The project, at the former Acme on South Union Street, will cost more than the estimated $1.2 million.
By: Brooke Olster
LAMBERTVILLE The City Council has approved an ordinance authorizing an additional $450,000 to finance a new district court and community multiuse center.
The project at the site of the former Acme on South Union Street already is under way and has gone over the initial estimated cost of $1.2 million, bringing the total now to $1.65 million.
Mayor David Del Vecchio said the building is in need of significant architectural modifications and additional legal fees that have raised the cost from the initial estimate. The cost of the property also has increased as well. Costly renovations to the building must be made, such as replacing missing pipes, removing trees that have grown on the roof, installing new heating, ventilation, air conditioning and mechanical systems, just to name a few. A new roof already has been added.
On the plus side, however, Mayor Del Vecchio said the council had overestimated the interest rate it would pay from borrowing the money needed for this project by almost 1 percent. It thought it would be paying 4.5 percent, and it actually is paying 3.71 percent.
The council also underestimated the revenue it would receive from metered parking spots in the city by 50 percent. The new 75 cents per hour parking, versus the old 50 cents per hour, will generate approximately $70,000 per year in additional revenue for the city per year.
"We’re actually doing better than we thought," Mayor Del Vecchio said. "This project will pay for itself. I’m not worried."
The mayor said taxpayers will not be called on to finance this project.
City Clerk Mary Sheppard said the city is issuing bonds for an additional $450,000, but she said she hopes spend only $400,000.
Ms. Sheppard said she anticipates the council to award the contract to ProComm at its Aug. 18 meeting. ProComm bid on the project at $518,000 for work to be done on the interior of the building.
After a closed session at its Aug. 4 meeting, the council announced it will pay the remainder of a bill owed to Martin Appraisal for its work on the Acme condemnation. Ms. Sheppard said Martin Appraisal will appear in court in the fall to defend the city’s appraisal of the building at $695,000 versus the owners’ appraisal at $1.2 million. Soaring legal fees due to the disagreement over the value of the building between the city and owner are partially responsible for the additional money needed to complete the project.
Mayor Del Vecchio said the city will consider appealing to drive down the cost of the building if it loses in court.
Ms. Sheppard said the Acme building was the first building taken by the city under eminent domain.
The building was purchased from Real Estate Investment Trust last year. After the Acme closed, the building as operated as Raspino’s Market for less than a year before going out of business.
When the council introduced the ordinance for the additional $450,000 at its July 21 meeting, the mayor and council said a new court was needed for safety purposes. City Attorney Phil Faherty said crowded conditions warranted the new court. The county set standards in which the city must meet when building the new facility. The standards have caused the cost of renovations to increase, according to architect Michael Burns.
Because the building is located within the historic district, any renovations must be approved by the state Historic Preservation Office.
While there is no timetable for when the renovations will be completed, Mr. Burns said the work could be completed by late this year or early next year.
The building also will house an information center and public bathrooms for weekend use. Additional parking will be available.