Title
Enter into Agreements for Building Assessment Services for Former Kmart Building Located at 2526 W. Northern Ave. (Ordinance S-47712)
Description
Request to authorize the City Manager, or his designee, to negotiate and enter into agreements as necessary with Arizona State University (ASU), Maricopa Community College District (MCCCD), Western Maricopa Education Center (West-MEC) and M. Arthur Gensler Jr. & Associates, Inc. (Gensler) for the completion of a building assessment (Assessment) of the former Kmart building located at 2526 W. Northern Ave. (Site). Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item. Upon receipt of the Government Partner's reimbursements, the City's share will not exceed $9,000. There is no impact to the General Fund; funding is available in the Downtown Community Reinvestment Fund (DCRF).
Report
Summary
The City is currently working with various partners to explore the viability for the adaptive reuse of the Site. Community visioning sessions have indicated the desire to repurpose the Site into a center that offers education, workforce training and job opportunities for the community at large. The potential uses being explored include:
- Culinary support services hub
- K-12 and community college education
- Business incubation
- Workforce development
- Skills/technical training center
In 2020, the City contracted with Gateway Community College's Center for Entrepreneurial Innovation (CEI) for the completion of a feasibility study for a culinary support services hub. Further expertise is required to address the structural and mechanical requirements needed to support the various uses being considered for the Site in the form of an Assessment. The CEI feasibility study is separate from these services and is not a part of the requested Assessment.
City staff engaged education partners ASU, MCCCD and West-MEC (collectively, Government Partners) to share in the cost of the Assessment.
The City and the Government Partners have each agreed to pay an equal share of the Assessment cost, not to exceed $9,000 per entity. Each Government Partner will pay the City its share of the cost and the City will pay Gensler the full cost of the services. The City will execute an Intergovernmental Agreement, including terms for remitting payment to the City, with each Government Partner. The City will enter into a separate agreement with Gensler to complete the Assessment and outline reimbursement terms from the Government Partners.
Procurement Information
Staff conducted an informal solicitation, in accordance with the City's Administrative Regulation for procurement, for these services. The City received two proposals:
Gensler: $35,000.00
Architechnology: $66,000.00
The Gensler proposal offered the lowest cost and was selected to complete the Assessment.
Contract Term
If approved, the terms for the Intergovernmental Agreements and Gensler contract will be for one year.
Financial Impact
The cost of the Assessment will not exceed $35,000. The City will pay the full Assessment amount to Gensler. The Government Partners will reimburse the City for their equal share of the Assessment, estimated at $9,000 each. Upon receipt of the Government Partner's reimbursements, the City's share will not exceed $9,000. There is no impact to the General Fund. Funding is available in the Downtown Community Reinvestment Fund (DCRF). Reimbursements received from the Government Partners will be deposited into the DCRF.
Location
2526 W. Northern Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.