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Community & Economic Co C (k) Development >, 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: David Relos, Economic Development Planner 911. Subject: Professional Services Agreement — Architectural Design Group (ADG) Prairie Salvage relocation services Date: September 27, 2011 Since April of this year, staff has been working with Prairie Salvage to find a suitable location within the city limits. Because of their business, Prairie Salvage needs primarily an open space building with little to no office space, approximately 7,500 square feet, and one story at ground level. Two different real estate agents looked for buildings meeting this standard, and found none. All available listings are either too big or small, not at grade level, or are mainly office space. After a brainstorming session, staff discovered two buildings not currently listed that could be possibilities. One, the old Color Tile building on Lincoln Way East (LWE), would have an acquisition and rehabilitation cost of over $380,000, with business moving costs taking this total to approximately $420,000. The second building is also on LWE. Acquisition cost of this building would be $150,000. To enable staff and Prairie Salvage to understand the condition of the building, and what costs may be associated with necessary improvements, the building needs inspected and, based on those inspections, cost estimates gathered. In addition, the Building and Fire Departments will need to inspect the building and their recommendations incorporated into any rehabilitation plan. Since ADG has helped in two prior Commission relocations, they were asked to provide the attached proposal. Staff requests approval of this professional services agreement, in a not to exceed amount of $7,200. What We Do Today Makes A Difference!