Brockton public safety building $34.5 million over budget. Where will money come from?
BROCKTON — The new Brockton public safety building may cost $34.5 million more than planned.
Consultants broke the news to the City Council on Monday night, Feb. 5. Kevin and Joe Sullivan of CHA Consulting, which is managing the project, blamed unexpectedly expensive site prep and skyrocketing per-square-foot construction costs. Mayor Robert F. Sullivan took his lumps as city councilors lined up to support extra money for the project, which was originally expected to cost $98 million.
"I have to stand here today and say, 'I was wrong,'' the mayor said. "I thought the $98 million was going to carry it. But it's not going to carry it."
Why did cost go up by $34.5 million?
Site work was expected to cost $4 million. But once crews started digging, they found asbestos, lead and ledge across the entire site. "Ledge" in this case means solid rock. And a lot more money. The consultants said their new estimate to prep the site and abate hazardous materials is $18.5 million. Modern construction methods call for ledge to be blasted, but when Brockton High was built in the 1880s, the ledge was "pinned" instead of removed, Mayor Sullivan explained at Monday's city council finance committee meeting.
The other budget-buster is a rapid, nationwide rise in per-square-foot construction costs, said Joe Sullivan. He and Kevin are not related to each other or the mayor. Those costs stood at $375 per square foot when the city secured financing. Joe Sullivan said per-square-foot costs now top $800, but he expects them to level off. That could mean up to $20 M in cost overruns.
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Are there ways to save money?
CHA Consultants said they are still working on a "final guaranteed price" but wanted to alert stakeholders. Discussions are underway on ways to save money. Joe Sullivan pitched cutting 20,000 square feet from the four-story, 149,275-square foot building.
Other options include using less expensive finishes or trimming parking spaces.
Ward 7 City Councilor Shirley Asack floated the idea of cutting back on green space. The current plan calls for a "peace garden" that Joe Sullivan said would cost about $500,000. Mayor Sullivan said Suffolk Construction may provide money for that installation.
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Contamination more widespread than expected
The sprawling site, home of the old Brockton High School, covers the entire long block along Warren Avenue between Highland and West Elm streets. It will become the new home of Brockton Police, Brockton Fire, the city's emergency management agency and the IT department.
The old Brockton High had two buildings, one of which had been demolished and buried on site before the current project began. Project consultants said they knew about the buried building, but that the contamination from it had spread farther than expected.
Should city have anticipated overruns?
Several city councilors said builders should have expected trouble.
"To me, some of this should have been anticipated," said Ward 1 City Councilor Tom Minichiello. "Brockton is quite a rocky town."
Joe Sullivan said crews didn't discover the extent of the contamination until they were able to do more testing after the school building that was still standing was unoccupied. He said the site costs might have been lower had they mitigated the asbestos and lead from that building before razing it.
By law, all the contaminated dirt and rubble had to be dug out and hauled off. In this case, workers trucked the debris to Ohio. They had planned to excavate 6 to 8 feet down, Joe Sullivan said. Instead, in some places they had to go as deep as 25 feet.
City leaders have long celebrated their good timing of locking in low interest rates for the original $98 million they borrowed. Municipalities often borrow as they go for big projects. Brockton leaders decided to borrow what they thought was the full amount at interest rates of 2 to 2.5%.
"We made a strategic decision that I still think is a good one," said Troy Clarkson, the city's chief financial officer.
Mayor Sullivan did not ask the City Council for a specific dollar amount, but he will likely need to do so once project stakeholders have decided how or whether to make changes that might bring down the additional price. He also said that if federal COVID dollars are left over after current projects, he might try to use some federal funds.
Overrun hits as city grapples with $20M schools deficit
News of the cost overrun comes as the city continues grappling with an estimated $20 million deficit from the Brockton Public Schools for fiscal 2023. The schools also carried a deficit of up to $10M in fiscal 2022. Because Massachusetts demands cities keep their budgets balanced, clearing those deficits will put pressure on the city's future finances.
City councilors, while not delighted to hear about the latest budget overage, signalled they'd approve further spending if necessary for a project seen as the heart of downtown's long-hoped-for turnaround. The idea is that a brand new, four-story presence for police and fire will spark confidence, be good for business and help attract development nearby.
"If we have to spend some extra dollars and do it right, we have to do it," said City Council President Moises Rodrigues.
Site work estimate rises by $14.5 million
Planners had set aside $4 million to prepare the site for construction. Below-ground discoveries have pushed that estimate to $18.5 million, including:
$7.5 million for earthwork, foundation prep, utilities, grading and site improvements
$6 million for asbestos removal
$2 million to deal with ledge and back-fill
$3 million for asbestos removal and demolition of the Keith Center.
Source: CHA Consultants, as of Feb. 6, 2024.
Send your news tips to reporter Chris Helms by email at CHelms@enterprisenews.com or connect on X at @HelmsNews.
This article originally appeared on The Enterprise: Brockton public safety building will cost millions more than expected
