HomeMy WebLinkAboutResolution - 6421 - Give Notice Of Intent To Enter Tax Abatement Agreement - MDM Investments Inc. - 06_24_1999Resolution No.6421
June 24. 1999
Item No. 56
RESOLUTION
WHEREAS, the City Council has determined to give notice of its intent to enter into a
Commercial Tax Abatement Agreement with M.D.M. Investments, Inc.; and
WHEREAS, V.T.C.A. Tax Code Section 312.2041 requires notice of intent of the City
Council to be given to the presiding officer of the governing body of each taxing unit in which
the property to be subject to the Tax Abatement Agreement is located; NOW
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Secretary give notice as set forth in Exhibit "A" of the intention of the
City Council to enter into a Commercial Tax Abatement Agreement with M.D.M. Investments,
Inc., said notice to be given to the presiding officers of each governing body of each taxing unit
having jurisdiction in assessing taxes on property located at 1206 14th Street in the City of
Lubbock, Lubbock County, Texas and further described as Lots 1-5 and 16-20 Block 163 and
Lots 11-20 Block 147 of the Original Town of Lubbock, Lubbock County, Texas.
Passed by the City Council this 24th day of
ATTEST:'
- I At� U &,ilk
Kaythi arnell, City Secretary
TO CONTENT:
Kevin G. 41ker, Business Liaison Officer
APPROVED AS TO FORM:
andiver, First Assistant City
June 1999.
Be au )fflnz
• '• •
NOTICE OF INTENT OF THE CITY COUNCIL
OF THE CITY OF LUBBOCK TO ENTER INTO AN
AGREEMENT TO ABATE TAXES ON REAL PROPERTY
IMPROVEMENTS AND TANGIBLE PROPERTY LOCATED AT 120614`h STREET
IN THE CITY OF LUBBOCK, LUBBOCK COUNTY, TEXAS
AND FURTHER DESCRIBED AS LOTS 1-5 AND 16-20 BLOCK 163 AND LOTS 11-20
BLOCK 147 OF THE ORIGINAL TOWN OF LUBBOCK, LUBBOCK COUNTY,
TEXAS
Notice is hereby given that the City Council of the City of Lubbock intends to enter into
an Agreement with M.D.M. Investments, Inc. to abate taxes on improvements to property and
tangible property located within an enterprise zone created by Ordinance No. 9591 and
covering all of the subject property.
Notice is further given that the City Council of the City of Lubbock will consider
authorizing the Mayor of the City to execute a contract between the City and M.D.M.
Investments, Inc. for tax abatement, a copy of said Agreement is attached to this notice as
Exhibit "A" and made a part hereof for all purposes.
Notice is further given that the City Council will consider this matter at its meeting held
in the City Council Chamber, City Hall, 1625 13t` Street, City of Lubbock, on the 24th day of
June , 1999, at 10:30 o'clock a-.m.
EXHIBIT "A" Resolution No.6421
June 24, 1999
Item: No. 56
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement made this day of , 1999,
by and between the City of Lubbock, Texas, a home rule municipality of the State of Texas
(hereinafter called "City") and M. D. M. Investments, Inc. (hereinafter called "Company");
WITNESSETH:
WHEREAS, City did receive from Company on the 12th day of May, 1999, an
application for commercial tax abatement for the renovation and modernization of
Company's facilities located at 1206 10 Street which is further described as Lots 1-5 and
16-20 Block 163 and Lots 11-20 Block 147 of the Original Town of Lubbock, Lubbock
County, Texas.
WHEREAS, upon review of the above application, it was determined that facilities
would be located in the North Enterprise Zone designated by City in its Ordinance No.
9591; and
WHEREAS, the Guidelines and Criteria Governing Tax Abatement for Commercial
Projects in Designated Enterprise Zones in the City of Lubbock was heretofore adopted by
Resolution No. 5680 of the City Council of the City of Lubbock; and
WHEREAS, the City did comply with all the requirements set forth in V.T.C.A.,
Tax Code, Section 312.2011; and
WHEREAS, the City did comply with all of the criteria and guidelines for creation
of an enterprise zone as set forth in Chapter 2303, Subchapter C of the Texas Enterprise
Zone Act, Texas Government Code, having adopted Ordinance No. 9591 of the City on
February 18, 1993, which ordinance includes 1206 140' Street.
WHEREAS, V.A.T.C., Tax Code, Sec. 312.2011 provides designation as an
enterprise zone constitutes designation as a reinvestment zone without further action; and
WHEREAS, the application received by City from Company is an application for
the renovation and modernization of an existing facility; and
WHEREAS, V.A.T.C., Tax Code, Sec. 312.002 specifically states that such a
purpose is to be included in the guidelines for tax abatement and to be eligible for such
treatment; and
WHEREAS, Section IV of the Guidelines and Criteria Governing Tax Abatement
for Commercial Projects in Designated Enterprise Zones adopted by the City Council by
Resolution No. 5680 does recognize renovation and modernization of existing facilities as
being eligible for commercial tax abatement status; and
WHEREAS, the City Council does hereby find that all of the Guidelines and Cri-
teria established for Commercial Tax Abatement within the Enterprise Zones of the City of
Lubbock, as adopted by Resolution No. 5680, have been met by Company; and
and
WHEREAS, Company does intend to renovate and modernize the existing facility;
WHEREAS, the location of the existing facility and surrounding real property,
which are to be the subject matter of the Agreement, are attached hereto as Exhibit "A", and
made a part of this Agreement for all purposes; and
WHEREAS, the City Council finds that entering into this Agreement to abate taxes
on the property described in Exhibit "A" will promote high quality commercial
development in the City, and enhance economic development within the designated
Enterprise Zone;
NOW THEREFORE, for and in consideration of the premises, and of the mutual
terms, covenants and conditions herein contained, the City and Company do hereby agree
as follows:
AGREEMENT — M.D.M. INVESTMENTS, INC. Page 2
SECTION 1. Term. This Agreement shall remain in force and effect for a period
of five (5) years from the date of its execution, and shall expire and be of no further force
and effect after said date.
SECTION 2. Base Year. The base year applicable to real property, which is the
subject of the Agreement, shall be 1999, and the assessed value of the real property shall be
the assessed value applicable to such property for said year.
SECTION 3. Base Year Taxes. The taxes upon the real property shall be paid in
accordance with the assessed value of such property for the base year. Base year taxes upon
the real property are thus not abated.
SECTION 4. Abatement of Increase in Base Year Tax. In accordance with
V.A.T.C., Tax Code, Section 312.204, real property taxes applicable to the real property
subject to this Agreement shall be abated only to the extent said value for any given year
within the term of this Agreement exceeds the base year taxes hereinabove set forth.
SECTION 5. Prol2eM Inelig ble for Tax Abatement. The property described and
set forth in Section IV(6) of the Guidelines and Criteria Governing Tax Abatement for
Commercial Projects in Designated Enterprise Zones, and heretofore adopted by the City
Council by Resolution No. 5680, and incorporated by reference herein as if fully set out in
this Agreement is property ineligible for tax abatement.
SECTION 6. Exe tion from Tax. The City covenants and agrees to exempt
from taxation, in accordance with Section 4 above, the following properties:
(a) All proposed new improvements to be placed upon the existing facility
located at 1206 le Street which is further described as Lots 1-5 and 16-20
Block 163 and Lots 11-20 Block 147 of the Original Town of Lubbock,
Lubbock County, Texas.
(b) All eligible tangible personal property placed in or upon the property set
forth in Exhibit "A", which does not include any equipment and personal
property owned by the company and already located in the existing facility.
AGREEMENT — M.D.M. INVESTMENTS, INC. Page 3
(c) It is further understood that a items affixed to the improvements placed
upon the real property identified in Exhibit "A" including machinery and
equipment shall be considered part of the real property improvement, and
taxes thereon shall be abated in accordance with the provisions of sub-
paragraph (a) above set forth.
SECTION 7. Economic Qualification. It is hereby found by the City that
Company will expend funds necessary to qualify for tax abatement by renovating and
modernizing an existing facility, all as set forth in Section IV(10)(a) of the Guidelines and
Criteria Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones
in the City of Lubbock adopted by the City through Resolution No. 5680.
SECTION 8. Value of Improvements. Company intends to expend approximately
four million two hundred and seventy thousand dollars ($4,270,000) in building related
structural improvements and equipment to be located within the Enterprise Zone created by
Ordinance No. 9591.
SECTION 9. City Access to Property. Company covenants and agrees that City
shall have access to the property, which is the subject matter of this Agreement, during
normal business hours, and that municipal employees shall be able to inspect the property to
insure that the improvements are being made in accordance with the terms and conditions of
Company's application for commercial tax abatement, attached as Exhibit "A", and this
Agreement.
SECTION 10. Portion of Tax Abated. City agrees, during the term of this
Agreement, to abate taxes on eligible property according to the following schedule:
Year 1:
100%
Year 2:
80%
Year 3:
60%
Year 4:
40%
Year 5:
20%
AGREEMENT — M.D.M. INVESTMENTS, INC. Page 4
SECTION 11. Commencement Date. This Agreement shall commence upon the
date of its execution, which date is hereinafter set forth, and shall expire five (5) years after
such date.
SECTION 12. Type of Imnrovements. The Company proposes to renovate and
modernize an existing building as described in Exhibit "A". The Company further states
that the proposed improvements to the property above mentioned shall commence on the
J= day of MU, 1999, and shall be completed within approximately 12 months from said
date. The Company may request an extension of the above date from City in the event
circumstances beyond the control of Company necessitates additional time for completion
of such improvements, and such consent shall not unreasonably be withheld.
SECTION 13. Drawings of Improvements. Company shall furnish City with one
set of as -built plans and drawings of the improvements to be made pursuant to the terms of
this Agreement.
SECTION 14. Limitation on Use. Company agrees to limit the use of the property
set forth in Exhibit "A" to commercial uses as those terms are defined in the zoning
ordinances of the City of Lubbock, and to limit the uses of the property to uses consistent
with the general purpose of encouraging development of the designated Enterprise Zone
during the term of this Agreement.
SECTION 15. Recapture. The Company agrees to be bound by and comply with
all the terms and provisions for recapture of abated taxes in the event of default by
Company pursuant to law and as set forth in Section VII of the Guidelines and Criteria
Governing Tax Abatement for Commercial Projects in Designated Enterprise Zones
adopted by Resolution No. 5680 of the City Council of the City of Lubbock.
SECTION 16. Certification. The Company agrees to certify annually to the
governing body of each taxing unit that the owner is in compliance with the terms of the
Agreement.
SECTION 17. Corn liR ance. The City may cancel or modify this Agreement if the
Company fails to comply with the Agreement.
AGREEMENT — M.D.M. INVESTMENTS, INC. Page 5
SECTION 18. Notice. Notices required to be given by this Agreement shall be
mailed, certified mail return receipt requested, to the following addresses:
CITY OF LUBBOCK
City Manager
P.O. Box 2000
Lubbock, TX 79457
M.D.M. Investments, Inc.
Delores Milhous
3506 34t' Street
Lubbock, TX 79410
AGREEMENT — M.D.M. INVESTMENTS, INC. Page 6
SECTION 19. Effective Date. Notwithstanding anything contained herein to the
contrary, this Agreement shall not be effective until such time as it shall be finally passed
and approved.
EXECUTED this day of , 199_.
M.D.M. Investments, Inc.
Delores Milhous
ATTEST:
Secretary
CAB/G:/Tax Abatement/MDM Contract —June 4, 1999
CITY OF LUBBOCK
A Municipal Corporation
WINDY SITTON
MAYOR
ATTEST:
Kaythie Darnell,
City Secretary
AS TO CONTENT:
Kevin G. NValker
Business Liaison Officer
APPROVED AS TO FO
If
nald G. an iver
First Assistant City Attorney
AGREEMENT — M.D.M. INVESTMENTS, INC. Page 7
EMT IT "e
APPLICATION FOR COMMERCIAL TAX ABATEMENT IN LUB8J CK-,i&RS
FILING. -INSTRUCTIONS:
This-:Opptication must be filed prior to the anticipated commencement: of construction .of Imprcvemsnts:.or the
Installation of equipment. This filing acknowledges familiarity . and assumed . conformance with "GUIDELINES
AND CRITERIA GOVERNING COMMERCIAL TAX ABATEMENT' (Copy. -attached). This:appiication will'become.a
part of .any later agreement or contract, and knowingly false representations- thereon will be grounds . for the
volding of any later agreement:or-contract.
ORIGINAL COPY OF THIS APPLICATION AND ATTACHMENTS SHOULD BE SUBMITTED TO:
City of Lubbock
Business Development Department
P.O. Box 2000
162513' Street
Lubbock, TX 79457
(806) 775-2980
Section I — APPLICANT INFORMATION
Date of Application: 5 I 10 / 99
Applicant Name: Dolores M i l h o u s
Company Name: M.D.M. Investments, Inc.
Address: 3506 34th, Lubbock, TX 79410
Phone: (806) 799-1365 Fax: (806) 799-1360
Applicants Representative on this project: Hallmark & Associates, Inc.
Name: Wes Hallmark
Address: 8207 Hudson Ave., Suite C, Lubbock, TX 79423
Phone:
(806) 797-2190 Fax: (806) 797-4160
Type of Ownership: ] Corporation
Total Current Number Employees:
[ ] Partnership [ ] Proprietorship
Corporate Annual Sales Per Year. N/ A M.D.M. Investments, Inc. is a corporate
investment holding company.
J
Com4p97.doc
Section it - FACILITY INFORMATION
(a) This application is for a: [ ] New Facility [ ] Expansion K A Modernization
(b) Type of Commercial Facility for which abatement is requested: Office Building
(c) Minimum economic qualification for tax abatement - place a check beside the statements that apply to your project:
[X] Minimum investment at least $250,000
[ ] Creation of at least 10 new permanent jobs
[ ] At least 30% of the new employees to be hired by the business will be residents of any enterprise zone within
the governing body's jurisdiction
11
(d) [X] The existing facility to be modernized or expanded or the property where the new facility is to be built is
located Ina designated Enterprise Zone.
(e) Address of proposed faciliity: 1206 14 t h Street, Lubbock, TX
11 (f) Legal description of proposed facility: S e e a t t a c h e d
(g) Describe product or service to be provided:
Section ill FACILITY DESCRIPTION
Please attach the following:
I) Attachment 1
(a) A general description of the improvements to be undertaken (example: build new retail store at 4501 Peach Street
and install new furniture and factures).
(b) A descriptive list of the improvements for which tax abatement is requested, including:
(1) cost and description of construction and location of all proposed improvements of the Real
Property or Existing Facility, and;
(2) list of new equipment and cost of the equipment.
(c) A list of any and all Tangible Personal Property presently existing on the Real Property or located in an existing
facility.
11 (d) A proposed time schedule for undertaking and completing the proposed improvements.
Application for Commercial Tax Abatement in Lubbock, Texas - Page 2
Attachment 2
(a) A site map indicating the approximate location of improvements on the Real Property Facility or Existing Facility
together with the location of any or all Existing Facilities located on the Real Property or Facility.
I Attachment 3
(a) A statement of the additional value to the Real Property or Facility as a result of the proposed improvements.
(b) A statement of the assessed value of the Real Property, Facility or Existing Facility for the base year (attach tax
assessment for property from the Lubbock Central Appraisal District).
(c) Information concerning the number of new jobs that will be created or the number of existing jobs to be retained as
a result of the improvements undertaken.
H.Section N ECONOMIC::.IMPACT:INFORMATION
Part A — Current Investment in Existing Improvements: $1.0 0 0.0 0 0
Part B — Permanent Employment Estimates:
(1) if existing facility, what is the current plant employment: o n e * ( B u i 1 d i n g Engineer)
(2) Estimated number of new jobs to be created and time frame for creation of jobs:
New Jobs 4 * (Security, Valet Time Frame 18 months
Secretaries)
(3) Estimated number of retained jobs: Five
(4) Opening of improvements: (Month)^ S e p- 0 c t. of (Year) 19 9 9
* Current & future employees are and will be employees of the property
management company who has the building under management contract.
Part C — Permanent Payroll Estimates:
(1)
(2)
If existing facility, what is the current plant payroll:
Estimated amount of new payroll: $ 6 , 0 0 0.0 0
$1,700.00 mo.
MO.
(3) Estimated amount of retained payroll: $ 7 , 7 0 0.0 0 m o .
Part D — Construction and Employment Estimates:
(1) Construction start Month May Year 19 99
(2) Number of construction jobs: At Start 6 0 Peak 22 0 0 Finish 60
(3� Number of man-years.. Total project is estimated to employ 175-200 worker
1/3 o which would be on site at a time and working an average of 6 hours pe
day over 9-12 mo. period. Total estimated man hours is 95,000.
Application for Commercial Tax Abatement In Lubbock, Texas - Page 3
Part E — School District impact Estimates:
Give Estimated number of Children added to ISD's N / A
Part F — City Impact Estimates:
(1) Volume of treated water required from City 12, 433.33* gallons per day.
(2) Volume of effluent to be treated by City gallons per day.
* Current estimated consumption.
Part G — Estimated Appraised Value on Site:
LAND PERSONAL IMPROVEMENTS
PROPERTY
Value of Existing Facility
Before New Construction
(From Central Appraisal District) 168,300 N/A 796,183
Value of New Improvements - 0- N/A 4,270,000
Estimated Total Value After Improvements 168,300 '' N/A 5,066,183
Part H — Variance:
(a) is a variance being sought under Section IV 9(d) of the "Guidelines"? [ ] Yes [X] No
(b) If "Yes", attach any supplementary infdrmation required.
Section V DEC1ARATtON r ..........:...... .... :............ ..,.........
....::::......: .
�.a
1;T0 the best of my knowledge, the above information is an accurate despaon 014 'roject detail.
Company Official Signature
Dolores Milhous
Printed Name of Company Official
President
Title of Company Official
Application for* Commercial Tax Abatement in Lubbock, Texas • Page 4
Exhibit "A"
Tract 1:
Lots One (1), Two (2), and Three (3), Sixteen (16), Seventeen (17),
Eighteen (18), Nineteen (19), and Twenty (20), Block One Hundred Sixty-
three (163), of the Original Town of Lubbock, Lubbock County, Texas,
according to the Hap, Plat, and/or Dedication Deed thereof, recorded in
Volume 5, Page 384, Deed Records of Lubbock County, Texas.
Tract II: •
An underground easement described by metes and bounds as follows:
BEGINNING at a point which is 2 feet East of the back of the curb along
the East side of Avenue L, said point also being 8 feet more or less West
of the Southwest corner of Lot 5, Block 163, Original Town of Lubock,
Lubbock County, Texas;
THENCE North a distance of 130 feet to a point;
THENCE around a curve to the right having a radius of 6 feet to a point 2
feet South of the curb along the South side of 14th Street, said point
being approximately 8 feet North of the Northwest corner of Lot 1, said
Block 163;
THENCE Easterly parallel to the South curb of 14th Street to a point
approximately 6 feet North the Northeast corner of Lot 20, said Block 163;
THENCE around a curb having a radius of approximately 8 feet to a point 2
feet West of the West curve of Avenue K and said point being approximately
8 feet East of the Northeast corner of Lot 20, said Block 163;
THENCE South a distance of 130 feet, more or leas to a point 2 feet West
of the West curb of Avenue K, said point being approximately 8 feet East
of the Southeast corner of Lot 16, said Block 163;
THENCE West a distance of 8 feet more or less to the Southeast corner of
Lot 16, Block 163;
THENCE North a distance of 130 feet more or less to the Northeast corner
of Lot 20, aaid Block 163;
THENCE West a .distance of 125 feet to the Northwest corner of Lot 20;
THENCE South a distance of 130 feet more or less to the Southwest corner
of Lot 16 of said Block 163;
THENCE West a distance of 20 feet to the Southeast corner of Lot 5, of
said Block 163;
THENCE North a distance of 130 feet more or less to the Northeast corner
of Lot 1, said Block 163;
THENCE West a distance of 125 feet to the Northwest corner of said Lot 1;
THENCE South a distance of 130 feet more or less to the Southwest corner
of Lot 5, of said Block 163;
AND
THENCE West a distance of 8 feet more or less to the POINT OF BEGINNING;
An aerial easement described by metes and bounds as follows:
BEGINNING at a point which is in the Southeast corner of Lot 5, Block 163,
Original Town of Lubbock, Lubbock County, Texas;
THENCE North a distance of 130 feet, more or less to a point which is the
Northeast corner of Lot 1, said Block 163;
THENCE West a distance of 125 feet, more of less to a point which is the
Northwest corner of said Lot 1:
THENCE North a distance of 8 feet, more or less to a point which is 2 feet
South of the South curb of 14th Street;
THENCE East parallel to the South curb of 14th Street a distance of 270
feet, more or less to a point that is 8 feet more or less North of the
Northeast corner of Lot 20, said Block 163;
THENCE South a distance of 8 feet, more or less to the Northeast corner of
said Lot 20;
THENCE West a distance of 125 feet more or less to the Northwest corner of
said Lot 20;
THENCE South a distance of 130 feet more or less to the Southwest corner
of Lot 16, said Block 163;
THENCE West a distance of 20 feet more or less to the POINT OF BEGINNING.
TRACT IZZ:
Lots Four (4) and Five(5), Block One Hundred Sixty-three (163), Original
Town of Lubbock, Lubbock County,Texas according to the Map, Plat and/or
Dedication Deed thereof, recorded in Volume 5, Page 384, Deed Records of
Lubbock County, Texas.
TRACT IV:
Lots Eleven.(11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15),
Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), and Twenty
(20), Block One Hundred Forty -Seven (147), Original Town of Lubbock,
Lubbock County, Texas according to the Map, Plat, and/or Dedication Deed
thereof, recorded in Volume 5, Page 384, Deed Records of Lubbock County,
Texas.
ATTACHMENT NO.1
Omni Office Centre
(Formerly Citizens Tower of Lubbock)
14th & Ave. K
Lubbock, Tx
A. GENERAL DESCRIPTION OF IMPROVEMENTS TO BE DONE.
M.D.M. Investments, Inc. has undertaken the redevelopment of the Citizens Tower of
Lubbock to bring the building up to a Class A multi tenant office building. The building is
located on the east one half of the city block between I and 14th Streets and between
Avenue K and Avenue L. The property Is an 11 story office tower and includes a full
basement a two story annex to the north of the tower and a five level parking garage
across 14�' Street connected to the building by a tunnel. The two story portion of the
property was originally constructed in 1957 and 1958. The 11 story office tower was added
In 1963 and 1964. Norwest Bank, as a tenant, occupies the basement,1`tfloor and a floor
of the north annex, the first floor of the tower and one half of the third floor. Total square
footage of the building is approximately 120,000 square feet. The building name has been
changed to Omni Office Centre to reflect the new Image.
B. COST AND DESCRIPTION OF IMPROVEMENTS
The current estimated Improvement costs are $4.27 million and improvements will Include
the following:
1. Life Safety and Code Compliance. The entire facility will be brought up to current fire
codes for high rise buildings Including installation of a fire sprinkler system, smoke
detectors, fire dampers In air conditioning ducts, emergency exit lighting, creation of
areas of refuge around elevator lobbies, installation of fire rated doors, fire sealing
openings In fire rated structures, and addition of a second means of egress on all
floors. This work will be done on a per floor basis as the project Is leased up but in no
event longer than over a five year period due to current tenant leases. All elevators
will be brought up to current state codes and made ADA accessible. All restrooms will
be remodeled on a per floor basis to bring them up to ADA compliance. When all
Improvements are completed this will be the only high rise building In Lubbock that
meets all of the new building code requirements for high rise office buildings.
2. Exterior Work. Architectural design elements will be added to the building to change
the exterior elevation. The turquoise colored spandrels will be painted to match the
color of the smoked glass windows to give the appearance of a glass and white marble
building. The panels that make up the walls of the parking garage will be painted with
a faux finish to match the white marble elements of the structure. Other exterior work
will Include extensive landscaping, site lighting, new sidewalk treatments, and the
addition of new building entry canopies.
3. Interior Work. The primary building entrance Is being relocated to the south side of
the building and expanded for better access from the parking garage and to the tower
elevators. The first floor lobby will be completely remodeled. Elevator lobbies and
common halls on other floors will be remodeled on a per floor basis as lease up Is
accomplished. Tenant Interiors will be remodeled to a building standard throughout.
Other Interior Improvements Include upgrades to the building's heating and air
systems, installation of a building energy management system, installation of a
building security system (surveillance cameras and secured building access after
Omni Office Tower - Rehab Costs & Proforma
Item . Descrilion
1 Fire Sprinkler Main Riser
SLS Estimate of Costs
$150,000
2,4,5 Elev. Lobbies, area of refuge, sprinkler sys.for those areas
$216,000
3 Elevator cabs - life safety
$10,000
Y 6 Install fire alarm system
$150,000
7 Smoke detectors / fire dampers L 1; 1;
$125,000
8 Upgrade emergency / exit lighting
$70,000
9 ADA restrooms - 2 floors ( f I -2 a
$30,000
10 Upgrade / remodel floors 2 & 6
$320,000
11 Fire Seal openings in fire rated structures
$40,000
12 2nd means of egress floors 2 -11
$20,000
13 Upgrade doors, frames, etc. egress areas
$100,000
14 Tunnel corridor upgrades
Total Life Safety Remodel Costs $1,271,000
Landscaping, new entrances, site lighting, architectural
changes, painting spandrels. 608,500
Total Estimated SLS Contract $1,879,500
Parking Garage - remove panels & retrofit
60,000
Parking Garage lighting
20,000
Life safety (sprinklers, fire dampers, a&d, fire doors, corridor
walls, etc.) floors 3.4,5,7,8,9,10,11 @$80,000 per floor
640,000
Restroom remodeling - non ADA floors @ $15,000 floor
120,000
Tenant space remodeling: Floors 3.4,5,7,8,9,10,11
Carpet, paint, finishes @ $5 psf
Electrical & Lighting @ $10 psf - complete replacement
Mechanical - duct work @ $10 psf
Ceilings @ $125 psf
Total estimated tenant Interiors = $2125 psf (assuming
1/2 of electrical & lighting per floor can be reused &
7870 usable sf per floor) = $167.237 fl x 7.5 floors
1,254,281
Elevators - ADA & codes compliance
80,000
HVAC improvements:
Coils
50,000
Building Management / Energy Management System
40,000
Plus lease up & marketing costs
125.000
Total Estimated Additional Cost
$2,389,281
Plus Original Acqutstion Costs
,S1.000.000
TOTAL ESTIMATED PROJECT COSTS
$5,268,781
OMM OFFICE CENTRE R"bed M91"
Projected Funding Timeline
1999 I 200o I I
Max lone lalx Attgtrs! 8spismhee fkmlSsc Haven nDecem Janet Febmry Marsh_ April Max lam 1djj AttSns! Shsr Tffi1
Man Work n
i HVAC Coils $61,000 (Funds on hand, not iacladed In dmw.eg mx)
2 Elevator UpVah S611000 520.000
3 Fire Pump InstaBatimy 530,000 560,000 560.000
Asbestos Abatement
.elated to the phase:
Chiller Imulatim
(SI50,000).eit. total
4 M Floor Renovation
Life Safety: Par1Zing (3atW, '
Build'mg Facade It Lighftr
Paint Tower
(5950,000)
5 Tower Exterior Facade;
Site work & Lmdmphw.
New Fatties; lit Floor
Elevetor Lobby
065010m)
6 2md Floor Renovation
(5300,000)
575,000 S75PO 5100,000 5100.000 5200,000 S200AM SI00,000 SI00,000
5200,000 5100,000 SI00,000 5100,000 SS0,000 S",000
S75,OM S106,OM S125,O O
$80,000
SI50,000
"S0,000:
S60Q000
$300,000
Total $60,000 SS%000 $60,000 3135,000 SI50,000 $400,000 SM,000 5300,000 $300,000 5130,000 SI50,000 SO SO SO SO SO $O S2,OE0,000
• Above amomtts do not Inehtde any wank on.attest floor other than floor 2 dt 6, tar asbestos abatement as.equh cd for other floor.
These will be done on a "Leeso-ap' basis.
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FRYERIN D N INVESTMENTS
Citizens Tower Property Taxes
(Omni Office Centre)
Property tax ID
R 112932
Land 95,175
Imp. 629,760
R 115518
Land 58,500
Imp. 72,238
R 37733
Land 14,625
Imp. 94.185
$964,483
Total Land $168,300
Total Improvements 796,183
Block 147
Lot 11-20
Block 163
Lot 1-3, & 16-20
Block 163
Lot 4 & 5