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Home My WebLink About56-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 56-25 File Number: 2025-177 GREATER PRODUCTIONS, LLC. (COST SHARE AGREEMENT): A RESOLUTION TO APPROVE A COST SHARE AGREEMENT WITH GREATER PRODUCTIONS, LLC. IN THE AMOUNT OF $1,056,513.00 FOR THE INSTALLATION OF SANITARY SEWER UPGRADES TO SERVE THE PARK HOTEL AND OTHER DOWNTOWN DEVELOPMENTS, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $100,000.00, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, a recent sewer study in the downtown area that was developed in response to multiple planned large development projects has identified a sewer capacity issue on the segment of line that runs west of West Avenue along Spring Street and then south to an existing line that was recently upsized and relocated as part of the development located at 612 W Center Street; and WHEREAS, the City's share of the cost of upgrades is recommended to be 50% in total, which represents roughly the ratio of existing flows to proposed flows once developments that are currently under review in the area are all contributing to the sewer main being upgraded; and WHEREAS, the remaining 50% of this cost will be collected through this cost share and through the collection of development assessments relative to the proportional share of flow that each development contributes; and WHEREAS, Greater Productions, LLC has agreed to pay 10.2% of the total cost, which represents its proportional share of the upgrade impact, and has also agreed to be responsible for construction of the main. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Rawn to sign a cost share agreement with Greater Productions, LLC with the amount of $1,056,513.00 to be paid by the City for the installation of sanitary sewer upgrades to serve the Park Hotel and other planned downtown developments, and further approves a project contingency in the amount of $100,000.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. PASSED and APPROVED on February 18, 2025 Page 1 Resolution: 56-25 File Number: 2025-177 Approved: Molly Rawn, Mayor Attest: Jj�/� Kara Paxton, City Clerk Treasurer Page 2 CITY OF FAYETTEVILLE ARKANSAS MEETING OF FEBRUARY 18, 2025 CITY COUNCIL MEMO 2025-177 TO: Mayor Rawn and City Council THRU: Keith Macedo, Interim Chief of Staff FROM: Tim Nyander, Utilities Director SUBJECT: Greater Productions, LLC - Sewer Cost Share for Park Hotel and Other Downtown Developments RECOMMENDATION: Staff recommends approval of a Cost Share Agreement in the amount of $1,056,513.00 with Greater Productions, LLC for the installation of sanitary sewer upgrades to serve the Park Hotel and other downtown developments, approval of a project contingency in the amount of $100,000.00, and approval of a budget adjustment. BACKGROUND: A recent sewer study in the downtown area that was developed in response to multiple large development projects has identified a sewer capacity issue on the segment of line that runs west of West Avenue along Spring Street and then south to an existing line that was recently upsized and relocated as part of the development located at 612 W Center Street. (See Exhibit attached) The city's share of the cost of upgrades is recommended to be 50% in total; this percentage share represents roughly the ratio of existing flows to proposed flows once developments that are currently under review in the area are all contributing to the sewer main to be upgraded. The remaining 50% of this cost will be collected through this cost share and through the collection of development assessments relative to the proportional share of flow that each development contributes. DISCUSSION: The total cost of this sewer upgrade, including design, construction, and construction administration, is $1,176,518. The Park Hotel's proportional share has been calculated to be 10.2% of this cost, or $120,005. Under this agreement, Greater Productions, LLC, through its contractors, will design and install the sewer line upgrades, with reimbursement by the city at 89.8% of the costs. A contingency in the amount of $100,000 is also requested. This contingency will be used in the event that unforeseen site conditions require changes or additions to the work that increase the cost of the project and are deemed by staff to be the responsibility of the City. BUDGET/STAFF IMPACT: A budget adjustment is attached to move funds into the Water/Sewer Impact Fee Cost Sharing account. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 ATTACHMENTS: SRF (#3) , BA (#4), Greater Productions, LLC. (#5) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas Y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2025-177 Greater Productions, LLC - Sewer Cost Share for Park Hotel and Other Downtown Developments A RESOLUTION TO APPROVE A COST SHARE AGREEMENT WITH GREATER PRODUCTIONS, LLC. IN THE AMOUNT OF $1,056,513.00 FOR THE INSTALLATION OF SANITARY SEWER UPGRADES TO SERVE THE PARK HOTEL AND OTHER DOWNTOWN DEVELOPMENTS, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $100,000.00, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, a recent sewer study in the downtown area that was developed in response to multiple planned large development projects has identified a sewer capacity issue on the segment of line that runs west of West Avenue along Spring Street and then south to an existing line that was recently upsized and relocated as part of the development located at 612 W Center Street; and WHEREAS, the City's share of the cost of upgrades is recommended to be 50% in total, which represents roughly the ratio of existing flows to proposed flows once developments that are currently under review in the area are all contributing to the sewer main being upgraded; and WHEREAS, the remaining 50% of this cost will be collected through this cost share and through the collection of development assessments relative to the proportional share of flow that each development contributes; and WHEREAS, Greater Productions, LLC has agreed to pay 10.2% of the total cost, which represents its proportional share of the upgrade impact, and has also agreed to be responsible for construction of the main. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Rawn to sign a cost share agreement with Greater Productions, LLC with the amount of $1,056,513.00 to be paid by the City for the installation of sanitary sewer upgrades to serve the Park Hotel and other planned downtown developments, and further approves a project contingency in the amount of $100,000.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. Page 1 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2025-177 Item ID 2/18/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 1/31/2025 WATER SEWER (720) Submitted Date Division / Department Action Recommendation: Staff recommends approval of a Cost Share Agreement in the amount of $1,056,513.00 with Greater Productions, LLC for the installation of sanitary sewer upgrades to serve the Park Hotel and other downtown developments, and approval of a project contingency in the amount of $100,000.00, and approval of a budget adjustment. Budget Impact: 5400.7 20.5 700-5815.00 Water & Sewer Account Number Fund 04039.2501 Water & Sewer Impact Fee Cost Sharing - Greater Productions Cost Share Project Number Budgeted Item? Yes Total Amended Budget Expenses (Actual+Encum) Available Budget Does item have a direct cost? Yes Item Cost Is a Budget Adjustment attached? Yes Budget Adjustment Purchase Order Number: Change Order Number: Original Contract Number: Comments: Remaining Budget Project Title $ 2,325,957.00 $ 2,325,957.00 $ 1,156,513.00 $ 1,156,513.00 2,325,957.00 V20221130 Previous Ordinance or Resolution # Approval Date: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number /Org2 WATER SEWER (720) 2025 Requestor: Tim Nyander BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends approval of a Cost Share Agreement in the amount of $1,056,513.00 with Greater Productions, LLC for the installation of sanitary sewer upgrades to serve the Park Hotel and other downtown developments, and approval of a project contingency in the amount of $100,000.00. COUNCIL DATE: 2/18/2025 ITEM ID#: 2025-177 Nolly Black 21312025 77:02 R171 Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED: TOTAL 1,156,513 1,156,513 v.202513 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 5400.720.5700-6602.30 - 1,156,513 04039 2501 RE Transfer from Fund - Impact Fee 5400.720.5700-6602.30 - (600,000) 04039 1 RE Transfer from Fund - Impact Fee 5400.720.5600-6602.30 - (464,000) 04039 1 RE Transfer from Fund - Impact Fee 5400.720.5700-5815.00 1,056,513 - 04039 2501 EX Improvements - Sewer 5400.720.5700-5911.99 100,000 - 04039 2501 EX Contingency - Capital Project 5400.720.4000-4999.99 - 1,064,000 RE Use Fund Balance - Current 2300.730.9300-7602.40 1,156,513 - 07004 4039.2501 EX Transfers To Funds - Water & Sewer Fund 2300.730.9300-7602.40 (1,156,513) - 07004 2 EX Transfers To Funds - Water & Sewer Fund I of 1 AGREEMENT FOR COST SHARE OF SANITARY SEWER IMPROVEMENT COSTS This Agreement, made and entered into on this 31 day of January 2025, by and between the City of Fayetteville, Arkansas ("City") and Greater Productions, LLC (with related entities The Park Hotel, LLC, and Reindl Properties, Inc) ("Owner"), witnesseth: WHEREAS, Owner is currently constructing the rerouting of the Greenway trail, parking for the Metro District and a hotel at 215 W. Spring Street; and WHEREAS, Owner's development partially requires the increase size of a sanitary sewer line on site and downstream of the development; and WHEREAS, Owner will be constructing these improvements through a grading permit issued by the City and the quote for construction of the sewer line is attached hereto as Exhibit A and made a part hereof, and WHEREAS, Owner's proportional impact on the City's sewer infrastructure, and therefore its responsibility for the cost of upsizing the sewer line, has been calculated at 10.2% of the total cost which is estimated to be $1,176,518; and WHEREAS, upsizing the line is necessary to provide sanitary sewer service to this and three other large projects in the area and the City will seek reimbursement as those projects proceed to development. The City will not delay inspections, approvals, or acceptance of the work or withhold payment pending agreements or development progress from other projects. NOW, THEREFORE, the City of Fayetteville, Arkansas and Greater Production, LLC agree as follows: 1. The City of Fayetteville, Arkansas agrees to: A. Reimburse Owner an estimated $1,056,513 which represents 89.8% of the cost of the work describe in Exhibit "A", attached. B. Reimbursement is an estimate and does not include unforeseen scope that could be encounter during the construction of this work. The City of Fayetteville will consider, on a case -by -case basis, reimbursement for any additional costs to rectify the unforeseen or out of scope additions to the project within any project contingency approved by the Fayetteville City Council. C. Payments due to Owner, shall be remitted within thirty (30) days after receipt of valid invoices, and pending successful inspection and acceptance of the phased completed work by the City of Fayetteville Engineering Division. The milestone phases include: Page 1 of 3 a. Payment in the amount of 20% at the time of completion of the first (north) section North South underground (sanitary and storm sewer) scope of work that goes from Reindl Properties property line to the new turning circle on the east. b. Payment in the amount of 30% at the time of completion of the East West underground (sanitary and storm sewer) scope of work that goes from West Avenue to the new turning circle on the east. c. Payment in the amount of 20% at the time of completion of the second (south) section North South underground (sanitary and storm sewer) scope of work that goes from that goes from Reindl Properties property line, south through the adjacent property to the point of connection. d. Final remaining amount of 30% upon completion of the North South backfill, paving, and other repairs do to the scope of work that goes from the new turning circle on the east, south through the adjacent property to the point of connection. D. Authorize the construction of the sewer line for the Phase 1 — B ("offsite sewer replacement') in the current location within the existing utility easement or right of way on the adjacent property owned by the Metro Lofts Homeowner's association. 2. Owner agrees to: A. Provide the necessary and normal project management, inspection, and testing as necessary to complete the work shown on Exhibit "A", in accordance with the City of Fayetteville Standard Specifications, and City Standard Details, both of which are available at http://www.fUetteville-ar.gov/445/En ing eering- Specs-Details. B. Provide a copy of the invoices from the Contractor(s) upon completion and City approval of the street improvements described in Exhibit "A". C. Pay for the sewer improvements (with reimbursement of 89.8% of the cost by the City of Fayetteville). 3. It is further understood that the contract for construction is between Owner and their Contractor and that the City has no contractual obligation with either the Contractor or any agent for Owner. The City's only obligation shall be to participate in this agreement and pay 89.8% of the cost with a not -to -exceed amount of $1,056,513, plus any project contingency approved by the Fayetteville City Council, for the sewer improvements. Page 2 of 3 IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS ABOVE, WE SIGN BELOW: Greater Productions, LLC By: 75w=, -/& w -; 4 c. Brian Reindt Manager le, CEO Two Trout, Developer CITY OF FAYETTEVILLE, ARKANSAS By: MOLLY RAWN, Mayor ATTEST By: KARA PAXTON City Clerk -Treasurer Page 3 of 3 EXHIBIT A Vicinity Map Not to Scale si 4► �,�± f, -4 R->- r r I > �v a V Poo 220 . 1 406 a�vcP ® t VCP 86' 0 30' eAp.� I A % .N > i s 41 --'� ,. 146 r A i 'A/ EXHIBIT B Cost Model Development Budget Date: 10 December 2024 - revised 30 January 2025 Cost Code Hard Costs 80% 20-10 Construction Contract Scope A - Off -site underground sanitary sewer upgrade 20-30 Offsite Engineering, inspections and testing - Olsson Engineering Sanitary Sewer Main Upgrade Demolition of existing aspault Excavation Pump around existing sewer flow Remove existing sanitary sewer main Provide and install with 24" sanitary sewer main 344 if Replace existing manholes with 5' manholes 2 units Survey Erosion Control Backfill Repair paving and curb Scope B - Metro & Park Hotel underground sanitary sewer upgrade Sanitary Sewer Main Upgrade Demolition of existing aspault Excavation Flowfill existing 12" sanitary sewer main Provide and install with 18" SDR sanitary sewer main from existing manhole to new cast inplace manhole 262 if Provide and install 36" steel encasement with anodes 134 if Stormwater Sewer Replacement Remove existing 4 8 " RCP and replace with 4 8 " HP 164 if SUBTOTAL HARD COSTS Soft Costs 20% Design and Construction Administration - 20-30 Onsite Engineering 140 Development and Management 40-10 Developer Fee 40-15 Insurance 40-50 Project Administration 40-60 Development Expenses Underground Utility Cost Sharing USES TOTAL COSTS SOURCES W W Metro / Park Hotel (South Hotel) City of Fayetteville Cost of Work $ 51,755 $ 441,855 $ 28,500 $ 6,800 $ 4,200 $ 310,837 $ 97,267 $ 941,214 SUBTOTAL SOFT COSTS $ 235,304 $ 1,176,518 10.2% $ 120,005 89.8% $ 1,056,513 Two Trout, LLC Project Development 1of1