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1988 LIB Expoptions CITY OF SANDY  ELECTRONIC DOCUMENT ARCHIVING COVER SHEET C2TY OF SANDY, OREGON FOLDER STRUCTURE /.- " L;'~ A~ /-. '/ (Depamnent) DOCUMENT NAME: DATE RANGE: 1995-2000 1975-1980 1990-1995 1970-1975 1985-1990 Before 1970 1980-1985 RETENTION: ,//None 10 years 1 year 20 years 2 years Permanent 5 years _ DISPOSITION OF DOCUMENT AFTER SCANNING: Return to Department Store at T-/Recycle WARRANTY DEED ~VERYTT /,. BREWSTER and EUGENIE V. BREWSTER, hereinafter Grantor, convey to the CITY OF SANDY, hereinafter called ~.11 that ?eal properoy sitaateO in C!ackamas County, of Ore~on~ de,scribed as: ~ tract of land situated in the southeast one- qt~amteP of Section 1~, T. 2 S., R. z[ E.~ of the ~..~. :..~., more particularly described as follows: Be~linnin{[ at an iron Pod in the southerly line of ., =n Street which bears South 6© 42' East 61 85 feet and South 76o 1~' .?lest 277.29 feet from the southeast corner of "Otto Meinig's lrd Addition to Sandy"~ a {~uly PecoPded plat~ thence South 76o 1~' ~/est aioni~} the southerly line of said Main StPeet~ i5fl.77' feet to the most northerly north- ea~:t corner of that certain tract of land conve~?d to the City of Sandy, by deed recorded in Book l}a~'So 6}~ Deed Records; thence South 1~© 47' East at ri~}ht angeles to Main Street and along the easterly line of sai0 City of Sandy property 294.40 feet; thence North 76© I~' East parallel ;.~ith the southerly line of said Main Street, 1~.77 feet; thence North !~o z~7' West 29~.Z~0 feet to the point of beginning~ ccvcu&~nt that Grantor is thc o~ner of the above-described pro- f:mee of all encumbrances except (1) Sandy city liens, if any~ (2) 196.~-69 real property taxes, ()) Ea~ement as contained in deed, including the terms and provisions thereof, fPom Averytt A. Brewster and ~lugenie V. BPewster, to Armond G. HoPton~ dated July 17~ i~.,ob~ recorded July 22, 1968, Fee No. 68 1}751, des- Be:uinning at the northeast corner of the above des- cribed tract of land~ thence S. 76o !~' W. along the ~:5outh line of o'"id Main ~tPeet, 81 00 feet~ thence S dp 02' ~0" E. ~0.00 feet; thence S. ~o 49' E. 21.58 feat to a point in the east line of the above described tz~act; thence N. 1~° 4.7' W. along said east line to the point of beginning~ (]J) Easement, as contained in deed~ including the tePms and provisions thereof~ from Cedar Plaza~ Inc., an Oregon coz~poration to AvePytt A. Bre~,~steP and Eugenic V. BPewster, husoand and wife~ dated March 17, 1967, recorded MaPch 20~ 1967, Fee No. ~926~ in Book 687, page 201~ Deed Records. (Affects ~,,fest 25 feet)~ ..~ili ~,~aPrant and defend the same against all pePsons who may ~ claim the same~ except as shown above. -1- The true and actual consideration for this transfer is i~i.}'hteen Thousand Dollars (;~,~18,000.00). The foregoing recital of consideration is true as I v.s-riiy believe. ~_~c: thi~ day of January~ 1969 Averytt ~rewst er ~~ V. Brewster SS. ..... t~,~ of Clackamas) Personally appeared Zhe above-named Averyt~ A. Brew e__ and acknowledged the foregoing instrument t,c ue zho2. r vc!ur~taPy act. Before me: Notar~ ~b~ic fo~Or;gon WARRANTY DEED (CORPORATION) THE SANDY BAPTIST CHAPEL ,a O?~GON corporation, hereinafter called grantor, conveys to (State of incorporation) THE CITY OF SANDY al that real property situated in CLACKANAS County, State of Oregon, described as: Refer to ' ' - .." ~fip.-e~ 1-~reto ~nd by thi~ reference incorporated herein: ;::U-~B!T "A" A ~r.?ct in ~he Southwes~ quarter of the Southwest quarter of the Northwes~ ~:u:,rter of Section 13, in To:,mship 2 South, Range 4 East, of the Willamette Neridian, in the City of Sandy, County of Clack~as and State of ~egon, described as follows: ¢~ .... nn~no at a point on the one-~arter section of 263.1 feet West of the Southeast corner of the Southwest quarter of the Southwest quarter of the :No~h.,~st ~uarter of :;aid Section 13; thmce West on one-~arter section line 30 feet, more or le3s, to the Southeast corner of a tract of land conveyed to Study Hasonic Temple Association, by deed recorded November 21, 1935 in iced Book 229, Page 504: thence North 104.6 feet to an iron pipe in the Soutt :~.~i. de of the county road; thence South 74° E2st on the South line of said =~{o:'~z o~ at, more or le3s to a point North of the place of beginning; 2~ .......... South to the olace of beginning. ~:=~ tr-:ct in the South~.~est quarter of the Southwest quarter of the North<~,est ~,,~rter of Section 13, in Tmmship 2 South, Range 4 East, of the Will~ette ~:cridi~n, in the City of Sandy, County o.f Clack~as and State of Oregon, uin i g at an iron pipe, 396.00 feet East of the North~est corner of the ~;:.~r~ -¢ :t quainter of the Southwest quarter of Section 13, in ?ownship 2 ;outh, R'n;:~ 4 Eutt of the Will,~ette Meridian; thence South 160.00 feet to -,..~!ut' thence ~,?~:;t 132.00 ~eet to a point; thence North 160.00 .feet to ~- point~ on the center line of said Section 13; thence East 132.00 feet along ' . ......... ter line to the place of beginning. o819 Personally appeared parties who, being duly sworn, did say that he is the president & Pastor, respectively of Th? E:mdy Baptist Chapel, a co~oration and that the seal affixed to the foregoing instrument is the corporate seal of said corporation and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors; and he acknowledged said instrument to be its voluntary act and deed. Before me: ~-~'~ My commission expires: Ju~e 19~ ~981 ' The dollar amount should include cash plus all encumbrances existing against the property to which the ~)roperty remains subject or which the purchaser agrees to pay or assume. tf consideration includes other property or value, add the following: "However, the actual consideration consists of or includes other property or value given or promised which is part of the,'the whole consideration." (Indicate which) WARRANTY DEED (CORPORATION) CT~C r~c nQC~ The S.'ndZ B~isL Ch,n el =u-~=~ x.- ~'~ The Ci'- ~ ~ ¢ ~ · ,~:. o~2 ~ = :~ E o S".ndy, Ore~-on 97055 ,~ .,,oo,.~ coyenant(r~) ~ttlat 9rantor is.owner.o,f th.e above, d, escribe(j prgpertyofree of all encum, bran~cesoexcept..t!!.e right.?- the pU.D£1C in and to nnac pornlon or tne adore properny lying ':~,ltnzn the limits of roads and highways; reservations of mineral lands, except coal or and will warrant and defend the same against all persons who may lawfully claim the same, except as shown above. The true and actual consideration for this transfer is $125 ~ Send Tax Statements To: City of Sandy PO Box 116 Sandy, Oregon 97055 Signed by authority of the Board of Directors, with the seal of said corporation affixed, this 15th day of June ~ 19 78 (Corporate Seal) '~ ~ -' , . "~'~*' i' ~'~' ,/" / '~ President Edward R. Grable, Pastor STATE OF OREGON, County of Clack~as ) ss. June 15 , ~978 Personally appeared __ parties who, being duly sworn, did say that he is the president & Pastor, respectively of The Sandy Baptist Chapel, a corporation and that the seat affixed to the fore~oin9 instrument is the corporate seal of said corporation and that said instrument was sioned and sealed in behalf of said corporation by authority of its Board of Directors; and he acknowledged said instrument to be its voluntary act and deed. - Before me: ,..: ~ ~t.l}'cLd ,x~,,~l Notary Public for Oregon My commission expires: ~u~e 19~ ~981 ' The dollar amount should include cash plus all encumbrances existing against the property to which the property remains subject or which the purchaser agrees to pay or assume. ** If consideration includes other property or value, add the following: "However, the actual consideration consists of or includes other property or value given or promised which is part of the/the whole consideration." (Indicate which) WARRANTY DEED (CORPORATION) ~= ~ The Sandy Baptist Chapel ~°~'~ ~ .~ TO ~o The City of Sandy ~ ~=~=.~o ~ o PO Box 116 g~ ~ ~ S~.noy, ~egon 97055 ~o~ ~o~°~".~.~.- 461645-8 o~ ,~ RI~;POI~T ~l'O TIlE ?4AYOR AND CITY COUNCIL CITY OF SANDY ALTERNATIVES FOR LIBRARY/SENIOR-COMMUNITY CENTER/CITY HALL/MUSEUM FACILITY EXPANSION Introduction and Background Two years ago during goal setting 'the Council prioritized a number of needs. Tied for number one on the list was expansion of the' Library, Police and City Hall facilities. Although somewhat down on the list also receiving a high number of points was determining the feasibility of a multi-use building including Senior Center, Performing Arts, Recreation and Museum. There are several possibilities for obtaining all or some of them " collectively. It was my feeling that a building that could potentially incorporate all of the municipal services and uses could be more cost effective than each independently working on " their own project. My rational was that certain aspects such as entrance, lobby, restrooms facilities, conference room as well as others could be shared particularly since many of the uses are used for only a few hours a day or on certain days of the week. A number of ideas were investigated including the purchase of a single family house on Pleasant Street, purchase of the medical office building east of City Hall, purchase of the old Thriftway Building and the Heritage Square Building. All of these were rejected for one reason or another. At about the same time a task force from the Senior/Community Center was exploring possibilities for a multi-use facility. The focus of the task force was looking at sites for construction of a new building. Sites included the area south of the lower parking lot in Meinig Park, an area east of Langensand just off McCormick Drive, the old Meinig house site, and also Tupper Park. During the process, I drew a couple of conclusions. One is that it was extremely difficult to include the needs of the Sandy Community Players for a theater because of the unique needs that a theater has and their incompatibility with others uses. The second conclusion was that because of the costs associated with land, expansion to the south (off the rear) of the existing City Hall would be cost effective at least from the stand point of not having to purchase land. Early in 1986, when we had been working with Bruce Samuelson Architect to come up with site plans, floor plans and cost estimates for expanding to the south, the Council suggested that the old Thriftway Building may be able to be purchased at far less than what I understood. I began discussing what the realities might be with a representative from Mercury Development. At that time, Mercury Development was preparing to sell a large number of their shopping centers and the Old Thriftway site was involved. This complicated discussions until Mercury decided not to proceed with the multiple sale. Again with this building, it was necessary to prepare a floor plan and develop cost estimates from that floor plan. Up until two weeks ago, I was using an estimate of $20.00 per square foot for remodeling as a means of having some figure to plug into the overall financial projections. The whole idea went sour (in my mind) when I received the cost estimates last week which were over $60.00 per square foot. Not wanting to trash a years worth of work, I have included the old Thriftway Building as one of the three alternatives for consideration by the Council. The three alternatives are: Alternative A Purchase of the old Thriftway Building, sell our corner lot at Meinig as well as the Senior/Community Center and move the Senior/Community Center, City Council, Court, and Library into the old Thriftway Building and remodeling of the existing City Hall for Police, Administration, Finance, Community Development functions. Alternative B To expand the existing City Hall providing a greatly expanded Library and Police Department as well as some modest additional improvement in space for Administration, Finance and Community Development. Alternative C New construction of a building (possibly on the Boitano property) to house only the Library. We have done little research on this option. *Advantages/Disadvantages of Alternatives A, B, & C. Alternative A is by far the most comprehensive and expensive alternative. It provides centralized municipal services in a very functional, efficient and useful use of the two adjacent buildings (old Thriftway and City Hall). It provides good access and parking. It allows for future expansion and meets "all" the needs with the advantage that all of the functions in the old Thriftway Building would be on one floor. The great disadvantage is the high costs associated with the project. Alternative B. This addresses most of the needs that have been articulated. It costs less than Alternative A however still a substantial project. It makes better utilization of the existing City Hall. It does not address either the Senior/Community Center or Pioneer Association Museum needs. It presents some real challenges with regard to parking. Alternative C has the advantages of new construction: simple design, energy efficient, cost effective and no frills, however, it does not address any of the other needs (Police, Community/Senior Center, Administration). The access and visibility are poorer than the existing site. Ov(~c the lass kwo ycara while looking aL various plans, discussing neods of various deparLmenCs and lookin9 at various pieces of properties, a number of considerations have been discussed, researched an~ ~ust plain "hashed over" I would like to bring }ust a £ew of these to your attention as they may assist you in understanding the evolution o£ the proposals. A. The City has an application in £or library 9rant ~unds and is in a good position to receive $100,000.00. If we are unable to put a project together this year, it may be a while, if ever, before similar funds would be available. B. It is advantageous for the City to use up existing space in the commercial area if possible rather than adding to the surplus of space available. The other side of this issue is that by purchasing existing space removes that space from the tax rolls. For all of the proposals I have tried to use a serial levy over a three or more year period to raise funds rather than through bonding because of the additional costs associated with issuing bonds as well as the interest cost with bonds. The disadvantage of a serial levy is that you don't get all the money up front which means the improvements need to be staggered. Advantages with both A and B is concentrating or at least keeping city services in one building or one area as a convenience to the public. Although we have held off for a couple of years doing required maintenance to the existing City Hall/Library Building even if no changes are made, significant improvements including a new roof and heating system roughly estimated at $20-30,000.00 will be necessary. Financial Implications of Alternatives A & B June has prepared two alternative methods of financing for alternatives A, B & C. One alternative is to fund the project on a three year serial levy and the other is to bond for the project and repay those bonds over a ten year period. Those financial summaries are listed as Exhibits A-l, A-2, B-i, B-2 ,C-1 and C-2. Obviously there are many other alternatives available including serial levies anywhere from four to ten years and bonding for more than 10 years up to as many as 30 years. There are also many alternatives on materials, methods, and extent of improvements, however, the cost estimates do provide a general overview of the impacts of each proposal. Conclusions and Recommendations Alternative A concluded with very disappointing results because of the cost estimates. After using estimations of $200,000.00 to $400,000.00 for remodeling, I was dismayed to get the actual architect's estimate of $927,000.00. I ~efinitely believe costs for both Alternative A and Alternative B can be reduced* 58 A distinct conclusion is that we simply have "needs and desires" in tt~e~ form of goals that are unattainable. Because decisions on these alternatives or others are purely a policy making decision, I do not intend to make a firm recommendation to the Council on a direction to pursue. I feel that decision must come from the governing body and eventually from the citizens. However, I do feel that Plan B appears to have the greatest cost effectiveness from the standpoint of meeting needs. Thomas Reber, City Manager TR:mp * One lesson learned during the Bluff Road Project was that whenever costs are cut to meet budget somebody's ox is gored and somebody will end up unhappy. l Am CHiTECTURE "t BRUCE A. SAMUELSON A.I.A. 35 N.E. 17th Avenue · Portland, Oregon 97232 · (503) 239-7526 January 26, 1987 Project: City of Sandy CITY HALL/POLICE EXPANSION & REMODEL Mr. Tom Reber City Hanager City of Sandy P.O. Box 116 Sandy, OR. 97055 Dear ~-..,, . Reber: Enclosed are four(4) copies of our offices Preliminary Budget Estimate of Probable Construction Cost based upon the previously forwarded plans for expansion into the present Library and Council/Court spaces at City Hall. The anticipated remodeling cost of $272,960.00 for the approximate 7,675 sq. ft. indicated a probable cost of about $35.56 per square foot. Present new City Hall/Municipal building costs are averaging at a cost of $64.95 per square foot. As noted in the enclosed Estimate, we have included costs for two(2) new H.V.A.C. units with minimal present ductwork revisions, all new fluorescent lighting and a new T-Grid ceiling at the Upper Level so some of the existing tiles can be used to patch & replace the concealed tiles at the Lower Level. Please include these City Hall remodeling costs with the previously furnished Library/Court-Council/Community Center remodeling costs and let our office know if you need any further assistance on this project. Sincerely, Bruce A. Samuelson, A.I.A. JAN 2 ? 1987 PRELIMINARY BUDGET ESTIMATE: January 1987 City of Sandy CITY HALL EXPANSION: This Preliminary Budget Estimate for remodeling of the existing City Hall building contemplates expansion on both floor to the east to utilize the space now used for the Library and Council/Court functions and includes an approximate 520 sq.'ft. expansion to the south for Employee space at the Upper Level and Vestibule at the Lower Level. Also included is a new Stairwell at the south as the existin9 interior stairwell is incorporated into usable space for the building remodeling. The Probable Construction Costs are again based upon Prevailing Wage Rates and do not include fixtures or furnishings except as individually noted. UPPER LEVEL: Remove stairs $ 280.00 Remove partitions & relights & doors 1,195.00 Remove cabinets (for reuse) 175.00 Remove floor coverings 350.00 Remove plumbing fixtures 175.00 sawcut Lower floor & remove for piping 630.00 Dropbox & disposal 525.00 subtotal: Smj-~rJD-jl)l) CONSTRUCTION: 2 x 4 wood stud partitions & gyp. Bd. $13,520.00 Patch existing wallboard 600.00 New & relocated doors, frames & handrails 8,100.00 New stairs & handrails 2,025.00 New floor @Lav's 850.00 Platform @ Office expansion 500.00 Plywood sheathing & 1 x 4 cedar siding 4,175.00 Tile floor & base & walls @Lav's 3,490.00 Carpet & set-on base 7,425.00 T-Grid ceiling 4,400.00 Painting 3,500.00 Counters & shelves 6,625.00 Roll-up 1-hr. doors (3) 3,250.00 Expansion floor & roof & roofing 12,250.00 Relights 515.00 Patch Lower Level floor slab 400.00 Toilet partitions & accessories 2,920.00 subtotal:~ $'F~'~FS'~-O1) PLUMBING: Fixtures & piping 10,335.00 Kitchen unit & piping 2,540.00 subtotal: ~ H.V.A.C. $22,550.00 FIRE SPRINKLERS: $ 9,500.00 ELECTRICAL & LIGHTS $16,460.00 page 2 LOWER LEVEL: (Police) ~ $ 870.00 CONSllRUCTION: 2 x 4 stud partitions & Gyp Bd. $ 2,515.00 2 x 6 studs, sheathing 850.00 Raise floor @ Council 1,700.00 Concrete 10,350.00 Patch ceiling 1,250.00 Painting 1,610.00 Entry doors & sidelights & stair door 2,625.00 Interior doors, frames & hardware 2,250.00 Exterior doors, frames & hardware 2,420.00 Relight 900.00 Carpet (1,500 s.f.) 2,650.00 Counters & sink 2,505.00 Windows (casement/clad) 1,200.00 Conc. Landing, steps & handrail 385.00 subtotal: $~ PLUMBING: $ 825.00 H.V.A.C.: $ 17,700.00 FIRE SPRINKLERS: $ 7,875.00 ELECTRICAL & LIGHTS: $ 10,300.00 UPPER LEVEL: ~'E'I~OZ-T'FI-O1T? $ 3,330.00 CONSTRUCTION: 74,545.00 PLUMBING: 12,875.00 H.V.A.C.: 22,550.00 FIRE SPRINKLERS: 9,500.00 ELECTRICAL: 16,460.00 subtotal: $139,260.00 Contingency Sum 13,925.00 Supervision (1-month) 1,500.00 General Conditions 9,280.00 Overhead & Profit 16,395.00 BUDGET ESTIMATE: $'TB1)?.36'0'~0~ page 3 LOWER LEVEL: ~.' $ 870.00 CONSTRUCTION: 33,270.00 PLUMBING: 825.00 H.V.A.C.: 17,700.00 FIRE SPRINKLERS: 7,875.00 ELECTRICAL: 10,300.00 subtotal: $~ Contingency Sum 7,080.00 Supervision (1- month) 1,500.00 General Conditions 4,765.00 Overhead & Profit 8,420.00 BUDGET ESTIMATE: $~ UPPER LEVEL: $180,360.00 LOWER LEVEL: 92,605.00 BUDGET ESTIMATE TOTAL: $272,960.00 i~OH~C~ BRUCE A. SAMUELSON A.I.A. 35 N.E 17th Avenue · Portland, Oregon 97232 · (503) 239-7526 January 8, 1987 Project .... ,~;T.~Z" City of Sandy ~:~i~ LIBRARY/COUNCIL & COMMUNITY CENTER Mr. Tom Reber ...... City Manager City of Sandy P.O. Box 116 Sandy, OR. 97055 Dear Mr. Reber: Enclosed are three(3) prints of the new plan for the subject project spaces with revisions as noted during our meeting on January 6, 1987. The Library space has been increased by approximately 10' (1,000 s.f.) and additional shelving added. The Council/Court space has been expanded to one(l) room with seating for 117 shown and an additional 70 seats could be added at the adjacent Dining space for a seating capacity of at least 187-200 depending on chair size and aisle widths. A new "cashier" facility has been added to the LOBBY space for Court functions and this space could also be used, by "others" for selling tickets or (?) to Community functions. The Senior Conmmnity Center space notes Dining for 48 as shown (60 if lO/table) and could be expanded for an additional 96 (120 if lO/table) for large function seating for 144 to 180 with tables set in the Council/Court space. We now show two(2) single person offices and one(.1) two person office which could be expanded for three desks. This proposal only requires two folding wall partitions instead of the previous three, but for multiple usage you may wish to consider adding one more folding partition between the Community Center's Dining and Lounge spaces. Please review this new plan with all interested parties and let our office know if there are any major revisions desired prior to understanding the "takeoffs" for the Budget Estimate of Probable Cost. Sincerely, Bruce ^. Samuelson, ^.I.^. P.S. Two Prints each - Two alternate plans for City Hall extension. 64 PRELIMINARY BUDGET ESTIMATE: January 1987 City of Sandy LIBRARY/COUNCIL-COURT/CO~4UNITY CENTER REMODEL This Preliminary Budget Estimate for remodeling of the existing vacant Grocery Store building for the subject facility is based upon the Preliminary Drawings No. 1 & 2 dated January, 1987 prepared by Bruce A. Samuelson, A.I.A. for review of facilities desired. As a Municipality project costs are based upon mandated Prevailing Wage Rates for anticipated finishing of spaces and do not include fixtures or furnishings except as individually noted. DEMOLITION: Remove ceiling & walls $ 8,750.00 Sawcut floor slab 1,140.00 Remove floor slab & equip, curbs 6,150.00 Remove storefront & doors 640.00 Remove Block wall sections 1,080.00 Remove Built-Up roofing 10,000.00 Cutout for doors & windows 1,540.00 Sandblast exterior conc. block for painting 2,250.00 Drop boxes & disposal 1,750.00 subtotal: ~ SITE WORK: Sawcut conc. walks & asphalt $ 1,275.00 Excavation & Disposal 1,775.00 Walks & curbs, extruded curbs 1,660.00 Precast tire stops 300.00 Patch asphalt paving 875.00 Seal coat asphalt paving 2,500.00 Paint stall Lines & symbols 370.00 Lighting at parking 17,600.00 Irrigation system 1,250.00 ~ Topsoil & mulch 2,875.00 Landscape plants & trees 5,300.00 Pipe guard posts @ Lights 450.00 Subtotal: $'qJ6~L~l)'~Ol] CONSTRUCTION: Concrete foundation @ new Block walls $ 1,750.00 Block walls & planters 9,375.00 Concrete floor slab w/reinf. 4,650.00 Concrete fill @ equip, recess 875.00 Tile floor @ Lavatories 2,270.00 Tile floor @ Lobby 8,750.00 Tile floor @ Kitchen 1,750.00 Tile bases Lobby & Kitchen 1,200.00 Tile @ Lavatory walls 5,125.00 Storefront sash & doors 19,880.00 Windows 1,550.00 Relights 2,640.00 Folding wall & supports 12,730.00 Exterior H.M. doors, frames & hardware 1,815.00 Interior Wood doors, H.M. frames & hardware 12,630.00 S. Stl. passthrough w/door & Kit. counter tops 5,725.00 Toilet partitions & accessories 6,075.00 page 2 Framing & finish @ canopy @ entry 9,400.00 Insulate & Furr exterior/interior Block wall (R-8) 9,360.00 Interior Partitions & Gypsum Board 40,450.00 T-Grid ceiling 17,200.00 Council platform, desk & acoustic shell 5,490.00 Storage shelf units 1,260.00 Projection counter & screen 550.00 Work Room counter w/cupboards 1,900.00 Kitchen counter w/cupboards 3,800.00 Circulation desk 6,750.00 Audio room cabinets 6,125.00 Cashier space 725.00 Chalk/tackboard @ Meeting Room 480.00 Wood rail @ storefront sash 610.00 Skylights (6) 12,440.00 Roof insulation (2"-R-14) 16,700.00 Built-up roofing w/mineral cap sheet 20,050.00 Carpet 23,300.00 Interior painting & staining 15,000.00 Exterior painting (block walls) 5,700.00 Exterior staining (canopy) 675.00 Signage @ exterior 2,200.00 Flagpoles (2) 4,400.00 Kitchen Food Service Equipment 19,200.00 Subtotal: $"J"~'~'E~:OI) MECHANICAL: Sewer 9,600.00 Plumbing 25,425.00 Fire sprinklers 32,000.00 Heating, Ventilation & Airconditioning 88,000.00 Kitchen hoods & exhaust 10,000.00 Contingency sum 16,500.00 Subcontract Overhead & profit 27,225.00 Subtotal: $~l)~r~'~Sl)~l)l) ELECTRICAL: Average type project s.f. cost estimate: $135,725.00 DEMOLITION: $ 33,300.00 SITE WORK: 36,230.00 CONSTRUCTION: 322,555.00 MECliANICAL: 208,750.00 ELECTRICAL: 134,725.00 Subtotal: ~ Supervision (4 month project) 24,000.00 Contingency Sum 73,550.00 General Conditions 33,325.00 Overhead & Profit 60,650.00 Preliminary BUDGET ESTIMATE: $927,085.00 page 3 The above costs are based upon material quantity takeoff from the enclosed drawing prints and assumptions of finish materials as serviceable for use without excessive maintenance/repair costs and energy conservation insulation is included. We have not included any materi~is which would be considered extravagant or excessive in this estimate. Based upon an approximate floor area of the new space at 15,000 square feet, the above Budget Estimate would indicate a square foot cost of $61.80 for the remodeling and finishing of the present building shell for the new usage and the new site work at'the present parking lot for conformance with present Zoning and Building Codes. The noted costs are based upon construction costs for 1987 work as listed in the R.S. Means 1987 Building Construction Cost Estimate Book and the costs would require adjustment if the scope changes from that shown or if the project is delayed into 1988. Please review the above cost breakdown and the new drawings and let our office know if you have any questions or need additional services. Sincerely, Bruce A. Samuelson, A.I.A. ./ BRUCE A. SAMUELSON A.I.A. 35 N.E. 17th Avenue · Portland, Oregon 97232 · (503) 239-7526 RECEIVED January 6, 1986 Subject: ~t&t'~ '/ '-, City off Sandy CITY OF SANDY LIBRARY EXPANSION CITY HALL EXPANSION Mr. Tom Reber City of Sandy P.O. Box 116 Sandy, Oregon 97055 Dear Mr. Reber: At your request we have reviewed the new Preliminary Expansion and Remodeling plans that we have previously forwarded with our material,take-off estimate of Budget Es- timate costs dated September 3, 1985 and added costs for new work which was not in- cluded in the previous Estimate. Some deductions have been made where work was de- leted or reduced in amount from the previous plans. The previous costs for Site and Excavation costs have not been changed. The Upper Floor Remodeling costs now include the work at the present City Hall space. For economy, we have figured that the present lower level exterior doors can be rein- stalled at the Upper Floor to create the new Lobby Vestibule and that the present sidelight framing could be reused with new glass (tempered to fit new dimensions). The new roll-doen gates at the two (2) counters are priced for "UL" rated type (fusible link) as they are on public corridor spaces. The cost of the new counters at these openings are also included in our Estimate as they must work as a complete unit. As eith the previous estimate, costs include a complete new H.V.A.C. system (4-Units) at the roof. Nee carpeting at $30.O0/s.y. is included for the new lower level addi- tion space and for the existing and new Upper Level space except for the Lavatories which have sheet vinyl. As construction activity has not picked up much in volume as anticipated it might, we have reduced the Overhead & Profit percentage from 10% to 8% for this project. The Contingency sum is still included at 10~, and the escalation sum is still retained at 8% for future construction. Actual cost increase from July ~985 - January 1986 were at )%. The escalation probably will not show up as much in · age increases as it will for Contractors insurance costs (up over 100% from last year) and in Worker's Compensation rate which are anticipated to increase around 40% above last yea~ for construction workers. The~e has been no legislative change to the quirement of "Prevailing Wage Rates" for Public ~ork so all costs are based upon anti- cipated rates. 68 City of Sandy LIBRAR EXPANSION CIIY HALL EXPANSION '\ Page 2 We offer the following Preliminary Budget Estimate for the new proposed expansion and remodeling. Sitework and Excavation ........................... $ 30,845.00 Ground Floor (New) ................................ 134,910.00 Ground Floor (Remodel) ............................ Upper Floor (New) ................................. 163,365.00 Upper Floor (Remodel) ............................. CONSTRUCTION SUBTOTAL $380,190.00 General Conditions ................................ 22,800.00 Overhead & Profit ................................. SUBTOTAL $435,230.00 Contingency Sum ................................... 43~525,.00 PRELIHINARY ESTIMATE $478,755'.00 Escalation Costs .................................. ..3.8~300.00 PRELIMINARY BUDGET ESTIMATE: $517,055.~ The new Estimate of cost for the total of 9,3~0 s.f. of ne~ and ~emodeled space ~e compute a co~t of $55.36 per square foot of space. The ne~ 1986 P.S. Means Estimat- ing Book lists s.f. cost~ for Libraries at $96.80--$69.95--$86.75 and $50.?0--$63.?0-- $83.40 fo~ City Halls. We ~ould still recommend that you include the sum of $40,000.00 to the above noted construction cost for proper Full Service Architectural & Engineering services on this project. At your request ~e have also gone back through the material take-off of the previous estimate to come up ~ith a break do~n of costa for the Library and for City Hall work. This is difficult on a structure such as this ~he~e one space is above anothe~ because if the Library ~ere not above the other space, the Lower Level ~ould require "roofing" costs which at this time are included in the Library cost. For a somewhat equitable adjustment ~e have left the exterior column costs for the Upper Level space in the City Hall costs.. We have also placed 25~ of the H.V.A.C. cost for the Upper Level space in the City Hall costs. If ye include the same percentages for mark-ups to.the costs for the ~ork at the Library space ye ~ould estimate that this ~ork ~ould be.around $215,510 of the total estimated cost of $517,055.00 for the ~ork in construction. If you then elude the same 41.6% of construction cost for the Site and Excavation ~ork ($30,845.00 41.6% : $12,855.00) a total cost attributed to the Library space ~ould be around $228,3 This would equate to an allocation of 44% of the cost to the Library and 56% of the cos to the various City Hall spaces. Sincerely, Bruce A. Samuelson, A.I.A. BAS:tp~ 69 Alternative A - City Hall, Libr. ar.y, Commur~z'L'y E:er, ter .]ars 2/:.~::~:7 Exper, d i tut. es: Purcl"~ase Old Thr. ift~ay *( Remodel Old Thr. ift~ay 927,000 Red, ode1 Existing City Hall Total Expenditures $1,7~,D~¢ Revenues: Sale of Community C:enter & I]:or.r~er. *(reasonably) 175,~¢~ Pioneer. Association (unknown) 32,000 CDBG (good) 165,000 Federal Revenue Sharing (positive) 110,000 Library Trust (positive) 71,000 Library Grant (good) 100,00~ Fund Raising (good) 2,000 Tax Levy 1,045,000 Total Revenues $1,700,000 Principal $1,045,000 Interest 0.00 Term 3 Payme n t $348,333 Principal Interest Balance $1,045,000 Jan. 1~88 348,333 0 6~6,667 Jan. 1~8~ 348,333 0 348,333 Jan. 1~90 348,333 0 0 $1,045,000 $0 $1,045,000 Debt Service Levy Per Year Assessed Valuation 1987/88 $112,000,000 Annual Payment $348,333 Rental Income 26,000 Net Payment 322,333 Tax Levy $322,333 Tax Rate $2.88 Alter'.natzve A - C:i'~y ktal'l~ l_J.L,r-Ar'.y~ Comlr, unity Center. Jan Exper, cl i % ur.e s: F'ur. chase O1,J Thriftway *(no agr-eement) $500,000 Remode'l 01,J Thriftway 927,000 Remo,Jel Existing City Hall 273,000 Total Expenditures $1,700,000 Revenues: Sale of Community Center & Corner. *(reasonably) 175,000 Pioneer' ~sso¢iation (unknown) 32,000 CDBG (good) 165,000 Federal Revenue Sharing (positive) 110,000 Library Trust (positive) 71,000 Library Grant (good) 100,000 Fund Raising (good) 2,000 Tax Levy i,045,000 Total Revenues $1,700,000 *The ~ords in parenthesis describes "ho~ sure" me are of ~he figures. Principal $1,045,000 Interest 0.08 Term 10 Payment $155,736 Principa] Interest Ba]ance $1,045,000 Jan. 1~88 72,136 83,600 ~72,864 Jan. 1~8~ 77,~07 77,82~ 894,~58 Jan. 1~0 84,13~ 71,5~7 810,818 Jan. 1~1 ~0,870 64,865 71~,948 Jan. 1~2 ~8,140 57,5~6 621,808 Jan. 1~3 105,~1 4~,745 515,817 Jan. 1~4 114,470 41,265 401,346 Jan. 1~5 123,628 32,108 277,718 Jan. i~6 133,518 22,217 144,200 Jan. 1~77 144,200 11,536 0 $1,045,000 $512,358 $1,557,358 Debt Service Levy Per Year Assessed Valuation 1~87/88 $112,000,000 Annua] Payment $155,736 Rental Income 26,000 Net Payment 12~,736 Tax Levy $129,736 Tax Rate $1.16 A'lter. r,a[tve B - Expar',d City Hall, Lib, r'.ar'.y at Currer',t Site JaR 26,:~:7 Expo r,,J i t ur-es: Addition ~ Remodel $517,000 F'ar'.kzr, g Impr'ovements ~._'-~,000 Total Expenditures $542 ~ 000 Revenues: ; Federal Revenue Sharing (positive) 110,000 Librar-¥ Trust (positive) 71,000 Library Or. ant (good) ~00,000 Fund Raising (good) 2,000 Tax Levy 259~000 Total Revenues $542,000 Principal $25~,000 Interest 0.00 Term 3 Payment $86,333 Prin¢ipa~ Interest Balance $250~000 Jan. ~88 86,333 0 172,667 Jan. 1~89 86,333 0 86,333 Jan. 1~0 86,333 0 0 $259,000 $0 $259,000 Debt Service Levy Per Year Assessed Valuation 1987/88 $112,000~000 Annual Payment $86,333 Tax Levy $86,333 Tax Rate $0.77 Al ter. r~atJve b - E:.:par',,J City }-Ia11~ Libr. ar.y at E:urr'ent Site Jan Expeh.:J Z t ur. es: Ad,Jitior, ~4 Remo,Je] $517,000 Par. l.c ing Impr'ovements 25,000 Total Expenditur. es $542,000 RevenMes: Federal Revenue Sharing (positive) 110~000 Librar. y Trust (positive) 71,000 Library Gr-ant (good) 100,000 Fund Raising (good) 2,000 Tax Levy 259~000 Total Revenues $542,000 Prir,¢ipal $259,000 Interest 0.08 Term 10 Payment $38,599 Ppincipa] Intepest Balance $259,000 Jan. 1988 I 17,879 20,720 241,121 Jan. 1989 19,309 19,290 221,812 Jan. 1990 20,854 17,745 200,959 Jan. 1991 22,522 16,077 178,437 Jan. 1992 24,324 14,275 154,113 Jan. 1993 26,270 12,329 127,844 Jan. 1994 28,371 10,227 99,472 Jan. 1995 30,641 7,958 68,832 Jan. 1996 33,092 5,507 35,739 Jan. 1997 35,739 2,859 0 $259,000 $126,986 $385,986 Debt Sepvice Levy Pep Yeap Assessed Valuation 1987/88 $112,000,000 Annual Payment $38,600 Tax Levy $38,600 Tax Rate $0.34 A'tter-.na~ive C - Self-Cor, taine,J Libr'ar"y Jan 26,:37 Expen,J i t ur-es: Constru,:tior~ - 60 sq. ft. x 6000 $360,000 F'arking improvemer, ts 35,000 Lan.J 50,000 Total Expenditures $445,000 Revenues: : Library Trust (positive) 71~000 Library Grant (good) 100,000 Fund Raising (good) 2~000 Tax Levy 272~000 Total Revenues $445,000 Principal $272,000 Interest 0.00 Term 3 Payment $90,667 Pr. incipal Interest Balance $272,000 Jan. 1988 90,667 0 181~3~3 Jan. 1989 90,667 0 90,667 Jan. 1990 90,667 0 0 $272,000 $0 $272,000 Debt Service Levy Per Year Assessed Valuation 1987/88 $112,000,000 Annual Payment $90,667 Tax Levy $90,6~7 Tax Rate $0.81 AIter. r,ative iS -Sel f-Contail",ed l_~br, ar.¥ ,Jan 2~,~87 Lxpenditur'es: Construction - 60 SCl.ft. x 6000 $360,000 F'ar.k i rig Impr'ovement s 35~ 000 Land 50,000 Total Expenditures $445,000 Revenues: ~ Library Trust (positive) 71,000 Library Grant (good) 100,000 Fund Raising (good) 2,000 Tax Levy 272,000 Total Revenues $445,00~ Principal $272,000 Interest 0.08 Term 10 Payment $40,536 Principal Interest Balance $272,000 Jan. 1~88 18,776 21,760 253,224 Jan. 1989 20,278 20,258 232,~46 Jan. 1~0 21,900 i8,636 2ii,046 Jan. 1~1 23,652 16,884 187,3~3 Jan. 1~2 25,545 14,~1 161,84~ -.'. Jan. 1~93 27,588 12,~48 134,260 Jan. 1~94 2~,795 10,741 104~465 Jan. 1~95 32,179 8,357 72,286 Jan. 1~96 34,753 5,783 37,533 Jan. 1~7 37,533 3,003 0 $272,000 $133,360 $405,360 Debt Service Levy Per' Year Assessed Valuation 1987/88 $112,000,000 AnnuaI Payment $40,536 Tax Levy $40,536 Tax Rate $0.36 '~ ~ ~ol q~ ~-,~ ~ ~'~ . ~ ~ . . , ........ ~_ e~re n.~,r~n? -~,~ts for ~T~pr.lO cnrs, sincerely f THIS MAP IS FURNI~£D A.~ A ~NI£1,1C:[ lin LOCATING t"~IOF"[RT'I' AND THE ~..O~IPANY ASSUlaES NO LL~BILITY FO~ AA¢~' VAJIt~TK)~¢S A.~ MAY BE DI~LOSED BY ~TUAL SURVEY First Americ~ Title lnsur~ce ~mp~y of Oregon · "~,~ aeZ Ac. 0.,35 4c. t'?'~;} 0.35 Ac. O. eO Ac. '~ 0.// Ac.'.--/ " 190 · "-" (~,;-::)1 "--'" (;.:" i,c.~ ,2oo ,o '.,."(~) -,:.-- L .... -./, --4-- 'r qGr S~'REET _ ~:~,o-,,. i"'-- I I I . i i] 1 ~ U')' I I I I "" '" · 'd :.:' -. .... ;,w:~.~'-~,-~,7~,.- .... /J,,2,,/,l,,,~,; ,,,,,,,- HOOD ?t AVENUE .~J (VACATED DV 2"'274 "::"-';':"~i --- -'-4T '~i ::,_T · . s' ' '" ~i' ~c~ ~ 2900 41oo 4:~oo 43oo 19o'5 ~ I [ ;, [ii :. )°' l ' L~" --: I I I J I ?j,.,,i:,s.I ,s lo: .' PLEASAN"F" ' ..D..//, Fl Dx'/" !-FYi ARCHITECTURE F~ E C E IV E D jAN 9 1987 BRUCE A. SAMUELSON A.I.A. THE CITY OF S^ND¥ 35 N.E. 17th Avenue · Portland, Oregon 97232 · (503) 239-7526 January 28, 1987 Project: City of Sandy LIBRAJ~Y/COUNCIL/CO~4. CENTER CITY HALL REMODEL Mr. Tom Reber City Manager City of Sandy P.O. Box ll6 Sandy, OR. 97055 Dear Mr. Reber: Per your request enclosed are ten(10) sets of prints each of the Preliminary Drawings as follows: CITY HALL/LIBRARY EXPAJISION April, 1985 LIBRARY/COUNCIL/COld, UNITY CENTER REMODEL January, 1987 CITY HALL/POLICE REMODEL January, 1987 The prints of the January 1987 City Hall Remodeling drawings are a little different from the previous prints as we have completed some information and noted which are new walls as different from existing walls. Please let our office know if you need any additional information or if you wish to have us be available for the Council Meeting on Monday. Sincerely, Bruce A. Samuelson, A.Z.A. PRELIMINARY BUDGET ESTIMATE: January 1987 City of Sandy CITY HALL EXPANSION: This Preliminary Budget Estimate for remodeling of the existing City Hall building contemplates expansion on both floor to the east to utilize the space now used for the Library and Council/Court functions and includes an approximate 520 sq. ft. expansion to the south for Employee space at the Upper Level and Vestibule at the Lower Level. Also included is a new Stairwell at the south as the existing interior stairwell is incorporated into usable space for the building remodeling. The Probable Construction Costs are again based upon Prevailing Wage Rates and do not include fixtures or furnishings except as individually noted. UPPER LEVEL: Remove stairs S 280.00 Remove partitions & relights & doors 1,195.00 Remove cabinets (for reuse) 175.00 Remove floor coverings 350.00 Remove plumbing fixtures 175.00 sawcut Lower floor & remove for piping 630.00 Dropbox & disposal 525.00 subtotal: CONSTRUCTION: 2 x 4 wood stud partitions & gyp. Bd. S13,520.00 Patch existing wallboard 600.00 New & relocated doors, frames & handrails 8,100.00 New stairs & handrails 2,025.00 New floor @ Lay's 850.00 Platform @ Office expansion 500.00 Plywood sheathing & 1 x 4 cedar siding 4,175.00 Tile floor & base & walls @Lav's 3,490.00 Carpet & set-on base 7,425.00 T-Grid ceiling 4,400.00 Painting 3,500.00 Counters & shelves 6,625.00 Roll-up 1-hr. doors (3) 3,250.00 Expansion floor & roof & roofing 12,250.00 Relights 515.00 Patch Lower Level floor slab 400.00 Toilet partitions & accessories 2,920.00 subtotal: PLUMBING: Fixtures & piping 10,335.00 Kitchen unit & piping 2,540.00 subtotal: H.V.A.C. $22,550.00 FIRE SPRINKLERS: $ 9,500.00 ELECTRICAL & LIGHTS $16,460.00 page 2 LOWER LEVEL: (Police) DE'MD~FTDI~-: $ 870.00 CONSTRUCTION: 2 x 4 stud partitions & Gyp Bd. $ 2,515.00 2 x 6 studs, sheathing 850.00 Raise floor @ Council 1,700.00 Concrete 10,350.00 Patch ceiling 1,250.00 Painting 1,610.O0 Entry doors & sidelights & stair door 2,625.00 Interior doors, frames & hardware 2,250.00 Exterior doors, frames & hardware 2,420.00 Relight 900.00 Carpet (1,500 s.f.) 2,650.00 Counters & sink 2,505.00 Windows (casement/clad) 1,200.00 Conc. Landing, steps & handrail 385.00 subtotal: $~ PLUMBING: $ 825.00 H.V.A.C.: $ 17,700.00 FIRE SPRINKLERS: $ 7,875.00 ELECTRICAL & LIGHTS: $ 10,300.00 UPPER LEVEL: !7~'~l~Tl~Ol~-: $ 3,330.00 CONSTRUCTION: 74,545.00 PLUMBING: 12,875.00 H.V.A.C.: 22,550.00 FIRE SPRINKLERS: 9,500.00 ELECTRICAL: 16,460.00 subtotal: $139,260.00 Contingency Sum 13,925.00 Supervision (1-month) 1,500.00 General Conditions 9,280.00 Overhead & Profit 16,395.00 BUDGET ESTIMATE: ~ page 3 LOWER LEVEL: ~ $ 870.00 CONSTRUCTION: 33,270.00 PLUMBING: 825.00 H.V.A.C.: 17,700.00 FIRE SPRINKLERS: 7,875.00 ELECTRICAL: 10,300.00 subtotal: $~ Contingency Sum 7,080.00 Supervision (1- month) 1,500.00 General Conditions 4,765.00 Overhead & Profit 8,420.00 BUDGET ESTIMATE: $~ UPPER LEVEL: $180,360.00 LOWER LEVEL: 92,605.00 BUDGET ESTIMATE TOTAL: $272,960.00 PORTLAND COMPANY 338 N.W. FIFTH AVENUE Area Code 503 P.O. BOX 5308 Phone 228-8535 PORTLAND, OREGON 97228 February 4, 1986 Tom Reeber City Hall Sandy, Oregon 97055 'i~'~'~' ...... ~'~" .... Dear Tom: Enclosed is the information you requested on the property we have for sale in downtown Sandy. The property is currently producing $24,800 a year in income. The end spaces, although currently leased, could be used for further expansion as the current leases expire, and your needs grow, or released to provide further income. We are asking $900,000 for the building and property. If you do have interest, do not hesitate to call. Kevin Adams ~ Enclosures /~/ ~' Sandy Shopping Center ....................................... ii .................. Income. S~t~'~ary LEASE _.TENANT ~" GLA DATE EXPIRES INCREASES OPTIONS $/~SF MINIMUM % RENT CAM TAX INSUR TOTAL Vacant_ .............................15~! $6,00. 90,306 63,000 >-3~2f~ ~ 7,193 168,025 Toni's Lounge 390~ 2-1-82 1-31-92 $4.61 18,000 0 900 1,805 20,705 2-1~8y~_gegot.~ hndano's Pizza 496 8-1-85 8-1-86 5,652 0 316 57 6,201 ...... TOT~L'? 'i9',-452 113,958 .... 63,000 ' 8,442 ..... 9,055 194,931 chxcr Ber -P. O. / San - Oreqoon 9 7o 5 " 75o3-668 -4-oo6 i' January 21, 1986 RECEIVED ," · Mr. Wesley A. Doak ~ THE CITY OF SANDY State Librarian State Library Building Salem, OR 97310-0640 Dear Mr. Doak: An article in the East Metro section of The Oregonian on Thursday, January 16 (by Malcolm Boyd) was headlined "Sandy library expansion plans may be too modest." The lead paragraph stated, "Sandy's library may be unable to get state funds for a planned expansion of its facilities because it serves too many people." As a close observer (and regular user) of the Sandy Library, I was aware of the problem outlined in The Oregonian article -- namely that criteria used by the State Library board in awarding capital improvement grants include a provision that a library have 0.7 square feet of space per capita in its service area. Although the population of the city of Sandy is 3,500, its library serves approximately 10,000 people -- including a large population in the Hoodland corridor, and others in the unincor- porated rural areas surrounding the town. The Sandy Library does a superlative job of providing service from its present cramped quarters of about 1,700 square feet. It accomplishes this by keeping an unusually large percentage of its book inventory in circulation, and by utilizing its instant computer access to the 350,000 volumes in the Clackamas County library system. The proposal by the city Library Board for expansion of the Sandy Library's space would add 3,200 square feet, nearly tripling its present facility. In these times when the electorate expects (and has a right to expect) fiscal conservatism from government, it is a proposal which likely would have the support of responsible people in the community, including the City Council and the Sandy Area Chamber of Commerce. There are two important points in considering this "reason- able proposal": First, it is virtually certain that City of Sandy voters would not approve a bond issue which included expansion of the Mr. Wesley A. Doak, State Librarian -- January 21, 1986 -- 2 library to meet the space criteria of the State Library Board; city residents would be obligating themselves to provide the capital investment to serve about 6,500 residents outside the city limits. Second, the Sandy Library has demonstrated through a period of growth that it can give excellent service from a facility which is far smaller than the "standard" library, but which users recognize is now inadequate. The Sandy Library Board is not being penurious -- but, rather, practical -- in the proposed expansion. Why not reward this expression of citizen concern at the local level by waiving what, for the Sandy community, is an unrealistic space criterion? The Sandy Area Chamber of Commerce asks that you recommend a high priority to the grant requested by the City of Sandy for its library expansion proposal. Sincerely yours, SANDY AREA CHAMBER OF COMMERCE cc: Tom Reber Sue Newlands Mark Hatfie!d Bob Packwood Steve Starkovich Bob Shiprack HUTCHISON, HAMMOND & WALSH JOHN C. HUTCHISON A PROFESSIONAL CORPORATION TELEPHONE JOHN h. HAMMOND, JR. ATTORNEYS AT LAW (503) 656-1694 MICHAEL D. WALSH 209 BARCLAY BUILDING DEANnE 1. DARLING CORNER SEVENth & MAIN GREGORY k. ZEUthEn OREGON CITY, OREGON 97045 CONFIDENTIAL MEMORANDUM (Attorney/Client Privilege Asserted) TO: Thomas Reber, City Manager City of Sandy FROM: John H. Hammond, Jr. City Attorney SUBJECT: Applicability of the Proposed Tax Reform Act of 1985 to the City of Sandy's Use of Municipal Bonds to Purchase the Thriftway Building DATE: March 5, 1986 The City is presently discussing the possibility of the purchase of the Thriftway building immediately across from the existent City Hall. The building, if purchased, would be utilized for library and senior citizen purposes. The building also presently includes Toni's Restaurant and Lounge and a pizza outlet. The thinking of the City was that the City, if it purchased the building, would continue to lease portions of the building space to the restaurant and pizza outlets. Those two commercial ventures now com- prise more than ten percent (10%) of the total square foot- age of the structure. There is now pending before the U.S. Congress the Tax Reform Act of 1985. The House of Representatives has adopted HR 3838 which is now the subject of hearings before the U.S. Senate. HR 3838 contains a provision which would remove from tax exempt status municipal bonds wherein ten percent (10%) or more of the proceeds of the issue would be used directly or indirectly to benefit a trade or business carried on by an individual other than a governmental unit. These bonds would be deemed to be nonessential function bonds. MEMORANDUM Thomas Reber, City Manager March 5, 1986 Page -2- There is a voluminous committee report by the Committee on Ways and Means of the House of Representatives on this bill which discusses at length how this direct or indirect benefit should be interpreted. That report categorically states that such private benefits will rise from "...an identifiable lease, contract or other ar- rangement that differentiates that person's use of the facility from the use by the public at large." The City's leasing of a portion of the building to a private entity would clearly fall within this category. The bill, as presently proposed, has an effective date of December 31, 1985. Thus, if the bill is finally adopted containing these restrictions and the retroactive date, the Act will be ef- fective retroactively. There are certain exceptions to the nontax exempt status of nonessential bonds. One of the more obvious exceptions is for exempt facility bonds wherein the net proceeds of an issue are used for certain specifically designated pur- poses, including airports, docks and moorages, mass commut- ing facilities, and water and sewer facilities. Qualified residential rental projects are also included. There does not appear to be an exception for the type of governmental structure with which we are here dealing. You have raised the possibility of the City purchasing only a portion of the structure after the structure being first converted to condominium status. Basically the argu- ment would be that bond proceeds would then only be spent for that portion of the building used by the City and, there- fore, no benefit would accrue to private individuals. That spin-off is not specifically addressed either by the Act or by the Committee report. It is not antici- pated that the Internal Revenue Service will adopt regula- tions implementing the Act for a considerable period of time after the Act is approved. I would anticipate a re- luctance on the underwriting community to purchase bonds MEMORANDUM Thomas Reber, City Manager March 5, 1986 Page -3- on a tax exempt basis for such a hybrid transaction if there are not specific administrative provisions dealing with such an option. It has been my experience that underwriters ~~ i J~es to issues are exceedingly conservati en it c such as these. -~--~:i~;~0~h-~. Hammond, Jr. / City Attorney JHH/kt HUTCHI$ON, HAMMOND,WALSH, HERNDON 8: DARLING A PROFESSIONAL CORPORATION ATTORNEYS AT LAW JOhN C. hUTChISON 5741 PORTLAND AVENUE REPLY tO: JOhN h. hAmMOND,JR. WEST LINN~OREGON 97068 P.O. BOX 648 MICHAEl d. waLsh WEST LiNN, OREGON 97068 ROBERT D. HERNDON TELEPHONE DEANNE L. DARLING (503) 656-1694 CONFIDENTIAL MEMORANDUM (Attorney/Client Privilege Asserted) TO: Thomas Reber, City Manager City of Sandy FROM: John H. Hammond, Jr. City Attorney SUBJECT: Legal Implications from Municipal Purchase of Thriftway Building Subject to Existent Private Leasehold DATE: December 9, 1986 The City for some time has been contemplating the purchase of the Thriftway building located immediately across from the existent City Hall. The building would include the now vacant Thriftway grocery store as well as Toni's Restau- rant and Lounge and a pizza outlet. The latter two business establishments are still in operation and are subject to existent leases. The thinking of the City, if it did acquire the building, would be to acquire it subject to the existent leases. You have asked this office to discuss the implications of purchasing a building subject to existent private lease- holds. We have attempted in this memorandum to address those concerns relating to such a situation. ORS 271.310 authorizes municipalities to acquire real property for public purposes and to subsequently lease all or a portion of the property to a private party if the City Council determines that the portion of the property to be acquired and which is subject to the lease would not be needed for public use within the period of the lease. The City Council would have to determine this by resolution prior to City acquisition of the property. It is my understanding that the City is generally desirous of honoring only the initial leasehold periods and would contemplate nonrene%¢al of the existent leaseholds at CONFIDENTIAL MEMORANDUM Thomas Reber December 9, 1986 Page -2- their termination so that the entire property would ulti- mately be used for a municipal purpose. This is a relatively important assumption in that real property may be acquired by a municipality only for a public use. It is permissible, however, as provided in ORS 271.310 for a portion of the building not to be needed for an immediate public use so long as it will ultimately be put to a public purpose. During the interim period, it is permissible to enter into a leasehold with a private party or to continue an existent leasehold. ORS 271.310(4) provides that the authority of a municipality to lease property includes the authority to lease such property prior to its acquisition. Any portion of a municipal property leased to a private party would be subject to applicable ad valorem taxes. ORS 271.360 provides that the lease with a private party would either have to include as a term of the lease that (1) the private party would be responsible for payment of applicable ad valorem taxes or (2) the applicable ad valorem taxes are paid by the municipality with tax payments being taken into account fixing the rental charge for the property. There are some potential complications arising from such an arrangement. The two existent business establishments would of course be subject to municipal control and regula- tion, as they are now. The City could have to be particu- larly mindful of carefully documenting any regulatory or disciplinary action taken against either business during the terms of the leaseholds as one of the possible consequences of municipal regulation could be the closing of the business, thus allowing the municipality to void the leasehold. This would allow the municipality to utilize the property for a public purpose at an earlier time than if the property continued to be subject to the existent leasehold. If such municiDal actions were not carefully documented, this could expose us to charges of breach of contract or conspiracy to void a contract. In the past there has been instances in which the City of Sandy has been involved in regulatory activities relating to Toni's Lounge. The possibility of continued regulatory action in the future cannot be dis- counted. Another issue is the possibility of the City of Sandy incurring potential dram shop liability as an owner of a facility which serves alcoholic beverages. Fortunately, CONFIDENTIAL MEMORANDUM Thomas Reber December 9, 1986 Page -3- revisions in the dram shop act and recent court opinions appear to clearly hold that an owner of an establishment who does not himself actually serve or provide alcoholic bever- ages to a guest or patron is not liable for off premise damages caused by the intoxicated patron. (ORS 30.950; Wiener vs. Gama Phi, ATO Fraternity, 258 Or 632 (1971).) A more real and practical concern, however, may be the stigma that the City of Sandy would incur in the community by owning a facility which serves alcoholic beverages. This may have significant political implications in the decision making ~ process. ~/~-~ /~ ,/~"/Resp f~i 1 y~s.ubmi JHH/kt