Title
AUTHORIZE THE CHAIRMAN TO EXECUTE A REAL ESTATE PURCHASE CONTRACT FOR THE IRS BUILDING AND AUTHORIZE THE ADDITION OF A CIP PROJECT TO ACQUIRE AND RENOVATE THE IRS BUILDING TO HOUSE MABCD, MAPD, THE MAIN TAG OFFICE, AND OTHER COUNTY DEPARTMENTS.
Presented by: William P. Buchanan, County Manager.
RECOMMENDED ACTION: Authorize the Chairman to execute a real estate purchase contract for the IRS building and authorize the addition of a 2014 CIP project to acquire and renovate the IRS building.
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The County has plans in the recommended 2015 budget and CIP to obtain office space to house the MABCD and a new main tag office, funding each project with bond proceeds. An opportunity has arisen to acquire the IRS building, and it provides adequate space to serve both of those purposes as well as provide office space for some county operations currently housed in leased space. Thus, funding currently budgeted to make lease payments can be diverted to pay a portion of the debt service on the planned bond issue.
The building consists of 92,372 square feet of usable space, including 78,446 square feet of space that could be occupied and 13,926 square feet of common area space. Proposed uses of the occupied space include:
MABCD |
21,030 sq ft |
MAPD |
17,205 sq ft |
Appraiser |
21,961 sq ft |
Environmental resources |
3,405 sq ft |
Sheriff prof. stds. unit |
845 sq ft |
Tag office |
14,000 sq ft |
The negotiated cost of the building purchase is $5,000,000. The total project budget is $13,855,000, consisting of the following elements:
Acquisition $5,000,000
Construction $6,316,896
Architect $505,352
Furnishings $1,297,695
Other costs $103,367
Contingency $631,690
Total project $13,855,000
The two projects in the recommended 2015 CIP and capital budget that would be replaced by this project are the MABCD/MAPD one stop shop building ($11,343,603) and the new tag office ($2,695,273). The combined cost of these projects is $14,038,876.
Alternatives: Reject the purchase and proceed with the projects as recommended in the 2015 CIP and capital budget.
Financial Considerations: The project would be funded with the proceeds of a General Obligation bond issue to be sold in 2015. The estimated total interest cost of the bond issue is $4,267,443. The bonds would be structured to conform to the county debt policy, which calls for early repayment of bonds. Thus, for the first 5 years after the bond sale, the annual debt service is estimated to be $1,191,344; this amount would decrease after year 5, and would decrease again after year 10. Because the total project cost is less than the combined cost of the two projects in the recommended CIP, the debt service would be slightly less than what has been programmed into the financial forecast for 2016 - 2019.
Legal Considerations: The County Counselor has reviewed and approved as to form the real estate purchase contract.
Policy Considerations:
Outside Attendees:
Multimedia Presentation: