8.2 SR 04-07-2025[ITEM_HEAD]
To
City Council
Meeting Date
April 7, 2025
Item Description
LSE Architects Letter of Engagement - Northbound
and Cannabound
Request for Action
Item Number
8.2
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Reviewed by
Joe Audette
Cal Portner
Tina Allard
Action Requested
Approve, by motion, the Letter of Engagement for professional architectural services with LSE Architects
Background/Discussion
The Letter of Engagement between LSE Architects (Architect) and City of Elk River (Owner) provides
standard and special professional architectural services for Northbound and Cannabound to be located in the
City of Elk River - site(s) to be determined. The architect understands that there is a city building design team
of city staff that will be part of the review and approval process.
Financial Impact
The architect requires a $15,000 retainer to begin services upon approval of the engagement agreement.
Retainer is included in the total fee.
Mission/Policy/Goal
Meet changing needs - agile
Attachments
I . Letter of Engagement_03.32.25
2. Exhibit A - LSE Hourly Rates _2025
3. Exhibit B - LSE Reimbursable Expenses_2025
The Elk River Vision
A welcoming community, with revolutionary and spirited resourcefidnm, exceptional service, and community P� d W E R E D 0d
engagement that encourages and inspires prosperityINPaU 249
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March 32, 2025
City of Elk River
Attn: Mr. Joe Stremcha
13065 Orono Parkway Northwest
Elk River, MN 55330
Subject: Northbound (Liquor) and Cannabound (Cannabis) Retail Stores
Professional Architectural Services
Letter of Engagement
Dear Joe and team:
Thank you and your team for the kind words in our last phone conversation — we are thrilled.
Outlined below is a Letter of Engagement between LSE Architects (Architect) and City of Elk River (Owner) to
provide standard and special professional Architectural Services for a new Liquor Store and a new Cannabis Store
to be located in the City of Elk River - site(s) to be determined. Architect understands that there is a City Building
Team of city staff that will be part of the review and approval process.
PROJECT DESCRIPTION
The Owner has begun reviewing sites for Northbound Liquor Retail Store and Cannabound Cannabis Retail Store
in the City of Elk River. Architect understands that there are three relevant project scenarios. Scenario One: There
is one new consolidated store (both liquor and cannabis offerings). Scenario Two: There are two separate newly
constructed buildings — one for liquor and one for cannabis. Scenario Three: There are two separate buildings, the
liquor store to be newly constructed and the cannabis store will be a tenant improvement (TI) within an existing
structure. These options will be determined in the first 30 days of the project. Engineering services will include
civil engineering and landscape design, structural engineering, MEP engineering, as well as added specialty
services regarding low voltage engineering, B3 level building integration, and building energy modeling.
The following project components are included in the design scope of work:
A. Site:
1. Site assessment and placement to verify site capability (fit plan)
2 Review building size, parking count, delivery area, trash, green space, transformer location, and storm
water management
B. Building:
1. Northbound: retail space, counter check out, restroom, back of house, mechanical/janitor
2 Cannabound: retail space, counter checkout, restroom, back of house, mechanical/janitor
3. Both buildings to review utility capacity, structural systems, MEP systems, energy alignment with codes
1401 Glenwood Ave. LSE -Arch itects.corn
Minneapolis, IVIN 55405 (612) 343 10.10
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Page 2
GENERAL CONSTRUCTION BUDGET
Owner has shared that an initial general construction budget is as follows:
Scenario One: Northbound I Cannabound Combined: $6,000,000
Scenario Two: Northbound stand alone: $4,000,000
Scenario Two: Cannabound (new) stand alone: $2,000,000
Scenario Three: Cannabound (TI) $1,000,000
PROJECT SCHEDULE
Owner would like to proceed expeditiously for a project timeline as follows:
• April 7, 2025 City of Elk River— City Council Meeting
• Spring 2025 Programming/ Site assessment/ Concept Design/ Planning/ Select CM
• Summer 2025 Design/ Construction Documents (Specifications)
• Fall 2025 Bidding/ CM award/ Groundbreaking
• Winter 2025/ 2026 General Construction
• Spring 2026 Cannabound Substantially Complete
• Summer/ Fall 2026 Northbound Substantially Complete
SCOPE OF SERVICES
Architect will provide the following:
Project will be organized into three phases as follows:
A. Phase I: Programming/ Site Assessment/ Concept Design/ Planning
Architect will complete the concept design required to achieve city entitlements (if required). This package
will be used for estimating verification as well.
Specific scope of services in this phase may include:
1. Confirm project direction, work scope, entitlement requirements (if any) and issues impacting the project
development. This will include a site visit to perform a existing site walk through.
2 Confirm a building program of spaces (with Owner)
3. Assess site data for fit plan. Key elements include - site access, service, entry points and parking.
4 Develop site plan layout with floor plan diagram based on approved program.
5. Exterior building massing, roof form, exterior expression (materials) and overall 3D image.
6. Interior Design layout indicating primary materials and branding elements
7. Begin services on B3 process and discussion sustainable elements to be integrated
8. Anticipate up to one 90-minute meeting with city officials (code, zoning - as needed)
9. Anticipate up to two 90-minute public engagement meetings with City Building team
1Q Anticipate up to four 90-minute Owner meetings (present plans, building design and interior design
elements for review and approval)
11. Provide concept level price estimate range to review with Owner budget
12 Deliverables may include:
i. Architectural site plan, building floor concept diagram, code plan
ii. Exterior building elevations (four major facades) and 3D massing forms
iii. Entitlement documents (civil engineering and landscape design — if needed)
13. Structural and MEP narrative (system description)
14 Assist Owner in selection of construction manager (CM) (as required)
III,,. IE I Il -- II T il:..: T , IIINC.
1401 Glenwood Ave. 1...5E Arclhitects.corn
Minneapolis, MN 5.5405 (612) 343.1010
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B. Phase II: Design and Construction Documentation (CD's)
Architect will complete the approved design and achieve final construction documentation for the Owner's
CM to bid and subsequently submit for permitting and eventual construction.
Specific scope of services in this phase may include:
1. Architectural/ Interior Design/ consultant CD's and Specifications (Project Manual)
2 Review final pricing (pro vided by Owner CM
3. Anticipate up to three 90-minute meetings with Owner team
4 Complete B3 level review process and energy modeling
C. Phase III — Bidding and Construction Administration
Architect will provide standard administrative services to observe and administer the construction as
described in the documents.
Specific scope of services in this phase may include:
1. Attend one 90-minute governmental agency review meeting (as needed). Additional required meetings
will be billed on an hourly basis.
2 Assist the Owner's CM in successfully attaining the required building permits.
3. Provide monthly site visits through the duration of construction to observe construction adherence with
design intent. Architect assumes 9 - 10-month construction duration.
4 Review and approve required shop drawings and product submittals related to the architecture and
interior design items from the specifications.
5. Provide coordination of RFI's and responses to Owner's CM.
6. Review monthly contractor's Applications for Payment to verify the pay requests are in alignment with
the work installed or stored on the construction site.
7. Provide final construction observation and project punch list upon completion of construction.
PROPOSED COMPENSATION
Based on the project description and scope of services listed within this proposal, Architect proposes to provide
services for a stipulated sum amount as shown below (depending on option selected). A Project Invoice Schedule
of progress/ payments will be created once the preferred Scenario is selected.
Option
Fee (base)
Reimbursable Expenses
Total Base
Scenario One
$423,550.00
$4,200.00
$427,750.00
Scenario Two
$460,500.00
$5,000.00
$465,500.00
Scenario Three
$395,150.00
$4,500.00
$399,650.00
Added special fee items include (in addition to fee structure noted above):
Low Voltage (AV/ security/ data) $ 9,250.00
B3 level process
Energy Modeling (exterior envelope)
31,250.00
28,250.00
Please see the attached EXHIBIT - A for a description of anticipated project related reimbursable expenses. This
includes such things as renderings, mileage, photocopies and other project related materials.
Architect requires a $15,000.00 (Fifteen Thousand Dollarsandno%nts) retainer to begin services upon signature
of this engagement agreement. Retainer is included in the total fee.
As discussed, LSE will execute a formal AIA B101 Owner -Architect agreement for the full scope services through
project duration once this letter is signed.
III,,. IE I IllyUI'TIIE..: "r u IIIN .
1401 Glenwood Ave. 1...5E Ardhitects.corn
Minneapolis, MN 5.5405 (612) 343.1010
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LSE anticipates beginning immediately after receiving a signed Letter of Engagement and the retainer.
ASSUMPTIONS AND CLARIFICATIONS
• Once the site is selected - Owner to provide site surveys showing boundaries, easements, topography,
utilities, roadways, existing construction/buildings, etc.
• Owner to provide geotechnical (soil,boringreport) information for use in design and documentation process.
This information is critical to get design team moving.
• A CM, once selected, will provide design and documentation level construction pricing based on knowledge
of the local construction market. Architect to review this information with Owner.
• Once site is selected - Owner to verify utility capacity.
• Furniture/ Fixtures/ Equipment (FF&E) is limited to initial conversation in this engagement letter. LSE wants to
discuss with you and your team in detail about full services of specifications, selection, and administration of
this item.
On behalf of LSE, we appreciate the opportunity to serve the City of Elk River on the design and ultimate
construction of this important project and we look forward to creating a dynamic solution for your team. Please
contact us should you have any questions or comments related to this Letter of Engagement. If this engagement
letter meets with your approval, please sign below and return one copy plus the retainer to our offices for our
records. LSE will work to develop an AIA B101 agreement for full execution and signature.
LSE Architects Inc.
uintin J. Scott, , AIA
President I Principal Architect
Approved:
Brian Tempas, AIA
Principal I Sr. Architect
City Representative (title) Date
Cc: Mohammed Lawal, FAIA
Brenda West, Interior Designer
Attachments: EXHIBIT -A LSE Reimbursable Expenses
EXHIBIT - B LSE Hourly Rates
III,,. IE' IIh'�III ril:..:c" , III 1401 Glenwood Ave.
Minneapolis, MN 5.5405
I...SE Ardhftects.corn
(612) 343.1010
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EXHIBIT A - LSE HOURLY RATES
Category/Position Billing Rate Description of Category
Principal $250 - Principals who lead client projects
Senior Professional $150 - $200 - All registered or licensed professionals with 10 years or more experience
- All personnel in equivalent roles in related professional disciplines in which
there is no registration, but who have 15 years experience in their field including
10 years experience in leadership roles in those related disciplines. Examples of
these disciplines are: Construction Administration, Design, Technology or
similar areas of expertise.
Professional
Professional Support
Technical
Clerical
Effective January 1, 2025
Subject to Periodic Adjustment
$100 - $125 - New registrants and all registered professionals with less than 10 years since
registration
- Non -registered Architectural or Design personnel who have more than 15 years
experience in their professional discipline and are in direct professional
leadership roles in their field.
- All personnel in equivalent roles in related professional disciplines in which
there is no registration, but who have 15 years experience and are in direct
leadership roles in their field. Examples of these disciplines are: Construction
Administration, Design, Technology or similar areas of expertise.
$85 - $100 - New professional degreed graduates and interns who are not yet registered
- Non -registered Architectural or Design personnel who have 10 years
experience in their professional discipline under the supervision of registered
professionals or related discipline professionals.
All personnel in related professional disciplines in which there is no registration,
but have 10 years experience in their field. Examples of these disciplines are:
Construction Administration, Design, Technology or similar areas of expertise
and work under the supervision of others in their field.
- Drafters, CADD technicians, Designers and similar technicians without
registration, but with 10 years experience in their professional support field
$75 - Non -registered Architectural or Design personnel who have less than 10 years
experience in their professional discipline.
- All personnel in related professional disciplines in which there is no registration,
but have less than 10 years experience in their professional support field.
- Drafters, CADD technicians, Designers and similar technicians without
registration, but with less than 10 years experience in their professional support
field.
- All Administrative support, clerical and word processing personnel with 10 years
experience.
$50
- All Administrative support, clerical and word processing personnel with less than
10 years experience.
II....S IIE.:, A IR C IH III "'r IE' "'Ir u IIINC.
1401 Glenwood Ave. LSE-Archil:ects.com
Minneapolis, MN 55405 (612) 343.1010
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EXHIBIT B - LSE REIMBURSABLE EXPENSES
Description
Rates
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Reproduction
8-1/2" x 11" B&W --------------------------------------------------------------------------------
$ .15
8-1/2" x 11" Color --------------------------------------------------------------------------------
$ 1.35
11" x 17" B&W ------------------------------------------------------------------------------------
$ .30
11" x 17" Color ------------------------------------------------------------------------------------
$ 2.50
HP Plotter Bond ----------------------------------------------------------------------------------
$ .75/sf
CANON Plotter 7 mil Matte or Satin ----------------------------------------------------
$ 7.25/sf
Foam Core Boards (depending on size)
$5.00 — 15.00
Mileage (rate per mile)
Prevailing Government Rate
Air Fare
As billed to LSE
Auto Rental
As billed to LSE
Other Transportation
As billed to LSE
Parking and Tolls
As billed to LSE
Meals
As billed to LSE
Lodging
As billed to LSE
Postage/Delivery Charges
As billed to LSE
Telephone (Long Distance)
As billed to LSE
Materials and Supplies
As billed to LSE
Models and Renderings (Presentation)
As billed to LSE
Photographic/Film
As billed to LSE
Codes/Ordinances
As billed to LSE
Legal
As billed to LSE
Consultants
Cost plus 10% - 25%
Sales Tax, If Applicable
As billed to LSE
Project Reimbursable Expenses will be invoiced at cost plus 10%, except Consultants which
will be billed as noted.
Effective January 1, 2025
Subject to Periodic Adjustment
II....S IIE.:, A IR C IH III "'r IE' "'Ir u IIINC.
1401 Glenwood Ave. LSE-Architects.com
Minneapolis, MN 55405 (612) 343.1010
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