Building Needs Assessment Work Group Minutes

September 15, 2022 1:00

Hybrid Meeting: 4610 S. Biltmore Lane, Chester Room

Meeting Documents: https://www.scls.info/committees/building-needs-assessment-work-group

Present:

Jean Anderson             SCLS Consulting Services Coordinator

Corey Baumann          SCLS Delivery Services Coordinator

Gary Poulson               SCLS Board Chair

Jesse Stewart              SCLS Fleet Manager                           

Martha Van Pelt          SCLS Director

Guests:

Devin Flanigan              Keller Project Manager

Susan Feith                  SCLS Board Trustee

Deb Haeffner              SCLS Consultant

David Haug                   Lighthouse Realty

Absent:

Nan Brien                    SCLS Board Trustee

Kerrie Goeden             SCLS HR & Finance Coordinator

Vicki Teal                     SCLS Technology Services Coordinator

Kristi Williams             SCLS Board Trustee

Call to Order 1:04 p.m. by Marty Van Pelt

Approval of previous meeting minutes:  September 1, 2022

a.         Motion by J. Stewart to approve the minutes 

b.         Second by G. Poulson

c.        Approved

Reports:

o Lakeland Parking Lot Resurfacing – D. Flanigan

§ Took photos and sent over to NE Asphalt. There are some existing concerns with the parking lot.  Got a cost estimate of repairs

o EIFS Repairs – D. Flanigan

§ Received a report with cost estimates. Some concerns with repairs/maintenance.

o Roof Inspection – D. Flanigan

§ Roof inspected and provided some costs. Although, because of the ballast (rocks) it was hard to inspect all of it. Overall the roof was in good shape. There were just a few maintenance items the contractor recommended.

§ Building kind of lacked maintenance over the last few years.

o Landfill Questions/Information – D. Flanigan

§ Contacted both city and county and finally got a hold of the right person. It’s regularly tested through DNR or state as far as water testing. They don’t do leach testing extending from the site. They do test for leaching of chemicals into the aquifers. The people Devin talked to were confident that we had no foreseeable concerns for our site.

o ALTA and Phase 1 ESA – D. Flanigan

§ Are in motion and there are some emails and phone calls in progress for this to meet the deadline of presenting information at the 9/22 Board meeting.

Discussion:

· Lakeland University

o Review financial pro-formas and summaries

§ HQ Only

§ HQ and Delivery

§ Information sent to BNAW and the Board. Bottom line is that we are looking at the future and fiscal security of SCLS for the long term. In 20 years when the loan is paid off, SCLS will save at least $200,000 per year (HQ only) going forward. Fiscal responsibility to use the funding as wisely as possible. Upside is that we will have a physical/fiscal asset.

o Recommendation to the SCLS Board for a 2 phase approval

§ Phase 1:  Purchase/remodel Lakeland building for HQ operations

§ Phase 2:  Approve Delivery addition after bids come back and we have final budget for construction 

· MVP gave a summary of the phase 1 and 2, bid process, and plan for moving forward.

· Delivery lease extended through November 2023. SCLS HQ lease expires May 2023.

· Critical controls calendar for Lakeland – Contingency Updates

§ Ground lease review

· Attorneys have both reviewed

o Confirmation that SCLS would be entitled to and guaranteed remainder of primary lease AND both extensions

o Letter will be part of the board packet

· Estoppel letters in progress

· Approval of lease assignment to SCLS

o 9/22/22 County Board meeting to introduce resolution

o It takes two months for Dane County and the Airport to get the lease assigned to us. Dates and upcoming meetings are in the Director Report for September. Anticipated date to assume the ground lease is around Thanksgiving. Seller is okay extending the time period to assume the lease.

o D. Haug – Will draft an amendment for the Offer to Purchase to adjust the price due to inspection issues on the roof, EIFS, and parking lot repair. Seller is also comfortable with extending the time frame for assuming the lease and close on the building.  This will be added to the 9/22 board agenda for approval

§ Financing

· Interest only for year

o Approved at the August SCLS Board meeting

· 2^nd loan with BCPL

o Loan application has been requested from BCPL

· At September 22 board meeting, board will be asked to approve and sign the loan application. This bring us up to the total project cost cap of $7,000,000.

§ Building & Roof inspection

· Done

§ Proposed use

· Approved by Airport group

· Working with City of Madison DAT

o D. Flanigan: There are going to be some challenges like at Walton Commons. But based on flexibility we saw with the city, we should be able to work through it.

§ ALTA Survey/Zoning/Easement/Expansion

· Scheduled ALTA 9/1/22 and is going through the process

§ Title Insurance and Title Documents

· Attorney Lawton is working on it and almost finished.

§ City of Madison Review and Approval

· DAT meeting on 8/25/22

· Discussed at September 1 BNAW meeting

§ Dane County Airport Review and Approval

· Site plan and elevations approved

· Would like to see landscaping plans

§ Phase 1 ESA

· Started 9/1/22

· Scheduled to be completed prior to the 9/22 board meeting

§ Reciprocal parking easements

· They allow for overflow parking on adjacent lots already

§ Timeline

o Ground lease process

§ Do we need to attend these meetings? It’s a public meeting but we don’t need to attend.

o Closing date

§ Possibly as early as November 18

Questions? Comments?

· D. Haug: Attending the SCLS Board meeting to resolve any outstanding issues or concerns. Do we have any so that he can prepare in advance of the board meeting?

· G. Paulson – condition of the building, money issue is clarified from today’s meeting – going right up to the $7 million. Ability to collect rent from existing tenant – didn’t realize the amount and that the sooner we’re in, the sooner we collect.

· MVP: will we have that information about the possible price adjustment due to the roof, EIFS, and parking lot and extension of the closing date.  It (the amendment to the offer) will need to be updated and voted on at the board. Action item to add to the board agenda – extending the closing date, price adjustment due to the roof, EIFS, and parking lot.

· D. Haug; one thing to discuss about EIFS – should he negotiate with Rifkin based on the repair or replace numbers? Asking if D. Flanigan has an opinion or recommendation. Inspector gave some options for repair or replace. Wants a general sense from the group on which way to go in negotiation on price adjustment.

Motion to adjourn: G. Poulson, second by J. Stewart.

Homework for Next Meeting: 

None.

Next Meeting: 

October 6, 2022 10:00 am – 12:00 pm

Adjournment: 2:53

Parking Lot: 

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