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PEDC Board Meeting Minutes September 20, 2016 Page 3 of 5 Another concern is that a person or a company would buy the building for less than what it was built for. Both conditions for discussion show that the PEDC wants to assure the City Council that their approval of a lease or a purchase of the building would be necessary before the PEDC could move forward. The purpose of this asset is to have a leverage point to help in the creation and retention of primary jobs. Along with the conditions for discussion with City Council; we also request a discussion concerning the approval of the construction bid of $738,380, the construction contingency of $25,000, the bid bond of $10,880 and builders' risk insurance of $2,040. The total request for expenses related to the spec building is $776,300. After receiving feedback from discussion with the City Council, we would write -up the agenda item for approval to take to City Council on October 10th. Mr. Banks asked about the Fees & Permits listed on the Cost Summary Worksheet and Mr. Paris stated that those fees were listed on the Itemized Costs Incurred Worksheet. Mr. Wilson indicated that in the fees were: Exum Plumbing to expose the water main and cap off because of the Fire Department; drafting services and platting fees; and other fees as listed. It was also pointed out on the Cost Summary Worksheet that items without an asterisk have already been paid. The numbers with an asterisk are the costs we are asking for. Mr. Paris went back to the Cost Summary Worksheet and asked that we look at the figures it would take to build a new spec building in the Business Park. The numbers are based on calculating out the prices per square foot from the bids we received for construction at 2305 NW Loop 286. We estimated $175,000 for other costs: sewer, water, power, gravel drive, concrete dock, and 3,750 sf metal building. This shows that our cost per square foot for a 38,360 sf building at 2305 NW Loop 286 is $28 a square foot, while the cost to build a 20,000 sf spec building at the Business Park is $50 a square foot. Mr. Hughes stated that he has received questions from some City Council members. Their concern is that the building will sit empty for years and someone from the Paris will buy the building "dirt cheap ". Also, businesses that want to come in to Paris would rather build a building that suits them, not one that is already completed. Mr. Paris expressed that 75% of the prospects are looking for an existing building. There are communities around us that have spec buildings being looked at because they have buildings ready to go. Bonham has a spec building that will be bringing in 100 jobs to their area. Mr. Wilson interjected that with a spec building it can be three to five years before a business comes in, but without a spec building that same industry will never come to Paris. Mr. Paris said that the September 26th meeting with the City Council will only be a discussion on the spec building. Mr. Brockman spoke about the spec building being zoned Heavy Industrial and that the height requirements of buildings has increased over the years. Mr. Banks talked about the 75% figure; he stated that it does not include other variables that we cannot meet; being closer to an interstate highway or having an international airport. Mr. Paris emphasized that the spec building would be a marketing asset we could use to talk about Paris. Mr. Manning stated that we need to go forward with the discussion before City Council. Mr. Wilson expressed how disappointing it is that citizens' have not come to the Board meetings to hear the discussion the Board has had concerning the spec building. Mr. Manning entertained a motion to move forward. Mr. Brockman moved that the PEDC accept the bid of $776,300 for the spec building and that we meet with the City Council at their next meeting to answer all the Council's questions and have any discussion that they wish to have. Also, possibly at the October meeting we would make a presentation to the Council for approval to proceed with the spec building. All is subject to City Council approval. Mr. Manning seconded the motion. Vote was 5 -ayes to 0 -nays.