Building Needs Assessment Work Group Agenda

July 7, 2022 10:00 a.m. – 12:00 p.m.

Hybrid Meeting

Present:

Jean Anderson SCLS Consulting Services Coordinator

Corey Baumann SCLS Delivery Services Coordinator

Nan Brien SCLS Board Trustee

Kerrie Goeden  SCLS HR & Finance Coordinator

Gary Poulson SCLS Board Trustee

Jesse Stewart SCLS Fleet Manager

Vicki Teal SCLS Technology Services Coordinator

Kristi Williams SCLS Board Trustee

Martha Van Pelt SCLS Director

Guests:

Susan Feith SCLS Board Trustee

Devin Flanigan Keller Inc. Project Manager

David Haug Lighthouse Realty

Deb Haeffner SCLS Consultant

Rob Lindstrom Keller Architect

Call to Order by K. Goeden 10:02

Approval of previous meeting minutes: June 16, 2022

a.         Motion by J. Stewart to approve the minutes 

b.         Second by J. Anderson

c.        Approved. K. Williams and G. Poulson abstain

Reports: None

Discussion:

· Walton Commons

o Review estimated budget

§ D. Flanigan shared budget documents for Walton Commons-Facility Cost Analysis

§ Already spent $432,698

§ To complete new building at Walton Commons the estimate is $7.6 million - $8.1 million

· G. Poulson feels comfortable walking away from Walton Commons

· N. Brien feels like walking away since the revised building is not what we want or need

· C. Baumann is not optimistic about the building coming in within budget

· J. Anderson was excited about the building, she is new to the group as of January 2022, but it is overpriced and not the building we want

§ 100% consensus was reached to no longer pursue Walton Commons. BNAW’s recommendation to be put on the July 28, SCLS Board agenda. After the board approval and vote, D. Haug will contact the City of Madison to conduct the necessary next steps.

** Walton Commons Option A was revisited at the end of the meeting. D. Flanigan to follow up on this option. See notes below.

· Lakeland University Property

o Reviewed proposed floor plans

Two options on Lakeland:

1. Complete interior remodel of Lakeland with a delivery addition of 12,000 sf

a. This version allows the sorting floor and delivery offices to be moved into the Lakeland building and then a smaller addition for delivery would be required.

i. Concerns that this version removes most of the features of the current building that the team likes (wide hallway, lobby, reception, kitchenette, etc) and the additional cost of remodeling more of the office side in addition to building delivery space.

ii. Advantage is that the space is utilized more efficiently and allows a portion of delivery to be included in the existing building, which means a smaller addition.

iii. Question is which version costs less and provides what we want?

iv. Concerns with the delivery portion of the sketch. It does not include a drive through or angled parking and has the docks unloading into the garage instead of into the sort floor. First draft did not include wash bay.

2. Keep as much of the original Lakeland building as possible intact and remodel a portion of it. This would require a larger delivery addition of 15,000 sf.

a. This version essentially makes the Lakeland Building “HQ” and Delivery would be a separate addition.

b. Concerns about this version include the cost of a larger addition, the possible need for more land in order to accommodate the larger addition and the less efficient use of existing space within the Lakeland building.

c. The main question remains: Which version costs less and gives us what we need for both HQ and Delivery?

Consensus of group was that either option will work at this time. We will continue to explore both of these options. A lot of information is needed in order to answer the viability questions. Parking requirements, cost of additional land, covenants and building requirements, easements, etc. Team will work on gathering the necessary information.

Questions that need answers before moving forward:

Cross easements agreements for parking?

Snow removal, use of different lots

What are the covenants in place attached to the parcel?

Which is the driveway to access Lakeland University?

Ground lease details?

Refer to CSM for site parameters?

What are the Dane County Airport building design rules? Probably stricter than Walton Commons requirements– probably will require a building that matches the higher quality of exterior materials on the main building – meaning the warehouse at Lakeland will cost more than the same warehouse on Walton Commons. D. Haug thinks we should check to see if we can use cheaper materials on a percentage of the building that does not face Packers Avenue? Since the existing building uses higher quality materials on all sides, perhaps the addition will require lesser quality materials based on a percentage of the total?

Is there a required number of parking spaces per square foot and how is the number calculated?

Lakeland area architectural review committee? “Design and Review Committee” – what are their requirements?

What sides constitute the façade? (Does it includes both Pankratz & Packers Ave?). This relates to how many sides require using expensive materials.

130 ft needed for drive thru in delivery, too narrow on current map for Lakeland. Do we have access to do this? Enough land? Parking available?

How much to purchase extra “dogleg” strip of land west of Lakeland?

K. Goeden will send R. Lindstrom covenants and legal documents.

R. Lindstrom will sketch up both plans. He will attempt to revise the delivery addition to include a drive through and moving the docks to be adjacent to the sorting floor. Needs answers from covenants and easements. Floor Plan and site layout. Need to know how much land is needed.

D. Flanigan will work on rough estimates for both options. Engineers working on ball park figures.

D. Flanigan will send sketches so work group can move “puzzle pieces” within Lakeland building and provide feedback for 2 options for next meeting. The feedback will show how to layout the rooms in the building with attention to placing rooms/services in proximity to people involved with the service and access points to other related services.

D. Haug needs to find cost of additional land and which is viable west or north side. Need 5,000 or 10,000 ft additional toward Pankratz or pan handle/dog leg.

K. Goeden will contact lawyer for information on the title work.

**After discussing the Walton Commons and Lakeland options, K. Williams asked the group to consider Option A (below). This plan would include building the original Walton Commons plan ($9 million plan), SCLS would own $7 million of it, Keller would own the rest (roughly 25%) and Keller would lease back their portion to SCLS. D. Flanigan was asked to approach Keller about this option to ascertain whether or not they will consider it. If yes, what lease terms would they need from SCLS in order to proceed with this option?

D. Flanigan will bring cost and terms of Keller leasing 25% of Walton Commons building back to SCLS to the 7/21/22 BNAW meeting.

It was agreed to hold off on any action (informing of building site changes to Pocan and Baldwin) on the federal grants for solar until we have a definite site for building.

Discuss BNAW schedule – Set up weekly check- ins on Friday for D. Haug, D. Flanigan, M. Van Pelt and K. Goeden on Blue Jeans

Full List of Options to Consider: Review at next meeting, ran out of time.

Option A: Full building as it is 32,000 sq. ft. Update next meeting.

· Keller assist with ownership of building; SCLS owns 75% Keller owns 25%. Still a $9 million building. Keller would lease their 25% back to SCLS. In 20 years SCLS buys 25% from Keller

Option B: Reduce the size of the Walton Commons building - Done

· Each department do a needs assessment to evaluate what we can live without and what is required in downsized building.

Option C: Purchase existing office building and add on Delivery

· D. Haug will continue to shop for buildings

Option D: Purchase office building and continue to lease Delivery  

Option E: Keep leasing and walk away (if A-D don’t work)

Option F: Building efficiencies to create room in budget

Homework for Next Meeting:

Cross easements agreements for parking? D. Haug will ask Marty Rifkin for information

What are the covenants in place attached to the parcel? Attorney is reviewing

Which is the driveway for us to access Lakeland University? D. Haug will research

Ground lease details. Attorney is reviewing

Dane County Airport building design rules.

Is there a required number of parking spaces and how is the number calculated? D. Haug reviewing

Lakeland area architectural review committee? “Design and Review Committee” – what are their requirements? What sides constitute the façade? K. Goeden will forward covenants and legal documents to R. Lindstrom for review

R. Lindstrom will sketch up both plans. Needs answers from covenants and easements. Requested feedback from BNAW on both plans. Floor Plan and site layout. Need to know how much land is needed.

D. Flanigan will work on rough estimates for both options. Engineers working on ball park figures.

D. Flanigan will send sketches so work group can move puzzle pieces and provide feedback for 2 options for next meeting.

D. Haug needs to find cost of additional land and which is viable west or north side Need 5,000 or 10,000 additional toward Pankratz or pan handle/dog leg.

K. Goeden will contact lawyer for information on title work

D. Flanigan will bring cost and terms of Keller leasing back 25% of the original ($9 million version) Walton Commons building to SCLS

Set up weekly check-ins on Friday for D. Haug, D. Flanigan, M. Van Pelt and K. Goeden on Blue Jeans

M. Van Pelt will put recommendation to eliminate the revised Walton Commons plan (the $7.6 million - $8.1 million plan) on the July SCLS Board agenda

D. Haug will update the critical controls calendar with prioritization of which items need to be done first and who is responsible for completing

Next Meeting:

July 21, 2022 1:00 Wintergreen Resort in the Wisconsin Dells after the All Directors Meeting

60 Gasser Rd, Wisconsin Dells, WI, in front of the Outlet Mall.

Adjournment: 12:15 pm

Topics tabled for upcoming meetings:

· Schedule Admin and Delivery meetings to discuss shared HR and filing spaces

· Median Update

· CSM/CUP Updates

· Utility Applications

o Fiber, power, water, phone, cable, internet, airport permit?

· Building Permit

Parking Lot:

· Notify Michelle Drea at the City of Madison Assessor’s office when we purchase a site. mdrea@cityofmadison.com