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Committee forwards $4.17 million GMP amendment for Gallagher Mansion improvements funded by state grant
Summary
The Land Use and Building Management Committee unanimously approved referring a GMP amendment with Downs Construction for the Cranberry Park Gallagher Mansion improvement project; the work is funded by a Department of Economic and Community Development (DECD) grant.
On Jan. 7 the Land Use and Building Management Committee voted to refer a guaranteed maximum price amendment to Downs Construction Company LLC for improvements to the Gallagher Mansion at Cranberry Park, authorizing Mayor Harry W. Rilling to execute a GMP amendment not to exceed $4,173,342. Committee members noted the project is fully funded by a state DECD grant.
Alan (city staff) described scope changes discovered during design that increased the project from the original estimate: demolition of a deteriorated five-car Parks Department garage and construction of a new storage garage with a small support space and bathroom; sanitary sewer investigations that did not locate the existing septic/sewer connection and the addition of a new, larger septic system sized to serve routine occupancy and event loads; and expanded air conditioning for principal first-floor and common spaces while some upstairs rooms remain without AC.
The added scope stemmed from field investigation. Alan said the design team could not find the existing sanitary system and therefore included full cleaning of sanitary lines beneath the building and the installation of a new septic system sized for larger event usage. Staff said the project budget accounts for these additions and that the total state grant for the project is $5 million.
Alan told the committee the bids came in higher than earlier estimates. The team completed additional value engineering exercises and reduced contingency levels (owner contingency down to roughly 2.5 percent) while keeping the project’s necessary scope. He said a new commercial-grade kitchen is not included in the current contract but could be funded later from residual grant dollars if available at project completion.
Terms read into the record include total trade costs of $3,298,884, a fixed fee of approximately $102,991 (2.5 percent), contingency of $121,554 (3 percent), and general conditions of $649,914 for a GMP amendment not to exceed $4,173,342. Staff said funds for the agreement are available from the state DECD grant account noted in the memo.
The committee voted unanimously to forward the GMP amendment to the Common Council. Staff projected that demolition and reconstruction of the garage could extend the schedule, but that renovation work may finish sooner; staff estimated project completion by late 2025 or sooner, depending on phasing.
Because the project is grant-funded, staff said it should not require local capital allocation beyond what the state grant covers; any remaining funds after construction could be used to upgrade kitchen equipment to commercial grade if feasible.
