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during the first year, corresponding to the lease term, associated with the construction of <br />the building. This is important because the warranties will be as to the entire building, not <br />just the county leased portion of the property. <br />LIBRARY AND OFFICE BUILDING <br />Geof Gledhill said in reference to the library and office building that the County will enter <br />into affixed-price CMR contract with a Horton entity for the construction of finished space <br />for the office building and library. He said that it is anticipated that the construction will <br />be completed on or about May 15, 2008 and the County will take ownership upon its <br />completion. The purchase price for the office building and the library and for the license <br />for 175 parking spaces in the parking deck, to be discussed below, will be approximately <br />$18,000,000. <br />PARKING DECK <br />Geof Gledhill said that the parking deck would be constructed by a Horton entity and the <br />County will purchase from a Horton entity a license for 175 parking spaces upon the <br />deck's completion. The cost of the license is part of the cast of the construction of the <br />office building and library. He said that the County would, after the license period <br />begins, pay an annual fee, with yearly escalation casts equal to the cast of living <br />increase, for maintenance of the parking deck. The initial cost of this annual <br />maintenance fee is estimated to be $11,375 ($65 per space x 175 spaces). <br />LETTER OF INTENT <br />Geof Gledhill said that he had included a proposed letter of intent for the Board's review <br />(attachment) and he covered some of the major deal points of this letter: <br />Orange County will be contracting with a Horton entity as the Construction <br />Manager at Risk and the CMR will provide construction management services for <br />the project throughout the preconstruction and construction phases, and will <br />guarantee the cost for the Project will not exceed the budgeted Project Cost of <br />$23, 429, 528 (this sum to be reduced by those portions of the contract balances <br />remaining to be paid to design professionals whose contracts must be assigned <br />to the County, pursuant to G.S. 143-64.31; provided, however, the design <br />contract for the parking facility will not be assigned.) <br />The guaranteed Project cost will be adjusted in the event {1) the County <br />introduces any changes to the scope of work envisioned by the CMR and the <br />design professionals, ar (2) the CMR is delayed in the commencement of <br />construction by reason of the public bid process or by reason of matters <br />reasonably beyond the CMR's control. <br />Chair Jacobs said he would prefer a professional that is knowledgeable about designing <br />a library and Geof Gledhill responded that the interior design will be done separately <br />from the exterior design, the latter being the Horton entity's responsibility; however, a <br />library designer employed by the County could work with the Horton entity up front on <br />this project. <br />