Bloomington council approves $82.16 million guaranteed maximum price for Community Health and Wellness Center

Bloomington City Council on Monday approved a guaranteed maximum price (GMP) of $82,157,823 with construction manager-at-risk JE Dunn for the city's Community Health and Wellness Center and authorized a city-held contingency equal to 5% of that GMP, clearing the way for construction to begin this fall.

The council voted 5–0 to accept the GMP and to allow city leaders to execute related documents; the total project budget figure presented to council after adding the 5% contingency was $86,265,714. City staff said the GMP covers the contractor’s estimated materials and labor to build the facility; items procured separately by the city — including furniture, fitness equipment and artwork — are outside the JE Dunn GMP amendment.

The vote followed a 100% design-development presentation from HGA architects and project managers, who described site layout, two gymnasiums, a community auditorium, public-health clinic space and sustainability elements such as geothermal and on-site photovoltaics. Aaron (HGA) told council the design-development package has been completed and that the project is moving into construction documents.

Brett of JE Dunn described the estimating process in public comments and said substantial portions of the project are based on vendor quotes or trade-partner budgets. “We actually have closer to 60% of the project based on quoted numbers,” he said, adding that the GMP includes an allowance for escalation tied to the project schedule. Brett said the contract structure returns any savings against the GMP to the city: “If savings are realized at any point in the project against the GMP … those savings are returned to the city of Bloomington.”

City staff summarized project financing and cost buckets: hard construction costs (the JE Dunn GMP), furniture/fixtures/equipment procured by the city, and project contingencies and escalation allowances. The city reported approximately $3.0 million of interest earnings on bond proceeds that increased the project budget available for construction. Staff also said JE Dunn’s pre-construction work (previously authorized) informed the GMP amendment now before council.

Council members asked detailed questions about escalation exposure and the portion of scopes already contracted or quoted. Staff and the contractor responded that major scopes such as mechanical, electrical and concrete had been bid or quoted and that the GMP includes both quoted trade pricing and an escalation allowance intended to cover price movements between the GMP execution and when remaining trade contracts are awarded.

Council discussion also touched on neighborhood mitigation: several members asked that staff accelerate the planting of larger shrubs and trees for the landscape berm along Newton Avenue so adjacent residents see the screening benefit sooner. Staff noted county tree nursery and cost-share programs as potential tools and committed to further study of accelerated plantings and traffic-flow options to reduce impacts on Newton.

The action the council approved will amend JE Dunn’s existing contract to include the GMP; staff said demolition work at the Creekside site would begin later in October with construction to follow. Council members and project staff said a formal groundbreaking was planned the next day.

The project team listed remaining next steps: complete construction documents, continue trade procurement, abate and demolish the Creekside building, clear the site and start construction per the project schedule.

Ending — Next steps and oversight The council approval permits JE Dunn to execute Amendment No. 1 for construction work; staff said the city will continue to review bids, qualify trade partners with city staff participation, and return savings to the city per the contract terms. The project team and staff said they will continue to update council during construction and to work with neighborhood representatives on mitigation and wayfinding to reduce neighborhood impacts.