Objective: Approve an extension to development agreement between Gerrard Investments, LLC and Larimer County

Transcription

1 Type of Meeting: Administrative Matters Name of requestor: Ken Cooper cell Gary Gerrard cell Department: Facilities Department Preferred appearance date: 9/19/2017 Time required: 5 minutes Date decision needed: 9/19/2017 Objective: Approve an extension to development agreement between Gerrard Investments, LLC and Larimer County Situation: In July 2016, Larimer County purchased an 8.9 acre parcel at the NW corner of East 1st Street & Denver Ave. in Loveland to construct a new building to provide services to the south part of the County. The property was purchased as part of a development agreement with Gerrard Investments, LLC and Gerrard was contracted to construct site and street improvements by October 3, 2017 which are required to support the new building construction. A series of delays since mid-2016 have resulted in the need to extend the development agreement by two months, with a new completion date of December 4, The primary cause for delay was an inability by Gerrard to obtain approval by the Freedom Storage development group directly west of the County property. Once that approval was obtained in summer 2017, site and street construction work has commenced positively and is expected to be substantially completed by November Proposal: No additional resources are required. The original terms of the agreement cover the total cost of the land purchase and the cost of the contracted site and street improvements. Additional funds required: No Advantages: The site and street work is moving forward, and will be completed by December 4, Approving the amendment to the contract will allow Gerrard to complete the work by the date on the amended agreement. Continuing to work with Gerrard to complete all improvements will provide continuity in the site and street construction work and avoid a lengthy, expensive process to find another contractor. Disadvantages: There is some concern the 2-month delay to the original schedule could result in added costs to the adjacent building construction project. However, Gerrard and Haselden Construction are continuing to work closely to ensure this limited delay will not add any costs to the building project. Regardless, approving the amendment will have no impact on this. Requested action: Approve the Amendment One to the original Development Agreement between Gerrard Investments, LLC and Larimer County, which was executed on July 7, Potentially Affected Interest: Larimer County, Gerrard Investments, LLC, City of Loveland, Haselden Construction, Freedom Storage development group, other commercial property owners at the northwest corner of East 1st Street and Denver Ave. in Loveland, Level of Public Interest and Participations: The original development agreement was executed following a competitive RFP process, so the public were informed during that public process. Public interest in this amendment is unexpected, because the basic agreement remains intact and only delays by two months the construction of the site and street work. Audio/Visual/Computer Needs: None

2 27154 County Road 13 / Johnstown, CO office / fax September 13, 2017 Mr. Ken Cooper Larimer County 200 W. Oak Street Fort Collins, CO Re: Deadline Extension- The Agreement for Construction and Installation of Development Improvements Mr. Cooper: Gerrard Investments respectfully requests an extension to the deadline for all offsite improvements at the Denver and First Avenue Larimer County facility site from October 3, 2017 until December 4, 2017, with substantial completion by November 3, The reasons for the extension are as follows: 1) The prairie dog relocation and the Red Tailed Hawk nest. 2) Cease and Desist demand from Freedom Storage. 3) Negotiations with the Freedom Storage regarding the scope of offsite work and the use of the easement across their property. 4) Additional underground infrastructure work completed by Freedom Storage that was not contemplated in the Agreement between Gerrard and Larimer County. Prairie Dog Relocation and the Red Tailed Hawk Nest Gerrard received commencement of work approval from the City of Loveland on March 21, The Prairie dog relocation was complete in mid-april and construction crews were allowed only limited access to the site due to concerns with the Red Tailed Hawk nest. -Approximately 24 day delay for commencement of work on Opal Place, Trona Avenue, and Halite Street. Commencement of work not yet approved for Peridot Avenue. Negotiations with the Freedom Storage Regarding the Scope of Offsite Work and the Use of the Easement Gerrard Investments agreed with the City and the County to honor a June 23, 2017 Cease and Desist letter sent from Freedom Storage to the City of Loveland for any work within the dedicated right-of-way known as Peridot Avenue. This created the need for negotiations with Freedom Storage and a Resolution from the HOA to authorize Gerrard and the County to proceed with work within the private roads and dedicated public right-of-way. Gerrard received an HOA Resolution authorizing work within the right-of-way on August 4, At about the same time, Freedom Storage decided to proceed, on their own, with the additional infrastructure under Peridot. City of Loveland preconstruction (commencement of work) meeting for work in Peridot Avenue, delayed from March 21, 2017 (signed plans) until August 16, day delay. Additional Underground Infrastructure Work Completed by Freedom Storage Freedom Storage contracted with a separate company to install additional underground infrastructure in Peridot Avenue that was not contemplated in the Agreement between Gerrard and the County. -12 day delay for sewer line installation. -7 day delay for storm sewer and water services installation.

3 Total delay days experienced 149 days. Gerrard is requesting a 44 day extension. It is not contemplated that these delays will have any impact on the County facility project schedule. Thank you for your consideration in this matter. Sincerely, Gary Gerrard Gerrard Investments, LLC President

4 FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION AND INSTALLATION OF DEVELOPMENT IMPROVEMENTS This First Amendment to Agreement for Construction and Installation of Development Improvements (Amendment) is made and effective this 19 th day of September 2017, between the Board of County Commissioners of Larimer County ( County ) and Gerrard Investments, LLC, a Colorado limited liability company ( Gerrard ). WHEREAS, County and Gerrard entered into an Agreement for Construction and Installation of Development Improvements dated July 7, 2016 ( Agreement ); and WHEREAS, pursuant to the Agreement, Gerrard was to construct and install certain offsite improvements necessary to serve development of the County s property located at First Street and Denver Avenue in Loveland, Colorado; and WHEREAS, Gerrard was to complete construction and installation of the improvements on or before October 3, 2017; and WHEREAS, certain unanticipated delays in construction and installation of the improvements have occurred as a result of prairie dog relocation, negotiations between Gerrard and a third-party property owner and installation by the third-party property owner of additional underground infrastructure; and WHEREAS, Gerrard has requested that the completion date for construction and installation of the improvements be extended to December 4, 2017, with substantial completion by November 3, 2017; and WHEREAS, County is willing to grant Gerrard s request to extend the completion date. NOW, THEREFORE, in consideration of the covenants and obligations herein expressed, it is agreed by and between County and Gerrard as follows. 1. The Agreement shall be and is hereby amended to extend the date for Gerrard s construction and installation of the offsite improvements to serve development of the County s property located at First Street and Denver Avenue in Loveland, Colorado to and including December 4, 2017, with substantial completion no later than November 3, Except as amended above, all terms and conditions of the Agreement are unchanged. Page 1 of 2

5 BOARD OF COUNTY COMMISSIONERS OF LARIMER COUNTY, COLORADO By: Name Title: ATTEST: Deputy Clerk to the Board GERRARD INVESTMENTS, LLC a Colorado limited liability company By: Name Title: Date: Approved as to form: County Attorney Date: Approved as to form: Attorney for Gerrard Jshdocs/county/Gerrard Agreement for construction of improvements amendment one Page 2 of 2