After approving a $115 million funding mechanism for the Catalyst project in west Greeley, the Greeley City Council is seeking to finance another significant undertaking — this time for downtown Greeley.
On Tuesday, the council discussed the Downtown Civic Campus project, which looks to modernize downtown government facilities, including a new Greeley-Evans School District 6 Administration building and a new facility for the county’s court operations.
The city anticipates the downtown project will cost the city about $126 million. Having approved $115 million in certificates of participation for the Catalyst project, the city faces an uphill battle trying to fund the downtown project without taking it to the voters.
The city’s portion of the project would include a new city hall, which could cost from $80 million to $92 million, $20 million in improvements to Lincoln Park and a $10 million contribution to a county parking garage.
To avoid adding the issue to what is already a potentially crowded ballot, according to city officials, the city is considering issuing certificates of participation, using the new city hall as collateral or entering a public-private partnership that will lease the city hall until the debt incurred for its construction is repaid.
If the city chooses to issue certificates of participation, it will be looking at a repayment plan of $10.1 million per year for the next 20 years, totaling $203 million. However, if the city constructed fewer spaces in the parking garage and used lower-quality materials, the price would be only $9.1 million per year for the next 20 years, totaling $182 million.
“The thing that frustrates me is that if we were having this same deep and nuanced conversation about West Greeley, then we could’ve made a different decision over there,” Councilman Tommy Butler said. “But right now, we’re already looking at a value-engineered version because it’s just too expensive to do the other one. We’re already on the back foot, and I would like us to be more aggressive and figure out what we can afford and go get it.”
In addition to the question of financing, the city council will also need to decide how it will pay the debt once the project is underway. City staff said the city could raise development impact fees, which are fees that developers must pay when building within the city, or it could reduce city services to pay for the project from the general fund.
“While the general fund is a valid option for funding a new city hall, it requires a thorough evaluation of our current expenditures and a strategic approach to financial management,” Deputy City Manager and Chief Financial Officer Allena Portis said. “This may involve finding areas where efficiencies can be achieved, reallocation of resources or seeking additional revenue sources to bridge the gap.”
Councilwoman Deb DeBoutez was particularly interested in the prospect of raising development impact fees, especially in west Greeley before development breaks ground there.
Mayor John Gates viewed the problem from a different perspective by looking to lower the cost further. He proposed removing the Lincoln Park renovations from the package and revisit that project at a later time.
“I’d like to bifurcate out Lincoln Park completely,” Gates said. “It’s not that I’m not interested in the plans. I liked it, and they put a lot of work into it. I don’t want to obliterate the Lincoln Park plan; if anything, I’d like to move it to Phase 2, but it drives up the cost.”
Throughout the work session, the council demonstrated a strong preference for initiating a public-private partnership with Richmark Properties as the landlord of the new city hall building. Councilman Johnny Olson said this seems like a good option, as they could stall the project until the city starts to generate revenue from the Catalyst project, which could be used to pay off the lease.
Despite his support, Olson didn’t want to officially commit to any of the options presented, as he believed it was still too early to make a decision.
“I think we are putting the cart before the horse here,” Olson said. “We have to put together these models first and start evaluating the options. It’s hard to say we’re going to do a COP (certificate of participation) when we don’t even know all the data we need. I think we’re a bit early in the game to be making strong financial decisions.”
The council reached a consensus that the city should continue developing financial plans that don’t require voter approval or place any burden on the taxpayer.
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