CITY ADMINISTRATIVE

OFFICE BUILDING
FEBRUARY 23, 2016

SERVING THE COMMUNITY INTO THE FUTURE!

WHERE WE HAVE BEEN

2007 & 2012
April 2015
September 2015
October 2015
November 2015
December 2015

Space Needs Studies

Presented project to Council
Council Informational project update
Council approved Koch Hazard contract
Council approved Henry Carlson contract
Council approved Financial advisory and
Bond counsel services contract
February 2016 Present design and budget to council

CITY ADMINISTRATIVE OFFICE BUILDING

PROJECT GOALS

Prepare for growth

Improve service to residents
Maximize the taxpayer dollar
Strengthen departmental collaboration
Improve employee work environment

CITY ADMINISTRATIVE OFFICE BUILDING

300,000

100,000

1,656

2000

1600

233,200

1,541
217,000

1,314
185,100

150,000

169,800

200,000

1,206

1,433
201,800

250,000

1,779

250,600

STAYING AHEAD OF GROWTH

1800

1400
1200
1000
800
600

400

50,000

200
0

0
2015

2020
SF Population

2025

2030

2035

Employees (based on 71/10,000 pop.)

CITY ADMINISTRATIVE OFFICE BUILDING

2040

DAKOTA AVENUE CORRIDOR

CITY ADMINISTRATIVE OFFICE BUILDING

SITE FEATURES

CITY ADMINISTRATIVE OFFICE BUILDING

BUILDING FEATURES

CITY ADMINISTRATIVE OFFICE BUILDING

FLOOR PLAN- BASEMENT

CITY ADMINISTRATIVE OFFICE BUILDING

FLOOR PLAN- FIRST

CITY ADMINISTRATIVE OFFICE BUILDING

FLOOR PLAN- SECOND

CITY ADMINISTRATIVE OFFICE BUILDING

BUILDING FEATURES

CITY ADMINISTRATIVE OFFICE BUILDING

BUILDING IT RIGHT

Room for growth

Expandable
Flexible
Enduring quality
Energy Efficient

CITY ADMINISTRATIVE OFFICE BUILDING

THE TIME IS RIGHT

CITY ADMINISTRATIVE OFFICE BUILDING

PROJECT BUDGET
$21.9 Million
Total project budget includes:
Final design
Building construction
Van Eps Park improvements
On-street parking improvements
Dakota Avenue Corridor Signage
Furniture, fixtures and equipment
Legal, administration
Contingency
CITY ADMINISTRATIVE OFFICE BUILDING

PROJECT FUNDING
Sales tax bonds
Sold by competitive bids
Tax-exempt rates
Maximum 20-year term
Repaid by 2nd penny sales tax revenues

CITY ADMINISTRATIVE OFFICE BUILDING

PROJECT FUNDING
Use of bond proceeds
$21.9 Million to fund project budget
Debt service reserve fund
Cost of issuance
Capitalized interest

CITY ADMINISTRATIVE OFFICE BUILDING

PER CAPITA DEBT

Fargo, ND

$4,638

Lincoln, NE

$4,530

Sioux City, IA

$3,178

Omaha, NE

$2,978

Des Moines, IA

$2,880

Topeka, KS

$2,774

Rochester, MN

$2,733

Sioux Falls, SD (with new bonds)

$2,382

Sioux Falls, SD

$2,258

Rapid City, SD

$2,037

Source: PFM (November 2015)

CITY ADMINISTRATIVE OFFICE BUILDING

2ND PENNY SALES TAX:

REVENUE HISTORY
$70
$60

Millions

$50
$40
$30
$20
$10
$-

CITY ADMINISTRATIVE OFFICE BUILDING

Average annual increase of 6%

Millions

2ND PENNY SALES TAX: FUTURE

$130
$120
$110
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-

CITY ADMINISTRATIVE OFFICE BUILDING

Assumes 3% Annual Growth in Revenue

2ND PENNY SALES TAX:

DEBT SERVICE COVERAGE
Assumes 3% Annual Growth in Revenue
Available for Other Capital
Existing Debt Payments

Millions

$130
$120
$110
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-

CITY ADMINISTRATIVE OFFICE BUILDING

2ND PENNY SALES TAX:

DEBT SERVICE COVERAGE WITH
ADMINISTRATION BUILDING BONDS
Available for Other Capital
New Bond Payments
Existing Debt Payments

Millions
Millions

$130
$120
$110
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-

CITY ADMINISTRATIVE OFFICE BUILDING

Assumes 3% Annual Growth in Revenue

NEXT STEPS
Seek Council authorization to proceed with project:
Bond ordinance
1st reading March 1st
2nd reading & adoption March 8th
If approved:
Initiate next phase of Architect and CMAR contracts
Bond sale process

CITY ADMINISTRATIVE OFFICE BUILDING

CITY ADMINSTRATIVE OFFICE BUILDING

THANK YOU!
QUESTIONS?