Alexandria City Council reaches agreement with company overseeing ice rink expansion
RJM Construction of Golden Valley will receive a fee of $629,516 as construction manager.
At its meeting Monday, July 11, the Alexandria City Council approved an agreement with RJM Construction – the company that will oversee a $11.2 million project to build a third sheet of ice at the Runestone Community Center.
RJM, based in Golden Valley, will provide construction manager “at risk” services for the expansion.
Under “at risk” agreements, the construction manager takes responsibility for the project instead of a general contractor or other parties. The construction managers often work for a firm or another company and are hired by the owner to oversee the project and provide consulting to the owner, according to the website, eSUB Construction Management Software.
Once construction managers are contracted by the owner, they help with engineering, as well as construction cost estimating and checking "constructability" or how the building will mesh with design. They will also set a maximum price of the project – a guaranteed number they’ll stay below during the project.
If the final cost of the ice arena project is less than the maximum guaranteed price, 75% of the savings will be returned to the city.
Under the 69-page agreement, RJM Construction will receive a fee of $629,516, based on a 10-month construction timeline and an $11.2 million budget.
If the budget increases, the percentage fee paid to RJM, 1.5%, will not change but the total amount of the construction fee would increase.
RJM will receive a flat fee of $24,834 for pre-construction and bidding services.
The Minnesota Legislature included the RCC expansion in its bonding bill. The state agreed to provide roughly half the cost, $5.6 million.
The city, likely using tax abatement bonds and private funds raised by groups that use the facility, is expected to cover the rest of the cost.
In addition to adding a third rink to meet the surging demand for more ice time, the expansion will allow the RCC to host dry-floor events in the expansion area, which will free up ice arenas for skating and curling.
The project is expected to have an economic impact by drawing more people into town for hockey tournaments and events, according to Explore Alexandria.
The project may also include the renovation of existing spaces.