On Tuesday night, Lowell City Council met with members of the volunteer Showboat Committee to consider bids for completion of work on the new boat. They also discussed at length how to fund the remainder of the project. Mayor Mike DeVore and Councilmember Marty Chambers were absent for the meeting, which was held at Creekside Park.
Wolverine Selected as General Contractor
While Moran Iron Works is building the boat itself, a general contractor still needed to be selected to complete the interior. Three bids were received for the project:
- Pel Construction: $1,858,488
- AJ Veneklasen: $1,347,116
- Wolverine Building Group: $1,340,483
However, both AJ Veneklasen and Wolverine bid with the assumption they would be working on dry land when, in fact, the boat will be in the water during construction. All three bidders were also asked to provide clarification on HVAC and building specifications. Two responded with revised bids:
- AJ Veneklasen: $1,412,820
- Wolverine Building Group: $1,435,638.81
Both contractors were invited to meet with city representatives to discuss the project. It was learned at this time that AJ Veneklasen did not include a requested keel cooler in their bid. This specialized closed loop cooling system relies on river water rather than condensers to provide air conditioning. The city also learned that Wolverine did not list a requested snowmelt alternative as a separate item in their bid.
After the meetings, a member of the Showboat Committee informed City Manager Mike Burns that he previously worked for Progressive Heating and Cooling, the HVAC subcontractor listed in the Wolverine bid. He did not think the company was capable of performing the required work. The exact concerns about the company were not shared during Tuesday’s meeting, but Burns said additional questions were sent to both HVAC subcontractors. Each responded to the satisfaction of the mechanical engineer Ken Reigler who has been assisting the city with this project.
When adjustments were made, the final bids came in as follows:
- AJ Veneklasen: $1,404,277
- Wolverine Building Group: $1,414,611.57
In the end, the Showboat Committee voted to recommend Lowell City Council select Wolverine Building Group for the job.
“It was a tough decision, and not everyone agreed it was the way to go,” said Liz Baker, executive director of the Lowell Area Chamber of Commerce and a member of the Showboat Committee. However, Wolverine was planning to use a number of local subcontractors which swayed the decision in its direction.
Burns also recommended that the council approve Wolverine, saying AJ Veneklasen’s bid should be rejected because it did not include the keel cooler initially.
Bill Lee, a vice president with AJ Veneklasen, was present for the meeting and said he wished the company had been told earlier that the absence of the cooler would be grounds for rejecting their bid. “[I’m] just surprised that something wasn’t said in the meeting,” he said.
While two members of the council were absent, the remaining members agreed to vote on the contract that night, noting one member would have to recuse himself anyway. This presumably referred to Chambers whose brother, Jim Chambers, is expected to be the project manager for Wolverine Building Group.
The council unanimously voted to approve Wolverine Building Group as the general contractor for the interior work on the new Showboat.
Loan for Showboat Work Debated
The conversation then turned to how to pay for the approximately $865,000 that Burns estimates is still needed to complete work on the boat. This was a continuation of a discussion from the previous city council meeting.
The Showboat Committee would like the city to take out a loan to complete the work. The loan would be paid back by the committee fundraising efforts and is not expected to require any taxpayer dollars.
“Now, I’m not going to tell you there is no risk,” Burns said. Should fundraising efforts fall short, the city would be liable to pay off any balance on its own. However, Burns believed the $865,000 could be reduced relatively quickly. He noted that a $50,000 donation was expected this week and another $50,000 had already been pledged as well.
Showboat Committee member Mark Mundt was even more optimistic, noting that once anticipated grant funds and an expected large corporate donation were received, the committee would only need to raise another $300,000 over the life of the loan. What’s more, the Lowell Area Chamber of Commerce has a business plan that anticipates putting $40,000 toward the loan debt each year for a total of $280,000 during a seven-year period.
Mundt did not think it would be difficult to raise the remaining amount. “We haven’t even asked the community yet,” he said, noting that the Showboat Committee was waiting for a final cost before beginning to fundraise.
“In my opinion, it would have been better to start fundraising earlier,” councilmember Greg Canfield said.
Councilmembers were also skeptical of the revenue projections from the chamber and wondered whether costs could be cut on some features such as carpet. Baker noted that for the revenue projections, the city recommended she look at Terra Square in Hudsonville, and she used their rates as a guide.
“If we want to have a venue that’s going to attract top dollar, I don’t think we want to nickel and dime it,” Mundt said.
“This high end facility that doesn’t have bathrooms,” Canfield replied. The plans for the Showboat don’t include running water but call for a building on the Riverwalk to be renovated to provide facilities to those who rent the Showboat.
Both Mundt and Baker pointed out that barns are popular, and often expensive, wedding venues, and many of those have restrooms in a separate building.
City resident Nancy Raymor said she was surprised that the city started the project before all the money was raised.
Burns noted the city initially thought the state grants it received would cover the entire cost. It was also required by the state to use the money within a certain period of time or lose the funds.
Councilmember Cliff Yankovich said he asked on social media and the response he received from city residents was to not take out the loan. “If we have to vote on Monday [at the next city council meeting], I’m a no because that’s when I’m hearing,” he said. Yankovich added that he wished more residents were at the meeting to share their opinion.
Mundt chimed in that he is a city resident. “Cliff, I voted for you, and I am telling you to vote yes,” he said.
Councilmember Jim Salzwedel noted the council just approved the contract for the work. “How are we going to pay them?” he asked. “I would be a little concerned if I am the general contractor.”
The council discussed the possibility of delaying the vote on the loan while a portion of the money is raised. They also inquired into whether part of the work could be done now with the cash on-hand, and then the project could be completed after additional funds were raised. However, Reigler said that would likely increase construction costs. It was also questioned whether the contractor would be agreeable to such an arrangement.
Councilmembers agreed to wait until DeVore and Chambers were in attendance before taking a vote, and this issue will presumably be on the agenda for the council’s next meeting. That meeting will take place at 7pm on August 17. Its location has not been announced yet.
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