In 2018, Garden Grove residents approved a ballot measure, “Measure O,” that increased sales tax by one percent to fund infrastructure and public safety.  Consistent with the Measure O funding priorities, staff engaged the architectural and engineering firm Dewberry to inspect, analyze, and develop a facility needs assessment for the Garden Grove Police Department (GGPD) with the intention of creating a road map for more efficient and effective operations.  The report was completed in January 2020 and concluded that the current Police buildings are outdated, poorly configured, and have inefficient building systems that are at the end of their planned useful life.  Further, the facilities do not support current staffing levels and lack any opportunity for future growth.  Lastly, the report recommended the City prioritize the construction of a new public safety building and parking structure that would unify operations from the current five locations into one facility, improve productivity and address needs of city residents today and into the future.

In July 2022, the City retained Project Finance Advisory, Limited (PFAL) to review the feasibility of developing a new Public Safety Facility (PSF) consistent with the finding in the Dewberry report.  Their initial work focused on reviewing technical data, financial impacts, and the physical environment within the Civic Center area.  Looking at cost implications of different sites and program alternatives, PFAL concluded that the recommendation in the Dewberry report to construct a new PSF would be more cost effective than upgrading the existing facilities.  This was based on a number of factors including the benefit of cost savings by keeping Police operations in current facilities while the new Project was constructed.  The project phasing would focus on constructing a new PSF and parking garage, then demolishing the old building, and constructing a new re-envisioned Civic Center Park (the Park) on what will be the decommissioned GGPD facility.  PFAL further concluded the corner of Euclid Street and Acacia Parkway was the best site for the PSF.       

In January 2023, PFAL’s scope was expanded to assist in developing a design-build-finance procurement structure for the Project.  To align project priorities, key design principles and outcomes were embraced.  These priorities include:

With the basic PSF program requirements established, the team, comprised of City interdepartmental staff and PFAL, advanced outreach to gauge developer interest.  Preliminary project information was shared at industry trade shows and a survey was distributed via a City Request for Information.  The feedback was positive, and it was evident the development community was very interested in the Project. 

With better understanding of the marketplace, the team concentrated on preparing the specifications document for developer selection.  Site tours of other new police stations were conducted to hear directly from users what worked best in their facilities and what could be improved.  The team worked with HOK Architects to prepare a program validation from the work initiated by Dewberry.  HOK also prepared initial massing studies to show how new facilities could fit within the site.  The finalized specifications (program requirements, site massing, mechanical system standards, etc.) established the “basis-of-design” for the Project.

In July 2023, the City released a Request for Qualifications (RFQ) seeking proposals from developers who could facilitate the design, construction, and financing of the proposed project.  Six developers responded to the RFQ, and after a thorough review of proposals and in-person interviews, the team of Edgemoor (Developer)/AC Martin (Architect)/Clark Construction (Contractor) was selected.  In September 2023, City Council approved a six-month Exclusive Negotiation Agreement (ENA) with Edgemoor to prepare design drawings, update pricing, outline a legal framework and structure a financial package. 

With the Civic Center Revitalization Project Team fully assembled, a project kick-off meeting was held in October 2023, to introduce the Edgemoor Project Team, including different specialty consultants (public safety design, lighting design, park design, building system design, civil engineering design, etc.)  The meeting detailed what to expect during the design development phase of the Project and desired outcome goals during the ENA period.  To focus efforts, the workload and various team members were divided into five work streams (Design & Construction; Entitlements, Permitting, & Engagement; Project Financing; Commercial/Legal; Building Commissioning).  Over the past six months, a significant amount of progress has been achieved.  Provided is a detailed summary of the PSF activities and significant milestones to date:

Design & Construction Work Stream – Initial work focused on reviewing site conditions and preparing different massing studies. That effort was narrowed into two conceptual plans, then into the final base design.  With the base design accomplished, the team worked to optimize the program and workgroup adjacencies.  Working closely with the GGPD team, different program options were explored and refined.  Each iteration improved work efficiency within GGPD operations and improved building layout (location of elevators, mechanical systems, technology spaces, etc.)  Concurrently, building façade options were explored with a focus on achieving a “statement building”, a key design principle identified.  While ongoing refinement is expected, the team feels confident in meeting the intended design principles.  When the final design is complete, the process will transition to preparing construction drawings.  It is estimated the construction drawings will be completed this summer.  The building is currently designed at 102,300 sf and connects to a four-level parking garage.    

Entitlements, Permitting & Engagement Work Stream -

Environmental Review - The City, and its consultant, Michael Baker International, prepared an Initial Study and Mitigated Negative Declaration (MND), along with an associated Mitigation Monitoring and Reporting Program (MMRP), in accordance with the California Environmental Quality Act (CEQA) to analyze the potential environmental impacts of the proposed Project.  The IS/MND concludes that the proposed Project will have no, or a less than significant, impact on all relevant environmental factors, provided certain specified mitigation measures are incorporated (examples of required mitigation measures include, but are not limited to: procedures for inadvertent discovery of tribal cultural resources found during ground-disturbing activities, and preparing a construction traffic management plan).  A link to the digital copy of the IS/MND and MMRP are available on the City’s project website (https://ggcity.org/civic-center) under the “Resources” tab.

In December 2023, the Planning Commission held a public hearing, received comments, and adopted Resolution No. 6075-23 approving Conditional Use Permit No. CUP-250-2023, detailing certain conditions of approval required for use of the PSF.  Action was also taken for the adopted Resolution No. 6080-23 adopting the MND and MMRP. 

In addition to meeting CEQA requirements, the City hired the firm Dudek (Biologist) to assist with the process of draining and removing the pond in the existing Civic Center Park.  The pond removal is necessary as it is located within the new PSF footprint.  Dudek completed preparation of a Wildlife Management Plan that details the approach for removal and relocation of the different species that exist in the pond.  Dudek Biologists will be on-site supervising the entire wildlife removal process and to ensure proper treatment of the wildlife, and transportation of aquatic wildlife to a rescue facility.  The Wildlife Management Plan is available on the City’s project website (https://ggcity.org/civic-center) under the “Resources” tab.

Community Outreach - Public engagement and community outreach is an important component of the Project.  Different venues were used as touchpoints with the community to share information about the Project and seek input, especially about priorities for the re-envisioned Civic Center Park.  Supporting this effort, the City contracted with Placeworks to create a holistic approach for engagement with residents and key stakeholders.  Through a collaborative approach, connection with approximately 3,000 individuals within the community, including numerous online interactions was achieved.  Some outreach examples include:

• June 2022: The City hosted in-person and virtual open houses, respectively, to present details of the Project and to elicit feedback.
• August 2022: The City launched an online survey to provide additional opportunities for the community to learn about the project and to share their comments and ideas.
• Spring 2023: Created Project webpage offering up to date project information (https://ggcity.org/civic-center).
• Summer 2023: City Staff presented information and gathered feedback cards at booths across multiple community events throughout the City.
• December 2023: The City hosted a Developer Open House, allowing community members to meet the development team.
• March 2024: The City hosted a Small Business Coordination Event, connecting with businesses interested in opportunities to participate in the Project with over 75 attendees.

The community response has been very positive with nearly unanimous support of the new PSF.  For future park amenities, flexible programming, shade and landscaping, safety, and walking paths/trails emerged as top priorities, informing the Design team on elements to include in the redesigned Park (Attachment No. 1 provides further details on community engagement).  

Project Financing Work Stream – During the ENA period, staff worked with Edgemoor to review different financing strategies.  Five potential options were proposed and evaluated, including General Obligation Bonds, City issued Lease Revenue Bonds, Conduit Lease Revenue Bonds, Certificates of Participation, and Project Certificate Revenue Bonds. These evaluations were based on the cost of issuance, timeline, and the ongoing administrative requirements.  To assist in the evaluation, staff engaged the City’s municipal advisor, Fieldman Rolapp & Associates, as well as its bond counsel, Stradling.  After a comprehensive review, it was concluded that given the City’s strong credit rating, sufficient cash on hand, aggressive project schedule, and the current market condition, it is most cost effective to finance the Project through debt issued by the Garden Grove Public Financing Authority, in the form of lease revenue bonds. 

In February 2024, the City conducted a RFP and selected Stifel Public Finance as the bond underwriter.  Financing documents are progressing, and it is anticipated that the final documents including a preliminary official statement, ground lease and lease agreement, bond indenture and other related financing and legal documents will be presented to the City Council for approval in April 2024.  The bonds are anticipated to be issued in early June 2024.  Additional information regarding project budget is provided in the “Financial Impact” section.      

Commercial/Legal Work Stream – The City and Edgemoor have agreed on terms and finalized the Project Agreement (PA), subject to Council approval (Attachment No. 2).  The PA is the primary document that details responsibilities for the design, construction, and financing of the Civic Center Revitalization Project.  The PA term will run for two years after the final completion of the Park, to ensure all warranties and pertinent responsibilities are met.  The current master schedule anticipates the Park will be completed in May 2027.  Major components of the PA include:

• Edgemoor is responsible for designing and building a new PSF, a new parking structure, and a new reconfigured Civic Center Park of approximately 2.7-acres.
• The parties agree to work collectively to finalize the project design, which is anticipated in May 2023.  The final construction scope will be based on City approved construction drawings meeting all required codes pertinent to the Project.
• The PSF will be sustainable and designed and certified at “LEED Silver” or higher.
• The PSF and parking structure will function as “Essential Service Facilities” and meet standards of a category four building.
• The Project will be delivered for a guaranteed maximum price that is within the affordability limit of $152 million and subject to “open book” cost review to ensure market pricing.  A budget cost review will occur after completion of construction drawings to ensure pricing is set at values based on final design.
• The City is responsible for securing financing for the project and will pay Edgemoor for its work monthly.  If for any reason the PA is terminated, the City will owe Edgemoor for the value of work completed and will own all design documents, materials, improvements, etc. completed to that point.
• Construction of the project will proceed under a Project Labor Agreement with the Building Trades that prioritizes local hires.  

Building Commissioning Work Stream – An important component of the Project relates to a cost-effective building mechanical system with long-term reliable operability. Edgemoor has hired a commissioning agent, Altura, to work hand in hand with the Mechanical, Electrical & Plumbing (MEP) designers (GLUMAC) throughout the Project.  Their work implemented in three phases:  Design, Construction, and Warranty.

During the design phase, Altura will review the design packages, specifications, and bases of design to ensure compliance with project goals, LEED requirements, and industry best practices.  They will also support decision-making to ensure lifecycle costs are being considered along with all building systems decisions.  They will also lead the review of Building Automated System (BAS) sequences of operation, to ensure early coordination of controls processes.

During Construction, Altura will review all MEP and BAS submittals to ensure the project requirements are met and enforced.  Once the systems are installed, Altura will work with the MEP trades to ensure systems are ready to be tested and will follow testing procedures developed by Altura.  They will be responsible for witnessing and documenting all testing procedures and will track all commissioning issues until resolution.  After commissioning is completed, Altura will ensure all materials are delivered and provide all relevant training to City staff. 

During the warranty period, Altura will continue to monitor the building in an enhanced commissioning effort. Leveraging analytics and working with key facilities stakeholders, they will continue to optimize the building performance.  This will also verify the building systems quality for the enhanced commissioning LEED points and will be a key component to receiving LEED certification at a level of “LEED Silver” or higher.

The Project is estimated to cost $152 million.  This is being funded from a combination of cash on hand and bond proceeds.  A total of $12 million is set aside from the General Fund and $140 million will be financed through the issuance of tax-exempt Lease Revenue Bonds.  Pre-development expenses are funded as part of the ENA budget of $3 million and are not included in the planned project budget of $152 million.

On November 14, 2023, the City Council adopted Resolution 9833-23 directing the City Manager to take actions necessary to finance the Project through the issuance of Lease Revenue Bonds with a par amount not to exceed $140 million.  Bonds will be issued through the Garden Grove Financing Authority.  Annual debt service is estimated to be less than $9 million and will be paid by the general revenues from the City’s General Fund in the form of lease payments.

Ancillary cost for issuing the bonds, including financial and legal consultants will be paid from proceeds of the debt. The issuance of the debt will not result in additional taxes or fees to our taxpayers.

Staff is further proposing to enter into a short-term lease with Edgemoor/Clark Construction for occupancy of existing vacant space within the City owned facility at 11277 Garden Grove Blvd. (Purcell) for construction related activities in connection with the Project to minimize the need for construction trailers.

It is recommended that the City Council:

• Approve the Project Agreement and authorize the City Manager to execute the Project Agreement by and between the City of Garden Grove and Edgemoor Garden Grove Civic Partners LLC, in an amount not to exceed $152 million, and to make minor modifications as appropriate thereto, on behalf of the City; and 
• Direct the City Manager to finalize documents necessary to issue lease revenue bonds with a par amount of $140 million consistent with Resolution 9833-23 approved on November 14, 2023, and return to City Council for final approval and authorization to issue bonds. 
• Authorize the City Manager to negotiate and execute a short-term lease with Edgemoor/Clark Construction for occupancy of existing vacant space within the City owned facility at 11277 Garden Grove Blvd. (Purcell) for construction related activities in connection with the Civic Center Revitalization Project.

By: Craig Beck, Consultant and Grace Kim, Project Manager