Savage Intensive Residential Treatment Services rendering

A two-story mental health treatment center in downtown Savage will feature space for residential treatment, shared living spaces, administrative offices and multipurpose needs. Fendler Patterson Construction is expected to break ground on the project by August.

A local company will construct the residential mental health treatment center on track to be built in Savage this summer.

The Scott County Community Development Agency awarded the $4.8 million bid to Fendler Patterson Construction, a Savage company, in a resolution on Tuesday.

The second bid, from Shaw-Lundquist Associates, Inc., came in at $6.1 million.

The 16,000-square-foot, two-story treatment center will stand on a half-acre parcel of vacant land on the northwest corner of Ottawa Avenue at 124th Street.

Clients will be able to access Intensive Residential Treatment Services for up to 90 days and crisis stabilization services for up to 10 days. The facility may house up to 16 clients at a time.

The facility will be owned by the development agency and operated by Guild Incorporated, a nonprofit that provides an array of mental health services and residential treatment programs.

The Savage City Council approved the plans in April.

Bill Jaffa, the development agency’s executive director, said construction will begin on the facility within the next month.

Jaffa said around 1,700 pages of paperwork were prepared for the public bidding process by UrbanWorks Architecture, but only two bids were received.

The bid came in around $400,000 higher than estimates made a year and a half ago. Jaffa said agency staff were pleased with the final price and said the increase was “not unexpected given the market conditions 18 months later,” pointing to material costs and labor shortages.

Jaff said it’s also a challenging project because it combines residential, commercial and clinical construction elements. The state’s building regulations, such as energy-efficiency requirements, can also drive up costs.

The agency hasn’t worked with Fendler Patterson before, but Jaffa said there are “safeguards all the way around” to ensure quality and the company had strong references.

“It’s very exciting and it’s certainly meeting a great need in our community,” he said.

The project is funded from various sources including the state legislature, Scott and Dakota counties, the city of Savage and Allina Health.

Local officials, residents and mental health professionals have commended the joint effort to fund the project.

Jaffa said they are hoping it’ll be a model to encourage other communities to pursue new-construction mental health treatment centers.

Christine Schuster is a reporter for the Savage Pacer.

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