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Council awards $3.05M IT relocation and renovation contract for 205 West Locust Street

Tyler City Council · July 24, 2025
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Summary

Council approved a $3,050,000 contract with Watson Commercial Construction and $430,000 in allowances for furniture and server racks to relocate and renovate IT operations at 205 West Locust Street, intended to resolve space, weight and HVAC constraints at City Hall.

The Tyler City Council approved a contract with Watson Commercial Construction for $3,050,000 to renovate and prepare 205 West Locust Street for the city’s IT infrastructure relocation, plus $430,000 in allowances for furniture, appliances and server racks.

IT staff described long‑standing constraints on the 3rd floor of City Hall, citing weight limits, insufficient space and inadequate air conditioning for modern server rooms. The city solicited proposals (advertised April 30 and May 7) and opened proposals on May 20; staff reported four bids with a low qualified bid of $3,050,000. Funding will come from the half‑cent sales tax allocation included in the budget (staff said $2,100,000 had been budgeted over three years), supplemented by about $1.4 million of internal IT general fund resources to cover the project total.

Staff outlined a roughly 180‑day construction schedule after contract execution and a brief preconstruction conference; they also discussed staged equipment moves and redundancy measures to maintain services and backup at a secondary site for 911/critical systems.

Councilmember Curtis moved to approve award of bid number 25‑035 to Watson Commercial Construction for $3,050,000 and allowances of $430,000; Nichols seconded. Council held a voice vote and approved the contract.