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Economic Development Authority (EDA) <br />Meeting Date: 08/12/2021 <br />Submitted For: Sean Sullivan, Community Development <br />By: Sean Sullivan, Community Development <br />4. 4. <br />Title: <br />Review Quotes for Renovation of Old Town Hall <br />Purpose/Background: <br />The purpose of this case it to determine if the Renovation of Old Town Hall is feasible. <br />The EDA reviewed the framework of a Town Hall Renovation and Lease with Small Town Girl Boutique. The EDA <br />was generally supportive of the concept which included estimated renovation cost approaching $50,000 and a <br />breakeven point of about 5 years. On June 22, 2021, the City Council supported the EDA recommendation to obtain <br />quotes and to determine if the project was feasible. <br />Staff has been working diligently to obtain quotes for this project. Contractors are very busy right not and materials <br />and labor are very expensive. Most contractors were too busy to take on the extra work at this time. Staff solicited <br />quotes from six local contractors but only received two quotes: <br />1) Quote 1 (rough quote for ballpark price) $111,900 <br />2) Quote 2 (Complete Quote) $139,270 <br />Both quotes far exceed the preliminary budget of $50,000. The low quote is more than double the RCP estimate. <br />Staff is concerned that the source of the original cost estimate was understated and that the current contactor <br />environment is compounding timing of this project is leading to inflated costs. Staff has reached out the prospective <br />tenant and asked if waiting for a better rate environment would be acceptable. The prospective tenant indicated that <br />if the renovation does not occur very soon she will likely look for another location. <br />Staff is looking for direction. <br />Notification: <br />N/A <br />Observations/Alternatives: <br />Based on the quotes received staff is not comfortable bringing quotes to the City Council for review without an <br />EDA recommendation to do so. Based on the lowest quote (certainly subject to change) the estimated original <br />breakeven point goes from 5 to 10+ years. The only complete quote is from Quote 2, the quote from Quote 1 is a <br />rough estimate and would need to be refined if the EDA were to consider recommending awarding a quote. <br />Discussion relating to a acceptable budget amount or course of action would be welcomed. The EDA will need to <br />review the information presented and ultimately come to a recommendation on how to proceed in relation to the <br />Renovation of the Old Town Hall. <br />If it is determined that now is not the best time to renovate the Old Town Hall the City will not have a tenant with <br />sincere interest in the building. <br />Alternatives: <br />Renovation <br />1. EDA recommend to the City Council to put the Old Town Hall Restoration Project on hold until the rate <br />