1981 REG MTG MIN AUG 18 - Laserfiche WebLink

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9 ibrar Mr. Trevino advised that the final preliminary plans and specifications will be presented this evening by Chuck King on the proposed Library, and Mr. King is prepared to tender to the City a good faith refundable deposit in the amount of $10,000, as well as evidence of financing from the American Realty Credit Corp- oration. Mr. Trevino stated the good faith deposit would be refundable upon com- pletion of final financing arrangements and commencement of the construction, how- ever, should this not come about, Mr. King would forfeit the $10,000. Mr. Trevino said that Mr. King will also be prepared this evening to give the Council the figure for which he can build the proposed Library, and Staff is additionally re- questing that Council waive the fees that the City collects, thereby reducing the cost. Mr. Trevino further advised that Mr. King has indicated it will take approximately 4 to 6 weeks to complete final plans and specifications, and if the Council desires, they may authorize the Mayor to execute a Lease/Leaseback Agreement upon review and approval of these plans. Mr. Trevino concluded Staff recommends that Council approve the presented final pre- liminary plans, waive the fees to reduce the total amount, and authorize the Mayor to sign the Lease/Leaseback Agreement. Mr. Chuck King of Chuck King and Associates, presented the design for the main floor of the library and stated they had gone ahead and designed the second floor. Mr. King said the area for the main floor is now over 10,000 sq. ft., so that in the future the library would be over 20,000 sq. ft. Mr. King reported a total cost of $758,000 for everything that is being presented tonight with the provision that the Building Fees normally collected by the City being waived. Councilman Hayes asked if he understood correctly, that is, both floors are being equally designed. Mr. King responded in the affirmative, saying the first floor is designed to accom- modate the second floor and is to be constructed with the electrical and plumbing in place for the future addition. Councilwoman Garcia asked how the additional square footage over the original — 9,000 sq. ft. planned came about. Mr. King responded that the additional footage was due to additional facilities incorporated into the design, such as, additional bathroom facilities and a larger floor area in a particular section of the library. Mr. King stated he understands that further minor changes have been requested by the Librarian, but these should not have a major affect on the design if incorporated right now. Mr. King stated both his architect and engineer are present tonight to answer questions. Mr. William Ashley, Colton resident, addressed the City Council expressing desire to speak on the library matter. Mayor Gonzales advised Mr. Ashley that this was not a public hearing this evening, therefore, not the proper time for citizen input. Councilman Rehrer was of the opinion that this is a public meeting and citizens have the right to be heard and to have input. Mr. William Ashley addressed the Council with regards to the Economic Recovery Act of 1981. Mr. Ashley reported there has been a change in depreciation scales and tax formulas, which the City of Colton should look into in order to get the best library possible for the dollar amount spent. Mr. Ashley informed the Council the March 1981 price for construction was $46.00 per sq. ft. and stated that he has calculated that the City could have a 12,000 sq. ft. library building using a $60.00 per sq. ft. construction cost. Additionally: Mr. Ashley pointed out to the Council that buildings can now be depreciated in 15 years and that the IRS has stated that this is 175% of declining balance on depreciation and calculating a 50% tax bracket and adding on state tax the developer would realize about $304,000 through depreciation and the Economic Recovery Act of 1981. Mr. Ashley stated that he was not against the developer receiving such funds, however, he believes in the trickle down theory and that if half of this amount or $150,000 were to be returned to the City, the citizens could have an 11,000 sq. ft. library. Mr. Chuck King asked to respond, saying that the 10,000 sq. ft. design is not that of a standard single story building, it's cost is more because the design is two and one half times what the normal standard would be. Mr. King said in A U G 18 1981