City hopes price tag for new street department will be around $13 million

This post was provided by News Now Warsaw

By Dan Spalding
News Now Warsaw

WARSAW — The city of Warsaw unveiled plans on Monday to construct a new public works facility that would be three times bigger.

The existing West Center Street facility, built in 1960, includes a series of cobbled-together buildings and a small office space that are undersized. The lack of space has required the city to keep many of its vehicles outdoors.

The new facility would put everything under one roof and would triple the department’s footprint.

The department has a growing fleet of vehicles, expanded duties over the years and a lack of sufficient space for its mechanics.

“Our biggest challenge is capacity issues,” said Public Works Superintendent Dustin Dillon. “If you want to come out and figure out how to put ten gallons of stuff in a five-gallon bucket, we’ll certainly show you …”

To accommodate the proposed project, the city has acquired three houses to the east along West Center Street.

The future building would be east of the existing office and construction is expected to span two years.

Tentative plans have been under consideration for months. Bakertilly Municipal Advisors gave city officials an in-depth proposal in December that outlined three proposals ranging from $6.5 million to $13.4 million.

Officials have embraced the $13.4 million plan and expressed a desire to reduce the price tag as the proposal is fine-tuned in the coming months.

Bakertilly’s proposal also references a “not to exceed” $14 million figure in case the price of construction, for some reason, rises in the next few months.

If the price tag rises above that maximum level, it would force the city to re-do the financial plan.

Officials want the plan finalized this summer in hopes of beginning construction.

The worst-case scenario with this project, he said there’d be an addition of 6 to 7 cents on the property tax rate, but officials expressed confidence that that would not happen.

The city’s assessed value is expected to continue to rise in the next few years and would help offset any increase in the tax rate, which has fallen about eight cents in recent years.

The city can also turn to EDIT and TIF money as a backup source to finance part of the plan and will see a few bond issues expire in the next few years, further reducing the city’s financial constraints.

“If we don’t achieve the growth we need to cover that 6 to 7 cents in assessed valuation, we could use TIF, (or) EDIT to buy those down,” said Jeremy Skinner, the city’s director of community and economic development.

“At the end of the day, the intent is to keep this project net neutral on the tax rate,” he said.

Construction would span two years and Dillon said they hope to begin work this year.  Completion would happen in 2027.

Almost all existing structures would be demolished after construction is complete, Dillon said.

City Councilman Mike Klondaris pointed out that the city in recent years has upgraded several city departments, including constructing a new wastewater plant, parks office and fire station on the south side and he thinks the proposal put forth Monday is a “well thought out plan.”

On Monday, the redevelopment commission and city council both took the first steps by approving plans to host two public hearings on the plan in the coming weeks.

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