The Turlock City Council unanimously approved at the September 13, 2010 Council Meeting to authorize the advertisement for construction bids for the new Public Safety Facility and to authorize staff to proceed with necessary steps to facilitate a bond issuance for partial financing, and to authorize staff to take necessary action to list for sale the existing Police Facility.
The future Public Safety Facility, to be located next to the renovated Carnegie Arts Center at Broadway Avenue and West Olive Avenue, will house the Turlock Police and Fire Departments. The new 57,500 square foot, two-story Public Safety Facility to sit on a 4.6 acre lot has been estimated to cost $35 million.
The City Council’s approved funding mechanism includes $13 million in new Redevelopment Agency (RDA) bond, $3.2 million of current RDA funds, $4 million of Capital Facility Fees, $1.35 million in Prop. 1B funds, and an expected $2.5 million from the sale of the existing police station on Palm Street, off Canal Dr.
The total $24.05 million in earmarked funding is short of the estimated $29.6 million needed to finish construction.
The funding gap of about $6 million is expected to be made up by construction’s low bidding climate the economy has created. Projects such as the recently bid Carnegie Arts Center renovation and expansion have been receiving bids upward of 30% under estimated construction costs.
Two factors also impact the planned funding including the fact that $13 million in RDA funds is not guaranteed but rather is based on how much property values in the RDA area are projected to increase the City’s tax increment in the future.
A financial consultant will work with the city as they prepare an RDA bond issuance once the City’s RDA bonding capacity is determined. The Turlock City Council will vote on the bond issuance on November 23, 2010 and the bonds will be sold the week after.
The RDA bond issuance would max out the RDA’s bonding capacity meaning that there would not be any RDA tax increments for future projects unless projected growth is exceeded.
The other contingent funding source is if the City receives the $2.5 million asking price for the current police station property.
The Turlock City Council approved giving City Staff the authority to take any and all action necessary to list for sale the existing Police Facility with a lease back option permitting continued occupancy until the completion of the new Public Safety Facility.
If there is still a funding gap after all funding has been determined and after the bids come in, the City is working with financial advisors on a funding strategy which may include borrowing from enterprise funds.
Bids for the new Public Safety Facility will be opened on November 9, 2010 and a contract must be awarded by December 8, 2010 as bids are only good for 30 days.
