The proposed ice rink/recreation center/pool project that has been proposed for the Promenade Shops at Evergreen Walk could cost up to at least $600,000 more than its initial $10.5 million price tag.
Indeed, according to Town Attorney Dwight Johnson in a Nov. 8 letter to the Town Council, the project would "probably" require the payment of prevailing wages to construction workers, which could drive up the labor costs of construction by 20 to 30 percent.
In an interview on Nov. 15, Town Councilor Kevin McCann said that labor costs would be about 30 percent of the cost of the project, and the prevailing wage would add about 20 percent the labor. That would mean about 6 percent - or roughly $600,000 - added to the project. The labor cost could be higher by a couple hundred thousand dollars more, depending on the calculations of the prevailing wages.
Johnson's comments were in response to several questions submitted to him by Mayor Tom Delnicki and Town Councilor Kevin McCann concerning the legalities of the project, which would be constructed near the Old Navy at the lifestyle mall.
Among the highlights of the other responses provided by Johnson are the following:
- The town charter permits the use of a 63-20 corporation to construct the project, in Johnson’s opinion, without the need for a referendum for the town to enter into a lease with that corporation.
- A simple majority - five town councilors out of the nine - would be needed to approve the project as proposed, according to Johnson. “Six votes is required to approve an expenditure of more the $25,000 if the expenditure is not provided for in the annual budget,” Johnson wrote. “In this case, a vote of five members would be sufficient provided that the Town is not expending its own money on the project. If the Town were to enter into a lease for all or a portion of the use of the facility, the annual appropriation of the lease payments would be included in the annual budget. Expenditures by a properly formed 63-20 corporation would not be considered an expenditure by the Town for these purposes.”
- It does not appear that competitive bidding is necessary for the project because the 63-20 corporation would be handling construction.
- Johnson estimates the cost for the town to defend against a legal challenge to the project to run between $25,000 to $100,000, depending on how far in the process a lawsuit went. The $100,000 figure is an estimate in the unlikely event that the matter went to trial.
Efforts to reach Delnicki for comment were unsuccessful.
The proposal calls for the creation of a 63-20 not-for-profit corporation, which would obtain federal tax-free bonds to construct the following:
- a 35,000 square-foot community center for youths that will have classrooms and an aquatic center comprising an eight-lane pool, therapy pool and diving pools.
- Two - one indoor, one outdoor - ice skating rinks; the indoor rink alone will be 38,000 square feet and will be under the same roof as the Community Center, while the outdoor rink would be about 22,000 square feet.
- An extensive multi-use trail and bike path system that would connect the Promenade Shops at Evergreen Walk with the Town Center. The new paths would provide safe connections for pedestrians and cyclists.
The corporation would then lease the use of the rinks, pool and recreation center to the town, according to the plan.
The project, brought before the Town Council last month, has generated some controversy and more than a little conversation in South Windsor.
Some residents have said that the project would be a much-needed asset that would alleviate space problems at the Charles N. Enes Community Center, provide a source of recreation in town and give the Promenade Shops at Evergreen Walk a shot in the arm in a challenging economy. Members of the biking and high school swimming and diving community have also expressed their support for the project.
more than the projected $600,000 annual lease payment that was submitted to the Town Council. Furthermore, others have said that there is no need to build a new ice hockey rink when one already exists in the town - South Windsor Arena.
[Correction: the original piece stated that prevailing wage could drive up the cost of the project by several million dollars. South Windsor Patch regrets the error.]
When the 6320 is created the project will go out to bid. The $10.5 million is an estimate. When a bid is accepted the price will be set. The 6320 is protected, and construction companies cannot go over budget, they would have to eat any additional costs to the project, and the town cannot be liable. I know of at least 4 construction companies that are eager to bid, prevailing wage or not. Now that Mr. Johnson has put any legal issues to rest, we can move forward! The annual budget is $100 million. In regards to the lease $$ amount. It's nothing more than budget dust, and we should be able to find the money in current budget without any tax increases.
I've seen over 100 posts regarding this project and the responses have been overwhelmingly positive. It's time to stop reading and posting. It's time to go to South Windsor Town Hall and sit down and talk about it. Now that the legalities have been taken care of, I hope there is enough support from the Town Council and The Mayor to bring this project forward formally. The Town can't loose and everyone wins! This is an opportunity to do something special for the town, and we are lucky to have Mr. Finguerra investing in our Town. He's brought jobs and tax revenue to the Town of South Windsor. This opportunity can't be wasted. South Windsor Evergreen Community Center-It's time to invest in our Town, businesses, children, seniors, families!!
The good news is your property value will be higher when the project is approved. Try some Prozac.
Adding to them, people should also consider that bringing additional folks into our town to use these facilities means there are more people to spend money on our local businesses. And as someone else also mentioned, better town facilities means better property values, which is a win for every homeowner, regardless of what services they use.
I can 't imagine our council members committing our taxpayers to a million dollar lease for thirty years in addition to hiring staff, paying for their benefits, heating,cooling and maintaining a hockey rink and paying for insurance. This project sounds wonderful to have once we have the money to take care of the schools, facilities we already have. Four questions on the ballot last week failed to pass. Why would anyone think that those same voters would pass a referendum question on the hockey rink project? We need to separate needs and wants. When we can afford to take care of the needs we can look at the wants! Prioritize and make transparent all of the expenses that we have to be responsible for. If it passes a referendum then do it.
Putting the above aside, the real news here is that the Charter provides the Town with wide ranging authority "incident to the management of the property, government and affairs of the town" including the establishment of 63-20 corporations as allowed for under the Connecticut General Statutes. Tom, as Mayor of our town, had to have know this. But now that he and the TC are armed with the attorney's opinion, they are well positioned to confidently consider the use of 63-20 corporations - and to protect our right to do so.
I hope the town makes the choice of moving forward with this project, but would also reasonably expect that some details change based on such diligence. Considerations such as creating only one rink and other modifications to make the investment less risky would be wise. Open space is always in demand so leveraging space for fields, fairs, and other events could also be an attractive option.