Construction-cost crunch gives Warwick officials pause in plans to replace 2 high schools

WARWICK − The recent explosion in construction costs and increasing interest rates have put into question the future of the planned Tidewater Landing soccer stadium in Pawtucket and the "Superman" building conversion in Providence, and they spelled doom for the Fane Tower envisioned in the capital city.

Now add to that list Warwick's $350-million bond to build two new high schools.

Warwick voters approved the bond measure in November with the promise of a 52% match by the state Department of Education. With construction costs rising, city leaders say they want to make sure $350 million will be enough.

Projects on pause?From soccer stadium to Superman Building, 'scary' times for big construction projects

"The major concern is, given the state of all the other construction projects coming in way over budget, [whether] it can be built for the projected costs," said Mayor Frank Picozzi.

Picozzi said he plans to work with the City Council to get an independent study from a consultant on the feasibility of replacing the Pilgrim High School and Toll Gate High School for $350 million, a move supported by Council President Stephen McAllister.

"We don't want to get half way through and find we've run out of money," Picozzi said. "We want to take a more measured approach, have an outside consultant look it over."

Warwick news:Warwick mayor, former council president tangle over $44,000 health benefit

Picozzi said rising construction costs have been top of mind, especially with recent headlines of big projects holding off on issuing bonds because of the market.

"Everyone has done the right things here, but this is still what I call the COVID hangover," he said. "When they came up with the $350-million figure last spring or summer, it should have been realistic, but things have changed dramatically."

McAllister said the study will use April 2023 costs to check the feasibility of the plan, and said the City Council wants to move forward as quickly as possible but also wants to ensure that they do not get halfway through the project and run out of money.

What's next?Pawtucket soccer stadium project financing hits stumbling block.

"Once we move forward, we have to do it, and there's no more money – there's no authorization above the $350 million," McAllister said.

Cost overruns are hitting some Massachusetts cities. In Quincy, officials had to authorize $23 million extra for a police station under construction after it was originally budgeted for $150 million.

RI's 1991 bank crisis:Before Silicon Valley, Rhode Island had its own bank crisis. Here's how it changed the state

Why do the high schools need to be replaced?

The plan for the bond was to replace both Pilgrim High School and Toll Gate High School, although Pilgrim High School is in much greater need of replacement than Toll Gate High School.

The schools recently received $90 million worth of improvements, including to the heating and cooling systems, but they still need more work, Picozzi said.

Warwick to ask legislature to extend state construction deadlines

To get that 52% funding match, Warwick needs to have its plans in for two two high schools, and the work must be completed within five years.

Tidewater Landing stadium:RI FC soccer team to play in 2024, but where? $124-million stadium's financing on hold

Picozzi said he has asked House Speaker K. Joseph Shekarchi  to push out the five-year deadline by a year − six months for the first round of design deadlines and six months for the total time to completion, but first, the City Council needs to pass a resolution asking for the change.

McAllister said he is putting the resolution on the April 3 meeting agenda.

Thanks to our subscribers, who help make this coverage possible. If you are not a subscriber, please consider supporting quality local journalism with a Providence Journal subscription. Here's our latest offer.

Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Warwick to study whether it can still replace 2 high schools for $350M