Potential Community Center Expansion

Potential City Campus Master Plan Project/Community Center Expansion

Community Center – Current Status of Project

Based on direction at the October 9, 2018 Special City Council meeting:

After years of input, analysis and discussion, the City is now working on fine tuning designs and working toward bids in 2019 for a potential expansion of the existing Andover YMCA/Community Center.  An expansion is contemplating a new multipurpose arena to accommodate turf and ice, a new indoor walking track, a one gymnasium fieldhouse expansion for court sports, additional meeting/multi-use flex space and corresponding.  The expanded facilities are intended to meet the current and future recreational needs of the community.   The budget target for this expansion is targeting less than a $100 annual property tax increase on a home valued at $250,000.   City Administration is estimating that would yield a $16.8 million maximum budget for the project.

PROJECT HISTORY

This Potential expansion project has had significant discussion over the past years by the City Council and the Community Center Advisory Commission.  Expansion has been identified in the Capital Improvement Plans (CIP) starting with the 2013-2017 CIP to the current 2018-2022 CIP, each CIP is adopted after a public hearing.

CIP Page excerpts are available for viewing below. 

RECENT PROJECT HISTORY 

(Minutes of meetings are available on the City website once approved by the City Council)

On September 19, 2017, Pursuant to the 2017-2021 Capital Improvement Plan (CIP) the City Council approved soliciting Request for Proposal (RFP) for Project 17-26, Explore Community Center Expansion.  The following is the original schedule that was provided in the RFP:

Programming, Schematic Design & Project Budget Development Phase - November 2017 to May 2018

City Decision Point on Expansion Components – May/June 2018

Design/Construction Document Phase based on City Decision Point Direction:  June 2018 to November 2018

Issue Documents for Bids:  November - December 2018

Receive Bids:  February - March 2019

Award & Notice to Proceed:  March - April 2019

Potential Construction:  May 2019 – May 2020

On December 5, 2017, the City Council approved the 292 Design Group (292) as the architectural firm to provide architectural services to explore expansion of the Andover YMCA Community Center.  The programming, schematic design and project development phase was approved working toward a decision point date in June 2018 as to what components of an expansion may progress to construction documents.

On January 2, 2018, the approved RJM Construction as the construction management firm to explore expansion of the Andover YMCA Community Center. 

On February 1, 2018, City Staff and 292 held a stakeholder meeting with many of the local sports associations, school officials, Fun Fest representatives and Andover YMCA.

On February 12, 2018, City Council and Community Center Advisory Commission was updated on the stakeholder input and the Council & Commission provided their goals for the project.

On March 27, 2018, the City Council reviewed the estimated space needs provided by 292 Design based on stakeholder input.

On April 24, 2018, the City Council reviewed updated planning drawings for the Community Center based on stakeholder input.

On May 22, 2018, 292 Design Group provided preliminary schematic designs that will address the requests of the stakeholder groups and updated the Council on engagement with the YMCA on their potential participation in an expansion. Also, Construction Manager, RJM Construction was available to provide their expertise and high-level budgeting for the schematic design.  The Council was asked to provide what additional information they would want for the June 26, 2018 Decision Point meeting.  The following list was provided:

• Tax impacts for construction for multiple options of components.

• Tax impacts for operations for multiple options of components.

• A presentation of deferred maintenance cost on the existing facility, prioritized.

• Break out the component options, in more detail and allocate the parking costs.

• Provide analysis on options that cover operation costs and those that do not.

• Provide stakeholder validation and more detail on justification of the need.

• An evaluation of the new School District assets and how that will impact an expansion.

• Evaluation on senior and teen services, with or without the YMCA providing the services.

• Evaluation of the economic development impact of an expansion.

• Analysis of the City investment in like-kind sports such as: baseball, soccer, football, lacrosse, etc.

• Review the Artificial Turf Task Force findings.

• Evaluate community growth and home turnover.

On June 19, 2018, the Andover Hockey Association made presentation to the City Council indicating the Associations desire to contribute a $500,000 toward a multi-purpose arena.  The payment would be made over ten years.

On June 26, 2018, the City Council received an update from 292 Design Group relative to exploring the expansion of the Andover YMCA Community Center.  Focus of the presentation/discussion was responding to question list generated at the May 22nd City Council workshop.  RJM Construction provided their expertise and high-level budgeting for the schematic design, the preliminary estimate cost for all components and site work ranged from $18,350,000 to $21,100,000.  City Staff provided analysis and the tax impacts of the various options for a potential expansion. Stakeholders also provided input at the meeting.

The Council agreed to move forward with design/development plans of all the components for future review.  City Staff was also directed to explore the use of Park Dedication as a potential source of funding.

Design/development will continue the work started under the original contract with 292 Design Group in December 2017. The work will develop the drawings for proposed expansion to a level that RJM Construction can provide comprehensive cost estimating and budget recommendation, and carefully define the proposed expansion. Design/development will include refinements to the existing plans to more accurately meet the city’s goals for the expansion and resolve how the future expansion integrates with the existing building.  The documents will be completed to a level that are complete enough so that if the project is delayed for any reason the documents can be used in the future with clear understanding.  Also included is constructing a 3D Revit model of the existing building. This will bring the existing drawings up to current design and drawing standards and more accurately define how the potential additions and remodeling fit with the existing building.

On July 19, 2018, City Administration provided an update to the Park & Recreation Commission on where the City Council is in the process of determining components of a potential expansion of the Andover/YMCA Community Center and discussed the merits using park dedication funding as a possible funding source.

On August 16, 2018, the Park & Recreation Commission discussed the merits using park dedication funding as a possible funding source of a potential expansion of the Andover/YMCA Community Center (multi-purpose arena).  The Commission voted to contribute $1M of future park dedication toward the facility expansion.

On August 28, 2018, the City Council received an update from City Administration on the design/development process and a review of the most recent component drawings.  Council discussion focused on teen and senior programming and the partnership with the YMCA.

On September 25, 2018, the City Council received a brief update from City Administration on the design/development process for the potential expansion of the Andover/YMCA Community Center.  Administration advised that on October 9, 2018 a Special City Council meeting has been scheduled for an update/discussion on the design/development progress, partnership/stakeholder progress, current construction cost estimates, construction budgets, construction timing for potential components, and proposed timing of needed Council decisions to move forward.  

On October 9, 2018 the City Council received a presentation (presentation materials available for viewing below) from 292 Design Group (architect), RJM Construction (construction manager) and City Administration based on an updated drawing dated September 17, 2018 (available for viewing below).  That drawing was used to facilitate the discussion at the meeting with the Council.  The drawing was also what RJM used to produce their most recent cost estimates.

City Administration indicated the biggest change from previous drawings is the change to the addition to the Fieldhouse down to only one gymnasium from two.  The YMCA is contemplating one gymnasium as a possibility for their expansion in a location closer to their current operation, that is triggering a shifting of the southerly road to the existing facility, but then could limit the impact to the northerly road with a smaller fieldhouse expansion.

Other changes to the drawings were the fine tuning of all the spaces with further design/development discussions with City staff and stakeholders and the connection of the west parking lot to the Veterans Memorial Boulevard extension project.

RJM’s most recent cost estimate ($18,976,377) does outline costs in total and for various component breakouts to match the color-coded drawings from 292 Design, as listed below:

No. 1:             Multipurpose Arena Breakout (11,281,761)

No. 2a:            Multipurpose Breakout #1 - Adjacent to Arena ($1,118,694)

No. 2b:            Multipurpose Breakout #2 - Adjacent to Fieldhouse ($1,653,900)

No. 3:             Fieldhouse Breakout ($2,249,574)

No. 4a:            Sitework-West Side Breakout – parking lot ($2,052,382)

No. 4b:            Sitework-East Side Breakout – parking lot ($620,066)

City Administration indicated, that the drawings used for the construction estimate (dated September 17, 2018) have since had finer tuning through additional design/development discussions.  Those discussions (value engineering) have the potential to yield cost savings in the following areas:

-Precast Plank & Wall Panels

-Storefront & Glazing Systems

-Plumbing

-Electrical (primarily fixtures)

-Landscaping & Irrigation

-Parking Lot (size – performance parking)  

City Administration also indicated that the construction estimate does not include deferred maintenance items for which a separate estimate was provided.  Those items were estimated as if they were stand-alone projects, but maybe able to be delivered at a lesser cost if wrapped into an expansion project.  For example, the cost of converting the existing ice sheet from R-22 to ammonia, as a deferred maintenance item is listed at a cost of $1,086,323, but if paired with an expansion project, RJM believe it to be an addition of $550,000.

City Administration discussed financing of a potential project, indicating he was working with the City’s Fiscal Advisor, Ehlers and Associates, and the City would obtain the best possible interest rates and overall borrowing cost for a Community Center expansion, as well as the most control over debt repayment and prepayment terms, via a competitive bid offering of General Obligation (GO) bonds.  Minnesota Statutes provide cities with two options for GO bond financing of community/recreational facilities: (1) GO Referendum bonds, and (2) GO Tax Abatement bonds. Interest rates would be the same with either option, as investors would look to the City’s GO pledge and credit rating, and not the specific GO bond authority used.  For GO Referendum bonds, a vote of the residents would need to be coordinated, and for GO Tax Abatement bonds the Council would just need to approve a resolution to move forward.  It was noted the City has already used GO Tax Abatement bonds in 2012 to refinance the 2006 and 2007 EDA Lease Revenue refunding bonds on the current Community Center. 

New Revenue for the project was discussed, the Park & Recreation Commission after discussing the merits using park dedication funding as a possible funding source of a potential expansion of the Andover/YMCA Community Center (multi-purpose arena) did vote to contribute $1M of future park dedication toward the facility expansion and the Andover Hockey Association has indicated the Association’s desire to contribute $500,000 toward a multi-purpose arena (The payment would be made over ten years).

City Administration and the Finance Department have conducted Operational Analysis & Property tax Impact for the project.  Finance using the updated construction estimate, identified expansion project component changes (reduced fieldhouse), and additional revenue sources has updated the financial model and tax impact analysis for a potential expansion project.  The financial model and property tax impacts were presented and discussed with the City Council at the October 9th meeting (The property tax impacts are available for viewing below).

The City Council decided to move forward with design documents to prepare for bid and direct staff to find value engineering, including aesthetics, squeezing multipurpose spaces, and the items listed in the City Administrator’s report, to reduce the tax impact to $100 per year or less for a $250,000 valued home.

On October 23, 2018 the City Council received an update from City Administration on the value engineering process, indicating that meetings have been conducted with RJM & 292 to determine appropriate. The Council also asked that referendum discussion be part of the November workshop meeting.

Upcoming meeting:

November 27, 2018 is a workshop meeting where City Administration anticipates reporting back on the value engineering process.  Also, the Council will be discussing whether or not the project will be put out for a referendum vote.       

CIP 2013-2017                       

CIP 2014-2018

CIP 2015-2019

CIP 2016-2020

CIP 2017-2021

CIP 2018-2022

June 26, 2018 Andover Options presentation

Funfest Booth 2018 Discussion Boards

Sept 17, 2018 Construction Est. drawings

Oct 9, 2018 Andover Com Ctr presentation

Oct 9, 2018 Tax Impact w-options

Tax Impacts for a $16.8M budget