IDA board hears EDA timetable reprieve for PFKI project and approves phased Lynn Knight consulting contract

The IDA updated the board on the PFKI infrastructure project and took action to approve a phased consulting arrangement with Lynn Knight.

Agency official (S2) told the board that the Economic Development Administration (EDA) has indicated the project’s funding source comes from a permanently appropriated infrastructure/public-works grant fund that carries a statutory limitation through March 2028. Because of that funding source, the EDA said the agency could amend deadlines and potentially grant extensions for project completion, giving the IDA more time to rework scope and budgets after EDA rejected its prior proposal.

S2 said the general contractor (Iron Sword) and equipment-contract vendors have proposed scope and cost reductions; equipment contracts currently total "just a bit over $1,000,000" and staff are exploring the state bid list to reduce costs while meeting procurement requirements. S2 said Jonathan Zamora has forwarded the equipment list to a broker who uses the state bid list to seek lower, fixed-price offers that meet local procurement rules.

Separately, the board approved a phased consultant agreement for Lynn Knight: an initial $3,000 for past work, $2,000 to $5,000 for ongoing work to be authorized now and an additional up-to-$5,000 tranche to be considered later. The board discussed clarifying language so the contract states a phased or "up to" total rather than an unconditional $10,000 payment; members voted to approve the agreement with the edits discussed.

Board members also discussed seeking a private-sector partner to operate the incubator if it proceeds, acknowledging thin margins and the need to balance community benefit with a private operator’s profit motive. S2 said the city manager is aware of the project's status and staff will continue negotiating with contractors and exploring procurement options.