Millbrae Community Center builder selected

The decision Tuesday, Aug. 25, sets the stage for a groundbreaking ceremony in a couple weeks — kicking off nearly two years of construction and leading to a projected grand opening in 2022.

Mayor Reuben Holober expressed his enthusiasm for the project’s advancement after years of planning and deliberation.

“A lot of hard work has gone into this and it is very exciting to be at this time to have an opportunity to move ahead and see a light at the end of the tunnel,” he said.

Councilwoman Gina Papan agreed.

“I firmly believe this a very, very important community building that will return synergy to our community and really bring people together,” she said.

While working through the construction process, officials still must identify a financing plan for the new facility. Of the $28.4 million needed, $15 million has already been secured with a lingering $13.4 million still unaccounted for.

City officials had hoped to take a loan out from the county government to help afford the project but, due to the financial hardship due to the pandemic, the terms of that offer changed.

County Manager Mike Callagy said the $14 million loan offered to help finance the project may need to be delayed about two years, while officials assess the economic damage brought by the pandemic, said Millbrae City Manager Tom Williams.

In lieu of the county’s contribution, Millbrae officials examined opportunities to take on roughly $10 million worth of debt with a loan from the city’s enterprise and development impact funds and pay that amount toward construction.

For the enterprise funds, officials examined the opportunity to take about $6.4 million from the $11 million that otherwise would be paid toward the city’s investment portfolio.

The development impact fees are those expected to be paid by builders planning large projects in Millbrae which will be due once the buildings are completed. The other roughly $3 million would be generated from selling city property.

For his part, Williams defended the notion of constructing loans around the city’s finances and spending the money in a way that benefits the community.

“This is a very sound strategy,” he said.

Officials noted there is some uncertainty in the proposal, specifically around the idea of linking the loan terms to development income during a time when the economy is experiencing instability due to the pandemic.

For her part, Papan said she believes constructing the community center will be a central piece of rebuilding the city’s local economy.

“I do think this is going to be a big part of our economic recovery,” she said.

Officials have scrambled for a strategy to pay for reconstruction for the facility since it was lost to an arson fire in 2016. A temporary center exists, but officials are hopeful to construct a permanent facility capable of accommodating an evolving and growing community.

No final decision was made for the project financing, and the issue will be revisited at later meetings. For the time being though, officials expressed their enthusiasm over the project moving forward.

“We are moving in a very, very exciting direction,” said Papan.

austin@smdailyjournal.com

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