Additional Information for Northampton Teen Housing Application Review Request 5-30-2018.pdfAdditional Information for Northampton Teen Housing Application Review Request 5/30/2018
1. Why are the bid costs being presented now so much higher than the estimate provided with the 2016 application from FHCHI?
The initial estimate provided to the CPC was developed prior to contracting with an architect, civil engineer or builder and were based on rough market costs per square foot for the size of building we anticipated. 2,000 square feet at $240/SF worked out to a rough estimate of $ 480,000. Additional
building requirements from the state and the city required the building design to increase to 2,650SF and added a porch to the design. Using the per square foot calculation from the first application would raise the price to $636,000. An increase of $156,000.
Additionally, DIAL/SELF’s original estimate did not take into account the site costs associated with permitting requirements in Northampton (storm water systems, required plantings or lighting). Nor did
the estimate take into account the fact that paving and site work were addressing the needs of two sites rather than one.
Original estimates also did not account for the testing, abatement and demolition of two garages or the inclusion of Group 2 ADA compliant ground floor unit. This unit is advantageous but adds square footage and cost for specific features/fixtures.
In general the changes in building performance expectations under the new energy code(IECC2015), including the requirement to pay for HERS rating consultant, adds to the cost of design, construction and closeout. And finally, we are feeling that we need to invest in more and better designed casework in each unit to make the living experience more successful. There is not a lot of square footage in the apartments so the storage cabinets and built in furnishings need to be carefully considered. Our casework costs are
higher than was expected, but we feel it is important to make units that are move in ready and won’t require the occupant to furnish.
The numbers we have in hand now are hard bids based on the review of three qualified teams of general contractors and subcontractors. They reflect the accurate conditions of the market today which show inflation as a result of high demand in the Northampton market.
2. What are the impacts to the project if funds are not committed now, and made available until next calendar year?
It is hard to estimate the inflationary pressure on the cost of construction should the project be delayed
a year. We would have to release the builder and rebid the project. We have been told to assume a
8% increase in construction costs plus additional costs to the architect and engineer for re-bidding the
project. That could be an additional $80,000 in costs. It could also trigger a repayment clause for a
previously received $50,000 grant to support the project. Even more importantly, we would be delayed
a year in providing this urgently needed housing, money raised to date would sit losing value until
construction could start, and we would be carrying the cost of ownership without the additional income
streams to offset the costs.