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The City of Portland, Oregon

Office of Management & Finance

Trusted partner, creating smart solutions for the City and our community.

main: 503-823-5288

Revenue: 503-823-5157

1120 SW 5th Ave, Room 901, Portland, OR 97204

Project update, 2/5/2015

5 February 2015:

FFA Architecture and Interiors, in partnership with The Façade Group and KPFF Consulting Engineers, was contracted by OMF Facilities in September 2012 to provide the building’s first comprehensive assessment of existing exterior envelope conditions and building structural conditions (see Qualifications Based Selection, FFA Contract, FFA Contract Amendment 1). The contract provided for an assessment report, as well as repair and upgrade recommendations, and project construction budget estimates. The assessment report and related deliverables were provided in March 2013 (see The Portland Building Assessment: Appendix). The report included actual conditions, conceptual designs, and construction cost estimates.

After receiving construction cost estimates as part of the assessment report, and having internal discussion about the impacts and full potential costs of the project, it was decided that a larger conversation was needed before proceeding. Discussions were initiated with Council members, as well as other internal stakeholders, to present the results of the assessment and other internal considerations. Feedback from those stakeholders indicated that more information regarding alternative options would be helpful in moving forward with budget discussions.

An advisory group of professionals was convened to review staff work related to the Portland Building Exterior Envelope project, as well as to discuss alternative options in order to provide a range of references for high-level comparison and analysis.  This community-based advisory group consisted of local leaders in the design, construction, development, sustainability and historic preservation fields (see Advisory Group). 

The group discussed options for addressing the Portland Building issues, including:

    1. Implement the the Portland Building Exterior Envelope and Seismic Improvements Project
    2. Demolish the Portland Building and build a new City building on the site
    3. Sell the Portland Building and buy an existing building elsewhere downtown or inner eastside
    4. Sell the Portland Building and build a new City building downtown or inner eastside
    5. Sell the Portland Building and build a new City-County (or other public partner) combined office building downtown or inner eastside
    6. Sell the Portland Building and permanently move all City employees currently in the Portland Building into outside leases

Over the course of multiple meetings since April 2014, the advisory group provided commentary on potential solutions for the City moving forward.  One early outcome of the meetings was a series of statements that capture key details of the issue (see The Portland Building: Issues and Condition). There has been discussion about the possibility of partnerships with other government entities or private parties, to provide innovation, shared operations or other possible benefits. Likewise, the group has debated whether some portion of the Portland Building could remain occupied under construction to lower potential costs of this solution. For more information, please see the Advisory Group Summary and the associated Process Review Diagram.

The advisory group also suggested that the costs of the Portland Building renovation project should include renovating the interior systems and environment while the exterior envelope and structure are under construction. As a result of this suggestion, the City is currently working with FFA Architecture to extend the building assessment work to include a review of the interior systems and environment, with conceptual design and cost estimates. Please see FFA Contract: Amendment 2. This work is expected to be complete in March 2015.

As noted in the memo "Process to Date", Facilities Services has prepared a budget decision package for consideration in the FY 2015-16 budget. The package proposes reassigning a portion of the Portland Builidng major maintenance (MM) funds to bring on a construction manager general contractor (CMGC) to consult with the design team to develop a Guaranteed Maximum Price (GMP) by the end of FY 2015-16. The development of design documents in coordination with a general contractor will provide critical information regarding logistics and cost of construction. Included in that work will be determining if the building can be renovated while partially occupied or if total vacancy is the best option for construction. This piece of information is critical to the overall cost of the project since it is estimated $28M will need to be budgeted for space lease and temporary move costs if all occupants are moved out for a two-year construction duration.

Once design reaches approximately 75 percent, the CMGC will be able to provide the proposed construction contract cost (GMP). With the current aggressive schedule, this is estimated to occur by June 2016. Facilities will then review total project costs, logistical considerations, and proposed next steps with Council. If the decision is made to move forward with construction, the GMP can be used as the basis of negotiations for a construction contract with the CMGC. Once a construction contract is approved by Council, an aggressive construction schedule will lead to project completion by spring 2018. See TPB Draft Schedue 12/5/14

Project documents are provided on this website. Please note the dates on the documents as costs and schedules may have changed.