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HomeMy WebLinkAbout3A - PresentationPLAZA THEATRE REHABILITATION CITY OF PALM SPRINGS PROJECT 18-04 MARCH 27, 2025 Topics Covered •Recommendations •Fiscal Impact •Questions •Progress Update Recommendation Authorize the City Manager: 1.Approve Amendment No. 4 with Architectural Resources Group Inc., in an amount of $270,761. 2.Approve a task order for additional project management and inspection services from on-call engineering service firm, Dudek, Inc., in an amount of $397,500. 3.Approve and execute additional amendments and construction contract change orders up to a total amount of $2,170,000. 4.Execute all necessary documents. Funding Request Fiscal Impact •$2,838,261 from deferred maintenance internal service fund. •Initial contingency was 12.5%, 20%more common for historic rehab •With appropriation, contingency will be 20% •When the Plaza Theatre Foundation submits $750,000, the amount needed will be reduced to $2,088,261. •Expenses for relocating Kalura patio dining and other legal expenses are still being negotiated and not included in the construction budget. Expenses for legal settlements will come from the City's Risk Management Fund. Original Budget Update from Plaza Theatre Foundation Fundraising Momentum •Activities •Weekly Theatre Tours•Multiple high-net-worth donor events•CV Giving Day Results •Seat and other Naming Initiative •Tax Credit Initiative - $3M-$5M pending •TV, Social Media and Press Campaign •Results •$1M Gift + $1M Match – Brad Prescott•$400K donated against match •Significant sponsorship opportunities pending •Net proceeds $1.8M since 1/1/25 •Payments to the City •$8..75M to date, $750 Pending •Pending additional $1M Prescott match Economic Impact: $40M annually •Net new revenues for restaurants, hotels, bars, retail •Assumptions confirmed: 51/49% local vs. traveling guests •Direct sales tax revenues to city coffers = $3.7M annually (based on past performance) •65% of project funding raised by Plaza Theatre Foundation effort •Community engagement: over 1300 donors to date Current Construction Progress Current Construction Progress Current Construction Progress Current Construction Progress Current Construction Progress