HomeMy WebLinkAboutCAO 09-19Cfy �t
DICKERING
Report to Council
Report Number: CAO 09-19
Date: September 23, 2019
From: Tony Prevedel
Chief Administrative Officer
Subject: Comparison of Cost Estimates for Pickering City Centre
- Appraisal of Land Exchange related to Pickering City Centre
- File: A-1440-001
Recommendation:
1. That the attached report entitled Comparison of Cost Estimates for Pickering City Centre,
prepared by Independent Project Managers, be received for information;
2. That the attached Appraisal Reports prepared by D. Bottero & Associates Limited be
received for information;
3. That staff be directed to continue detailed discussions with Cushman & Wakefield and OPB
Realty Inc. toward finalizing the construction cost estimates and final Memorandum of
Understanding; and
4. That staff bring forward a staffing implementation plan for the City Centre project during the
2020 budget process.
Executive Summary: The attached two reports are intended to validate both the
construction cost estimates related to the Pickering City Centre project and the fairness of the land
exchange between the City of Pickering and OPB Realty Inc. ("OPB").
In summary, the cost comparison report prepared by an independent third party does not raise
any serious issues, and provides some recommendations to help inform future negotiations.
As well, the Appraisal Reports clearly indicate that the land exchange benefits the City of
Pickering and that no bonusing is involved.
Financial Implications: There are no direct financial implications related to this report. Please
refer to Report FIN 15-19 for the business case and financial strategy (Attachment No. 1).
Discussion:
1. Cost Comparison
As part of the process of developing a business case and long-term financial plan for the City
Centre project, and prior to presenting this business case to the July 22, 2019 Special Meeting of
CAO 09-19 September 23, 2019
Subject: Comparison of Cost Estimates for Pickering City Centre Page 2
Council, staff reached out to Independent Project Managers (IPM) to review the estimates
provided by Cushman & Wakefield and the draft Memorandum of Understanding (MOU) in an
effort to obtain an independent peer review. The purpose of this peer review was to ensure the
City of Pickering was receiving fair value for contracted works related to the construction of three
public buildings and one layer of underground parking under a single source scenario.
IPM's review of the construction cost estimates differ by approximately 2 per cent when compared
to the Cushman & Wakefield estimates. In the context of the total project, this is not considered to
be a significant variance, and staff will utilize this comparison to drill down deeper prior to finalizing
the cost estimates for the various contracts. To alleviate any concerns related to subsurface soil
conditions, a separate memo with attached soil reports was sent to Council on September 16th
confirming the suitability of the existing soil conditions.
IPM has also provided some input with respect to the draft MOU, and these comments will be
taken into consideration as we finalize the MOU.
IPM has also suggested providing a contingency amount to the construction estimates. This is
normally done by staff prior to a final contract award.
The IPM report recommends that the City consider engaging an outside consultant to perform the
following tasks: project management, contract administration and or cost specialist. However, the
need for these additional staffing resources will be dependent upon the final terms of the MOU.
2. Appraisal
A key element of the MOU is the land exchange between the City and OPB. The MOU
contemplates that the City will transfer fee simple title in the South Esplanade block to OPB in
exchange for a combination of title and long term leases sufficient to accommodate the City's new
Library, Performing Arts Center, Seniors & Youth Center and underground parking, all as
described in Report CAO 07-19. The Director, Corporate Services & City Solicitor retained the
services of D. Bottero & Associates Limited to obtain certified property appraisals of the South
Esplanade block and of the real estate interests to be conveyed to the City. The purpose of the
appraisals was to ensure that the City gets fair value for the real estate it is contributing.
The MOU originally contemplated that OPB would convey strata parcels (air rights) to the City to
accommodate the City's new facilities, together with a 99 year lease of one level (350 parking
spaces) in OPB's new underground parking structure. The use of air rights is appropriate, given
that the City facilities were to be located on top of a new underground parking structure which
would remain in the ownership of OPB. Air rights would enable OPB to remain the owner of the
underground parking structure, while the City owns the facilities located above. Because the City
would be transferring fee simple title in the South Esplanade block to OPB, and because fee
simple real estate interests have a higher value than air rights, the appraisals identified a gap in
value between the City's lands and OPB's lands. ("Fee simple" is the most complete form of land
ownership. "Air rights" are a form of land ownership in which title is limited in terms of height
and/or depth.) The City's South Esplanade block was valued at $7,925,000, while the real estate
interests to be conveyed to the City were valued at $3,470,000. In order to bridge this gap, and to
CORP0227-07/01 revised
CAO 09-19 September 23, 2019
Subject: Comparison of Cost Estimates for Pickering City Centre Page 3
ensure that the City was getting appropriate consideration for its South Esplanade block, City staff
have negotiated changes to the MOU. In addition to the real estate rights originally set out in the
MOU, the City will now receive: (a) a 99 year lease of the 2500 m2 public square space adjacent
to the new City facilities; (b) an additional 5000 ft.2 of storage space to be added to the City's 99
year lease of underground parking; and (c) conversion of the City's title to the new Performing Arts
Center from a strata parcel (air rights) to fee simple title. City staff obtained further input from D.
Bottero & Associates Limited on the impact of these changes to the MOU. The result of these
changes will be to increase the value of the real estate interests being transferred to the City from
$3,470,000 to $7,728,365. This brings the value of the lands being given to the City to within
$196,635 of the appraised value of the City's South Esplanade block. However, since the south
block will now incorporate a 14.5 m road allowance and an 8 m wide pedestrian walkway to
accommodate the CAPREIT lands to the south, the City's lands to be conveyed will be reduced by
0.217 acres. This reduces the value of the City's South Esplanade block to $7,165.500. The result
is that the City will be receiving real estate worth $562,865 more than the land it is contributing.
Attachment No. 2 is a report letter from D. Bottero & Associates Limited dated September 11,
2019 which describes the financial impact of the changes to the MOU. Attachment No. 3 is the
Summary of Salient Facts and Conclusions of the Appraisal Report dated August 16, 2019 for the
South Esplanade block. Attachment No. 4 is the Summary of Salient Facts and Conclusions of the
Appraisal Report dated August 16, 2019 for the real estate interests being conveyed to the City.
Complete copies of the Appraisal Reports are available upon request from the Office of the Chief
Administrative Officer.
Attachments:
1. IPM Cost Comparison Report
2. Report letter from D. Bottero & Associates Limited dated September 11, 2019
3. Appraisal Report dated August 16, 2019 for South Esplanade block, Summary of Salient
Facts and Conclusions
4. Appraisal Report dated August 16, 2019 for the real estate interests being conveyed by the
City
5. Report FIN 15-19 Civic Centre Project & Multi -Year Level Financial Analysis
CORP0227-07/01 revised
CAO 09-19 September 23, 2019
Subject: Comparison of Cost Estimates for Pickering City Centre Page 4
Prepared By: Approved/Endorsed By:
6aveeU
Tony Prevedel, P. Eng.
Chief Administrative Officer
TP:kg
Stan Karwowski, MBA, CPA, CMA
Director, Finance & Treasurer
Paul Bigi
Director, t orpo -te Service & City Solicitor
Recommended for the consideration
of Pickering City Council
Tony Prevedel, P.Eng.
Chief Administrative Officer
.201g
CORI0227-07101 revised
Attachment #1 to CAO 09-19
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Table of Contents
1 Executive Summary. 1
2. Cost Comparison. 3
Scope of the Peer Review 3
Gross Floor Area Summary. 3
Site Area Graphic 5
Project Contingencies. 6
Proposed Project Schedule 7
Project Management & Cost Control. 7
Benchmarks - Hard Construction Costs 8
Project Soft Costs - Design Consultant Fees 8
Peer Review Recommendations. 9
Qualifications and Exclusions 9
3. Memorandum of Understanding. 10
Library 11
Seniors & Youth Centre. 11
Performing Arts Centre. 11
Parking Structure. 11
4. Potential Risk Assessment Summary. 12
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1 Executive Summary
Following this summary, you will find a comparison of cost estimate details for all
three (3) proposed buildings and the parking structure together with comments
regarding the Memorandum of Understanding and a Potential Risk Assessment
Summary.
While the following comments address issues related to each building and
structure, each have a common theme with regards to clarity of the intent of the
Memorandum of Understanding.
In summary:
1. The Memorandum of Understanding, although non-binding does contain
some items that we consider could be financially challenging to the City of
Pickering moving forward. These items are detailed in Section 3. Generally,
the issues require clarification and some negotiation. The intent of the
Memorandum of Understanding would benefit from a "definitions" section
so as to provide a better understanding of the roles, contract types and
related fees. An organization chart would also provide clarity.
2. Section 2 of this report addresses the comparison between the Cushman
Wakefield submission of cost estimates (provided by PCL Construction
Canada Inc.) and those prepared by Altus Group as part of this
submission. Generally the comparisons are as follows:
Hi'M
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There is a potential for a higher cost up to $4,000,000 (as reflected
in the Altus Group budget attached) for enhanced materials or
equipment as suggested by the City's Facilities Section. A business
case will have to be prepared to determine if the higher level
material cost will result in a lower operating cost.
1
CUSHMAN
WAKEFIELD
ALTUS GROUP
Library*
$30,372,529
$32,364,233
Seniors & Youth Centre**
$23,416,500
$26,311,668
Performing Arts Centre
$41,267,774
$39,139,275
Parking Structure
$20,878,723
$22,748,290
Bridge Link
$5,282,327
$3,400,327
City Lands Landscaping***
$7,123,893
$7,123,893
Total (Excl. HST)
$128,341,746
$131,087,686
There is a potential for a higher cost up to $4,000,000 (as reflected
in the Altus Group budget attached) for enhanced materials or
equipment as suggested by the City's Facilities Section. A business
case will have to be prepared to determine if the higher level
material cost will result in a lower operating cost.
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**
There is a potential for a higher cost up to $2,900,000 (as reflected
in the Altus Group budget attached) kr enhanced materials or
equipment as suggested by the City's Facilities Section. A business
case will have to undertaken to determine if the higher level material
cost will result in a future lower operating cost.
There is a risk that the landscaping costs could be higher unless
there is an adjustment to material selected and or finaI design.
• The attached cost comparison reports as prepared by the Altus Group
detail the anticipated project costs.
• The Potential Risk Assessment Summary contained in Section 4, outlines the
perceived risk factors.
• Generally, the risks identified to -date are due to a lack of design
information that should be addressed when the project moves into the
detailed design phase which should also address the method of delivery for
the project.
Depending upon the construction contract terms, there may be a need for
additional budgeted costs as follows:
Overall Construction Contingency
$ 5,626,400.00
Project Management, Contract Administration &
$ 3,877,500.00
Cost Control (4 year duration)
It should be noted that this project is complex in nature. Strict control of design will
be required to adhere to the budget. It is our understanding that Contracts and
Change Orders will need to be issued to each of the projects individually to
enable the various funding arrangements to be accurate.
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2. Cost Comparison
Fora detailed comparison of the estimated costs, refer to Altus Group's Elemental
Cost Summary Order of Magnitude (Class D) Estimate and Peer Review Summary
attached herein.
Scope of the Peer Review
This assignment includes a peer review of the budget estimates provided in the
Pickering Town Centre Budget package report prepared by Cushman Wakefield
(C+W) dated May 23, 2019. The C+W report includes a summary of the budgets
for the following six development components of the Pickering Town Centre
redevelopment:
1. Seniors and Youth Centre (S&Y Centre)
2. Library Addition including a Roof Terrace/Patio
3. Arts Centre (including Multi -Purpose space)
4. Bridge Link (between the Library and the S&Y Centre
5. Below Grade Parking Structure (allocation of 350 parking stalls)
6. Site Development (City Centre site only)
The C+W report includes an estimate of the hard construction costs, the soft costs
(consultants design and engineering fees, etc, permit and development costs,
C+W administration fees, and an allocation of marketing expenses. The C+W
estimates exclude the harmonized sales tax (HST).
The total project costs for the overall development shown in the C+W report the
Pickering Town Centre components is $128,341,800 (rounded) excluding HST.
Gross Floor Area Summary
As the initial step in the peer review process, we have confirmed the gross floor
areas for the various development components in the Pickering Town Centre
scope are close to the areas measured from the schematic floor and site plans
provided in the C+W reports.
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AltusGroup
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Summarized below are the Gross Floor Areas for the Pickering Town Centre
components:
AREA
C+W
GFA (m2)
ALTUS GROUP
GFA (m2)
VARIANCE
Seniors & Youth Centre
Ground Floor
3344
3361
-17
Level 2
2549
2573
-24
Subtotal
5893
5934
-41
Library
Ground Floor
1506
1531
-25
Level 2
942
970
-28
Level 3
1409
1437
-28
Level 4
321
391
-70
Subtotal
4178
4329
-151
Performing Arts Centre
Ground Floor & Level
2
3624
3637
-13
Subtotal
3624
3637
-13
Bridge Link
Level 2
120
Subtotal
120
Site Development
Ground Level
10030
Subtotal
10030
TOTAL
13695
24050
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Comparison of Cost Estimates for Pt
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Site Area Graphic
City Centre Site Area = 10,030 m2 (107,963 SF) net of the building footprint
areas
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Project Contingencies
Depending on the type of contract executed for the procurement of the project, the
hard construction contingency could fall into the overall Total Project in the case
of a guaranteed maximum upset stipulated sum where the contractor takes the risk
for potential cost increases during the construction phase. In other words, a fixed
price contract would reduce the contingencies being carried.
The budgets included in the C+W report include the following contingencies:
1. Hard Construction Contingency of 10%
2. Soft Cost - Design Consultant Contingency of 5% (approximately)
In our opinion, the contingencies are dependent upon the terms of the negotiated
contract that will determine the level of contingency risk. Depending upon the
terms of the negotiated contract there may be a risk that the C + W budgets, do
not include any consideration for escalation from the time of the estimates through
to start of construction or the potential escalation during the construction stage.
The Altus Group peer review introduces a design and pricing contingency and an
escalation contingency. Both contingencies are based on a percentage of the
estimated hard construction costs. As a minimum, we have recommended a design
and pricing contingency of 10% and an escalation contingency of 8%. The
assumed timeframes related to the escalation calculations are summarized below:
Design Start - Summer 201 9
Start of Construction - July 2020
Targeted Completion Date (as per the C+W Memorandum of Understanding)
July 2023
Construction Duration - 36 months
Escalation Duration - July 2019 to July 2021 = 2 years
Escalation Rate - 4% per annum x 2 years = 8% (straight-line calculation)
In addition to the design and pricing and escalation contingency, the Altus peer
review continues to show a construction contingency. This contingency is meant
to cover the potential cost increases during the construction stage of the projects.
This contingency would also be used to cover potential risks for the City of
Pickering.
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Comparison of Cost Estimates for Pt
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For reporting purposes, the Altus peer review shows the design and pricing
contingency and the escalation in the estimate totals that relate directly to the
budgets prepared by C+W. The design and pricing contingency is meant to be
consumed during the design stage. The escalation contingency would be
consumed in the time required to complete the pre -construction stage including
an allowance for the potential escalation during the construction stage. Both
contingencies would be under the control of the C+W team.
The construction contingency has been pulled out of the budget totals directly
related to the C+W budgets and shown separately. This contingency is meant to
cover cost increases during the construction phase of each project. This
contingency would normally be under the control of the Owner (City of Pickering)
and held outside the hard construction budget under the control of the C+W
team.
Proposed Project Schedule
For review purposes, we have assumed the earliest construction could start would
be July 2020, which provides approximately 11 to 12 months to complete the
pre -construction stages and obtain all the approvals required to begin
construction. If construction could begin in July 2020, and the anticipated date for
completion is accepted as August 21, 2023, this leaves a 36 month duration for
the construction phase.
Project Management & Cost Control
We recommend the City consider commissioning an independent Project Manager
to manage and administer the project development on behalf of the City. The PM
would also provide an element of peer review on the project budget,
constructability, risk management, schedule review and monitoring of the
construction process.
In addition to the PM services, we are recommending the City consider
commissioning a cost consultant to monitor the construction costs, provide risk
management and review any changes in the scope of work during the construction
phase. The cost consultant could also provide monthly project monitoring services
with the review and recommendation for payments to C+W and the contractors.
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Benchmarks - Hard Construction Costs
The hard construction budgets in the C+W report for the Seniors & Youth Centre
and the Library are based on detailed estimates from PCL Construction. The C+W
budget for the Arts Centre is based on a benchmark average cost per SF (as a
range) provided by Tuner & Townsend Cost Consultants. For the purposes of the
C+W budget, the upper end of the range at $650/SF was used in development
of the budget for the Art Centre building.
In an effort to check the C+W budget, Altus developed an independent Order of
Magnitude Estimate in the elemental format for the Art Centre building based on
the preliminary schematic design drawings. Altus has measured the basic
elemental quantities from the drawings (including the building cladding area) and
applied benchmark historical elemental costs to develop a complete elemental
estimate for the Art Centre building.
Based on the independent elemental analysis, the average cost per square foot for
the Art Centre works out to $696 per SF based on a gross floor area of 39,138
SF (3637 m2) measured from the schematic drawings. The gross floor area being
shown in C+W report for the Arts Centre is lower at 36,152 SF (3359 m2).
A difference of about 2,986 SF (278 m2). Altus used the higher gross floor area
for the elemental analysis to confirm the C+W budget.
Historical cost data for the hard construction costs for the other two building types
in the Pickering Town Centre development are summarized below:
• Seniors & Youth Centres - range from $285/SF to $450/SF
• Library Additions - range from $325/SF to $550/SF
• Arts Centre - range for $450/SF up to $1,000 per SF or higher
All of the buildings in the Pickering Town Centre development fall within the
historical cost ranges for these building types.
Project Soft Costs - Design Consultant Fees
The C+W budgets for each building include a summary of the project soft costs
for design consultants. In most cases, the soft cost budgets are supported by a
detailed breakdown of these costs. We find the budgets for soft costs being carried
in the C+W report to be fair and reasonable. These budgets range from 5% to
11% of the hard construction costs depending on the building type and fall within
the expected range for these costs.
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Peer Review Recommendations
The following is a list of recommendations based on the Altus Group peer review:
1. Depending upon the terms of the fixed price contract, there may be the
need kr the City to carry a hard construction contingency in the overall
project costs.
2. We recommend the City request additional back up for the budget being
shown by C+W for the library roof terrace/patio and the Bridge Link. The
budget for both of these elements of the project requires more
substantiation.
3. We find the budgets being allocated to the City for the below grade
parking stalls at an average of $55,161 per stall to be reasonable for
below grade parking.
4. We recommend the City request the developer to provide a comprehensive
project schedule demonstrating the proposed project milestones can be
achieved for each component of the development.
5. We recommend the City consider developing a more comprehensive
development contract for each component of the project including the roles
and responsibilities in the contractual relationships between the primary
parties (C+W, PCL, consultants and the subcontractors and the City of
Pickering).
6. We recommend the City of Pickering engage the services of a Project
Manager and a Cost Consultant to administer the complex contracts in
order to keep control of the design, cost and schedule.
Qualifications and Exclusions
1. The numbers in the peer review report exclude the City's portion of the HST.
2. The peer review excludes any evaluation or appraisal of land involved in
the City Centre Development.
3. Real estate fees and land transfer taxes.
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Pickering Town Centre - Peer Review Summary
Scope Description
Senior's
C+W
Budget
& Youth Centre
Altus
Group
Variance
C+W
Budget
Library Addition
Altus
Group
Variance
C+W
Budget
Arts Centre
Altus
Group
Variance
C'ty Parking Stalls
- C+W Altus
Budget Group
Variance
C+W
Budget
Bridge Link
Altus
Group
Variance
City
C+W
Budget
Lands Landscaping
Altus
Group Variance
C+W
Budget
Project Totals
Altus
Group
Variance
1 Hard Construction
$18,562,931
$21,458,100
$2,895,169
$23,665,875
$27,262,647
$3,596,772
$32,186,726
$25,985,855
($6,200,871)
$19,306,268
$17,551,153
($1,755,115)
$4,950,000
$2,600,000
($2,350,000)
$6,445,997
$5,859,997
($586,000)
$102,326,682
$100,717,752
($1,608,930)
1.2 Hard Construction Contingencies
$1,841,293
$.4,762,863
$2,921,570
$2,351,588
$4,880,276
$2,528,688
$3,203,673
$7,275,968
$4,072,295
inc. above
$3,510,231
$3,510,231
inc. above
$586,000
$586,000
inc. above
$586,000
$586,000
$10,187,668
$21,483,338
$21,483,338
Total - Hard Construction
2 Soft Costs
$20,404,224
$26,220,963
$5,816,739
$26,017,463
$32,009,168
$5,991,705
$35,390,399
$33,261,800
($2,128,599)
$19,306,268
$21,061,384
$1,755,116
0 $4,950,000
$3,068,000
($1,882,000)
a $6,445,997
$6,445,997
$0
$112,514,350
$122,067,311
$9,552,961
2.1 Design Consultants
$1,615,871
$1,615,871
$0
$2,659,120
$2,659,119
-$111
$3,712,255
$3,712,256
$1
$399,568
$514,018
$114,450
$66,150
$66,150
$0
$246,078
$246,078
$0
$8,699,042
$8,813,492
$114,450
2.2 Legal & Administration
$1,361,404
$1,361,404
$0
$1,660,946
$1,660,946
$0
$2,130,119
$2,130,119
$0
$1,172,888
$1,172,888
$0
$266,177
$266,177
$0
$431,818
$431,818
$0
$7,023,353
$7,023,352
-$1
2.3 Marketing & Leasing
$35,000
$35,000
$0
$35,000
$35,000
$0
$35,000
$35,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$105,000
$105,000
$0
Total - Soft Costs
$3,012,275
$3,012,275
$0
$4,355,066
$4,355,065
-$1
$5,877,374
$5,877,375
$1
$1,572,456
$1,686,906
$114,450
$332,327
$332,327
$0
$677,896
$677,896
$0
$15,827,395
$15,941,844
$114,449
Project Total (exc. HST)
82
- $5,816,738
$30,372,529
$36,364,233
$5,991,704
$41,267,774
$39,139,275
-$2,128,499
$20,878,723
$22,748,290
$1,869,567
$5,282,327
$3,400,327
($1,882,000)
$7,123,893
$7,123,893
' $0
$128,341,745
$138,009,300
$9,667,5551
3 Project Contingency (administered by
the City of Pickering)
3.1 Hard Construction Contingency
$2,130,810
$2,130,810
$2,544,070
$2,544,070
Inc. above
$306,800
$0
$0
$0
$4,981,700
$4,981,700
Peer Review & Compliance Services
3.2 Peer Review and Compliance
$1,006,592
$1,006,592
$1,228,795
$1,228,795
$1,276,882
$1,276,882
$117,777
$117,777
$247,454
$247,454
$3,877,500
$3,877,500
Total Project Budget
$23,416,500 $32,370,600
88,954,100
I $30,372,529
$40,137,100
$9,764,600
$41,267,800
$40,416,200
-8851,600
$20,878,723
$22,748,300
$1,869,600
I $5,282,327
$3,824,904
($1,457,400)I 1 $7,123,893
$7,371,300
8247,400
1 $128,341,700
8146,868,500
$18,526,8001
Notes:
1 The above amounts exclude the City's portion of the Harmonized Sales Tax (HST).
Pickering Town Centre - Peer Review Summary
Checks
Check
$18,526,800
PROJECT TOTALS
C+W
T.
Above Grade Gross Building Area
Share of P1 Gross Building Area
CONSTRUCTION
160,285 sf
152,579 sf
Demolition
$671,947
Building (New: Substructure - Foundation / Parking)
$17,551,153
Building (New: Superstructure - Core / Shell) + Fitout
$71,497,986
Onsite Improvements/Infrastructure
$4,964,997
FFE
$7,190,600
Construction Cost Sub Total
CONSTRUCTION - ANCILLARY
$101,876,682
$100,267,752
41,608,930
Insurance
$0
Bonding
$0
Service Connections
$450,000
Testing & Inspections - Hazmat
$0
Testing & Inspections - Civil/Sitework
$0
Construction Ancillary Cost Sub Total
Design & Pricing Contingency - Altus Group
10%
$450,000
$450,000
$11,368,178
90
$11,368,178
Escalation Contingency - Altus Group
8%
$7,516,600
Hard Cost Contingency- PCL
10.0%
$10,187,668
$2,598,560
($7,589,108)
SUBTOTAL - CONTINGENCIES
TOTAL HARD COSTS
Total Hard Costs
DESIGN CONSULTANTS
910,187,668
$112,514,350
$21,483,338
$122,067,311
83,779,070
$9,552,961
Architectecture and Interior Design
$5,054,497
Mechanical Engineer
$457,300
Electrical Engineer
$387,300
IT/Communications
$40,860
Security
$41,190
Audio Visual
$36,060
Lighting
$48,190
Structural
$795,000
Wind/NoiseNibration
$7,690
Code/Fire/Life Safety
$24,700
Theatre Design
$161,271
Building Envelope
$58,000
Acoustics
$141,100
Landscape
$0
Vertical Transportation
$14,300
Library Planning
$53,330
Testing and Inspection
$175,000
Surveying
$300,000
Specifications Writer
$94,500
Disbursements
$394,514
Design Consultant Contingency
$414,240
Design and Consultants Cost Sub Total
LEGAL & ADMINISTRATIV 0
$8,699,042
98,813,492
9114,450
Development Management Fee
$5,443,353
Legal
$200,000
Insurance
$160,000
C&W Site Overhead
$1,220,000
Capitalized Vacant Land Tax
$0
Legal & Administrative Cost Sub Total
MARKETINGi & LbASING
$7,023,353
1
$7,023,352
$1
Marketing
$105,000
Commissions- Manager
$0
Commissions - Listing Brokers
$0
Tenant Allowances (Retail/Institutional)
$0
Marketing & Leasing Cost Sub Total
$105,000
$105,000
$0
HOLDBACK
-$10,187,668
$10,187,668
Holdback (10%)
Holdback Release
PROJECT BUDGET (exc. taxes)
9128,341,745
$138,009,300
99,667,600
PROJECT CONTINGENCY
Project Contingency - administered by the City of Pickering (based 10.0%
on Hard Construction Costs)
$4,981,700
$4,981,700
PROJECT TOTAL - inc. Project Contingency (exc. taxes)
PEER REVIEW & COMPLIANCE (as a % of Hard Construction)
$142,991,000
$14,649,300
Compliance consulting team for City of Pickering 0.0%
Excluded
Project Management - peer review 2.21%
$2,700,000
$2,700,000
Cost consulting - peer review and project monitoring 0.68%
$825,000
$825,000
Contingency- Peer Review 10.0%
$352,500
$352,500
SUBTOTAL - PEER REVIEW & COMPLIANCE (exc. taxes)
$3,877,500
$3,877,500
TOTAL - inc. PEER REVIEW & COMPLIANCE (exc. taxes)
$128,341,700
$146,868,500
$18,526,800
Checks
Check
$18,526,800
Pickering Town Centre - Peer Review Summary
Checks
Checks
$32,370,600 $8,954,100
Checks
1 034,264,233 $5,872,865 $40,137,100
SENIORS
C+W
Ce
63,323 sf
3,671 sf
& YOUTH
Altus
'ecomm.
CENTRE
Variance
C+W Libra
44,783 sf
4,11iiimm
16,027 sf
-
LIBRARY
Library
,tal
60,810 sf
4,844 sf
BUILDING
Altus Library
Building
Altus Roof
Patio
Combined
Variance
Above Grade Gross Budding Area
Share of P1 Gross Building Area
CONSTRUCTION
Demolition
$0
$492,591
$179,356
$671,947
Building (New: Substructure - Foundation / Parking)
$0
$0
$0
$0
Building (New: Superstructure - Core / Shell) + Fitout
$17,812,931
$16,178,714
$5,665,215
$21,843,929
Onsite Improvements/Infrastructure
$0
$0
$0
$0
FFE
$600,000
$950,000
$50,000
$1,000,000
Construction Cost Sub Total
CONSTRUCTION -ANCILLARY =
818,412,931
`
$21,308,100
82,895,169
$17,621,305
$5,894,571
823,515,875
,
$23,383,291
$3,729,356
$27,112,647
$3,596,772
Insurance
$0
$0
$0
$0
Bonding
$0
$0
$0
$0
Service Connections
$150,000
$109,950
$40,050
$150,000
Testing & Inspections - Hornet
$0
$0
$0
$0
Testing & Inspections - Civil/Sitework
$0
$0
$0
$0
Construction Ancillary Cost Sub Total
CONTINGENCY
$150,000
$150,000
$0
$109,950
$40,050
$150,000
8109,950
$40,050
8150,000
50
Design & Pricing Contingency - Altus Group
10%
$0
$3,106,215
$3,106,215
$2,338,329
$372,936
$2,711,265
$2,711,265
Escalation Contingency - Altus Group
8%
$0
$1,656,648
$1,656,648
$1,870,663
$298,348
$2,169,012
$2,169,012
Hard Cost Contingency - PCL
10.0%
$1,841,293
$1,762,130
$589,457
$2,351,588
$0
$0
$0
($2,351,588)
SUBTOTAL -CONTINGENCIES
TOTAL HARD COSTS
Total Hard Costs
DESIGN CONSULTANTS
81,841,293
�!
$20,404,224
$4,762,863
526,220,963
$4,762,863
$5,816,739
$1,762,130
819,493,385
$589,457
$6,524,078
$2,351,588
$26,017,463
$4,208,992
827,586,826
8671,284
$4,880,276
$2,528,688
84,422,342
$32,009,168
85,991,705
Architectecture and Interior Design
$780,953
$1,208,880
$404,590
$1,613,470
Mechanical Engineer
$211,600
$86,687
$29,013
$115,700
Electrical Engineer
$118,800
$76,423
$25,577
$102,000
IT/Communications
$1,023
$11,988
$4,012
$16,000
Security
$14,190
$11,988
$4,012
$16,000
Audio Visual
$10,560
$11,239
$3,761
$15,000
Lighting
$14,190
$14,985
$5,015
$20,000
Structural
$165,000
$198,549
$66,451
$265,000
Wind/Noise/Vibration
$1,090
$2,472
$828
$3,300
Code/Fire/Life Safety
$6,800
$7.642
$2,558
$10,200
Theatre Design
$0
$0
$0
$0
Building Envelope
$0
$21,728
$7,272
$29,000
Acoustics
$7,700
$18,356
$6,144
$24,500
Landscape
$0
$0
$0
$0
Vertical Transportation
$2,400
$1,798
$602
$2,400
Library Planning
$0
$39,957
$13,373
$53,330
Testing and Inspection
$25,000
$18,325
$6,675
$25,000
Surveying
$75,000
$54.975
$20,025
$75,000
Specifications Writer
$18,500
$19,480
$6,520
$26,000
Disbursements
$73,282
$90,274
$30,321
$120,595
Design Consultant Contingency
$76,946
$94,787
$31,837
$126,625
Design and Consultants Cost Sub Total
LEGAL & ADMINISTRATIVE
$1,615,871
$986,404
51,615,871
$0
51,990,534
5668,585
$2,659,120
51,990,534
$668,585
52,659,119
-81
Development Management Fee
$963,478
$322,468
$1,285,946
Legal
$50,000
836,650
$13,350
$50,000
Insurance
$25,000
$18,325
$6,675
$25,000
C&W Site Overhead
$300,000
$219,900
$80,100
$300,000
Capitalized Vacant Land Tax
$0
$0
$0
$0
Legal & Administrative Cost Sub Total
TING & Lagir
51,361,404
51,361,404
$0
51,238,353
_$422,593
51,660,946
51,238,353
$422,593
51,660,946
50
Marketing
$35,000
$25,655
$9,345
$35,000
Commissions- Manager
$0
$0
$0
$0
Commissions - Listing Brokers
$0
$0
$0
$0
Tenant Allowances (Retail/Institutional)
$0
$0
$0
$0
Marketing & Leasing Cost Sub Total
$35,000
835,000
$0
825,655
89,345
535,000
$25,655
89,345
$35,000
80
HOLDBACK
-$1,841,293
$1,841,293
-$1,762,130
$1,762,130
-$589,457
$589,457
-$2,351,588
$2,351,588
Holdback (10%
Holdback Release
PROJECT BUDGET (exc. taxes)
$23,416,500
529,233,238
85,816,738
522,747,927
$7,624,601
$30,372,529
530,841,368
55,522,865
836,364,233
$5,991,704
PROJECT CONTINGENCY
Project Contingency - administered by the City of Pickering(based 10.0%
on Hard Construction Costs)
$2,130,810
$2,130,810
$2,194,070
$350,000
$2,544,070
$2,544,070
PROJECT TOTAL - inc. Project Contingency (exc. taxes)
PEER REVIEW & COMPLIANCE (as a % of Hard Construction)
531,364,048
$7,947,548
$33,035,438
55,872,865
538,908,303
58,535,774
Compliance consulting team for City of Pickering 0.0%
Excluded
Excluded
Excluded
Project Management - peer review 2.21%
$700,915
$700,915
$855,640
Included
$855,640
$855,640
Cost consulting- peer review and project monitoring 0.68%
$214,169
$214,169
$261,446
Included
$261,446
$261,446
Contingency- Peer Review 10.0%
$91,508
$91,508
$111,709
Included
8111,709
$111,709
SUBTOTAL - PEER REVIEW & COMPLIANCE (exc. taxes)
$1,006,592
81,006,592
$1,228,795
$0
$1,228,795
81,228,795
TOTAL - Inc. PEER REVIEW & COMPLIANCE (exc. taxes)
823,416,500
$32,370,600
$8,954,100
822,747,927
$7,624,601
$30,372,529
834,264,200
$5,872,900
540,137,100
$9,764,571
Checks
Checks
$32,370,600 $8,954,100
Checks
1 034,264,233 $5,872,865 $40,137,100
Pickering Town Centre - Peer Review Summary
Checks
Check
$1,276,882
Check
1 -$851,600
..W Arts
Centre
C+W Classrooms
and Multi -Pur Pose
ARTS CENTRE
C+W Arts
Centre FFE
& MULTI-PURPOSE
C+W Arts
Centre Total
Arts Centre &
Multi -Purpose
SPACE
Arts Centre Combined
FF&E Total Variance
Item
Above Grade Gross Building Area
Share of P1 Gross Building Area
22,751 sf
1 2,852 sf
13,401 sf
-
-
-
36,152 sf
2,852 sf
39,138
Measured from
Schematic Drawings
CONSTRUCT I r
Demolition
$0
$0
$0
$0
Building (New: Substructure - Foundation / Parking)
$0
$0
$0
$0
Building (New: Superstructure - Core/ShelI) + Fitout
$17,337,540
$10,003,586
$0
$27,341,126
$21,140,255
$21,140,255
Onsite Improvements/Infrastructure
$0
$0
$0
$0
FFE
$0
$1,010,100
$3,685,500
$4,695,600
$4,695,600
$4,695,600
Construction Cost Sub Total
CONSTRUCTION - ANCILLARY
817,337,540
811,013,686
83,685,500
$32,036,726
821,140,255
$4,695,600
$25,835,855
($6,200,871)
Insurance
$0
$0
$0
$0
Bonding
$0
$0
$0
$0
Service Connections
$140,175
$9,825
$0
$150,000
$150,000
$150,000
Testing & Inspections - Hazmat
$0
$0
$0
$0
Testing & Inspections - Civil/Sitework
$0
$0
$0
$0
Construction Ancillary Cost Sub Total
CONTINGENC
Design & Pricing Contingency - Altus Group
10%
8140,175
$9,825
80
$150,000
$150,000
$2,129,000
$469,560
8150,000
$2,598,560
$0
$2,598,560
Escalation Contingency - Altus Group
8%
$1,703,200
$375,648
82,078,848
$2,078,848
Hard Cost Contingency - PCL
10.0%
$1,733,754
$1,101,369
$368,550
$3,203,673
$2,129,000
$469,560
82,598,560
($605,113)
SUBTOTAL - CONTINGENCIES
TOTAL HARD COSTS
Total Hard Costs
DESIGN CONSULTANTS
81,733,754
819,211,469
$1,101,369
812,124,880
8368,550
$4,054,050
$3,203,673
$35,390,399
$5,961,200
827,251,500
81,314,768
$6,010,400
$7,275,968
$33,261,800
$4,072,295
($2,128,599)
Architectecture and Interior Design
$1,174,961
$741,550
$247,943
$2,164,454
Mechanical Engineer
$79,699
$50,301
$0
$130,000
Electrical Engineer
$102,077
$64,423
$0
$166,500
IT/Communications
$6,744
$4,256
$0
$11,000
Security
$6,744
$4,256
$0
$11,000
Audio Visual
$6,437
$4,063
$0
$10,500
Lighting
$8,583
$5,417
$0
$14,000
Structural
$223,772
$141,228
$0
$365,000
Wind/NoiseNibration
$2,023
$1,277
$0
$3,300
Code/Fire/Life Safety
$4,721
$2,979
$0
$7,700
Theatre Design
$87,545
$55,252
$18,474
$161,271
Building Envelope
$17,779
$11,221
$0
$29,000
Acoustics
$66,764
$42,136
$0
$108,900
Landscape
$0
$0
$0
$0
Vertical Transportation
$5,824
$3,676
$0
$9,500
Library Planning
$0
$0
$0
$0
Testing and Inspection
$46,355
$3,645
$0
$50,000
Surveying
$69,533
$5,468
$0
$75,000
Specifications Writer
$30,654
$19,346
$0
$50,000
Disbursements
$97,011
$58,025
$13,321
$168,356
Design Consultant Contingency
$101,861
$60,926
$13,987
$176,774
Design and Consultants Cost Sub Total
LEGAL & ADMINISTRATIV
i
82,139,086
81,279,445
$293,725
$3,712,255
83,418,531
$293,725
$3,712,256
$1
M
Development Management Fee
$956,570
$602,900
$195,650
$1,755,119
Legal
$46,725
$3,275
$0
$50,000
Insurance
$23,363
$1,638
$0
$25,000
C&W Site Overhead
$280,350
$19,650
$0
$300,000
Capitalized Vacant Land Tax
$0
$0
$0
$0
Legal & Administrative Cost Sub Total
MARKETING & 0 . `
$1,307,007
$627,462
$195,650
$2,130,119
$1,934,469
$195,650
82,130,119
_
$0
Marketing
$32,708
$2,293
$0
$35,000
Commissions- Manager
$0
$0
$0
$0
Commissions - Listing Brokers
$0
$0
$0
$0
Tenant Allowances (Retail/Institutional)
$0
$0
$0
$0
Marketing & Leasing Cost Sub Total
$32,708
$2,292
80
835,000
835,000
$0
$35,000
$0
HOLDBACK
J
■
-$1,733,754
$1,733,754
-$1,101,369
$1,101,369
-$368,550
$368,550
-$3,203,673
$3,203,673
Holdback (10%)
Holdback Release
PROJECT BUDGET (exc. taxes)
822,690,269
$14,034,080
$4,543,425
$41,267,774
$32,639,500
$6,499,775
$39,139,275
(82,128,499)
PROJECT CONTINGENCY
Project Contingency - administered by the City of Pickering (based 10.0%
on Hard Construction Costs)
Hard Const. Contingency is included above
PROJECT TOTAL - inc. Project Contingency (exc. taxes)
PEER REVIEW & COMPLIANCE (as a % of Hard Construction)
Compliance consulting team for City of Pickering 0.0%
Excluded
Project Management - peer review 2.21%
$889,125
Included
$889,125
$889,125
Cost consulting - peer review and project monitoring 0.68%
$271,677
Included
$271,677
$271,677
Contingency- Peer Review 10.0%
$116,080
Included
$116,080
$116,080
SUBTOTAL - PEER REVIEW & COMPLIANCE (exc. taxes)
$1,276,882
80
$1,276,882
$1,276,882
TOTAL - inc. PEER REVIEW & COMPLIANCE (exc. taxes)
$22,690,300
$14,034,100
$4,543,400
$41,267,800
$33,916,400
$6,499,800
$40,416,200
-$851,600
Checks
Check
$1,276,882
Check
1 -$851,600
Pickering Town Centre - Peer Review Summary
Checks
Check
$1,869,600
Check
1 ($1,457,423)
Check
$247,400
CITY PARKING 350 STALLS
BRIDGE LINK
CITY LANDS LANDSCAPING
C+W City
Parkin 350
9
Stalls
-
141,212 sf
Altus Group
Bridge
k
1300 sf
-
Altus Group
Variance
i
C+W City
Lands
Landscaping
-
-
Altus Group
M
Variance
Above Grade Gross Building Area
Share of P1 Gross Building Area
CONSTRUCTION
Demolition
$0
$0
$0
Building (New: Substructure - Foundation / Parking)
$17,551,153
$17,551,153
$0
$0
$0
Building (New: Superstructure - Core / Shell) + Fitout
$0
$4,500,000
$2,600,000
($1,900,000)
$0
Onsite Improvements/Infrastructure
$0
$0
$4,964,997
$4,964,997
$0
FFE
$0
$0
$895,000
$895,000
$0
Construction Cost Sub Total
CONSTRUCTION -ANCILLARY
817,551,153
517,551,153
54,500,000
$2,600,000
($1,900,000)
$5,859,997
85,859,997
$0
Insurance
$0
$0
$0
Bonding
$0
$0
$0
Service Connections
$0
$0
$0
Testing & Inspections - Hazmat
$0
$0
$0
Testing & Inspections - Civil/Sitework
$0
$0
$0
Construction Ancillary Cost Sub Total
CONTINGENCY
Design & Pricing Contingency - Altus Group
10%
50
$2,106,138
$2,106,138
50
$260,000
$260,000
50
$586,000
$586,000
Escalation Contingency - Altus Group
8%
$1,404,092
$1,404,092
$208,000
$208,000
$586,000
($586,000)
Hard Cost Contingency - PCL
10.0%
SUBTOTAL -CONTINGENCIES
80
53,510,231
$3,510,231
$3,510,231
50
$4,950,000
$468,000
53,068,000
$468,000
($1,882,000)
J
8586,000
56,445,997
5586,000
$6,445,997
80
_
80
TOTAL HARD COSTS
Total Hard Costs
DESIGN CONSULTANTS
$19,306,268
$55,161
$21,061,384
$60,175
W
Architectecture and Interior Design
$337,420
$421,228
$35,000
$35,000
$123,200
$123,200
$0
Mechanical Engineer
$0
$0
$0
Electrical Engineer
$0
$0
$0
IT/Communications
$0
$0
$0
Security
$0
$0
$0
Audio Visual
$0
$0
$0
Lighting
$0
$0
$0
Structural
$0
$0
$0
Wind/NoiseNibration
$0
$0
$0
Code/Fire/Life Safety
$0
$0
$0
Theatre Design
$0
$0
$0
Building Envelope
$0
$0
$0
Acoustics
$0
$0
$0
Landscape
$0
$0
$0
Vertical Transportation
$0
$0
$0
Library Planning
$0
$0
$0
Testing and Inspection
$25,000
$25,000
$0
$25,000
$25,000
$25,000
$25,000
$0
Surveying
$0
$0
$75,000
$75,000
$0
Specifications Writer
$0
$0
$0
Disbursements
$18,121
$21,061
$2,940
$3,000
$3,000
$11,160
$11,160
$0
Design Consultant Contingency
$19,027
$46,729
$27,702
$3,150
$3,150
$11,718
$11,718
$0
Design and Consultants Cost Sub Total
LEGAL & ADMINISTRATIVE
5399,568
8514,018
5114,450
866,150
566,150
50
8246,078
8246,078
50
Development Management Fee
$887,888
$887,888
$0
$226,177
$226,177
$301,818
$301,818
$0
Legal
$25,000
$25,000
$0
$10,000
$10,000
$15,000
$15,000
$0
Insurance
$60,000
$60,000
$0
$10,000
$10,000
$15,000
$15,000
$0
C&W Site Overhead
$200,000
$200,000
$0
$20,000
$20,000
$100,000
$100,000
$0
Capitalized Vacant Land Tax
$0
$0
$0
Legal & Administrative Cost Sub Total
`ARKETING & LEASING
81,172,888
$1,172,888
80
8266,177
$266,177
$0
8431,818
8431,818
$0
Marketing
$0
$0
$0
Commissions- Manager
$0
$0
$0
Commissions - Listing Brokers
$0
$0
$0
Tenant Allowances (Retail/Institutional)
$0
$0
$0
Marketin • & Leasin , Cost Sub Total
HOLDBACK
Holdback (10%)
Holdback Release
50
80
50
-$1,755,115
$1,755,115
1 MI
-$450,000
$450,000
-$586,000
$586,000
PROJECT BUDGET (exc. taxes)
$20,878,723
$22,748,290
$1,869,567
$5,282,327
$3,400,327
($1,882,000)
57,123,893
$7,123,893
PROJECT CONTINGENCY
Project Contingency - administered by the City of Pickering (based 10.0%
on Hard Construction Costs)
$306,800
$306,800
Excluded as per C of Pickering
PROJECT TOTAL - Inc. Protect Contingency (exc. taxes)
PEER REVIEW & COMPLIANCE (as a % of Hard Construction)
$3,707,127
($1,575,200)
$7,123,893
80
Compliance consulting team for City of Pickering 0.0%
N/A
Excluded
Excluded
Project Management - peer review 2.21%
N/A
$82,011
$82,011
$172,309
$172,309
Cost consulting - peer review and project monitoring 0.68%
N/A
$25,059
$25,059
$52,650
$52,650
Contingency- Peer Review 10.0%
N/A
$10,707
$10,707
$22,496
$22,496
SUBTOTAL- PEER REVIEW & COMPLIANCE (exc. taxes)
$117,777
$117,777
5247,454
$247,454
TOTAL -Inc. PEER REVIEW & COMPLIANCE (exc. taxes)
$20,878,723
522,748,300
$1,869,600
$5,282,327
$3,824,9041 ($1,457,423)1
87,123,893
$7,371,300
8247,500
Checks
Check
$1,869,600
Check
1 ($1,457,423)
Check
$247,400
Pickering Town Centre Pickering, Ontario
Senior's & Youth Centre
Scope Description
Cushman
Wakefield/PCL
63,323 sf
3,671 sf
$0
Altus
Recommendation
Variance
Comments
Above Grade Gross Building Area
Share of P1 Gross Building Area
CONSTRUCTION
Demolition
Building (New: Substructure - Foundation / Parking)
$0
Building (New: Superstructure - Core / Shell) + Fitout
$17,812,931
$20,708,100
$2,895,169
See attached Hard Construction estimate
Onsite Improvements/Infrastructure
$0
FFE
$600,000
$600,000
$0
Includes a 15% contingency
Construction Cost Sub Total
$18,412,931
$21,308,100
$2,895,169
CONSTRUCTION - ANCILLA
Insurance
$0
Bonding
$0
Service Connections
$150,000
$150,000
Allowances appears reasonable
Testing & Inspections - Hazmat
$0
Testing & Inspections - Civil/Sitework
$0
Construction Ancillary Cost Sub Total
$150,000
$150,000
TINGENC
Design & Pricing Contingency
15.0%
$3,106,215
$3,106,215
Recommend a D&P Contingency of 15% on HC estimate
Escalation Contingency
8.0%
$1,656,648
$1,656,648
based on July 2020 start, July 2021 midpoint, July 1, 2022
completion
Hard Construction Contingency
10.0%
$1,841,293
PCL Contingency
SUBTOTAL -CONTINGENCY
TOTAL HARD COSTS
Total Hard Costs
$1,841,293
$20,404,224
$4,762,863
Ir
$26,220,963
$2,921,570
$5,816,739
DESIGN CONSULTANT
Architecture and Interior Design
$780,953
Mechanical Engineer
$211,600
Electrical Engineer
$118,800
IT/Communications
$13,860
Security
$14,190
Audio Visual
$10,560
Lighting
$14,190
Structural
$165,000
Wind/NoiseNibration
$1,090
Code/Fire/Life Safety
$6,800
Theatre Design
$0
Building Envelope
$0
Acoustics
$7,700
Landscape
$0
Vertical Transportation
$2,400
Library Planning
$0
Pickering Town Centre Pickering, Ontario
Senior's & Youth Centre
Scope Description
Cushman
Wakefield/PCL
Altus
Recommendation
Variance
Comments
Testing and Inspection
$25,000
Surveying
$75,000
Specifications Writer
$18,500
Disbursements
$73,282
Design Contingency
$76,946
Design and Consultants Cost Sub Total
$1,615,871
$1,615,871
$0
Soft cost budget appears reasonable
$986,404
_
ISTRATIV
Development Management Fee
Legal
$50,000
Insurance
$25,000
C&W Site Overhead
$300,000
Appears to be a project admin fee for Cushman & Wakefield
Capitalized Vacant Land Tax
$0
Legal & Administrative Cost Sub Total
$1,361,404
$1,361,404
$0
MARKETING & LEASIN
Marketing
$35,000
Not sure what the City of Pickering would be marketing
Commissions- Manager
$0
Commissions - Listing Brokers
$0
Tenant Allowances (Retail/Institutional)
$0
Marketing & Leasing Cost Sub Total
$35,000
$35,000
$0
HOLDBACK
Holdback (10%)
($1,841,293)
Holdback Release
$1,841,293
GROSS PROJECT BUDGET (exc. HST)
$23,416,500
$29,233,238
$5,816,738
PROJECT CONTINGENCY:
$2,130,810
Hard Cost Contingency
10.0%
$2,130,810
Recommend the City carry a 10% Construction Contingency in
the overall project budget
PEER REVIEW & COMPLIANCE
Compliance consulting team for City of Pickering
3.0%
Excluded
Not required by the C of Pickering
Project Management - peer review
2.0%
$697,677
$697,677
Cost consulting - peer review and project monitoring
1.0%
$213,179
$213,179
Contingency - Peer Review & Compliance
10.0%
$91,086
$91,086
SUBTOTAL - PEER REVIEW
TOTAL - INC. PEER REVIEW (exc. HST)
$3,132,752
$3,132,752
$23,416,500 $32,366,0001 $8,949,500
PICKERING TOWN CENTRE - PEER REVIEW
SENIORS & YOUTH CENTRE
Gross Floor Area (SF)
63,323
Scope Item Description
C&W Estimate
May 2019
Unit Rate
r Altus
Recommendation
Unit Rate
Variance
Comments
DIV 2
EARTHWORKS & LANDSCAPING
$0
$0.00
Included in separate site work estimate
DIV 3
FORMWORK & CONCRETE
$2,921,580
$46.14
$3,221,580
$50.88
$300,000
Add: allowance for special foundations
DIV 3D
PRECAST
$220,813
$3.49
$220,813
$0
PCL estimate appears reasonable
DIV 4
MASONRY
$325,955
$5.15
$325,955
$0
PCL estimate appears reasonable
DIV 5
METALS
$900,811
$14.23
$900,811
$0
PCL estimate appears reasonable
DIV 6
WOOD
$478,832
$7.56
$578,832
$100,000
Add: additional millwork & FF&E = $100,000
DIV 7
THERMAL & MOISTURE PROTECTION
$868,876
$13.72
$1,118,876
$250,000
Add partial green roof (30% of the roof area, 1000 m2 x $250/m2
DIV 8
DOORS & WINDOWS
$2,480,737
$39.18
$3,010,737
$530,000
Add: additional interior glazing $100,000, security door hardware
= $30,000, increase the glass specification = $400,000
DIV 9
FINISHES
$1,861,180
$29.39
$2,041,180
$180,000
Add: approx. 10% to the unit rates for interior finishes
DIV 10
SPECIALTIES
$259,411
$4.10
$309,411
$50,000
Add: acoustical treatments = $50,000
DIV 11
EQUIPMENT
$220,240
$3.48
$220,240
$0
PCL estimate appears reasonable
DIV 14
CONVEYING
$304,140
$4.80
$304,140
$0
PCL estimate appears reasonable
DIV 15
MECHANICAL
$2,527,277
$39.91
$3,527,277
$55.70
$1,000,000
Add: heat recovery, high efficiency equipment, and controls
DIV 16
ELECTRICAL
$1,681,435
$26.55
$1,931,435
$30.50
$250,000
Add: energy efficient design elements = $250,000
DIV 17
SECURITY
$0
$0.00
$200,000
$3.16
$200,000
Add: access control, CCTV, conduit and wiring
CA
CASH ALLOWANCES
$223,747
$3.53
$223,747
$3.53
$0
Exclusions
Exterior signage
$30,000
$30,000
Add an allowance for exterior building signature signage
TOTAL DIRECT COST
$15,275,033 $241.22
$18,165,034 $2,890,000
GENERAL EXPENSE & FEE 13.64%
$2,082,959 $32.89
$2,543,105 $460,146
General Requirements 10.0%
$1,816,503
Bonding 1.0%
$181,650
Fees 3.0%
$544,951
TOTAL ESTIMATE
$17,357,992L $274.12
. $20,708,100I 1 $3,350,1081
Pickering Town Centre Pickering, Ontario
LIBRARY BUILDING
CUSHMAN
WAKEFIELD
Roof Patio
16,027 sf
- _
MAY 2019
Li
60,810 sf
4,844 sf
Library Building
ALTUS
Roof Patio
Library Total
Variance
Library
Variance
Roof Terrace
Combined
Variance
Ite
1 1
Library Building
44,783 sf
4,844 sf
Above Grade Gross Building Area
Share of P1 Gross Building Area
CONSTRUCTION
Demolition
492,591
179,356
671,947
$492,591
$179,356
$671,947
$0
$0
$0
Building (New: Substructure - Foundation / Parking)
0
0
0
Building (New: Superstructure - Core / Shell) + Fitout
16,178,714
5,665,215
21,843,929
$21,940,700
$3,500,000
$25,440,700
$5,761,986
($2,165,215)
$3,596,771
Onsite Improvements/Infrastructure
0
0
0
FFE
950,000
50,000
1,000,000
$950,000
$50,000
$1,000,000
$0
$0
$0
Construction Cost Sub Total
17,621,305
5,894,571
23,515,875
$23,383,291
$3,729,356
$27,112,647
$5,761,986
($2,165,215)
$3,596,772
CONSTRUCT I •
0
'
0
0
Included above
.
Insurance
Bonding
0
0
0
Included above
Service Connections
109,950
40,050
150,000
$109,950
$40,050
$150,000
$0
$0
$0
Testing & Inspections - Hazmat
0
0
0
Testing & Inspections - Civil/Sitework
0
0
0
Construction Ancillary Cost Sub Total
Design & Pricing Contingency
10.0%
109,950
40,050
150,000
$109,950
$2,338,329
$40,050
$372,936
$150,000
$2,711,265
$0
$2,338,329
$0
$0
■
$0
$2,711,265
Escalation Contingency
8.0%
$0
$1,755,256
$280,000
$2,035,256
$1,755,256
$2,035,256
Hard Cost Contingency
10.0%
1,762,130
589,457
2,351,588
SUBTOTAL CONTINGENCIES
2,351,588
$4,093,585
$652,936
$4,746,521
$4,093,585
$2,394,933
TOTAL HARD COSTS
Total Hard Costs
19,493,385
6,524,078
26,017,463
$27,586,826
$4,422,342
$32,009,168
$8,093,441
(52,101,736)
■
$5,991,705
DESIGN CONSULTANTS
Architectecture and Interior Design
1,208,880
404,590
1,613,470
Mechanical Engineer
86,687
29,013
115,700
Electrical Engineer
76,423
25,577
102,000
IT/Communications
11,988
4,012
16,000
Security
11,988
4,012
16,000
Audio Visual
11,239
3,761
15,000
Lighting
14,985
5,015
20,000
Structural
198,549
66,451
265,000
Wind/NoiseNibration
2,472
828
3,300
Code/Fire/Life Safety
7,642
2,558
10,200
Theatre Design
0
0
0
Building Envelope
21,728
7,272
29,000
Acoustics
18,356
6,144
24,500
Landscape
0
0
0
Vertical Transportation
1,798
602
2,400
Library Planning
39,957
13,373
53,330
Testing and Inspection
18,325
6,675
25,000
Surveying
54,975
20,025
75,000
Specifications Writer
19,480
6,520
26,000
Disbursements
90,274
30,321
120,595
Design Contingency
94,787
31,837
126,625
Design and Consultants Cost Sub Total
1,990,534
668,585
2,659,120
$1,990,534
$668,585
52,659,119
$0
50
-$1
LEGAL & ADMINISTRATIVE
Development Management Fee
963,478
322,468
'
1,285,946
Legal
36,650
13,350
50,000
Insurance
18,325
6,675
25,000
C&W Site Overhead
219,900
80,100
300,000
Pickering Town Centre Pickering, Ontario
LIBRARY BUILDING
Check
Check
$30,372,5291
$30,372,528
Variance
Library
Item
Library Building
Roof Patio
Li - - - -
Library Building
Roof Patio
Library Total
Variance Combined
Roof Terrace Variance
Capitalized Vacant Land Tax
0
0
0
Legal & Administrative Cost Sub Total
1,238,353
422,593
1,660,946
$1,238,353
$422,593
$1,660,946
$0
$0 $0
MARKETING & LEASING
Marketing
25,655
9,345
35,000
Commissions- Manager
0
0
0
Commissions - Listing Brokers
0
0
0
Tenant Allowances (Retail/Institutional)
0
0
0
Marketing & Leasing Cost Sub Total
25,655
9,345
35,000
$25,655
$9,345
$35,000
$0
80 $0
HOLDBACK
Holdback (10%)
(1,762,130)
(589,457)
(2,351,588)
Holdback Release
1,762,130
589,457
2,351,588
GROSS PROJECT BUDGET (exc. HST)
22,747,927
7,624,601
30,372,529
$30,841,368
$5,522,865
$36,364,233
$8,093,441
($2,101,736) $5,991,704
PROJECT CONTINGENCY
Hard Construction Contingency
PEER REVIEW & COMPLIANCE
$2,194,070
$350,000
$2,544,070
10%
Add: Compliance consulting team for City of Pickering
3.0%
Excluded
Excluded
Excluded
Not required as pe the C of Pickering
Add: Project Management - peer review
2.0%
$851,687
inc.
$851,687
Add: Cost consulting - peer review and project monitoring
1.0%
$260,238
inc.
$260,238
Contingency - Peer Review
10.0%
$111,193
$0
$111,193
SUBTOTAL - PEER REVIEW $3,417,188 $350,000 $3,767,188
$3,417,188 $350,000 $3,767,188
TOTAL - INC. PEER REVIEW $22,747,9271 $7,624,6011 $30,372,529 1 $34,258,5561 $5,872,8651 $40,131,400 $11,510,629 ($1,751,736)1 $9,758,871
Check
Check
$30,372,5291
$30,372,528
3 PCL Constructors Canada Inc.
Conceptual Estimate Summary
43>
BE Number PTCLLIB20190409
Opportunity No Project Start
Owner File No Completion
Project Pickering Towncentre - Library Functional Units
Location Pickering, ON, Canada Area m2
Owner Cushman & Wakefield Ltd. Area SF
Designer
Summary
May
10:00:54
Kyle Nicoletta
Page 1 of 2
22, 2019
AM
Mar 01, 2020
Mar 01, 2023
m2
SF
August 9, 2019
ALTUS GROUP
Altus Recommendation
Unit Rate
Variance
LIBRARY
4150
44,671
Scope Item Description Quantity UOM
Unit Cost
Total Cost
Comments
DIRECT COSTS
DEMOLITION 4,150 M2
--
--
SHORING / DEEP FOUNDATIONS 4,150 M2
--
--
EXCAVATION & BACKFILL 4,150 M2
--
--
DEWATERING 4,150 M2
--
--
UNDERSLAB DRAINAGE 4,150 M2
--
--
LANDSCAPING 4,150 M2
$222.25
$922,329
$922,329
PCL estimate appears reasonable
FORMWORK PLACE & FINISH 4,150 M2
$272.51
$1,130,925
$1,130,925
PCL estimate appears reasonable
CONCRETE SUPPLY 4,150 M2
$66.59
$276,368
$276,368
PCL estimate appears reasonable
REBAR SUPPLY 4,150 M2
$79.04
$328,007
$328,007
PCL estimate appears reasonable
PRECAST 4,150 M2
MASONRY 4,150 M2
$36.79
$152,690
$152,690
PCL estimate appears reasonable
4,150 M2
METALS
$544.25
$2,258,643
$2,258,643
PCL estimate appears reasonable
MILLWORK 4,150 M2
$202.80
$841,611
$891,611
$214.85
$50,000
Add: to the estimate for the interior millwork = $50,000
WATERPROOFING 4,150 M2
$1.80
$7,479
$7,479
PCL estimate appears reasonable
4,150 M2
ROOFING
$144.59
$600,060
$642,060
$154.71
$42,000
Add: addiitonal roof insulation 1192 m2 x $35/m2 = $42,000 to the 2 ply
mod. bit roof finish.
SIDING & SOFFITS 4,150 M2
$149.74
$621,437
$621,437
PCL estimate appears reasonable
CAULKING & FIRESTOP 4,150 M2
$48.67
$201,976
$201,976
PCL estimate appears reasonable
INSULATION 4,150 M2
$5.19
$21,553
$21,553
PCL estimate appears reasonable
HM DOORS & HARDWARE 4,150 M2
$7.88
$32,719
$52,719
$12.70
$20,000
Increase the allowance for inteiror door hardware supply including
security hardware = $20,000
OVERHEAD DOORS 4,150 M2
--
--
EXTERIOR AND INTERIOR GLAZING 4,150 M2
$1,055.14
$4,378,831
$4,428,831
$1,067.19
$50,000
Add: increase the allowance for interior glazing by $50,000
DRYWALL 4,150 M2
$263.88
$1,095,091
$1,095,091
PCL estimate appears reasonable
4,150 M2
TILE & COUNTERTOPS
$44.63
$185,201
$235,201
$56.67
$50,000
Add: increase the unit rate for the floor tile to the public areas, $50,000
CARPET, LAMINATE & HARDWOOD 4,150 M2
$62.73
$260,341
$260,341
PCL estimate appears reasonable
PAINT 4,150 M2
$33.33
$138,314
$188,314
$45.38
$50,000
Add: allowance for special finishes of $50,000
FINAL CLEAN & PROTECT FINISHES 4,150 M2
$7.85
$32,562
$32,562
PCL estimate appears reasonable
SPECIALTIES 4,150 M2
$42.25
$175,344
$225,344
$54.30
$50,000
Add: an allowance for interior acoustic treatments and window
coverings = $50,000
WASHROOM ACCESSORIES 4,150 M2
$14.17
$58,817
$58,817
PCL estimate appears reasonable
LOUVRES 4,150 M2
$6.26
$25,968
$25,968
PCL estimate appears reasonable
EQUIPMENT 4,150 M2
$20.02
$83,096
$98,096
$23.64
$15,000
Add: terrace equipment = $15,000
' PCL Constructors Canada Inc. Summary Page 1 of 2
4Conceptual Estimate Summary May 22, 2019
131
10:00:54 AM
BE Number PTCLLIB20190409 Kyle Nicoletta
Opportunity No Project Start Mar 01, 2020
Owner File No Completion Mar 01, 2023
Project Pickering Towncentre - Library Functional Units
August 9, 2019 LIBRARY
ALTUS GROUP
Location Pickering, ON, Canada Area m2
4150
m2
Owner Cushman & Wakefield Ltd. Area SF
44,671
SF
Designer
Scope Item Description Quantity UOM rUnit
Cost
Total Cost
Altus Recommendation
Unit Rate
Variance
Comments
CONVEYING 4,150 M2
$152.68
$633,611
$400,000
$96.39
($233,611)
Reduce the elevator budget to $400,000.
MECHANICAL 4,150 M2
$484.04
$2,008,753
$2,358,753
$568.37
$350,000
Add: the heat recovery and high efficiency equipment
ELECTRICAL 4,150 M2
$427.95
$1,775,979
$1,850,979
$446.02
Add: allowance for energy savings initiatives = $75000
CASH ALLOWANCES 1 LS
--
$445,164
$445,164
Exterior Signage
$35,000
$8.43
$35,000
DIRECT COSTS
$18,692,872
$19,246,258
$478,389
GENERAL EXPENSE COSTS
GE + FEE 13.64%
$2,549,028
GENERAL EXPENSE COSTS
$2,549,028
$2,694,476
$145,448
General Requirements (CM) 10.0%
$1,924,626
Bonding (Contractors) 1.0%
$192,463
Fees (CM Fees) 3.0%
$577,388
TOTAL COST
$21,241,900
$21,940,700
$5,287
$1,102,226
Check
$21,241,900
Average Unit Rate
$491.17
per SF
A
AltusGroup ELEMENTAL COST SUMMARY
Order of Magnitude (Class D) Estimate
Project: City of Pickering - Arts Centre Project Number:
Location: Pickering, ON
Owner/Client: City of Pickering Estimate Revision:
Architect: Architects Alliance Gross Floor Area:
102838
0
SF
39,138
Element
Ratio to
GFA
Elemental
Quantity
Elemental
Unit Rate
Elemental
Amount
Cost/sf
Total
%
A SHEL
1
Al SUBSTRUCTURE
$31.78
All Foundation
0.61
23,777 SF
$52.31
$1,243,900
$31.78
Al2 Basement Excavation
0.00
0 c
$0.00
$0
$0.00
$1,243,900
4.6%
A2 STRUCTURE
$83.97
A21 Lowest Floor Construction
0.61
23,777 SF
$17.10
$406,700
$10.39
A22 Upper Floor Construction
0.39
15,360 SF
$115.14
$1,768,500
$45.19
A23 Roof Construction
0.61
24,025 SF
$46.24
$1,111,000
$28.39
$3,286,200
12.1%
A3 EXTERIOR ENCLOSURE
$101.05
A31 Walls Below Grade
0.14
5,500 SF
$0.00
$0
$0.00
A32 Walls Above Grade
0.27
10,527 SF
$132.92
$1,399,300
$35.75
A33 Windows & Entrance
0.02
678 SF
$89.23
$60,500
$1.55
A34 Roof Covering
0.61
24,025 SF
$42.91
$1,030,800
$26.34
A35 Projections
1.00
39,138 SF
$37.42
$1,464,400
$37.42
$3,955,000
14.5%
B INTERIORS
B1 PARTITIONS & DOORS
$40.08
B11 Partitions
0.85
33,267 SF
$36.76
$1,223,000
$31.25
B12 Doors
0.00
72 no
$4,800.00
$345,600
$8.83
$1,568,600
5.8%
B2 FINISHES
00
$28.92
B21 Floor Finishes
1.00
39,138 SF
$13.64
$533,800
$13.64
B22 Ceiling Finishes
1.00
39,138 SF
$11.47
$449,000
$11.47
B23 Wall Finishes
1.46
56,960 SF
$2.62
$149,100
$3.81
$1,131,900
4.2%
B3 FITTING & EQUIPMENT
$32.66
B31 Fitting & Fixtures
1.00
39,138 SF
$25.00
$978,400
$25.00
B32 Equipment
1.00
39,138 SF
$0.00
$0
$0.00
B33 Conveying Systems
0.00
6 Stp
$50,000.00
$300,000
$7.67
$1,278,400
4.7%
C SERVICES
C1 MECHANICAL_
$101.50
C11 Plumbing & Drainage
1.00
39,138 SF
$8.00
$313,100
$8.00
C12 Fire Protection
1.00
39,138 SF
$6.00
$234,800
$6.00
C13 HVAC
1.00
39,138 SF
$80.00
$3,131,006
$80.00
C14 Controls
1.00
39,138 SF
$7.50
$293,532
$7.50
$3,972,438
14.6%
C2 ELECTRICAL
$52.00
C21 Service & distribution
1.00
39,138 SF
$12.00
$469,700
$12.00
C22 Lighting, Devices & Heating
1.00
39,138 SF
$28.00
$1,095,900
$28.00
C23 S stems & Ancillaries
1.00
39,138 SF
$12.00
$469,700
$12.00
$2,035,300
7.5%
NET BUILDING COST (Excluding Site)
$471.97
$18,471,738
67.8%
D SITE
D1 SITE WORK
$3.83
D11 Site Development
1.00
39,138 SF
$0.00
$0
$0.00
D12 Mechanical Site Services
1.00
39,138 SF
$1.28
$50,000
$1.28
D13 Electrical Site Services
1.00
39,138 SF
$2.56
$100,000
$2.56
$150,000
0.6%
D2 ANCILLARY WORK
,
=
$0.00
D21 Demolition
1.00
39,138 SF
$0.00
$0
$0.00
D22 Alterations
1.00
39,138 SF
$0.00
$0
$0.00
$0
0.0%
NET BUILDING COST (Including Site)
$475.80
$18,621,738
68.3%
Z MARKUPS
Z1 GENERAL REQUIREMENTS 13.0%
$68.18
Z11 General Requirements 10.0%
$2,048,417
$52.34
4.111
'
$2,668,517
9.8%
Z12 Fee 3.0%
$620,100
$15.84
TOTAL CONSTRUCTION ESTIMATE (Excluding Contingencies)
$543.98
$21,290,255
78.1%
Z2 CONTINGENCIES 28.0%
$152.31
Z21 Design Contingency 10.0%
$2,129,000
$54.40
Z22 Escalation Contingency 8.0%
$1,703,200
$43.52
Z23 Construction Contingency 10.0%
$2,129,000
$54.40
$5,961,200
21.9%
SALES TAX (HST) 0% Excluded
$0
$0.00
$0 0.0%
TOTAL CONSTRUCTION ESTIMATE (Including Allowances) $696.30 $27,251,500 100.0%
GFA:
SF Average $ per SF
39,138
$696.30
GFA:
3,636
m2 Average $ per m2
$7,495
PICKE R1 NG
IPM
Comparison of Cost Estimates for ,�Mp
Pl'ickerbC£y C re'
1 4i �,.wM1
3. Memorandum of Understanding
INDEPENDENT
PROJECT
MANAGERS
att
AltusGroup
The construction method of delivery mentioned in the Cushman & Wakefield
Budget Package dated May 23, 2019 utilizes a CCDC 5B Construction
Management Contract for Services and Construction. However, a CCDC 5B
contract is not mentioned in the Memorandum of Understanding. The Cushman
Wakefield Budget Package is not referenced either.
While the Memorandum of Understanding clearly states that it is a non-binding,
it does contain some commitments that will define the Agreements moving
forward.
It is recommended that the fee for construction management be negotiated or
otherwise not addressed at this time. The Memorandum of Understanding could
state a Construction Management Fee to be negotiated.
The structure for the method of delivery for this project refers to a number of
agreements:
• A Library Construction Management Agreement (the Library CMA fee).
• A City Development Manager Agreement (4.5% of project costs).
• The Seniors & Youth Centre Construction Management Agreement with
PTC Ownerships.
• The Arts Centre Construction Management Agreement (with City
Development Manager).
• The Parking Structure Construction Management Agreement with the PTC
Ownership Development Manager receiving a 4.5% free.
• Any construction contract, Architect's contract and Consultant Agreements
will be entered into directly between the City and such Contractor, Architect
and other Consultants.
Reviewing the Cushman Wakefield Budget Package dated May 23, 2019, the
method of delivery appears to be:
• A CCDC 5B contract with PCL Construction for the project.
• Other contracts for the Design Team and Management Team would follow
standard methods of engagement.
It is recommended that the Memorandum of Understanding be very specific
regarding agreements and contracts together with roles and responsibilities.
19007 Cost Comparison Report -REVISED FINAL.wpd
10
ay 4
PICKE R1 NG
IPM
INDEPENDENT
PROJECT
MANAGERS
att
AltusGroup
Comparison of Cost Estimates for Pt
PC c er C %tr Ce�vttre'
� y
The Memorandum of Understanding also states that the City Development
Manager will prepare monthly draws for verification and payment by the City of
Pickering. Under normal practice, the draw is verified independently by the
Architect and Sub -Consultants on behalf of the Owner.
Library
The general comments above apply to the Library project method of delivery,
although there is some additional clarification required.
For this project specifically, it states that the City of Pickering will enter into a
Construction Management Agreement with the City Development Manager.
Seniors & Youth Centre
The Memorandum of Understanding addresses this portion of the project in a
different manner whereby the City enter into a Construction Management
Agreement with PTC Ownership, who will then engage Cushman Wakefield as the
Agent and Manager for the PTC group.
Performing Arts Centre
The method of delivery is structured whereby the City will enter into a Construction
Management Agreement with the City Development Manager.
With regard to the project, the Memorandum of Understanding states "an Arts
Centre containing up to 600 seats". This suggests there is a maximum but no
minimum requirement. Perhaps this should read "approximately 600 seats" or be
further clarified.
Parking Structure
The delivery approach to this project states that the City will enter into a
procurement, design and Construction Management Agreement with PTC
Ownership. It states that the City will pay all costs related to the design,
construction and maintenance of the structure.
It further states that if the City decides to charge for parking, there will be a
revenue sharing arrangement with PTC. Since the 350 parking spots are exclusive
to the City and the City is paying all costs, it should be the decision of the City and
financial benefit only to the City of Pickering, should they elect to charge for
parking.
19007 Cost Comparison Report -REVISED FINAL.wpd
11
PICKE R1 NG
Comparison of Cost Estimates for `
P C £y Care'
4. Potential Risk Assessment Summary
#
ITEM
RISK
POTENTIAL COST
IMPLICATION
1.
No Relevant Geotechnical
Report Available
Confirmation of the soil conditions.
Reflected in costs
assessments.
2.
No Environmental Site
Assessments Available
Potential for hazardous materials.
No probability
3.
No Designated Substances
Survey Available for
Demolition of the Existing
Sears Building
Potential for additional costs.
Will be delivered at the
time of demolition
permit.
4.
Agreements for
Construction Management
& Development Manager
Clarification required of scope, fees
and method of delivery.
5.
Construction Management
Fee of 4.5%
Industry standard is 2% - 3%.
6.
Schedule Start Date
Implications if not met.
7.
City Control Over Design
Dependent on the method of delivery.
8.
Cost Control through the
Project
Under the terms of the Memorandum
of Understanding, the cost control is
by the City Development Manager,
who appears to be Cushman
Wakefield employee as opposed to
being an independent body acting on
behalf of the City.
Unknown.
9.
Seniors & Youth Centre
Since this will be a partial ownership
and occupancy, the sharing of costs
to construct will require some very
clear scopes of work for the parties.
IPM
INDEPENDEr+-
PROJECT
MANAnERS
att
AltusGroup
19007 Cost Comparison Report -REVISED FINAL.wpd
12
DICKERING
Comparison of Cost Estimates for I
P -bCCy C re'
#
ITEM
RISK
POTENTIAL COST
IMPLICATION
10.
Landscaping
Cost sharing has not been detailed for
capital costs.
1 1 .
Prompt Payment regarding
Construction Act
Ability to comply. Dependent on
contract arrangements.
12.
Escalation Costs
Dependent on adherence to schedule.
II�M
INDEPENDEr+-
PROJECT
MANAnERS
A
AltusGroup
19007 Cost Comparison Report -REVISED FINAL.wpd
13
Attachment #2 to CAO 09-19
D.BOTTERO
& ASSOCIATES
LIMITED
PROPERTY VALUATION AND
REALTY CONSULTING SERVICES
4300 STEELES AVENUE WEST, UNIT 32
VAUGHAN, ONTARIO L4L 4C2
TEL:(905)660-9288 OR (416)749-9832
E-MAIL: info@dbottero.com
September 11, 2019
City of Pickering
One The Esplanade
Pickering, Ontario L1 V 6K7
Attention: Mr. Paul Bigioni
Director, Corporate Services & City Solicitor
Dear Sirs:
Dino Bottero, AACI, MRICS, PLE
Rick Michalski, AACI P.App.
Oksana Vialykh, AACI
Giorgio Beghetto, CRA
Re: Strata (Air) Rights in Fee Simple and Leased Fee Estate
4.5089 Acre (1.8247 Ha.) Phase 1 portion of a 13.13 Acre (5.31 Ha.) City Centre Site
Forming Part of the 55.37 Acre (22.41 Ha.) Pickering Town Centre
1340 & 1355 Kingston Road
Pickering, Ontario
Part of Lots 21 & 22, Concession 1 Pickering
City of Pickering, Regional Municipality of Durham
(Portion of Property Identifier Numbers 26335-0003, -0006)
In accordance with your recent request, recent amendments to the executed August 6, 2019
Memorandum of Understanding were examined from a real estate valuation perspective to
determine the new difference in value between the PTC Lands and the South Block Lands as
described therein.
Utilizing a rate of $8.90 per square foot of potential buildable area and a per acre rate in Fee Simple
Estate of ($13,430,000 ± 4.5089 acres) $2,978,554 as concluded in our Narrative Appraisal Report
for the PTC Lands, the proposed changes would narrow the gap in the appraised Market Values as
follows:
2
Initial Value Opinion for PTC Lands
$3,470,000
Proposed Changes
Type of Rights being
acquired by the City
Calculations
1. Additional 2,500
square meters (0.6178
acres) of "piazza" space
to be leased to the City
for 99 years;
Fee Simple Estate under
a 99 year lease agreement
0.6178 acres x
$2,978,554/acre less 1
percent
add $1,821,749
2. Additional 5,000
square feet of storage
space to be added to the
99 year underground
parking lease;
Strata (Air) Space rights under
a 99 year lease agreement
5,000 sf of buildable area x
$8.90 psf of potential
buildable area less 1 percent
add $44,055
3. The City's title to
the performing Arts
Centre will be changed
from strata parcel to fee
simple;
Instead of acquiring 56,672 sf of
potential buildable area, the City
will receive 0.9726 acres (42,367 sf)
of PTC Land in Fee Simple Estate
(56,672 sf x $8.90 psf)
0.9726 acres x
$2,978,554/acre
subtract $504,381
add $2,896,942
Revised Value Opinion for the PTC Lands
$7,728,365
Based upon the above amendments to the project as described in the executed August 6, 2019
Memorandum of Understanding, the difference in Market Value between the PTC Lands and the
South Block Lands has been reduced to ($7,925,000 - $7,728,365) $196,635.
This Letter should be read in conjunction with our Narrative Appraisal Reports for the PTC Lands
and the South Block Lands dated August 16, 2019 and having an April 27, 2019 Effective Date
which were prepared in accordance with the Canadian Uniform Standards of Professional Appraisal
Practice as adopted by the Appraisal Institute of Canada.
Should you wish to discuss matters further, please do not hesitate to contact the undersigned. We
trust that this Letter will be of assistance in your future deliberations.
Respectfuli y su o ; tted,
R. Micha ski, AACI, P.App.
D. ottero, A A CI, MRICS
Professional Land Economist
Attachment #3 to CAO 09-19
NARRATIVE
APPRAISAL REPORT
AND
VALUATION ANALYSIS
OF A
2.2642 ACRE (0.9163 HA.) CITY CENTRE DEVELOPMENT SITE
(SOUTH BLOCK LANDS)
LOCATED ON THE SOUTH SIDE OF THE ESPLANADE SOUTH
PICKERING, ONTARIO
BRIEFLY LEGALLY DESCRIBED AS FORMING
PART OF LOT 21, CONCESSION 1 PICKERING
BEING PART 26, PLAN OF REFERENCE 40R-7765
BLOCK 16, REGISTERED PLAN 40M-1231 (PICKERING)
CITY OF PICKERING
REGIONAL MUNICIPALITY OF DURHAM
(PROPERTY IDENTIFIER NUMBER 26335-0025)
PREPARED FOR:
THE CORPORATION OF THE CITY OF PICKERING
PREPARED BY:
RICK MICHALSKI, AACI, P.APP.
DINO BOTTERO, AACI, MRICS, PROFESSIONAL LAND ECONOMIST
D. BOTTERO & ASSOCIATES LIMITED
D.BOTTERO
& ASSOCIATES
LIMITED
PROPERTY VALUATION AND
REALTY CONSULTING SERVICES
4300 STEELES AVENUE WEST, UNIT 32
VAUGHAN, ONTARIO L4L 4C2
TEL:(905)660-9288 OR (416)749-9832
E-MAIL: info@dbottero.com
August 16, 2019
City of Pickering
One The Esplanade
Pickering, Ontario L 1 V 6K7
Attention: Mr. Paul Bigioni
Director, Corporate Services & City Solicitor
Dear Sirs:
Dino Bottero, AACI, MRICS, PLE
Rick Michalski, AACI P.App.
Oksana Vialykh, AACI
Giorgio Beghetto, CRA
Re: 2.2642 Acre (0.9163 Ha.) City Centre Development Site (South Block Lands)
S/S The Esplanade South
Pickering, Ontario
Part of Lot 21, Concession 1 Pickering
Being Part 26, Plan of Reference 40R-7765
Block 16, Registered Plan 40M-1231 (Pickering)
City of Pickering, Regional Municipality of Durham
(Property Identifier Number 26335-0025)
In accordance with instructions received, please be advised that a personal viewing was completed
of the above -captioned Subject Property on April 27, 2019, and the area market investigated for the
purpose of providing an opinion of its current Market Value. The intended use of this Report is to
assist in negotiations regarding a potential land swap and potential payment of monies between The
Corporation of the City of Pickering and OPB Realty Inc.
In the course of preparing this Report, discussions - as necessary - were held with staff of the City of
Pickering Planning Department. Investigations with respect to the comparable property sales relied
upon in this Report were sourced through the Toronto Real Estate Board, Urbanation Incorporated,
RealTrack Services, Realnet Services, GeoWarehouse Services, and various on-line internet
services.
-2-
o It is assumed that the soils of the Subject Property are capable of supporting conventional
construction activities without any unusual costs or techniques.
o It is assumed that Zoning By-law 7553/17 for the Subject Property has been formally
amended from 'CCC' (City Centre Civic) to `CCI ' (City Centre One) to permit residential
uses within structures having a 125 metre maximum building height.
o A title search has not been pursued for the Subject Property. Title is assumed to be good
and marketable. The absence of such a search confirming same increases the level of risk
inherent in the analysis and conclusions contained in this Report.
The right is being reserved to amend, alter, or otherwise change our final Estimate of Market Value
should any of these Extraordinary Assumptions or Extraordinary Limiting Conditions prove to be
invalid.
Based upon careful study and analysis of all of the pertinent data and available information, it is our
opinion that the Market Value of the Subject Property, as of April 27, 2019, is:
$7,925,000
(SEVEN MILLION NINE HUNDRED TWENTY FIVE THOUSAND DOLLARS)
The Report which follows describes the Approaches to Value relied upon along with data collected
during the course of our investigations. The undersigned certify that the Company has no present or
contemplated interest in the Subject Property, nor bias against or towards any parties involved with
this appraisal assignment. This Narrative Appraisal Report and Valuation Analysis has been
completed in accordance with the Canadian Uniform Standards of Professional Appraisal Practice as
adopted by the Appraisal Institute of Canada.
Respectfully
miffed,
R. Michalski, AACI, P.App. D. ottero, AACI, MRICS
1
Professional Land Economist
- D. Bottero & Associates Limited -
-1-
•
STERLY VIEW OF SUBJECT PROPERTY FROM A
SOUTH/GLENANNA ROAD INTERSECTION
SOUTHWESTERLY VIEW OF SUBJECT PROPERTY FROM ACRO
SOUTH/VALLEY FARM ROAD INTERSECTIO
- D. Bottero & Associates Limited -
-11-
NORTHWESTERLY VIEW OF SUBJECT PROPERTY FROM ACROSS VALLEY FARM
- D. Bottero & Associates Limited -
.4.11:
.101.1"F' ei
,111
rLOOKING WEST ALONG SUBJECT PROPERTY'S FRONTAGE ONTO THE ESPLANADE SOUTII
KING EAST ALONG SUBJECT PROPERTY'S FRONTAGE ONTO THE ESPLANADE
- D. Bottero & Associates Limited -
TABLE OF CONTENTS
Letter of Transmittal
Photographs of Subject Property
Table of Contents
PART ONE - INTRODUCTION Page
Summary of Salient Facts and Conclusions
PART TWO - BASIS OF THE APPRAISAL
Purpose/Intended Use/Intended Users/Effective Date of Appraisal 1
Property Rights being Considered 1
Definition of Market Value 1
Scope of Assignment 2
Extraordinary Assumptions 3
Extraordinary Limited Conditions 3
Standard Assumptions and Limiting Conditions 4
PART THREE - DESCRIPTION OF PROPERTY BEING APPRAISED
Greater Toronto Area, City and Neighbourhood Analysis 9
Site Description 21
Legal Description 24
Ownership Interests 24
Sales History of Subject Property 24
Marketing History of Subject Property 24
Assessment of Subject Property 25
Land Use Regulations 26
PART FOUR - ANALYSIS AND CONCLUSIONS
Economic Overview 29
Highest and Best Use 38
Approaches to Value 40
Direct Comparison Approach 41
Location Map 51
Reconciliation 55
Final Market Value Opinion 56
Exposure Time 56
Certification 57
PART FIVE - ADDENDA
February 14, 2019 Letter of Intent - City Centre 2022 Plan; June 4, 2019 Memorandum of Understanding -
City Centre 2022 Plan; Fully executed August 6, 2019 Memorandum of Understanding; Appraiser's
Qualifications
- D. Bottero & Associates Limited -
PART ONE - INTRODUCTION
- D. Bottero & Associates Limited -
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
PROPERTY IDENTIFICATION
Ownership: The Corporation of the City of Pickering
Property Address: S/S The Esplanade South, Pickering, Ontario L1V 6K7
Legal Description: PCL CON. 1-21-8 SEC PICKERING; FIRSTLY: PT LT 21
CON 1 (PICKERING), PT 26 40R7765; SECONDLY: BLK 16
PL 40M1231 (PICKERING); S/T LT680026 PICKERING
(PROPERTY IDENTIFIER NUMBER 26335-0025)
PROPERTY DESCRIPTION
Location:
Type of Property:
Situated within the southeastern portion of the urbanized
component of the City of Pickering, being on the south side of
The Esplanade South between Glenanna Road and Valley Farm
Road across from the Pickering Civic Complex (City Hall),
Pickering Central Library and Esplanade Park.
Parcel of vacant land which partially supports an approximate
131 vehicle surface parking lot for the Pickering Civic Complex
(City Hall) and Pickering Central Library located across the
street to the north.
Site Area: 2.2642 Acres (0.9163 Ha.)
Official Plan:
Zoning:
Highest and Best Use:
`Mixed Use Areas - City Centre'
'CCC' (City Centre Civic)
To support higher density mixed commercial/residential and
ancillary uses within structures having a 125 metre maximum
building height; assuming that Zoning By-law 7553/17 has been
formally amended for this site to `CC1' (City Centre One) in
accordance with the Terms of Reference provided.
VALUATION
Effective Date: April 27, 2019
Direct Comparison Approach: $7,925,000
FINAL VALUE OPINION: $7,925,000
- D. Bottero & Associates Limited -
Attachment #4 to CAO 09-19
NARRATIVE
APPRAISAL REPORT
AND
VALUATION ANALYSIS
OF
STRATA (AIR) RIGHTS IN FEE SIMPLE AND LEASED FEE ESTATE
PERTAINING TO A 4.5089 ACRE (1.8247 HA.) PHASE 1 PORTION OF A
13.13 ACRE (5.31 HA.) CITY CENTRE SITE
FORMING PART OF THE 55.37 ACRE (22.41 HA.) PICKERING TOWN CENTRE
MUNICIPALLY KNOWN AS
1340 & 1355 KINGSTON ROAD
PICKERING, ONTARIO
BRIEFLY LEGALLY DESCRIBED AS FORMING
PART OF LOTS 21 & 22, CONCESSION 1 PICKERING
CITY OF PICKERING
REGIONAL MUNICIPALITY OF DURHAM
(PORTION OF PROPERTY IDENTIFIER NUMBERS 26335-0003, -0006)
PREPARED FOR:
THE CORPORATION OF THE CITY OF PICKERING
PREPARED BY:
RICK MICHALSKI, AACI, P.APP.
DINO BOTTERO, AACI, MRICS, PROFESSIONAL LAND ECONOMIST
D. BOTTERO & ASSOCIATES LIMITED
D.BOTTERO
& ASSOCIATES
LIMITED
PROPERTY VALUATION AND
REALTY CONSULTING SERVICES
4300 STEELES AVENUE WEST, UNIT 32
VAUGHAN, ONTARIO L4L 4C2
TEL:(905)660-9288 OR (416)749-9832
E-MAIL: info@dbottero.com
August 16, 2019
City of Pickering
One The Esplanade
Pickering, Ontario L 1 V 6K7
Attention: Mr. Paul Bigioni
Director, Corporate Services & City Solicitor
Dear Sirs:
Dino Bottero, AACI, MRICS, PLE
Rick Michalski, AACI P.App.
Oksana Vialykh, AACI
Giorgio Beghetto, CRA
Re: Strata (Air) Rights in Fee Simple and Leased Fee Estate
4.5089 Acre (1.8247 Ha.) Phase 1 portion of a 13.13 Acre (5.31 Ha.) City Centre Site
Forming Part of the 55.37 Acre (22.41 Ha.) Pickering Town Centre
1340 & 1355 Kingston Road
Pickering, Ontario
Part of Lots 21 & 22, Concession 1 Pickering
City of Pickering, Regional Municipality of Durham
(Portion of Property Identifier Numbers 26335-0003, -0006)
In accordance with instructions received, please be advised that a personal viewing was completed
of the above -captioned 4.5089 acre (1.8247 ha.) Phase 1 portion of a 13.13 acre (5.31 ha.) City
Centre Development Site [referred herein as the 4.51 acre (1.82 ha.) Phase 1 PTC Land] on April
27, 2019, and the area market investigated for the purpose of providing a current Contributory Value
Opinion. The intended use of this Report is to assist in negotiations regarding a potential land
swap and potential payment of monies between The Corporation of the City of Pickering and OPB
Realty Inc.
In the course of preparing this Report, discussions - as necessary - were held with staff of the City of
Pickering Planning Department. Investigations with respect to the comparable property sales relied
upon in this Report were sourced through the Toronto Real Estate Board, Urbanation Incorporated,
RealTrack Services, Realnet Services, GeoWarehouse Services, and various on-line internet
services.
-2-
o It is assumed that the land outlined in blue on the following illustration and identified as the
PTC Lands would have a total area of 13.13 acres (5.31 ha.); as calculated by aerial map
scaling of January 23, 2019 Master Plans prepared by architectsAlliance.
o It is assumed that Phase 1 of the PTC Lands outlined in red on the following illustration
would have a total area of 4.5089 acres (1.8247 ha.); as calculated by aerial map scaling of
January 23, 2019 Master Plans prepared by architectsAlliance.
o It is assumed that the soils of the 4.51 acre (1.82 ha.) Phase 1 PTC Land are capable of
supporting conventional construction activities without any unusual costs or techniques.
o Portions of the 4.51 acre (1.82 ha.) Phase 1 PTC Land are variously improved with retail
structures forming part of the Pickering Town Centre. It is assumed that the 4.51 acre (1.82
ha.) Phase 1 PTC Land are vacant and unimproved. Costs associated with the demolition
of the existing improvements are not being identified nor deducted from any Opinion of
Market Value contained within this Appraisal Report.
o It is assumed that Zoning By-law 7553/17 for the 4.51 acre (1.82 ha.) Phase 1 PTC Land has
been formally amended to permit structures having a 125 metre maximum building height,
and one building supporting the proposed Senior & Youth Centre having a 155 metre
maximum building height.
o It is assumed that the proposed three level Library plus fourth level outdoor amenity area
highlighted in grey and surrounding associated lands on the following illustration form
0.7843 acres (0.3174 ha.) of the 4.51 acre (1.82 ha.) Phase 1 PTC Land. It is further
assumed that it will have a 15,812 square foot (1,469 m2) first floor area and a 42,926
square foot (3,988 m2) gross floor building area as per June 21, 2019 architectsAlliance
Context/Statistics (A-006).
o It is assumed that the proposed two level
Seniors & Youth Centre and
surrounding associated lands highlighted
in yellow on the following illustration
forms 2.0586 acres (0.8331 ha.) of the
4.51 acre (1.82 ha.) Phase 1 PTC Land.
It is further assumed that it will have a
36,414 square foot (3,383 m2) first floor
area and a 63,001 square foot (5,853 m2)
gross floor building area as per June 21,
2019 architectsAlliance Context/
Statistics (A-006).
o It is assumed that the proposed two level
Performing Arts Centre highlighted in
• and surrounding associated lands on
the following illustration forms 0.9726
- D. Bottero & Associates Limited -
-3 -
acres (0.3936 ha.) of the 4.51 acre (1.82 ha.) Phase 1 PTC Land. It is further assumed that
it will have a 23,099 square foot (2,146 m2) first floor area and a 37,405 square foot (3,475
m2) gross floor building area as per as per June 21, 2019 architectsAlliance
Context/Statistics (A-006).
o It is assumed that the PTC Lands required to support the proposed Library, Seniors & Youth
Centre, and Performing Arts Centre and surrounding associated lands would have a
combined area of (0.7843 + 2.0586 + 0.9726) 3.8155 acres (1.5441 ha.).
o It is assumed that the proposed three underground parking levels to be sited beneath the
proposed Seniors & Youth Centre, Performing Arts Centre, proposed 50 -storey tower and
associated podiums (outlined by a black dash -line on the preceding illustration) will have a
total parking area of 379,288 square feet (35,237 m2) as per June 21, 2019
architectsAlliance Context/Statistics (A-006), and will be capable of accommodating a total
of 933 vehicles.
o It is assumed that the current Contributory Value Opinion for the Strata (Air) Space
property rights being appraised for the proposed Library would equate to the surrounding
ground area of 0.7843 acres (0.3174 ha.) plus the 27,125 square foot (2,520 m2) second,
third and fourth levels totalling 61,290 square feet (5,694 m2).
o It is assumed that the current Contributory Value Opinion for the Strata (Air) Space
property rights being appraised for the proposed Seniors & Youth Centre would equate to
the surrounding ground area of 2.0586 acres (0.8331 ha) plus the 26,587 square foot (2,470
m2) second floor totalling 116,261 square feet (10,801 m2).
o It is assumed that the current Contributory Value Opinion for the Strata (Air) Space
property rights being appraised for the proposed Performing Arts Centre would equate to
the surrounding ground area of 0.9726 acres (0.3936 ha) plus the 14,305 square foot (1,329
m2) second floor totalling 56,672 square feet (5,265 m2).
o It is assumed that the current Contributory Value Opinion for the 99 year lease agreement
pertaining to the Strata (Air) Space property rights being appraised for the P1 Level of the
proposed underground parking garage which can accommodate 350 vehicles would equate
to an area of 157,368 square feet (14,620 m2).
o A title search has not been pursued for the 55.37 acre (22.41 ha.) Parent Property which is
presently improved with the Pickering Town Centre. Title is assumed to be good and
marketable. The absence of such a search confirming same increases the level of risk
inherent in the analysis and conclusions contained in this Report.
The right is being reserved to amend, alter, or otherwise change the final Contributory Value
Opinion for the Strata (Air) Space property rights being appraised should any of these
Extraordinary Assumptions or Extraordinary Limiting Conditions prove to be invalid.
- D. Bottero & Associates Limited -
-4 -
Based upon careful study and analysis of all of the pertinent data and available information, it is our
opinion that the Contributory Value Opinion for certain Strata (Air) Rights in Fee Simple and
Leased Fee Estate as identified herein, as of April 27, 2019, is:
$3,470,000
(THREE MILLION FOUR HUNDRED SEVENTY THOUSAND DOLLARS)
The Report which follows describes the Approaches to Value relied upon along with data collected
during the course of our investigations. The undersigned certify that the Company has no present or
contemplated interest in either the 4.51 acre (1.82 ha.) Phase 1 PTC Land or the 55.37 acre (22.41
ha.) Parent Property presently improved with the Pickering Town Centre, nor bias against or towards
any parties involved with this appraisal assignment. This Narrative Appraisal Report and Valuation
Analysis has been completed in accordance with the Canadian Uniform Standards of Professional
Appraisal Practice as adopted by the Appraisal Institute of Canada.
Respectfijlly spitted,
R. Michalski, AACI, P.App. D. ottero, A i CI, MRICS
Professional Land Economist
- D. Bottero & Associates Limited -
-1-
ACRE (5.31 HA.) PTC LANDS FROM ACROSS GLEN
- D. Bottero & Associates Limited -
A.) PTC LANDS FROM ACROSS
'POKING NORTH ALONG 13.13 ACRE (5.31 HA.) PTC LAND'S FRONTAGE ONTO
ROAD
- D. Bottero & Associates Limited -
- D. Bottero & Associates Limited -
TABLE OF CONTENTS
Letter of Transmittal
Photographs of 13.13 Acre (5.31 Ha.) PTC Lands
Table of Contents
PART ONE - INTRODUCTION Page
Summary of Salient Facts and Conclusions
PART TWO - BASIS OF THE APPRAISAL
Purpose/Intended Use/Intended Users/Effective Date of Appraisal 1
Property Rights being Considered 1
Definitions 2
Scope of Assignment 3
Extraordinary Assumptions 4
Extraordinary Limited Conditions 6
Standard Assumptions and Limiting Conditions 7
PART THREE - DESCRIPTION OF PROPERTY BEING APPRAISED
Greater Toronto Area, City and Neighbourhood Analysis 12
Site Description 24
Legal Description - 4.51 Acre (1.82 Ha.) Phase 1 PTC Land 30
Ownership Interests 30
Sales and Marketing History of 4.51 Acre (1.82 Ha.) Phase 1 PTC Land 30
Assessment of 55.37 Acre (22.41 Ha.) Parent Property 32
Land Use Regulations 33
PART FOUR - ANALYSIS AND CONCLUSIONS
Economic Overview 37
Highest and Best Use 46
Approaches to Value 48
Direct Comparison Approach 49
Location Map 59
Reconciliation 65
Final Market Value Opinion 65
Exposure Time 66
Certification 67
PART FIVE - ADDENDA
February 14, 2019 Letter of Intent - City Centre 2022 Plan; June 4, 2019 Memorandum of Understanding -
City Centre 2022 Plan; Fully executed August 6, 2019 Memorandum of Understanding; Appraiser's
Qualifications
- D. Bottero & Associates Limited -
PART ONE - INTRODUCTION
- D. Bottero & Associates Limited -
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
PROPERTY IDENTIFICATION
PTC Lands Ownership:
PTC Lands Address:
PTC Lands Legal Description:
PROPERTY DESCRIPTION
Location:
OPB Realty Inc.
Portion of 1340 & 1355 Kingston Road, Pickering, Ontario
Portions of:
PT LTS 21 & 22 CON 1 PICKERING, PTS 12, 19, 20, 21, 22, 23, 24,
40R8355 EXCEPT PT 1 40R8513; S/T CO249445, CO249442,
D327673, D178460, D327672, D14947 ; S/T CO249442E,
CO249445E, D14947, D198350, D198351, D327672, D327673 CITY
OF PICKERING (PROPERTY IDENTIFIER NUMBER
26335-0003)
PCL CON. 1-21-23 SEC PICKERING; PT LTS 21 & 22, CON 1, IN
THE TOWN OF PICKERING, REGIONAL MUNICIPALITY OF
DURHAM PTS 6, 7, 8, 9, 10 & 11 40R8355 EXCEPT PT 2 40R8513;
S/T CO249441, D117455, LT142914, LT235254, LT398030,
LT477563, LT477567 PICKERING (PROPERTY IDENTIFIER
NUMBER 26335-0006)
Situated within the southeastern portion of the urbanized component of
the City of Pickering, being on the west side of Glenanna Road just
south of Kingston Road and across the street from the Pickering Civic
Complex (City Hall), Pickering Central Library and Esplanade Park.
Type of Property: 4.5089 acre (1.8247 ha.) property variously improved with retail
structures forming part of the Pickering Town Centre.
Official Plan:
Zoning:
Highest and Best Use:
`Mixed Use Areas - City Centre'
`CC1 - E3' (City Centre One - Exception E3)
To support higher density mixed commercial/residential and ancillary
uses within structures having a 125 metre maximum building height,
and one building supporting the proposed Senior & Youth Centre
having a 155 metre maximum building height; assuming that Zoning
By-law 7553/17 has been formally amended for this site in accordance
with the Terms of Reference provided.
VALUATION
Effective Date: April 27, 2019
Direct Comparison Approach:
Strata (Air) Rights Market Value $3,470,000
CONTRIBUTORY VALUE OPINION FOR
STRATA (AIR) SPACE & LEASED FEE ESTATE RIGHTS: $3,470,000
- D. Bottero & Associates Limited -
Gtr 4
DICKERING
Attachment # 5 CAO 09-19
Report to
Council
Report Number: FIN 15-19
Date: July 22, 2019
From: Stan Karwowski
Director, Finance & Treasurer
Subject: Civic Centre Project & Multi -Year High Level Financial Analysis
Recommendation:
1. That Report FIN 15-19 of the Director, Finance & Treasurer be received;
2. That Council direct staff to proceed with the Civic Centre project based on a fixed
price contract model that includes the construction of the following: Senior & Youth
Centre approximately (63,000 square feet); Performing Arts Centre (approximately
37,000 square feet); Central Library (approximately 43,000 square feet with a roof
terrace), underground parking (350 spots), associated landscaping and the
required relocation of services: sanitary sewers, storm sewers, utilities and water
mains;
3a) That Council direct that for financial planning purposes, the total cost of the Civic
Centre project be $124,054,246 (net HST) excluding the costs for the bridge link
between the Library and Seniors Centre, the relocation of service costs and any
related fees and if the total contract price increases over 2 per cent, further Council
approval is required to proceed;
b) That the total cost of the bridge link noted above, at $5,375,357 be added to the
total project cost within the report with appropriate DC funding, and that staff make
appropriate adjustments to the financial plan;
4. That Council approve to single source the construction of the Civic Centre
municipal buildings, underground parking lot and the relocation of services to
Pickering Town Centre/OPB Realty;
5. That Council direct that the cost sharing principles for the relocation of services
and oversizing of pipes be based on the principle that the direct benefiting property
owners are responsible for their proportionate share of costs;
6. That Council endorse the principle for financial planning purposes for the existing
term of Council that Casino revenues are to be first applied to fund the
construction and related servicing costs for the Civic Centre project and the
remaining funds are to be transferred to operational capital reserves or reserve
funds (vehicle, major equipment, facilities, roads and bridges, stormwater) that in-
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 2
turn reduces the City's use of five year internal loans and eventually all internal
loans;
7. That Council authorize staff to apply to all major senior government grants that are
available and applicable, under the grants criteria, and that the Arts Centre project
be designated as the top grant candidate;
8. That the Director, Finance & Treasurer be authorized to begin the process to
amend the Development Charges By-law 7595/17 to increase the development
charge fees that are required to fund the development charges share of the Civic
Centre project based on the financial plan and that Council approve the
engagement of the firm Watson & Associates Economists Ltd. to undertake this
work;
9. That Council approve the additional fees as proposed by Sabourin Kimble &
Associates Ltd. in the amount of $380,000 plus HST for an increase in scope to
undertake the necessary project management, detailed design, utility relocation
coordination and the transportation planning for phase 1 in accordance with the
purchasing policy 10.03 (c), as the assignment is above $50,000;
10. That Council approve the total revised gross project consulting cost for Sabourin
Kimble & Associates Ltd. in the amount of $994,400 (including HST), and the total
revised net project cost of $895,488 (net of HST rebate) to be funded from the
Rate Stabilization Reserve;
11. That Council lift the hold on the hiring of the Manager, Arts Centre position and
that staff initiate the process of hiring for the position as identified in the 2019
budget; and
12. That the appropriate City of Pickering officials be authorized to take the necessary
actions as indicated in this report.
Executive Summary: This report and corresponding analysis focuses on analyzing
the financial impact of the Civic Centre project (including relocation of services) on the
short and medium term financial health of the City. The report does not attempt to
answer the question are the facilities needed. It is understood that this question has
been addressed and or answered to the satisfaction of Members of Council and
Pickering residents.
The analysis and recommendations are based on known information to date. There
are still information gaps (impact of Bill 108), final construction costs that may have an
impact on the project and therefore, the City. This report tries to answer the question —
what is the impact on the Civic Centre project on Pickering's finances on a short and
medium term basis? The analysis assumes that operational costs related to this project
such as increased staffing and utility costs related to the buildings and corresponding
programs, will be funded through the Current Budget through a budget levy increase. In
other words, when the buildings are finished and opened, there will be an increase in
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 3
the property tax levy to fund these operational costs. However, Pickering residents will
be able to enjoy the wealth and range of new programs while being asked to fund the
operating and programming costs.
The analysis and modelling shows that under a fixed cost contract scenario, the Civic
Centre project can proceed based on the concept that the Casino revenues will
basically fund the capital/debt costs of the project. This analysis shows that under
various cost scenarios (worst, most likely and best) there are sufficient Casino revenue
dollars even after sharing some of the Casino dollars with Durham Region starting in
2021, to fund the project with zero and/or minimal impact on the Pickering taxpayer.
The known and unknown impacts of Bill 108: More Homes, More Choice Act, 2019 as it
relates to development charges has been considered in the financial stress test
modelling. Under the old Development Charge (DC) rules, the City was permitted to run
a deficit balance or negative position in its DC reserve funds and the funding shortfall
was recovered through the next DC Background Study through higher DC fees. Bill 108
does not explain how deficit DC reserve balances are to be transferred to the new
Community Benefit Charge By-law (CBC) or if the deficit is to be recovered over time
from the new CBC. Therefore, for the worst case scenario, no DC debt was considered
as a funding source for the Civic Centre project. The shortfall in development charge
funding was transferred to the City and funded as City debt. The issue regarding the
treatment of DC debt should be resolved and/or known by the end of October when the
corresponding Provincial regulations are issued.
Bill 108 has created an environment where there is an opportunity to either keep the old
development charge rules or to move to the new system — Community Benefit Charge
or CBC. For Pickering, it would be prudent to maximize the funding under the old
Development Charge rules for soft services (libraries, indoor recreation facilities and
parking facilities) due to the fact they will expire by December 31, 2020 and under the
new system (CBC) it appears to be a less favourable funding model. As shown in the
report, proceeding with the Civic Centre project translates into the City incurring a high
level of debt for the three buildings. However, the City's financial picture is about to
change with the Casino revenues and the projected Casino revenue stream should be
strong enough to fund the City share of debt charges associated with this project. In
other words, the Casino funds are being used to create a financial status quo when you
consider the debt charges for the project.
Every project has various levels or degrees of risk. The financial modelling exercise
through the scenario analysis tried to quantify the risk and pressure test Pickering's
finances. Where possible, a conservative approach was used in the quantitative
modelling. The financial strategy is based on the City using Casino revenues to fund the
capital construction cost. The City has no history of Casino revenues. In discussions
with industry experts, a Casino revenue stream was developed and used in the
modelling exercise. However, the casino revenue stream is a projection based on other
casino's revenue history. What makes the Pickering revenue stream projection
somewhat different is the fact that you will now have two casinos in relatively close
proximity and therefore makes the revenue projection a bit more challenging.
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 4
Pickering's Casino should do well because it has several gaming success factors:
located near a large population, the facility can be easily accessed, will provide future
hotel accommodations, and new gaming facilities are always attractive. The above
factors should translate into a strong future revenue stream for the City. However, there
are uncontrollable factors that can have an effect on the City's short term Casino
revenue stream such as economic slowdown and or geopolitical events such as trade
disputes that can affect the economy.
Over the last twenty years, the City hasn't constructed many new facilities except for the
Operations Centre, George Ashe Library & Community Centre, expansion of Recreation
Complex (grant funded project) and Pickering Soccer Centre (partially funded by the
Pickering Soccer Club and development charges). New buildings and/or facilities were
not constructed due to low assessment growth and the City's approach to having a
moderate level of property tax increases. For many years, Pickering had the lowest
property tax rate among the Durham Lakeshore municipalities. Pickering's budgets over
the last several years were in most part focused on maintaining the City's facilities,
service levels, and infrastructure. An argument could be made that over time, Pickering
has incurred a facilities deficit and that the Civic Centre project is addressing this
facilities shortfall in one dramatic step.
Financial Implications: The Civic Centre financial stress model was based on three
cost/funding scenarios: most likely, worst case and best case. A comparison of the
three scenarios is presented below based on a total known cost to date. The project
cost figures below are based on May 23, 2019 cost estimates (provided by Cushman &
Wakefield) for the construction of the three buildings, furniture, fixtures and equipment
and estimated servicing costs (relocation of services).
-34-
best
Case
MDSt
Likely
vvorst
Case
Construction Cost $ 134,098,916 $ 134,098,916 $ 134,098,916
Funding Plan
Government Grant
Naming Rights
DC Funding:
DC Reserves
DC Reserve Debt
City Reserves
City Share (Debt)
Total
$ 29, 583, 387
15,929,204 $ 7,964,602 $ 7,964,602
22,617,667
33,313,019
3,980,000
28,675,639
22,617,667 22,617,667
37, 292, 854
3,980,000
62,243,793
3,980,000
99, 536, 647
$ 134, 098, 916 $ 134, 098, 916 $ 134, 098, 916
FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 5
DC Reserve Debt
City Share (Debt)
Total
City Share Debt Per
Capita
Total Debt per Capita
Project Debt Summary
$ 33,313,019 $ 37,292,854
62, 243, 793
28,675,639
99, 536, 647
$ 61.988,658 $ 99,536,647 $ 99.536,647
$301.85
$652.51
$655.20
$1,047.75
$1,047.75
$1,047.75
Funding Source (%)
Government Grant
Naming Rights
DC Funding
Reserves
City Share (Debt)
22.06%
11.88%
41.71%
2.97%
21.38%
5.94%
44.68%
2.97%
46.42%
5.94%
16.87%
2.97%
74.23%
The best case scenario assumes the following:
• The City is successful in obtaining senior level grant funding (66 per cent) for the
Arts Centre project under the Investing in Canada Infrastructure Program (ICIP),
Community, Culture and Recreation funding stream.
• The City is successful in obtaining naming rights revenues for the Arts Centre and
Senior & Youth Centre.
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 6
The most likely scenario is based on the current status as it relates to the Civic Centre
project. In other words, this scenario only includes naming rights revenue for the Library
and no senior level of grant funding. However, in the future, there may be smaller levels
of grant funding associated with accessibility that the City would apply for. Members of
Council may recall that the City applied for grant funding for the Council Chamber
renovation project and was not successful. However, staff were successful in obtaining
minor level grant funding (Federal) under the accessibility umbrella for the first floor
Civic Complex washroom renovation. Staff will monitor and apply for all grant
opportunities associated with this project.
The worst case scenario reflects the unknown impact of Bill 108: More Homes, More
Choice Act, 2019 as it relates to development charges. The Bill was introduced as part
of the Provincial Government's Housing Supply Action Plan and it affects 13 Acts. The
most significant changes to the Development Charges Act (DCA) are:
• Parks, indoor recreation, libraries, parking and studies associated with these soft
services are to be removed from the Development Charge Act. These costs will now
be funded under a new Community Benefit Charge By-law (CBC).
• Provincial legislation will allow municipalities to charge a CBC fee up to a cap yet to
be prescribed for soft services. The cap will be a percentage, to be prescribed of
the appraised land value before a building permit is issued (details of this cap are
not defined in the legislation and would be set by future regulations anticipated in
October.) However, it is the opinion of many municipal financial staff across Ontario
that under the CBC, the funding model will generate less funding for municipalities.
• Bill 108 does not explain how deficit DC reserve balances are to be transferred to
the new CBC bylaw or if the deficit is to be recovered over time from the new CBC.
This is a major concern due to the fact that the DC reserve fund will have to
borrow approximately $33.3 million under the most likely scenario. This issue
should be resolved when the Province issues the regulations around October of this
year.
Therefore, under the worst case scenario, the financial plan is to use the DC funds that
are in "the blank (reserves)" and not issue any debt for the DC funding shortfall. The
financial result of this strategy and or approach is that City issued debt is used to
replace the DC funds.
Measuring the Civic Centre Debt Impact on the City
Using the "most likely" scenario, please find below a summary of the City's debt position
as of December 31, 2019.
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 7
Impact of Civic Centre Debt on City's Debt Structure
Debt Obligations
Indoor Soccer Facility
DC Debt
Taxpayer Funded
Total
Debt Outstanding Per Capita
DC Debt
Taxpayer Funded
Total
Forecast
December Civic
2019 Centre
$ 2,672,000
9,134,000 $ 37,292,854
35,729,478 62,243,793
Estimated
Debt
Commitments
Total
$ 2,672,000
46,426,854
97,973, 271
$47,535,478 $ 99,536,647 $ 147,072,125
Based on a Population (95,000)
$96.15 $392.56 $488.70
$376.10 $655.20 $1,031.30
$500.37 $1.047.75 $1.548.13
The DC debt referenced above pertains to the new Operations Centre. As a
comparison, in 2017, Pickering's total debt outstanding per capita was $325. For 2019,
using the total debt figure of $47.5 million, and a population of 95,000, Pickering's total
tax debt per capita would be $500.37. When you add the Civic Centre project, the City
would have one of the highest debt per capita in the GTA at $1,548.13.
Provincial Municipal Debt Limit
As outlined by regulation, a municipality's Annual Repayment Limit (ARL) as calculated
by the Ministry of Municipal Affairs (MMA) represents the maximum amount that a
municipality has available to commit to additional payments relating to debt and
financial obligations. The limit is based on a 25 per cent calculation of annual operating
fund revenues excluding certain revenues such as government grants and transfers
from reserves and reserve funds. The MMA determines the municipality's ARL under
Ontario Regulation 403102 based on the municipality's Financial Information Return
(FIR).
Please find below, Pickering's ARL for 2018 and estimated for 2019 that includes the
Civic Centre project.
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 8
Annual Debt Repayment Limit
Net Revenues
25% of Net Revenues
Less:
Civic Centre Debt Charges
Debt Charges
Estimated Annual Repayment Limit
Debt Charges as a % of New Revenues
Actual 2018 Estimated 2019
$96,371,051 $99,213,997
$24,092,763 $24,803,499
4,488,518
$19,604,245
4.66%
6,369,234
5,128,523
$13,305,742
11.59%
The Civic Centre debt charges amount includes both City and DC shares. For this
calculation, the Province does not separate or distinguish between the two groups. As
expected with the introduction of the Civic Centre project, Pickering's debt charge
percentage increases substantially. As reflected above, the City is still below the 25
per cent Provincial rule.
Financial Impact of Civic Centre Project on Future Levy Increases
As shown below, with the use of estimated Casino revenues, there is very limited
financial impact associated with the capital cost of the Civic Centre project. The
operating costs for the Civic Centre project will be budgeted over two years (2023 and
2024) based on a preliminary opening date of July 1, 2023. The total estimated
operating cost impact is allocated over two years (1.24 per cent per year).
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 9
Line#
2020 2021 2022 2023 2024
1 City Operations 3.74% 3.50% 3.50% 3.50% 3.50%
2 Less: Assessment Growth -1.00% -1.00% -1.00% -1.00% -1.00%
3 Base Budget 274% 2.50% 2.50% 2.50% 2.50%
Add: Special Levies
4 Fire Fighters (2) 0.25% 0.25% 0.25% 0.25% 0.25%
Council Requested
5 ? ? Service Level Changes
6 Civic Centre
Operating Costs (6 Months) 1.24% 1.24%
7 Est. Budget Levy Position 2.99°/0 2.75% 2.75°% 3.99_ 3.99%
Casino Funds After Funding Civic Centre Project
Contributions to Reserves
8 & Capital Costs $3.7- $4.4 $2.6 - $4.2 $2.5 - $5.5 $0,9- $4.0 $1.5 - $6.4
9
Most Likely $4.4 $4.0 $5.5 $2.8 $4.1
Explanation of Multi -Year Financial Plan & Assumptions
For 2020, the preliminary City Operations forecast is a levy increase of 3.74 per cent
due to the annualization of new staffing positions from the 2019 budget. For the
remainder of the forecast period, it is anticipated that the budgetary increase will fall
within the City's acceptable range. Assessment growth is conservatively estimated to
average at least one per cent per year. Line 7 is forecasting modest budget levy
increases from 2020 up to and including 2022.
The budget levy increase as reflected on Line 7 are subject to "Council Requested
Service Level" changes that can either be an increase or decrease. For simplicity, the
model assumes a status quo in service level adjustments.
The financial model assumes that the City will start to receive Casino revenue funding
by the end of the second quarter in 2020. The Casino revenue funding model is based
on the current proposal of 3,700 gaming positions. The financial model assumes that
the cost sharing will Durham Region will begin with the start of the first full year of
Casino revenues (2021). The Casino revenue sharing with Durham Region is based on
the Council approved motion (Recommendation 2 - FIN 02-19) that the Region will
adopt a property tax relief program similar to Pickering's. The revenue sharing
calculation with the Region would be adjusted for any possible City revenue loss
associated with lower bingo license gaming fees.
Based on the current financing strategy, line 8 indicates that there are additional Casino
funds (after funding the Civic Centre construction costs) to be applied or transferred to
operational capital reserves or reserve funds (vehicle, major equipment, facilities, roads
and bridges, stormwater) that in -turn would reduce the City's use of five year internal
loans and eventually all internal loans. The additional funds reflected would also be
used as a financial safety net to address any short-term cost pressures or funding
challenges due to an economic slowdown. (The last recession was over ten years ago
and the economy is due for a correction). If the City follows or adopts the strategy of
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 10
investing in reserves with the surplus Casino funds, will reduce the City's debt costs that
in -turn would reduce the budget levy impact on line 7.
Line 8 represents the estimated additional Casino funds available (after funding Civic
Centre construction costs) and is an opportunity for the City to use these funds to
reduce the City's reliance on short term debt financing. The Civic Centre project has
dramatically increased the City's overall debt and the City should use these funds to
reduce its debt per capita ratio.
Preliminary Financing Strategy
The preliminary financing strategy is outlined below.
Assumptions
Interest Rate
Term
Senior Youth Centre
Underground Parking Lot
Arts Centre
Central Library
2020 _ 2021 2022
2023
4.0% 5.0%
25 Yrs. 25 Yrs.
2024
External 12 Months 12 Months 12 Months 12 Months
Debt Interest Cost Interest Cost Interest Cost Interest Cost
External 12 Months 12 Months 12 Months 12 Months
Debt Interest Cost Interest Cost Interest Cost Interest Cost
Construction Construction Construction Issue 12 Months
Financing Financing Financing External Debt Interest Cost
Construction Construction Construction Issue 12 Months
Financing Financing Financing External Debt Interest Cost
The City has several options regarding the debt financing strategy for the Civic Centre
project. One option is to use construction financing similar to a line of credit and when
the projects are completed borrow the required amount. The risk associated with this
strategy is that you are betting on the fact that interest rates will be either lower or at the
same rate in four years.
The preliminary financing strategy as outlined above is based on the strategy to mitigate
or reduce future interest rate risk by issuing debentures in 2020 for the Senior & Youth
Centre, parking lot and for the relocation of services and oversizing of pipes. It is
proposed that the City would then incur debt in 2023 for the Arts Centre and new
Central Library. The financing strategy would be designed to be flexible to take
advantage of favourable interest rate changes.
Discussion: The proposed Civic Centre development is a multi-year transformative
project. It will probably be the largest financial undertaking of the City. A breakdown of
the various project components is presented below.
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 11
Civic Centre Preliminary Construction Cost Breakdown
Art Centre $41,267,774
Arts Centre — City Share FFE 995,000
Landscaping 7,123,893
Library 30,372,529
Seniors & Youth Centre 23,416,500
Underground Parking 20,878,723
Sub Total $124,054,419
Add: Net HST 2,183,358
Total Building Construction Cost $126,237,777
Add:
Relocation of Services (net HST included) 7,861,139
Total Estimated Project Cost $134,098,916
It is interesting to note, that this new project would represent 51.60 per cent of the net
book assets of the City based on the City's 2018 Financial Statements.
Explanation of Key Recommendations
Council approval is required to Single Source the construction of the three
buildings and underground parking lot — Recommendation 4
The construction value of the three buildings and underground parking is estimated to
be $123.0 million plus net HST excluding City Centre FFE. Council approval is required
to single source due to the fact there is no opportunity to obtain competitive pricing
because of the geographical location of the project.
In a competitive process, the tender ensures that the City/taxpayer receives the "best
pricing" available at that current time and date. To ensure that the City is obtaining "fair
pricing", the City has hired an outside cost consultant to verify and audit the construction
pricing put forth by PTC. The independent cost consultant is reviewing this information
and Council will be advised of his findings and recommendations in the future.
That Council authorize staff to apply to all senior government grants that are
applicable, and that the Arts Centre project be designated as the top grant
candidate — Recommendation 7
Infrastructure programs announced by both the Federal and Provincial Governments
through their budget processes are anticipated to be available to provide capital
financing. Specifically, the Investing in Canada Infrastructure Program (ICIP) is a $30.0
billion, 10 -year infrastructure program cost shared between Federal, Provincial and
Municipal governments. Previous government funding strategy was for each partner to
fund one-third of the project cost. It is anticipated that a grant funding announcement
may be coming in the fall of this year. Recommendation 7 identifies the Arts Centre
as the top proposed candidate due to its low level of DC funding.
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 12
That the Director, Finance & Treasurer be authorized to begin the process to
amend the Development Charges By-law 7595/17 to increase the development
charge fees that are required to fund the development charges share of the Civic
Centre project based on the financial plan and that Council approve the
engagement of the firm Watson & Associates Economists Ltd. to undertake this
work — Recommendation 8
The Civic Centre project relies on almost 45 per cent DC funding. In order to collect the
required funding amount, the DC rates have to be amended or increased. Attachment 1
provides an up-to-date snapshot comparison of Pickering's residential DC rate to other
GTA municipalities. As the evidence clearly shows, Pickering's DC rates are very
attractive and a minor increase in the fees should still maintain the City's competitive
position as having one of the lowest GTA DC fees.
The process to amend the DC By-law is similar to the DC Background study except for
the fact it is a smaller project. As part of the DC By-law amendment process, community
engagement exercise with interested stakeholders will be undertaken. The project's
goal is to have the new and higher rates effective on December 1, 2019 or earlier.
Approval to increase the consulting contract with Sabourin Kimble & Associates
Ltd. for Phase 1 Relocation of Services - Recommendations 9 and 10
The hiring of Sabourin, Kimble & Associates Ltd. to provide project management and
preliminary engineering services for the City Centre Project was presented in Report
CAO 05-19 and was approved by Council at the March 25, 2019 Council meeting
through Resolution #53/19.
Since then, the consultant has worked diligently to determine the municipal servicing
requirements for the project, specifically the need to relocate municipally owned storm,
sanitary and water trunk services from the easement that transects Phase 1 of the City
Centre project, to a new location on Glenanna Road. The need for a transportation
study to support the Phase 1 development, to determine its potential impact on
surrounding City and Regional roads, has also been recognized as an important
element of the project. As the relocation of services will result in the reconstruction of
Glenanna Road, due to extensive restoration requirements, it is important for the
transportation needs to feed into the design of the replacement of Glenanna Road to
avoid or mitigate throwaway costs.
The preliminary cost estimate to relocate municipal services from the Phase 1 area to
Glenanna Road including the cost of reconstruction of Glenanna Road through the
affected area is $7,175,350 plus HST. This cost estimate includes an allowance for
utility relocations, as these details are unknown at this time.
Sabourin, Kimble & Associates Ltd. has submitted a proposal outlining the change in
scope to include fees required for the transportation study, and the detailed design of
the relocation of municipal services. If approved by Council, the change in scope will be
reflected on their original purchase order through an amendment.
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FIN 15-19 July 22, 2019
Subject: Civic Centre Multi -Year Financial Stress Test Page 13
The proposal dated July 15, 2019 from Sabourin, Kimble & Associated Ltd. in the
amount of $380,000 (HST extra) has been reviewed by staff, is deemed acceptable and
is recommended for approval.
Approval to initiate the hiring process for the Manager, Arts Centre Position —
Recommendation 11
As the City proceeds to the detailed design phase of the City Centre project, the City's
Manager, Arts Centre will become an active member of the project team participating in
ongoing consultations to inform the design and delivery of the new Arts Centre. This full
time position is anticipated to begin November 1, 2019 as part of the proposed 2019
Current Budget, pending the approval of Council to proceed with the City Centre project.
The Manager, Arts Centre will possess the expertise and experience to contribute
sound technical advice on the design of this state of the art facility. Since this position
will be responsible to operate and program the Arts Centre once it opens, it is critical
that they be involved at the detailed design stage when important decisions are being
made. This approach will ensure a successful and seamless transition from design to
construction, to the eventual operation of the Arts Centre.
Attachments:
1. Residential Development Charges for Single Detached Dwelling as of July
11, 2019
Prepared By:
Original Signed By
Stan Karwowski
Director, Finance & Treasurer
Approved / Endorsed By:
Original Signed By
Stan Karwowski
Director, Finance & Treasurer
Recommended for the consideration
of Pickering City Council
Original Signed By
Tony Prevedel, P.Eng.
Chief Administrative Officer
-43-
Attachment # 1 to Report # FIN 15-19
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