Village Board considers a resolution approving a design-build contract for its retail incubator shops program
HUNTLEY — At the upcoming March 27 Village Board meeting, trustees will discuss a motion to officially approve a design-build contract for design and construction services for the Retail Incubator Shops program. According to village staff, the Retail Incubator Shops program represents a strategic initiative by Huntley to support small businesses and local entrepreneurship. This project is designed to provide an accessible and cost-effective retail space for emerging businesses, fostering economic growth and enhancing the vibrancy of the downtown area.
To establish the incubator shops, the village secured a Small Business Administration (SBA) Grant for $974,843 (rounded up to $975,000 in approved budgets) via a Community Project appropriation through the U.S. Congressional office of Representative Lauren Underwood. The grant funds have since been received and deposited in a village account. Per the SBA agreement, Huntley must spend the funds by Dec. 31.
Back on Aug. 22, 2024, the Village Board approved a resolution to enter a job order contract with F.H. Paschen for architectural and site design services for the retail incubator shops project. Work performed under the job order contract included: site layout planning, design concept development, renderings for the exterior shops, architectural assessment and structural design considerations of the Hackett House, and cost estimating.
In December of 2024, a site plan and renderings were presented to the Village Board to which they reached a consensus to proceed with the designs as presented. Under the project timeline, F.H. Paschen then provided a construction cost estimate of over $1.9 million, which far exceeded the project budget. In response to the cost estimate, village staff informed F.H. Paschen that Huntley would not be utilizing their construction services for this project.
The village then proceeded to explore other options for construction which led staff in proposing to utilize the design-build option and to enter two contracts with Wm. Tonyan and Sons, Inc. for a total amount of $838,327 ($791,285 for the external shops and $47,042 for the Hackett House).
According to the March 27 Village Board meeting agenda packet, the village’s Purchasing Manual includes design-build as an option for completing construction projects. The design-build contract delivery method allows Huntley more control over cost (design-to-budget) and design elements that meet specific objectives that can be difficult to predict or capture with the traditional approach (design-bid-build) for projects with varying complexity.
When the Purchasing Manual was amended in 2024 to add the design-build contract delivery method, the Retail Incubator Shops were identified as a potential project that might be best suited for this type of contract. The village has had a successful experience with Wm. Tonyan and Sons, Inc. with the second-floor buildout of the Huntley Police Station that now houses the investigations division of the department.
The design-build contract with Wm. Tonyan and Sons, Inc. will include final architectural and civil engineering plans utilizing the renderings and site design prepared by F.H. Paschen, electric utility enhancements, and the construction of six external modular incubator retail shops.
A second design-build contract is proposed for structural design and modifications to the flooring in the Hackett House needed due to the change from office to retail use as was identified by Paschen’s assessment.
Huntley’s Public Works and Engineering Department/Building and Grounds Division will manage separate contracts for the buildout of three shop spaces in the Hackett House, the north and east porch decking replacement, which was previously budgeted at $14,000 in the Fiscal Year 2024 budget and work deferred, and the addition of one bathroom for a total of two bathrooms. A second restroom is needed to comply with building code requirements.
Village staff noted that the Public Works and Engineering Department will self-perform various infrastructure improvements. This includes expanding the parking lot through excavation and hauling excavated materials, asphalt binder installation, and traffic control when needed. Parking lot resurfacing, signage, furnishings, tree removals and plantings will be managed through separate purchase orders.
Project completion is anticipated by Oct. 1.
