HomeMy WebLinkAboutIR 7882 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7882
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To the Mayor and Members of the City Council
December 13,1994
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.ex 6 Subject: WILL ROGERS LIVESTOCK FACILM PROJECT
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BACKGROUND
In early spring 1993, the City Council received a briefing regarding the construction of an
additional livestock facility at the Will Roger's Complex. The planned facility is to compliment
the existing Equestrian Center. This additional facility allows for the expansion of both current
horse related events and enhances the ability to attract other types of livestock events (i.e.cattle).
The expanded facilities also increase the related livestock and agricultural events held in
conjunction with the Southwestern Exposition and Livestock Show.
The construction of the facility is proposed to be partially funded through public general
obligation financing and from both retained earnings and private fund raising efforts by the
Stock Show organization. In order to accommodate this funding scenario, the Stock Show Board
requested that the City Council consider a re-negotiation of their contract which included a
rental reduction from $200,000 annually to $100,000 annually for a fifteen year period.
The project cost and re-negotiation of rental rates are based on an estimate of$8,000,000 facility
cost and $550,000 cost to relocate Harley Street. The City Council endorsed the project and the
steps were taken by both the Stock Show officials and City staff to meet the goals of having this
new facility available for the Centennial celebration of the Southwestern Exposition and Live
Stock Show in January 1996.
11. SCOPE AND STATUS OF PROJECT
On June 18, 1993, the City Council approved the sale of$5,000,000 in Certificates of Obligation
for the construction of the new livestock facility. This C.O. issuance included $4,000,000
dedicated for the facility and $1,000,000 for infrastructure improvements (relocation of Harley
Street, Rip Johnson and Watt Drive extensions) necessary for the project. In July 1993 the City
Council also approved an architectural contract with Hahnfeld Associates for the design of the
facility including demolition of Barn No. 5,and construction of the infrastructure improvements
and the facility.
On May 31, 1994, a contract for the Harley relocation was approved and this portion of the
project is substantially complete.
Bids were received for the remaining portions of the project (facility and other infrastructure)
on November 23, 1994.
The low bid was $11,100,000 by Burford-Thompson Company. The components of the bid:
Livestock facility $10,741,000
Infrastructure 357,000
Trench 2,000
The architect estimate was $7,910,525 (livestock facility &7,592,050, infrastructure $318,475).
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7882
&IOtTEs? December 13,1994
eF Sir To the Mayor and Members of the City Council Page 2 of 2
XA Subject: WILL ROGERS LIVESTOCK FACILITY PROJECT
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The low bid exceeds the budget estimate by $3,189,475.
Facility Bid $10,741,000
Estimate 7,592,050
$ 3,148,950
Infrastructure Bid $ 357,000
Estimate 318,475
$ 38,525
Trench Safety $ 2,000
The City staff, architect low bid contractor and Stock Show representatives have been in
extensive discussion in an effort to reduce the project as appropriate and discuss financing
options to fund the balance of the cost.
There preliminary discussions have resulted in an estimated $500,000 of reductions in the scope
of the facility (which will still result in a funding shortfall of $2,648,950.) without adversely
impacting the quality and long-term functionality of the building. Historically, the Stock Show
organization has made contributions from retained earning for facility improvements which
benefit the Will Rogers Complex The construction of this facility as orginally planned already
impacted the availability of funds for these discretionary projects.
The City staff is currently reviewing different rent scenarios in the event that the City Council
determines that such an arrangement is reasonable. Stock Show representatives are developing
their funding strategy to assure that this project can be constructed and the January 1996
Centennial celebration goal met and as part of this strategy they have requested that additional
restructuring of the rental rates be reviewed to assist in meeting this shortfall.
IV. SUMMARY
Due to the extreme constraints of time available for the construction of this facility, this item will
appear for action (award of construction contract) on the December 13, 1994 City Council
agenda. The final M & C will be available as soon as possible for distribution. Any delay
beyond the December 20, 1994 meeting date will make it difficult for the facility to be completed
by the January 1996 target date.
For a2diti n I i formation contact Mike Groomer, Assistant City Manager at 871-6122.
Bob rrell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS