Building Needs Assessment Work Group Minutes

June 16, 2022 1:00

Hybrid Meeting: at 4610 S. Biltmore Lane, Chester Room

Present:

Corey Baumann SCLS Delivery Services Coordinator

Nan Brien SCLS Board Trustee

Kerrie Goeden  SCLS HR & Finance Coordinator

Jean Anderson SCLS Consulting Services Coordinator

Jesse Stewart SCLS Fleet Manager

Vicki Teal SCLS Technology Services Coordinator

Kristi Williams SCLS Board Trustee – absent Proxy by Susan Feith

Martha Van Pelt SCLS Director
Guests:

Devin Flanigan Keller Inc. Project Manager

David Haug Lighthouse Realty

Deb Haeffner SCLS Consultant

Rob Lindstrom Keller Architect

1:00: Call to Order

1:02: Approval of previous meeting minutes: June 2, 2022

a.         Motion by J. Stewart to approve the minutes 

b.     Second by J. Anderson

c.        Approved

1:05: Reports:

· Offer to Purchase – D. Haug, M. Van Pelt, K. Goeden

o Counter offer from seller came back with offer of price in middle, kept 90 days for research, sent to attorney for review. D. Haug thinks $2.1 million is a fair price.

· Status Update Conversation with Matt M. at the City of Madison – D. Haug

o The city understands the situation and is sympathetic

· Critical Controls Calendar Update– D. Haug

o Walton Commons site- have until October for critical dates

o New site calendar – working on calendar for other option if it arises

1:25: Discussion:

· Walton Commons Site

o Reviewed revised hand sketches of building by R. Lindstrom

§ Need 2 months to revise plan enough to get budget estimate

§ At 26,334 sf in new sketch

§ At least $200,000 more for plans to be designed

§ What will happen if we go to bid again? D. Flanigan would like to rebid in November 2022, December 2022, or January 2023

· Concern with waiting that long - SCLS would be paying rent and the loan at the same time. May – November 2023.

§ Question about storage being lacking in this new version. All storage areas have been removed. Will we need to add any back in?

§ Lost a dock and 3 van parking spaces, concerns with height of ceiling. Can vans still be put on lift high enough? Rob thinks van on lift is still good.

o Effect on budget? R. Lindstrom will make revisions based on our feedback and will send to their estimator.

o Next steps

· New Property Option

o Review response to Offer to Purchase

§ Received counter offer from Seller

§ BCPL loan - R. Sneider wants to ask his board at their board meeting next week on Tuesday to amend and approve our loan purpose to include the purchase and renovation of an existing building as well as the option to build new.

§ Concerned with as is condition. D. Haug recommends we do our own inspections and due diligence, even if Seller doesn’t provide inspection. Having someone working for our interests is better than having the seller hire someone who’s working in their interests.

§ S. Feith concerned about ground lease expiring in 27 years with option of Dane County being able to reclaim. Need attorney to review ground lease.

§ D. Haug will talk to Rifkin about delaying our answer until next week as the SCLS board wants to discuss it first.

§ S. Feith: not comfortable with $2.1 million since it has been on the market for so long and it is a land lease. Wants full discussion at BOT meeting. Next to landfill (golf course). Decision rests with the board.

Wants realtor to keep looking. He is.

§ N. Brien accepts the $2.1 million with full board discussion.

§ C. Baumann supports the $2.1 million. We have a limited property inventory from which to select.

§ J. Stewart supports the $2.1 million. Options are closing down. But is now a viable choice even at first it was not.

§ J. Anderson supports $2.1 million

§ V. Teal supports the $2.1 million, concerned about as is condition clause. Worried about lack of inspection. We will have to pay for inspections. If we discover something costly – D. Haug explained that we can go back to seller and possibly renegotiate terms prior to closing.

§ M. Van Pelt supports $2.1 million with same concerns as Vicki and Susan.

§ K. Goeden supports $2.1 million with contingencies included. Limited inventory. Fair price. Goal moving forward is just to secure it as an option, not purchase it yet. Keep the option on the table.

§ D. Haeffner supports $2.1 million. Needs inspections. Good price.

o Next steps

§ Take discussion and information to June board meeting.

§ SCLS has reached out to current landlords to see what financial options they would offer if we stayed. One year of cheaper rent then increase again with escalators.

· Create New Timeline for Both Options

· Review Other Options to Consider (Eliminate any?)

o Full building as it is 32,000 sq. ft.

§ Keller assist with ownership of building; SCLS owns 75% Keller owns 25%. Still a $9 million building. In 20 years SCLS buys 25% from Keller

o Purchase office building and continue to lease Delivery  

o Keep leasing and walk away (if no other options work)

Consensus to keep moving forward on 2 discussed options 1. Walton Commons 2. Offer on purchase building. Use the full 90 days on the offer to purchase. Need cost of adding delivery to building before deciding. See the price of Walton Commons before designing purchase of building.

Topics tabled for Upcoming meetings:

· Schedule Admin and Delivery meetings to discuss shared HR and filing spaces

· Median Update

· Utility Applications

· Fiber, power, water, phone, cable, internet, airport permit?

· Building Permit

Homework for Next Meeting:

D. Haug will talk to Rifkin about delaying our answer until end of next week – NOW before next meeting.

Next Meeting:

July 7, 2022 10:00 am – 12:00 pm Receive cost estimates on sketch submitted by R. Lindstrom

With a cost estimate on Walden Commons by 7/7 to know if to continue on building. For next 90 days run both projects in parallel tracks prior to drawing up construction plans.

Keller will draw up floor plans for both options and have estimators provide estimates for both plans before any construction documents are drawn up.

July 21, 2022 1:00 Wintergreen Resort in the Wisconsin Dells after the All Directors Meeting

3:00: Adjournment

Parking Lot:

· Notify Michelle Drea at the City of Madison Assessor’s office when we purchase a site. mdrea@cityofmadison.com