Council to consider up-to-$60,000 contingency for 129 S. Sangamon demolition project

City building staff told the Committee of the Whole on Jan. 28 that the demolition at 129 South Sangamon Street is nearly complete and asked the council to approve two add-on repairs to protect adjacent structures and improve the exposed exterior wall.

Wes Woodhall (city building staff) said the building is roughly 95% demolished, the excavated gap remains near the neighboring foundation, and engineers recommended backfilling that gap with three lifts of flowable fill to shore the neighboring foundation. Woodhall said he received a bid of $20,000 for the fill. He also presented a separate quote of $28,700 to repair and repaint the newly exposed wall — tuckpointing joist pockets, filling openings and painting the brick red.

Woodhall told the committee the original contract, waterproofing ($6,000), and the two additional items plus an insurance recovery of $109,480 yield an estimated project cost increase he summarized in the meeting packet; using Woodhall’s figures, the total cost estimate he cited rose from about $210,000 to $155,219 after accounting for the insurance payment. He asked the council to place the item on the next regular meeting agenda and to allow the contractor the flexibility to address additional, unforeseen repairs as they appear while working at elevation.

Alderman Matt Bateman proposed placing a not-to-exceed $60,000 contingency on next week’s agenda to cover both the $20,000 and $28,700 bids plus some contingency for additional work. Councilmembers expressed mixed views: some said shoring and wall repairs make the property more salable and prevent additional exposed walls down the block, while others warned that spending funds before a confirmed purchaser risks wasting money if the property must be demolished later. The council placed the item on the regular agenda for next week for a formal vote and asked staff to identify the funding source.

Funding: Woodhall said the proposed funding source is a loan from the enterprise sewer fund set aside for the landscape-waste facility; councilmembers noted the project remains under budget because of the insurance recovery.

Why it matters: The demolition created an exposed interior wall that was not designed for long-term exterior exposure; shoring and repair would protect adjacent foundations and improve downtown appearance, potentially making the property more marketable and reducing future code issues.

Next steps: The council placed the item on the regular agenda and asked staff to include a recommended not-to-exceed authorization (Bateman suggested $60,000) and the funding source so the council can vote at the next meeting.