MEETING DATE:
SEPTEMBER 23, 2014
SUBJECT:
Title
resolution no. 2014-7984 - CREEKSIDE MARKETPLACE BUILDING A CONSTRUCTION BID AUTHORIZATION
Body
Recommendation
Recommendation
Staff recommends adoption of the attached resolution approving the construction documents for the Creekside Marketplace Building A construction improvements and authorizing advertisement for bids.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Quality of life
Economic Development
Relevant Department Goal
Professionally manage the City's extensive real estate portfolio
Introduction
The project will modify the existing Building A, formerly the Lowe's building, to complete the Landlord required modifications per the lease agreements with Hobby Lobby and Winco. The building's front will be modified to accommodate two storefronts and its frontage along Grand Avenue expanded into the former garden area of Lowes. The overall footprint of the existing building with the garden center will be reduced because of the project.
Discussion
At the June 24, 2014 meeting, the Council authorized the City Manager to finalize and execute the leases Hobby Lobby and Winco Foods. The City expects to complete the construction of phase 1 by early spring, allowing the tenants enough time to complete their improvements. Modifying the existing building at Creekside Marketplace is required under the terms of the lease agreements with Hobby Lobby and Winco.
Completing the improvements and moving the tenants in will facilitate substantial revenues for Creekside Marketplace and, subsequently, the City's General Fund. These documents have been reviewed by Planning and Building.
Fiscal Impact
The construction costs for this phase are expected to be $4 million dollars. At an upcoming Council meeting, staff will be recommending financing for the Creekside Marketplace Building A improvements and purchase. The executed leases for Building A tenancies are expected to increase lease revenues at Creekside by $1 million per year over the previous Lowes lease revenues.
Attachment(s)
Resolution
Prepared by: Geoffrey Foster, Senior Management Analyst
Reviewed by: Ellen Hegarty, Director of Real Property Services
Approved by: Jack Griffin, City Manager