2019-134 City Hall West RenovationDate: June 28, 2019 Report No. 2019-134
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Update on staff recommendations regarding next steps for the City Hall West renovation project.
BACKGROUND:
In July 2017, the City engaged the historical architectural firm, Architexas to assist with the
proposed renovation of the 1927 City Hall known as City Hall West. The firm was charged with
completing an assessment of the facility and to develop three preliminary conceptual designs with
a cost analysis of each concept. The report produced detailed the building’s current condition and
originally presented these options for the scope of work.
Option 1: Complete restoration of the exterior and interior to the original design as close
as possible that will meet all local building codes and accessibility requirements.
o Projected Budget: $5,352,430
Option 2: Rehabilitation of the building with the restoration of the exterior and an adaptive
use strategy for the interior to accommodate complimentary new use.
o Projected Budget: $5,698,956
Option 3: Restoration of the exterior and renovation of the interior to meet the
minimum requirements of life safety and accessibility.
o Projected Budget: $3,775,176
During the presentation in August 2017, City Council directed staff to establish a City Hall West
Steering Committee to discuss options for renovation to the building and, to present the Council
with recommendations. A 24-member Committee was established in November 2017 with a
charge to consider and advise City Council regarding the extent the building should be renovated,
financial options, leasing options, acceptable uses, and whether to seek or apply for grant funding.
The estimated total cost of the committee’s recommended renovation was $6,630,000 and included
a six-to nine-month design timeline and 15 to 18 months for construction. Major phases of the
renovation include window replacement and exterior masonry veneer cleaning, auditorium
restoration, creation of multipurpose room, and mechanical component upgrade or replacement. A
work session was held on November 13 where City Council provided feedback on potential design
aspects. Ultimately, staff direction was given to move forward with window replacement for
$320,000.
Date: June 28, 2019 Report No. 2019-134
Design documents have been submitted to and reviewed by the Texas Historical Commission
(THC). The THC approved the project in May 2019. Staff can begin the bid process for the
window replacement by late June/early July 2019.
Overview of State Historic Preservation Incentive
In January of 2015, the State of Texas began accepting applications for its tax credit program.
Utilizing the Texas Historic Preservation Tax Credit Program would require some form of
agreement with a non-profit entity. The following is from the THC website:
The definition for eligible costs and expenses in IRS Section 42(c)(2) includes depreciation
and tax-exempt use provisions which must be met and generally appear to preclude use of
the credit by governmental bodies. Buildings owned by governmental entities may be
eligible for the state and federal tax credit programs, if the building is operated by a long-
term lessee (requiring a 39+ year lease), then that lessee is considered to have an ownership
interest. If that lessee uses the building for an eligible business or non-profit use and incurs
all project costs, then that lessee would be able to participate in the tax credit program(s)
as if they were the owner of the building.
The program provides a 25% tax incentive for qualified projects and the associated work. A
successful example of a preservation project completed by a non-profit is the First National Bank
building in Port Arthur, Texas. The Port Arthur Economic Development Corporation bought the
building from a private owner. Architexas discussed this information in their presentations. The
involvement of a tax credit specialist would be essential.
DISCUSSION:
A reevaluation of the previous recommendation lead staff to reconsider commencing with the
interior demolition first rather than accept it as part of the overall recommendations. The goal is
to expose the original grand interior space to obtain a better visualization and understanding of
potential uses. Upfront interior work should result in project savings in general conditions and
contractor overhead by performing the demolition scope along with the windows scope. This
should make the window construction in the auditorium area much easier and reduce the
likelihood of damage to the new window units. Following demolition work, the interior will be
in rough condition with exposed plaster and/or terracotta tile wall surfaces.
Next steps for the City Hall West renovation project include:
1. Complete window replacement documentation and Texas Historical Commission
approvals
2. Recommended Option: Develop interior demolition documents limited only to the interior,
including the removal of the intermediate floor inserted in the auditorium
3. Advance to bid stage – group as one package, demolition and window replacement phase
4. Approve cost of work to begin work
Date: June 28, 2019 Report No. 2019-134
5. Window replacement to follow completion of demolition work
CONCLUSION:
The committee recommendation included a non-structural interior demolition to remove non-
original interior elements and examine millwork and finishes from the facility. Staff recommends
having the interior demolition phase be completed before the window replacement portion of
work. The estimated demolition from the master plan was $242,000 as a part of the original larger
project. The cost breakdown is as follows:
It should be noted that the building will not be usable as a work space or community gathering
space once the interior work and window installation is complete. The recommended interior work
will allow for the examination of other existing conditions.
A work session to further discuss staff recommendations and future plans for the City Hall West
renovation project is currently scheduled for September 10, 2019.
STAFF CONTACT:
Sara Hensley, Assistant City Manager
Sara.Hensley@cityofdenton.com
REQUESTOR: Staff Initiated
PARTICIPTAING DEPARTMENTS: Facilities Management, Development Services,
Procurement & Compliance, and City Manager’s Office
STAFF TIME TO COMPLETE REPORT: 10 Hours
Removal of Non-Historical Interior $242,000
General Contractor General Conditions,
contingency, overhead / profit, bond, and liability $136,730
Design & Permitting Estimate (15%) $56,810
Total Estimated Cost $435,540