08 March 2020

City of Mesa's ENTERPRISE INVESTMENT FUND Wants $48,875,460.90 More From Taxpayers For ASU Money-Pit (GMP #3)

The Devil's always in the details in all these schemes by Hizzoner John Giles that tricked voters and taxpayers - first with this on-stage performance at Mesa ConCenter in 2014.
Little did we know what schemes Hizzoner John Giles had up-his-sleeves until February 2018 when it was revealed that then AZ State Senator Bob Worsley had scooped-up titles in holding companies buying-up a portfolio of eight (then 10) commercial properties on Main Street for his own private wealth-creation at the same time holding public office. All of it dependent on the ASU scheme.


The Council approved an Intergovernmental Agreement (IGA) with Arizona State University (ASU) for a new building project in February 2018. 
It was a 'scaled-down version' of the $200M proposal for four buildings Mesa taxpayers rejected in 2016 when a $500,000+ privately-financed public relations campaign turned into a major screw-up.
Giles and his cohorts got what they wanted - now with a revised price-tag for $64M for just one new building, adding the renovation of the old IT Building to the sales-pitch.
That all turned into a major 360-Degree Dilemma for the selected constrained site on Pepper Place.
The City and ASU subsequently entered into a lease agreement for the building in November 2018.
Unknown to taxpayers or voters at that time was the additional millions that would be needed - but at the same time city officials also had plans in the behind-the-scenes-planning stages to somehow provide link-ups for other privately-funded projects that used taxpayer-funded and public monies to benefit real estate speculation here in downtown Mesa.



GMP #2 is the second in a series of GMP’s for the ASU @ Mesa City Center building. The total budget from City sources is $63.5 million with an additional $10 million contributed by ASU for a total project budget of $73.5 million.
During the Pre-Construction Phase, the CMAR worked closely with the project team to develop the project design, review the design for constructability, prepare cost estimates, and develop the project schedule.
The last item developed during the Pre-Construction Phase is the “Guaranteed Maximum Price” (GMP) for the project. 

On December 9, 2019, the City Council awarded a contract for GMP No. 2 in the amount of $16,117,229 with a change order allowance in the amount of $805,861.45 (5%) for a total authorization of $16,923,090.45 to DPR Construction to begin constructing the ASU @ Mesa City Center building.

GMP 2 included
> removal of existing improvements within the new building footprint,
> excavation of the building site,
> preparation of the building pad, foundations, and the concrete structure of the building. __________________________________________________________________________
BLOGGER NOTE:
If you go to the site on Pepper Place today, you won't see any of those three items completed.
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Separating the project into multiple GMP’s accelerated construction to meet the project’s schedule goal. 
This GMP for remaining building work for ASU @ Mesa City Center is the third of a series of GMP’s relating to City Center work.

File #: 20-0295   
Type: Contract Status: Agenda Ready
In control: City Council
On agenda: 3/16/2020
Title: Mesa City Center -
Third Guaranteed Maximum Price (GMP No. 3) -
ASU @ Mesa City Center (District 4) 
GMP No. 1 was approved by Council on November 4, 2019 and included infrastructure improvements to the City’s utilities, communications facilities, and streets needed to support the ASU building, the Plaza, the Studios and any future developments and improvements in the area. GMP No. 2 was approved by Council on December 9, 2019 and included general site demolition, excavation of the building site, building pad preparation, foundations, the concrete building structure, and associated items. This GMP is the third of the series of GMP’s relating to City Center work. The scope of work includes all remaining construction necessary to complete the ASU @ Mesa City Center building. Staff recommends awarding the contract for GMP No. 3 to the selected Construction Manager at Risk, DPR Construction, in the amount of $46,548,058, and authorizing a change order allowance in the amount of $2,327,...
Attachments: 1. Council Report, 2. Project Location Map

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LEGISLATION

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