Agenda - 06-27-2006-9b1 - Laserfiche WebLink

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The information in the attached memorandum presented on June 22, 2006 contains additional information regarding the development of the overall project. Commissioners expressed interest in additional information in two specific areas: the projected impact that the development options may have on Sportsplex revenues and the impact of phased constn~ction on development costs. John Stock, has projected that the Sportsplex will lose approximately $1,365,000 over athree- yearperiod if the space to be allocated to the Senior Center is not replaced. In contrast, he estimates that the Sportsplex revenue could grow approximately $272,500 if they are able to reclaim the space through the construction of a mezzanine over the ice rink. As cited earlier in this abstract, there is also an option to add a second mezzanine in the pool area for use as Sportsplex program space. Should the second mezzanine be constructed, Stock estimates revenues could increase by approximately $720,000 over athree-year period. The attached spreadsheet reflects the projected revenues by function, The issue of phasing was considered, but not actively pursued primarily because of the cost. Over the past year, the Board has seen multiple examples of steeply rising construction costs for County, School and Community College projects. The competition from the global community far raw materials and finished building products is not likely to change in the foreseeable fiiture. What this would seem to indicate is that even though current building costs have increased dramatically, they are most certainly to be less now than they will be at any point in the future. The Adult Day Health Center (ADHC) is a primary driver for creating additional space for Sportsplex operations. Aside from the synergy between the Senior Center and the ADHC, relocating the ADHC program to owned space at the Sportsplex would allow the rent to terminate at their existing location upon completion of the new senior center. The current rent for 6,000 square feet of space is approximately $83,000 per year. The ADHC has indicated a need far 4,000 square feet of program space. Assuming they would continue to rent at their current location at the Meadowlands after the senior center is relocated, rent payments would cost an estimated $55,000 per year, at the current rent rate. As a point of reference, $55,000 per year would support approximately $500,000 in debt service. Preliminary estimated renovation cast far the space proposed far the ADHC program in the Sportsplex is approximately $550,000--$575,000. Staff continues to work with consultants to determine the projected impact of phased construction. The information will be provided at the June 27, 2006 meeting. FINANCIAL IMPACT: Additional information regarding the projected cast of phased construction will be provided at the June 27, 2006 meeting. RECOMMENDATION(S): The Manager recommends that the Board approve the plan as cited herein and authorize the staff to proceed with project development such that a CM at Risk proposal may be presented after the summer break.