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RFD- 3436 Business Items   Item #   10. b.    
Regular Council Meeting Agenda
Meeting Date: 11/26/2018  
Title:    #3, 420 King Street Expansion - Levasseur
Department: Planning & Infrastructure  
Strategic Vision Element: Where People Choose to Live - A dynamic city with an exceptional quality of life Related Goal: Spruce Grove has a well-balanced arts and culture environment that reflects the interests and needs of the community.

Information
Request for Decision Summary
To approve the Spruce Grove Public Library and Allied Arts Council of Spruce Grove Gallery expansion project including work currently completed, committed, and planned at the #3, 420 King Street leased space.
 
Proposed Motion
That the City of Spruce Grove enter into a lease agreement for additional space located at #3 420 King Street for an annual lease cost of $182,640 along with a sub-tenant lease agreement with the existing tenant for an annual revenue of $62,212 and;

That Phase I of the sub-tenant lease build out be approved with a projected budget of $150,000 and;

That an expense of $871,000 to expand and reconfigure existing spaces at the Spruce Grove Public Library be approved.

Background/Analysis
The City of Spruce Grove signed the Assumption of Lease for #3 420 King Street within the King Street Mall from Frontline Fitness on June 1, 2018 for 7,350 sq. ft. The lease space costs are $16.00 per sq. ft. base lease cost and $8.85 per sq. ft. operating lease cost. Total Annual City lease cost $182,640.00. This space has been leased to allow library expansion of an additional 4,467sq. ft.

Alberta Strength and Fitness was a subtenant with Frontline Fitness and will become a subtenant of the City of Spruce Grove occupying 2503.5 sq. ft. for a total monthly cost of $ 5184.33 at the same rates as above to the City of Spruce Grove. The space will be divided and rent costs for the subtenant space are being recovered. Total annual cost for library expansion space is $120,428.04 per year.

Facilities Management has tendered and engaged ACI Architects (ACI) to design the library expansion and subtenant space separation. After design work was completed, the City of Spruce Grove engaged LVCM Consultants (LVCM) to cost this project into three phases. Jen-Col Construction (Jen-Col) reviewed costs and commented on the estimated budget projections. 
 
      Subtenant build out, estimated budget $150,000
      Base library expansion, estimated budget $871,000
      Grant contingent expanded scope library expansion (based on matching grant funding)

The Spruce Grove Public Library in cooperation with the Allied Arts Council of Spruce Grove submitted a grant application to expand the renovation project scope.

Subtenant Build-out
The City has tendered and awarded Prologic Construction Limited with the subtenant fit out project, which is underway with a projected ending balance of $150,000. Current spending on the fit out project as of Nov 18, 2018 is $84,809.

Base Library Expansion
The design changes at the Spruce Grove Public Library and the Allied Arts Council of Spruce Grove Gallery that were originally contemplated will expand the current city space by 4,467 sq. ft.  Involving the renovation of all spaces outlined in figure 1. This was identified for budget costing and estimated at $871,000.  

Grant Contingent Expanded Scope Library Expansion
During the design phase with ACI, meetings were held with the Spruce Grove Public Library and Allied Arts Council of Spruce Grove. Additional scope for renovations were developed which included: creating a new children’s area, improving back of house for library operations, expanding technology lab, and relocation of customer service operations. These changes were not contemplated during the initial provision of space or budget development. The estimate of the renovation with expanded scope was $1,794,000 to $2,029,000.

Total funding available for the project, should the Library be successful with its grant application, will be $1,742,000. This will not be enough to complete all items in the requested expanded scope library expansion project.
Options/Alternatives
Upon receiving the results from the grant application in 2019, options to consider are:

     o Not awarded grant: Complete all work in base library expansion to a budget of $871,000.
     o Awarded grant: Complete revised project scope of work up to a maximum of $1,742,000. $871,000 from City / $871,000 from grant.
Consultation/Engagement
 
Implementation/Communication
 
Impacts
 

Fiscal Impact
Financial Implications:
The funding implications of the Phase I construction of $150,000, the annual revenue and expenses related to the lease agreements and the renovation of the Spruce Grove Public Library of $871,000 have been reflected within the 2019-2021 Recommended Corporate Plan as presented at the Committee of the Whole meeting November 6 to 8, 2018. 

Should this RFD not be approved or materially changed as a result of Council deliberations, a corresponding adjustment will be made to the corporate plan document prior to finalization.
Attachments
King Street Expansion

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