CITY OF CALLAWAY BOARD OF COMMISSIONERS SPECIALI MEETING MINUTES OCTOBER 15,2024-4:06P.M.  The City of Callaway Commission met in a Regular Session on Tuesday, October 15, 2024. In attendance were Pamn Henderson, Mayor, David Griggs, Mayor Pro tem, and Commissioners Bob Pelletier, Scott Davis, and Kenneth Ayers. Also in attendance were Eddie Cook, City Manager, Kevin Obos, City Attorney; Ashley Robyck, City Clerk; Jay Mitchell, Administrative Support Clerk; David Schultz, Director of Finance; The meeting was called to order by Mayor Henderson, followed by the Pledge of Allegiance and roll call.  Bill Frye, Director of Public Works/Planning; and David Joyner, Fire Chief.  MAYOR'S INSTRUCTIONS Corrected the agenda stating there will be no comments from the  commissioner/staff, and no public participation on non-agenda items.  REGULAR AGENDA  1. CM2024-12 Beacon Point Construction Bid - Accept/Reject/C Option Discussion City Manager Cook advised that the bid for the Beacon Point Project came in high and that there was only one bidder. After discussing it with the developer and grant admin, it is recommended that the bid be City Manager Cook clarifies there are two phases to this project, the out parcel and the second phase being the strip mall. The out parcel is currently being worked on, which is what this bid is for.. City Manager Cook also mentions how he got a lot of feedback saying companies wanted to bid on it, Felicity Edwards, Grant Administrator with Gouras & Associates joins in through a voice call.  rejected.  however, many tend to avoid demo work.  City Manager Cook goes over the 4 options the State has approved:  1. Reject the bid. Rebid the project with the current plans to include a demo.  2. Reject the bid. Remove the demo portion ofthe project and request the developer to demo and offer the use of the CRA demo grant to assist in offsetting the cost. This will be at the discretion of the developer and may delay the project to complete the demo. The project will be rebid with the demo portion oft the bid removed. This will also cost the city CRA funds that are not part of the project. 3. Reject the bid. Allow the developer to contract with the city to demo the building outside of the grant to be 100% reimbursed by the developer. The project will be rebid with the demo portion of the bid removed. This will expedite the process. It will also show the public movement on the project. We have been told by outside contractors that they did not bid on the job because of the  City of Callaway Special Meeting Minutes - October 15, 2024  Page 1    demo. We hope to increase the number oft bids by removing this part. The bid process can be done 4. Withdraw from the project completely. Please note that by withdrawing from the project, the city will not be able to demo the building. The buildingi is not considered a hazardous structure soi it can remain until it reaches such designation. The only part of the project that we can require a demo is the north section of the Phase 2 structure. This will also cost the city due to funds being expended  while the city is removing the building.  to cover the grant administration.  Grant Administrator, Felicity Edwards clarifies, that because the grant is for both the out parcel and the strip mall ift this bid is accepted, all of the grant money, all of the money the developer has to match, and an excess of $48,000 the developer would have to pay would just go towards the north out parcel, not leaving any options for the city or developer for the remaining portion of the project. This would also require Commerce approval because they would have to agree to do a lot less work for the amount off funds Commissioner Davis asks how much the demo is and asks how we will know how much less it will cost City Manager Cook addresses, the reason we want to take the demo out oft the bid is because we believe there will be more bids placed if that is not included and mentions the city has experience in demo City Attorney Obos states there is no legal reason the city cannot do the demo, if the property owner City Manager Cook states the estimated cost for the demo to be $25,000, but there would be an agreement signed that the property owner will pay for whatever the cost of the demolition ends up Mayor Henderson asks ift the reason for the one bid being SO high was because it included demo work,  given.  without a demo and how much is available for construction only with this grant.  work. gives consent. being.  maybe they wanted to make it worth it.  City Manager Cook states that is aj possibility.  Grant Administrator, Felicity Edwards states the construction budget is $1.95 million with CBDG and Commissioner Griggs asks for clarification on what building the bid is for and which building will be City Manager Cook states just the out parcel is being demoed, the strip mall is not being touched. Patrick. Jones, owner of Beacon Point Plaza, clarifies for Commissioner Griggs that Phase 1 is the out parcel of5,000 square feet that had 31 tenants, which is what this bid covers, the current bid offer makes  with what the property owner has contributed for both buildings.  demoed.  that $400 per square foot.  Commissioner Griggs asks what the demo will consist of for the out parcel.  City of Callaway Regular Meeting Minutes - October 8, 2024.  Page 2    Mr. Jones states that the demo will be down to the slab, the only horizontal things that would be left  are the sidewalks and the utility stubs.  Mr. Jones goes into detail to explain the Phase 1 design structure for tenants.  Commissioner Pelletier asks who decided to bid the project out in 2 different phases considering the grant Mr. Jones takes responsibility for being the decision maker in how the project is phased and says it's because of the momentum aspect = after Hurricane Michael, every tenant left except Grocery Outlet, and there was no opportunity to rebuild before the leases were canceled. Fights were going on with insurance and other issues that made it too big of a risk to put the whole thing out for bid and hope someone came around. However, the current bid offer brings a rate of $400 per square foot, the charge for tenants would have to increase to something they will not pay. This bid offer brings up challenges with finishing the project due to funds. Mr. Jones confirms not aj penny ofthe grant money comes until City Manager Cook assures Commission that once this phase gets going, then Phase 2 will start, we are Mr.. Jones states the reason it has taken 2 years to get to this point was because ofthe length ofthe DEO process. Originally it was a 2-tenant building in the out parcel and it took time to get through the grant program. Those two tenants fell through, and the process had to restart with a reconfigure of3-tenants. Commissioner Pelletier asks what the average cost of reconstruction today is and what the total square Mr. Jones lists what things need to be considered and estimates $240 per square foot. For both parcels Commissioner Pelletier expresses concern that there is not enough money for the extent of work that needs Mr. Jones states that Phase 2 is not going to be as much work as Phase 1 will be, and any difference Commissioner Ayers thanks Mr. Jones for answering questions, asks if more clean-up can be done under the large building and states when construction is going on, he would like clean-up boxes to be present.  money is for the entire project.  the landlord meets his match.  not waiting for Phase 1 to finish before starting Phase 2.  footage is for both parcels.  the total square footage comes to be 170,000 square feet give or take.  to be done.  there is in costs, the landlord will pay.  City of Callaway Regular Meeting Minutes October 8, 2024.  Page 3    Mayor Henderson called for Public Participation,  Don Henings - 431 Tanya Pass - Asks which option the city manager proposes going with.  The City Manager responds by saying the city should demo it while the bid is out to expedite the Karen Custer - 216 Lannie Rowe Dr. -I Ifo only the out parcel gets done, there is still an ugly building, sO  process (option 3). when does Phase 2 start?  City Manager Cook states as soon as the Phase 1 bid is done, the Phase 2 bid will go out. City Manager Cook explains how ifrejecting this bid, there willl be enough money for Phase 2, the city Paul Bohac - 7010 Mike Ln. - Summarizes each option and states he believes option 3 is the best choice.  ist not contributing any money.  Motion:  Motion made by Commissioner Griggs and seconded by Commissioner Ayers to Reject Bid for CM2024-  12 and go with option 3. The motion carried unanimously upon roll-call vote.  ADJOURNMENT  There being no further business, the meeting was adjourned at 4:52 p.m.  WIADohk Ashley Robyck, City Clerk  Attest:  hbadyl Pamn Henderson, Mayor  City of Callaway Regulat Meeting Minutes October 8, 2024.  Page4 4