Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, February 5, 1991 TAG: 9102050551
SECTION: VIRGINIA PAGE: B-1 EDITION: EVENING
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
Some City Council members are worried that the rising cost for the school improvements could become a strain on finances.
Council voted Monday to ask for a report on the latest estimates for renovating the seven schools and the plan for financing.
In the meantime, council has delayed action on the School Board's request for approval of a loan application for $2.5 million from the state Literary Fund to finance improvements to the Forest Park Elementary School.
Councilman James Harvey said he was concerned that the cost for renovations could be twice as high as school officials had projected in 1987.
"It's hard for me to understand that we might end up finding that the figure we were given will do only half of the schools," Harvey said.
At his request, council postponed action on the Forest Park loan application until Finance Director Joel Schlanger provides the updated cost estimates.
"We've done only three schools and now we are being asked to borrow $2.5 million to do the fourth school," Harvey said.
Richard Kelley, executive assistant for business affairs for schools, said today the estimates have increased because architects and contractors have found unusual and unexpected conditions in some buildings.
Four years ago, school officials estimated it would cost $8.7 million to renovate the following schools: Crystal Spring, Forest Park, Highland Park, Morningside, Oakland, Virginia Heights and Wasena.
The renovation of Highland Park and Oakland has been completed and Crystal Spring is closed this year for improvements.
The financing plan called for $5.2 million in bond money with the remainder to come from state literary loans.
Kelley said the capital improvements plan for the system, submitted to city officials last year, indicated that the renovations would cost more than originally estimated.
He said the renovation of Highland Park alone cost $3.1 million - $1.2 million higher than estimated - because of unexpected conditions in the buildling, asbestos removal and other factors.
"When you are constructing new buildings, it is easy to estimate costs because you know what you are dealing with," Kelley said. "But when you go into an older building and start tearing out things, you sometimes find conditions you didn't know about."
The cost of improvements to Highland Park, Oakland and Crystal Spring, the schools where renovations have either been completed or have started, will be about $7.3 million, Kelley said.
The cost for the remaining four schools - Forest Park, Morningside, Virginia Heights and Wasena - is estimated at $7.8 million.
Kelley said the School Board intends to seek loans from the state to pay the higher costs for the renovations. The board had planned to borrow only $3.5 million,but it now expects to borrow about $9.5 million.
Financing the improvements with literary loans is cheaper for city taxpayers than a bond issue because the interest rates on the loans are lower than those on bonds.
by CNB