6.7. SR 03-11-1996 - Laserfiche WebLink

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ITEM 6.7. ',ty of MEMORANDUM TO: FROM: DATE: Mayor & City Council Pat Klaers, City Ad~s~rator March 11, 1996 SUBJECT: Ice Arena Project Update At the 2/19/96 City Council meeting, an update was provided to the City Council on the Ice Arena project. At this 2/19/96 meeting, the Council authorized the architects moving forward with the construction documents. Additionally, the Council authorized some city contributions to the project. These contributions are in addition to the $50,000 commitment that the City Council made on December 11, 1995, in conjunction with the Mighty Ducks grant application. This $50,000 contribution was identified as a last resort funding, but the Council should assume that this contribution will be needed. The Council will need to discuss the source of these funds at a later date, assuming that the project moves forward and construction bids are awarded. Attached for your review is a project delivery schedule as prepared by RSP Architects. This delivery schedule highlights that bids will be presented to the City Council on April 15, 1996. In order to accomplish this schedule, the notice to go out for bids needs to take place around March 20. This allows the notice to be published three weeks prior to the bids being due. It is scheduled that the bids will be received on April 11, 1996. Nothing has changed financially with this project since 2/19/96 and the 3//6/96 Star News article is accurate. The city feels comfortable that there is at least $2.35 million available for this project. We hope that the bid for the project will be about $2.5 million when taking into consideration all the volunteer labor and contributions from local professionals in the construction trade. The general feeling of the Task Force is that we will never know ff a project can happen unless we actually go out and get bids for the project. We know that ff bids are not favorable, and that ff they end up in the $2.6-$2.7 million bid range, then we are going to have a very difficult time moving forward with this project. Even ffthe bids come in at the $2.5 million range, there is still a gap between this amount and the available revenues, and both the city and youth hockey may have to step forward with more funding in order to have this project work. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425