South City tracks civic center progress

“We are going to build an iconic structure,” said Councilwoman Karyl Matsumoto, of the project planned at the intersection of Chestnut Avenue and Antoinette Lane.

The first phase of development includes the city’s new police station, which is already under construction. The next phase, slated to break ground in the fall, will include the additional community amenities.

And while most councilmembers admired renderings of the project, some uncertainty looms over the preferred path for constructing the development expected to cost a total of about $220 million.

With the police station accounted for, officials are anticipating the cost of second phase of work to increase by $9.5 million from previous projections to $129.5 million, according to a city report. Of the estimated increase, $4 million is associated with rising construction costs and the rest is linked to a park and playground proposed in front of the campus.

With hopes a portion of the unfunded park project can be covered with grants and a community fundraising goal of $10 million will eventually be folded into the budget, officials weighed additional strategies for affording the development.

Officials are planning to use about $83 million in bonds to afford a majority of the project, with an additional roughly $20 million in revenue from a recent sales tax hike.

Facing a gap of about $20 million, officials considered a chance to either draw the sum from a capital reserve fund or gather the amount from available bonds.

Noting instability in the economy brought by the pandemic, Councilman Mark Nagales expressed uncertainty over the idea of taking out additional bond financing.

“I’m just a little concerned we are able to afford our debt moving forward,” he said, suggesting officials could split the difference between bonds and the reserve funds.

For her part, Finance Director Janet Salisbury attempted to assuage those concerns by pointing to the favorable borrowing rates available plus the city’s strong credit and firm financial footing.

“If the city is going to borrow, now would be the time,” she said.

No firm decision was made during the meeting, but other councilmembers expressed greater comfort with the concept of borrowing — especially if the alternative is spending money from reserves.

Looking ahead, officials are optimistic a construction firm will be selected in the coming months which could allow the project to be finished by 2023.

The other lingering questioning is whether officials are committed to building the playground, which is currently unfunded. But officials seemed committed to constructing the facility they considered a potential community asset.

“Let’s put this playground in place, where it belongs,” said Mayor Rich Garbarino. “It’s for the people.”

More broadly, officials shared their support for the look of the site — barring minor potential aesthetic amendments.

“It’s just going to be a great centerpiece for the city,” said Nagales.

Garbarino concurred, expecting it will be a main focus of the community’s fabric.

“Let’s get going on it as soon as we can,” he said.

austin@smdailyjournal.com

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