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Memo Worksession on March 28 . '0 . CITY OF HOPKINS . MEMORANDUM DATE: MARCH 23, 1995 TO: HRA/COUNCIL FROM: PAUL T. STEINMAN, COMMUNITY DEVELOPMENT SPECIALIST RE : WORKSESSION ON MARCH 28 What follows 1S a more detailed discussion of the agenda items for the Worksession on March 28. 1. 6:30 Introduction - Opening comments by Mayor and brief overview of agenda. II. 6:35-7:00 Update by Representatives of the Arts Facility Steering Committee ,'. Overview of. process undertaken by the ArLs Facility st"ering ..... ...~,~ft t"e~:; .Gv.~r\:, ~'Jthef{tp'a-s.;t!l':: '5:\ ~ ~".1,O: :m'6ntl:):s!:-:'';;'';;'~''N~'1:,~ii~i'i1:f~!ifij.'~; 'i,icWk:fir':";df):\tTI-e.,'.:;t;~~.;;~",r1:,k.', Arts Facility Steering Committee. Discussion of general purpose of Community Arts Center - Kate Kinnich, member of the Arts Facility Steering Committee. Update on tenant space needs and usage as researched over the past 5 - 10 months - Steve Barberio, member of the Arts Facility Steering Committee. III. 7:00-7:15 Overview of Development Process Provide a brief overview of the development process beginning with the flvisioningll step and proceeding through to construction, as detailed in the attached information entitled Arts Facility Implementation Process. IV. 7:15-8:30 Discuss Fundamental Issues The following two fundamental lssues should be addressed at this time: 1) Is now the appropriate time to begin a process which would . ultimately result in construction of an Arts Facility? ---- . - - Page 2 March 28th Worksession . As the HRA/Council lS aware, the initial resolution committing $1.5 million to an Arts Facility was dependent upon a private development taking place on the Suburban Chevrolet site. This issue relates directly to whether or not the HRA/Council feels that the Beard project "private development II lS far enough along to be assured of a construction start in the fall of 95. 2) What does each Councilmernber envision in an Arts Facility? This issue will involve each Councilmernber discussing their respective concepts and ideas about an Arts Facility. The following questions are appropriate to ask as part of this issue: - What types of uses should be a part of the project? 0 Strictly arts related uses? 0 Other services provided such as daycare? 0 Meeting rooms/banquet facilities? 0 Tenants? - What are the site issues or physical elements Councilmernbers see as being high priorities within the . project? Site location, north side of Sub. Chev. 0 property? 0 Two-story building vs. single-story? 0 500 vs 750 seat auditorium? 0 Balcony? 0 Parking on site? V. 8:30-9:00 Discussion and Future Activity Staff will discuss with the HRA/Council the future process and schedule which could be undertaken by the Council. If the HRA/Council wishes to proceed with the Arts Facility project, staff anticipates the need for a facilitator at upcoming meetings of the HRA/Council. A facilitator would provide the level of technical expertise necessary to answer various questions and aid the HRA/Council, together with the Arts Facility Steering Committee, in building consensus for a facility. Attached is information on Art Space, Inc. which could provide such services. Staff will also provide information on the 28th on two other individuals/firms which would be able to provide . facilitation services. There would be a cost associated with all of these firms. cm03235 - .- - . ARTS FACILITY IMPLEMENTATION PROCESS . TASK I: VISIONING/PROGRAMATIC PROCESS A. Purpose To build consensus among Council members related to exploring various aspects of undertaking construction of an arts facility in addition to defining the basic parameters of such a project. B. Timetable April-May 1995 C. Activities council may meet three or four times over the next couple months to address fundamental issues. First meeting March 28 at which representatives of the Arts Facility Steering Committee would provide results of their activities to date. It would seem appropriate at some time in this process to allow public input and discussion. Issues to be addressed: . 1. Purpose of the facility. 2 . Physical elements of facility. 3 . Types of uses within the facility. 4. Public input/review process. 5. Project timetable. D. Comments 1. Major part of this process is for the Council to answer fundamental questions about timing and the construction of such a public facility in the broad sense. 2 . Steering Committee, based on its analysis, has determined that a facility which will meet a majority of their needs would be approximately 28,000-30,000 square feet and cost approximately $3 million. 3 . Proposed major tenants: a. Child's Play Theater b. Youth Ballet Company c. Hopkins School District 270 (potential) d. Hopkins Area Arts Association . J:h03USi\ ----- --- --- --- . TASK II: SECURE LETTERS OF INTENT A. Purpose To define the level of tenant commitment to the project. B. Timetable May-June 1995 C. Activities 1. Prepare and negotiate preliminary letters of intent. 2. Council approval and execution. D. Comments 1. Agree upon the amount of capital to be provided for construction of the facility and at what time in this process those dollars will be available from the tenant(s) . 2. Agree upon the amount of annual operating dollars (rent) to be provided by each tenant. 3. Agree upon the general level of tenant usage of the "community spaces" within the facility. . TASK III: BUDGETING PROCESS A. Purpose Define sources of funding and project costs. B. Timetable May-June 1995 C. Activities 1- Review available sources of funding and compare to estimated costs to define operating gap and capital gap. 2. Identify alternative funding sources to cover anticipated shortfall. D. Comments The activities will need to be ongoing throughout the process as costs become more defined. . JK0314 5A TASK IV: HIRE PROJECT MANAGER AND ARCHITECT . A. Purpose The project manager would act as an agent of the City in overseeing all project construction tasks, in addition to overseeing the architect. The architect would prepare the preliminary and final design/construction plans. B. Timetable May-July 1995 C. Activities 1. Prepare Request for Proposals document. ~ 2. Review with Council. 3. Solicit responses to Request for Proposals. 4. Selection/interview process. 5. General public input, Council approval, and award of contract. D. Comments 1. Need to have these individuals involved in the process at an early stage. 2. This task will require funds. . 3 . Contracts for these individuals would allow for termination if, at a future date, a decision was made not to proceed with the project. 4. Project manager is one of a number of approaches to this project. 5. project manager activities would involve the following. a. Assist in hiring of architect. b. Oversee preparation of plans. c. Prepare cost estimates. d. Facilitate bid process. e. Oversee construction. TASK V: ARCHITECTURAL A. Purpose Prepare the various levels of architectural design of a facility. B. Timetable July 1995-April 1996 1. Schematic design: 8-10 weeks e 2. Design development: 4-6 weeks 3 . Construction documents: 3-4 months tl~:O::l14Si\ --- --.- . C. Activities Each of the above three phases would involve the following steps. l. Preparation of plans. 2. Cost estimate prepared by project manager. 3. Review by tenants. 4. Review by City Council and general public. TASK VI: OPERATIONAL/MANAGEMENT AND POLICY ISSUES A. Purpose Refine operational costs, management issues, and policy issues. B. Timetable September-December 1995 C. Activities Facility Management: . l. Prepare scope of work. 2. Review with Council. , 3. Solicit proposal. 4. Review City staffing alternatives. 5. Prepare recommendation for Council. Operational Costs: l. Architect prepares schematic design. 2. Architect prepares estimates of operating costs. Policy Issues: l. Determine policies related to traffic and parking. 2. Review with staff/impacted group and general public. 3. Implement recommendations. D. Comments 1- Staff has previously estimated annual operational/management costs to be approximately $7.78 per square foot. For 30,000 square feet facility this would equate to approximately $233,400 per year. 2. Management/Maintenance could involve either a private . firm, City staff, or a combination. JK03145/\ -- -- -- TASK VII: TENANT LEASES . A. Pur?ose Final commitment by tenants to project. B. Timetable November 1995-January 1996 c. Activities 1- Meet with tenants. 2 . Prepare draft leases. 3 . Secure tenant approval. 4 . council approval and execution. TASK VIII: BID/CONSTRUCTION PHASE A. Purpose Secure contracts for construction of project. Undertake construction of project. B. Timetable June 1996-March 1997 . c. Activities 1. Prepare bid documents. 2 . Advertise for proposal. 3 . Award contracts. 4. start construction. . ,JV031~'JA --- ART SPA C E March 21, 1995 M L a./nf S"aa for MaKi"C A,! Mr. Jim Kerrigan Director Planning and Economic Development city of Hopkins 1010 First street South Hopkins, Minnesota 55343 Dear Jim: ~ i- Thank you for meeting with me for lunch on Monday. I enjoyed I our discussions of the proposed Hopkins Arts Facility and . appreciated an update on the project. The discussions were fruitful; we feel poised to move foward. The project has incredible potential. As we discussed, the next step before full development of the building would a feasibility analysis. In addition to the . review of existing materials, the meetings with potential users and audiences, and the preliminary study of potential sources and uses, Artspace proposes to accomplish the attached workplan. This feasibility study would include Artspace I s hiring of an architect to develop initial schematics of the project, a theatre design specialist, and possibly other engineers to insure the long term viability of the center. As part of its !~ final report, Artspace will present to the City council and . Administration preliminary construction numbers based on all the . material available at that point in the project. The city . leadership will then have enough information to choose whether I or not to proceed with the entire development p~oject. . ( This feasibility work would take approximately four months. At I the end of that tim.e, efforts could begin in earnest on the approximate two year predevelopment periOd, culminating in the . final year of construction. Then we could all enjoy the grand opening celebration in Hopkins. Real estate development is a ! fluid process; we need to talk more about what exactly : constitutes the feasibility process. We hope the attached plan . can be used as a tool to begin this effort. Artspace anticipates the feasibility analysis could be completed for $30,000. We are willing to break this into four $7,500 ARTSPAGE . monthly payments if this 1S preferable to the city Council. PROJECTS. This number does not reflect any legal fees for land acquisition ~~~ or site plan approval processes, which we understand to be part SUlTE111 MNNE.APaJS. I.'lNNESOTA 55401 612-:Il9..on . of the city's development activities. If the Hopkins Council . and the Artspace Board are ready to make this commitment, Artspace is ready to work. In addition, I would like to give you a framework to the overall development process that Artspace would use if we were asked to be the project manager or developer for the project beyond the feasibility phase. Please review the attached Development Matrix which outlines much of the work Artspace would do over the next two years. We are excited about working in the Hopkins community. We look foward to hearing from you. cc: John Burg, Artspace Projects Board Chair Rich Martin, Immediate Past Board Chair Jim Adams, Chair, Space Development Task Force . . . Proposed Artspace Workplan for Hopkins Arts Facility . Feasibility Study Only Site: Determine if the site is appropriate for intended use. Determine if the site is a draw for potential users and audiences. Identify strengths and weaknesses for design phase. Market: Follow-up wiili potential users, pursue initial letters of commitment Review desires of audiences and users. Incorporate users' needs into initial design. Construction and Design: Produce initial design concept that incorporates the needs of main user groups and reflects the will of the City. . Interview architect and determine schematics. Work with theater consultants and engineers to fIne tune overall concept. Develop preliminary construction costs and construction schedule scenario. Financing: Review current fmancing and gap concepts. Update overall fmancing as required. by new numbers. Make presentation of revised project costs and projections. Ownershi p/Operations: Develop very preliminary operating projections. Continue discussions on a management plan that will work for users and market. (Artspace does not act as a property manager). .