NAMPA — The Nampa Development Corporation unanimously approved a design build agreement for the new Nampa library Wednesday.

The agreement with Gardner Company sets a budget of $16,447,000, which is the guaranteed maximum price of the building. That cost is broken into two components, a design phase and a construction phase, Beth Ineck, assistant director of economic development, said. The contract allows for the NDC to back out if the cost exceeds what was agreed upon.

“If we get to the point where we just can’t come to an agreement between what’s included in this guaranteed maximum price and what the construction documents represent between us and Gardner Company then at that point we can back out of the contract,” she said.

If the NDC backs out for that reason, it will lose the fees paid for the design. There is a $500,000 penalty if the NDC backs out of the contract for no reason.

Upon approving the contract, the NDC made its first payment of just over $400,000 to Gardner Company, which is about half of the total design and engineering cost. The fee represents the work Gardner Company has done since it was hired by the NDC last February, Ineck said.

After some discussion on the contract, Commissioner Ron Van Auker said he has reviewed many construction contracts and the one approved Wednesday gives the NDC the most protection. He commended owners representative Ken Fisher for his work on it.

Next the NDC will consider approving a preliminary official statement Jan. 23 and then the bond resolution and purchase agreement to fund the project Feb. 6 in special meetings. If those items are approved and everything goes as planned, the bond will close in March and construction could begin in April, Ineck said.

The $18.6 million bond for the project would go through fiscal year 2031. The NDC has a $1.6 million cash reserve for the bond that will be held in a debt service reserve fund.

The NDC also approved a sewer upgrade in a 5-2 vote for the Library Square block. The upgrade is projected to cost $300,000. The city of Nampa will take bids on and complete the upgrade and the NDC will reimburse the city.

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