CITY COMMISSION AGENDA MEMO
November 17, 2009
FROM: Lauren Palmer, Assistant City Manager
MEETING: December 1, 2009
SUBJECT: Contract for Architectural Design Services for
Improvements to the Manhattan/K-State Innovation
PRESENTER: Lauren Palmer, Assistant City Manager
In September 2004, the City Commission approved an investment from the Economic
Development Fund to construct a new 30,000-sq. ft. business/technology incubator
facility to be located in the K-State Research Park. In December 2004, the City executed
an Economic Development Agreement with the National Institute for Strategic
Technology Acquisition and Commercialization (NISTAC) to serve as the manager and
operator of the Manhattan/K-State Innovation Center.
In May 2006, the City received a $1 million grant from the Kansas Bioscience Authority
(KBA) for functional upgrades and equipment for the Innovation Center. This award
necessitated an Amendment to the Agreement with NISTAC to outline how the KBA
grant would be expended and to establish performance targets associated with the facility
upgrades. Under the Amended Agreement, NISTAC is obligated to operate and maintain
the facility for a period of ten (10) years and to create at least 200 full-time equivalent
positions with an average annual salary of $45,000.
On April 7, 2009, the City Commission committed $425,000 of Economic Development
Funds to leverage a second grant application to the Kansas Bioscience Authority to
complete 5,000 sq. ft. of unfinished pilot space intended to house additional laboratory
and research uses. As part of this action, the Commission approved a Second Amendment
to the 2004 Economic Development Agreement with NISTAC to increase the job
creation targets (added 13 FTEs) and the amount by which the City is credited with
interest investments in NISTAC’s patent portfolio, which is used to calculate the
dividends the City receives from profits on that portfolio. The application to KBA was
successful for a second award of $1 million, and on October 13, 2009, the City
Commission approved the grant agreement with KBA and authorized City
Administration to negotiate a contract for design services for the project.
The first tenant in the new pilot space will be Megastarter, LLC, a company working to
develop and commercialize a microbial supplement for the livestock and dairy industry.
In addition to the pilot space, Megastarter will lease adjacent space in the Innovation
Center to serve as a quality control lab for production. City Administration has negotiated
a design services agreement for the pilot space build out with the architectural firm of
Bowman, Bowman, Novick, Inc., of Manhattan (BBN). BBN is the architect of record for
the original Innovation Center construction project, and therefore has a high level of
familiarity with the building and its unique laboratory elements. City Administration has
negotiated an hourly not-to-exceed fee of $113,500 for the build out of the 5,000 square
feet of pilot space and any necessary modifications to the quality control lab, including
required mechanical, electrical, and infrastructure improvements.
The total project cost of $1,425,000, including a maximum of $113,500 for design fees,
will be paid through a combination of economic development funds ($425,000) and the
KBA grant ($1 million).
It appears the Commission has the following alternatives concerning the issue at hand.
The Commission may:
1. Authorize the Mayor and City Clerk to execute the architectural
services contract with Bowman, Bowman, Novick, Inc. for the
completion of the pilot space in the Manhattan/K-State Innovation
2. Do not authorize the Mayor and City Clerk to execute the agreement.
3. Direct City Administration to renegotiate the contract based on the
desires of the Commission.
4. Table the item.
City Administration recommends the City Commission approve an architectural services
contract with BBN due to their knowledge of and past experience with the building.
Authorize the Mayor and City Clerk to execute a contract for architectural services with
Bowman, Bowman, Novick, Inc., of Manhattan, Kansas, in an amount not to exceed
$113,500 for the completion of the pilot space in the Manhattan/K-State Innovation
1. Proposed Agreement