RIVER VALE—Township officials agreed to appropriate $6 million in additional bond funding — raising the potential total cost to nearly $20 million — for its long-planned public safety complex at the Aug. 28 council meeting.
The Township Council approved 4-0 the introduction of a supplemental appropriation ordinance for $6 million, which includes $5,700,000 in bonds or notes, plus $300,000 as the downpayment on the bonded amount.
A public hearing on the $6 million appropriation was expected on Monday, Sept. 11.
Council also approved a resolution that endorsed a county recommendation to reduce speed on Piermont Avenue from 40 miles per hour to 35 mph. Gennaro Rotella, township administrator and chief financial officer, said the local police agreed with the county’s recommendation.
The resolution notes that “The Township and region have experienced major housing developments over the years that have significantly increased the volume of traffic on Piermont Avenue” as one reason to reduce the speed limit.
Rotella said the additional public safety complex 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 downpayments, 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.)
Rotella said no one on the council was happy with the high bids or price increases for materials in the last two years, “but this is what we need to do to move forward now on the public safety complex.”
Rotella said architect Settembrino Architects told him construction prices had increased 8% per year or more in the last 24 months, noting “Everything across the board has been going up,” including materials, labor and contingency costs.
Rotella said he estimated that the council needed at least $6 million more to cover costs given the high recent bids for the project’s construction.
He said he hoped to go out with new bids by late September, receive bids back by mid-October and possibly 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 currently add $200 to an average tax bill.
He noted as more of 224 planned luxury townhomes are added to the tax rolls from Fairways at Edgewood development, the bond tax impacts will decrease.
Rotella cited two recent projects, in Dumont and Bogota, that dramatically increased in price. He said in Dumont a new town hall building increased in cost from $14.8 million to $24 million when bids came in.
In Bogota, he said, a community center went from $4 million to nearly $8 million.
He noted that the police department is currently in “a deplorable building” with one bathroom for officers, visitors, and prisoners. He said the planned new police safety complex will meet all federal Department of Justice requirements and regulations for police departments.