State funding for Gloucester school project in limbo

Apr. 27—The city of Gloucester has chosen to go forward with the design and construction of a new elementary school even after the Massachusetts School Building Authority has notified it that the authority will not cover any costs while the project is the subject of an active lawsuit.

The MSBA had agreed to reimburse a maximum of $26.9 million of the project's cost, which was set at $66.7 million. With this state aid, the city and residents would be left to pay the remaining $39.8 million.

The city has already approved a loan order to cover the project's full costs to support the design, site work, and construction and outfitting of the new combined school.

The decision to temporarily halt funding is a part of the state government office's policy, MSBA Executive Director John K. McCarthy wrote to Mayor Sefatia Romeo Theken on April 15. A group of Gloucester residents are suing the MSBA, the state's Office of Energy and Environmental Affairs and the city over the construction of a new elementary school on the site of Mattos Field at 11 Webster St.

MSBA Director of Administration and Operations Matt Donovan said Monday that there is little the agency can say right now as it is a defendant in the lawsuit.

He did note, however, that similar situations have happened in Waltham and Worcester.

Once the Gloucester school district is able to provide the MSBA with a statement confirming that the project is not the subject of any pending litigation, the MSBA will sign a project funding agreement with the city.

But until then, "the MSBA will not provide reimbursement for any project costs incurred during the feasibility study and schematic design phases of the project without an executed project funding agreement between the city and the MSBA," McCarthy wrote.

He noted that the MSBA will monitor the project on a "limited basis" through:

Monthly reports filed by the city in the MSBA's system, including any changes to the design and construction schedule due to pending litigation.

Review of comments on the city's design development submittal by the MSBA and its commissioning consultant.

A construction kick-off meeting and monthly site visit calls.

The MSBA's commissioning consultant will review and provide comments on the project design submittals.

Full steam ahead

Despite the state reimbursement being on hold, the city plans to proceed as scheduled with the project combining the student bodies and staffs of Veterans Memorial and East Gloucester elementary schools in a new building and its design.

School Committee Chairman Jonathan Pope said that the city is conducting on site work, demolition of the current Veterans Memorial Elementary School at 11 Webster St., and permitting.

"There is a bunch of permitting things we are in the midst of," Pope said Monday, explaining that the school district is seeking relief on the height restriction of the proposed building.

Pope would not comment on anything relating to the lawsuit, but did note that "it is our belief that we are not going to lose the lawsuit."

All further questions — including where the money for the school project would come from if the city were to lose the lawsuit — were referred to city General Counsel Chip Payson, who did not respond to the Times' request for comment.

To remain eligible for an MSBA grant, McCarthy's letter said the city must proceed with the design and construction of the school facility as approved by the MSBA's Board of Directors, be within the limits of the total project budget, and not seek reimbursement from the MSBA for any costs beyond those incurred for the feasibility study and schematic design phases of the project unless and until the city enters into a project funding agreement with the MSBA.

McCarthy noted that the MSBA will not fund any costs that relate to the "re-design, re-sequencing, or revision of project plans, specifications, and design submittals."

The MSBA will also not participate in any costs related to or resulting from the pending litigation.

"The city is proceeding at its own risk by incurring project costs without a project funding agreement," McCarthy wrote.

The School Committee is scheduled to meet in executive session this Wednesday to discuss the ongoing litigation regarding the East Gloucester and Veterans Memorial elementary schools.

Staff writer Taylor Ann Bradford can be reached at 978-675-2705 or tbradford@gloucestertimes.com.