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HomeMy WebLinkAboutcoa.cclc.min.07162008COMMERCIAL CORE & LODGING COMMISSION MINUTES JULY 16, 2008 Bill Dinsmoor called the meeting to order at 8:30 a.m. Commissioners in attendance were Fred Ayarza, Mark Goodman, Roger Haneman and John Starr. Excused where Don Sheeley and Terry Butler. Steve Barwick presented the history of Burlingame. The property was bought for 2.6 million dollars. In 2000 the City actively started planning the site. MAA seasonal housing was built and there was a land swap with the Zoline's. 225 units where proposed. The City did a land with AVLT and we did the Cozy Point easement. At that point the units that could be built went up to 330 units. The COWOP goals indicated no stacked units and the units should look more like a townhome. We then bought Annie Mitchell and 31/2 acres behind BMC west on the back side of Deer hill. At this point we have 400 units that we paid 2.6 million for in the Burlingame site. The brochure number of 74 million was not the total cost. It was never the budget. At that time Council talked about direct cost so that they could compare apples to apples. They took out the cost of utilities and what the land cost. Those numbers are the direct Shaw build numbers. It was a hard fixed bid. It did not include the infill structure. Development model. The Risk factors are getting through city council. We decided to entitle the land before we go to bid. The risk factors for developers are the utilities, water, roads, electric and sanitation. There is also soil testing. The brochure did not include the costs of the project for infill structure. We have 6 million already into the project. The difference now is 5.5 million due to increase of landscaping costs, the upgrade of 20 year roofs, etc. which equals a 12% increase. The costs per unit is $559,000 or $540,000 to actually produce the unit which now includes the land, infill structure, staff time the trails etc. We have spent 58 million dollars already. Snowmass Ski Company is building units and they cost $696,000 per unit which is higher than Burlingame. Cost wise Burlingame is not out of control. The City has learned out of this. We need to do a better job in reading numbers. 1 COMMERCIAL CORE & LODGING COMMISSION MINUTES JULY 16, 2008 John asked what has to happen in the community in order to get this going. Steve said we have a construction work group that is working with the designers to see what can be built on the site. We can probably fit in 30 more units. We are also doing a performance audit and dollar audit. We will take the recommendations and simplify the design and standardizing the size to allow for modular structures. That will help lower the cost and manage the cost. Then the idea is you head for a bond issue in November. We are also looking at a partnership. The school and hospital want 20 units and the county wants 5 units. The RETT money funds Burlingame. If you cash fund it, it will take us decades to building anything. The only thing to do is leverage. Bill also mentioned the ownership issue. Use of the inventory needs to be thought out. Roger inquired about land purchases 1997 to 2007. Steve previously we have not purchased much. John said he agrees that the City needs to spend money and buy it now. Tom Cardomen who is on the open space board feels it is better to pay for it now. Bill asked Steve about the recycling ordinance. Measurements where requested from the Environmental Health department and they did nothing. They are very defensive about recycling and the CCLC is not on board. Internet access John pointed out that the telephone companies are now getting involved with internet. Public, Andrew Kole said the city should look into economic mitigation for those businesses that are affected by projects that take two to three years to build. John said there is business interruption insurance available which covered different levels. Meeting adjourned at 11:00 a.m. Kat Teen J. Strickl d Chief De u Clerk ~. jS 2