The Gloucester School Committee and City Council held a joint meeting on September 15. During this meeting the City Chief Financial Officer, John Dunn, reported on the latest updated cost of the Debt Exclusion for the project if the project is approved on November 3rd.
The total MSBA approved cost of the project is $66.7 million, with an MSBA Estimated Maximum Total Facilities Grant of $25.5 million, which could increase to $26.972 million if certain contingency funds are expended on the project. Mr. Dunn estimates that based on a debt exclusion of $42.0 million, future tax rates would increase by about 20 cents per $1,000 (or $20 per $100,000) of property value. This amount could be less in some years based on how the city issues and retires bonds related to the project. To understand how this would impact property owners:
The estimate of the cost to homeowners has been reduced from previous estimates based on the borrowing market which has seen a decline in loan interest rates. Additionally, ancillary costs have been removed from the project budget and will be funded from a loan order which was approved by the City Council after a public hearing on 9/22/20 in the amount of $4.2 million. This includes:
The City Council will be discussing and voting on the transfer of the land behind Veterans' School at their September 29 meeting. On Wednesday, August 26, the Massachusetts School Building Authority’s (MSBA) Board of Directors formally approved a motion to support plans for the building of a new consolidated elementary school in Gloucester, specifically a combination of East Gloucester Elementary School and Veterans’ Memorial School. Under the continued guidelines for project development, the Massachusetts School Building Authority is prepared to enter into a Project Scope and Budget Agreement ("PSBA") which is a standard contract that the MSBA enters into with a school district after having approved that district’s submitted schematic design. The schematic design includes a detailed scope, budget, and schedule for the project.
With the Board of Directors approval and with the imminent signing of the funding agreement, the MSBA will continue to monitor the project as it moves forward to ensure that expectations of both the District and the MSBA, as defined in the Project Scope and Funding Agreement are being met. Ultimately, this will be the basis for both the completion of the project and for the reimbursement of those elements of the project that are reimbursable. What this means is that for an estimated $66.7 million project, the City could expect reimbursement from the MSBA somewhere in the area of $24-25.5 million. Overall cost to the City of Gloucester would then be approximately $42 million for an estimated 90,000 square foot school. This new building will be located on the current site of Veterans’ Memorial Elementary School. It will serve the combined school communities, currently at 440 students. The design provides a new facility designed to serve the educational goals that will meet the needs of our children for many years to come and includes common areas that will be available to the public such as a full-size gymnasium, and several meeting areas. Recently, both the State Legislature and the Governor both approved the City's Article 97 request for the recreational field adjacent to the Veterans Memorial School to be used for school construction purposes. This request was brought forward by the City Administration and the City Council. The Article 97 legislation includes a “swap” of the land at East Gloucester Elementary School to be preserved as open space. The softball field, currently located on the Veterans’ site will be relocated to the Green St. recreational area. The City Council will now discuss transferring Veterans' Memorial School recreational land to the care, custody and control to the School Committee for the use as school facilities. With the MSBA approval, the project moves locally for funding through a debt exclusion vote on November 3 when the citizens of Gloucester will have an opportunity to move this school building project forward. |
AuthorsMembers of the East Gloucester Building Committee post project updates here periodically. Archives
January 2021
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