The Columbia-Adair County Economic Development Authority has accepted a $1.76 million bid to construct a speculative industrial building at Green River Commerce Park, advancing a project aimed at attracting new industries and jobs to Adair County.
The EDA Board met Friday, Oct. 9, and accepted the lowest bid of $1,760,869 from Branscum Construction Co. of Russell Springs. The accepted bid includes an alternative that eliminates the planned office portion of the building.
The authority received 14 bids during a bid opening Tuesday, Oct. 6, with 13 bidder representatives in attendance. Base bids ranged from $1,998,991 to $3,412,000. With the deduction for Alternative No. 1, bids ranged from $1,760,869 to $3,200,348.
The project calls for a 38,500-square-foot, single-story, pre-engineered steel-sided shell building on the Build Ready Pad on Lot 3 in Green River Commerce Park. The accepted alternative removes the additional office space.
According to the EDA, engineers recommended including the alternative in the bidding process in case bids exceeded the available budget and additional funding could not be secured.
The preliminary project cost estimate was $1.979 million when the authority applied for funding through the Kentucky Product Development Initiative, with a construction budget of $1.684 million.
The EDA cited increases in steel prices, tariffs and fuel costs as factors contributing to higher construction costs since the project began.
The project is supported by a $1,720,869.57 KPDI grant, covering 85% of the cost, and a $258,130.43 local match, covering the remaining 15%. The local match is provided through Rural Development Agency Assistance Program funding from the Adair County Fiscal Court.
Before construction can begin, the plans must be approved by the Kentucky Department of Housing, Buildings and Construction, and the contractor must obtain a performance bond. Once those requirements are met, the EDA will issue a notice to proceed, giving the contractor 300 days to complete the project.
The EDA Board said the speculative building will give the county another tool to compete for industries seeking to locate or expand their operations in Kentucky and create jobs in Adair County.
A speculative building is constructed without a tenant already committed to occupy it, allowing economic development officials to market the space to prospective businesses.
The EDA Board thanked its engineers, MSE of Kentucky Inc.; consultant Heather Spoon; the Kentucky Cabinet for Economic Development; the KPDI Board; state legislators; the Adair County Fiscal Court and judge-executive's office; Branscum Construction Co.; and others who helped advance the project.
