City Hall review: staff and Jacobs present buy‑vs‑build analysis; commission majority signals support for new construction

City staff and outside consultants presented a multi‑part briefing on options for a new City Hall during the July 2 conference meeting, including appraisals, phase‑one condition assessments, rough‑order‑of‑magnitude renovation estimates for two downtown office towers (Tower 101 and 1 East Broward) and revised business terms in an interim agreement for a proposed new build.

Assistant City Manager Quentin Pugh and representatives from Jacobs presented two independent appraisals and condition assessments. Jacobs’ Phase‑1 review described Tower 101 (approx. 231,000 sq ft) and 1 East Broward (approx. 350,000 sq ft) as structurally sound but requiring envelope, mechanical and certain life‑safety upgrades to meet current code for a civic use. Jacobs reported a rough renovation ROM for Tower 101 in the range of about $157.9M (±30–50%) and estimated commission chamber fit‑out costs of roughly $4.48M for Tower 101 and about $3.93M for 1 East Broward.

Staff briefed the commission on changes to the interim agreement since April, saying the developer removed a previously proposed developer fee and equity requirement and, with design changes, reduced estimated project delivery costs; the fiscal‑yeared total financing over 30 years for a new‑build option was presented as materially lower in the revised IA scenario than in April.

Property representatives from Tower 101 and 1 East Broward disputed some of Jacobs’ higher ROM items and argued the buildings have been well maintained; the Tower 101 representative said their own recent work-pack and voluntary upgrades amounted to roughly $23M and requested a focused analysis of making their building function as city hall at more limited cost.

Commissioners debated flood elevations, useful life and deferred maintenance for older buildings, the limited scope of the non‑invasive assessment, potential operations and maintenance costs, and the tradeoffs between near‑term renovation vs. long‑term lifecycle costs. Procurement and finance staff reviewed a long procurement history for other solicitations and explained delays in drafting scopes and selection processes.

By the end of the afternoon session, the mayor stated he was of the belief the city should "move forward with new construction," several other commissioners agreed and staff reported the majority favored moving forward with an interim agreement that carries a 100‑day scope finalization period and milestone payments. Staff was directed to continue negotiations, provide detailed IA/CA materials and clarify near‑term budget impacts; no final comprehensive agreement was approved at the conference meeting.