HomeMy WebLinkAbout1979-09-11 Minutes1
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MINUTES OF A SPECIAL BOARD OF DIRECTORS MEETING
A special meeting of the Board of Directors was held on Tuesday, September 11,
1979, at 11:30 A.M. in the Directors Room, City Administration Building, Fayette-
ville, Arkansas.
PRESENT: Mayor David Malone, Directors Ernest Lancaster, John Todd, Paul
Noland, Richard Osborne, Phil Colwell, City Manager Don Grimes,
City Attorney Jim McCord, City Clerk Angie Medlock, and Administra-
tive Assistant David McWethy.
ABSENT: None.
CD
0 OTHERS PRESENT: Members of the audience and representatives of the news media.
03 The meeting was called to order at 11:30 A.M. to review the status of the 153.1
Continuing Education Center project and to take action to authorize the mayor
Q and city manager to offer the University of Arkansas the Continuing Education
structure at $3.00 per square foot.
Mayor Malone reviewed that the original proposal was presented to the Board 153.2
of Trustees at the University of Arkansas as a 40,000 square foot structure.
He said the Board of Trustees had, in their minutes, indicated the City Board
should be encouraged to proceed with the project on the basis of the discussion
at the meeting.
Mayor Malone said the architects had spent six -eight months working with 153.3
the Division of Continuing Education to try to design a structure which would
accommodate their needs and provide the facilities needed.
The mayor stated that the low bid was $3,500,000, and there would be some 153.4
other expenses in excess of the basic construction cost, such as underwriting,
establishing a reserve fund, etc. Malone said after receiving bids, he, the
city manager, and the architects had looked at what revenues could be used to
finance the structure. He noted three basic sources of revenue: 1) the
University lease; 2) the parking revenues; and 3) the tax revenue. He said
they have been trying to come up with ways to deduct some costs from the total
cost of the structure, and have now worked out a proposal which would provide
the University with a 40,500 square foot building, to be leased for $3.00 per
square foot. He said University officials believe the building will be adequate
to serve their needs for the continuing education program, and are desirous
of presenting the proposal to the University Board of Trustees. Malone noted
that the Board of Directors had received detailed information on the structure
showing how many people could use each room, floor space of the structure, etc.
He commented that the building would have a 70 -person auditorium and a main
auditorium which would accommodate 400 people. The rooms would accommodate
1,000 people at one time.
Mayor Malone explained the University Building and Grounds committee would 153.5
be meeting Friday, September 14, and asked that the City Board respond to the
proposal to be presented to the Building and Grounds committee.
Malone said he had also talked with developers of the hotel, whoiindicated 153.6
they have secured their interim money and permanent financing and are presently
negotiating with two contractors for final cost figures for construction of the
facility. He said demolition at the hotel site is to be completed by October 1.
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134.1 Director Todd asked if the reserve fund is to be set aside at the front
end and the mayor explained that they must set aside $445,000 for a reserve
fund and the revenue shown on the diagram included in the Board material
reflects earnings from the reserve fund. The reserve fund itself, said
Malone, would not be used until the year 2004 and it would be used to pay on
the principal at the end of the project. The bonds are set up for 25 years,
with the last 20 years to be paying on the principal.
134.2 Director Todd asked where parking revenue figures came from and Mayor Malone
said these figures are based on 220 parking spaces - the ground level space
beside the hotel and center, and the ground level space on the parking lot
across from the hotel. Mayor Malone, in response to Todd, said he feels the
directors will be committing the City to raising the parking fees for those
two lots. Mayor Malone said Young, Hadawi, and DeShazo have indicated to
the City that the charge for parking in Fayetteville is very low compared to
other towns.
134.3 Director Todd asked which deductive alternates are proposed to be deleted
and Mayor Malone said it would be Alternates 2, 6, 9, and 11 (as set out in
the Board material), which would result in a cost savings of $37,200. Malone
said the University has indicated they do not object to these deductions.
He said items #7 (lighting on the stage) and #8 (special lighting in the foyer
and lobby of the first floor) are alsc possible deductions.
134.4 Director Lancaster asked if the City should rebid the project with the
changes and deletion of the sixth floor and Mayor Malone said the city attorney
would be working with the architects to see if they felt the project should be
rebid.
134.5 Malone pointed out also that there were some projected figures listed for
a state sales tax rebate, which Phil Taylor had projected on the basis of what
the City of Little Rock had presented to the State Department of Finance. Mayor
Malone said Mr. Taylor had indicated however, that he is not comfortable with
Little Rock's figures and Mayor Malone noted the projected figures are not
added in, nor are they guaranteed.
134.6 Director Todd asked if they could do some of the parking lot projects
"in-house" to save money and the mayor said they could, but they would be
taking the "in-house" people away from other projects.
134.7 Director Todd asked if they are looking at using approximately $500,000
from the General Fund during the first few years and Mayor Malone confirmed
that this is planned. Todd suggested that this money be returned first to the
General Fund and be set up under an interest-bearing note.
134.8 Director Henry then moved the mayor be granted the authority to offer the
University the Continuing Education Center building at $3.00 per square foot.
Director Osborne seconded the motion.
134.9 Director Todd expressed concern that if they rebid the structure, the
rebid price might be more than the original bid.
134.10 The recorded vote on the motion was:
Ayes: Malone, Colwell, Henry, Lancaster, Todd, Noland, Osborne.
Nays: None.
The mayor declared the motion passed.
134.11 City Manager Grimes commended the Board for the work they have done in
getting the project to this stage.
134.12 There being no further business, the meeting adjourned at 12:20 P.M.
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