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<br /> 1 In December 2017, Orange County and the Town of Carrboro signed a Development
<br /> 2 Agreement for the design and construction of a facility that would jointly contain administrative
<br /> 3 offices for the Town of Carrboro, spaces for The Arts Center of Carrboro, and the Orange
<br /> 4 County Southern Branch Library (Attachment 5). The design process began shortly afterward
<br /> 5 and proceeded until the development of schematic design documents and initial cost estimates.
<br /> 6 At that point, The Arts Center of Carrboro withdrew from the project.
<br /> 7
<br /> 8 Subsequently, both Orange County and the Town of Carrboro have discussed changes to the
<br /> 9 occupant mix and associated space allocation within the facility. The Town has proposed
<br /> 10 adding various functions totaling approximately 6,950 square feet in Town allocated space while
<br /> 11 the County staff have discussed adding a permanent location for the Skills Development
<br /> 12 Center.
<br /> 13 Adding the Skills Development Center would increase the County's space by approximately
<br /> 14 12,600 square feet and increase the County's overall space allocation from 41% to 56%. This
<br /> 15 abstract would authorize the final scope of County space by outlining two options. One of these
<br /> 16 options would be memorialized in the First Amendment to the Development Agreement.
<br /> 17 The first option is to proceed with the addition of the Skills Development space. The table below
<br /> 18 summarizes the proposed project budget and how it compares with funds currently planned in
<br /> 19 the County's Capital Investment Plan.
<br /> 20
<br /> 21 203 South Greensboro Project Budget with Skills Development
<br /> 22
<br /> 23 Approved Capital Proposed Difference
<br /> 24 Investment Plan Budget
<br /> 25 Professional Fees - 56%/44% $ 1,172,500 $ 1,987,493 $ 814,993
<br /> 26 Library Construction @ 15,000 sq. ft. $ 4,625,000 $ 4,725,000 $100,000
<br /> 27 Skills Development Const. @ 12,600 sq. ft. $ 3,969,000 $ 3,969,000
<br /> 28 Parking Construction - 83 spaces $1,000,000 $2,075,000 $1,075,000
<br /> 29 Common Area Construction - 56%/44% $1,008,000 $1,008,000
<br /> 30 Furniture, Fixtures, Equipment $1,250,000 $1,250,000
<br /> 31 Owners Contingency - 5% Construction Costs $588,850 $588,850
<br /> 32 TOTAL $6,797,500 $15,603,343 $8,805,843
<br /> 33
<br /> 34 The escalation of approximately $8.8 million in project costs is primarily attributable to four
<br /> 35 factors. First, additional professional fees will be incurred as the plans are modified to remove
<br /> 36 and repurpose space that had been allocated to the Arts Center. Second, the addition of the
<br /> 37 Skills Development space would add approximately $3.9 million in construction costs and
<br /> 38 approximately $1 million to add 33 parking spaces. The majority of this cost ($3.75 million) will
<br /> 39 be repaid through the lease or sale of 501 and 503 West Franklin. Third, the original project
<br /> 40 budget was created in the FY2011-16 Capital Investment Plan and did not contemplate a
<br /> 41 shared facility with common areas or an adequate budget for furniture, fixtures, and equipment.
<br /> 42 Finally, the owner's contingency is dependent on the project delivery method which was not
<br /> 43 known when the project was originally included in the Capital Investment Plan. In this case, the
<br /> 44 owner's contingency is based on using a Construction Manager at Risk method to deliver the
<br /> 45 project. Additional details regarding this option are contained in Attachment#1 — Budget
<br /> 46 Allocation with Skills Development.
<br /> 47
<br /> 48 The second option is to proceed only with the Southern Branch Library. Due to many of the
<br /> 49 same factors listed above, this option would also involve additional costs as summarized in the
<br /> 50 table below.
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