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Home My WebLink About06-10-2013 Special ,� * Special City Council Meeting crtroF< -..�� - -. June 10, 2013 - 1:30 PM - � . „ : Parks, Arts 8� Recreation 'wnsHiNC`roN Administration Building MINUTES I. CALL TO ORDER Mayor Peter B. Lewis called the special meeting of the City Councit to order at 1:30 p.m. at Parks, Arts and Recreation Administration Building located at Les Gove Park. The purpose of the special meeting was to , receive a presentation from the Les Gove Community Campus Committee focused on the Auburn Community Center at Les Gove Park. Members of the Council present: Rich Wagner, Bill Peloza, John Partridge, Largo Wales, Wayne Osbome and John Holman. Department Directors and staff members present included: City Attorney Daniel B. Heid, Parks, Arts and Recreation Director Daryl Faber, Finance Director Shelley Coleman, Advisor to the Mayor Michael Hursh, Interim Planning and Development Director JeffTate and City Clerk Danielle Daskam. II. DISCUSSION ITEMS A. Presentation to City Council Eocused on the Auburn Community Center at Les Gove Community Campus Councilmember Wagner, chair of the Les Gove Community Campus Committee, opened the meeting with an overview of how the Community Center project started, the community's need, the work of the Les Gove Community Campus Committee, and public input to date. The Committee's presentation today willfocus on potential funding scenarios for the construction and operation of a Community Center. Using PowerPoint slides, Councilmember Wagner reviewed the population growth of the city from 7,000 in 1952 to approximately 73,000 in 2012 and anticipated growth to 100,000 in 2040. One of the purposes of the Community Center is to unite the community and serve as a gathering place for an increasingly diverse community. Councilmember Wagner reported the subject of a Community Center has been discussed by the City for over thirty years. In May 2005; a city-wide survey revealed when given a choice ofhow to allocate $100 in seven areas, survey respondents would allocate $27 to a new Page 1 of 6 Community Center. Director Faber explained the survey was part of the Parks and Recreation Open Space Master Plan developmenf and was a random phone survey conducted by the consultant. Councilmember Wagner noted that other cities have community centers; for example, Mercer Island, Puyallup, and Tukwila. Committee members toured many of the area's community centers together with the City's architect, BLRB. Councilmember Wales, with the use of PowerPoint slides, displayed renderings of the building looking north ftom 12th Street towards the entry and the parking lot and from Les Gove Park looking south. The Community Center will look out over Les Gove Park. Two stories of glass will look out over the park and Community Center plaza. Councilmember Wales displayed the floor plan of the proposed Community Center. The Community Center consists of 20,880 square feet. The Parks, Arts and Recreation Department:will occupy the west. portion of the building. The floor plan includes finro fixed activity rooms and a large gathering room that can be divided into thirds. An enlarged lobby will allow museum presentations and other types of demonstrations. The Community Centerplan is designed so that it can be expanded in the future. Councilmember Peloza commented that a gathering room with 350 occupancy is too small. He suggested a larger gathering room that could accommodate 500 people. Director Faber explained thaf the 350 occupancy is factored by 8-person round tables. By increasing the number of persons at a table to ten, the occupancy will increase to 450. Chair Wagner added that the facility will accommodate 500 in theater seating. Mayor Lewis stated any larger facility would cost in excess of the $10 to $12 million project cap. Proposed uses of the new facility include: community events (informatio,nal meetings, ethnic gatherings, perFormances), weddings and receptions, birthdays and youfh events, parties and rentals, meetings and corporate events, trade shows, and other special events. Councilmember Wales spoke to how the proposed Communiiy Center fits with the rest of the Les Gove Community Campus. She displayed an aerial view of the Les Gove Community Campus with the Community Center footprint overlay. Councilmember Wales stated with the proposal to move the Parks, Page 2 of 6 Arts and Recreation administrative offices to the Community Center, the existing Parks administration building would then be converted to a youth and teen recreation annex for before and after school youth programs, daytime programming for all ages, teen after-school programs, and cooperative programs with other youth-focused non- profit groups. Councilmember Wagner presented information on the costs to building and operate the proposed Community Center. Councilmember Wagner stated the National Development Gouncil (NDC) and Lorig Associates reviewed the City's Community Center design and provided the following comments: Construction cost is well within the range of similar civic buildings. The design is efficient and maximizes the ratio of net square footage to building gross square footage. Low ratio of window area to wall area for low energy loss. Design accommodates expansion in later phase to table-seat b00 people. NDC and Lorig estimates the construction contract at $8,018,279.00. The bid received by the City in 2009 (plus 15%) was $6,902,811.00. Councilmember Wagner reviewed the comparison of the NDC/Lorig estimates to the City's estimate (based on the 2009 bidding process): NDC[Lorig City Estimate Estimate Construction Contract $ 8,018,279 $6,902,811 Contin enc 962,194 525,000 Furniture & e ui ment 225,000 200,000 Sales Tax 836,433 694,130 TOTAL HARD COSTS $10,041,906 $8;321 941 Architect, Consultants, $ 454,820 $ 200,000 En ineerin Insurance, Legal, 421,706 200;000 Financin ,Permits Mana ement 660 633 300;000 TOTAL SOFT COSTS $ 1,629,275 $ 7Q0,000 Page 3 of � TOTAL COSTS � $11,671,181 � $9;321,941 � Councilmember Wagner reviewed the estimated operating costs for the proposed Community Center. With input from Director Faber and , his staff and NDC, the annual net operating cost is estimated at $156,950.00 based on the following: Recreation Pro ram $ 45,000 Contract Services/Rentals 55,000 TOTAL INCOME $100,000 Salaries & Benefits $ 47,750 Su lies 51,200 Maintenance 133,000 Miscellaneous 25,000 TOTAL EXPENSES $256,950 Annual Net O e�atin Cost $156,950 Councilmember Osbome presented information on Community Center construction financing options. The New Market tax Credits (NMTC) process that was used for Redmond City Hall and the LeMay Automobile Museum is suggested by the NDC.. It is a complicated process, but postpones payment of some of the costs. The NMTC process includes: Formation of a non-pr,ofit Community Center "Owner Corporation" governed by a Board of Directors made up of the City Council, The NDC manages the financing of the project and oversees the City's operations for 7 years at a cost to the City of$100;000.00 per year. A 7-year interest-only $92 million loan is taken out by the City to finance construction; interest-only debt service costs the City $370,000.00 per year. The City receives $2 million "free money" through the NMTG process. The City becomes the owner after 7 years when the $9.2 million loan Page 4 of 6 principal must be refinanced or paid off. A second financing option consists of the City managing the project, including financing and, construction. The City would secure a $9 million 30-year loan. The d.ebf service is approximately $465,000.00 per year. Comparison of Options 1 OPTION 1 OPTION 2 and 2 NMTC CITY Financing and construction $11,671,181 $9,32'1,941 costs O eratin cost er ear 256 950 156 950 Debt cost (per year Option 1, 370,000 465,000 7 yrs O tion 2, 30 rs, 3.1% Loan a off after7 ears 9,200,000 -0- Set aside for loan payoff (per ' 1,000,000 -0- ear for 7 ears Councilmember Wagner reported that the Les Gove Community Campus Committee has not made an official recommendation, but he believes the recommendation would be for Option 2. Finance Director Coleman stated she belieyes at this point there is not sufficient bonding capacity fora general obligation bond issue for the construction of the Community Center. Director Coleman stated there will be a better picture of financing options once 4here is a forecast for property taxes and other revenues. Councilmember Partridge questioned whether a voted bond issue should be pursued. Mayor Lewis-stated thatthe City held elections three times for a voted bond for a community center and each one failed to pass. Mayor Lewis stated that a majority of the citizens want a community center, but there is not a majority of voters who will support a voted bond issue fora community center. Councilmember Holman que.stioned whether the proceeds from property sales can be des'ignated for the Community Center. Mayor Lewis stated the Council can decide to designate any funds from property sales to the construction of a Community Center. Councilmember Wales stated the Finance Committee will be discussing options to allocate windfalls and proceeds from property Page'5 of 6 sales to specific purposes. Finance Director Coleman suggested earmarking the funds in the Capital Projects Fund. At 2:35 p.m., the Councilmembers toured the Les Gove Community Campus and its facilities and viewed the footprint ofthe proposed Community Center. Councilmembers returned at 2:55 p.m. for a brief wrap up. Councilmember Wagner stated that the Parks random phone survey should include specificquestionsregarding a proposed Community Center. Director Faber will'work with the Planning Department to develop appropriate questions. Director Faber suggested, in addition to the statistically valid phone survey, the City distribute comment cards regarding the Community Center at some ofithe City events, such as Fourth of July and the Aubum Irrtemational Farmers Market. Councilmember Wagner questioned the need to distribute informational comment cards. III. ADJOURNMENT ' There being no further discussion, the meeting adjoumed at 3:00 p.m. APPR this .�" day of August, 2013. �� Peter B. Lewis, Mayor anielle Daskam, City Clerk Page6of6