Portland is pushing ahead with expensive plans to renovate its administrative headquarters, picking a contractor and architectural firm to carry out the reconstruction of downtown's Portland Building.
In a pivotal report passed Wednesday by the City Council, the contract with Howard S. Wright Construction and architects DLR Group sets a guaranteed maximum price of $140 million for design and construction work. The city has said the total cost for the project, which will be completed by 2020, won't exceed $195 million.
The remaining $55 million could be used for staff costs and to lease office space for some 1,300 city employees who might have to move out during renovations meant to solve problems with water infiltration and keep the building standing in an earthquake.
The plan is to fund the reconstruction through revenue bonds, a move expected to be approved next week.
The city will know by the end of October whether officials must relocate all or some employees.
"We still need to calculate the cost of staying in or leaving," said Fred Miller, the city's chief administrative officer, "and if you could leave people in the building, how disruptive is it in the workplace?"
Howard S. Wright, which beat out two other firms, has experience with similar projects, company representatives said Wednesday. It worked on the Edith Green-Wendell Wyatt Federal Building down the street from the Portland Building, finishing the project 10 months ahead of schedule.
"They know what they're doing," Miller said. "We're very happy with that."
The council also set aside $1 million, or about 1 percent of hard construction costs, to provide opportunities for minority and women contractors.
"Let's be clear about what the council is committed to: using a portion of the cost to rehabilitate this building to create opportunities for people who have been left behind in the construction trade," Commissioner Nick Fish said.
Miller said he briefed Mayor-elect Ted Wheeler on the project last Friday.
"He wants to be comfortable with the numbers, and I think he will be," Miller said.
Wheeler is on a family vacation, campaign manager Michael Cox said, and unable to comment.
Some have concerns with the city's plans. John Oh, who has owned the Portlandia Cafe on the building's first floor since 1995, worries his business won't survive if employees are moved out.
The city has promised vendors 12 months' notice before the need to vacate, rent forgiveness and the right of first refusal for space in the new layout.
But Oh asked the council to also consider providing compensation for moving, marketing and establishing new businesses in other locations.
"While we appreciate these concessions, this does not cover the impact to our business or our futures," Oh told the council. "We have families that we support and who rely on our income."
- Talia Richman
trichman@oregonian.com
@TaliRichman