Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 6, 1991 TAG: 9102060472
SECTION: VIRGINIA PAGE: B1 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
Some City Council members are worried that the rising cost could become a strain on finances.
Council voted Monday to ask for a report on the latest renovation estimates and the financing plan.
In the meantime, council delayed action on a School Board request for a loan application for $2.5 million from the state Literary Fund to finance improvements to Forest Park Elementary School.
"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," Councilman James Harvey said.
At his request, council postponed action on the application until Finance Director Joel Schlanger provides 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 Tuesday that 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 Crystal Spring, Forest Park, Highland Park, Morningside, Oakland, Virginia Heights and Wasena schools.
Highland Park and Oakland have 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 school capital improvements plan submitted to city officials last year had indicated that the renovations would cost more than originally estimated.
He said Highland Park alone cost $3.1 million - $1.2 million above estimate - because of unexpected conditions, asbestos removal and other factors.
Improvements to Highland Park, Oakland and Crystal Spring will cost about $7.3 million, Kelley said.
The cost for 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. The board had planned to borrow $3.5 million but now expects to borrow about $9.5 million.
Financing the improvements with literary loans is cheaper for taxpayers than a bond issue because the interest rates on the loans are lower than those on bonds.
by CNB