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Costs Estimates for Sports Complex Rise to $5 Million
Posting Date: 11/18/2011

By Barbara Ellestad
MPD Chief Troy Tanner, left, Shane Taylor, Joe Macias, and Mayor Mark Wier discuss a proposal to hire a part-time Animal Control Officer at the Council Tech Review meeting, Nov. 15. Photo by Barbara Ellestad.

MPD Chief Troy Tanner, left, Shane Taylor, Joe
Macias, and Mayor Mark Wier discuss a proposal
to hire a part-time Animal Control Officer at
the Council Tech Review meeting, Nov. 15. Photo
by Barbara Ellestad.

The Mesquite City Council will take up a request from City Staff to provide further direction on the construction of a proposed indoor sports center at its Nov. 22 meeting.

The background material for the agenda item lists the fiscal impact of the project as "up to $5 million depending on the option chosen by the City Council."

When the idea of building a steel and membrane structure near the existing Mesquite Sports and Event Center was first proposed in August by Interim City Manager Kurt Sawyer and Economic Development Director Bryan Dangerfield, they estimated the cost of the project at $3.7 million. Sawyer stated several times since that the true cost of the project couldn't be known until it went out for bidding by construction companies.

The Council authorized that action at its Oct. 11 meeting.

Staff issued a Request for Qualifications (RFQ) for Site Design Services on Oct. 21 with a due date of Oct. 31. The RFQ stated that "The project has an extremely tight project schedule. The City will need a set of biddable drawings for the actual site work on Thursday, Nov. 17."

Sawyer included an item on the Council's Nov. 1 Technical Review agenda that would have considered "giving City Staff the approval to enter into a contract with a design firm for site design services for the proposed MISC."

Without much explanation, Sawyer pulled the item from the Technical Review agenda saying simply, "Staff has looked at the bids received and needs more time."

Rather than asking for approval to enter into a contract, the Agenda item is asking Council to "provide further direction to staff regarding the method of bidding out the project." There is no mention of awarding a contract for site design services.

The Nov. 22 agenda item background material includes a list of estimated project costs for the Mesquite Indoor Sports Complex.

Item

Cost

Grading

$400,000

Building

$2,500,000

Turf

$400,000

Floor

$500,000

Landscaping

$40,000

Interior

$300,000

Flatwork

$100,000

Parking

$280,000

Electrical

$180,000

Sprinkler System

$300,000

Total Cost

$5,000,000

The background material also shows a list of potential funding sources that includes several private companies that hold Joint Development Agreements (JDA) with the City.

Source

Amount

Nevada Community Solutions (NCS)

$800,000+

MesTech

$500,000

Pride Contractors

$200,000

RDA Bond, 2009 Series

$2,500,000

RDA, Property Tax

$1,000,000

Total Funding

$5,000,000

The potential funding from NCS is currently projected for the construction of an amphitheater near the MESC that was approved by the previous Council back in the Spring. NCS is required by its 2010 JDA with the City to spend one million dollars on a recreational amenity. So far, the company says it has used approximately $150,000 of the $1 million on the design of the amphitheater. NCS could decide to use the remaining money to help fund the MISC instead of the amphitheater.

MesTech Holdings LLC has a JDA with the City to develop 102 acres in the Mesquite Technical and Commerce Center (MTCC) with "about $500,000 available from initial land sale proceeds," according to the background material.

Pride Contractors also holds a JDA with the City to develop 8.87 acres in the MTCC with "approximately $200,000-$300,000 available from initial land sale proceeds."

The background material also says that approximately $2.4 million remains in the 2009 RDA bond sale proceeds that could be used for the project.

RDA property tax revenue in the bank is listed at "about $2.9 million," according to the agenda item background documents, that is "used to pay annual bond obligations and operating costs." The projected property tax revenue for the current fiscal year is shown as $2,150,000 with $2,300,000 in required debt service. The $150,000 shortage in revenues needed to pay the debt service comes out of the General Fund.

Staff has listed four types of project development methods under a "Public Works Project" label that includes conventional bids, qualified bidder, design-build, and construction manager at risk.

A "Private Venture" development method is also included that would have the City issue Requests for Proposals and allow private companies to propose the terms of the project including the location and construction process.

Other items on the Council's agenda for Nov. 22 include a discussion of the Virgin River Habitat Conservation and Recovery Plan (VRHCRP) as it relates to the City's current participation policy, fee structures in association with other entities, and generally defining the City's requirements concerning the VRHCRP. The agenda item was requested by David Ballweg, Mesquite resident and business owner.

Council will also consider the acceptance of an annual audited financial report for FY 2010-2011, adoption of an Interlocal agreement with NDOT for landscaping and maintenance of the Mesquite Welcome Center, and approving an Independent Contractor Agreement with Larry LeMieux for the Mesquite Airport.

Council will consider a request from the Mesquite Police Department to hire a part-time Animal Control Officer for $12,700 plus required taxes.

They will also consider approving a contract with Forsgren Associates Inc. for the design and bidding services of the Pioneer Shared Use Path project. The project calls for replacing existing sidewalks from Turtleback Road to Redd Hills Parkway at the Grapevine Overpass and the construction of a new sidewalk from Horizon Blvd to Calais Drive.

The City Council meeting begins at 5 PM in the City Council Chambers and is open to the public.

 

Commentary
  • Posted Date: 11/18/2011
    What part of "we don't want tax dollars going into this project" doesn't the city understand? Let a private company do this. RDA money should not be used for this -remember the library land ripoff? Remember lawsuits filed against NCS? Thank God for the Tea Party.
    By: Vic M
  •  
  • Posted Date: 11/18/2011
    I'm all for this you just need to make sure the bond is payable by the next generation
    By: ted miller
  •  
  • Posted Date: 11/18/2011
    I agree, thank you Tea Party. Cut wasteful government spending. Create jobs, not projects for rich people. Vote out those councilmen who vote to waste RDA money.
    By: Larry
  •  
  • Posted Date: 11/18/2011
    Tell me if I have this right: in order to build the sports tent, the City HAS to sell its land to MesTech and Pride Contractors (who may or may not want to develop at this time and in this economy), all the money in the RDA bond 2009 series, the RDA Property Tax money, and accept the $800,000 from NCS? All this to satisfy NCS for what it wants -- for the City to build a sports tent (or amphitheater) where it wants it to be. Does the City really want to appease NCS to that extent? Even the private venture option seems flawed: the private developer will determine the location (no surprise where this will be) and the construction process. Shouldn't the City be the one to determine the terms? This sounds as if someone has already decided who the private developer will be. So according to the options given to the City Council/Mayor are either spend all the money that the City has or let a private developer set the terms. Someone really wants this to happen -- regardless of the cost to the City's financial situation. What a frightening set of options given by the City staff to the Council/Mayor! And NOTHING else that will aid our existing businesses except this sports tent??? HELP!!!!!!!
    By: Judy
  •  
  • Posted Date: 11/19/2011
    Government and private sector investments should be directed at creating long-term, high paying jobs. What part of this formula do elected and appointed officials not understand.
    By: mmcgreer
  •  
  • Posted Date: 11/19/2011
    Footnote to my previous comment: In the Part 2 article by Mesquite Citizen Journal regarding the RDA funds, Mr. Sawyer in explaining the funds, said there is about $4.9 million left in the 2009 bond series our of the $12 million ($14 million with fees, etc.). He also said at least 85% of the total bond fund has to be spent by 6/29/2012. However, he also stated that only $519, 000 has to be spent by June. But the Council/Mayor are being told $2.5 million must be spent. Which is it -- $2.5 million or $519,000? There is a considerable difference. If $519,000, surely there are smaller projects that RDA funds that RDA funds could be used for. Also the City staff failed to mention a fourth option: Councilman Hafen had suggested paying down the fund's debt. While debt repayment can not be done until 2013, surely smaller projects could be done and still meet the June deadline. Just an idea.
    By: Judy
  •  
  • Posted Date: 11/19/2011
    Folks, this is plain old corruption at work. This is what people are complaining about in D.C. I'll say it again, this is corruption. The people have REPEATEDLY told our leaders we don't want money spent on something that does not produce jobs and makes the rich richer but Bishop Sawyer is not going to stop. NCS is not going to stop. We need an Occupy Mesquite here. Thank Goodness for the Tea Party.
    By: Bill
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  • Posted Date: 11/19/2011
    I believe that if you look at the 2004 agreement that Susan Holecheck pushed so hard for, the initial "gift" from NCS for startup funds has to be paid back to NCS. I think this "gift" is not a gift but a loan.
    By: Ken
  •  
  • Posted Date: 11/20/2011
    If you look at the original agreement it says NCS will develop the land "asit sees fit" and that the city will be stuck with running and paying for the whole operation. In other words, NCS gets to do nothing but make $$$$, the city gets all the headaches of operating it, staffing it, maintaining it and the taxpayer foots all of the bill.
    By: Chuck
  •  
  • Posted Date: 11/20/2011
    Agree wholeheartedly, Chuck. What part of this does the City staff not understand? This is the BEST the staff could do?
    By: judy
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  • Posted Date: 11/21/2011
    Read between the lines as well - "Sawyer said several times the TRUE cost of the project is unknown until the bids go out." We all know what that means when the government is involved, especially from Sawyer.
    By: David
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