While the estimated cost of McMinnville Civic Center renovation is set at $6.1 million, it will cost $118,000 to obtain actual numbers.
According to Aldermen Everett Brock during Tuesday night’s Finance Committee meeting to discuss the proposed renovation, HFR Design wants $118,000 to generate bid documents.
HFR Design was hired by the city to oversee the project. Bid documents include architectural drawings, bid forms, specifications, and charts that companies use to bid on the project. When those bids are received, the city will know the project’s actual cost.
The information was also presented with several financing options generated using the $6.1 million estimate. Using a variable rate on 20 years, the annual debt service payment would be approximately $380,000. Using a fixed rate on 20 years, the annual debt service payment would be approximately $410,000.
“If we did the whole thing, what would you recommend,” said Alderman Ben Newman.
Brock added, “Variable rate at 20 years.”
The annual payments can be made using the 25-year Warren County/ McMinnville settlement over local option sales tax.
“Right now, in our restricted lawsuit budget, we have approximately $1 million,” he said. “The income going into that account next year will be approximately $450,000. Also, the other thing that’s very encouraging is our year-end fund balance which is doing great. I would feel confident in saying it will be around $7 million.”
Fiscal year 2016-17 started with almost $6 million. Ending the year with an additional $1 million points to the city being in strong financial standing.