project leading to bid documents for
this fall.
The schematic design for the farm as developed by the architect
reflects a number of diverse program requirements established by
the EDA. As you are aware, a number of design problems had to be
overcome in order to accomplish all of the requirements
established by the EDA. Some of the problems included: parking,
kitchen facility size and location, public uses, and income
generation.
Since the completion of the design and its acceptance by the
citizens committee, Heskin Resource Group, Inc. has completed its
cost breakdown for the project. Without any changes to the
program, the construction cost of the project will be an
estimated $6,831,914. Not included in that figure are additional
costs for furniture and fixtures, parking ramps, taxes, pre-
opening expenses, and a trust fund for the farm. A total
development cost for this project will run approximately
$9,861,914.
The tax increment district has a bonding capacity of
approximately $4.5 million with a net to the EDA of approximately
$4.2 million. Current and anticipated funds available to the EDA
amount to an estimated $3,030,000. This project as currently
programed is about $2,631,914 short. obviously, some
modification of the project needs to be addressed.
In the cost analysis of Heskin Resource Group, Inc., the staff
' has anticipated a scaling back of the bed and breakfast; the
elimination of the restaurant, the blacksmith's shop, and the
bunk house; and the downgrading of the D barn from a finished
office building to a structurally sound storage facility. Prior-
to this modification, the total cost was an estimated
$11,265,934.
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Memo to Gerald Splinter
Page 2
June 30, 1988
1 If we eliminate the G barn, build the trust fund as monies become
available, and consider a different funding source for parking,
we will be looking at a development cost of approximately
$7,249,748. Deducting available funds of $3,030,000 gives a cost
' of $4,219,748 or a bond issue of approximately $4.5 million.
However, $322,000 of the available monies are in the form of a
contract for deed due in 1990. There are several considerations
available to the EDA relative to the $322,000 which will be
discussed Thursday evening.
' The questions before the EDA will be whether the schematic design
is consistent with the recommendations of the citizens committee;
whether the staff-recommended cuts are acceptable; and whether
the program as now proposed is still acceptable given cost
constraints. I hope to provide a more specific breakdown of cost
and financing needs after receiving information from Springsted.
Should any of you have any questions or thoughts you would like
me to research prior to the meeting, please call me.
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