HD91 - The Feasibility of a Public-Private Partnership for the Addition of an Office Structure on the Top of an Existing Parking Deck, Including the Identity of the Proposed Tenants


Executive Summary:
Item C-2 of the 2005 Acts of the Assembly, Chapter 951, directs:

"The Department of General Services shall prepare and release a plan to the Chairmen of the House Appropriations and Senate Finance Committees on or before December 1, 2005, on the feasibility of entering into a public-private partnership for the addition of an office structure on the top of the existing parking deck, including, but not limited to, entering into a comprehensive agreement with a private entity for the addition of such structure pursuant to the Public-Private Education Facilities and Infrastructure Act of 2002 (§ 56-575.1 et seq., Code of Virginia). In addition, the plan shall identify the proposed tenants who will be occupying the structure upon completion."

The Public-Private Education Facilities and Infrastructure Act of 2002 (PPEA) allows public entities to create public-private partnerships for the development of a wide range of projects. Consistent with the provisions of the PPEA, in July 2004 the Department of General Services received an unsolicited conceptual proposal for the development, financing, design and construction of an office building atop of the existing parking deck on the south side of east Franklin Street between 8th and 9th Streets in downtown Richmond. DGS made a decision to accept the proposal for conceptual phase consideration (Part I), and posted a public notice announcing its decision. During the public notice period, no additional firms submitted proposals. The original conceptual proposal suggested two development alternatives for the site:

I. Construction of an office building built atop of the existing eight level parking structure and,

2. Construction of both an office building and additional parking over the existing parking structure. Total Gross Square Feet to be constructed for both options was estimated to be approximately 251,000.

As part of its review process the Department of General Services engaged an outside consultant to assist in consideration of the unsolicited proposal. The major conclusions in the consultant's report may be summarized as follows:

• Overall, the offeror is qualified and has experience with comparable construction projects.

• The mechanical systems for the proposed building are acceptable.

• Continued use of the parking garage during the construction project itself does not appear to be feasible, contrary to the approach contemplated in the proposal.

• The consultant's review indicates concerns about the existing foundation of the parking structure being adequate to support the proposed construction.

• The proposed construction will result in traffic congestion on 8th, 9th and Franklin Streets, and would likely occur during a period when the State Capitol's new Bank Street entrance is just opening.

• The proposed exterior curtain wall docs not appear to be architecturally appropriate in relation to the surrounding facilities.

• The overall construction schedule appears to be overly aggressive in light of the current predictions of material demands in the construction industry which will also impact the costs (estimated to be 30-35% higher than what is proposed) provided in the proposal.