The project could exceed the budget by $48 million
BROCKTON – A reluctant City Council committee agreed in principle to borrow up to an additional $48 million to complete the public safety building. The new police and fire building in downtown Brockton was originally slated to cost $98 million.
This means the total cost, including the necessary road redesign, could reach $146 million.
“To me, that’s a 50 percent cost overrun,” said a visibly angry City Councilman Tom Minichiello. “There are reasonable escalation costs and there are unreasonable escalation costs.”
The project management blamed undocumented bedrock and contamination on the site as well as an inflation-related increase in construction costs.
It was no secret that the sprawling site that once housed Brockton High School and other schools contained asbestos and other contaminants. But the extent of the problem was not clear from test pits and soil drilling, they say. In February, project leaders warned that significant additional costs would be incurred.
Why did site preparation cost so much?
Adding to the cost was the fact that much of the soil had to be trucked to special disposal sites. Project managers had hoped to send the soil to facilities in New Hampshire or New York, but those were at capacity. Instead, workers had to truck hundreds of loads 667 miles and drive 11 hours to dump them in Minerva, Ohio. Kevin Sullivan of CHA Consulting said 10 to 20 trucks were needed every day for several months.
Kevin Sullivan and his colleague Joe Sullivan of CHA Consulting (no relation to each other or to Brockton Mayor Robert F. Sullivan) assured that they will not ask for more money. “I can say with absolute certainty that we will not come to you,” Kevin Sullivan said.
The city will not be able to get the attractive 2.5% interest rate it agreed to on the first $98 million of the project. Chief Financial Officer Troy Clarkson said the city could borrow up to $48 million by taking out temporary loans for three years. By the time the final debt comes due, taxes from the new commercial development would have to be raised to make the math work, according to Clarkson.
CFO: Voters must approve spending on high schools
The unexpected borrowing of more than $98 million also impacts another flagship project: the $1 billion renovation of Brockton High School. A competitive state grant program could cover up to 80 percent of that. Brockton will then have to cover the remaining 20 percent, which could be $200 million. Clarkson said he now expects the city to have to convince voters in two years that borrowing beyond the usual limits is worth it. “It’s going to take a vote on debt relief,” he said. In the past, Brockton voters have not been eager to approve such loans.
“The only way out of this situation is to dramatically increase our commercial tax base,” said Phil Griffin, Ward 3 councilman and former chairman of the Brockton Redevelopment Authority. “We need to make sure Brockton is business friendly. Our future as far as these buildings are concerned depends on how well we handle commercial development.”
The City Council’s Finance Committee recommended issuing the check on Monday, but the final vote will come at an upcoming meeting of the full City Council. The check is expected to be approved.
Wondering if there’s a vacant building, construction, or other signs of change in or near Brockton? I’m veteran local reporter Chris Helms, and I’ll help you find out. Email your questions and tips to [email protected] or connect to X at @HelmsNews.
