HomeMy WebLinkAboutKPL - Central Library Project Update - February 1, 2006KITCHENER PUBLIC LIBRARY '~~ ,~
Report To: Chair Vrbanovic and Members of Finance and Corporate Services
Date of Meeting: February 6, 2006
Submitted By: Kitchener Public Library Board
Prepared By: Sonia Lewis, CEO
Ward(s) Involved: All
Date of Report: February 1, 2006
Subject: Kitchener Central Library Project Update
RECOMMENDATION:
For information only.
EXECUTIVE SUMMARY OF PROJECT:
THE NEED FOR A NEW CENTRAL LIBRARY:
The need for a new library was first identified in 1999. KPL's current central library is 44 years
old, and built to serve a population of 73,000. It no longer meets the needs of Kitchener's
estimated 203,417 residents.
The current central library is deficient in 11 of the 16 criteria established by provincial, national
and international library associations. The following deficiencies have been identified with the
current central library:
^ Inadequate space for services and programs.
^ Outdated and crowded areas for young adults and children.
^ Limited accessibility -does not meet the City's own standards (Joint Accessibility Plan).
^ Insufficient and inflexible technology infrastructure -not enough public Internet terminals.
^ Insufficient space for total collections.
^ Insufficient number and variety of meeting rooms for the public.
^ Inadequate parking at peak hours -number one complaint of customers.
^ Deteriorating mechanical systems in the building.
The central library is the heart of the system, managing crucial administrative and planning
functions. Kitchener's current system of branch libraries cannot be expanded without a stronger
central librarv to subbort more branches.
Page 1
Beckman Associates Library Consultants have concluded, "The current location and size of the
Kitchener Public Library's Main Library is not adequate to accommodate the current usage levels
and will not accommodate further expansion opportunities in order to serve projected growth".
THE VISION FOR A NEW CENTRAL LIBRARY:
A new central library located on Centre Block will be a true community gathering place,
providing much needed public space in the downtown core while engaging in partnerships with
the other local libraries, local school boards, the two new downtown university campuses, local
museums, art galleries, and community centres. As a gathering place that attracts citizens from
all walks of life and from all points of Waterloo Region, the new central library will be a beautiful,
modern, dynamic facility that draws people and their disposable income into a vibrant
downtown, seven days a week.
Complementing Kitchener's flourishing education and knowledge creation cluster, a new central
library on Centre Block will have a significant economic impact on the downtown, and is a key
component to City Council's vision of re-energizing the core and making it 'a place for people.'
In addition, a new main library will help establish the quality and character of the surrounding
neighbourhood, serving as a standard for nearby property development.
A new central library at Centre Block will improve and modernize public library services in the
city. It will offer larger, more diverse collections and programs, increased resources for youth
and multicultural groups, and friendly space for children and families. It will encourage children
to develop a lifelong love of reading and learning. It will be fully accessible and conveniently
located near public transit. It will offer new technology and other resources to help Kitchener's
diverse population access opportunities and improve their skills to ensure Kitchener continues
to take advantage of its unique position in the new economy.
THE BENEFITS OF A NEW CENTRAL LIBRARY:
A new central library in downtown Kitchener will have numerous short-term and long-term
benefits, some of which are tangible and some of which are not:
Economic Benefits of New Central Library:
^ $59.6 million annually =total recurring economic impact in the region by year five of the new
library.
^ $28 million per year in indirect visitor impacts to the downtown (primarily increased retail
spending).
^ $33.6 million added to the local economy (one-time -construction).
^ $24 million in wages and salaries (one-time -construction).
^ $18 million in revenue for the federal, provincial, regional and local government (one-time -
construction).
(Impact Analysis and Due Diligence Review of a New Main Branch Kitchener Public Library.
Adventus Research. 2004.)
Page 2
Community Benefits Of A Better Central Library:
^ Increase the number of visits to the central library by 60% in the first year alone to 800,000.
Double the number of visits to the central library to 1 million by year five.
^ Give KPL the ability to support new branch libraries throughout the city.
^ Modernize and strengthen Kitchener's entire library system.
^ Offer a wider variety of collections and programs for Kitchener's growing and diverse
population.
^ Address all of the deficiencies of the current central library.
Benefits To Downtown Kitchener:
^ Attract residents from across Waterloo Region to the downtown seven days a week.
^ Provide an institutional and financial incentive to encourage private developers to invest in
Centre Block.
^ Play a key role in City Council's vision to re-energize the downtown core.
^ Complement the two new downtown Kitchener university campuses in the development of
an education and knowledge creation economic cluster -potential partnerships.
^ Provide public space in the downtown.
THE COST OF A NEW CENTRAL LIBRARY:
A new central library will require considerable public investment, a comprehensive fundraising
plan and a strong partnership with a private sector developer. According to the 2004 business
case, the preliminary cost estimate for the project was between $44-51 M. That preliminary cost
estimate, which was based on the information available at that time did not contemplate an
underground parking garage on the site.
The most recent cost estimates for the project is $58.7 M (details of which are contained in this
report). This latest estimate is based on an analysis by Hanscomb Limited, input received when
the estimates were presented to the Centre Block Committee in December 2005 and further
work done by KPL Board and staff to reduce the cost of the project. The accuracy of these
estimates is in the range of plus or minus 10%. At the design and preconstruction phase of a
project typically cost estimates are further refined and reflect a higher degree of accuracy.
In May 2005, Kitchener City Council confirmed the municipal contribution of $32.5 million to the
total cost of the new library. In addition, KPL's 2004 business case estimated $2.5 M could be
raised from the proceeds of the sale of the existing central library building and property. Since that
time KPL has been working on a fundraising plan, and on the advice of an independent consultant
has set a target of $5 M.
The City's approach to combining the need to build a new central library with its desire to
redevelop the Centre Block property is specifically aimed at finding a private sector developer.
By leveraging the municipal investment in the library, the City hopes to find a developer who will
redevelop the entire block while helping to build the new central library.
Page 3
Kitchener Central Library Project Update
February 1, 2006
BACKGROUND:
In September 2004, the Kitchener Public Library Board presented City Council with a business
case documenting the need for a new central library. The business case outlined preliminary
projected costs for the project of $44-51 M based on a level of detail available at that time. A
significant portion of the cost estimate outlined in the business case was based on an expert
report produced by Beckman Associates Library Consultants.
At its May 30, 2005 meeting City Council passed a resolution which included "That the hiring of
an architect or consulting team, be approved, to review and finalize the building program
(functional design); develop a schematic design; participate in a public open house and prepare
detailed project cost estimates for Kitchener Public Library's proposed new central library".
Following direction by City Council, in July 2005 the contract for this work was awarded to Levitt
Goodman Architects and Phillip Carter Architect and their cost consultant, Hanscomb Limited.
Hanscomb Limited is one of Canada's leading cost consultants with over 44 years' history,
including numerous library projects.
At the December 2005 meeting of the KPL Board, the conceptual design options and associated
cost estimates were approved. That information was presented to the Centre Block Project
Committee in December and was widely reported in the media.
The majority of the increase in the cost estimates between the 2004 business case and the
revised estimates presented to the Centre Block Project Committee in December were the
direct result of two factors:
1. The 2004 business case contained a cost of $450,000 for surface parking on Centre
Block. It did not contemplate an underground parking garage. Upon further study of the
parking needs on the Centre Block once a new library is built, it is now clear that there is a
requirement and a public desire for an underground parking lot at a total cost of $6.3 M -
which is $5.8 M in new dollars which were not contained in the 2004 business case.
2. The 2004 business case assumed that construction on the new library would begin in
2006. When Hanscomb prepared its more detailed cost estimates, it assumed that
construction would not begin until 2008 and therefore, it added 15% inflation to the cost
of the project.
After presenting Hanscomb's cost estimates to the Centre Block Project Committee in
December 2005, KPL Board and staff worked to reduce the budget where possible in order to
make the total project as attractive as possible to a potential private sector partner. The latest
total cost estimates for the project are outlined in Table 4 of this report.
From August to December 2005 the Library worked with KCI (Ketchum Canada Inc.) on a
fundraising feasibility study. Its purpose was to determine the receptivity to a fundraising
campaign to support the construction of a new central library and identify a fundraising goal.
This report summarizes the results of the fundraising feasibility study and provides City Council
with an update on the latest cost estimates for the new central library project. Alternatives for
funding the project are outlined in an accompanying Centre Block Project Committee report.
Page 4
Kitchener Central Library Project Update
February 1, 2006
REPORT:
Fundraising Feasibilitv Studv Results
From August -November 2005 KCI (Ketchum Canada Inc.) conducted a study to determine the
feasibility of a capital campaign to raise funds for the central library project. A summary of key
findings follows:
• KPL has a positive image in the community and there is support in principle for the
Library's need to raise funds. However, study participants felt it would be challenging for
KPL to raise funds as it lacks a significant history of major gift fundraising.
• A comprehensive marketing and communications strategy is needed to provide greater
clarity on development plans for Centre Block, to raise awareness of the library's role in
the community and to address questions about regional library cooperation.
• A compelling case for support for the project needs to be crafted and communicated to
prospective donors. A strategy for building relationships with prospects is required.
• A volunteer recruitment program must be developed to attract volunteer leadership for a
capital campaign.
• The campaign preparations noted above require dedicated staffing resources fora 12
month period.
Based on the successful implementation of these preparatory activities, KCI suggested KPL
establish a preliminary campaign goal of $5M and reassess it in six months. Work is underway
by KPL's Fundraising Committee on addressing the recommendations in the feasibility study.
Cost Estimates
In the fall of 2005 Levitt Goodman Architects and Phillip Carter Architect worked with cost
consultant, Hanscomb Limited to produce an order of magnitude cost estimate for the new
central library. By its very nature and based on further detailed information not available in
2004, this new cost estimate was more detailed than the preliminary estimate contained in the
original business case.
Order of magnitude costing is typically prepared during the conceptual phase of a project. It is
an approximate estimate made during the formative stages of a project for the purpose of initial
evaluation and is based primarily on the size of the structure and its proposed use. The
accuracy of these estimates is in the range of plus or minus 10%. At the design and
preconstruction phase of a project typically cost estimates are further refined and reflect a
higher degree of accuracy.
FINANCIAL IMPLICATIONS:
Estimated Proiect Costs
The latest cost estimates for the new central library are summarized in the tables below. The
range of costs listed at the bottom of the two tables reflects the degree of accuracy of the
Hanscomb estimates at this stage of the project. This is in the range of plus or minus 10%.
Tables 1, 2 and 3 below provide Hanscomb's updated cost estimates for the library
construction, site costs and parking. It compares them with the cost estimates included in KPL's
Central Library Project Business Case, September 2004. Costs reflect the Kitchener
Page 5
Kitchener Central Library Project Update
February 1, 2006
construction market. In order to help Council accurately draw comparisons between the
preliminary cost estimates contained in the business case which assumed a construction start of
2006, these tables reflect current costs. For planning purposes Hanscomb recommended we
assume construction costs will escalate by approximately 5% per annum.
Energy efficiency measures and calculations for contingencies account for the major differences
between the Hanscomb and business case estimates. The Hanscomb costs in Table 1 below
include energy efficiency and green design measures consistent with Leadership in Energy and
Environmental Design (LEED) and the Commercial Building Incentive Program (CBIP). These
measures were not included in the business case costs.
The benefit of CBIP is reduced energy costs for the life of the building. Achievement of any
LEED level results in significantly reduced environmental impact, improved indoor environment
and lower building maintenance costs. The investment in these measures will be offset in
operating cost savings of approximately $82,000 per year.
For the costs outlined in Table 1 Hanscomb assumed a 10% design contingency; whereas 8%
was used in KPL's 2004 business case.
Costs per square foot are $223 in the Hanscomb estimates. This is in line with projections
prepared by Beckman Associates for the 2004 business case which assumed $225 per square
foot.
Table 1
Estimated Library Construction Costs 2006
KPL Business
Library Construction Costs Case
Hanscomb (Beckman)
Building Construction
$28,997,400 $29,000,000
Leadership in Energy and Environmental
Design (LEED) Allowance
$700,000 excluded
Commercial Building Incentive Program
(CBIP) Rebate ($60,000) excluded
Design Contingency $2,899,700 $2,300,000
Construction Contingency $1,594,900 $1,400,000
Total Librar Construction Costs $34,132,000 $32,700,000
Possible Range Low -10% $30,718,800
High +10% $37,545,200
Table 2 outlines estimated site costs. The Hanscomb landscaping cost projections did not take
into account development of the entire Centre Block site and therefore do not reflect savings
that will be achieved through economies of scale. When landscaping is planned for the larger
site and is based on a specific design, cost reductions are anticipated in this area.
Page 6
Kitchener Central Library Project Update
February 1, 2006
Contingencies were excluded from the 2004 business case but were included in Hanscomb's
estimates.
Table 2
Estimated Site Costs 2006
KPL Business
Case
Site Costs Hanscomb (Beckman)
Landscaping Allowance $1,250,000 $300,000
Site Preparation and Servicing Allowance $250,000 $200,000
Site Design Contingency $150,000
Site Construction Contingency $82,500
Total Site Construction Costs $1,732,500 $500,000
Possible Range Low -10% $1,559,300
High +10% $1,905,800
Parking costs are outlined in Table 3. Costs in the 2004 business case were for surface parking
with 150 spaces. It was assumed additional parking needs (280 spaces) would be met by
adjacent or nearby parking lots. Surface parking on Centre Block is no longer an option
available to KPL. City and Centre Block Project Committee directions, as well as public input at
the design charette have dictated a need for underground parking, resulting in a significant
increase in library parking costs.
For the latest estimates parking needs were reassessed based on a library parking survey
conducted in January 2006 at the request of City staff. Parking needs have been increased to
180 spaces to address daytime parking requirements of library customers. Parking needs are
higher during the library's peak evening hours; however, we assume those additional parking
requirements will be met by adjacent parking lots.
It is anticipated that 50-60 KPL staff will require parking in the downtown when the central library
moves to Centre Block. These parking requirements are not accommodated in the 180 spaces
noted above. This would be income generating as we assume staff would pay for their parking,
as they now do.
Centre Block has been identified as a possible location for additional downtown public parking.
Combining this public parking with Library parking would result in lower construction costs and
operating efficiencies. Underground parking frees up surface areas on the site for additional
development and creation of tax generating buildings.
Contingencies are included in the Hanscomb parking estimates but were excluded from the
2004 business case.
Page 7
Kitchener Central Library Project Update
February 1, 2006
Table 3
Estimated Parking Construction Costs 2006
KPL Business
Case
Parking Costs Hanscomb (Beckman)
Underground Parking - 180 spaces $5,431,700
Design Contingency $543,200
Construction Contingency $298,700
Surface Parking n/a $450,000
Total Parkin Costs $6,273,600 $450,000
Possible Range Low -10% $5,646,200
High
+10% $6,901,000
Table 4 provides estimates for projected construction costs and other capital costs associated
with the new central library. This includes costs for professional fees, project management fees,
public art, furnishings, equipment, technology, moving and library collections and resources to
meet recognized library standards. Notes at the bottom of Table 4 draw comparisons between
the latest estimates and those included in the business case. As noted above, we anticipate
cost projections for site costs and parking may be reduced when handled as part of the overall
Centre Block development.
Page 8
Kitchener Central Library Project Update
February 1, 2006
Table 4
Estimated Total Project Costs 2006
Estimated Cost
Library Construction and Contingency Costs $34,132,000
Professional and Design Fees $2,901,200
Project Manager $682,600
Public Art $300,000
Furnishings/Equipment/Technology $10,000,000
Moving Costs $300,000
* Library Collection Growth $2,400,000
SUBTOTAL $50,715,800
Site Costs $1,732,500
Parking Costs $6,273,600
TOTAL Estimated Pro'ect Cost $58,721,900
Possible Range Low -10% $52,849,700
High +10% $64,594,100
* Library Collection Growth: as per 2004 business case. Costs can
be spread over 3 - 4 years with a first year cost of $600,000.
Library Construction: as per Hanscomb; Hanscomb design contingency
2% higher than that of 2004 business case
Professional and Design Fees: 8.5 % of library construction costs as per
2004 business case
Project Manager: 2% of library construction costs as per 2004 business
case
Public Art: as per City of Kitchener 1 % Public Art Policy and 2004
business case
Furnishings/Equipment/Technology: as per 2004 business case
Moving: as per 2004 business case
Site and Parking: as per Hanscomb including contingencies excluded in
business case
COMMUNICATIONS:
As part of the development of this project, the Library conducted extensive public consultations
including public open houses, focus groups, community surveys, and stakeholder sessions to
solicit feedback from the community on the proposed new central library. Some of this work
was undertaken by the Southern Ontario Library Service (SOLS), an agency of the Ontario
Ministry of Culture. As a result of those public consultations, SOLS concluded, "the Library
Board and City Council have clear confirmation from the public that there is a need for a new
main library."
Page 9
Kitchener Central Library Project Update
February 1, 2006
During the latest phase of the project, the public had the following opportunities to learn more
and provide feedback:
• September 21, 2005 -Architect's preliminary report to the KPL Board.
• September 25, 2005 -Central Library open forum at Word on the Street
• October 13, 2005 -Public open house and architect presentation
• October 2005 -Conceptual designs available on KPL website
• November 16, 2005 -Architect's final report and fundraising consultant's report to the
KPL Board
• December 14, 2005 -Presentation of cost estimates to KPL Board
Sixty-three members of the public attended one of the community consultation sessions, five
people submitted written comments via the website, and there were 2,725 visits (January -
December 2005) to the new central library project information page on KPL's website.
In the City's recent Environics survey, 86% of Kitchener residents indicated they are either very
satisfied or somewhat satisfied with public library service. 87% indicated they think the City of
Kitchener should be spending about the same or more money on public library services. Only 5%
of respondents indicated the City should be spending less.
Previous public surveys have shown that 82% of Kitchener residents rate the library as one of
their most valued City services.
CONCLUSION:
After months of detailed research and several opportunities for public input, the proposal to build
a new central library on Centre Block and the accompanying detailed cost estimates which
currently stand at $58.7 M (including $6.3 M for an underground parking garage).are ready to be
included in an RFP for the redevelopment of the Centre Block. This is a very significant step
towards completion of the project.
A strategy for addressing the project costs is being developed in consultation with City staff and
the Centre Block Project Committee. Further details on that strategy are addressed in an
accompanying Centre Block Committee report.
The KPL Board and staff remain committed to achieving the goal of a new central library
through the construction of a welcoming and functional facility on the Centre Block site.
Respectfully submitted by,
Sonia Lewis, CEO Kitchener Public Library
Page 10