After the Blue Ribbon Committee...What's Next?

(Editors Note: We sat down with Councilman Larry Parham for a three-hour interview this week, to learn one councilman's reaction to the Blue Ribbon Committee's report on a new swimming pool and new community center, and what will be done. Here is some of what we learned)

--On building a new swimming pool: "I want one; I hope we can get it built next year, and at a cost of $1-1.5 million, not $3 million as reported by the Committee. I would like to see it built out East near the Rotary Park and other park facilities. It will be a simple no-frills pool, one that can be expanded as time goes on. We need a new pool; the old pool in the State Park is something that is outdated. I would think the city could find the funds now to build it."

--On selling the current Civic Center: "I will not support a vote on selling the Civic Center at this time because we don't yet know the true cost of replacing it. The devil is in the details." Parham says the numbers presented in the Committee report are seriously underestimated and the true cost of doing what the Committee recommends would damage the city, to a tune of a $17.1 million deficit... He is opposed to buying the Cornerstone Church and instead suggested a different route if the money is available: Sell only the parking lot at the existing Center, update and overhaul the current Center, buy land north of the Center for expansion with an auditorium and small meeting rooms, and enlarge the parking area to the north. The old parking lot could be sold to a developer for construction of a small strip center and new restaurants.

--If an ad valorum tax is passed to build a $10 million community center, it would cost homeowners $170 per $100,000 real valuation every year for 20 years, and he opposes that. There has to be another way, he said "but if the citizens want it that is what we will do."

--He said new city manager Bruce Johnson is working on a new Five-Year Plan that will outline the city's needs in order of importance, which Parham said could include expansion of the wastewater treatment plant and water treatment plant, new community center, new swimming pool, road and street resurfacing, water meter replacement program, and more. "We have to get our priorities straight," he said.

Parham said he appreciated the hard work the Committee put into its study and recommendations but some of the numbers were incorrect. But first, he said "we need to stop giving away rentals for the Civic Center. We need some cash flow to at least pay some of the operating costs."

He said the Committee errored in its estimate of cost to build a 50,000 square foot tip up concrete facility adjacent to the Cornerstone Church…"they left out costs for electricity, plumbing, security and other details," he said. He said the true cost of purchasing the church would work out to $2,085,000 instead of $1,835, 000. "We can't get loans for 40 years, which the Committee said; the maximum is 20 years on a new pool; the widening of 18th Street from Broadway to Main was not included, which would cost $500,000.
The church additions cannot be built for $30 per square foot, which is what the Committee estimated, he said, and the total cost to finance the church purchase and additions would come to $5,834,000 instead of $5,584,000 with the net purchase price of the church being $2,805,000 instead of $1.835, 000.

Parham has spent days analyzing the numbers and has pages of figures to prove them.

He says we would have an annual payment of $462,000 at 5% interest over 20 years, for the church purchase and additions, instead of $359,713 at 5% over 30 years, with a total of principal and interest of $9,240,436 over 20 years. "Do we really want to spend that much money?" he asks.
He also disputes that income from the new community center would cover utilities, housekeeping and minor maintenance repairs, calling that "a stretch."

"My number one issue with the Committee's report is the Committee's estimates on cannibalization of other retailers, estimated by the Committee at 65%. It should be 90%, meaning only 10% new business from the stores in the old Center area. "The math does not work," Parham said.

On the pool portion of the Committee's report, he said the shortage to the city budget in paying for a new pool could be as much as $669,588 instead of $94,241, since the pool cannot be financed for 40 years. Actual principal and interest at 20 years would be $237,576 instead of $152,704 and we would have a loss on the new pool as well.

Parham says ultimately the flaws in the figures make it impossible to proceed at this time with the Committee recommendations, although he says he definitely wants a new pool and new community meeting facilities.

The city has now spent more than $100,000 in outside consultant studies on the civic center and swimming pool issues, plus the 10 months work by the Blue Ribbon Committee.

New Pool, Community Center Plans Outlined

Special Early Edition
A plan for an affordable new city swimming pool and new civic/community center was outlined Monday night at a special joint meeting of the Blue Ribbon Committee, Grove Industrial Development Authority Board, and a partial City Council. Neither proposal calls for a tax increase.

Connie Brewer, chairman, and member Bill Skea spent more than an hour going through a 25-page Power Point presentation, recommending that the sale of the existing Civic Center be put to a vote of Grove residents, with a recommendation to purchase the Cornerstone Church and expand it to include other features enabling all citizens to have a complete multi-purpose facility for use seven days a week.

The committee also recommended construction of a 5,500 square foot outdoor pool adjacent to the new Center with zero beach entry, water slide for teens, small slide for younger children, and six swimming lanes and diving boards. Cost would be $3 million, financed by a Department of Agriculture 40-year loan at 4.1% repaid at $152,704 per year. Offset by cash savings of $119,287 achieved from new sales tax revenues from new businesses to be built on the current Civic Center land, and losses on the current pool, the city would be short only $15,577 without an increase to the current city budget, the report noted.

Here are some highlights of the presentation:

--The committee suggests moving from the Civic Center concept to Civic Center PLUS Community Center that could be used full time, recommending sale of the current Civic Center based on a vote of the people and purchase of the existing Cornerstone Church on 13th street.
--This would give the city an immediate facility with a 750-seat auditorium that could be expanded to 950 seats with great acoustics, 14 acres of property adjacent to the Sports Complex, and 22,000 square feet of buildings for meeting rooms and city offices.
--The recommendation included a "wish list" adding 50,000 square feet of tip up concrete construction with brick veneer and no pillars; a cement floor with a versatile synthetic cover for basketball, volleyball, dog, boat and home/garden shows; a walking/running track; two racquetball courts, an indoor wellness pool, dressing rooms and showers. Also included on the wish list would be a commercial kitchen, remodeling of office classrooms into fitness and aerobic studios, city offices and meeting rooms; remodeling the "children's sanctuary" into large banquet/conference rooms; and an enlarged parking lot..
--This would be financed with the sale of the existing Civic Center for $2.2 million less debt of $385,000 and elimination of roof repairs at $250,000, for a net sale of $2,065 million. Asking price for the church is $3.9 million leaving a net purchase price of $1,835,000, plus estimated costs of additions and remodeling of $3,749 million or a total of $5,584 million to finance.
--Financing would be through a 30 year 5% interest rate loan, of annual payments of $359,713.
--Figures assume that rental fee income from the facility will cover utilities, housekeeping and minor repairs.
--The existing Community Center could be used to house the Grove Police Department, GMSA, and Driver's License area, one committee member suggested.

The "no frills" pool would include colorful shade structures and a shaded pavilion for birthday parties, etc; shared locker facilities with the new Community Center; and a snack bar as part of the Community Center. Use of the new pool would be water aerobics, weight management classes, post-surgery rehab, arthritis programs, expectant mothers, and stress reduction. Teens would use the facility for water volleyball, swimming lessons, life-guarding classes, a safe and fun gathering place, and jobs would be provided. Children could use the facility for swim lessons, birthday parties and water baby classes. Scuba lessons could be taught and the Fire Department could use the pool for training.

The new community center could be used for basketball games, wedding receptions, dog and boat shows, home and garden shows, concerts, high school graduations, group/club meetings, private parties and fundraising events, the committee report said.

All GIDA board members were present; all but two Blue Ribbon Committee members were present; but since only two councilmen attended, Larry Parham and Terry Ryan, a quorum was not achieved and thus no council meeting was held.

Members of the Blue Ribbon Committee are Connie Brewer, Bettie Kardos-Bishop, Pete Churchwell, Jeff Lungren, Tim Langley, Pam Sitton and Bill Skea. Brewer told the group that "our work is finished," we now leave it in the hands of GIDA and Council. We are willing to make further presentations to the citizens of Grove and at a formal council meeting, if they will attend," she said.

Only one GIDA board member, Bob Hinkle, objected to the suggested location, but he was told that there would be no affordable way to build on new ground and pay for all the infrastructure and new construction. Hinkle favors a location near Baycrest and Leisure Lane.

Busy Week at City Hall Planned

Next week will be a busy time at city hall with several meetings scheduled. On Monday, the Blue Ribbon Committee will meet at 1 p.m. followed by the Grove Municipal Airport Trust Authority Board at 1:30 p.m. and the Health Care Trust Authority at 4:30 p.m.

On Tuesday GMSA will meet at 4:30 p.m. followed by Grove City Council at 6 p.m.

A key agenda item for both GMSA and Council is "an amendment to Ordinance 526 establishing utility rate increase effective June 1, 2007." GMSA is currently in the red and subsidies from the city are anticipated, especially if the planned rate increase is denied.