Sticker shock: Appleton officials will pursue outside funding to help cover high cost of library project

APPLETON - The latest cost estimate for the renovation and expansion of the Appleton Public Library totals $39 million — nearly 50% over budget — due in part to pandemic-induced inflation affecting labor and materials across the country.

City officials, though, remain committed to capping the local tax burden at $26.4 million in borrowing. Appleton also has set aside $2 million in federal aid from the American Rescue Plan Act for broadband access at the library.

"If the total cost of the project exceeds this allocation, the balance will need to come from other sources such as fundraising and/or grants," project manager Dean Gazza said Monday in a memorandum to the city's Finance Committee.

Appleton has applied for a grant from the Wisconsin Neighborhood Investment Fund Program and could receive as much as $11 million for a shovel-ready library project that would support underserved communities disproportionately affected by the coronavirus pandemic.

“While timing for this project has resulted in additional inflationary challenges, timing is also ideal to pursue external funding that is usually never available to library capital projects,” Library Director Colleen Rortvedt said in a release from the mayor's office.

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The $39 million estimate was developed jointly by architect Skidmore, Owings & Merrill of Chicago and construction manager The Boldt Co. of Appleton.

Gazza said the estimate accounts for a 27% increase in inflation since the project budget was set. It also includes sustainability features that library stakeholders said should be a priority: solar panels, geothermal systems, a green roof and the landscaping of a roof terrace.

"Many of these items can be modified or eliminated without changing the core vision and goals of the project, which is providing quality library services," Gazza said.

The $39 million estimate left Walter Blank, a member of Appleton Concerned Taxpayers, with sticker shock.

"This seems to be again a pipe dream," Blank told the Finance Committee. "Can we do this?"

Blank encouraged the committee to look out for taxpayers. "Our general obligation debt and our addiction to large capital projects sometimes gets us in trouble," he said.

Alderperson Vered Meltzer said the estimate was "a surprising and unexpected situation" but was confident Appleton would find a way to proceed with the project.

"I believe in our community," Meltzer said, "and I believe that we'll be able to work together and figure out a solution."

The library budget was set at $26.4 million and is being funded over three years: $2.9 million this year, $10 million next year and $13.5 million in 2023. Earlier this month the Common Council added the $2 million in ARPA money. Mayor Jake Woodford said at the time the ARPA allocation could lower the local tax burden if the project comes within budget, or it could cover cost overruns if the project exceeds budget. The latter now seems more likely.

Woodford said it's unusual to disclose cost estimates this early in a project, but he wanted to ensure the community has the information it needs "at every step of the process."

"There is still a lot of work to be done to secure outside funding and, if we have to, to reduce the cost of designs,” he said.

Friends of Appleton Public Library is planning a fundraising campaign to support the project.

“The current concept will enhance the library’s service to the citizens, make an awesome statement about the community and create a catalyst for revitalization of the surrounding neighborhood," said Don Hietpas, president of the nonprofit organization. "We are looking forward to working with the city to ensure the success of this project.”

Gazza said the library design process is on schedule. Construction is expected to start next year and continue into 2023.

According to plan, the library will be thoroughly renovated and expanded from 86,000 square feet to 105,000 or 110,000 square feet. An addition on the south side will create garden pavilions designed to bring nature in and push programming out.

The new library will have some on-site parking — the number of stalls hasn't been determined yet — but it also will rely on the city's 1,200-stall Yellow parking ramp that's located nearby.

Contact Duke Behnke at 920-993-7176 or dbehnke@gannett.com. Follow him on Twitter at @DukeBehnke.

This article originally appeared on Appleton Post-Crescent: Appleton seeks outside funding to cover high cost of library project