CLAYTON — ºüÀêÊÓƵ County officials are considering a property tax increase to pay as much as $612 million for a new headquarters and office space.
The boost would cost the owner of an average-value county house as much as $8 per month or $96 per year, according to a county contractor.
The County Council is choosing options now. It could ask voters to approve such an increase as soon as November.
“Every path forward most likely goes to a vote of the people,†said Joe Kulessa, acting deputy director of county transportation and public works.
The county’s architectural contractor, WSP Global Inc., presented several ideas to the County Council on Tuesday to replace or repair the 52-year-old Lawrence K. Roos administration building — home to elected officials and several county departments — on South Central Avenue in downtown Clayton.
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The cheapest option would cost $276 million over 20 years and pay for installation of a required sprinkler system; $45 million in deferred maintenance such as leaky windows and asbestos contamination; and reconfigured indoor office spaces. A second option, recommended by WSP, would cost $560 million to build a new county building in the county-owned parking lot across the street from the existing site, plus a satellite office in mid-county.
The most expensive proposal would cost $612 million. It would be the same as the $560 million option except police would stay in their current headquarters with some renovations.
The different options would cost the owner of a $255,000 house between $3 and $8 a month on property taxes over a 20-year government loan period, according to estimates from WSP.
Some council members have already begun to worry about costs ballooning.
“The concern is how accurate is their estimate and is that going to hold three, four, five years from now, whenever completion is?†said Republican Councilman Ernie Trakas, who represents south ºüÀêÊÓƵ County. “What happens in five years when instead of $500 million, it’s a billion?â€
The county doesn’t have a lot of time to decide. It faces fines of up to $1,000 a day or eviction if it doesn’t move or bring its current building up to code with fire sprinklers by 2028, according to an ordinance from the city of Clayton.
How to pay for the building
Contractors urged the County Council this week to decide as soon as possible which of the four options and payment plans they prefer for the project, known internally as . WSP said bidding for work should start this fall or winter to meet the 2028 deadline.
Starting on the project before the end of the year would mean getting a proposition on the Nov. 7 ballot. The filing deadline for that election closes on Aug. 29, said Rick Stream, Republican director of elections for ºüÀêÊÓƵ County. Two-thirds of voters would have to approve the proposition.
The filing deadline for the Aug. 8 election has already passed. And the next election after November isn’t until April 2, 2024.
The cost estimates came from contractor Kwame Building Group, which asked subcontractors to help price out the options, said WSP architect Jason Mayfield. The county didn’t immediately provide a breakdown of the estimates.
The county could issue general obligation bonds, the most secure type of government borrowing that comes with the lowest interest rates. The dedicated property tax would cover the annual payments, said county budget Director Paul Kreidler.
The county could also borrow via special obligation bonds, which don’t require a vote of the people, and could be paid back from regular county cash flows. But those bonds come with significantly higher interest rates — and the county doesn’t have extra cash in its $1 billion budget, Kreidler said. It’s already spending $44 million more than it brings in annually.
The county used general obligation bonds in 2012 to secure financing for a $100 million courthouse renovation. When the cost of the project creeped up by $22 million the following year, the county issued special obligation bonds and took on the debt in its regular cashflow.
The county isn’t set to see a decrease in its annual debt payments until 2027, according to its .
The county hasn’t decided on how it would contract out the work.
There are other options
Under a method where the contractor takes on the financial risk, the county would “have an opportunity to maximize what we get and hold firm to the value,†said Transportation and Public Works Director Stephanie Leon Streeter at a council committee meeting Tuesday.
“If we say we only have $20 million or $200 million, or whatever it would be, we have an opportunity to hold to that,†Leon Streeter said.
Trakas wants the council to retain control of any additional spending that might be necessary. Leon Streeter said the council could establish oversight up-front.
There’s another option for contracting the work, WSP said. The county could detail its needs to a private company, which would build the facility. The county would pay the company annually, sort of like a lease. And at the end of the agreement, the county could own the building.
So-called public-private partnerships can take on many forms, but the county would not be able to pay for such an agreement with general obligation bonds, Kreidler said. It would have to pay out-of-pocket.
Kulessa, the acting deputy director of public works, said his department is ready to work.
“Right now we’re looking for the council to decide which concepts to move forward with, then funding options will be decided,†Kulessa said. “Exactly when it would move forward, if it moves forward, very much depends on how the council wants to proceed.â€