Second in our series of our each meeting is um focus on a little bit different.

So last meeting we focused really on kind of the projects, and this evening we're gonna talk a lot more about kind of the financial responsibility of the city and the financial impacts.

So with that, I will turn it over to Megan Davis.

I know some of you attended the first the first one.

We're gonna start tonight by giving a little bit of an introduction of staff.

I'll introduce staff here in a minute, and then we'll do a brief project overview.

We will talk about kind of the economic considerations, both in terms of the kind of current economic setting and the project financial kind of overview, and then we'll talk about funding options and we'll have some time for QA actually throughout the conversation.

So just um, well, let me just start off.

We have several staff who are gonna be involved in present tonight.

We have Morgan Walton and Morgan is in our finance director, acting finance directors, and she's gonna join the conversation tonight, and then we have Alex Nelson and Alex is also going to participate.

He's assistant to the city manager, and then we have Debbie and Natalie who are both in our communications team, and you saw some of our IT folks too.

And then we also have Maddie, who is with our kind of consulting financial consultant group.

So she has helped us with some of our financial analysis and our kind of projections around the financing for these projects.

So lots of support and lots of work gone into these projects to get to this stage, and we're really kind of just at the beginning, which is why we're here tonight is to start to get some input and feedback from the community on these potential projects and this potential opportunity and option for the community.

So we are looking at three projects for potential development and renovation.

The three projects that we're looking at are the recreation center, the BBRC, and this is for a renovation and expansion of the existing facility, and it would expand and enhance the aquatic center.

Um, also the fitness center, older adult programming, so add on a space for senior programming and other services for community members of all ages.

Um, also for a new civic center on South Public Road, just north of here, and it would be basically replacing this city hall building to provide a more accessible and welcoming public building that would be more of a civic center, so it would have a little bit more kind of interactive, accessible community space for people to have meetings, um for people to interact and engage in in local government activities as well as the services that we provide, and also to house staff and uh government services.

And then the third one is our service center.

You probably haven't been there before.

You can see on the map that it's um further east on South Boulder Road, and this is where we have many of our city services with public works, parks, open space.

We have a lot of maintenance that happens out of those buildings, we have our operations, our public works operations that happen out of those buildings.

So everything from kind of street maintenance, open space maintenance, park maintenance, that's where kind of the hub of all of those um like the equipment, the uh uh fleet, so the vehicles, our mechanics are there, all happen from that facility.

Um we identified these three projects through kind of an extensive assessment project or process where we looked at all of the city's facilities.

The city has really more than 30 plus actual facility buildings that we maintain, and that doesn't include things like kind of build like water buildings that house just like a pump station, it's actually facilities that we have to maintain, and we assessed all of our facilities and looked at the age, the condition, um, sort of the systems, the infrastructure, how they're utilized, the future needs of those facilities for the city, and identified these as the top priorities for making investments to better serve the community.

And so these are the three that we are here to talk about tonight.

Uh we did through that assessment process, we did some initial costing, so really just kind of preliminary costing around what it would look like to develop these projects.

Um, the recreation center and civic center would both be approximately 34 million dollars, um and the service center approximately six million.

So, in order to move these projects forward, it would be about a 74 million dollar investment.

And if we move forward with a debt service model, it'd be about just under six million a year, so 5.9 million of debt service required for a year, and that's looking at a 20-year bond issuance.

So these are all these projects were all kind of identified through the lens of our strategic outcomes.

And really some of the focus areas that we've been kind of thinking about are the excellent city services and infrastructure and how we are able to currently maintain these facilities successfully and really in kind of a fiscally responsible way, which is to say, you know, repairing and replacing expensive aging mechanical systems, getting to a point of failure at systems and kind of building infrastructure and what those next steps look like and what those investments look like and what replacement looks like.

We also want to have quality community amenities.

So when we think about the rec center, we know that our community likes to have community spaces where they can interact and engage and have you know kind of quality services.

And then also, of course, we're thinking about environmental stewardship, um, connectivity, a sense of place, and all these other factors as well.

So when we think about why now, um, it's always hard to uh you know find the right time.

Um, and these buildings range anywhere from 30 to over 50 years.

Um, so they are all quite old.

So we know that we're kind of again approaching end of life, but we also know that what we've seen in the past decades is that construction costs trends are obviously only going up.

And so every year that goes by, the costs of these projects get more expensive.

So if we wait a year, two years, um, again, we're really trying to weigh what those costs of sustaining and maintaining these buildings looks like, you know, in kind of comparison to what replacement looks like over time and what the cost of building it, say in five years or 10 years would be.

So we expect this to continue.

Um, again, we don't know what's going to happen with the economy.

We'll talk a little bit about that, but um, we do foresee that construction costs will likely continue to go up.

And in Colorado, this is C Doc, CDOT's construction cost index.

Um, that's we've seen that across the state of Colorado as well.

This is um from 2012.

Um, there's some fluctuations that occurred from year to year, but um, in general, the trend line is is increasing.

So we also, when we were looking through going through this process and conducting the assessments, just um being in the very early stages of these projects and not having completed any substantial design at this point, just the conceptual and preliminary design.

We wanted to get some ideas about what's happening in other communities on the front range with the construction and development of these types of projects.

So we have taken a look at several other similar projects just to see kind of cost comparisons and what other communities are doing and getting for their investments.

Um a couple examples we looked at is uh Parker is in the midst of a town hall project, and that's 32,000 square feet for about 30 35 million dollar project to be completed next year.

North Glen just completed a city hall, 34,000 square feet for 32 million.

Um Birth It's Recreation Center, that was actually completed a few years ago, and um that was a new build for 32 million, and Aurora had a much larger rec center and field house in 2023 for 42 million.

So we feel like when we look at sort of comparable types of amenities, um, we're in kind of the right ballpark for what we would what kind of investment we would need to be making to have these types of municipal services and amenities.

We are going to next talk about funding options and give you an overview of sales tax.

But are there questions on what I just discussed before we move on?

Is the spot for the proposed spot for the civic trend?

Sure.

The proposed spot for the civic center, um, just you said just north of here.