DDA forms subcommittee after single $4.2M bid for 5th Street pedestrian plaza

The Royal Oak Downtown Development Authority on Jan. 21 reviewed a single contractor bid of $4,200,000 to build the long‑planned 5th Street Pedestrian Plaza and voted to form a special subcommittee to investigate cost drivers and potential funding options.

Executive staff told the board the bid was substantially higher than earlier estimates and the DDA’s current fiscal-year allocation. The DDA budget included $1.3 million for the project this year and a $2.6 million carryover; staff said the city’s capital improvement program has committed $519,201 for water‑main replacement and the DDA is pursuing a $300,000 Access to Transit grant to help close the gap. Staff recommended splitting the work into two phases so some construction could begin within this year’s weather window while locking in certain supplier prices.

Several directors raised procedural and financial questions. “I believe we need more information,” Director Yezvick said, asking why multiple firms that initially showed interest did not submit bids and why the engineer’s estimate differed from the contractor’s number. Director Johnson pressed staff to explain large line items, including a roughly $350,000 site‑preparation line and $120,000 for miscellaneous removal.

Staff said preparatory work — including dye testing of sewer leads — had revealed underground conditions that could require corrective work and that some contingency allowance was standard. The executive director and staff emphasized the project is time‑sensitive: delaying a decision risks losing suppliers’ quoted prices and the contractor’s availability during the narrow Michigan construction window.

After discussion the board voted to support two staff resolutions to pursue additional funding sources (grants and grant‑writer assistance) and to form a five‑member subcommittee to review the bid package, consult with city engineering and finance, and report back within the board’s stated two‑week timeline to preserve the construction window.

The committee will be required to meet with public notice and produce minutes. If the committee recommends moving forward, the board will need to assemble a full financing plan before approving contract awards or appropriations.

Provenance: topicintro SEG 1362, topfinish SEG 2206

Speakers quoted: Executive staff presenter (unnamed), Director Yezvick, Director Johnson.