The Enid News and Eagle, Enid, OK

Local news

June 2, 2011

Injunction puts Renaissance Project on hold

ENID — A judge issued a preliminary injunction Thursday in a lawsuit against the city of Enid, preventing the use of a construction manager at-risk contract for the Enid Renaissance Project.

The injunction will remain while Enid developer Bob Berry’s lawsuit against the city is pending.

District Judge Paul Woodward issued the injunction soon after a hearing on a petition filed by Berry to stop the fast-tracking of the project began Thursday afternoon. Woodward also ordered Berry to post a $200,000 surety bond to protect the city from any damages sustained from the issuance of the injunction.

Thursday’s hearing was the fourth such hearing since Berry, along with his son, Eli, filed a motion May 3 seeking a temporary injunction against the city.

“We will continue keeping on going,” Bob Berry said, after the hearing. “I feel pretty good about the fast-tracking. I feel the wheels are off that wagon.”

When the case resumes Sept. 29 and 30, the judge will hear the other part of Berry’s lawsuit, which is the requirement of a site plan for the $20 million Enid Renaissance Project. The centerpiece of the project is a new events center downtown. The plan also calls for renovation of Convention Hall.

“Hopefully, we’ll get the public to get to have a hearing on it before the MAPC,” Berry said.

Attorney Mike Bigheart, who represent the Berrys, said it was a “good news, bad news” situation.

“The judge ordered the injunction on the fact the construction management delivery method was not appropriate in this instance,” he said. “He did not hear our claim that a site plan was required, basically because he believed it was premature.”

Thursday’s hearing was more about what bond Berry would be required to post to protect the city.

“It’s a difficult bond for an individual,” Bigheart said. “We’re making arrangements right now to try and get that set up. It’s not an easy deal to do.”

City attorney Andrea Springer said not using the construction manger at risk-plan would increase the costs of the project 2 to 4 percent.

She said the injunction only limits the use of the construction delivery method, and city officials will be exploring various options on how to proceed in the best interest of the community.

Earlier this year, the city entered into a contract for Flintco Constructive Solutions LLC to act as construction manager at-risk for the Enid Renaissance Project. The contract included a guaranteed maximum price for the first phase of the project, and included a provision that any additional expense would be borne by Flintco.

Thursday’s arguments and testimony centered on the amount of bond Berry would have to secure to cover losses for the city of Enid, if the Berrys do not win at the trial scheduled for late-September.

Margaret Love, attorney for the city, said testimony from three witnesses showed the city could face losses of up to $2 million by switching from an at-risk construction management plant to a design, bid and build plan of construction.

Construction Manager Scott Jones, with Convergence Design, testified by changing from the construction manager at-risk delivery system, Enid Renaissance Project could be extended up to six months. Jones also testified the change could lead to further design changes in the plan and the need to request additional funds.

Bigheart asked Jones if in this case did he know which way would be cheaper.

“No,” Jones replied. “We have no way to tell how the bids will come in.”

Carter and Associates Senior Vice President Daniel Jardine also testified about the costs to the project by changing construction delivery methods.

Carter and Associates has a contract with the city on the Enid Renaissance Project. Love asked Jardine if costs could increase 2 to 5 percent if the construction management at-risk delivery method was not used for the $20 million project.

“If not more, yes,” he said. He also testified the change would delay the completion date of the project.

City Planning Administrator Chris Bauer testified $25,000 already has been paid to Flintco for delivery of services and other expenses.

Bigheart asked Bauer if the contract with Flintco stated the $25,000 be paid once a notice to proceed had been issued. Bauer said it did.

Bigheart asked if any such notice has been issued.

“No, it hasn’t,” Bauer said.

Love asked Woodward to require Bob Berry to provide a $550,000 bond for possible losses the city could incur. Bigheart asked the judge to require only $25,000 to $50,000 bond because the Berrys specifically excluded items from their injunction to not delay the plans for the project.

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