Using worst-case scenarios, the building of four fire stations is $9.8 million over projections and renovating the Robert “Sonny” Hill Jr. Community Center is $5.7 million over revenue.
The city planned to build four fire stations after voters in May 2022 overwhelmingly approved a 1-mill property tax levy. At the time, the levy was expected to generate enough revenue ($16.9 million) to replace the city’s aging fire stations and headquarters.
But since then, the cost has risen to $26.4 million, which includes $22.3 million in construction, $2.6 million in soft costs, $1.1 million in fees and $616,917 in contingencies. The city was always going to pay for furnishing the fire stations.
At about the same time, the cost of constructing and renovating the Robert “Sonny” Hill Jr. Community Center, 800 Lafayette Ave., has increased. Construction estimates are $14.8 million, according to school treasurer Randy Bertram. Of that, $9.1 million has been secured, leaving the project as much as $5.7 million short.
There are several additional resource possibilities totaling $4 million, including: $1.8 million in potential sponsorships; $1 million from Cleveland-Cliffs, the Middletown steelmaker; $750,000 in valued engineering savings; $250,000 from an education source to be named later, and $250,00 in potential memberships, Bertram said.
When talking about additional potential sponsors, Bertram said: “Our well is not empty.”
A large portion of the cost of the center is projected to be spent on a full-size gymnasium that school board members and city officials hope can be a revenue generator through rentals. The gym with additional parking is expected to cost $4.4 million, or 30% of the total project cost.
If a full-size gymnasium is built, and if the school receives nearly $3 million in donations, it would be $2.8 million short of projections. The district would then apply for a block grant, Bertram said.
One possibility is to borrow the $2.8 million for 20 years. Based on percentages from 3.75% to 4.25%, Bertram said the yearly payments would be between $202,000 and $230,000.
School board member Cathie Mulligan said a full-size gym is the key to the project’s success.
Without it, she said, the city will “miss the mark completely” and “be the laughing stock of humanity.”
“It’s important to finish the job and do it right,” added school board member Todd Moore.
The center has received $8.1 million in combined pledges from the school district ($4 million), city of Middletown ($2.6 million) and Butler County Commissioners ($1.5 million). The center’s leadership asked the commissioners for $6 million in American Rescue Plan Act (ARPA) funds, but was awarded $1.5 million, the same given to similar community center projects in Hamilton and Oxford.
Bertam said the district already has committed free transportation for students from school to the center, valued at $150,000 a year. The district also plans to donate its used kitchen equipment to the center, valued at $100,000, he said.
City Council met with the school board during a special meeting Wednesday night to discuss the community center, then the City Council met and the escalating cost of the fire stations was on the agenda.
Council member Zack Ferrell asked if fire headquarters could be renovated instead of rebuilt. City Manager Paul Lolli, the city’s former fire chief, said fire headquarters is in the worst condition of all the stations.
Vice Mayor Monica Nenni said the city promised voters that four stations would be built if they passed the levy and not following through would be a “disservice” to voters and firefighters.
City leaders said the plan is to award the contract to construct two fire stations this fall and the other two in the early spring of 2024.
Lolli told council he and staff would create a possible financial plan for the fire stations and discuss at the next meeting on July 18. At an earlier council meeting, Lolli promised residents the city would make “good, informed decisions.”
ESTIMATED COSTS OF MIDDLETOWN’S FOUR FIRE STATIONS
- New fire headquarters location replacing the 1.38-acre site on Roosevelt Boulevard: A 3.6-acre site at Yankee Road and Cherry Street owned by the city as acquired from the Middletown City Schools and former site of Garfield school. Size: 24,300 square feet. Total cost: $10.5 million.
- Station No. 81 location replacing 0.28-acre site on Clinton Street: A 2.85-acre site at Henry Avenue and Charles Street owned by the city as acquired from the Middletown City Schools and former site of the Jefferson school. Size: 10,200 square feet. Cost: $5 million.
- Station No. 85 location replacing 0.86-acre site at Central Avenue and Breiel Boulevard: A 2-acre parcel at Sophie Avenue and Stolz Drive encompassing the undeveloped, southern portion of Dowling Park owned by the city. Size: 10,200 square feet. Cost: $5 million.
- No. 82 location replacing 0.88-acre site on Dixie Highway: A 2.7-acre site at Ohio 122 and Atrium Boulevard acquired from Premier Health/Atrium Medical Center. Size: 11,800 square feet. Cost: $5.9 million.
SOURCE: City of Middletown
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