lbm19960806MUSKEGO PUBLIC LIBRARY BOARD AND
MUSKEGO PUBLIC LIBRARY BUILDING COMMITTEE
MUSKEGO CITY HALL
August 6, 1996
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Call to Order: The meeting was ca.lled to order by President Christenson
at 7:OO P.M..
Roll Call: Also present were D Cilrter, D. Hudzinskl, R. Jankowski,
R. Rasmussen, C. Schwalbach, B Yahr and Director H Sanhuber.
R. Rammer were absent.
C. Stewart arrived later. T. Berken, P Martinez, B, Miller and
Approval of Minutes: Minutes of the July 17 meeting were approved on motion
Statement of Public Notice: Given on July 25, 1996.
R. Jankowski, second R. Rasmussen. President Christenson turned meeting
over to building committee Cha..rman Carter.
a. Communications: Received letter of resignation from Tom Berken. R.
Communications
Rassmussen moved, R. Jiinkowski seconded motion to accept. Motion
carried.
presentation on the Parkland Mall development. He described the
procedure for buying the mall. The mall is owned by Trotter-Kent.
They are selling the mall Stu Wangard's firm was the high bidder.
Jeff Christensen was second high bidder. Bidders have 30 days to
finalize sa1e:First bj.dders time expired, now offered to second
high bidder.
He is not adverse to lj.brary in mall. Has been done in other areas
but needs study. Could contract for space in mall for "X" years with
options to stay or leave for any period desired. Could also allow
for expansion or contrxtion of space Building will get a new roof.
Electrical and mechanic:al will be redone Described common area
charges as a percentage of total square feet. He did not know if
undergoing environments1 studies.
lease or purchase woulcl be the options allowed. Mall now
b Guest Comments: Jeff Christensen of Midwest Associates LLP gave a
Old Business
New Business
a. Announcements: None
a. Discuss library/mall project: B. Yahr moved, R. Jankowski seconded motion
that building committee recommend the Parkland Mall site be
eliminated as a library site. The motion was amended to read
Building committee in favor of building on municlpal grounds
motion. Chairnhn Carter called for the vote. Voting yes. Carter,
adjacent to City Hall Discussion centered on timeliness of
Christenson, Hudzinski, Sanhuber and Yahr Voting no, Jankowski
and Rasmussen. Motion carried.
Motion to adjourn building committee B. Yahr, second D. Hudzinski
at 8:28 P.M..
D. Carter moved, R. Jankowski seconded motion to approve building
committee recommendation Will get facts in 30 days. Try to get
you are against building the library on City grounds Wait until
the best value for the money spent. Voting no does not mean that
owners of mall submit figures that can be compared to figures
no, Jankowski,Rasmussen, Schwalbach and Stewart Motion defeated.
received from Durrant. Voting yes, Christensen and Carter Voting
Other Matters: Chuck Dykstra proposal to finance committee for City to buy
Motion to Adjourn Moved D. Carter, second C Stewart at 8:56 P.M.
Parkland Mall will be televised 8/7.
RUSS Jankowskj
Secretary
MUSKEG0 PUBLIC LIBRARY
W182 S8200 Racine Avenue
Muskego, Wisconsin 53150-0903
P. 0. Box 903
414-679-4122
DATE: August 19, 1996
TO: Library Board and Building Committee
FROM: Holly Sanhuber
RE: Building Committee news
More papers for you! I thought the advent of computers was
supposed to create a paperless society? Go figure ...
Enclosed find:
- Minutes of August. 6, 1996
- A letter about the contract from Durrant
- An invoice from Ilurrant and my explanatory memo
- A letter from Stl;. Wangard
- A proposal that the city buy Parkland Mall.
No news yet on the new Mall proposal. Durrant has volunteered to
go to the Mall with an engineer and look it over, the result
being apples-to-apples figures which will compare costs for a
stand-alone library with those for the Mall project. Ray and Don
thought it was a dandy idea, and want me to run it past the
Mayor. I have an appointment to see him Thursday. Comments,
anyone?
cc (FYI): Mayor
Chuck Dykstra
Jean Marenda
Matt Sadowski
John Johnson/City Festival
Durrant, Inc.
D 1ATE :
MUSKEG0 PUBLIC LIBRARY
W182 58200 Racine Avenue
Muskego, Wisconsin 53150-0903
P. 0. Box 903
414-679-4122
August 19, 1996
TO: Mayor David De Angelis
FROM: Holly Sanhuber 4@ RE: Library Building project
On behalf of the Library Building Committee, I am asking that the
following item be placed on the agenda for the appropriate
Finance Committee meeting:
The committee is asking for the payment of the attached invoice
from Durrant Inc. for $7,600, to be taken from the $40,000 which
was budgeted for preliminary library planning.
The invoiced amount reflects architect and interior designer time
to review and validate the Building Program Statement with our
which will be necessary to colnpare a stand-alone building with
confirm and tabulate space ne,ads, and to do the cost analysis
costs for the proposed mall project. In addition, the firm
prepared requests for proposal for the site survey, analyzed the
responses, and forwarded a re.:ommendation to the city.
staff, to complete a furnishings and equipment inventory, to
cc: Jean Marenda
Chuck Dykstra
Matt Sadowski
Library Board/Building Cmmmittee
DURRANT ARCHITECTS
John Johnson/Festival Committee
Durrant Architects
113101heatlare
Milwaukee. WI
Trecker Way
53214-1135
Far: 414 663-2620
416 443.2626
Durrant Group Inc.
A Pan of The
0
INVOICE
August 8, 1996
Invoice No. 17039
96274-00
Ms. Holly Sanhuber
Muskego Public Library
W182 58200 Racine Avenue
Post Office Box 903
Muskego, WI 53150
Re: Muskego Public Library
PROFESSIONAL SERVICES
Basic Fee: Lump Sum $38000.00
Fee Earned Through July 31. 1996:
$38000.00 x 208 complete
Less Amount Previously Invoiced
Total This Invoice
$ 7600 00
- 0.00
$ 7600.00
By:
Statement of Account as of 7-31-96
Amount Previously Invoiced
This Invoice
Total Earned
Paid to Date
Total Due
s 0 00
$
7600.00
7600 00 - 0.00
$ 1600.00
TERMS: NET DUE IN 30 DAYS INTEREST MAY BE CKARGED ON PAST DUE
ACCOUNTS AT THE RATE OF 1 1/28 PER MONTH (188 ANNUAL1 OR
INTEREST RATE PER CONTRACT
Mr Donald S. Molter, Jr
August 14. 1996
Page 2 of 2
We have expanded and tightened the termination clause as you had
requested in your earlier correspondence. We feel that this clause is fair
to both parties.
We trust that we have responded to your concerns: if not, please do not hesitate
to call. Thank you for your respme.
Very truly yours,
Gerald T Olson, AIA
Vice President
GTO/bak
cc: -'~ ,Holly Sanhuber
Mayor David L. DeAngelis
File/C -1
.~
s.m. Wangard, inc.
REAL ESTATE a* BROKERS * CONSULTANTS
/I,-” - r/Ao
August 7, 1996
Honorable Mayor David De’hgelis
City of Muskego
W182 S8200 Racine Avenue
Muskego, WI 53 15 1
Dear Mayor De’hgelis:
Thank you for all of your help regarding our proposal renovation of Parkland Mall Shopping
Center.
We had requested an extension on our contract and it was not granted by the sellers. We are
currently out of contract and we do not expect to be able to negotiate a new agreement with the
seller. If we are able to come to terms in the future, we will contact you immediately,
Thank you again for all of the cooperation from your staff and the spirit of encouragement from
the members of the Common Council.
Sincerely yours,
Stewart M. Wangard
President
S.M. Wangard, Inc.
SMW:rfk
cc: Robert Yunker
D”“”
2448 S. 102nd Street Suite 275 * West Allis. WI 53227
Phone (414) 3284200 FOX (414) 328-1741
MEMORANDUM 0 DATE: August 9, 1996
TO : ALDERMAN/MAYOR
FROM: 'Chuck Dykstra Sr.
RE : Recap of information presented to 8/7/96 Finance Committee. """""""""""""""~""""""""---------------- ?
Assume $1,000,000.00 purchase price
2,000,000.00 exterior/shell improvements
1,000,000.00 roof i:nprovements
= $4,000,000.00 minimus investment (#1)
X 5.5% borrow rate - $220,000.00 1st year interest (#2)
/ 147,456 sq.ft. (#3) .~
$1.49 interest cost per sq. ft. 1st year (#2)
.................................
Compare to $4,000,000.00 new library purchase price
X 5.5% borrow rate
$ $220,000.00 1st 'year interest (#2)
/ 40,000.00 sq. ft.
$5.50 interest cost per sq. ft. 1st year (#2)
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0 Existing City Hall sq. ftg. facts:
.................................
1972 1st flr.= 10,360 sq. ft.
basement= 4,422 sq. ft.
14,782 sq. ft.
1985 added 1st flr.= 5,922 sq. ft.
basement= 5,922 sq. ft .
11,844 sq. ft.
..................................
1996 existina 1st flr.= 16,282 sq. ft.
~ basement= 10,344 sq. ft.
26,626 sq. ft.
.................................
.................................
Square footage cost comparision:
Library ---- 4,000,000 / 40,000 sq. ft. = $100.00 per sq. ft.
Mall _______ 4,000,000 / 147,456 sq. ft. = $ 27.13 per sq.ft.(#3)
..................................
..................................
Income outline:
147,456 1st flr. sq. ftg.
City/Library *IO0 sq. ft.
87/4m sq. ft. remaining
Jeromes
True Value
Post Office
Theater
- 11,880 sq. ft. x $3.00 = $35,640 year - 14,500 sq. ft. x $3.00 = $43,500 year - 12,000 sq. ft. x $3.00 = $31,635 year
= 38,531 remaining
- " 10 545 sq. ft. x $3.00 =a6,000 y
$141
x $1;!.70 " lease rate (#4)
$489,344 income per year
x 65% occupancy rate
Income misc tenants $3ii,074 year
Income existing tenants $146- - year $464,849 income per year
- $ZZtl,ooo 1st year interest
Remaining income $m:,849
Total Principal paid $4,896,980 (entirely by tenants)
x - 2tQars
Explanations of: (#1), (#2), (#3) ti (#4)
(#1) This amount may increase depending on the extent of work
performed within this structure. As stated, the total reflects
2 million dollars used to upqrade the "shell" of the building with
little interior work included. I have determined 4 million to be
the minimum amount required t.o bring this property to a marketable
condition.
for the entire 20 year period. The interest has not been adjusted (#2) All calculations have been made using 1st year interest costs
to reflect amortization and as such, should be considered highly
conservative. Actual interest. should be much lower than
represented in this report (assuming 4 million, 20 years and 5.5%)
(#3) The 147,456 sq.ft. figure used for all calculations within
this summary does not include 11,200 sq. ft. located at the
basement level.
(#4) The $12.70 lease rate was determined after speaking with Mr.
Chris Zillig (owner of 2 str:.p malls in the City of Muskego). Mr.
centers and also charges a separate fee to cover maintenance,
Zillig reported he charges between $10 and $13 for spaces in his
insurance, snowplowing, water, sewer, taxes, etc., which runs from
0 used in this report. It should be understood however, that the
$2.70 to $3.25. Thus $10.00 + $2.70 = $12.70 per sq. ft. charge
City should consider existing strip mall owners when determining
the proper lease rate for City space, as the City would not want
to assume a highly competitive pricing posture. I would suggest
that the City set it's rate ai: the high end of the local scale, in
order to avoid any bad feelinqs among local strip mall owners.
Further notes of interest:
I recently contacted Mr. A1 Christiansen, City of Ladysmith
Planner, who informed me that Ladysmith has been purchasing
abandoned or distressed manufacturing facilities for 12 years.
They rehabilitate the properties, then lease them. To date they
have completed 5 buildings, of which 2 have been sold and 3 are
currently leased.
Several of the Ladysmith projects were confined to "Restricted use
Revenues" as General Purpose Revenues were determined to be
inappropriate. TIF's may be usable for certain projects.
Mr Christiansen anticipates the City of Ladysmith will expand into
the retail market within the next year and one half. Citing
Christiansen emphasized the inportance of obtaining a statement of
concerns regarding possible competition with local business, Mr
statement, it is anticipated that issues such as pricing structure
support from the local Chamber of Commerce. To obtain such a
or possibly agreements to pursue complementary development will be
negotiated. He feels that done properly it can be a win/win for
the community.
Mr Christiansen also explained the advantages of creating a
"Redevelopment Authority", an autonomous governing body, which can
be created to simplify the borrowing, selling or other processes.
The Redevelopment Authority status also serves to minimize legal
liability by taking the "Deep Pockets" of the City out of the
picture.