WHAT ARE THE COST & TAX IMPACTS?

What are the Cost and Tax Impacts?

 

The Building Committee and Town Staff have worked diligently to contain costs and explore all options since the 2019 Town Meeting vote. In 2022, construction costs are estimated to be approximately 30% higher than the average of the actual bids received in 2019. The cost of building materials, and availability of materials have driven construction costs up during the COVID period.

Total Project Cost

The estimate for the entire project is approximately $16.6 million, of which hard construction is $13.5 million and soft costs are $3.1 million.

Hard Construction

This includes excavation, foundations, building structure, walls, roof, windows, doors, and all interior and exterior mechanical and electrical equipment, utilities, site restoration, paving, and landscaping.

Soft Costs

These include the Architect, Engineers Owner’s Project Manager Fees; specialized Police Equipment, IT/Computers, Fixtures and Furnishings, Materials Testing during construction, and Legal and Administrative Services.

Property Tax Impact

If funded with a standard 20-year bond, the effect on residential properties would be approximately $29 per $100,000 of assessed value. For example, the impact on a condo with an assessed value of $500,000 would be $145 +/- per year for 20 years.  It may be possible to reduce the impact on property tax bills. Any Town Meeting authorization will be offset by any grants received.

2017 $8.6 Budget

The total project budget approved at the 2017 Town Meeting for $8.6M was inaccurate and misleading. Based on depressed 2016 estimates, it did not include a premium for working on the Outer Cape nor a sufficient contingency. Today, anything built for that budget would be inadequate to meet the Police Department’s needs.

2019 Bids

In 2019, the Town received three bids for the building construction – $9.1M, $9.8M, and $9.9M. This would have required the Town to increase the budget allocation to cover the entire project cost, which Town Meeting did not approve.

Attempts to Reduce Costs

The Building Committee reviewed design options in 2018 and again in 2021, concluding that the current design is the most cost-effective, and meets all the needs of the department, in the smallest, most practical layout. The Police Department’s programming needs have not changed since the 2019 design.

Redesign and Increased Costs

The estimated project cost has risen $4.5M since 2019. A complete redesign at this point would add months to the process and result in additional costs. In addition to a projected $1M in additional building construction costs, soft costs, including approximately $850K in Architectural and Owner’s Project Manager fees, would raise the overall project budget.

Reducing the Building’s Size

This design is right-sized and is laid out in an efficient manner with no extras or unused space. The Building Committee eliminated about 3,000 SF from the first design of 2012; there is nothing now left to cut. Reducing the size any further would lead to spending millions on an inadequate building that runs the risk of being obsolete sooner than the life span of this building.

Costs per Square Foot Comparison

The 2019 building cost was $708 per SF, a reasonable price when compared to other Cape Cod police stations. Orleans and Wellfleet’s building costs updated to 2019 costs were approximately $730 and $700 per SF. In 2022, the 30% price inflation brings the current estimate to approximately $950 per SF.

Operating Costs

The efficiency of the modern systems in this building will result in lower operating costs compared to the existing older buildings. HVAC systems, electrical systems, LED lighting, windows and doors, and insulation, all were selected for efficiency and their long-term cost savings. The future installation of a solar array will contribute to additional savings.