The Round FAQs
The City Council has voted to move City Hall from Griffith Drive to The Round. You may have questions about the move and how we got to this point.
Q: What has been decided so far with the move to The Round?
On January 15, 2013, the City Council directed staff to develop a plan and budget to relocate general purpose government to the City-owned building at The Round. On May 14, 2013, staff presented the City Council with the requested plan and budget and asked the Council for permission to take the following steps to implement the move:
Q: When will City Hall be moving?
- Hire a consultant (“owner’s representative”) to coordinate the overall project, including the design and construction of workspace and office improvements and the relocation to the new building;
- Hire an architect to design the new office workspace;
- Authorize the “construction manager/general contractor” construction project delivery method to hire a contractor to build the new office workspace;
- Authorize a $200,000 transfer resolution to pay for project-related expenses incurred this fiscal year (to June 30);
- Authorize the borrowing of additional funds next fiscal year to pay for all remaining project costs.
Staff believes it will take 12 months to relocate.
Q: What about the business people who rent space in the building? What happens to them if City Hall moves there?
The renters will continue to lease space on the second and third floors. There is also room for more rent-paying commercial tenants on those floors.
Q: Where will funding for the move to the office building at The Round come from?
The funding for the move will come primarily from the issuance of revenue bonds. The actual amount borrowed has not yet been determined, but cannot exceed $7 million. The bonds will be paid off in seven years. The interest rate for the revenue bonds is expected to be below 2% per year.
Q: Will this raise property taxes?
Q: Which departments will move to The Round?
All the departments currently operating out of City Hall are expected to move to The Round, with the exception of Police and Municipal Court.
Q: How does this fit with other priorities for the City, such as additional space for the Police Department and Municipal Court?
Moving City Hall to The Round eases some space issues. However, it does not solve the need for a well-designed and constructed, purpose-built public safety facility. The City is studying the best solution for our police and court and is actively engaged with the community to find solutions.
Q: Who will serve as the construction manager/general contractor?
We have not chosen a construction manager/general contractor at this time. However, the City Council has approved the use of the CM/GC contracting method for the workspace improvements at the Round. Under the CM/GC process, the City hires a construction firm early in the design process so the firm can be integrated into the project team and provide input during the design phase of the architect’s work.
Q: Why is staff recommending a CM/GC as the project delivery method?
The CM/GC contracting method allows an owner to engage a construction manager during a project’s design phase to provide constructability input. Then, at around the 60-90 percent design completion state, the owner and construction manager negotiate a “guaranteed maximum price” for the construction of the project based on the defined scope and schedule. If the price is acceptable to both parties, then the construction manager becomes the general contractor. CM/GC is a proven way to get a well-designed project constructed on schedule at a predetermined price.
Q: Has the City hired an architect to design office workspace improvements and, if so, how much will it cost?
The Council authorized the Mayor to sign a project contract with Hennebery Eddy Architects (HEA) to provide architectural design services for the office workspace improvements on floors one, four, and five in the building. The contract amount is not to exceed $324,000.
Q: Is Gerding Edlen still the City’s master developer and what is its role in the project?
City Council approved a change order to the City’s existing contract with Gerding Edlen Development Company, LLC, to continue to serve as our owner’s representative for the move. The total contract award is for $350,000, with the majority of the funds to be considered as part of the City’s proposed budget for FY2013-14.
Q: Are the CM/GC, the Hennebery Eddy Architects and Gerding Edlen contracts being funded by the revenue bonds?
Q: What else is being funded by the revenue bonds?
The proceeds from the bond sale can only be used for these purposes:
Q: How much of the bond proceeds do you expect to spend on office workplace improvements and how much to do you expect to spend on reimbursement of the cost to purchase the building?
- Designing and constructing improvements to the building;
- Acquiring and installing fixtures, furnishings and equipment to the building;
- Relocating City personnel and equipment to the building;
- Paying any other related additions, replacements, expansions and/or improvements to the building;
- Paying any fees, charges or taxes related to the move;
- Funding a debt service reserve fund, if necessary;
- Paying related bond issuance costs; and
- Reimbursing the City’s general fund for a portion of the original cost to acquire the land and building.
Right now it looks like the office workplace improvements (design, construction, furnishing and move-in) will cost up to $5.7 million. The remaining money would be used for purchase cost reimbursement.
Q: How much did the City pay to purchase the office building at The Round?
The City purchased the building for $8.65 million. The estimated replacement value of the building is $17.5 million. “Replacement value” means the actual cost to replace a structure to its current condition.
Q: What’s the “all-in” cost of buying the building and moving into it?
If you add the building’s purchase price together with the estimated cost of the office workspace improvements, the “all-in” cost for the City to move to the building is $14.35 million.
Q: What expenses did the City avoid by purchasing the office building at The Round?
The building purchase ended an expensive multi-year lease ($400,000 per year) for the space housing the Central Plant. The lease was set to run a minimum of another 13 years (and a maximum of 33 years). Over the maximum life of the lease, the City would have spent $13.3 million in rent.
Q: What’s the Central Plant?
The plant provides heating and cooling for most of the buildings at The Round. It’s located on the first floor of the building the City purchased. It takes up about 4500 square feet of space and includes boilers, chillers and a lot of pipes.
Q: How does moving to The Round fit in with the City’s Urban Renewal Plan?
The purchase of the building and moving to the building are not urban renewal projects. No urban renewal funds were allocated for the purchase of the building. That being said, the two transactions will help revitalize the area.
Preliminary Details Project Budget