During the Commission meeting on Monday, the funding for the highly talked about Field House was finally pinned down. A bank loan with chamber member CenterState Bank has been approved by the Commission to begin funding the first part of this massive project. CenterState Bank presented two different bid choices, along with bids coming in from five other banks.
It all begins with Phase 1, which was presented at the Commission meeting on Monday night. This presentation includes Phase 1 development, budget, path to completion and financial approach.
Interlocal Agreement approved by Winter Haven May 8, 2017 and the BoCC May 16, 2017. The TDC has provided $1M (of pledged $10M) up front to offset design and engineering costs. Furthermore, in consideration of the Lakeland Magic utilizing the Field house as a practice venue, the TDC will contribute an additional $1M (for a toady of $11M).
Pathway Towards Completion
Staff is recommending a Construction Manager at Risk (CM@R) delivery method for the project. This involves separate contracts for design and construction services, with both in place during the design. this method allows for continuous value engineering during the design and can also reduce overall delivery time.
RFQ for Architectural Services
Advertised: June 12, 2017
Closed: July 6, 2017
Short List by Committee: Late July 2017
City Commission: August 2017
RFQ for CM@R
Advertise: Late July 2017
Closing: Late August 2017
Short List by Committee: September 2017
City Commission: September 2017
Financial Approach: Bank Loan versus Bond Issuance
2. Competitive Bond Issuance
A. Larger borrowing amounts and maturities beyond 20 years
Request for Proposals from Financial Institutions
Advertised: June 5, 2017
Closed: June 23, 2017
June 28 & 29- Staff, Financial Advisor, Bond Council and City Attorney met via conference calls to discuss bids. The consensus of the group was to recommend CenterState's offer.
Loan Amount Pledged: $25,225,00
The loan amount pledged is based on a project amount of $25M. Given that the completion estimate is based solely on the master plan and the uncertainty of the construction market, staff recommends this amount to allow for contingencies. Any funds not used could be allocated for other projects as selected by the City Commission.
Principal Payment Option
Financing Action To Be Taken
Rate Lock: July 24, 2017
Loan Agreements: August 14, 2017
Closing: After August 14, 2017
Fire Station #3
After this project is completed, if there is any left over money, a third permanent fire station will be added to Cypress Gardens Boulevard. The land where the desired fire station would be placed is already owned by the City, but would still cost them $3.1 million to make it happen.
The City acquired 6.37 acres in 2016
(Commission approved June 27, 2016)
Purchase Price: $425,000
Appraised Value: $575,000
Projected Development Costs
Design (10%): $280,000
Here is a list of the call volume January 1 through December 31, 2016.
Average Response Time: 00:07:55
City Manager's Recommendation
With respect to financing the construction of the Field House at Chain of Lakes Parks, the City Manager recommends the City Commission take the following actions:
1. Secure a Bank Loan in the amount of $25,225,000
2. Deferring principal payments for one year
(The City's portion of the estimated first year payment (FY17/18) will be $550,814)