Now that initial site work is underway for Burlingame’s new community center, I thought it was timely to provide an update on the estimated total project cost. The City Council has been trying to “value engineer” a maximum cost of $50 million. However, during the most recent council discussion on July 1, an additional $2 million of staff recommended add-ons were approved, bringing the new estimate to $52 million. Coincidentally, it was announced at the meeting that a capital campaign committee has been formed to raise $2 million to $2.5 million in private donations.
Importantly, the above $52 million estimate does not include the interest cost of an eventual $30 million bond issue to partially pay for the project. Thirty-million dollars is the maximum debt capacity using allocated funds from the 2017 Measure I local sales tax and additional contributions from the city’s general fund.
Assuming an average 20-year bond maturity (consistent with a prior presentation by the city’s financial advisory firm) and a 2% interest rate (in line with current investment-grade municipal bond rates), the interest cost would be approximately $6 million, bringing the total project cost closer to $60 million. Of course, we won’t know what the actual interest cost is until the debt is issued, as it will depend on the interest rate environment at that time.
Finally, all of the above relates only to the upfront capital cost. I have yet to see an estimate of what the ongoing operating costs of the new community center will be.
For once i agree with Christopher Conway. This project was NOT the number one priority of voters when asked about the sales tax measure. As I recall, it was police, potholes and affordable housing way before this, the Mayor's pet project. I don't believe there was ever a study on how many people in the community could be expected to use it once completed.
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While the voters on Burlingame sit on the sidelines and let them get away with this unneeded project.
For once i agree with Christopher Conway. This project was NOT the number one priority of voters when asked about the sales tax measure. As I recall, it was police, potholes and affordable housing way before this, the Mayor's pet project. I don't believe there was ever a study on how many people in the community could be expected to use it once completed.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.