Building Needs Assessment Work Group Minutes
July 21, 2022 1:00
Hybrid Meeting: SCLS staff to attend in person at The Wintergreen Resort, Grand Ballroom
60 Gasser Rd, Wisconsin Dells, WI;
Others to attend in person or Virtual Via BlueJeans
Present:
Jean Anderson SCLS Consulting Services Coordinator
Corey Baumann SCLS Delivery Services Coordinator
Nan Brien SCLS Board Trustee
Kerrie Goeden SCLS HR & Finance Coordinator
Jesse Stewart SCLS Fleet Manager
Vicki Teal SCLS Technology Services Coordinator
Kristi Williams SCLS Board Trustee
Martha Van Pelt SCLS Director
Guests:
Susan Feith SCLS Board Trustee
Devin Flanigan Keller Inc. Project Manager
David Haug Lighthouse Realty
Deb Haeffner SCLS Consultant
Rob Lindstrom Keller Architect
Absent:
Gary Poulson SCLS Board Chair
Call to Order by K. Goeden 1:14
Approval of previous meeting minutes: July 7, 2022
a. Motion by J. Stewart to approve the minutes
b. Second by J. Anderson
c. Approved with revisions by K. Williams to add language about moving the transformer at the Lakeland University and correct that we are not buying land at Lakeland University but purchasing the building and buying a ground lease.
Reports: None
Discussion:
· Walton Commons Option A: Full building as it is 32,000 sq. ft.
o Keller assist with ownership of building; SCLS owns 75%, Keller owns 25%. Still a $9 million building. In 20 years SCLS buys 25% back from Keller at market rate.
§ Is Keller interested in this arrangement?
§ K. Goeden, M. Van Pelt, D. Flanigan and Doug Stecker, Keller CFO, met 7/20/22 to discuss the option. D. Flanigan afterwards met with the Keller CFO and CEO to discuss it further. They would like to have a follow up meeting on the option.
§ Discussed Keller options to lease the 25% back to SCLS, as well as options for Keller to use 25% of the building (offices, meeting space, etc). Also discussed in-kind forms of compensation in lieu of a lease payment, such as providing delivery or technology services. They are considering all of the above.
§ K. Williams requested to put this Walton Commons item on the July 2022 SCLS Board agenda for discussion or action. K. Goeden said that Keller just learned of this option for the first time the day before (Wed 7/20/22) so that it would not be feasible for Keller to have a prepared proposal ready in time for the July 2022 board meeting. Perhaps we would have a proposal to review and discuss by the August 2022 board meeting.
§ N. Brien stated that she wants to continue to pursue this option but does not want to bring it to the board until we have a firm proposal from Keller to discuss and/or act upon.
§ M. Van Pelt will review agenda placement with Chair G. Poulson.
§ Discussion ensued regarding why we are keeping this full Walton Commons option open for discussion when we had consensus to eliminate the reduced Walton Commons plan.
o R. Lindstrom said because we’ve spent over $400,000 on developing this plan and the plans are ready to go. We can continue to pursue Lakeland University while talking to Keller about owning 25% proposal.
o BNAW agreed to end pursuit of reduced Walton Commons (WC) plan as that one is still over budget. But will keep the option of full sized Walton Commons with Keller paying 25% on the table until we have a firm proposal from Keller.
§ Terms and cost? Unknown at this time
§ Pursue or eliminate this option – see above
§ SCLS Board meeting follow up and vote – will be placed on Board agenda for discussion and action once we have a firm proposal to discuss by Keller. See above.
§ Next steps with City of Madison: Notify City of Madison, Matt M. and get on DAT meeting agenda.
· Lakeland University Option
o Review updated sketches – R. Lindstrom
§ Throw out past nomenclature of options. R. Lindstrom reviewed his 2 new sketches. We will call them Full Remodel and Partial Remodel.
§ Full Remodel: 10,950 sf added for delivery. Allows for 59 parking spaces. Sorting floor put into existing building. Full gut and remodel of existing building. Total building would be about 24,000 sf.
§ Partial Remodel (based on Option D). Uses more of existing building for HQ with a 15,272 sf addition for delivery. 2 meeting rooms, therefore 1 less huddle room, bigger break room and data center, smaller cubicles, 2 offices replaced by 2 larger shared offices, digital and recording in 1 room. Total building would be about 29,000 sf.
§ Both options have a drive through garage for delivery, 3 docks and 6 offices. No wash bay.
o Review budget estimates – D. Flanigan
§ Does not have estimates since he got sketches yesterday.
§ D. Flanigan shared documents: Best guess is:
§ $6.4 million – $7.7 Million for either option at Lakeland University – this is cost of total project including purchase of building, moving transformer.
§ Delivery perspective is that either version will work. Drive thru garage in both plans. Slight preference for Partial Remodel because it provides more square footage overall for the same money. Retains more space for HQ. 10 Fewer parking spaces for staff but will explore whether parking in the garage will count toward total required number of spaces.
§ Keller needs SCLS to pick 1 of the Lakeland sketches so they start moving with the approvals from city, county and airport. Send to Keller next Wednesday 7/27 after Coordinators meeting where it will be reviewed by SCLS.
o Review questions and updates from last meeting
§ Are there cross easement agreements for the parking lots? – D. Haug
§ Yes. Have to get approval to reduce number of parking spaces. We are looking at Lot 3. We currently are not impeding access with garage placement in either sketch.
§ What are the building covenants for this parcel? – Attorney and R. Lindstrom are reviewing these.
§ Which driveways does the Lakeland property have access to? – D. Haug
§ 2 off Pankratz
§ Title and ground lease feedback from the attorney? – Attorney
§ Attorney’s answers sent to BNAW via K. Goeden
§ SCLS attorney Confirmed that SCLS would get remainder of current lease and the next (2) lease extensions. Also confirmed by Dane County Assistant Corporation Counsel – Airport Services Adam Ussher after the BNAW meeting.
§ SCLS attorney provided summary of his review of the title work and reported that he didn’t see any “deal breakers”.
§ Confirm site parameters on CSM – R. Lindstrom
§ His plan was correct.
§ Cost to purchase or lease additional land? – D. Haug
§ $4.00 per sf for land.
§ Only reason for more land is if we need more parking spaces, utility requirements like storm water, but not for the building.
§ Is there a required number of parking spaces per square foot and how is the number calculated? – D. Haug
§ 1 stall per employee is current policy but needs clarification, is it FTE or bodies?
§ May be able to count the stalls in the garage as spaces.
§ Attorney’s feedback: Reduce spaces, need to get permission – not sure what that entails.
§ It may be possible for M. Rifkin to provide a parking easement for SCLS to use other stalls.
§ Lakeland area architectural review committee? “Design and Review Committee” – what are their requirements? - R. Lindstrom
§ Lakeland has its own covenants regarding building requirements, façade materials, etc. Need to compare to Dane County Airport requirements.
§ 130 ft needed for drive thru in delivery, too narrow on current map for Lakeland. Do we have access to do this? - D. Flanigan, R. Lindstrom
§ Yes, confirmed that there is enough space to add on a drive-through delivery garage.
§ What sides constitute the façade? (Does it includes both Pankratz & Packers Ave?). – R. Lindstrom
§ All sides constitute the façade.
§ What are the Dane County Airport building design rules?
§ Since the existing building uses higher quality materials on all facades, would the new addition allow lower quality materials? – R. Lindstrom
o No, would not allow lower quality materials.
· Review the Critical Controls Calendar for both Walton Commons and Lakeland
o Revise our timeline
§ “We have as many irons in the fire as we can possibly have.”
o Assign contingency work
§ Prioritize items
§ D. Haug: Top priority should be - will airport group approve our planned use
§ Site plan
§ D. Flanigan will contact civil engineers about ALTA survey
§ Attorney feedback on ground lease provided by Adam Ussher
Difference between CSM and ALTA survey: CSM is only the boundary lines/parameters.
ALTA goes into easements, utilities, air rights (near airport), bike path. Discovers all the encumbrances. More details are investigated. It is ala carte on what we ask the surveyor to cover.
K. Goeden reported on her conversation with BCPL in regards to restructuring the loan due to delay in building schedule. She asked if SCLS has any options to refinance it in order to postpone the first payment until March 2024. BCPL offered another option to have an interest only payment for year 1-2. K. Goeden asked BCPL to provide amortization schedules for both options for BNAW and the SCLS Board to review.
Topics tabled for Upcoming meetings:
· Review Other Options to Consider (Eliminate any?)
o Purchase office building and continue to lease Delivery
o Keep leasing and walk away (if no other options work)
· Schedule Admin and Delivery meetings to discuss shared HR and filing spaces
· Median Update – Walton Commons
· Utility Applications – Walton Commons
o Fiber, power, water, phone, cable, internet, airport permit?
· Building Permit
Homework for Next Meeting:
Coordinators meet to review Lakeland plans. Select one.
R. Lindstrom will draw up site plan from selected Lakeland plan.
Schedule meeting with Keller CEO and CFO to further discuss Walton Commons Option A.
Contact City of Madison to start approvals processes and attend DAT meetings.
K. Goeden follow up with Dane County Airport director and counsel regarding approval process.
Next Meeting: August 4, 2022 10:00 am – 12:00 pm
Adjournment 3:07
Parking Lot:
· Notify Michelle Drea at the City of Madison Assessor’s office when we purchase a site. mdrea@cityofmadison.com