AgdaPkt 2003-11-03 - Laserfiche WebLink

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L 0. A- I REPORT To the Honorable Mayor and City Council From the City Manager November 3, 2003 Subject Financing for the new Police Activities League (PAL) Community Center located at 3399 Bay Road in Redwood City. Recommendation Adopt a resolution approving and authorizing execution of agreement with Bay Area Bank and PAL, with the City of Redwood City as "guarantor" of the loan. The loan will be in the amount of $1,500,000 to allow for completion of the new PAL Community Center. Background In June of 2002 the Redwood City School District leased a portion of land located at the corner of Bay Road and 10` Avenue (Taft Elementary School) to the PAL for the construction of a youth community center. The building design is two -story and measures 15,000 square feet. This project was subject to the approval and inspection of the Department of the State Architect (DSA) because the proposed facility is located on the campus of Taft School and will be used by the youth attending school during the daytime. Construction of a DSA building requires additional site inspections and reinforced structural standards. The initial funding to begin this project came from several sources. Redwood City residents Jeff Hawkins and Janet Strauss donated $2,000,000, Redwood City's Capital Improvement Project (CIP) funds provided another $356,000, and Redwood City Community Development Block Grant (CDBG) funds provided $182,050. PAL has also raised approximately $270,000, and secured pledges over a three year period of approximately $300,000 towards the construction of the new community center. PAL contracted with the Redwood City architectural firm DES Architects /Engineers to design the building at a cost of $434,000. Based on that design, PAL received an initial bid from the Redwood City contractor Beals /Martin Inc. of $2,700,000. PAL decided to break ground on the community center with the sufficient funds on hand and /or pledged to meet the initial cost estimates. DSA requirements caused Beals /Martin to increase its estimate just prior to beginning construction to $3,100,000. PAL decided to move forward with construction despite what had become a $400,000 shortfall and begin a capital campaign. As construction began, PAL immediately received a change order from Beals /Martin for $245,000 due to DSA requirements. PAL has since received change orders totaling an additional $409,000, also to meet DSA requirements that required modification from the. original architectural drawing. Most of the changes have come as a result of the DSA's on- site inspector determining that, though DSA had approved the original plans, they did not meet DSA requirements. Other incidental expenses have added approximately $300,000 to the cost of the building. PAL's construction funding deficit has now grown to $1.500,000.