7.8. SR 01-06-1997ITg[l '/.8.
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MEMORANDUM
iver
Mayor and City Council
FROM:
DATE:
SUBJECT:
Pat Klaers, City Administrator
January 6, 1997
Northbound Liquor Store Project
Update
Per direction of the City Council, staff is working with the architectural firm
of Tushie Montgomery Associates, Inc. on the design of a new Northbound
Liquor store. At this time, the proposal is scheduled to go to the Planning
Commission on January 28 and to the City Council on February 18 for its
conditional use permit approval. Additionally, it is tentatively scheduled
that the City Council also authorize the advertisement for bids for the project
on February 18, 1997.
The City should know much more about the project cost estimates by
February 18, but we can discuss the finances of this project in a very
preliminary fashion at this upcoming meeting. We are still looking at the
actual construction cost of approximately I million dollars before any soft
costs for architectural or construction management services or F/F & E are
included into the project. The cash balance of the liquor store fund improved
this past year, but the City will still need to issue revenue bonds for part of
this project.
The Tushie Montgomery firm is completing a similar liquor store project for
the City of Richfield, and in Richfield a construction management (C.M.) firm
was used on the project. This approach was used rather than the general
contractor approach and Gary Tushie is convinced that the C.M. approach
saved Richfield some money. I would like to talk to the Council on Monday
about the possibility of using this approach for the Elk River liquor store
project.
On a different topic, I am pleased to advise the City Council that we have a
signed purchase agreement between the City and Mr. and Mrs. Hartman for
the purchase of a Westbound Liquor Store site. Closing is expected on this
1.5 acre site at the end of January.
s:kcouncilknbliqup.doc
13065 Orono Parkway ° P.O. Box 490 · Elk River, MN 55330 ° (612) 441-7420 · Fax: (612) 441-7425