After months of delays and increased strains on finances due to COVID-19, Redwood City announced plans to develop a new Veterans Memorial Building in partnership with the YMCA have been put on hold until at least 2021.
The project, slated to cost the city up to $60 million funded through park impact fees and lease revenue bonds, received final approval in December. Officials intended to break ground on its portion of the project in May but faced with an uncertain bond market due to COVID-19, the city announced Thursday the project would be delayed indefinitely. Staff recommends it be delayed about six to 12 months.
“It is hoped that the municipal bond rates will be more favorable next year. The city remains committed to the project and will be evaluating rates and COVID-19 impacts on a quarterly basis,” said city spokeswoman Jennifer Yamaguma in an emailed statement.
In a staff report, the city stated a higher than expected bond rate would put additional pressure on the General Fund, which is experiencing lower revenues.
In an announcement, city officials also cited concerns construction would have a negative effect on residents near Red Morton Park where the project would occur. In light of COVID-19, residents are still sheltering in place and have limited access to recreational spaces, making parks and open public space main attractions for families and other residents.
When originally approved, the project was divided into two phases. Phase 1 includes the demolition and reconstruction of the Veterans Memorial Senior Center in Red Morton Park along with a new outdoor promenade on what is now Nevada Street, east parking lot and traffic calming measures at nearby intersections.
Once developed, the 45,000-square-foot veterans memorial building will be entirely powered by electricity and feature a 270-seat theater, cafe, gym, second-story outdoor track, multipurpose rooms as well as conference and exhibition spaces for veterans and the NFL Alumni Association. Officials originally projected development of phase 1 would take two years and would have been completed in 2022 if construction began on time in May.
That development will ultimately be joined by a new 35,000-square-foot YMCA facility as part of phase 2 of the project, for which construction was expected to begin in 2022 and would also span two years. The YMCA building plans include two pools — one indoor, one out — open year round, multiuse rooms and a day care facility open to the public that can accommodate 72 children.
Both the city and officials with the YMCA agreed to put the project on hold but “will consider relaunching the bid process and project financing later in 2021.”
“We are committed to improving facilities for seniors and the entire community, and the partnership between the city and the YMCA helps us do that together,” said the statement.
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