RIVER VALE— Although several residents questioned Township officials about the extra $6 million in bonding required for the long-awaited Public Safety Complex — with one resident charging citizens are not being kept informed by the town on important matters — the Council voted 4-1 at its Sept. 12 meeting to approve the extra bonding, anticipating future project costs of nearly $20 million.
“No one spoke in favor of the $6 million (bonding increase),” resident David Rice told Pascack Press on Sept. 13, referring to three residents who spoke Sept. 12 and questioned the increase.
The lone councilman opposing the $6 million in extra bonding was John Donovan. Pascack Press asked Donovan why he opposed the extra bonding.
“I’ve been in the construction industry all of my adult life. I’d love to see if we couldn’t try to cost engineer or reduce the scope of the project by 10% to 15%, to get us more in line with what we already approved on the bond side,” Donovan said.
“I know we have some fairly significant new ratables coming in over the next few years that could help to keep the impact to all of us taxpayers manageable, but the significance of the jump from $12.5 million we discussed in late 2020 to what amounts to $20 million now, just wasn’t sitting well with me, and so I voted the way I believed was in the best interest of the residents,” he said.
The additional bond funding was necessary due to initial project bids that came back between $15.5 million to $16 million, when initial 2021 estimates were $12.5 million for the building and $2.5 million in soft costs, such as bond down payments, architect, planning and engineering fees.
One bid received was for $15,580,000 and a second bid received was for $16,050,000. (See “Extra $6M bond likely needed for public safety complex,” Michael Olohan, Aug. 7, 2023, Pascack Press.)
Rice said that he and two other residents who spoke at the bond’s public hearing Sept. 12 asked for details about the proposed complex and why the costs had increased nearly 50% since it was first proposed two years ago. He said they were told inflation, and increases in material and labor costs.
He said one resident said he searched and searched for details on the township website to try to find out why the price had increased dramatically, from about a total of $14 million in 2021 to $20 million in 2023. He said he could not find any information.
Rice said the residents suggested that the township send an email to residents informing them of the complex’s updated price, with details, but it was unclear if that would occur.
Rice said that residents receive emails often on recycling matters, but not on “important issues” such as bonding costs that may affect property taxes.
He noted that while the local school district is holding a referendum Nov. 7 to ask residents whether it should budget $230,000 to hire three retired officers as school security guards, the township was holding a little publicized hearing on a $6 million bond increase where three residents showed up to comment.
Costs are estimated at $20 million, where in 2021 the project was estimated at $12.5 million and $1.5 million in “soft costs” such as engineering, architectural, planning and project management expenses.
Rotella said he estimated that the council needed at least $6 million more given recent bids for the complex’s construction.
He previously told us that he hoped to go out with new bids by late September, receive bids back by mid-October and award the construction contract by late October or early November.
Rotella said the estimated tax impact on a homeowner for the $20 million project was approximately $300 yearly (for 30 years) on an average $592,000 home. He said bonds previously sold on the project may add $200 to an average tax bill.
He noted as more of 225 planned luxury townhomes are added to the tax rolls from Fairways at Edgewood development, the bond tax impacts on taxpayers will decline.