City Hall redevelopment estimate narrows; staff outlines value‑engineering, phased park and monthly reporting

City staff told the Board of Mayor and Aldermen on April 8 that the city hall redevelopment remains under active cost review and value engineering, with the construction total for the full redevelopment estimated at about $86 million to $92 million and the broader program totaling in the roughly $101 million to $107 million range.

Project presenters provided a line‑item update: a functional city hall “sticks and bricks” range of $55 million to $58 million; promenade/square roughly $1.0–$1.2 million; a parking garage currently estimated at $17–$18 million (down from earlier $19 million); shell buildout of lower‑level tenant space $700,000–$1,000,000; internal site work (demo, utilities, abatement) in ERP1 at about $8.5–$8.9 million; and a park component at $3.0–$3.5 million. The first ERP package was reported at $8.9 million with roughly $425,000 in contingencies and allowances within that lot.

Staff described approximately $7 million of overall contingencies built into the program numbers to cover design and construction contingencies and a roughly 2% escalation allowance. Presenters said the estimate range has tightened from earlier work and stressed continuing uncertainty in lead times, tariffs and long‑lead MEP and AV equipment. Team members said the Guaranteed Maximum Price (GMP) from the construction manager at risk (CMAR) is expected in February 2026.

The project team reviewed multiple value‑engineering (VE) ideas already under consideration, including removing coffered/beam ceiling millwork in non‑public spaces, reducing square footage of wood flooring in lower‑traffic office areas in favor of LVT/carpet, revising garage lighting to lower lumen counts while preserving visibility, and phasing or reducing the initial scope of the downtown park. The team said earlier choices to move staff into interim spaces without a commercial moving contractor saved “hundreds of thousands of dollars.”

Several aldermen pressed for limits on phasing that would delay core exterior features. Alderman Baggett, Alderman Brown and others emphasized keeping the streetscape on Third Avenue and the park’s primary elements in the initial work. Staff said parkland impact fees in the surrounding quadrant total about $500,000 and could be applied toward the park scope; staff also flagged the option to phase hardscape and amenities over multiple years rather than deferring core elements that could become more expensive later.

On procurement and schedule, presenters said ERP2 will include structural and long‑lead MEP items and procurement for those goods is being planned to reduce tariff and lead‑time exposure. The team said they are tracking lead times and tariff risk weekly and recommended early purchasing of items (AV, low‑voltage, some equipment) where cost and schedule risk justifies it.

Staff also showed a draft monthly project report format with photos and schedule and budget highlights, to be distributed to aldermen each month.

Discussion vs. decision: the work session recorded an informational update and direction to continue value engineering and procurement planning; the board did not adopt a resolution or appropriate funds at the meeting. Key outstanding items are the ERP2 procurement list, GMP negotiations with the CMAR and final park scope decisions.

Next steps: staff will provide the monthly reports, refine ERP2 content, continue VE analysis and return to the board with the Creekside project and any recommended phasing or funding changes for city hall.