Title
Discuss and consider action to approve an amendment to the Purchase and Sale Agreement (PSA) with Griffin Swinerton, LLC for construction of City Hall within Downtown East, and authorizing the City Manager to execute the same.
Summary
In March 2024, City Council approved a Purchase and Sale Agreement (PSA) which outlined the terms in which Griffin Swinerton, LLC, the master developer of the Downtown East project, will construct the City Hall within the budgeted amount $86.9M. The total cost to deliver the City Hall was guaranteed to be delivered to the City at a cost not to exceed $86,886,289.75 for design and construction.
As construction has continued on City Hall since the Spring of 2025, Griffin Swinerton has realized savings to the project in the amount of $2.9M. The cost savings is a result of the guaranteed maximum price (GMP) for the project being established early in the design process, which occurred prior to the completion of 100% construction documents and before final permits were issued. This approach allowed the project to move forward efficiently, while providing flexibility to adapt as the design was refined. As is typical in construction projects, certain key elements, such as mechanical, electrical, and plumbing (MEP) systems, HVAC sizing, and distribution equipment, require detailed calculations that are finalized later in the design process. These final calculations can impact both the design and overall cost. Additionally, structural components were further developed during this phase, which ultimately led to cost savings. By setting the cost early but allowing for controlled adjustments as the design was finalized, the project was able to stay aligned with the original vision while ensuring feasibility and value for money.
Per the original PSA agreement with Griffin Swinerton, this savings would be to the benefit of Griffin Swinerton however, when considering the Downtown East project holistically, Griffin Swinerton has prop...
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