Staff is requesting Board authorization to amend the agreement with Logic Builders for additional site improvements and building renovation, not to exceed $695,000, related to Project Caboose/Train Depot and concrete work, along with the related budget amendment. This brings the New Total Project Cost to $3,795,000, driven by five new cost items: culverts under the driveway, a lift station and water/wastewater line increase, a fire sprinkler system to protect the asset, concrete work, and permanent power design and wire pull and temp power, totaling $690,463.37 before rounding. The City opted not to fund the fire sprinkler system despite the Depot ultimately being a City-owned asset, leaving that cost to the EDC. Of the $695,000 requested, $469,613.37 covers City-driven additions (design contribution and joint commission additions) that the City will reimburse to the EDC, leaving a net cost to the EDC of $220,850. Staff recommends approval of both the contract amendment and the corresponding $695,000 budget amendment to keep the project on schedule and fully funded through completion.

The Depot on Main (Project Caboose) is a historic depot renovation led by Logic Builders, with a previously authorized EDC budget of $3,100,000 built up through prior amendments dating back to February 2025. Since that authorization, a joint meeting with the City identified additional scope, including fencing along the railroad and electric outlets for vendors, along with new construction requirements for culverts under the driveway, a lift station and water/wastewater line increase, a fire sprinkler system, concrete work, and permanent power design and wire pull and temp power. The City has agreed to contribute $400,000 toward design and to cost-share the joint commission identified additions, but declined to fund the fire sprinkler system despite the Depot ultimately being a City-owned asset. These combined additions bring the New Total Project Cost to $3,795,000, requiring a budget amendment and a corresponding increase to the Logic Builders agreement.

The additional scope identified through the joint meeting with the City, including fencing and vendor electric outlets, reflects coordination between the EDC and City to ensure Depot on Main serves both organizations' needs before construction closes out. The fire sprinkler system and lift station upgrade protect the long-term value of an asset that will ultimately belong to the City, making this investment appropriate even though the City declined to fund the sprinkler directly. The concrete work supports placemaking in Buda City Park, reinforcing the Depot's role as a destination and consistent with the project's broader downtown revitalization goals. The scope added since the prior authorization is proportionate to the project's overall investment, and the City's cost-sharing on its own requested additions keeps the EDC's exposure limited to genuinely new costs.

The requested budget amendment totals $695,000, rounded up from a calculated $690,463.37 in identified new costs. Of that amount, $469,613.37 covers City-driven additions, including the design contribution and joint commission additions, which the City will reimburse to the EDC. The remaining $220,850 represents new project costs not covered by the City, including culverts, the lift station and water/wastewater line increase, the fire sprinkler system, concrete work, and permanent power design and wire pull and temp power. The EDC must authorize the full $695,000 upfront to cover contractor costs as they come due, ahead of receiving the City's reimbursement. This amendment brings the New Total Project Cost for Depot on Main to $3,795,000.

A future amendment to the depot operating agreement will be brought to City Council for the City to contribute an additional $69,613 towards the project.

Pros: enables completion of the Depot project.

Cons: none.