Title
Main Street Triangle Phase I - Architecture Engineering Agreement
History
Purpose: To execute an agreement between the Village of Orland Park and Metra Triangle FC, LLC to advance architecture and engineering professional services for Phase I of the Main Street Triangle.
Attachments:
Architecture Engineering Agreement
Architect’s Letter
Architecture & Engineering Budget
Design Development Deliverables
RTKL Contract
SpaceCo Contract
Woolpert Contract
Khatib Contract
Samtorono Contract
Summary:
Since early 2009, the Village has been in discussions with Flaherty and Collins (F&C) for the redevelopment of Phase I of the Main Street Triangle. While the Village and F&C have made significant progress in arriving at deal terms for the Phase I development, a redevelopment agreement (RDA) has not yet been finalized.
In order to continue advancing the architectural work necessary for the Phase I development, staff has negotiated a three-party agreement with the developer, F&C (under the LLC named Metra Triangle FC, LLC), and their consultants, including RTKL, SpaceCo, Khatib, Samtorono, and Woolpert (Consultants), allowing the Consultants to continue working toward producing 50% Design Development Drawings. Under the proposed architectural agreement, the Village will advance funding for the architecture and engineering services up to $300,000, while the RDA is finalized. Should the Village and F&C enter into a Board approved RDA, the $300,000 funding will be credited toward the overall project cost. If an RDA is not executed, the Village will be entitled to ownership of all related work product compiled by the consultants. This assures the Village that the work done by RTKL and others is not lost and can be utilized by the Village in the event that agreement is not reached with F&C. All work will be completed with Village guidance to ensure that the design principles necessary for the creation of a dynamic downtown environment are implemented in the Main Street Triangle. Under this agreement, the Village will pay the Consultants directly after reciept of approved invoices from F&C. F&C will effectively serve as an agent to facilitate and oversee the work, as well as review the work performed.
The purpose of advancing the architectural work is twofold. First, the 50% Design Development drawings enable both the Village and the developer to determine a more accurate not-to-exceed construction cost estimate based on more refined drawings. Second, advancing the architectural work allows the design work to proceed regardless of whether an RDA is finalized so that the Village policy of redevelopment is advanced.
This agreement between the Village, F&C and the Consultants is NOT a redevelopment agreement. It is an agreement to begin critical architectural work that will have to be done for this project. Staff anticipates bringing a redevelopment agreement to the Board for consideration within the next 45-90 days.
The Agreement:
The attached agreement, drafted by the Village’s Attorney, includes the details of the project. The Village will pay up to, but not to exceed, $300,000 for a 50% Design Development Drawing set to be prepared by the Consultants. The attached architecture and engineering budget indicates that the initial design fee for the project is estimated to be $300,000. This is a budget only and it is possible that 50% Design Development may cost less, but will not cost more than $300,000. Per the agreement, the Developer will submit invoices, with confirmation of completed work, to the Village. The Village will pay the Consultants directly until $300,000 has been spent. The agreement includes specific language to be included in each of the Consultants contracts.
Architects Letter:
In addition to the agreement and specific contract language, RTKL will also sign an architects letter that specifies two critical aspects of the agreement. First, if the Developer defaults during negotiations of the Redevelopment Agreement or the Redevelopment Agreement is terminated due to a default by the Developer, the Consultants can continue work for the Village directly. Second, in the event of a Termination Event, the Village shall have the ‘right to possession and use of all plans, specifications, and working drawings developer pursuant to the Agreement without additional cost.’
Consultants Contracts and Deliverables:
The Consultants contracts are attached for review and reference. Note that the attached contracts are for the entire project, not just Design Development. The geotechnical consultant has not yet been selected at this time but will be responsible for doing preliminary borings and studies of the site to help determine structural requirements for the project. It is currently estimated that $10,000 of the $300,000 would be paid to the geotechnical consultant and the Developer must provide that contract before any payment is issued.
50% Design Development Scope and Deliverables:
The attached list, titled 'Main Street Triangle 50% Design Development Proposed Deliverables' includes anticipated work and deliverables to be conducted under the terms of this agreement was compiled using the scopes provided by each Consultant. Any requested changes or additions (such as additional sketches, drawings and/or alternative concepts) will result in additional fees for professional services. Most consultants do not segregate 50% Design Development from 100% Design Development. It is assumed that the deliverables listed under Design Development will be approximately at 50% completion for the purposes of this agreement. Also note that the RTKL scope should include 2 three dimensional color renderings and 1 rendered master plan of the entire triangle. This has been added as a condition of approval.
This item is now before the Village Board for consideration.
Financial Impact
This is a TIF eligible expense and will be charged to the Main Street Triangle TIF Fund. A budget adjustment of $300,000 is required.
Recommended Action/Motion
I move to approve a budget adjustment to the Main Street Triangle TIF Fund in the amount of $300,000
And
I move to approve the Memorandum of Agreement between Metra Triangle FC, LLC and the Village of Orland Park, subject to the following conditions:
1) That the RTKL contract deliverable list be revised to include 2 three dimensional color renderings and one color rendered master plan of the entire Triangle as part of the schematic design phase.
2) The petitioner provide signed copies of every contract, that include the language from section 7 of the agreement, to the Village prior to the Village releasing any payments.
and
3) The contract for the geotechnical consultant be submitted, signed, and include language from section 7 of the agreement prior to the Village releasing any payments to the geotechnical consultant.