However, there have been some inaccurate impressions in recent media coverage about the price and process dispute between Fiore-Irgens and the City of Madison. So I’d like to set that record straight. Here are the facts:
1. Fiore-Irgens never raised its price on the grey-box library shell. In fact, we reduced it in August 2009 from the original price of $27 million to a then-current price of $23.9 million. We stood by this price through the Common Council deliberations and after.
2. Fiore-Irgens never changed the deal. In December 2009, we prepared a discussion memorandum on “Project Issues and Development Roles/ Responsibilities” in which we recommended an alternative delivery approach to the City that would bring process efficiencies and cost savings to the City to help assure completion within the budget. Here’s how we described our position:
The RFP issued by the City of Madison in September 2008 anticipated that a Library Condo Unit would be finished to “grey box” specifications, then sold to the City. The design and build out of the Library Condo Unit would be the responsibility of the City and be subject to the city’s Public Works Contracting Ordinances. Fiore-Irgens remains ready, willing and able to carry-out this request for turn-key development of “grey-box” building shell. However, given budget constraints, timing concerns and the political sensitivity of this project, Fiore-Irgens recommends that a developer services approach be taken, in which the City undertakes the entire Project as Owner and engages Fiore-Irgens as “development manager” to provide services that will mitigate normal development cost risks.This recommendation was never explored by City Staff, who instead determined that they wanted to undertake the public works approach without our development team.
3. Fiore-Irgens never demanded $2.7 million for services rendered to-date. We did attempt to accommodate the City by offering to sell the site and project work. However, we were very clear that this price must include some compensation to our team for the many thousands of hours that we spent on bringing the project to this point. We asked for $900,000 for development services to-date.